Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets on Real Estate Acquisitions

v2.3.0.15
Intangible Assets on Real Estate Acquisitions
9 Months Ended
Sep. 30, 2011
Intangible Assets on Real Estate Acquisitions.  
Intangible Assets on Real Estate Acquisitions

6.             Intangible Assets on Real Estate Acquisitions

 

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

 

 

 

September 30, 2011

 

December 31, 2010

 

 

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

 

 

Amount

 

Amortization

 

Amount

 

Amount

 

Amortization

 

Amount

 

In-place lease value

 

$

156,477

 

$

97,818

 

$

58,659

 

$

162,708

 

$

92,380

 

$

70,328

 

Tenant relationship value

 

48,556

 

22,569

 

25,987

 

50,320

 

21,603

 

28,717

 

Above-market cost arrangements

 

12,415

 

2,489

 

9,926

 

12,415

 

1,387

 

11,028

 

Above-market leases

 

10,909

 

8,555

 

2,354

 

10,802

 

8,193

 

2,609

 

Market concentration premium

 

1,333

 

305

 

1,028

 

1,333

 

280

 

1,053

 

 

 

$

229,690

 

$

131,736

 

$

97,954

 

$

237,578

 

$

123,843

 

$

113,735

 

 

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.