Quarterly report pursuant to Section 13 or 15(d)

Real Estate Investments and Related Intangibles (Tables)

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Real Estate Investments and Related Intangibles (Tables)
 3 Months Ended
Mar. 31, 2024
Real Estate [Abstract]  
Schedule of Finite-Lived Intangible Assets and Liabilities
Intangible lease assets and liabilities consisted of the following (in thousands, except weighted-average useful life):
Weighted-Average Useful Life (Years) March 31, 2024 December 31, 2023
Intangible lease assets:
In-place leases, net of accumulated amortization of $186,666 and $193,470, respectively
 6.8 $ 88,375  $ 103,997 
Leasing commissions, net of accumulated amortization of $3,451 and $3,033, respectively
 12.4 13,772  13,539 
Above-market lease assets, net of accumulated amortization of $11,111 and $10,372, respectively
 7.4 4,221  5,006 
Deferred lease incentives, net of accumulated amortization of $541 and $419, respectively
 10.5 3,777  3,822 
Total intangible lease assets, net $ 110,145  $ 126,364 
Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $23,026 and $23,176, respectively
 11.9 $ 6,753  $ 8,074 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible lease assets and liabilities for the next five years as of March 31, 2024 (in thousands):
Remainder of 2024 2025 2026 2027 2028 2029
In-place leases:
Total projected to be included in amortization expense $ 33,762  $ 21,627  $ 15,247  $ 7,337  $ 4,592  $ 1,872 
Leasing commissions:
Total projected to be included in amortization expense $ 1,151  $ 1,480  $ 1,476  $ 1,450  $ 1,306  $ 1,125 
Above-market lease assets:
Total projected to be deducted from rental revenue $ 2,176  $ 850  $ 682  $ 237  $ 115  $ 63 
Deferred lease incentives:
Total projected to be deducted from rental revenue $ 373  $ 480  $ 383  $ 359  $ 346  $ 335 
Below-market lease liabilities:
Total projected to be added to rental revenue $ 2,465  $ 1,036  $ 817  $ 655  $ 571  $ 389 
Schedule of Company's Investment in Unconsolidated Joint Venture
The following is a summary of the Company’s investment in the Arch Street Joint Venture, as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023 (dollars in thousands):
Ownership % (1)
Number of Properties Carrying Value of
Investment		 Equity in Loss, Net
Three Months Ended
Investment March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2024 March 31, 2023
Arch Street Joint Venture (2) (3)
20% 6 $ 12,972  13,549  $ (116) (123)
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(1)The Company’s ownership interest reflects its legal ownership interest. The Company’s legal ownership interest may, at times, not equal the Company’s economic interest because of various provisions in the joint venture agreement regarding capital contributions, distributions of cash flow based on capital account balances and allocations of profits and losses. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interest.
(2)During the three months ended March 31, 2024 and 2023, the Arch Street Joint Venture did not acquire any properties.
(3)The total carrying value of the Company’s investment in the Arch Street Joint Venture was greater than the underlying equity in net assets by $0.3 million and $0.4 million as of March 31, 2024 and December 31, 2023, respectively. This difference is related to a step up in the fair value of the investment in the Arch Street Joint Venture in connection with the Separation and the Distribution. The step up in fair value was allocated based on the underlying assets and liabilities of the Arch Street Joint Venture and is being amortized over the estimated useful lives of the respective assets and liabilities in accordance with the Company’s accounting policies.