Other Assets and Intangibles, net (Tables)

6 Months Ended

Jun. 30, 2024

Components of Other assets, liabilities and intangibles

Other assets, liabilities and intangibles consist of the following (in thousands):


	June 30, 2024
	Asset		Accumulated Amortization			Net
Intangible assets, net:
In-place leases	$	156,406	$	(110,895	)	$	45,511
Above-market leases		17,697		(14,672	)		3,025
Lease origination costs		20,561		(12,154	)		8,407
Tenant relationships		52,941		(47,481	)		5,460
Below market ground lease (as lessee)(A)		13,670		—			13,670
Total intangible assets, net(B)		261,275		(185,202	)		76,073
Operating lease ROU assets							16,350
Other assets:
Loan commitment fees(C)							10,864
Prepaid expenses							7,965
Swap receivables(D)							8,637
Other assets							3,323
Deposits							2,690
Deferred charges, net							4,231
Total other assets, net						$	130,133
	Liability		Accumulated Amortization			Net
Below-market leases	$	60,369	$	(22,392	)	$	37,977

(A)

In connection with the sale of two assets in June 2024 to unrelated third parties, intercompany ground leases related to certain portions of land that had initial terms of 90-years and 99-years, respectively, with a fixed, prepaid rent of $1 were assumed by the buyers. Such intercompany ground leases were previously eliminated in consolidation and treated as a sale leaseback when the shopping centers were sold. The leased back land pertains to land underlying convenience assets that were retained by the company. Upon sale of the shopping centers, the Company recognized below-market ground lease assets of approximately $13.7 million.

(B)

The Company recorded amortization expense related to its intangibles, excluding above- and below-market leases, of $4.5 million and $5.9 million for the three months ended June 30, 2024 and 2023, respectively, and $9.2 million and $12.1 million for the six months ended June 30, 2024 and 2023, respectively.

(C)

Fees related to a commitment obtained in October 2023 for a lender to provide a $1.1 billion mortgage facility to be secured by an originally identified group of 40 properties (the “Mortgage Facility”). The fees paid to date related to the Mortgage Facility are recorded as a deferred fee as the facility has not closed and therefore no amounts have been drawn. The Company may proceed to close and draw all or a portion of the Mortgage Facility on any date prior to October 25, 2024, subject to the satisfaction of various closing conditions. Once amounts are drawn on the Mortgage Facility, the fees, including a funding fee to be paid at closing, will be classified as a contra asset to the borrowings and amortized over the life of the Mortgage Facility. If it becomes probable that the Mortgage Facility, or a portion of lender’s commitment with respect to the Mortgage Facility, will not be drawn upon, the fees paid to date, or a portion of the fees paid to date, will be expensed. For the three and six months ended June 30, 2024, the Company wrote-off $8.6 million and $9.3 million, respectively, of fees to Other Income (Expense), net, on the Company’s Consolidated Statements of Operations because the maximum amount available to be borrowed under the Mortgage Facility decreased to $554.8 million due to the release of 13 properties that were originally identified to serve as collateral for the Mortgage Facility.

(D)

Includes cash flow hedge and derivative on unsecured notes (Note 6).


	December 31, 2023
	Asset		Accumulated Amortization			Net
Intangible assets, net:
In-place leases	$	184,545	$	(134,263	)	$	50,282
Above-market leases		22,220		(18,627	)		3,593
Lease origination costs		22,903		(14,654	)		8,249
Tenant relationships		79,758		(72,892	)		6,866
Total intangible assets, net		309,426		(240,436	)		68,990
Operating lease ROU assets							17,373
Other assets:
Loan commitment fees							13,485
Prepaid expenses							5,104
Swap receivables							11,115
Other assets							2,294
Deposits							2,857
Deferred charges, net							5,325
Total other assets, net						$	126,543
	Liability		Accumulated Amortization			Net
Below-market leases	$	81,487	$	(35,391	)	$	46,096