| Intangible Assets |
We make estimates in allocating the purchase price of acquisitions to the various components of the acquisition based on the fair value of each component. For certain acquisitions, such components include in-place leases and other intangible assets. In the case of the value of in-place leases, we make estimates based on the evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during the hypothetical expected lease-up periods, market conditions and costs to execute similar leases. The following is a summary of the carrying amount of intangible assets as of March 31, 2026 and December 31, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | | | | | | | Accumulated | | | | | | | | | | | Accumulated | | | | | Assets | | | Cost | | | | Amortization | | | | Net | | | Cost | | | | Amortization | | | | Net | In-place leases | | $ | 28,602 | (1) | | $ | (8,849) | (2) | | $ | 19,753 | | $ | 24,098 | (1) | | $ | (7,772) | (2) | | $ | 16,326 | Tax abatement intangible | | $ | 8,309 | (3) | | $ | (1,962) | (3) | | $ | 6,347 | | $ | 8,309 | (3) | | $ | (1,789) | (3) | | $ | 6,520 |
| (1) | Included in the Buildings and improvements line item in our Consolidated Balance Sheets. Increase relates to acquisition of a portfolio of three seniors housing communities during 2026 within our SHOP segment. See Note 3. Owned Real Properties for more information regarding our SHOP segment acquisitions. |
| (2) | Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets. |
| (3) | Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets. |
The following table provides future amortization expenses related to the intangible assets at March 31, 2026 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | April-December | | | | | | | | | | | | | | | | | | | | | Total | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | 2031 | | Thereafter | In-place leases (1) | | $ | 19,753 | | $ | 3,198 | | $ | 4,152 | | $ | 3,819 | | $ | 3,487 | | $ | 2,944 | | $ | 921 | | $ | 1,232 | Tax abatement intangible (2) | | | 6,347 | | | 519 | | | 692 | | | 692 | | | 692 | | | 692 | | | 692 | | | 2,368 | | | $ | 26,100 | | $ | 3,717 | | $ | 4,844 | | $ | 4,511 | | $ | 4,179 | | $ | 3,636 | | $ | 1,613 | | $ | 3,600 |
| (1) | Recorded as amortization expense included in the Depreciation and amortization line item on our Consolidated Statements of Income. |
| (2) | Recorded as Triple-net lease property tax expense on our Consolidated Statements of Income. |
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