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, 2013

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, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
In-place lease value	$	125,504	$	93,885	$	31,619	$	134,964	$	93,362	$	41,602
Tenant relationship value	44,414		25,962		18,452		46,828		23,346		23,482
Below-market cost arrangements	12,416		5,136		7,280		12,416		4,100		8,316
Above-market leases	8,925		7,970		955		8,925		7,432		1,493
Market concentration premium	1,333		381		952		1,333		347		986
	$	192,592	$	133,334	$	59,258	$	204,466	$	128,587	$	75,879

Amortization of the intangible asset categories set forth above totaled: $16.2 million in 2013; $21.4 million in 2012; and $28.3 million in 2011. The approximate weighted average amortization periods of the categories set forth above follow: in-place lease value: six years; tenant relationship value: seven years; below-market cost arrangements: 29 years; above-market leases: three years; and market concentration premium: 29 years. The approximate weighted average amortization period for all of the categories combined is 10 years. Estimated amortization expense associated with the intangible asset categories set forth above for the next five years is: $12.2 million for 2014; $9.9 million for 2015; $8.9 million for 2016; $6.7 million for 2017; and $4.2 million for 2018.