Intangible Assets and Liabilities

6 Months Ended

Jun. 30, 2020

Intangible Assets and Liabilities [Abstract]

Intangible Assets and Liabilities

Note 5. Intangible Assets and Liabilities 

The following table summarizes our intangible assets and liabilities as a result of the application of acquisition accounting: 

As of	Gross Asset (Liability)			Accumulated (Amortization)/ Accretion			Net Carrying Amount
June 30, 2020:
In-place lease intangibles	$	16,957,903		$	(8,699,508	)	$	8,258,395
Above-market leases		47,768			(25,178	)		22,590
Below-market leases		(10,327,315	)		2,687,426			(7,639,889)
December 31, 2019:
In-place lease intangibles	$	13,788,024		$	(6,472,157	)	$	7,315,867
Above-market leases		40,620			(18,496	)		22,124
Below-market leases		(8,672,301	)		2,071,182			(6,601,119	)

Amortization of in-place lease intangibles was $1.1 million and $2.2 million for the three and six months ended June 30, 2020, respectively and $0.4 million and $0.6 million for the three and six months ended June 30, 2019, respectively. This amortization is included in “Depreciation and amortization” on the Company’s Consolidated and Combined Consolidated Statements of Operations. 

Amortization of acquired above market leases was $3,576 and $6,682 for the three and six months ended June 30, 2020, respectively, and $2,616 and $4,986 for the three and six months ended June 30, 2019, respectively and is included in “Rental income” on the Company’s Consolidated and Combined Consolidated Statements of Operations. Amortization of acquired below market leases was $0.3 million and $0.6 million for the three and six months ended June 30, 2020, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2019, respectively, and is included in “Rental income” on the Company’s Consolidated and Combined Consolidated Statements of Operations. 

Future amortization/accretion of these intangibles is below:

Year Ending December 31,	In-place lease intangibles		Above-market leases		Below-market leases
2020 – Remaining	$	1,945,917	$	5,889	$	(529,407	)
2021		2,968,481		6,717		(1,004,488	)
2022		1,549,204		5,774		(893,108	)
2023		917,586		3,139		(811,708	)
2024		452,078		1,071		(721,221	)
Thereafter		425,129		-		(3,679,957	)
Total	$	8,258,395	$	22,590	$	(7,639,889	)