Intangible Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following (in thousands):

	March 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Assets:
In-place leases	$	124,605	$	(16,724)	$	107,881	$	116,368	$	(13,408)	$	102,960
Above-market leases	17,455		(1,843)		15,612		17,348		(1,516)		15,832
Assembled workforce	873		(665)		208		873		(592)		281
Lease incentives	5,343		(188)		5,155		5,821		(122)		5,699
Total intangible assets	$	148,276	$	(19,420)	$	128,856	$	140,410	$	(15,638)	$	124,772
Liabilities:
Below-market leases	$	27,425	$	(3,410)	$	24,015	$	26,185	$	(2,869)	$	23,316

Weighted Average Amortization Period for Intangible Assets and Liabilities

The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of March 31, 2022 and as of December 31, 2021 by category were as follows:

	Years Remaining
	March 31, 2022	December 31, 2021
In-place leases	7.3	9.7
Above-market leases	11.8	12.8
Below-market leases	9.8	12.3
Assembled workforce	0.8	1.0
Lease incentives	11.8	12.7

Amortization of Intangible Assets and Liabilities

The following amounts in the accompanying condensed consolidated statements of operations and comprehensive income related to the amortization of intangibles assets and liabilities for all property and ground leases (in thousands):

	Three Months Ended March 31,
	2022		2021
Amortization:
Amortization of in-place leases	$	3,555	$	1,719
Amortization of assembled workforce	73		73
	$	3,628	$	1,792
Net adjustment to rental revenue:
Above-market lease assets	(327)		(183)
Below-market lease liabilities	610		373
Lease incentives	(118)		—
	$	165	$	190

Projected Amortization of Intangible Assets and Liabilities

The following table provides the projected amortization of in-place lease assets and assembled workforce intangible assets to amortization expense, and the net amortization of above-market, below-market, and lease incentive lease intangibles to rental revenue as of March 31, 2022, for the next five years and thereafter (in thousands):

	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
In-place leases	$	11,034	$	13,704	$	12,933	$	12,642	$	11,430	$	46,138	$	107,881
Assembled workforce	208		—		—		—		—		—		208
Amortization expense	$	11,242	$	13,704	$	12,933	$	12,642	$	11,430	$	46,138	$	108,089
Above-market lease assets	(997)		(1,330)		(1,326)		(1,325)		(1,324)		(9,310)		(15,612)
Below-market lease liabilities	1,830		2,375		2,317		2,294		2,178		13,021		24,015
Lease incentives	$	(322)	$	(428)	$	(428)	$	(428)	$	(428)	$	(3,121)	$	(5,155)
Net adjustment to rental revenue	$	511	$	617	$	563	$	541	$	426	$	590	$	3,248

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table provides the projected amortization of in-place lease assets and assembled workforce intangible assets to amortization expense, and the net amortization of above-market, below-market, and lease incentive lease intangibles to rental revenue as of March 31, 2022, for the next five years and thereafter (in thousands):

	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
In-place leases	$	11,034	$	13,704	$	12,933	$	12,642	$	11,430	$	46,138	$	107,881
Assembled workforce	208		—		—		—		—		—		208
Amortization expense	$	11,242	$	13,704	$	12,933	$	12,642	$	11,430	$	46,138	$	108,089
Above-market lease assets	(997)		(1,330)		(1,326)		(1,325)		(1,324)		(9,310)		(15,612)
Below-market lease liabilities	1,830		2,375		2,317		2,294		2,178		13,021		24,015
Lease incentives	$	(322)	$	(428)	$	(428)	$	(428)	$	(428)	$	(3,121)	$	(5,155)
Net adjustment to rental revenue	$	511	$	617	$	563	$	541	$	426	$	590	$	3,248