Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Intangible Assets

v3.7.0.1
Real Estate and Intangible Assets
 3 Months Ended
Mar. 31, 2017
Real Estate [Abstract]  
Real Estate and Intangible Assets
Real Estate and Intangible Assets

Real Estate

The following table sets forth the components of our investments in real estate as of March 31, 2017 and December 31, 2016, respectively, excluding real estate held for sale as of March 31, 2017 and December 31, 2016, respectively (dollars in thousands):
 
 
 
March 31, 2017

December 31, 2016
Real estate:
 
 
 
 
Land
 
$
104,337

 
$
104,719

Building and improvements
 
663,262

 
662,661

Tenant improvements
 
54,322

 
54,369

Accumulated depreciation
 
(138,070
)
 
(131,661
)
Real estate, net
 
$
683,851

 
$
690,088


Real estate depreciation expense on building and tenant improvements was $6.4 million and $5.9 million for the three months ended March 31, 2017 and 2016, respectively.

Significant Real Estate Activity on Existing Assets

During the three months ended March 31, 2017 and 2016, we executed zero and one lease, respectively, which is aggregated below (dollars in thousands):
 
Three Months Ended
 
Aggregate Square Footage
 
Weighted Average Lease Term
 
Aggregate Annualized GAAP Rent
 
Aggregate Tenant Improvement
 
Aggregate Leasing Commissions
March 31, 2016
 
13,816

 
7.2 years
 
70

 
69

 
28


 
Intangible Assets

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2017 and December 31, 2016, excluding real estate held for sale as of March 31, 2017 and December 31, 2016, respectively (in thousands):

 
 
March 31, 2017

December 31, 2016
 
 
Lease Intangibles
 
Accumulated Amortization
 
Lease Intangibles
 
Accumulated Amortization
In-place leases
 
$
71,391

 
$
(29,782
)
 
$
71,482

 
$
(28,182
)
Leasing costs
 
48,162

 
(19,669
)
 
48,000

 
(18,599
)
Customer relationships
 
50,201

 
(18,228
)
 
50,252

 
(17,400
)
 
 
$
169,754

 
$
(67,679
)
 
$
169,734

 
$
(64,181
)
 
 
Deferred Rent Receivable/(Liability)
 
Accumulated (Amortization)/Accretion
 
Deferred Rent Receivable/(Liability)
 
Accumulated (Amortization)/Accretion
Above market leases
 
$
10,479

 
$
(7,420
)
 
$
10,479

 
$
(7,296
)
Below market leases and deferred revenue
 
(21,606
)
 
9,290

 
(21,606
)
 
8,959

 
 
$
(11,127
)
 
$
1,870

 
$
(11,127
)
 
$
1,663


Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.5 million and $3.3 million for the three months ended March 31, 2017 and 2016, respectively, and is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Total amortization related to above-market lease values was $0.1 million for both the three months ended March 31, 2017 and 2016, respectively, and is included in rental revenue in the condensed consolidated statement of operations. Total amortization related to below-market lease values was $0.3 million and $0.2 million for the three months ended March 31, 2017 and 2016, respectively, and is included in rental revenue in the condensed consolidated statement of operations.