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, 2014

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, 2014						December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
In-place lease value	$	123,759	$	101,040	$	22,719	$	125,504	$	93,885	$	31,619
Tenant relationship value	42,301		28,492		13,809		44,414		25,962		18,452
Below-market cost arrangements	12,415		5,984		6,431		12,416		5,136		7,280
Above-market leases	8,659		8,159		500		8,925		7,970		955
Market concentration premium	1,333		938		395		1,333		381		952
	$	188,467	$	144,613	$	43,854	$	192,592	$	133,334	$	59,258

Amortization of the intangible asset categories set forth above totaled $15.2 million in 2014, $16.2 million in 2013 and $21.4 million in 2012. 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: 31 years; above-market leases: two years; and market concentration premium: 28 years. The approximate weighted average amortization period for all of the categories combined is ten years. The estimated amortization expense associated with the intangible asset categories set forth above for the next five years is: $9.3 million for 2015; $8.4 million for 2016; $6.2 million for 2017; $3.8 million for 2018; and $3.4 million for 2019.