Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
Deferred Costs and Other Assets Deferred costs and other assets include the following as of December 31:
2025 2024 Deferred lease costs, net................................. $ 128,943 $ 82,323 In-place lease intangibles, net ............................ 48,730 867 Acquired above market lease intangibles, net . . . . . . . . . . . . . . . 503 1,879 Marketable securities of our captive insurance companies .... 161,604 133,381 Goodwill............................................... 20,098 20,098 Other marketable and non-marketable securities ............ 362,782 498,974 Provisional fair value - TRG Acquisition, net (Note 4). . . . . . . . . 700,641 — Prepaids, notes receivable and other assets, net ............ 557,734 632,087 $ 1,981,035 $ 1,369,609 Deferred Lease Costs Our deferred leasing costs consist primarily of initial direct costs and, prior to the adoption of ASC 842, capitalized salaries and related benefits, in connection with lease originations. We record amortization of deferred leasing costs on a straight-line basis over the terms of the related leases. Details of these deferred costs as of December 31 are as follows: 2025 2024 Deferred lease costs ......................................... $ 252,764 $ 249,477 Accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (123,821) (167,154) Deferredleasecosts,net...................................... $ 128,943 $ 82,323 Amortization of deferred leasing costs is a component of depreciation and amortization expense. The accompanying consolidated statements of operations and comprehensive income include amortization of deferred leasing costs as follows: For the Year Ended December 31, 2025 2024 2023 Amortization of deferred leasing costs ............. $ 26,176 $ 29,154 $ 34,119 Intangibles (excluding Provisional fair value – TRG Acquisition) The average remaining life of in-place lease intangibles is approximately 2.3 years and is being amortized on a straight-line basis and is included with depreciation and amortization in the consolidated statements of operations and comprehensive income. The fair market value of above and below market leases is amortized into lease income over the remaining lease life as a component of reported lease income. The weighted average remaining life of these intangibles is approximately 2.4 years. The unamortized amount of below market leases is included in accounts payable, accrued expenses, intangibles and deferred revenues in the consolidated balance sheets and was $5.3 million and $7.5 million as of December 31, 2025 and 2024, respectively. The amount of amortization of above and below market leases, net, which increased lease income for the years ended December 31, 2025, 2024, and 2023, was $0.8 million, $0.1 million and $0.9 million, respectively. If a lease is terminated prior to the original lease termination, any remaining unamortized intangible is written off to earnings.
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