Intangible Assets, Liabilities, and Deferred Leasing Costs
The following table summarizes the Company's intangible assets, intangible liabilities, and deferred leasing costs:
| | | | | | | | | | | |
| As of December 31 |
| 2025 | | 2024 |
| Intangible assets: | | | |
| In-place leases | $ | 289,721 | | | $ | 216,175 | |
| Above-market leases | 16,970 | | | 16,053 | |
| Intangible assets | 306,691 | | | 232,228 | |
| Accumulated amortization: | | | |
| In-place leases | (104,186) | | | (87,104) | |
| Above-market leases | (8,542) | | | (7,704) | |
| Accumulated amortization | (112,728) | | | (94,808) | |
| Intangible assets, net | $ | 193,963 | | | $ | 137,420 | |
| | | |
| Intangible liabilities: | | | |
| Below-market leases | $ | 91,953 | | | $ | 65,776 | |
| Accumulated amortization | (23,478) | | | (22,879) | |
| Intangible liabilities, net | $ | 68,475 | | | $ | 42,897 | |
| | | |
| Deferred leasing costs: | | | |
| Leasing costs | $ | 26,410 | | | $ | 25,132 | |
| Accumulated amortization | (10,170) | | | (8,993) | |
| Deferred leasing costs, net | $ | 16,240 | | | $ | 16,139 | |
The following table summarizes the amortization related to intangible assets, intangible liabilities, and deferred leasing costs:
| | | | | | | | | | | | | | | | | |
| Year ended December 31 |
| 2025 | | 2024 | | 2023 |
| Intangible assets: | | | | | |
| In-place leases | $ | 36,655 | | | $ | 28,133 | | | $ | 32,179 | |
| Above-market leases | 2,309 | | | 2,452 | | | 2,977 | |
| Amortization of intangible assets | $ | 38,964 | | | $ | 30,585 | | | $ | 35,156 | |
| Intangible liabilities: | | | | | |
| Amortization of below-market leases | $ | 6,273 | | | $ | 4,879 | | | $ | 5,976 | |
| Deferred leasing costs: | | | | | |
| Amortization of deferred leasing costs | $ | 3,153 | | | $ | 3,213 | | | $ | 2,691 | |
The following table summarizes the amortization during the next five years and thereafter related to intangible assets, intangible liabilities, and deferred leasing costs as of December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ending December 31, | | In-place leases | | Above-market leases | | Below-market leases | | Deferred leasing costs |
| 2026 | | $ | 37,418 | | | $ | 2,080 | | | $ | 6,987 | | | $ | 2,628 | |
| 2027 | | 29,831 | | | 1,600 | | | 6,198 | | | 2,386 | |
| 2028 | | 24,941 | | | 1,236 | | | 5,705 | | | 2,109 | |
| 2029 | | 19,212 | | | 868 | | | 5,271 | | | 1,852 | |
| 2030 | | 15,375 | | | 737 | | | 5,082 | | | 1,583 | |
| Thereafter | | 58,758 | | | 1,907 | | | 39,232 | | | 5,682 | |
| Total | | $ | 185,535 | | | $ | 8,428 | | | $ | 68,475 | | | $ | 16,240 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.