Intangible Assets and Liabilities

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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


	March 31, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Assets:
In-place leases	$	190,133	$	(48,667)	$	141,466	$	181,564	$	(45,210)	$	136,354
Above-market leases	21,635		(4,749)		16,886		21,661		(4,361)		17,300
Lease incentives	8,577		(1,422)		7,155		8,996		(1,296)		7,700
Total intangible assets	$	220,345	$	(54,838)	$	165,507	$	212,221	$	(50,867)	$	161,354

Liabilities:
Below-market leases	$	33,170	$	(8,531)	$	24,639	$	33,196	$	(7,843)	$	25,353

The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of March 31, 2024 and as of December 31, 2023 by category were as follows:


	Years Remaining
	March 31, 2024	December 31, 2023
In-place leases	8.9	8.8
Above-market leases	12.0	12.2
Below-market leases	10.7	10.9
Lease incentives	10.8	11.1

The Company records amortization of in-place lease 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 (loss) related to the amortization of intangible assets and liabilities for all property and ground leases (in thousands):


	Three Months Ended March 31,
	2024		2023
Amortization:
Amortization of in-place leases	$	4,875	$	4,670
Amortization of assembled workforce	—		—
	$	4,875	$	4,670

Net adjustment to rental revenue:
Above-market lease assets	(416)		(371)
Below-market lease liabilities	702		783
Lease incentives	(191)		(199)
	$	95	$	213

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 intangible assets and liabilities to rental revenue as of March 31, 2024, for the next five years and thereafter (in thousands):


	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
In-place leases	$	15,531	$	20,386	$	19,153	$	17,160	$	14,356	$	54,880	$	141,466

Above-market lease assets	(1,241)		(1,655)		(1,632)		(1,568)		(1,523)		(9,267)		(16,886)
Below-market lease liabilities	2,098		2,776		2,686		2,615		2,483		11,981		24,639
Lease incentives	(564)		(752)		(752)		(696)		(666)		(3,725)		(7,155)
Net adjustment to rental revenue	$	293	$	369	$	302	$	351	$	294	$	(1,011)	$	598