Intangibles

9 Months Ended

Sep. 30, 2022

Intangible Assets Net Excluding Goodwill [Abstract]

Note 4 - Intangibles

The amortization of acquired above-market and/or below-market leases is recorded as an adjustment to Rental revenue on the consolidated statements of operations. For the nine months ended September 30, 2022 and September 30, 2021, the net amount of such amortization was included as an increase to rental income of $1,049,573 and $585,964, respectively. For the three months ended September 30, 2022 and September 30, 2021, the net amount of such amortization was included as an increase to rental income of $439,907 and $197,927, respectively.

The amortization of in-place leases is recorded as an adjustment to Depreciation and amortization expense on the consolidated statements of operations. For the nine months ended September 30, 2022 and September 30, 2021, the net amount of such amortization was $8,491,890 and $4,133,108, respectively. For the three months ended September 30, 2022 and September 30, 2021, the amount of such amortization was $2,944,013 and $2,027,021, respectively.

The amortization of tax abatement on property improvements is recorded as an adjustment to Depreciation and amortization expense on the consolidated statements of operations. For the nine months ended September 30, 2022 and September 30, 2021, the net amount of such amortization was $784,286 and $0, respectively. For the three months ended September 30, 2022 and September 30, 2021, the net amount of such amortization was $261,429 and $0, respectively.

As of September 30, 2022 and December 31, 2021, the gross carrying amount and accumulated amortization of the Company’s intangible assets consisted of the following:


	September 30, 2022			December 31, 2021
Intangible assets:
In-place lease intangibles	$	92,190,479		$	55,734,750
Above-market lease intangibles		2,112,735			2,112,734
Tax abatement on property improvements intangibles		14,640,000			14,640,000
Total intangible assets		108,943,214			72,487,484
Accumulated amortization:
In-place lease amortization		(19,069,470	)		(10,577,580	)
Above-market lease amortization		(386,151	)		(238,867	)
Tax abatement on property improvements amortization		(871,429	)		(87,143	)
Total accumulated amortization		(20,327,050	)		(10,903,590	)
Intangible assets, net	$	88,616,164		$	61,583,894

The estimated future amortization on the Company’s intangible assets for each of the next five years and thereafter as of September 30, 2022 is as follows:


Year	In-place Lease Intangibles		Above-market Lease Intangibles		Tax Abatement on Property Improvements		Total
2022 (remaining)		3,174,471		49,095		261,429		3,484,995
2023		9,143,737		196,378		1,045,714		10,385,829
2024		7,592,653		196,378		1,045,714		8,834,745
2025		7,274,653		196,378		1,045,714		8,516,745
2026		6,526,776		196,378		1,045,714		7,768,868
Thereafter		39,408,719		891,976		9,324,286		49,624,982
	$	73,121,009	$	1,726,583	$	13,768,571	$	88,616,164

As of September 30, 2022 and December 31, 2021, the gross carrying amount and accumulated amortization of the Company’s Intangible liabilities consisted of the following:


	September 30, 2022			December 31, 2021
Intangible liabilities:
Below-market lease intangibles	$	25,186,312		$	11,487,001
Accumulated amortization:
Below-market lease amortization		(3,418,701	)		(2,201,745	)
Intangible liabilities, net	$	21,767,611		$	9,285,256

The estimated future amortization on the Company’s intangible liabilities for each of the next five years and thereafter as of September 30, 2022 is as follows:


Year	Below-market Lease Intangibles
2022 (remaining)		495,702
2023		1,982,809
2024		1,982,809
2025		1,982,809
2026		1,891,681
Thereafter		13,431,801
	$	21,767,611