| Intangible Assets and Liabilities |
5. INTANGIBLE ASSETS AND LIABILITIES The following is a summary of intangible lease assets and liabilities and related accumulated amortization:
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(in thousands)
As of June 30, 2026 |
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Cost |
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Accumulated Amortization |
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Net Book Value |
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Intangible lease assets: |
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In-place leases and origination costs |
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$ |
144,146 |
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$ |
75,899 |
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$ |
68,247 |
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Above-market leases |
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|
52,358 |
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|
27,588 |
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|
|
24,770 |
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Leasing fees |
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|
7,933 |
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|
|
1,314 |
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|
|
6,619 |
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Total intangible lease assets |
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$ |
204,437 |
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$ |
104,801 |
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$ |
99,636 |
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Intangible lease liabilities: |
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Below-market leases |
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$ |
27,887 |
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$ |
14,038 |
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$ |
13,849 |
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Total intangible lease liabilities |
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$ |
27,887 |
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$ |
14,038 |
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$ |
13,849 |
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(in thousands)
As of December 31, 2025 |
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Cost |
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Accumulated Amortization |
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|
Net Book Value |
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Intangible lease assets: |
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In-place leases and origination costs |
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$ |
137,104 |
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$ |
68,185 |
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$ |
68,919 |
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Above-market leases |
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|
48,151 |
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|
|
24,001 |
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|
|
24,150 |
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Leasing fees |
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|
7,399 |
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|
|
979 |
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|
|
6,420 |
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Total intangible lease assets |
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$ |
192,654 |
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$ |
93,165 |
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$ |
99,489 |
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Intangible lease liabilities: |
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Below-market leases |
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$ |
27,140 |
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$ |
12,666 |
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$ |
14,474 |
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Total intangible lease liabilities |
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$ |
27,140 |
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|
$ |
12,666 |
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|
$ |
14,474 |
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The amortization and net adjustment to rental revenue of intangible lease assets and liabilities was as follows:
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For the three months ended June 30, |
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For the six months ended June 30, |
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(in thousands) |
|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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Amortization: |
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Amortization of in-place leases and leasing fees |
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$ |
3,991 |
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$ |
5,674 |
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$ |
7,812 |
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$ |
9,724 |
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Net adjustment to rental revenue: |
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Above-market and below-market leases |
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$ |
457 |
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$ |
941 |
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$ |
1,078 |
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$ |
1,652 |
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The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of June 30, 2026 and December 31, 2025 by category are as follows:
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Years remaining as at |
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June 30, 2026 |
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December 31, 2025 |
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In-place leases and origination costs |
|
|
9.9 |
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|
9.9 |
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Above-market leases |
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|
6.4 |
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|
7.3 |
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Leasing fees |
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|
9.7 |
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|
11.2 |
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Below-market leases |
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|
10.5 |
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11.0 |
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The estimated future amortization expense for intangible lease assets, net of intangible lease liabilities, as of June 30, 2026 are as follows:
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(in thousands) |
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In-place leases and origination costs |
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Above-market leases |
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Leasing fees |
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Below-market leases |
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Total |
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Remainder of 2026 |
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$ |
7,009 |
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$ |
2,631 |
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$ |
509 |
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$ |
(1,341 |
) |
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$ |
8,808 |
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2027 |
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|
11,757 |
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|
4,698 |
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|
712 |
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(2,228 |
) |
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14,939 |
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2028 |
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|
8,832 |
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|
4,325 |
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|
696 |
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(1,395 |
) |
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12,458 |
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2029 |
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|
7,220 |
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|
3,752 |
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|
|
675 |
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|
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(1,241 |
) |
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|
10,406 |
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2030 |
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|
6,181 |
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|
2,404 |
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|
|
602 |
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(1,103 |
) |
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|
8,084 |
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Thereafter |
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27,248 |
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|
|
6,960 |
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|
|
3,425 |
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(6,541 |
) |
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|
31,092 |
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$ |
68,247 |
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|
$ |
24,770 |
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|
$ |
6,619 |
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|
$ |
(13,849 |
) |
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$ |
85,787 |
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