false000150021700015002172023-10-242023-10-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
October 24, 2023
_________________________
aat2019q3a17.jpg
American Assets Trust, Inc.
(Exact name of registrant as specified in its charter)
_________________________
Maryland
001-35030
27-3338708
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

3420 Carmel Mountain Road, Suite 100
San Diego, California 92121
(Address of principal executive offices and Zip Code)

(858) 350-2600
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report.)

_________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Name of RegistrantTitle of each classTrading SymbolName of each exchange on which registered
American Assets Trust, Inc.Common Stock, par value $0.01 per shareAATNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02    Results of Operations and Financial Condition.

On October 24, 2023, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending September 30, 2023. Also on October 24, 2023, the Company made available on the "Investors" page of its website at www.americanassetstrust.com certain supplemental information concerning the Company’s financial results and operations for the quarter ending September 30, 2023. Copies of the press release and supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively.

Exhibits 99.1 and 99.2, are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 7.01    Regulation FD Disclosure.

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the quarter ending September 30, 2023 and made available on its website certain supplemental information relating thereto.

The information being furnished pursuant to Item 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits:
The following exhibits are filed herewith:
Exhibit Number
Exhibit Description
99.1**
99.2**
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).
_____________________
** Furnished herewith

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
American Assets Trust, Inc.
By:
/s/ Robert F. Barton
Robert F. Barton
Executive Vice President, CFO
October 24, 2023

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American Assets Trust, Inc. Reports Third Quarter 2023 Financial Results

Net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively, or $0.20 and $0.66 per diluted share, respectively.
Funds from Operations ("FFO") per diluted share decreased 6% and increased 3% year-over-year for the three and nine months ended September 30, 2023, respectively, or $0.59 and $1.84 per diluted share, respectively.
Increased 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over prior guidance.

SAN DIEGO, California - 10/24/2023 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its third quarter ended September 30, 2023.

Third Quarter Highlights
Net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively, or $0.20 and $0.66 per diluted share, respectively.
FFO decreased 6% and increased 3% year-over-year to $0.59 and $1.84 per diluted share for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022.
Same-store cash Net Operating Income ("NOI") increased 1.8% and 5.2% year-over-year for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022.
Increased 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over the prior 2023 guidance midpoint of $2.32.
Leased approximately 63,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 14% and 7%, respectively, during the third quarter.
Leased approximately 132,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 19% and 8%, respectively, during the third quarter.

Financial Results
(Unaudited, amounts in thousands, except per share data)Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Net income attributable to American Assets Trust, Inc. stockholders$11,778 $12,772 $39,897 $33,877 
Basic and diluted income attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
FFO attributable to common stock and common units$44,817 $47,945 $140,231 $136,240 
FFO per diluted share and unit$0.59 $0.63 $1.84 $1.79 
Net income attributable to common stockholders increased $6.0 million for the nine months ended September 30, 2023 compared to the same period in 2022, primarily due to (i) a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at our Hassalo on Eighth property, (ii) a $3.4 million net increase in our retail segment due to new tenant leases, (iii) a $2.2 million net increase in our office segment due to higher
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annualized base rents and (iv) a $2.1 million net increase at Waikiki Beach Walk - Embassy Suites due to increased tourism into Hawaii. These increases were offset by higher interest expense of $4.8 million on the $225 million Amended and Restated Term Loan Agreement and higher general and administrative expenses of $3.4 million due to an increase in stock-based compensation expense, general legal expenses and employee-related costs in 2023.

FFO decreased $3.1 million for the three months ended September 30, 2023 compared to the same period in 2022, primarily due to a decrease in our office segment related to prior year accelerated revenue recognition of tenant improvement overages, as well as higher interest expense and general and administrative expenses as described above.

FFO is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release.

Leasing
The portfolio leased status as of the end of the indicated quarter was as follows:
September 30, 2023June 30, 2023September 30, 2022
Total Portfolio
Office 86.8%87.4%90.7%
Retail94.4%94.6%92.2%
Multifamily89.5%85.9%93.0%
Mixed-Use:
Retail95.1%94.6%94.9%
Hotel85.3%83.2%78.6%
Same-Store Portfolio
Office (1)
89.7%90.3%93.1%
Retail94.4%94.6%92.2%
Multifamily89.5%85.9%93.0%
Mixed-Use:
Retail95.1%94.6%94.9%
Hotel85.3%83.2%78.6%
(1) Same-store office leased percentages include Bel-Spring 520 which was acquired on March 8, 2022. Same-store office leased percentages exclude (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.

During the third quarter of 2023, the company signed 38 leases for approximately 222,600 square feet of office and retail space, as well as 709 multifamily apartment leases. Renewals accounted for 71% of the comparable office leases, 100% of the comparable retail leases, and 44% of the residential leases.

