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Note 4 - Intangibles
 6 Months Ended
Jun. 30, 2023
Schedule Of Intangible Assets And Liabilities [Abstract]  
Intangibles

Note 4 – Intangibles

The following is a summary of the carrying amount of the Company’s intangible assets and liabilities as of June 30, 2023 and December 31, 2022.

(in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Assets:

 

 

 

 

 

 

Above-market leases

 

$

4,266

 

 

$

5,150

 

Above-market leases accumulated amortization

 

 

(2,210

)

 

 

(2,199

)

In-place leases

 

 

29,713

 

 

 

36,078

 

In-place leases accumulated amortization

 

 

(18,478

)

 

 

(18,251

)

Total real estate intangible assets, net

 

$

13,291

 

 

$

20,778

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Below-market leases

 

$

3,226

 

 

$

4,992

 

Below-market leases accumulated amortization

 

 

(2,377

)

 

 

(3,439

)

Total real estate intangible liabilities, net

 

$

849

 

 

$

1,553

 

For the three months ended June 30, 2023 and 2022, the Company recognized amortization related to in-place leases of approximately $2.1 million and $1.9 million, respectively, and net amortization related to above-market leases and below-market leases for the three months ended June 30, 2023 and 2022 of approximately $0.1 million and approximately $(0.1) million, respectively, in its condensed consolidated statements of operations.

For the six months ended June 30, 2023 and 2022, the Company recognized amortization related to in-place leases of approximately $4.4 million and $3.8 million, respectively, and net amortization related to above-market leases and below-market leases for the six months ended June 30, 2023 and 2022 of approximately $0.1 million and $(0.3) million, respectively, in its condensed consolidated statements of operations.

The following table represents expected amortization of existing real estate intangible assets and liabilities as of June 30, 2023:

(in thousands)

Amortization of
in-place leases

 

 

Amortization of
above-market leases

 

 

Amortization of
below-market leases

 

 

Total amortization, net

 

Remainder of 2023

$

1,964

 

 

$

355

 

 

$

(174

)

 

$

2,145

 

2024

 

2,973

 

 

 

575

 

 

 

(304

)

 

 

3,244

 

2025

 

2,089

 

 

 

449

 

 

 

(174

)

 

 

2,364

 

2026

 

1,489

 

 

 

253

 

 

 

(98

)

 

 

1,644

 

2027

 

962

 

 

 

167

 

 

 

(47

)

 

 

1,082

 

2028

 

520

 

 

 

112

 

 

 

(26

)

 

 

606

 

Thereafter

 

1,238

 

 

 

145

 

 

 

(26

)

 

 

1,357

 

Total

$

11,235

 

 

$

2,056

 

 

$

(849

)

 

$

12,442

 

The Company amortizes the value of in-place leases to amortization expense, the value of above-market leases as a reduction of rental income and the value of below-market leases as an increase to rental income over the initial term of the respective leases.