INTANGIBLE ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2023

INTANGIBLE ASSETS AND LIABILITIES

INTANGIBLE ASSETS AND LIABILITIES

NOTE 9. INTANGIBLE ASSETS AND LIABILITIES

Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of September 30, 2023 and December 31, 2022 (in thousands):

	As of
	September 30, 2023		December 31, 2022
Intangible Lease Assets:
Value of In-Place Leases	$	94,496	$	90,335
Value of Above Market In-Place Leases		31,756		32,008
Value of Intangible Leasing Costs		26,577		25,531
Sub-total Intangible Lease Assets		152,829		147,874
Accumulated Amortization		(46,978)		(31,890)
Sub-total Intangible Lease Assets—Net		105,851		115,984
Intangible Lease Liabilities (Included in Accrued and Other Liabilities):
Value of Below Market In-Place Leases		(15,071)		(12,307)
Sub-total Intangible Lease Liabilities		(15,071)		(12,307)
Accumulated Amortization		3,868		2,422
Sub-total Intangible Lease Liabilities—Net		(11,203)		(9,885)
Total Intangible Assets and Liabilities—Net	$	94,648	$	106,099

The following table reflects the net amortization of intangible assets and liabilities during the three and nine months ended September 30, 2023 and 2022 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization Expense	$	4,837	$	3,076	$	13,724	$	8,605
Accretion to Income Properties Revenue		487		507		1,793		1,485
Net Amortization of Intangible Assets and Liabilities	$	5,324	$	3,583	$	15,517	$	10,090

The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands):

Year Ending December 31,	Future Amortization Amount		Future Accretion to Income Property Revenue		Net Future Amortization of Intangible Assets and Liabilities
Remainder of 2023	$	4,779	$	509	$	5,288
2024		19,115		2,036		21,151
2025		16,796		1,984		18,780
2026		15,053		2,140		17,193
2027		12,153		1,254		13,407
2028		7,473		1,231		8,704
2029 and Thereafter		8,668		1,457		10,125
Total	$	84,037	$	10,611	$	94,648

As of September 30, 2023, the weighted average amortization period of total intangible assets and liabilities was 6.0 years and 7.0 years, respectively.