Real Estate

12 Months Ended

Dec. 31, 2024

Construction in Progress

Construction in progress includes land, preconstruction and development costs of active projects. Preconstruction costs include legal, zoning and permitting costs and other project carrying costs incurred prior to the commencement of construction. Development costs include direct construction costs and indirect costs incurred subsequent to the start of construction such as architectural, engineering, construction management and carrying costs consisting of interest, real estate taxes and insurance.

The following table shows the components of construction in progress.


(In thousands)	December 31, 2024		December 31, 2023
Hampden House (1)	$	217,537	$	142,240
Twinbrook Quarter Phase I - Retail/Residential (2)	9,664		248,913
Twinbrook Quarter - Other (3)	84,662		106,200
Other	14,330		17,200
Total	$	326,193	$	514,553

(1)Includes capitalized interest of $20.8 million and $14.1 million, as of December 31, 2024 and December 31, 2023, respectively. (2)Includes capitalized interest of $0.6 million and $18.8 million, as of December 31, 2024 and December 31, 2023, respectively. (3)Other includes infrastructure and site work necessary to support current and future development phases, and includes capitalized interest of $5.4 million and $6.7 million, as of December 31, 2024 and December 31, 2023, respectively.

On October 1, 2024, including capitalized interest, $299.5 million relating to Twinbrook Quarter Phase I - Retail/Residential and $46.0 million relating to Twinbrook Quarter - Other were placed in service.

Allocation of Purchase Price of Real Estate Acquired

The Company allocates the purchase price of real estate investment properties to various components, such as land, buildings and intangibles related to in-place leases and customer relationships, based on their relative fair values.

The gross carrying amount of lease acquisition costs included in deferred leasing costs as of December 31, 2024 and 2023 was $9.4 million and $10.6 million, respectively, and accumulated amortization was $8.4 million and $9.4 million, respectively. Amortization expense totaled, $0.2 million, $0.3 million and $0.4 million, for the years ended December 31, 2024, 2023, and 2022, respectively. The gross carrying amount of below market lease intangible liabilities included in deferred income as of December 31, 2024 and 2023 was $21.8 million and $23.3 million, respectively, and accumulated amortization was $18.0 million and $18.6 million, respectively. Accretion income totaled $0.9 million, $1.3 million, and $1.3 million, for the years ended December 31, 2024, 2023, and 2022, respectively. The gross carrying amount of above market lease intangible assets included in accounts receivable as of December 31, 2024 and 2023 was $0.6 million and $0.6 million, respectively, and accumulated amortization was $260,600 and $227,700, respectively. Amortization expense totaled $32,900, $32,900 and $32,900, for the years ended December 31, 2024, 2023, and 2022, respectively. The remaining weighted-average amortization period as of December 31, 2024 is 4.5 years, 5.3 years, and 5.1 years for lease acquisition costs, above market leases and below market leases, respectively.

As of December 31, 2024, scheduled amortization of intangible assets and deferred income related to in place leases is as follows:


(In thousands)	Lease acquisition costs		Above market leases		Below market leases
2025	$	146	$	33	$	601
2026	123		33		508
2027	119		33		507
2028	117		33		507
2029	103		33		226
Thereafter	372		178		1,504
Total	$	980	$	343	$	3,853