XML 45 R9.htm IDEA: XBRL DOCUMENT v3.2.0.727
Acquired In-Place Leases and Above/Below Market Leases (Notes)
 12 Months Ended
Dec. 31, 2014
Leases [Abstract]  
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES
The following summarizes our acquired lease intangibles, which are included in other assets and other liabilities and deferred credits (in thousands):
    
 
December 31, 2014
 
December 31, 2013
In-place leases
$
53,967

 
$
62,813

Accumulated amortization
(35,336
)
 
(38,279
)
Above market leases
22,500

 
28,279

Accumulated amortization
(17,397
)
 
(20,880
)
Acquired lease intangible assets, net
$
23,734

 
$
31,933

Below market leases
$
70,013

 
$
76,502

Accumulated accretion
(27,161
)
 
(28,592
)
Acquired lease intangible liabilities, net
$
42,852

 
$
47,910



The value allocated to in-place leases is amortized over the related lease term as depreciation and amortization expense in the statement of income. 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 income. Rental income (loss) includes net amortization from acquired above and below market leases of $2.8 million, $2.4 million and $(0.2) million in 2014, 2013 and 2012, respectively. The remaining weighted-average amortization period as of December 31, 2014, is 2.4 years, 1.4 years and 8.5 years for in-place leases, above market leases and below market leases, respectively. Below market leases include $17.5 million related to below market renewal options, and the weighted-average period prior to the commencement of the renewal options is 10.8 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,
  
2014
 
2013
 
2012
Amortization of in-place leases
$
(5,903
)
 
$
(9,120
)
 
$
(10,248
)
Amortization of above market leases
(2,296
)
 
(4,052
)
 
(5,739
)
Amortization of below market leases
5,057

 
6,440

 
5,502

Net loss
$
(3,142
)
 
$
(6,732
)
 
$
(10,485
)

As of December 31, 2014, the amortization for acquired 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,
 
 
 
 
 
2015
$
4,744

 
$
1,752

 
$
4,667

2016
3,954

 
1,263

 
4,525

2017
3,189

 
932

 
4,169

2018
1,893

 
628

 
3,649

2019
1,452

 
318

 
3,560

Thereafter
3,399

 
210

 
22,282

 
$
18,631

 
$
5,103

 
$
42,852