Other Assets and Other Liabilities

3 Months Ended

Mar. 31, 2020

Other Assets and Other Liabilities [Abstract]

Deferred expenses and other assets, net, consist of the following items ($ in thousands):



	As of
	March 31, 2020		December 31, 2019
Intangible assets, net⁽¹⁾	$	164,853	$	174,973
Restricted cash	46,609		45,034
Finance lease right-of-use assets⁽²⁾	144,839		145,209
Operating lease right-of-use assets⁽²⁾	52,295		34,063
Other assets⁽³⁾	17,315		17,534
Other receivables	18,895		16,846
Leasing costs, net⁽⁴⁾	3,130		3,793
Corporate furniture, fixtures and equipment, net⁽⁵⁾	2,467		2,736
Deferred financing fees, net	2,130		2,300
Deferred expenses and other assets, net	$	452,533	$	442,488

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(1)

Intangible assets, net includes above market and in-place lease assets and lease incentives related to the acquisition of real estate assets. Accumulated amortization on intangible assets, net was $36.3 million and $33.4 million as of March 31, 2020 and December 31, 2019, respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.4 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $2.7 million and $2.2 million for the three months ended March 31, 2020 and 2019, respectively. These amounts are included in "Depreciation and amortization" in the Company's consolidated statements of operations. As of March 31, 2020, the weighted average amortization period for the Company's intangible assets was approximately 17.3 years.

(2)

Right-of-use lease assets relate primarily to the Company's leases of office space and certain of its ground leases. Right-of use lease assets initially equal the lease liability. The lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company's incremental secured borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company's weighted average incremental secured borrowing rate for similar collateral estimated to be 5.1% and the weighted average lease term is 7.5 years. For finance leases, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average lease term is 97.7 years. Right-of-use assets for finance leases are amortized on a straight-line basis over the term of the lease and are recorded in "Depreciation and amortization" in the Company's consolidated statements of operations. During the three months ended March 31, 2020 and 2019, the Company recognized $2.0 million and $0.4 million, respectively, in "Interest expense" and $0.4 million and $0.1 million, respectively, in "Depreciation and amortization" in its consolidated statement of operations relating to finance leases. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in "General and administrative" and "Real estate expense" in the Company's consolidated statements of operations (refer to Note 3). During the three months ended March 31, 2020 and 2019, the Company recognized $1.0 million and $0.9 million, respectively, in "General and administrative" and $0.8 million and $1.1 million, respectively, in "Real estate expense" in its consolidated statement of operations relating to operating leases.


(3)	Other assets primarily includes prepaid expenses and deposits for certain real estate assets.


(4)	Accumulated amortization of leasing costs was $2.2 million and $3.3 million as of March 31, 2020 and December 31, 2019, respectively.


(5)	Accumulated depreciation on corporate furniture, fixtures and equipment was $13.4 million and $13.1 million as of March 31, 2020 and December 31, 2019, respectively.

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):



	As of
	March 31, 2020		December 31, 2019
Other liabilities⁽¹⁾	$	83,833	81,709
Accrued expenses	76,283		83,778
Finance lease liabilities (see table above)	148,439		147,749
Intangible liabilities, net⁽²⁾	50,606		51,223
Operating lease liabilities (see table above)	52,456		34,182
Accrued interest payable	29,707		25,733
Accounts payable, accrued expenses and other liabilities	$	441,324	$	424,374

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(1)

As of March 31, 2020 and December 31, 2019, other liabilities includes $26.6 million and $27.5 million, respectively, of deferred income. As of March 31, 2020 and December 31, 2019, other liabilities includes $20.7 million and $8.7 million, respectively, of derivative liabilities. As of March 31, 2020, other liabilities includes $2.6 million of expected credit losses for unfunded loan commitments.

(2)

Intangible liabilities, net includes below market lease liabilities related to the acquisition of real estate assets. Accumulated amortization on below market lease liabilities was $5.6 million and $5.0 million as of March 31, 2020 and December 31, 2019, respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.6 million and $0.5 million for the three months ended March 31, 2020 and 2019, respectively.