Office and Retail
On a comparable space basis (i.e. leases for which there was a former tenant) during the third quarter of 2023 and trailing four quarters ended September 30, 2023, our retail and office leasing spreads are shown below:
Number of Leases SignedComparable Leased Sq. Ft.Average Cash Basis % Change Over Prior Rent Average Cash Contractual Rent Per Sq. Ft.Prior Average Cash Contractual Rent Per Sq. Ft.Straight-Line Basis % Change Over Prior Rent
OfficeQ3 2023763,0007.0%$59.45$55.5713.5%
Last 4 Quarters40316,0003.4%$65.35$63.2112.1%
RetailQ3 202325132,0008.2%$33.70$30.6518.7%
Last 4 Quarters77363,0008.4%$34.65$31.7815.2%


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Multifamily
The average monthly base rent per leased unit for our multifamily properties for the third quarter of 2023 was $2,572 compared to an average monthly base rent per leased unit of $2,372 for the third quarter of 2022, which is an increase of approximately 8.4%.

Same-Store Cash Net Operating Income
For the three and nine months ended September 30, 2023, same-store cash NOI increased 1.8% and 5.2%, respectively, compared to the three and nine months ended September 30, 2022. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Nine Months Ended (2)
September 30,September 30,
20232022Change20232022Change
Cash Basis:
Office$35,451 $35,449 — %$103,375 $99,625 3.8 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI$68,812 $67,563 1.8 %$201,400 $191,457 5.2 %
(1)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.
(2)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Bel-Spring 520 which was acquired on March 8, 2022; (iii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iv) land held for development.

Same-store cash NOI is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of same-store cash NOI to net income is attached to this press release.

Balance Sheet and Liquidity
At September 30, 2023, the company had gross real estate assets of $3.7 billion and liquidity of $490.0 million, comprised of cash and cash equivalents of $90.0 million and $400.0 million of availability on its line of credit. At September 30, 2023, the company had only 1 out of 31 assets encumbered by a mortgage.

Dividends
The company declared dividends on its shares of common stock of $0.33 per share for the third quarter of 2023. The dividends were paid on September 21, 2023.

In addition, the company has declared a dividend on its common stock of $0.33 per share for the fourth quarter of 2023. The dividend will be paid in cash on December 21, 2023 to stockholders of record on December 7, 2023.

Guidance
The company increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 per share, an
increase of 2.6% at midpoint from the prior 2023 FFO per diluted share guidance range of $2.28 to
$2.36 per share.

The company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financings or repayments. Management will discuss the company's guidance in more detail on tomorrow's earnings call. The foregoing estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates, credit spreads and the amount and timing of acquisition and development activities. The company's actual results may differ materially from these estimates.

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Conference Call
The company will hold a conference call to discuss the results for the third quarter of 2023 on Wednesday, October 25, 2023 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-833-630-1956 and ask to join the American Assets Trust, Inc. conference call. A live on-demand audio webcast of the conference call will be available on the company's website at www.americanassetstrust.com. A replay of the call will also be available on the company's website.

Supplemental Information
Supplemental financial information regarding the company's third quarter 2023 results may be found on the "Financial Reporting" tab of the “Investors” page of the company's website at www.americanassetstrust.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.
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Financial Information
American Assets Trust, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Data)
September 30, 2023December 31, 2022
Assets(unaudited)
Real estate, at cost  
Operating real estate$3,494,369 $3,468,537 
Construction in progress233,720 202,385 
Held for development547 547 
3,728,636 3,671,469 
Accumulated depreciation(1,013,367)(936,913)
Real estate, net2,715,269 2,734,556 
Cash and cash equivalents89,968 49,571 
Accounts receivable, net7,875 7,848 
Deferred rent receivables, net89,023 87,192 
Other assets, net108,584 108,714 
Total assets$3,010,719 $2,987,881 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$74,646 $74,578 
Unsecured notes payable, net1,614,307 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses70,970 65,992 
Security deposits payable8,952 8,699 
Other liabilities and deferred credits, net73,194 79,577 
Total liabilities1,842,069 1,802,356 
Commitments and contingencies  
Equity:  
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,724,630 and 60,718,653 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively607 607 
Additional paid-in capital1,467,455 1,461,201 
Accumulated dividends in excess of net income(270,817)(251,167)
Accumulated other comprehensive income 12,051 10,624 
Total American Assets Trust, Inc. stockholders' equity1,209,296 1,221,265 
Noncontrolling interests(40,646)(35,740)
Total equity1,168,650 1,185,525 
Total liabilities and equity$3,010,719 $2,987,881 

