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6. Intangible Assets on Real Estate Acquisitions
Intangible assets on real estate acquisitions consisted of the following (in thousands):
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September 30, 2011
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December 31, 2010
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Gross Carrying
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Accumulated
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Net Carrying
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Gross Carrying
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Accumulated
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Net Carrying
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Amount
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Amortization
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Amount
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Amount
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Amortization
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Amount
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In-place lease value
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$
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156,477
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$
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97,818
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$
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58,659
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$
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162,708
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$
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92,380
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$
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70,328
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Tenant relationship value
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48,556
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22,569
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25,987
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50,320
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21,603
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28,717
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Above-market cost arrangements
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12,415
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2,489
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9,926
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12,415
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1,387
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11,028
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Above-market leases
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10,909
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8,555
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2,354
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10,802
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8,193
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2,609
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Market concentration premium
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1,333
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305
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1,028
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1,333
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280
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1,053
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$
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229,690
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$
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131,736
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$
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97,954
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$
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237,578
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$
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123,843
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$
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113,735
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Amortization of the intangible asset categories set forth above totaled $20.7 million in the nine months ended September 30, 2011 and $18.8 million in the nine months ended September 30, 2010. 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 cost arrangements: 26 years; above-market leases: five years; and market concentration premium: 31 years. The approximate weighted average amortization period for all of the categories combined is ten years. Estimated amortization expense associated with the intangible asset categories set forth above for the next five years is: $5.7 million for the three months ending December 31, 2011; $18.5 million for 2012; $14.3 million for 2013; $12.0 million for 2014; $10.0 million for 2015; and $8.6 million for 2016.
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