| INTANGIBLE ASSETS AND LIABILITIES |
5. INTANGIBLE ASSETS AND LIABILITIES At September 30, 2026, and December 31, 2025, intangible assets included the following ($ in thousands):
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2026 |
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|
2025 |
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In-place leases, net of accumulated amortization of $134,344 and $136,277 in 2026 and 2025, respectively |
|
$ |
141,871 |
|
|
|
135,606 |
|
Below-market ground leases, net of accumulated amortization of $3,066 and $2,854 in 2026 and 2025, respectively |
|
|
16,186 |
|
|
|
16,398 |
|
Above-market leases, net of accumulated amortization of $23,045 and $23,949 in 2026 and 2025, respectively |
|
|
9,308 |
|
|
|
11,060 |
|
Goodwill |
|
|
1,674 |
|
|
|
1,674 |
|
|
|
$ |
169,039 |
|
|
|
164,738 |
|
At September 30, 2026, and December 31, 2025, intangible liabilities were the following ($ in thousands):
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2026 |
|
|
2025 |
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Below-market leases, net of accumulated amortization of $55,268 and $61,343 in 2026 and 2025, respectively |
|
$ |
117,826 |
|
|
$ |
117,085 |
|
The amortization of the above assets and liabilities are recorded as follows ($ in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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Revenues: |
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|
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|
|
|
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|
|
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Rental property revenues, net (Below-market and Above-market leases) |
|
$ |
3,371 |
|
|
$ |
3,398 |
|
|
$ |
11,731 |
|
|
$ |
9,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Expenses: |
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|
|
|
|
|
|
|
|
|
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Depreciation and amortization (In-place leases) |
|
|
6,177 |
|
|
|
5,925 |
|
|
|
19,924 |
|
|
|
17,243 |
|
Rental property operating and other expenses (Below-market ground leases) |
|
|
75 |
|
|
|
71 |
|
|
|
225 |
|
|
|
211 |
|
Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows ($ in thousands):
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In-Place
Leases |
|
|
Below-Market Ground Lease |
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|
Above-Market Leases |
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|
Below-Market
Leases |
|
|
2026 (three months) |
|
$ |
5,982 |
|
|
$ |
107 |
|
|
$ |
550 |
|
|
$ |
(3,837 |
) |
|
2027 |
|
|
21,897 |
|
|
|
282 |
|
|
|
1,838 |
|
|
|
(14,981 |
) |
|
2028 |
|
|
20,453 |
|
|
|
282 |
|
|
|
1,727 |
|
|
|
(14,607 |
) |
|
2029 |
|
|
18,336 |
|
|
|
282 |
|
|
|
1,460 |
|
|
|
(13,809 |
) |
|
2030 |
|
|
15,958 |
|
|
|
282 |
|
|
|
1,265 |
|
|
|
(12,216 |
) |
|
2031 |
|
|
13,965 |
|
|
|
282 |
|
|
|
966 |
|
|
|
(11,421 |
) |
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Thereafter |
|
|
45,280 |
|
|
|
14,669 |
|
|
|
1,502 |
|
|
|
(46,955 |
) |
|
|
|
$ |
141,871 |
|
|
$ |
16,186 |
|
|
$ |
9,308 |
|
|
$ |
(117,826 |
) |
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|