v3.25.2
Deferred Costs, Acquired Lease Intangibles and Goodwill
 6 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Deferred Costs, Acquired Lease Intangibles and Goodwill Deferred Costs, Acquired Lease Intangibles and Goodwill
Deferred costs, net, consisted of the following:
(amounts in thousands)June 30, 2025December 31, 2024
Deferred leasing costs$224,592 $230,836 
Acquired in-place lease value, acquired deferred leasing costs and deferred acquisition costs137,329 137,580 
Acquired above-market leases19,589 19,636 
Total deferred costs, excluding deferred financing costs381,510 388,052 
Less: accumulated amortization(208,099)(212,972)
Total deferred costs, net, excluding net deferred financing costs173,411 175,080 
Deferred financing costs, net, of accumulated amortization of $8,841 and $7,783, respectively (See Note 5)
8,283 8,907 
Total deferred costs, net$181,694 $183,987 
Acquired below-market ground leases, net, consisted of the following:
(amounts in thousands)June 30, 2025December 31, 2024
Acquired below-market ground leases$396,916 $396,916 
Less: accumulated amortization(87,421)(83,506)
Acquired below-market ground leases, net$309,495 $313,410 
Acquired below-market leases, net, consisted of the following:
(amounts in thousands)June 30, 2025December 31, 2024
Acquired below-market leases$(56,359)$(56,359)
Less: accumulated amortization39,278 36,862 
Acquired below-market leases, net$(17,081)$(19,497)
The total amortization related to deferred costs and acquired lease intangibles consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2025202420252024
Rental revenue:
Amortization of below-market leases, net of above-market leases$840 $513 $1,638 $1,027 
Depreciation and amortization:
Amortization of deferred leasing costs and acquired deferred leasing costs5,128 5,231 10,497 11,018 
Amortization related to acquired in-place lease value1,415 1,234 2,823 2,520 
As of June 30, 2025 and December 31, 2024, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the Observatory reportable segment and $264.0 million to the real estate reportable segment.
We performed our annual goodwill testing in October 2024, where we bypassed the optional qualitative goodwill impairment assessment and proceeded directly to a quantitative assessment of the Observatory reportable segment and engaged a third-party valuation consulting firm to perform the valuation process. The quantitative analysis used a combination of the discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs and the guideline company method (a form of the market approach). Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples, EBITDA multiples and control premium rates. Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine
whether impairment had occurred. The quantitative analysis performed concluded the fair value of the reporting unit exceeds its carrying value. We also perform quarterly qualitative assessments and have not identified any events which would indicate, on a more likely than not basis, that the goodwill allocated to the reporting unit was impaired. Many of the factors employed in determining whether or not goodwill is impaired are outside of our control, and it is reasonably likely that assumptions and estimates will change in future periods.