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Deferred Costs, Acquired Lease Intangibles and Goodwill | 3 Months Ended
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Mar. 31, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Deferred Costs, Acquired Lease Intangibles and Goodwill | Deferred Costs, Acquired Lease Intangibles and Goodwill Deferred costs, net, consisted of the following:
(amounts in thousands) | March 31, 2026 |  | December 31, 2025
Deferred leasing costs | $ | 228,410 |  |  | $ | 227,722 |
Acquired in-place lease value, acquired deferred leasing costs and deferred acquisition costs | 184,780 |  |  | 190,570 |
Acquired above-market leases | 57,479 |  |  | 57,569 |
Total deferred costs, excluding deferred financing costs | 470,669 |  |  | 475,861 |
Less: accumulated amortization | (214,682) |  |  | (214,917) |
Total deferred costs, net, excluding net deferred financing costs | 255,987 |  |  | 260,944 |
Deferred financing costs, net, of accumulated amortization of $10,429 and $9,900, respectively (See Note 5) | 6,225 |  |  | 6,738 |
Total deferred costs, net | $ | 262,212 |  |  | $ | 267,682 |
Acquired below-market ground leases, net, consisted of the following:
(amounts in thousands) | March 31, 2026 |  | December 31, 2025
Acquired below-market ground leases | $ | 396,916 |  |  | $ | 396,916 |
Less: accumulated amortization | (93,295) |  |  | (91,337) |
Acquired below-market ground leases, net | $ | 303,621 |  |  | $ | 305,579 |
Acquired below-market leases, net, consisted of the following:
(amounts in thousands) | March 31, 2026 |  | December 31, 2025
Acquired below-market leases | $ | (63,802) |  |  | $ | (81,539) |
Less: accumulated amortization | 25,854 |  |  | 41,772 |
Acquired below-market leases, net | $ | (37,948) |  |  | $ | (39,767) |
The total amortization related to deferred costs and acquired lease intangibles consisted of the following:
| Three Months Ended March 31, |  |
(amounts in thousands) | 2026 |  | 2025 |  |  |  |
Rental revenue: |  |  |  |  |  |  |
Amortization of below-market leases, net of above-market leases | $ | 670 |  |  | $ | 798 |  |  |  |  |
Depreciation and amortization: |  |  |  |  |  |  |
Amortization of deferred leasing costs and acquired deferred leasing costs | 4,920 |  |  | 5,369 |  |  |  |  |
Amortization related to acquired in-place lease value | 2,399 |  |  | 1,408 |  |  |  |  |
As of March 31, 2026 and December 31, 2025, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the Observatory reportable segment and $264.0 million to the real estate reportable segment. We performed our annual goodwill testing in October 2025 for both the Real Estate and Observatory reportable segments. We bypassed the optional qualitative goodwill impairment assessment and proceeded directly to a quantitative assessment of the Observatory reportable segment and engaged a third-party valuation consulting firm to perform the valuation process. The quantitative analysis used a combination of the discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs and the guideline company method (a form of the market approach). Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples, EBITDA multiples and control premium rates. Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine whether impairment had occurred. The quantitative analysis performed concluded the fair value of the reporting unit exceeds its carrying value. Many of the factors employed in determining whether or not goodwill is impaired are outside of our control, and it is reasonably likely that assumptions and estimates will change in future periods.

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