Acquired In-Place Leases And Above/Below Market Leases

12 Months Ended

Dec. 31, 2011

Acquired In-Place Leases And Above/Below Market Leases [Abstract]

Acquired In-Place Leases And Above/Below Market Leases

NOTE 4. ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

The following summarizes our acquired lease intangibles, which are included in prepaid expenses and other assets and other liabilities and deferred credits, as of December 31, 2011 and 2010 (in thousands):

	December 31, 2011			December 31, 2010
In-place leases	$	59,812		$	41,108
Accumulated amortization		(30,924	)		(30,901	)
Above market leases		42,428			33,557
Accumulated amortization		(25,657	)		(21,433	)
Acquired lease intangible assets, net	$	45,659		$	22,331
Below market leases	$	70,332		$	54,576
Accumulated accretion		(21,715	)		(21,546	)
Acquired lease intangible liabilities, net	$	48,617		$	33,030

The value allocated to in-place leases is amortized over the related lease term as depreciation and amortization expense in the statement of operations. Above and below market leases are amortized over the related lease term as additional rental income for below market leases or a reduction of rental income for above market leases in the statement of operations. Rental income (loss) included net amortization from acquired above and below market leases of $(2.5) million, $(2.3) million and $(1.4) million in 2011, 2010 and 2009, respectively. The remaining weighted-average amortization period as of December 31, 2011, is 6.3 years, 4.6 years and 13.3 years for in-place leases, above market leases and below market leases, respectively. Below market leases include $21.3 million related to below market renewal options, and the weighted-average period prior to the commencement of the renewal options is 11.2 years.

Increases (decreases) in net income as a result of amortization of our in-place leases, above market leases and below market leases are as follows (in thousands):

	Year Ended December 31,
	2011			2010			2009
Amortization of in-place leases	$	(9,006	)	$	(3,630	)	$	(2,173	)
Amortization of above market leases		(7,090	)		(4,281	)		(2,931	)
Amortization of below market leases		4,594			1,964			1,524
Net loss	$	(11,502	)	$	(5,947	)	$	(3,580	)

As of December 31, 2011, the amortization for acquired in-place leases during the next five years and thereafter, assuming no early lease terminations, is as follows (in thousands):

	In-Place Leases		Above Market Leases		Below Market Leases
Year Ending December 31,
2012	$	8,125	$	5,767	$	4,180
2013		5,683		3,711		3,753
2014		3,735		2,210		3,347
2015		2,915		1,806		3,325
2016		2,125		1,284		3,230
Thereafter		6,305		1,993		30,782
	$	28,888	$	16,771	$	48,617