XML 29 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net
 9 Months Ended
Sep. 30, 2013
Intangible Assets and Liabilities Disclosure [Abstract]  
Intangible Assets and Liabilities Disclosure [Text Block]
    Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net

The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, in-place leases and below-market ground lease obligation) and intangible liabilities (acquired value of below-market operating leases and above-market ground lease obligation) as of September 30, 2013 and December 31, 2012:

 
September 30, 2013
 
December 31, 2012
 
(in thousands)
Deferred Leasing Costs and Acquisition-related Intangible Assets, net:
 
 
 
Deferred leasing costs
$
170,609

 
$
168,087

Accumulated amortization
(59,943
)
 
(61,443
)
Deferred leasing costs, net
110,666

 
106,644

Above-market operating leases
28,842

 
27,977

Accumulated amortization
(14,038
)
 
(12,180
)
Above-market operating leases, net
14,804

 
15,797

In-place leases
108,612

 
101,061

Accumulated amortization
(44,476
)
 
(34,019
)
In-place leases, net
64,136

 
67,042

Below-market ground lease obligation
490

 
690

Accumulated amortization
(11
)
 
(205
)
Below-market ground lease obligation, net
479

 
485

Total deferred leasing costs and acquisition-related intangible assets, net
$
190,085

 
$
189,968

Acquisition-related Intangible Liabilities, net: (1)
 
 
 
Below-market operating leases
$
70,966

 
$
70,486

Accumulated amortization
(24,074
)
 
(17,555
)
Below-market operating leases, net
46,892

 
52,931

Above-market ground lease obligation
6,320

 
6,320

Accumulated amortization
(198
)
 
(122
)
Above-market ground lease obligation, net
6,122

 
6,198

Total acquisition-related intangible liabilities, net
$
53,014

 
$
59,129

_______________
(1)
Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets.

The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles, including amounts attributable to discontinued operations, for the three and nine months ended September 30, 2013 and 2012:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
 
(in thousands)
Deferred leasing costs (1)
$
6,945

 
$
5,238

 
$
20,882

 
$
14,126

Above-market operating leases (2)
1,417

 
1,459

 
4,214

 
4,205

In-place leases (1)
7,677

 
6,479

 
22,546

 
14,858

Below-market ground lease obligation (3)
2

 
52

 
6

 
153

Below-market operating leases (4)
(3,355
)
 
(3,487
)
 
(10,229
)
 
(8,821
)
Above-market ground lease obligation (5)
(25
)
 
(25
)
 
(76
)
 
(60
)
Total
$
12,661

 
$
9,716

 
$
37,343

 
$
24,461

_______________
(1)
The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented.
(2)
The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented.
(3)
The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented.
(4)
The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented.
(5)
The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented.

The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of September 30, 2013 for future periods:

Year
Deferred Leasing Costs
 
Above-Market Operating Leases (1)
 
In-Place Leases
 
Below-Market Ground Lease Obligation (2)
 
Below-Market Operating Leases (3)
 
Above-Market Ground Lease Obligation (4)
 
(in thousands)
Remaining 2013
$
6,384

 
$
1,367

 
$
6,549

 
$
2

 
$
(3,201
)
 
$
(25
)
2014
23,533

 
4,837

 
19,053

 
8

 
(11,903
)
 
(101
)
2015
19,669

 
3,035

 
12,676

 
8

 
(9,385
)
 
(101
)
2016
16,920

 
2,007

 
9,445

 
8

 
(7,195
)
 
(101
)
2017
14,468

 
1,690

 
7,744

 
8

 
(6,127
)
 
(101
)
Thereafter
29,692

 
1,868

 
8,669

 
445

 
(9,081
)
 
(5,693
)
Total
$
110,666

 
$
14,804

 
$
64,136

 
$
479

 
$
(46,892
)
 
$
(6,122
)
_______________
(1)
Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations.
(2)
Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations.
(3)
Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations.
(4)
Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations.