Intangible Assets and Liabilities

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and liabilities consisted of the following (in thousands):


	June 30, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Assets:
In-place leases	$	168,425	$	(36,499)	$	131,926	$	154,876	$	(28,472)	$	126,404
Above-market leases	21,508		(3,601)		17,907		20,091		(2,892)		17,199
Assembled workforce	873		(873)		—		873		(873)		—
Lease incentives	9,244		(1,010)		8,234		8,021		(618)		7,403
Total intangible assets	$	200,050	$	(41,983)	$	158,067	$	183,861	$	(32,855)	$	151,006

Liabilities:
Below-market leases	$	34,027	$	(6,593)	$	27,434	$	35,596	$	(5,465)	$	30,131

The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of June 30, 2023 and as of December 31, 2022 by category were as follows:


	Years Remaining
	June 30, 2023	December 31, 2022
In-place leases	9.2	9.4
Above-market leases	12.8	13.0
Below-market leases	11.4	11.6
Lease incentives	11.4	11.8

The Company records amortization of in-place lease assets and assembled workforce intangible assets to amortization expense, and records net amortization of above-market and below-market lease intangibles as well as amortization of lease incentives to rental revenue. The following amounts in the accompanying condensed consolidated statements of operations and comprehensive income related to the amortization of intangible assets and liabilities for all property and ground leases (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amortization:
Amortization of in-place leases	$	4,809	$	3,734	$	9,479	$	7,288
Amortization of assembled workforce	—		73		—		147
	$	4,809	$	3,807	$	9,479	$	7,435

Net adjustment to rental revenue:
Above-market lease assets	(391)		(333)		(762)		(660)
Below-market lease liabilities	768		627		1,551		1,237
Lease incentives	(193)		(128)		(392)		(246)
	$	184	$	166	$	397	$	331

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangibles to rental revenue as of June 30, 2023, for the next five years and thereafter (in thousands):


	Remainder of 2023		2024		2025		2026		2027		Thereafter		Total
In-place leases	$	9,094	$	18,035	$	17,462	$	16,233	$	13,942	$	57,160	$	131,926



Above-market lease assets	$	(785)	$	(1,565)	$	(1,564)	$	(1,563)	$	(1,535)	$	(10,895)	$	(17,907)
Below-market lease liabilities	1,434		2,857		2,835		2,743		2,671		14,894		27,434
Lease incentives	(396)		(793)		(793)		(793)		(743)		(4,716)		(8,234)
Net adjustment to rental revenue	$	253	$	499	$	478	$	387	$	393	$	(717)	$	1,293