Acquired Intangible Assets and Liabilities

12 Months Ended

Dec. 31, 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 (in thousands):

		December 31, 2019						December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Customer Relationships	12 years	$	95,705	$	(36,411)	$	59,294	$	95,705	$	(28,461)	$	67,244
In-Place Leases	0.5 to 10 years		34,588		(22,522)		12,066		32,066		(17,670)		14,396
Solar Power Agreement (1)	17 years		13,747		(4,448)		9,299		13,747		(3,639)		10,108
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		5,035		(4,015)		1,020		4,649		(3,247)		1,402
Total Intangible Assets		$	149,075	$	(67,396)	$	81,679	$	148,468	$	(53,017)	$	95,451
Solar Power Agreement (1)	17 years		13,747		(4,448)		9,299		13,747		(3,639)		10,108
Acquired Unfavorable Leases
Acquired below market leases - as Lessor	3 to 4 years		1,092		(967)		125		809		(611)		198
Acquired above market leases - as Lessee	11 to 12 years		2,453		(983)		1,470		2,453		(767)		1,686
Total Intangible Liabilities (2)		$	17,292	$	(6,398)	$	10,894	$	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 statements 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 $0.2 million, $0.5 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. The estimated amortization of acquired favorable and unfavorable leases for each of the five succeeding fiscal years ending December 31 is as follows (in thousands):

	Net Rental Revenue Decrease		Net Rental Expense Decrease
2020	$	659	$	(216)
2021		154		(216)
2022		52		(216)
2023		24		(216)
2024		6		(216)
Thereafter		—		(390)
Total	$	895	$	(1,470)

Net amortization of all other identified intangible assets and liabilities was $13.2 million, $15.0 million and $18.2 million for the years ended December 31, 2019, 2018 and 2017, 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 (in thousands):

2020	$	12,100
2021		10,593
2022		10,073
2023		10,070
2024		8,953
Thereafter		19,571
Total	$	71,360