| Intangible Assets and Liabilities |
Note 5. Intangible Assets and Liabilities Intangible assets and liabilities consisted of the following as of June 30, 2025:
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June 30, 2025 |
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Weighted average |
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Gross carrying |
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Accumulated |
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Net carrying |
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amortization |
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amount |
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amortization |
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amount |
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period (years) |
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In-place leases |
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$ |
107,065,000 |
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$ |
(46,980,000 |
) |
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$ |
60,085,000 |
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7.3 |
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Above-market leases |
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3,905,000 |
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(1,801,000 |
) |
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2,104,000 |
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6.0 |
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Total intangible lease assets, net |
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$ |
110,970,000 |
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$ |
(48,781,000 |
) |
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$ |
62,189,000 |
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Below-market leases |
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$ |
35,341,000 |
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$ |
(11,728,000 |
) |
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$ |
23,613,000 |
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11.1 |
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The Company records net amortization of above-market and below-market lease intangibles to rental revenue and records amortization of in-place lease assets to depreciation and amortization expense. Amortization of intangible assets and liabilities for the three and six months ended June 30, 2025 and 2024 were as follows:
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Three months ended June 30, |
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Six months ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Net adjustment to rental revenue |
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$ |
626,000 |
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$ |
701,000 |
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$ |
1,236,000 |
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$ |
1,325,000 |
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Amortization of in-place leases |
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$ |
3,224,000 |
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$ |
3,054,000 |
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$ |
6,469,000 |
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$ |
6,216,000 |
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The estimated future amortization of lease assets to amortization expense and the amortization of above-market and below-market lease intangibles to rental revenue as of June 30, 2025 are as follows:
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Amortization |
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Rental revenue |
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In-place |
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Above-market |
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Below-market |
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lease assets |
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leases |
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leases |
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Total |
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Remainder of 2025 |
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$ |
6,309,000 |
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$ |
(260,000 |
) |
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$ |
1,539,000 |
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$ |
1,279,000 |
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2026 |
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11,685,000 |
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(484,000 |
) |
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3,021,000 |
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2,537,000 |
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2027 |
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9,893,000 |
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(386,000 |
) |
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2,598,000 |
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2,212,000 |
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2028 |
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7,849,000 |
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(342,000 |
) |
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2,385,000 |
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2,043,000 |
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2029 |
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6,519,000 |
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(294,000 |
) |
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2,242,000 |
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1,948,000 |
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Thereafter |
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17,830,000 |
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(338,000 |
) |
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11,828,000 |
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11,490,000 |
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Total |
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$ |
60,085,000 |
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$ |
(2,104,000 |
) |
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$ |
23,613,000 |
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$ |
21,509,000 |
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