Identified Intangible Assets And Liabilities

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Identified Intangible Assets And Liabilities

Note 5.     Identified Intangible Assets and Liabilities

Identified intangible assets and liabilities associated with our property acquisitions are as follows (in thousands):

	December 31,
	2020		2019
Identified Intangible Assets:
Above-market leases (included in Other Assets, net)	$	23,877	$	23,830
Above-market leases - Accumulated Amortization		(12,551)		(12,145)
In place leases (included in Unamortized Lease Costs, net)		235,082		196,207
In place leases - Accumulated Amortization		(102,772)		(92,918)
	$	143,636	$	114,974
Identified Intangible Liabilities:
Below-market leases (included in Other Liabilities, net)	$	92,855	$	95,240
Below-market leases - Accumulated Amortization		(34,647)		(32,326)
Above-market assumed mortgages (included in Debt, net)		7,694		3,446
Above-market assumed mortgages - Accumulated Amortization		(2,408)		(1,987)
	$	63,494	$	64,373

These identified intangible assets and liabilities are amortized over the applicable lease terms or the remaining lives of the assumed mortgages, as applicable.

The net amortization of above-market and below-market leases increased rental revenues by $7.8 million, $4.6 million and $12.8 million in 2020, 2019 and 2018, respectively. The significant year over year change in rental revenues from 2020 to 2019 is primarily due to the write-offs for multiple tenant fallouts of off-market lease intangibles in 2020, and the change from 2019 to 2018 is primarily due to a write-off of a below-market lease intangible from the termination of a tenant’s lease in 2018. The estimated net amortization of these intangible assets and liabilities will increase rental revenues for each of the next five years as follows (in thousands):

2021	$	4,691
2022		4,357
2023		4,172
2024		4,032
2025		3,234

The amortization of the in place lease intangible assets recorded in depreciation and amortization, was $19.4 million, $14.9 million and $29.8 million in 2020, 2019 and 2018, respectively. The significant year over year change in depreciation and amortization from 2020 to 2019 is primarily due to net acquisitions throughout late 2019 and 2020, and the change from 2019 to 2018 is primarily due to the write-off of in-place lease intangibles from the termination of tenant leases in 2018. The estimated amortization of these intangible assets will increase depreciation and amortization for each of the next five years as follows (in thousands):

2021	$	19,580
2022		17,103
2023		15,549
2024		13,491
2025		12,204

The net amortization of above-market assumed mortgages decreased net interest expense by $.4 million, $.3 million and $.7 million in 2020, 2019 and 2018, respectively. The estimated net amortization of these intangible liabilities will decrease net interest expense for each of the next five years as follows (in thousands):

2021	$	789
2022		643
2023		638
2024		638
2025		638

The following table details the identified intangible assets and liabilities and the remaining weighted-average amortization period associated with our asset acquisitions in 2020 and 2019 as follows:

	December 31,
	2020		2019
Identified intangible assets and liabilities subject to amortization (in thousands):
Assets:
In place leases	$	48,562	$	30,253
Above-market leases		1,901		1,323
Liabilities:
Below-market leases		5,205		13,762
Above-market assumed mortgages		4,249		—
Identified intangible assets and liabilities remaining weighted-average amortization period (in years):
Assets:
In place leases		7.8		11.0
Above-market leases		7.1		7.2
Liabilities:
Below-market leases		7.8		13.5
Above-market assumed mortgages		8.3		—