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Real Estate and Lease Intangibles | 9 Months Ended
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Sep. 30, 2018
Real Estate [Abstract] |
Real Estate and Lease Intangibles |
4. | Real Estate and Lease Intangibles
The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of September 30, 2018 and December 31, 2017 (amounts in thousands):
|  | September 30, 2018 |  |  | December 31, 2017 |
Land |  | $ | 5,866,457 |  |  | $ | 5,996,024 |
Depreciable property: |  |  |  |  |  |  |  |
Buildings and improvements |  |  | 18,174,939 |  |  |  | 17,743,042 |
Furniture, fixtures and equipment |  |  | 1,684,794 |  |  |  | 1,548,961 |
In-Place lease intangibles |  |  | 477,014 |  |  |  | 476,359 |
Projects under development: |  |  |  |  |  |  |  |
Land |  |  | 34,689 |  |  |  | 43,226 |
Construction-in-progress |  |  | 100,272 |  |  |  | 120,321 |
Land held for development: |  |  |  |  |  |  |  |
Land |  |  | 61,038 |  |  |  | 62,538 |
Construction-in-progress |  |  | 26,297 |  |  |  | 36,425 |
Investment in real estate |  |  | 26,425,500 |  |  |  | 26,026,896 |
Accumulated depreciation |  |  | (6,494,770 | ) |  |  | (6,040,378 | )
Investment in real estate, net |  | $ | 19,930,730 |  |  | $ | 19,986,518 |
The following table summarizes the carrying amounts for the Company’s above and below market ground and retail lease intangibles as of September 30, 2018 and December 31, 2017 (amounts in thousands):
Description |  | Balance Sheet Location |  | September 30, 2018 |  |  | December 31, 2017 |
Assets |  |  |  |  |  |  |  |  |  |
Ground lease intangibles – below market |  | Other Assets |  | $ | 191,918 |  |  | $ | 191,918 |
Retail lease intangibles – above market |  | Other Assets |  |  | 1,260 |  |  |  | 1,260 |
Lease intangible assets |  |  |  |  | 193,178 |  |  |  | 193,178 |
Accumulated amortization |  |  |  |  | (25,819 | ) |  |  | (22,434 | )
Lease intangible assets, net |  |  |  | $ | 167,359 |  |  | $ | 170,744 |
Liabilities |  |  |  |  |  |  |  |  |  |
Ground lease intangibles – above market |  | Other Liabilities |  | $ | 2,400 |  |  | $ | 2,400 |
Retail lease intangibles – below market |  | Other Liabilities |  |  | 1,710 |  |  |  | 5,270 |
Lease intangible liabilities |  |  |  |  | 4,110 |  |  |  | 7,670 |
Accumulated amortization |  |  |  |  | (1,674 | ) |  |  | (5,143 | )
Lease intangible liabilities, net |  |  |  | $ | 2,436 |  |  | $ | 2,527 |
The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on the Company’s accompanying consolidated statements of operations and comprehensive income for the nine months and quarters ended September 30, 2018 and 2017, respectively (amounts in thousands):
|  |  |  | Nine Months Ended |  |  | Quarter Ended |
|  |  |  | September 30, |  |  | September 30, |
Description |  | Income Statement Location |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Ground lease intangible amortization |  | Property and Maintenance |  | $ | (3,348 | ) |  | $ | (3,253 | ) |  | $ | (1,116 | ) |  | $ | (1,092 | )
Retail lease intangible amortization |  | Rental Income |  |  | 54 |  |  |  | 524 |  |  |  | 18 |  |  |  | 80 |
Total amortization of above/below market lease intangibles |  |  |  | $ | (3,294 | ) |  | $ | (2,729 | ) |  | $ | (1,098 | ) |  | $ | (1,012 | )
The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands):
|  | Remaining |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |
Ground lease intangibles |  | $ | (1,115 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | )
Retail lease intangibles |  |  | 17 |  |  |  | 71 |  |  |  | 71 |  |  |  | 71 |  |  |  | 27 |  |  |  | 19 |
Total |  | $ | (1,098 | ) |  | $ | (4,392 | ) |  | $ | (4,392 | ) |  | $ | (4,392 | ) |  | $ | (4,436 | ) |  | $ | (4,444 | )
During the nine months ended September 30, 2018, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):
|  | Properties |  |  | Apartment Units |  |  | Purchase Price |
Rental Properties – Consolidated (1) |  |  | 5 |  |  |  | 1,478 |  |  | $ | 707,005 |
Total |  |  | 5 |  |  |  | 1,478 |  |  | $ | 707,005 |
(1) | Purchase price includes an allocation of approximately $113.7 million to land and $594.4 million to depreciable property (inclusive of capitalized closing costs).
During the nine months ended September 30, 2018, the Company disposed of the following to unaffiliated parties (sales price in thousands):
|  | Properties |  |  | Apartment Units |  |  | Sales Price |
Rental Properties – Consolidated |  |  | 5 |  |  |  | 1,292 |  |  | $ | 706,120 |
Land Parcels (one) |  |  | — |  |  |  | — |  |  |  | 2,700 |
Total |  |  | 5 |  |  |  | 1,292 |  |  | $ | 708,820 |
The Company recognized a net gain on sales of real estate properties of approximately $256.8 million and a net gain on sales of land parcels of approximately $1.0 million on the above sales. Impairment During the nine months ended September 30, 2018, the Company recorded an approximate $0.7 million non-cash asset impairment charge on a property located in the San Francisco market due to physical property damage as a result of a fire at one of the buildings at the property.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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