Intangible Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets and Liabilities

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

	June 30, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Assets:
In-place leases	$	191,928	$	(53,058)	$	138,870	$	181,564	$	(45,210)	$	136,354
Above-market leases	21,634		(5,163)		16,471		21,661		(4,361)		17,300
Lease incentives	8,541		(1,609)		6,932		8,996		(1,296)		7,700
Total intangible assets	$	222,103	$	(59,830)	$	162,273	$	212,221	$	(50,867)	$	161,354
Liabilities:
Below-market leases	$	33,062	$	(9,186)	$	23,876	$	33,196	$	(7,843)	$	25,353

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 June 30, 2024 and as of December 31, 2023 by category were as follows:

	Years Remaining
	June 30, 2024	December 31, 2023
In-place leases	8.9	8.8
Above-market leases	11.8	12.2
Below-market leases	10.5	10.9
Lease incentives	10.5	11.1

Amortization of Intangible Assets and Liabilities

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Amortization:
Amortization of in-place leases	$	5,196	$	4,809	$	10,071	$	9,479
Net adjustment to rental revenue:
Above-market lease assets	(93)		(391)		(188)		(762)
Below-market lease liabilities	380		768		761		1,551
Lease incentives	(189)		(193)		(380)		(392)
	$	98	$	184	$	193	$	397

Projected Amortization of Intangible Assets and Liabilities

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of June 30, 2024, for the next five years and thereafter (in thousands):

	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
In-place leases	$	10,388	$	20,525	$	19,319	$	17,352	$	14,548	$	56,738	$	138,870
Above-market lease assets	$	(828)	$	(1,655)	$	(1,632)	$	(1,568)	$	(1,523)	$	(9,265)	$	(16,471)
Below-market lease liabilities	1,394		2,771		2,681		2,610		2,478		11,942		23,876
Lease incentives	(375)		(751)		(751)		(695)		(665)		(3,695)		(6,932)
Net adjustment to rental revenue	$	191	$	365	$	298	$	347	$	290	$	(1,018)	$	473

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of June 30, 2024, for the next five years and thereafter (in thousands):

	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
In-place leases	$	10,388	$	20,525	$	19,319	$	17,352	$	14,548	$	56,738	$	138,870
Above-market lease assets	$	(828)	$	(1,655)	$	(1,632)	$	(1,568)	$	(1,523)	$	(9,265)	$	(16,471)
Below-market lease liabilities	1,394		2,771		2,681		2,610		2,478		11,942		23,876
Lease incentives	(375)		(751)		(751)		(695)		(665)		(3,695)		(6,932)
Net adjustment to rental revenue	$	191	$	365	$	298	$	347	$	290	$	(1,018)	$	473