| Intangibles |
Note 4. Intangibles When a new property is acquired, the Company assesses the fair value of all acquired intangible assets and liabilities including in place tenant leases, leasing commissions, above and below market leases, and legal and marketing. The value of these intangible assets and liabilities are recorded as components of Intangible Assets, Net and Intangible Liabilities, Net on the Company’s Consolidated Balance Sheets. As of June 30, 2026 and December 31, 2025, the gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities were:
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|
|
|
|
|
|
|
|
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|
|
|
June 30, 2026 |
|
|
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
Intangible assets: |
|
|
|
|
|
|
|
|
|
In place tenant leases |
|
$ |
40,979,364 |
|
|
$ |
(14,693,472 |
) |
|
$ |
26,285,892 |
|
Leasing commissions |
|
|
12,117,589 |
|
|
|
(2,929,573 |
) |
|
|
9,188,016 |
|
Above-market leases |
|
|
3,063,561 |
|
|
|
(670,928 |
) |
|
|
2,392,633 |
|
Legal and marketing |
|
|
602,104 |
|
|
|
(149,452 |
) |
|
|
452,652 |
|
Total intangible assets |
|
$ |
56,762,618 |
|
|
$ |
(18,443,425 |
) |
|
$ |
38,319,193 |
|
Intangible liabilities: |
|
|
|
|
|
|
|
|
|
Below-market leases |
|
$ |
27,452,161 |
|
|
$ |
(3,989,287 |
) |
|
$ |
23,462,874 |
|
Total intangible liabilities |
|
$ |
27,452,161 |
|
|
$ |
(3,989,287 |
) |
|
$ |
23,462,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
Intangible assets: |
|
|
|
|
|
|
|
|
|
In place tenant leases |
|
$ |
31,521,566 |
|
|
$ |
(11,433,033 |
) |
|
$ |
20,088,533 |
|
Leasing commissions |
|
|
8,662,163 |
|
|
|
(2,223,512 |
) |
|
|
6,438,651 |
|
Above-market leases |
|
|
2,284,038 |
|
|
|
(464,524 |
) |
|
|
1,819,514 |
|
Legal and marketing |
|
|
363,644 |
|
|
|
(107,024 |
) |
|
|
256,620 |
|
Total intangible assets |
|
$ |
42,831,411 |
|
|
$ |
(14,228,093 |
) |
|
$ |
28,603,318 |
|
Intangible liabilities: |
|
|
|
|
|
|
|
|
|
Below-market leases |
|
$ |
22,262,649 |
|
|
$ |
(2,977,297 |
) |
|
$ |
19,285,352 |
|
Total intangible liabilities |
|
$ |
22,262,649 |
|
|
$ |
(2,977,297 |
) |
|
$ |
19,285,352 |
|
As of June 30, 2026, the estimated future amortization on the Company’s in place tenant leases, leasing commissions, above-market leases, and legal and marketing for each of the next five years and thereafter is as follows:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
In Place Tenant Leases |
|
|
Leasing Commissions |
|
|
Above-market Leases |
|
|
Legal and Marketing |
|
2026 (remaining) |
|
$ |
2,714,047 |
|
|
$ |
783,133 |
|
|
$ |
201,852 |
|
|
$ |
48,075 |
|
2027 |
|
|
4,351,258 |
|
|
|
1,381,490 |
|
|
|
356,940 |
|
|
|
82,045 |
|
2028 |
|
|
3,616,271 |
|
|
|
1,226,374 |
|
|
|
344,211 |
|
|
|
66,714 |
|
2029 |
|
|
2,859,854 |
|
|
|
1,021,164 |
|
|
|
321,376 |
|
|
|
50,531 |
|
2030 |
|
|
2,525,732 |
|
|
|
933,453 |
|
|
|
313,108 |
|
|
|
40,527 |
|
2031 |
|
|
2,189,320 |
|
|
|
781,502 |
|
|
|
205,104 |
|
|
|
36,608 |
|
Thereafter |
|
|
8,029,410 |
|
|
|
3,060,900 |
|
|
|
650,042 |
|
|
|
128,152 |
|
|
|
$ |
26,285,892 |
|
|
$ |
9,188,016 |
|
|
$ |
2,392,633 |
|
|
$ |
452,652 |
|
As of June 30, 2026, the estimated future amortization on the Company’s below-market leases for each of the next five years and thereafter is as follows:
|
|
|
|
|
|
|
Below-market Leases |
|
2026 (remaining) |
|
$ |
(1,131,723 |
) |
2027 |
|
|
(2,023,985 |
) |
2028 |
|
|
(1,826,014 |
) |
2029 |
|
|
(1,621,454 |
) |
2030 |
|
|
(1,551,285 |
) |
2031 |
|
|
(1,530,458 |
) |
Thereafter |
|
|
(13,777,955 |
) |
|
|
$ |
(23,462,874 |
) |
The remaining weighted-average amortization period for intangible assets and liabilities acquired in connection with the Company’s acquisitions during the six months ended June 30, 2026 is 11.00 years. This includes a weighted average amortization period of 10.05 years for in place tenant leases, 11.33 years for leasing commissions, 13.04 years for above-market leases, 12.31 years for below-market leases, and 9.23 years for legal and marketing.
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