Other Assets and Deferred Charges, Net

12 Months Ended

Dec. 31, 2020

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Note 7. Other Assets and Deferred Charges, Net

Other assets and deferred charges, net, at December 31, 2020 and 2019 are composed of the following:

	December 31,
	2020		2019
Lease origination costs (a)	$	22,331,000	$	19,947,000
Right-of-use assets (b)		13,828,000		13,638,000
Prepaid expenses		6,906,000		6,048,000
Investments related to share-based compensation		948,000		823,000
Unsecured revolving credit facility financing costs		623,000		1,021,000
Leasehold improvements, furniture and fixtures		85,000		200,000
Interest rate swaps		—		136,000
Other		534,000		326,000
Total other assets and deferred charges, net	$	45,255,000	$	42,139,000

(a)

Lease origination costs include the unamortized balance of intangible lease assets resulting from purchase accounting allocations of $5.5 million (cost of $19.4 million and accumulated amortization of $13.9 million) and $6.6 million (cost of $19.9 million and accumulated amortization of $13.3 million) as of December 31, 2020 and 2019, respectively.

(b)

In connection with of the new lease accounting standard (see Note 2 – “Issued and Adopted Accounting Pronouncements”), the Company recorded right-of-use assets and liabilities based on its future obligation under its ground lease and executive office lease agreements for which the Company is the lessee.

Deferred charges are amortized over the terms of the related agreements. Amortization expense related to deferred charges (including amortization of deferred financing costs included in non-operating income and expense) amounted to $6.2 million, $5.3 million and $5.2 million for 2020, 2019, and 2018, respectively. The unamortized balances of deferred lease origination costs is net of accumulated amortization of $37.1 million at December 31, 2020. In addition, deferred financing costs relating to the unsecured revolving credit facility is net of accumulated amortization of $2.1 million at December 31, 2020. Deferred lease origination costs and deferred financing costs relating to the unsecured revolving credit facility will be charged to future operations as follows:

	Lease		Unsecured revolving
	origination		credit facility
	costs		financing costs
2021	$	2,436,000	$	623,000
2022		2,094,000		—
2023		1,805,000		—
2024		1,467,000		—
2025		1,196,000		—
Thereafter		13,333,000		—
	$	22,331,000	$	623,000