Real Estate

9 Months Ended

Sep. 30, 2020

The Company’s components of Real estate, net consisted of the following:


	September 30, 2020		December 31, 2019
Land	$	1,754,708	$	1,767,029
Buildings and improvements:
Buildings and tenant improvements(1)	7,853,233		7,741,607
Lease intangibles(2)	579,361		614,964
	10,187,302		10,123,600
Accumulated depreciation and amortization(3)	(2,623,144)		(2,481,250)
Total	$	7,564,158	$	7,642,350

(1)As of September 30, 2020 and December 31, 2019, Buildings and tenant improvements included accrued amounts, net of anticipated insurance proceeds, of $32.2 million and $46.9 million, respectively.

(2)As of September 30, 2020 and December 31, 2019, Lease intangibles consisted of $521.7 million and $554.9 million, respectively, of in-place leases and $57.7 million and $60.1 million, respectively, of above-market leases. These intangible assets are amortized over the term of each related lease.

(3)As of September 30, 2020 and December 31, 2019, Accumulated depreciation and amortization included $515.6 million and $533.1 million, respectively, of accumulated amortization related to Lease intangibles.

In addition, as of September 30, 2020 and December 31, 2019, the Company had intangible liabilities relating to below-market leases of $354.6 million and $372.1 million, respectively, and accumulated accretion of $263.7 million and $267.1 million, respectively. These intangible liabilities are included in Accounts payable, accrued expenses and other liabilities on the Company’s unaudited Condensed Consolidated Balance Sheets. These intangible assets are accreted over the term of each related lease.

Below-market lease accretion income, net of above-market lease amortization for the three months ended September 30, 2020 and 2019 was $4.1 million and $4.5 million, respectively. Below-market lease accretion income, net of above-market lease amortization for the nine months ended September 30, 2020 and 2019 was $12.4 million and $14.1 million, respectively. These amounts are included in Rental income on the Company’s unaudited Condensed Consolidated Statements of Operations. Amortization expense associated with in-place lease value for the three months ended September 30, 2020 and 2019 was $4.5 million and $6.7 million, respectively. Amortization expense associated with in-place lease value for the nine months ended September 30, 2020 and 2019 was $14.8 million and

$19.5 million, respectively. These amounts are included in Depreciation and amortization on the Company’s unaudited Condensed Consolidated Statements of Operations. The Company’s estimated below-market lease accretion income, net of above-market lease amortization expense, and in-place lease amortization expense for the next five years are as follows:


Year ending December 31,	Below-market lease accretion (income), net of above-market lease amortization expense		In-place lease amortization expense
2020 (remaining three months)	$	(3,144)	$	3,946
2021	(11,290)		12,870
2022	(9,337)		9,003
2023	(8,114)		6,554
2024	(7,601)		4,887