Alpine Income Property Trust, Inc. - 10-Q filing on 2022-07-21

INTANGIBLE ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of components of intangible lease assets and liabilities

Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):


	As of
	June 30, 2022		December 31, 2021
Intangible Lease Assets:
Value of In-Place Leases	$	48,035	$	45,301
Value of Above Market In-Place Leases		4,022		3,623
Value of Intangible Leasing Costs		20,450		19,066
Sub-total Intangible Lease Assets		72,507		67,990
Accumulated Amortization		(11,136)		(9,169)
Sub-total Intangible Lease Assets—Net		61,371		58,821
Intangible Lease Liabilities:
Value of Below Market In-Place Leases		(6,063)		(6,397)
Sub-total Intangible Lease Liabilities		(6,063)		(6,397)
Accumulated Amortization		886		921
Sub-total Intangible Lease Liabilities—Net		(5,177)		(5,476)
Total Intangible Assets and Liabilities—Net	$	56,194	$	53,345

Schedule of amortization of intangible assets and liabilities

The following table reflects the net amortization of intangible assets and liabilities during the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Amortization Expense	$	2,165	$	1,303	$	4,291	$	2,498
Accretion to Properties Revenue		(69)		(50)		(170)		(91)
Net Amortization of Intangible Assets and Liabilities	$	2,096	$	1,253	$	4,121	$	2,407

Schedule of estimated future amortization expense (income) related to net intangible assets and liabilities

The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands):


Year Ending December 31,	Future Amortization Expense		Future Accretion to Property Revenue		Net Future Amortization of Intangible Assets and Liabilities
Remainder of 2022	$	4,324	$	(143)	$	4,181
2023		8,420		(292)		8,128
2024		8,054		(284)		7,770
2025		7,392		(248)		7,144
2026		6,913		(237)		6,676
2027		5,618		(196)		5,422
2028 and Thereafter		17,134		(261)		16,873
Total	$	57,855	$	(1,661)	$	56,194