XML 27 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Lease Intangibles
 3 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Lease Intangibles
Lease Intangibles

Upon acquisitions of real estate accounted for as business combinations, the Company assesses the fair value of acquired assets (including land, buildings and improvements, and identified intangibles such as above- and below-market leases, including below- market options and acquired in-place leases) and assumed liabilities in accordance with ASC Topic 805. The lease intangibles are amortized over the remaining terms of the respective leases, including option periods where applicable.

Intangible assets and liabilities are summarized as follows (in thousands):
 
March 31, 2017
 
December 31, 2016
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Amortizable Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
In-place lease intangible assets
$
163,219

 
$
(53,027
)
 
$
110,192

 
$
156,420

 
$
(47,827
)
 
$
108,593

Above-market rent
17,295

 
(11,116
)
 
6,179

 
16,649

 
(10,658
)
 
5,991

 
$
180,514

 
$
(64,143
)
 
$
116,371

 
$
173,069

 
$
(58,485
)
 
$
114,584

 
 
 
 
 
 
 
 
 
 
 
 
Amortizable Intangible Liabilities
 
 
 
 
 
 
 
 
 
 
 
Below-market rent
$
(138,476
)
 
$
34,903

 
$
(103,573
)
 
$
(137,032
)
 
$
32,004

 
$
(105,028
)
 
$
(138,476
)
 
$
34,903

 
$
(103,573
)
 
$
(137,032
)
 
$
32,004

 
$
(105,028
)


During the three months ended March 31, 2017, the Company acquired in-place lease intangible assets of $6.8 million, above-market rents of $0.6 million and below-market rents of $1.4 million with weighted-average useful lives of 3.1, 3.7 and 13.3 years, respectively. Amortization of in-place lease intangible assets is recorded in depreciation and amortization expense and amortization of above-market rent and below-market rent are recorded as a reduction to and increase to rental income, respectively, in the consolidated statements of income.

The scheduled amortization of acquired lease intangible assets and assumed liabilities as of March 31, 2017 is as follows (in thousands):
Years Ending December 31,
 
Net Increase in Lease Revenues
 
Increase to Amortization
 
Net
2017 (Remainder)
 
$
9,068

 
$
23,802

 
$
(14,734
)
2018
 
9,439

 
18,149

 
(8,710
)
2019
 
9,021

 
12,823

 
(3,802
)
2020
 
7,746

 
10,595

 
(2,849
)
2021
 
6,883

 
9,022

 
(2,139
)
Thereafter
 
55,237

 
35,801

 
19,436

Total
 
$
97,394

 
$
110,192

 
$
(12,798
)