Acquired In-Place Leases

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

ACQUIRED IN-PLACE LEASES

ACQUIRED LEASES

Acquired lease assets comprise of above market leases where we are the lessor and below market leases where we are the lessee. Acquired lease liabilities comprise of below market leases where we are the lessor and above market leases where we are the lessee. As a lessor, acquired above market leases are included in prepaid expenses and other assets, and acquired below market leases are included in other liabilities and deferred credits. In accordance with our adoption of ASC Topic 842, acquired below market leases and acquired above market leases where we are the lessee are included in right of use assets. The following is a summary of our acquired lease assets and liabilities:

	December 31, 2021				December 31, 2020
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
	(in thousands)
Above market leases, lessor	$	46,951	$	(33,617)	$	43,560	$	(31,661)
Below market leases, lessee	34,604		(5,019)		34,604		(4,190)
Total	$	81,555	$	(38,636)	$	78,164	$	(35,851)
Below market leases, lessor	$	(230,059)	$	78,327	$	(174,582)	$	68,286
Above market leases, lessee	(10,347)		2,654		(9,084)		2,116
Total	$	(240,406)	$	80,981	$	(183,666)	$	70,402

The value allocated to acquired leases where we are the lessor is amortized over the related lease term and reflected as additional rental income for below market leases or a reduction of rental income for above market leases in the consolidated statements of comprehensive income. The related amortization of acquired leases where we are the lessee is reflected as additional rental expense for below market leases or a reduction of rental expenses for above market leases in the consolidated statements of comprehensive income. The following is a summary of acquired lease amortization:

	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Amortization of above market leases, lessor	$	(3,150)	$	(4,060)	$	(3,239)
Amortization of below market leases, lessor	11,897		8,406		9,623
Net increase in rental income	$	8,747	$	4,346	$	6,384
Amortization of below market leases, lessee	$	828	$	828	$	828
Amortization of above market leases, lessee	(538)		(525)		(525)
Net increase in rental expense	$	290	$	303	$	303

The following is a summary of the remaining weighted average amortization period for our acquired lease assets and acquired lease liabilities:

	December 31, 2021
Above market leases, lessor	3.2 years
Below market leases, lessee	37.6 years
Below market leases, lessor	18.1 years
Above market leases, lessee	17.6 years

The amortization for acquired leases during the next five years and thereafter, assuming no early lease terminations, is as follows:

	Acquired Lease Assets		Acquired Lease Liabilities
	(In thousands)
Year ending December 31,
2022	$	3,674	$	13,541
2023	3,446		12,962
2024	3,139		12,450
2025	2,126		8,984
2026	1,931		8,622
Thereafter	28,603		102,866
	$	42,919	$	159,425