FINANCIAL RESULTS
Albanese Cormier Holdings, LLC and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024
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Summary of Significant Accounting Policies, continued The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount of the asset, an impairment loss is recognized. Long-lived assets and certain intangible assts to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No indicators of impairment were noted for the years ended December 31, 2025 and 2024. Amortization Costs of intangible assets, as well as certain costs associated with financing, refinancing and leasing, are capitalized and are amortized on a straight-line basis over the terms of the agreements. Amortization expense for the years ended December 31, 2025 and 2024 was Prior to December 31, 2016, the Company accounted for acquisitions of real estate as a business combination under ACS 805, Business. The Company early adopted ASU 2017- 01 in January 2017. Under ASU, the FASB further clarified the definition of a business which is fundamental in the determination of whether transactions should be accounted for as business combinations or asset acquisitions. As it applies to the Company’s acquisition of real estate, subsequent to the adoption of the ASU, these transactions would be classified as asset acquisitions. $866,065 and $840,210 respectively. Intangible Assets and Liabilities In accordance with ASC 805, prior to adopting, ASU 2017-01, the Company allocated the purchase price of real estate to land, building, building improvements, and if determined to be material, intangibles such as the value of the above and below market leases an other direct costs associated with the in-place leases based on the fair value of each component. Subsequent to adopting the ASU, the Company to allocate the purchase price of real estate to both the tangible and, if determine not be material, intangible components bases on relative fair value. Additionally, whereas acquisition costs were previously fully expensed, subsequent to the adoption of the ASU all acquisition related costs are capitalized. The value allocated to above and below market leases and the costs allocated to in-place leases and other intangibles are measured based upon management’s evaluation of the specific characteristics of the acquired lease portfolio and management’s overall relationship with the existing tenants. The value of the above and below market leases are amortized as a decrease and increase to rental income using the straight-line method over the remaining term of the related leases which includes an estimated probability of the lease renewal and its estimated term. The values associated with in-place leases and other intangible assets are amortized to expense using the straight-line method over the remaining term, which includes an estimated probability of the lease renewal and its estimated term.
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