Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Liabilities

Note 5. Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following as of September 30, 2024:

	September 30, 2024
								Weighted average
	Gross carrying		Accumulated			Net carrying		amortization
	amount		amortization			amount		period (years)
In-place leases	$	98,730,000	$	(40,676,000	)	$	58,054,000		7.0
Above-market leases		3,489,000		(1,490,000	)		1,999,000		5.7
Total intangible lease assets, net	$	102,219,000	$	(42,166,000	)	$	60,053,000
Below-market leases	$	32,741,000	$	(9,882,000	)	$	22,859,000		10.7

The Company records net amortization of above-market and below-market lease intangibles to rental revenue and records amortization of in-place lease assets to depreciation and amortization expense. Amortization of intangible assets and liabilities for the three and nine months ended September 30, 2024 and 2023 were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net adjustment to rental revenue	$	625,000	$	604,000	$	1,950,000	$	1,782,000
Amortization of in-place leases	$	2,996,000	$	3,349,000	$	9,212,000	$	10,177,000

The estimated future amortization of lease assets to amortization expense and the amortization of above-market and below-market lease intangibles to rental revenue as of September 30, 2024 are as follows:

	Amortization		Rental revenue
	In-place		Above-market			Below-market
	lease assets		leases			leases		Total
Remainder of 2024	$	2,934,000	$	(112,000	)	$	726,000	$	614,000
2025		11,467,000		(439,000	)		2,916,000		2,477,000
2026		10,338,000		(400,000	)		2,854,000		2,454,000
2027		8,519,000		(302,000	)		2,417,000		2,115,000
2028		6,372,000		(255,000	)		2,182,000		1,927,000
Thereafter		18,424,000		(491,000	)		11,764,000		11,273,000
Total	$	58,054,000	$	(1,999,000	)	$	22,859,000	$	20,860,000