Other Assets, Net

12 Months Ended

Dec. 31, 2020

Other Assets, Net

Other Assets, Net

8.          Other Assets, Net

The following is a summary of other assets, net:

	December 31,
	2020		2019
	(In thousands)
Deferred leasing costs, net	$	117,141	$	126,016
Lease intangible assets, net		15,565		23,644
Other identified intangible assets, net		43,012		48,620
Operating lease right-of-use assets		3,542		19,865
Finance lease right-of-use assets (1)		41,996		—
Prepaid expenses		14,000		12,556
Deferred financing costs on credit facility, net		6,656		3,071
Deposits (2)		28,560		3,210
Other		16,103		16,705
Total other assets, net	$	286,575	$	253,687

(1) Related to an amendment of the ground lease for 1730 M Street executed during the year ended December 31, 2020. The amendment extended the expiration date of the lease from April 2061 to December 2118, and resulted in a change in its classification from an operating to a finance lease.

(2) Includes deposits totaling $25.3 million with the Federal Communications Commission in connection with the acquisition of wireless spectrum licenses.

The following is a summary of the composition of deferred leasing costs, lease intangible assets and other identified intangible assets:

	December 31, 2020						December 31, 2019
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(In thousands)
Deferred leasing costs	$	202,940	$	(85,799)	$	117,141	$	205,830	$	(79,814)	$	126,016
Lease intangible assets:
In-place leases	$	27,363	$	(15,027)	$	12,336	$	33,812	$	(15,231)	$	18,581
Above-market real estate leases		7,515		(4,286)		3,229		8,635		(3,572)		5,063
	$	34,878	$	(19,313)	$	15,565	$	42,447	$	(18,803)	$	23,644
Other identified intangible assets:
Option to enter into ground lease	$	17,090	$	—	$	17,090	$	17,090	$	—	$	17,090
Management and leasing contracts		45,900		(20,388)		25,512		48,900		(17,385)		31,515
Other		410		—		410		166		(151)		15
	$	63,400	$	(20,388)	$	43,012	$	66,156	$	(17,536)	$	48,620

The following is a summary of amortization expense related to lease and other identified intangible assets:

	Year Ended December 31,
	2020		2019		2018
	(In thousands)
In-place lease amortization (1)	$	5,695	$	7,375	$	11,807
Above-market real estate lease amortization (2)		1,582		1,730		2,390
Below-market ground lease amortization (3)		—		—		85
Management and leasing contract amortization (1)		6,002		7,088		7,088
Other amortization		16		(240)		191
Total lease and management and leasing contract amortization expense	$	13,295	$	15,953	$	21,561

(1) Amounts are included in "Depreciation and amortization expense" in our statements of operations.

(2) Amounts are included in "Property rental revenue" in our statements of operations.

(3) Amounts are included in "Property operating expenses" in our statements of operations.

The following is a summary of the estimated amortization related to lease and other identified intangible assets for the next five years and thereafter as of December 31, 2020:

Year ending December 31,	Amount
	(In thousands)
2021	$	9,690
2022		8,662
2023		8,199
2024		7,841
2025		3,571
Thereafter		3,524
Total (1)	$	41,487

(1) Estimated amortization related to the option to enter into ground lease is not included within the amortization table above as the ground lease does not have a definite start date.