| 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, 2024 and December 31, 2023 (in thousands): | | | | | | | | | As of | | | September 30,
2024 | | December 31,
2023 | Intangible Lease Assets: | | | | | | | Value of In-Place Leases | | $ | 110,027 | | $ | 90,246 | Value of Above Market In-Place Leases | | | 32,587 | | | 31,533 | Value of Intangible Leasing Costs | | | 28,847 | | | 24,974 | Sub-total Intangible Lease Assets | | | 171,461 | | | 146,753 | Accumulated Amortization | | | (63,803) | | | (49,644) | Sub-total Intangible Lease Assets—Net | | | 107,658 | | | 97,109 | Intangible Lease Liabilities: | | | | | | | Value of Below Market In-Place Leases | | | (25,898) | | | (14,848) | Sub-total Intangible Lease Liabilities | | | (25,898) | | | (14,848) | Accumulated Amortization | | | 7,041 | | | 4,407 | Sub-total Intangible Lease Liabilities—Net | | | (18,857) | | | (10,441) | Total Intangible Assets and Liabilities—Net | | $ | 88,801 | | $ | 86,668 |
The following table reflects the net amortization of intangible assets and liabilities during the three and nine months ended September 30, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30,
2024 | | September 30,
2023 | | September 30,
2024 | | September 30,
2023 | Amortization Expense | | $ | 5,188 | | $ | 4,837 | | $ | 14,532 | | $ | 13,724 | Accretion to Income Properties Revenue | | | 112 | | | 487 | | | 830 | | | 1,793 | Net Amortization of Intangible Assets and Liabilities | | $ | 5,300 | | $ | 5,324 | | $ | 15,362 | | $ | 15,517 |
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 2024 | | $ | 5,635 | | $ | 29 | | $ | 5,664 | 2025 | | | 20,704 | | | (29) | | | 20,675 | 2026 | | | 19,834 | | | (116) | | | 19,718 | 2027 | | | 17,083 | | | (859) | | | 16,224 | 2028 | | | 13,307 | | | (814) | | | 12,493 | 2029 | | | 4,867 | | | 305 | | | 5,172 | 2030 and Thereafter | | | 7,361 | | | 1,494 | | | 8,855 | Total | | $ | 88,791 | | $ | 10 | | $ | 88,801 |
As of September 30, 2024, the weighted average amortization period of total intangible assets and liabilities was 7.0 years and 5.4 years, respectively.
|