Acquired Intangibles Assets and Liabilities

9 Months Ended

Sep. 30, 2019

Acquired Intangible Assets and Liabilities [Abstract]

Acquired Intangibles Assets and Liabilities

4. Acquired Intangible Assets and Liabilities

Summarized below are the carrying values for the major classes of intangible assets and liabilities (unaudited and in thousands):

		September 30, 2019						December 31, 2018
		Gross						Gross
		Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
	Useful Lives	Value		Amortization		Value		Value		Amortization		Value
Customer Relationships	12 years	$	95,705	$	(34,424)	$	61,281	$	95,705	$	(28,461)	$	67,244
In-Place Leases	0.3 to 10 years		34,518		(21,272)		13,246		32,066		(17,670)		14,396
Solar Power Agreement (1)	17 years		13,747		(4,246)		9,501		13,747		(3,639)		10,108
Platform Intangible	3 years		—		—		—		9,600		(9,600)		—
Acquired Favorable Leases
Acquired below market leases - as Lessee	46 years		—		—		—		2,301		—		2,301
Acquired above market leases - as Lessor	0.5 to 8 years		5,024		(3,810)		1,214		4,649		(3,247)		1,402
Tradenames	3 years		—		—		—		3,100		(3,100)		—
Total Intangible Assets		$	148,994	$	(63,752)	$	85,242	$	161,168	$	(65,717)	$	95,451
Solar Power Agreement (1)	17 years		13,747		(4,246)		9,501		13,747		(3,639)		10,108
Acquired Unfavorable Leases
Acquired below market leases - as Lessor	1 to 4 years		1,084		(885)		199		809		(611)		198
Acquired above market leases - as Lessee	11 to 12 years		2,453		(929)		1,524		2,453		(767)		1,686
Total Intangible Liabilities (2)		$	17,284	$	(6,060)	$	11,224	$	17,009	$	(5,017)	$	11,992

(1) Amortization related to the Solar Power Agreement asset and liability is recorded at the same rate and therefore has no net impact on the statement of operations.

(2) Intangible liabilities are included within the “Advance rents, security deposits and other liabilities” line item of the consolidated balance sheets.

Above or below market leases are amortized as a reduction to or increase in rental revenue in the case of the Company as lessor as well as a reduction to or increase in rent expense in the case of the Company as lessee over the remaining lease terms. The net effect of amortization of acquired above-market and below-market leases resulted in a net decrease in rental revenue of less than $0.1 million and $0.1 million for the three months ended September 30, 2019 and 2018, respectively. The net effect of amortization of acquired above-market and below-market leases resulted in a net decrease in rental revenue of $0.1 million and $0.4 million for the nine months ended September 30, 2019 and 2018, respectively. The estimated amortization of acquired favorable and unfavorable leases for each of the five succeeding fiscal years ending December 31 is as follows (unaudited and in thousands):

	Net Rental Revenue		Net Rental Expense
	Decrease		Increase/(Decrease)
2019 (October - December)	$	125	$	(56)
2020		659		(216)
2021		151		(216)
2022		51		(216)
2023		24		(216)
Thereafter		5		(604)
Total	$	1,015	$	(1,524)

Net amortization of all other identified intangible assets and liabilities was $3.5 million and $3.1 million for the three months ended September 30, 2019 and 2018, respectively. Net amortization of all other identified intangible assets and liabilities was $9.9 million and $11.5 million for the nine months ended September 30, 2019 and 2018, respectively. The estimated net amortization of all other identified intangible assets and liabilities for each of the five succeeding fiscal years ending December 31 is as follows (unaudited and in thousands):

2019 (October - December)	$	3,214
2020		12,080
2021		10,580
2022		10,069
2023		10,065
Thereafter		28,519
Total	$	74,527