| Intangible Assets on Real Estate Acquisitions |
Intangible Assets on Real Estate Acquisitions
Intangible assets on real estate acquisitions consisted of the following (in thousands):
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December 31, 2019 |
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December 31, 2018 |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net
Carrying Amount
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Gross Carrying Amount |
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Accumulated Amortization |
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Net
Carrying Amount
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In-place lease value |
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$ |
131,975 |
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$ |
120,894 |
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$ |
11,081 |
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$ |
132,276 |
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$ |
117,520 |
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$ |
14,756 |
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Tenant relationship value |
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59,131 |
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43,544 |
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15,587 |
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60,028 |
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39,703 |
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20,325 |
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Above-market leases |
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13,718 |
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13,318 |
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400 |
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13,841 |
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13,164 |
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677 |
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Below-market cost arrangements (1) |
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— |
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— |
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— |
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8,880 |
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1,507 |
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7,373 |
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Other |
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1,333 |
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1,009 |
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324 |
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1,333 |
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994 |
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339 |
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$ |
206,157 |
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$ |
178,765 |
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$ |
27,392 |
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$ |
216,358 |
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$ |
172,888 |
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$ |
43,470 |
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(1) |
These assets pertain to ground leases. Upon our adoption of lease accounting guidance effective January 1, 2019, the net carrying amount was reclassified to property operating lease right-of-use assets associated with these leases. |
Amortization of the intangible asset categories set forth above totaled $8.7 million in 2019, $15.6 million in 2018 and $19.3 million in 2017. The approximate weighted average amortization periods of the categories set forth above follow: in-place lease value: seven years; tenant relationship value: eight years; above-market leases: eight years; and other: 23 years. The approximate weighted average amortization period for all of the categories combined is eight 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: $5.2 million for 2020; $5.0 million for 2021; $3.5 million for 2022; $3.1 million for 2023; and $2.5 million for 2024.
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