Acquired Intangible Assets And Liabilities

6 Months Ended

Jun. 30, 2012

Acquired Intangible Assets And Liabilities

4. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (acquired in place lease value and acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of June 30, 2012 and December 31, 2011.

	Balance as of
(Amounts in thousands)	June 30, 2012			December 31, 2011
Acquired in place lease value:
Gross amount	$	584,012		$	545,409
Accumulated amortization		(336,632	)		(312,499	)
Net	$	247,380		$	232,910
Acquired above-market lease value:
Gross amount	$	87,674		$	87,800
Accumulated amortization		(62,307	)		(58,099	)
Net	$	25,367		$	29,701
Acquired below-market lease value:
Gross amount	$	237,553		$	201,275
Accumulated amortization		(124,662	)		(115,456	)
Net	$	112,891		$	85,819

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.9 million and $1.9 million for the three months ended June 30, 2012 and 2011, respectively, and $5.1 million and $3.7 million for the six months ended June 30, 2012 and 2011, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 6.9 years and 4.2 years, respectively, as of June 30, 2012. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	12,658
2014		10,732
2015		9,687
2016		8,788
2017		7,869

Costs associated with extending or renewing acquired leases are capitalized and classified as deferred leasing cost. Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $12.4 million and $13.5 million for the three months ended June 30, 2012 and 2011, respectively, and $24.3 million and $27.8 million for the six months ended June 30, 2012 and 2011, respectively. The expected average amortization period for acquired in place lease value is 6.2 years as of June 30, 2012. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.3 years as of June 30, 2012. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	46,609
2014		41,425
2015		32,748
2016		30,321
2017		15,849

Digital Realty Trust, L.P. [Member]

Acquired Intangible Assets And Liabilities

4. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (acquired in place lease value and acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of June 30, 2012 and December 31, 2011.

	Balance as of
(Amounts in thousands)	June 30, 2012			December 31, 2011
Acquired in place lease value:
Gross amount	$	584,012		$	545,409
Accumulated amortization		(336,632	)		(312,499	)
Net	$	247,380		$	232,910
Acquired above-market lease value:
Gross amount	$	87,674		$	87,800
Accumulated amortization		(62,307	)		(58,099	)
Net	$	25,367		$	29,701
Acquired below-market lease value:
Gross amount	$	237,553		$	201,275
Accumulated amortization		(124,662	)		(115,456	)
Net	$	112,891		$	85,819

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.9 million and $1.9 million for the three months ended June 30, 2012 and 2011, respectively, and $5.1 million and $3.7 million for the six months ended June 30, 2012 and 2011, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 6.9 years and 4.2 years, respectively, as of June 30, 2012. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	12,658
2014		10,732
2015		9,687
2016		8,788
2017		7,869

Costs associated with extending or renewing acquired leases are capitalized and classified as deferred leasing cost. Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $12.4 million and $13.5 million for the three months ended June 30, 2012 and 2011, respectively, and $24.3 million and $27.8 million for the six months ended June 30, 2012 and 2011, respectively. The expected average amortization period for acquired in place lease value is 6.2 years as of June 30, 2012. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.3 years as of June 30, 2012. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	46,609
2014		41,425
2015		32,748
2016		30,321
2017		15,849