| Amortization related to the acquired lease intangible assets and liabilities |
The following table presents the amortization during the next five years and thereafter related to the lease intangible assets and liabilities for properties owned as of September 30, 2024, excluding the two Retail Properties classified as held for sale:
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Period from October 1 to December 31, 2024 |
|
2025 |
|
2026 |
|
2027 |
|
2028 |
|
Thereafter |
|
Total |
| Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Above market lease intangibles (a) |
$ |
1,876 |
|
|
$ |
7,507 |
|
|
$ |
7,507 |
|
|
$ |
7,507 |
|
|
$ |
7,507 |
|
|
$ |
90,078 |
|
|
$ |
121,982 |
|
| In-place lease intangibles (a) |
1,128 |
|
|
4,511 |
|
|
4,511 |
|
|
4,511 |
|
|
4,511 |
|
|
54,130 |
|
|
73,302 |
|
| Lease intangible assets, net (b) |
$ |
3,004 |
|
|
$ |
12,018 |
|
|
$ |
12,018 |
|
|
$ |
12,018 |
|
|
$ |
12,018 |
|
|
$ |
144,208 |
|
|
$ |
195,284 |
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|
|
|
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|
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|
|
|
|
|
|
|
|
| Below market lease intangibles (a) |
$ |
1,214 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
58,254 |
|
|
$ |
78,884 |
|
| Lease intangible liabilities, net (b) |
$ |
1,214 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
4,854 |
|
|
$ |
58,254 |
|
|
$ |
78,884 |
|
(a)Represents the portion of the leases in which the Trust is the lessor. The amortization of above market lease intangibles is recorded as a reduction to lease income, and the amortization of below market lease intangibles is recorded as an increase to lease income. The amortization of in-place lease intangibles is recorded to depreciation and amortization expense.
(b)As of September 30, 2024, lease intangible assets, net and lease intangible liabilities, net are presented net of $44,443 and $18,953 of accumulated amortization, respectively. As of December 31, 2023, lease intangible assets, net and lease intangible liabilities, net are presented net of $36,373 and $15,969 of accumulated amortization, respectively.
|
| Amortization expense |
Amortization for the three and nine months ended September 30, 2024 and 2023 were as follows:
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Amortization of: |
|
|
|
|
|
|
|
|
| In-place lease intangibles |
|
$ |
1,148 |
|
|
$ |
1,204 |
|
|
$ |
3,510 |
|
|
$ |
3,627 |
|
| Above market lease intangibles |
|
$ |
1,881 |
|
|
$ |
1,933 |
|
|
$ |
5,679 |
|
|
$ |
5,847 |
|
| Below market lease intangibles |
|
$ |
1,264 |
|
|
$ |
1,387 |
|
|
$ |
3,919 |
|
|
$ |
4,180 |
|
|
| Dispositions |
The following table summarizes the disposition activity for the nine months ended September 30, 2024:
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| Sale Date |
|
Location |
|
Property Type |
|
Ownership |
|
Square Footage |
|
Gross Sales Proceeds |
|
Aggregate Proceeds, Net |
|
Gain (Loss) |
| 3/15/24 |
|
Transnational Portfolio (1) |
|
Retail |
|
Fee Simple |
|
302 |
|
|
$ |
16,459 |
|
|
$ |
16,096 |
|
|
$ |
1,497 |
|
| 6/10/24 |
|
Roseville, CA |
|
Retail |
|
Fee Simple |
|
167 |
|
|
13,364 |
|
|
13,113 |
|
|
1,026 |
|
| 9/30/24 |
|
Miami, FL |
|
Retail |
|
Fee Simple |
|
150 |
|
|
12,249 |
|
|
12,107 |
|
|
1,869 |
|
|
|
|
|
|
|
|
|
619 |
|
|
$ |
42,072 |
|
|
41,316 |
|
|
$ |
4,392 |
|
(1) Portfolio comprised of three Retail Properties located in Newnan, Georgia; Aurora, Colorado; Kissimmee, Florida.
The following table summarizes the disposition activity during the nine months ended September 30, 2023:
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| Sale Date |
|
Location |
|
Property Type |
|
Ownership |
|
Square Footage |
|
Gross Sales Proceeds |
|
Aggregate Proceeds, Net |
|
Gain (Loss) |
|
| 3/22/23 |
|
Temecula, CA |
|
Retail |
|
Fee Simple |
|
125 |
|
|
$ |
6,000 |
|
|
$ |
5,869 |
|
|
$ |
(496) |
|
|
| 8/9/23 |
|
Katy, TX |
|
Retail |
|
Fee Simple |
|
100 |
|
|
11,282 |
|
|
11,029 |
|
|
2,687 |
|
|
|
|
|
|
|
|
|
|
225
|
|
|
$ |
17,282
|
|
|
16,898
|
|
|
$ |
2,191
|
|
|
The following Retail Properties were classified as held for sale as of September 30, 2024:
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| Location |
|
Carrying Value |
|
Date of Sale |
|
Gross Sales Price |
| Cherry Hill, NJ |
|
$ |
4,627 |
|
(1) |
October 25, 2024 |
|
$ |
4,804 |
|
| Lynnwood, WA |
|
$ |
11,934 |
|
|
October 25, 2024 |
|
$ |
12,894 |
|
(1) Prior to disposition, this Property was remeasured to fair value and a provision for impairment of $2,081 was recognized.
Real estate held for sale consisted of the following at September 30, 2024:
|
|
|
|
|
|
|
|
| Land and improvements |
$ |
9,750 |
|
| Building and other improvements |
11,488 |
|
| Less: accumulated depreciation |
(1,437) |
|
| Net investment properties |
19,801 |
|
| Accounts receivable |
382 |
|
| Lease intangible assets, net |
1,731 |
|
|
|
| Other assets |
66 |
|
| Assets associated with investment properties held for sale |
$ |
21,980 |
|
|
|
| Accounts payable and accrued expenses |
$ |
31 |
|
| Lease intangible liabilities, net |
5,276 |
|
| Other liabilities |
112 |
|
| Liabilities associated with investment properties held for sale |
$ |
5,419 |
|
|