Deferred Leasing Costs and Other Intangibles

6 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Leasing Costs and Other Intangibles

The Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at June 30, 2025 and December 31, 2024 are as follows (dollars in thousands):


	June 30, 2025
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	66,782	$	(44,131)	$	22,651
Deferred leasing costs	28,166		(17,051)		11,115
Above-market lease values	11,587		(9,899)		1,688
	$	106,535	$	(71,081)	$	35,454
Intangible Liabilities
Below-market lease values	$	16,797	$	(14,610)	$	2,187


	December 31, 2024
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	82,530	$	(49,495)	$	33,035
Deferred leasing costs	32,864		(21,021)		11,843
Above-market lease values	11,587		(9,293)		2,294
	$	126,981	$	(79,809)	$	47,172
Intangible Liabilities
Below-market lease values	$	16,798	$	(13,993)	$	2,805

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the six months ended June 30, 2025 and 2024 (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Above-market lease values	$	(297)	$	(466)	$	(679)	$	(940)
Below-market lease values	296		323		619		684
Net decrease to property operating income	$	(1)	$	(143)	$	(60)	$	(256)

In-place lease values	$	2,558	$	1,682	$	5,398	$	4,410
Deferred leasing costs	610		685		1,236		1,379

Amortization expense	$	3,168	$	2,367	$	6,634	$	5,789

The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities, for each of the next five years and thereafter as of June 30, 2025 (dollars in thousands):



	Remainder of 2025		2026		2027		2028		2029		2030 and thereafter		Total
Above-market lease values	$	(582)	$	(584)	$	(127)	$	(88)	$	(86)	$	(221)	$	(1,688)
Below-market lease values	903		848		81		81		81		193		2,187
Net increase (decrease) to property operating income	$	321	$	264	$	(46)	$	(7)	$	(5)	$	(28)	$	499

In-place lease values	$	2,200	$	2,302	$	1,755	$	1,646	$	1,634	$	13,114	$	22,651
Deferred leasing costs	1,306		1,940		1,733		1,518		1,203		3,415		11,115
Amortization expense	$	3,506	$	4,242	$	3,488	$	3,164	$	2,837	$	16,529	$	33,766

BrightSpire Capital, Inc. 10-Q