Other Assets and Intangibles, net

9 Months Ended

Sep. 30, 2024

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


	September 30, 2024
	Asset		Accumulated Amortization			Net
Intangible assets, net:
In-place leases	$	117,136	$	(70,500	)	$	46,636
Above-market leases		8,018		(5,408	)		2,610
Lease origination costs		18,824		(8,476	)		10,348
Tenant relationships		24,544		(20,769	)		3,775
Below market ground lease (as lessee)(A)		13,670		(17	)		13,653
Total intangible assets, net(B)		182,192		(105,170	)		77,022
Operating lease ROU assets							16,086
Other assets:
Prepaid expenses(C)							11,007
Other assets							7,965
Deposits							2,757
Total other assets, net						$	114,837
	Liability		Accumulated Amortization			Net
Below-market leases	$	51,508	$	(12,779	)	$	38,729

(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 $4.4 million and $5.5 million for the three months ended September 30, 2024 and 2023, respectively, and $13.6 million and $17.7 million for the nine months ended September 30, 2024 and 2023, respectively.

(C)

Includes $5.0 million of prepaid loan costs relating to a revolving line of credit and delayed-draw term loan facility for Curbline. The Company is obligated to pay such costs under the Separation and Distribution Agreement (Note 10).


	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(A)							13,485
Prepaid expenses							5,104
Swap receivables(B)							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

(A)

Fees related to a commitment obtained in October 2023 for a $1.1 billion mortgage facility to be secured by an originally identified group of 40 properties (the “Mortgage Commitment”). The fees paid to date related to the Mortgage Commitment were recorded as a deferred fee as the facility had not closed and therefore no amounts had been drawn. The Company terminated the Mortgage Commitment in August 2024 when it closed a separate $530.0 million mortgage financing on different terms (Note 5). At termination, when it became probable that the Mortgage Commitment would not be drawn upon, the remaining fees

were expensed. For the three and nine months ended September 30, 2024, the Company wrote-off $10.9 million and $21.2 million, respectively, of fees relating to the Mortgage Commitment to Debt extinguishment costs on the Company’s Consolidated Statements of Operations.

(B)

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