Goodwill, Deferred Leasing Costs and Other Intangibles

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Deferred Leasing Costs and Other Intangibles

6. Goodwill, Deferred Leasing Costs and Other Intangibles

Goodwill

The following table presents changes in goodwill by reportable segment.


	Six Months Ended June 30,
	2023						2022
(In thousands)	Investment Management (1)		Operating		Total		Investment Management (1)		Operating		Total
Beginning balance	$	298,248	$	463,120	$	761,368	$	298,248	$	463,120	$	761,368
Business combination (Note 3)	161,744		—		161,744		—		—		—


Ending balance	$	459,992	$	463,120	$	923,112	$	298,248	$	463,120	$	761,368

__________

(1) Remaining goodwill deductible for income tax purposes was $117.1 million at June 30, 2023 and $122.4 million at December 31, 2022.

Deferred Leasing Costs, Other Intangible Assets and Intangible Liabilities

Deferred leasing costs and identifiable intangible assets and liabilities are as follows, excluding those related to assets and liabilities held for disposition.


	June 30, 2023						December 31, 2022
(In thousands)	Carrying Amount (1)(2)		Accumulated Amortization(1)(2)		Net Carrying Amount(1)		Carrying Amount (1)		Accumulated Amortization(1)		Net Carrying Amount(1)
Deferred Leasing Costs and Intangible Assets
Investment management intangibles (3)	$	204,121	$	(86,693)	$	117,428	$	164,189	$	(82,432)	$	81,757
Deferred leasing costs and lease-related intangible assets (4)	1,009,528		(231,422)		778,106		1,239,477		(397,975)		841,502
Customer relationships and service contracts (5)	239,538		(92,637)		146,901		218,154		(62,788)		155,366
Trade names	26,400		(17,852)		8,548		26,400		(15,656)		10,744
Other (6)	6,818		(4,979)		1,839		6,818		(4,020)		2,798
Total deferred leasing costs and intangible assets	$	1,486,405	$	(433,583)	$	1,052,822	$	1,655,038	$	(562,871)	$	1,092,167
Intangible Liabilities
Lease intangible liabilities (4)	$	42,544	$	(14,097)	$	28,447	$	46,636	$	(16,812)	$	29,824

__________

(1) Presented net of impairments and write-offs, if any.

(2) Exclude intangible assets and liabilities that were fully amortized in prior years.

(3) Composed of investment management contracts and investor relationships.

(4) Lease intangible assets are composed of in-place leases, above-market leases and tenant relationships. Lease-intangible liabilities are composed of below-market leases.

(5) In connection with data center services provided in the colocation data center business.

(6) Represents primarily the value of an acquired domain name and assembled workforce in an asset acquisition.

Amortization of Intangible Assets and Liabilities

The following table summarizes amortization of deferred leasing costs and finite-lived intangible assets and intangible liabilities:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022



Net increase (decrease) to rental income (1)	$	(135)	$	306	$	74	$	175



Amortization expense
Investment management intangibles	$	10,721	$	5,055	$	16,811	$	10,110
Deferred leasing costs and lease-related intangibles	34,525		50,400		67,368		84,107
Customer relationships and service contracts	4,212		5,886		8,461		10,800
Trade name	1,098		1,098		2,196		2,196
Other	480		477		960		954
	$	51,036	$	62,916	$	95,796	$	108,167

__________

(1) Represents the net effect of amortizing above- and below-market leases.

The following table presents the future amortization of deferred leasing costs and finite-lived intangible assets and intangible liabilities, excluding those related to assets and liabilities held for disposition.


	Year Ending December 31,
(In thousands)	Remaining 2023		2024		2025		2026		2027		2028 and thereafter		Total



Net increase (decrease) to rental income	$	239	$	(1,200)	$	(1,426)	$	(1,349)	$	(982)	$	1,224	$	(3,494)







Amortization expense	78,544		139,296		121,901		108,053		95,665		477,422		1,020,881