Real Estate and Lease Intangibles (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Carrying Amounts of Investment in Real Estate

The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of September 30, 2017 and December 31, 2016 (amounts in thousands):

	September 30, 2017			December 31, 2016
Land	$	5,985,004		$	5,899,862
Depreciable property:
Buildings and improvements		17,601,348			16,913,430
Furniture, fixtures and equipment		1,500,963			1,346,300
In-Place lease intangibles		469,091			470,849
Projects under development:
Land		61,047			115,876
Construction-in-progress		232,017			521,292
Land held for development:
Land		63,439			84,440
Construction-in-progress		35,634			34,376
Investment in real estate		25,948,543			25,386,425
Accumulated depreciation		(5,849,110	)		(5,360,389	)
Investment in real estate, net	$	20,099,433		$	20,026,036

Summary of Carrying Amounts of Above and Below Market Ground And Retail Lease Intangibles

The following table summarizes the carrying amounts for the Company's above and below market ground and retail lease intangibles as of September 30, 2017 and December 31, 2016 (amounts in thousands):

Description	Balance Sheet Location	September 30, 2017			December 31, 2016
Assets
Ground lease intangibles – below market	Other Assets	$	191,918		$	178,251
Retail lease intangibles – above market	Other Assets		1,260			1,260
Lease intangible assets			193,178			179,511
Accumulated amortization			(21,305	)		(17,972	)
Lease intangible assets, net		$	171,873		$	161,539

Liabilities
Ground lease intangibles – above market	Other Liabilities	$	2,400		$	2,400
Retail lease intangibles – below market	Other Liabilities		5,270			5,270
Lease intangible liabilities			7,670			7,670
Accumulated amortization			(5,113	)		(4,509	)
Lease intangible liabilities, net		$	2,557		$	3,161

Summary of the Effect of the Amortization for Above and Below Market Ground and Retail Lease Intangibles

The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on the Company’s accompanying consolidated statements of operations and comprehensive income for the nine months and quarters ended September 30, 2017 and 2016 respectively (amounts in thousands):

		Nine Months Ended						Quarter Ended
		September 30,						September 30,
Description	Income Statement Location	2017			2016			2017			2016
Ground lease intangible amortization	Property and Maintenance	$	(3,253	)	$	(3,241	)	$	(1,092	)	$	(1,080	)
Retail lease intangible amortization	Rental Income		524			675			80			222
Total amortization of above/below market lease intangibles		$	(2,729	)	$	(2,566	)	$	(1,012	)	$	(858	)

Summary of Aggregate Amortization for Above and Below Market Ground And Retail Lease Intangibles

The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands):

	Remaining
	2017			2018			2019			2020			2021			2022
Ground lease intangibles	$	(1,116	)	$	(4,463	)	$	(4,463	)	$	(4,463	)	$	(4,463	)	$	(4,463	)
Retail lease intangibles		16			71			71			71			71			27
Total	$	(1,100	)	$	(4,392	)	$	(4,392	)	$	(4,392	)	$	(4,392	)	$	(4,436	)

Acquired Properties From Unaffiliated Parties

During the nine months ended September 30, 2017, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):

	Properties		Apartment Units		Purchase Price
Rental Properties – Consolidated (1)		4		947	$	468,050
Total		4		947	$	468,050

(1)

Purchase price includes an allocation of approximately $68.3 million to land, $386.2 million to depreciable property (inclusive of capitalized closing costs) and $13.7 million to ground lease intangible (included in other assets). For one of the property acquisitions, the Company owns the building and improvements and leases the land underlying the improvements under a long-term ground lease that expires in 2113. This property is consolidated and reflected as a real estate asset while the ground lease is accounted for as an operating lease.

Disposed Properties to Unaffiliated Parties

During the nine months ended September 30, 2017, the Company disposed of the following to unaffiliated parties (sales price in thousands):

	Properties		Apartment Units		Sales Price
Rental Properties – Consolidated		4		1,024	$	319,700
Land Parcels (one)		—		—		33,450
Total		4		1,024	$	353,150