COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets on Real Estate Acquisitions

Intangible Assets on Real Estate Acquisitions

12 Months Ended

Dec. 31, 2017

Intangible Assets on Real Estate Acquisitions

Intangible Assets on Real Estate Acquisitions

Intangible assets on real estate acquisitions consisted of the following (in thousands):



	December 31, 2017						December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
In-place lease value	$	132,276	$	110,814	$	21,462	$	132,647	$	99,940	$	32,707
Tenant relationship value	60,028		32,198		27,830		60,028		26,253		33,775
Below-market cost arrangements	15,102		7,507		7,595		15,102		7,285		7,817
Above-market leases	13,944		12,092		1,852		13,944		10,259		3,685
Other	1,333		980		353		1,333		966		367
	$	222,683	$	163,591	$	59,092	$	223,054	$	144,703	$	78,351

Amortization of the intangible asset categories set forth above totaled $19.3 million in 2017, $20.0 million in 2016 and $18.5 million in 2015. The approximate weighted average amortization periods of the categories set forth above follow: in-place lease value: six years; tenant relationship value: eight years; below-market cost arrangements: 34 years; above-market leases: three years; and other: 25 years. The approximate weighted average amortization period for all of the categories combined is 11 years. The estimated amortization (to amortization associated with real estate operations, rental revenue and property operating expenses) associated with the intangible asset categories set forth above for the next five years is: $14.5 million for 2018; $8.1 million for 2019; $5.7 million for 2020; $5.5 million for 2021; and $4.1 million for 2022.