INTANGIBLE ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2024

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 December 31, 2024 and 2023 (in thousands):

	As of
	December 31, 2024		December 31, 2023
Intangible Lease Assets:
Value of In-Place Leases	$	100,117	$	90,246
Value of Above Market In-Place Leases		26,354		31,533
Value of Intangible Leasing Costs		25,706		24,974
Sub-total Intangible Lease Assets		152,177		146,753
Accumulated Amortization		(72,979)		(49,644)
Sub-total Intangible Lease Assets—Net		79,198		97,109
Intangible Lease Liabilities:
Value of Below Market In-Place Leases		(24,089)		(14,848)
Sub-total Intangible Lease Liabilities		(24,089)		(14,848)
Accumulated Amortization		8,965		4,407
Sub-total Intangible Lease Liabilities—Net		(15,124)		(10,441)
Total Intangible Assets and Liabilities—Net	$	64,074	$	86,668

The following table reflects the net amortization of intangible assets and liabilities during the years ended December 31, 2024, 2023, and 2022 (in thousands):

	Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022
Amortization Expense	$	31,561	$	18,444	$	12,300
Accretion to Income Properties Revenue		(254)		2,303		2,161
Net Amortization of Intangible Assets and Liabilities	$	31,307	$	20,747	$	14,461

Amortization expense has generally increased commensurate with overall growth of the Company’s income property portfolio. Additionally, during the year ended December 31, 2024, the Company recorded an out-of-period adjustment totaling $10.1 million consisting of (i) $4.5 million associated with the acceleration of amortization for lease intangibles related to certain lease terminations that occurred prior to January 1, 2024 and (ii) $5.6 million associated with calculating amortization based on the remaining useful life of each lease on an individual basis as opposed to a property-level weighted average remaining useful lease life. Based on our quantitative and qualitative analyses, we do not consider the impact of the out-of-period adjustment to be material to our financial position or results of operations for the year ended December 31, 2024, or for any prior periods.

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
2025	$	18,631	$	(570)	$	18,061
2026		15,095		(824)		14,271
2027		10,957		(597)		10,360
2028		7,587		(387)		7,200
2029		4,848		(433)		4,415
2030 and Thereafter		10,166		(399)		9,767
Total	$	67,284	$	(3,210)	$	64,074

As of December 31, 2024, the weighted average amortization period of total intangible assets and liabilities was 7.5 years and 6.4 years, respectively.