Annual report pursuant to Section 13 and 15(d)

DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)

v3.22.4
DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2022
Other Assets [Abstract]  
Schedule of Deferred Charges and Other Assets
(dollars in thousands) December 31,
2022		 December 31,
2021
Deferred leasing costs $ 59,651  $ 88,265 
Deferred financing costs - revolving credit facility (a) 6,684  6,684 
  66,335  94,949 
Accumulated amortization (30,471) (40,956)
Deferred charges, net 35,864  53,993 
Notes receivable (b) 1,309  4,015 
In-place lease values, related intangibles and other assets, net (c)(d) 12,298  42,183 
Right of use assets (e) 2,896  22,298 
Prepaid expenses and other assets, net 43,795  28,858 
Total deferred charges and other assets, net (f) $ 96,162  $ 151,347 
(a)Deferred financing costs related to all other debt liabilities (other than for the revolving credit facility) are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.
(b)As of December 31, 2022 and 2021, includes an interest-free note receivable with a net present value of $0.2 million and $0.7 million, respectively, which matures in April 2023. The Company believes this balance is fully collectible. Also includes $1.0 million, net of a loan loss allowance of $26.0 thousand, as of December 31, 2022, and $3.1 million, net of a loan loss allowance of $0.2 million as of December 31, 2021, of seller-financing provided by the Company to the buyers of the Metropark portfolio. The receivable is secured against available cash of one of the Metropark properties disposed of and earned an annual return of four percent for 90 days after the disposition, with the interest rate increased to 15 percent through November 18, 2021 and to 10 percent thereafter, pursuant to an amended operating agreement. See Note 3: Transactions – Real Estate Held for Sale/Discontinued Operations/Dispositions.
(c)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases. The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $0.2 million, $2.7 million and $3.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table summarizes, as of December 31, 2022, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands):
Year Acquired Above-
Market Lease
Intangibles		 Acquired Below-
Market Lease
Intangibles		 Total
Amortization
2023 $ (219) $ 92  $ (127)
2024 (175) 84  (91)
2025 (162) 51  (111)
2026 (142) 41  (101)
2027 (123) 6  (117)
(d)The value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases. The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $1.5 million, $2.1 million and $9.1 million for the years ended December 31, 2022, 2021 and 2020,
respectively. The following table summarizes, as of December 31, 2022, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands):
Year
2023 $ 384
2024 305
2025 193
2026 156
2027 89
Total $ 1,127
(e)This amount has a corresponding liability of $3.2 million, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Ground Lease agreements for further details.
(f)The amount as of December 31, 2022 and 2021, includes $1.4 million and $0.5 million, respectively, for properties classified as held for sale.
Schedule of Scheduled Amortization The following table summarizes, as of December 31, 2022, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands):
Year Acquired Above-
Market Lease
Intangibles		 Acquired Below-
Market Lease
Intangibles		 Total
Amortization
2023 $ (219) $ 92  $ (127)
2024 (175) 84  (91)
2025 (162) 51  (111)
2026 (142) 41  (101)
2027 (123) 6  (117)
The following table summarizes, as of December 31, 2022, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands):
Year
2023 $ 384
2024 305
2025 193
2026 156
2027 89
Total $ 1,127
Schedule Of Fair Value Of The Derivative Financial Instruments
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2022 and 2021 (dollars in thousands):
  Fair Value  
Asset Derivatives designated
as hedging instruments		 December 31,
2022		 December 31,
2021		 Balance sheet location
Interest rate caps $ 9,808  $ 850  Deferred charges and other assets, net
Schedule of Cash Flow Hedging, Derivative Financial Instruments on the Income Statement
The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ending December 31, 2022, 2021 and 2020 (dollars in thousands):
Derivatives in Cash Flow Hedging Relationships
 Amount of Gain or (Loss) Recognized in OCI on Derivative
Location of Gain or (Loss) Reclassified
from Accumulated OCI into Income
 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
Location of Gain or (Loss)
Recognized in Income on Derivative
 Total Amount of Interest Expense presented in the consolidated statements of
operations
Year Ended December 31, 2022 2021 2020   2022 2021 2020   2022 2021 2020
Interest rate caps $ 5,032  $ 10  $ —  Interest expense $ 666  $ —  $ —    $ (78,040) $ (65,192) $ (80,991)
Interest rate swaps $ —  $ —  $ —  Interest expense $ —  $ —  $ 16  Interest and other investment income (loss) $ (78,040) $ (65,192) $ (80,991)