INTANGIBLE ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2022

INTANGIBLE ASSETS AND LIABILITIES

INTANGIBLE ASSETS AND LIABILITIES

NOTE 10. INTANGIBLE ASSETS AND LIABILITIES

Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):

	As of
	March 31, 2022		December 31, 2021
Intangible Lease Assets:
Value of In-Place Leases	$	63,206	$	59,293
Value of Above Market In-Place Leases		24,001		23,216
Value of Intangible Leasing Costs		19,626		18,456
Sub-total Intangible Lease Assets		106,833		100,965
Accumulated Amortization		(24,908)		(21,473)
Sub-total Intangible Lease Assets—Net		81,925		79,492
Intangible Lease Liabilities (Included in Accrued and Other Liabilities):
Value of Below Market In-Place Leases		(7,146)		(6,942)
Sub-total Intangible Lease Liabilities		(7,146)		(6,942)
Accumulated Amortization		1,603		1,341
Sub-total Intangible Lease Liabilities—Net		(5,543)		(5,601)
Total Intangible Assets and Liabilities—Net	$	76,382	$	73,891

During the three months ended March 31, 2022, the value of in-place leases increased by $3.9 million, the value of above-market in-place leases increased by $0.8 million, the value of intangible leasing costs increased by $1.2 million, and the value of below-market in-place leases increased by $0.2 million. Such changes reflect the acquisition of one multi-tenant income property, net of two single-tenant income properties sold during the three months ended March 31, 2022. Net accumulated amortization increased by $3.2 million, for a net increase during the three months ended March 31, 2022 of $2.5 million.

The following table reflects the net amortization of intangible assets and liabilities during the three months ended March 31, 2022 and 2021 (in thousands):

	Three Months Ended
	March 31, 2022		March 31, 2021
Amortization Expense	$	2,695	$	1,827
Accretion to Income Properties Revenue		481		(396)
Net Amortization of Intangible Assets and Liabilities	$	3,176	$	1,431

The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands):

Year Ending December 31,	Future Amortization Amount		Future Accretion to Income Property Revenue		Net Future Amortization of Intangible Assets and Liabilities
Remainder of 2022	$	8,419	$	1,492	$	9,911
2023		11,128		2,013		13,141
2024		11,117		2,097		13,214
2025		8,891		2,153		11,044
2026		7,384		1,871		9,255
2027		7,125		1,550		8,675
2028 and Thereafter		8,848		2,294		11,142
Total	$	62,912	$	13,470	$	76,382

As of March 31, 2022, the weighted average amortization period of total intangible assets and liabilities was 7.7 years and 8.5 years, respectively.