ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

12 Months Ended

Dec. 31, 2022

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, 2022		December 31, 2021
In-place leases	$	58,119	$	67,215
Accumulated amortization	(34,593)		(38,130)
Above market leases	1,885		2,532
Accumulated amortization	(1,778)		(2,383)
Acquired lease intangible assets, net	$	23,633	$	29,234
Below market leases	$	52,832	$	58,655
Accumulated accretion	(33,168)		(36,253)
Acquired lease intangible liabilities, net	$	19,664	$	22,402

The value allocated to in-place leases is amortized over the related lease term as depreciation and amortization expense in the statement of comprehensive 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 comprehensive income. Rental income (loss) includes net amortization from acquired above and below market leases of $3.3 million, $3.2 million and $3.9 million in 2022, 2021 and 2020, respectively. The remaining weighted-average amortization period as of December 31, 2022, is 5.9 years, 2.8 years and 10.5 years for in-place leases, above market leases and below market leases, respectively. Below market leases include $10.2 million related to below market renewal options, and the weighted-average period prior to the commencement of the renewal options is 7.6 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,
	2022		2021		2020
Amortization of in-place leases	$	(7,188)	$	(6,664)	$	(5,018)
Amortization of above market leases	(41)		(34)		(62)
Amortization of below market leases	3,348		3,271		3,994
	$	(3,881)	$	(3,427)	$	(1,086)

As of December 31, 2022, 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,
2023	$	4,914	$	41	$	3,109
2024	4,499		38		2,742
2025	3,742		25		2,200
2026	3,387		3		1,776
2027	3,012		—		1,460
Thereafter	3,972		—		8,376
	$	23,526	$	107	$	19,664