v3.26.3
INTANGIBLE ASSETS AND LIABILITIES
 9 Months Ended
Sep. 30, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND LIABILITIES

NOTE 8. INTANGIBLE ASSETS AND LIABILITIES

Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of September 30, 2026 and December 31, 2025 (in thousands):

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​

​

​

​

​

​

​

​

​

As of

​

  ​ ​ ​

September 30,
2026

  ​ ​ ​

December 31,
2025

Intangible Lease Assets:

​

​

​

​

​

​

Value of In-Place Leases

​

$

109,620

​

$

99,346

Value of Above Market In-Place Leases

​

​

20,710

​

​

23,052

Value of Intangible Leasing Costs

​

​

33,729

​

​

29,963

Sub-total Intangible Lease Assets

​

​

164,059

​

​

152,361

Accumulated Amortization

​

​

(66,967)

​

​

(67,651)

Sub-total Intangible Lease Assets—Net

​

​

97,092

​

​

84,710

Intangible Lease Liabilities:

​

​

​

​

​

​

Value of Below Market In-Place Leases

​

​

(47,083)

​

​

(42,144)

Sub-total Intangible Lease Liabilities

​

​

(47,083)

​

​

(42,144)

Accumulated Amortization

​

​

12,299

​

​

10,658

Sub-total Intangible Lease Liabilities—Net

​

​

(34,784)

​

​

(31,486)

Total Intangible Assets and Liabilities—Net

​

$

62,308

​

$

53,224

 

 

 

The following table reflects the net amortization of intangible assets and liabilities during the three and nine months ended September 30, 2026 and 2025 (in thousands):

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Three Months Ended September 30,

​

Nine Months Ended September 30,

​

​

2026

​

2025

​

2026

​

2025

Amortization Expense

​

$

7,224

​

$

5,951

​

$

19,524

​

$

18,267

Accretion to Income Properties Revenue

​

​

(879)

​

​

(180)

​

​

(2,488)

​

​

(896)

Net Amortization of Intangible Assets and Liabilities

​

$

6,345

​

$

5,771

​

$

17,036

​

$

17,371

 

 

Amortization expense and accretion to income properties revenue for the three and nine months ended September 30, 2026 includes $1.3 million and $1.7 million, respectively, related to the acceleration of lease intangibles resulting from certain lease terminations during the period. For the three and nine months ended September 30, 2025, amortization expense and accretion to income properties revenue included $0.5 million and $1.8 million, respectively, related to the acceleration of lease intangibles resulting from certain lease terminations during the period.

The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands):

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​

​

​

​

​

​

​

​

​

As of September 30,

  ​ ​ ​

Future Amortization Expense

  ​ ​ ​

Future Accretion to Income Property Revenue

  ​ ​ ​

Net Future Amortization of Intangible Assets and Liabilities

Remainder of 2026

​

$

6,601

​

$

(1,186)

​

$

5,415

2027

​

​

21,956

​

​

(3,708)

​

​

18,248

2028

​

​

15,936

​

​

(3,106)

​

​

12,830

2029

​

​

10,996

​

​

(2,888)

​

​

8,108

2030

​

​

8,838

​

​

(2,558)

​

​

6,280

2031

​

​

7,264

​

​

(2,465)

​

​

4,799

2032 and Thereafter

​

​

15,426

​

​

(8,798)

​

​

6,628

Total

​

$

87,017

​

$

(24,709)

​

$

62,308

 

 

 

As of September 30, 2026, the weighted average amortization period of total intangible assets and liabilities was 7.6 years and 9.3 years, respectively.