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American Assets Trust, Inc.
Unaudited Consolidated Statements of Operations
(In Thousands, Except Shares and Per Share Data)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Revenue:
Rental income$105,494 $105,468 $312,105 $301,470 
Other property income5,704 5,555 16,568 15,178 
Total revenue111,198 111,023 328,673 316,648 
Expenses:
Rental expenses29,912 28,438 86,128 78,436 
Real estate taxes11,399 11,477 34,117 34,193 
General and administrative8,880 8,376 26,488 23,130 
Depreciation and amortization29,868 31,729 89,592 93,228 
Total operating expenses80,059 80,020 236,325 228,987 
Operating income31,139 31,003 92,348 87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income15,135 16,369 51,198 43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership
(3,168)(3,442)(10,733)(9,130)
Net income attributable to American Assets Trust, Inc. stockholders
$11,778 $12,772 $39,897 $33,877 
Net income per share
Basic income attributable to common stockholders per share
$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - basic
60,150,681 60,044,117 60,147,189 60,041,034 
Diluted income attributable to common stockholders per share
$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - diluted
76,332,218 76,225,654 76,328,726 76,222,571 
Dividends declared per common share$0.33 $0.32 $0.99 $0.96 

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Reconciliation of Net Income to Funds From Operations
The company's FFO attributable to common stockholders and operating partnership unitholders and reconciliation to net income is as follows (in thousands except shares and per share data, unaudited):
Three Months Ended Nine Months Ended
September 30, 2023September 30, 2023
Funds From Operations (FFO)
Net income$15,135 $51,198 
Depreciation and amortization of real estate assets 29,868 89,592 
FFO, as defined by NAREIT$45,003 $140,790 
Less: Nonforfeitable dividends on restricted stock awards(186)(559)
FFO attributable to common stock and units$44,817 $140,231 
FFO per diluted share/unit$0.59 $1.84 
Weighted average number of common shares and units, diluted76,335,424 76,332,053 

Reconciliation of Same-Store Cash NOI to Net Income
The company's reconciliation of Same-Store Cash NOI to Net Income is as follows (in thousands, unaudited):
Three Months Ended (1)
Nine Months Ended (2)
September 30,September 30,
2023202220232022
Same-store cash NOI68,812 $67,563 $201,400 $191,457 
Non-same-store cash NOI(385)(153)489 375 
Tenant improvement reimbursements (3)
260 336 599 3,470 
Cash NOI$68,687 $67,746 $202,488 $195,302 
Non-cash revenue and other operating expenses (4)
1,200 3,362 5,940 8,717 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income$15,135 $16,369 $51,198 $43,471 
Number of properties included in same-store analysis30272927
(1)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.
(2)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Bel-Spring 520 which was acquired on March 8, 2022; (iii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iv) land held for development.
(3)    Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.
(4)    Represents adjustments related to the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances, the amortization of above (below) market rents, the amortization of lease incentives paid to tenants, the amortization of other lease intangibles, and straight-line rent expense for our lease of the Annex at The Landmark at One Market.

Reported results are preliminary and not final until the filing of the company's Form 10-Q with the Securities and Exchange Commission and, therefore, remain subject to adjustment.
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Use of Non-GAAP Information
Funds from Operations
The company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.

FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the company's operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year-over-year, captures trends in occupancy rates, rental rates and operating costs. The company also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the company's operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the company's properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the company's properties, all of which have real economic effects and could materially impact the company's results from operations, the utility of FFO as a measure of the company's performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the NAREIT definition as the company does, and, accordingly, the company's FFO may not be comparable to such other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the company's performance. FFO should not be used as a measure of the company's liquidity, nor is it indicative of funds available to fund the company's cash needs, including the company's ability to pay dividends or service indebtedness. FFO also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

Cash Net Operating Income
The company uses NOI internally to evaluate and compare the operating performance of the company's properties. The company believes cash NOI provides useful information to investors regarding the company's financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the company's properties as this measure is not affected by (1) the non-cash revenue and expense recognition items, (2) the cost of funds of the property owner, (3) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP or (4) general and administrative expenses and other gains and losses that are specific to the property owner. The company believes the exclusion of these items from net income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the company's properties as well as trends in occupancy rates, rental rates and operating costs. Cash NOI is a measure of the operating performance of the company's properties but does not measure the company's performance as a whole. Cash NOI is therefore not a substitute for net income as computed in accordance with GAAP.

Cash NOI is a non-GAAP financial measure of performance. The company defines cash NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance), adjusted for non-cash revenue and operating expense items such as straight-line rent, amortization of lease intangibles, amortization of lease incentives and other adjustments. Cash NOI also excludes general and administrative expenses, depreciation and amortization, interest expense, other nonproperty income and losses, acquisition-related expense, gains and losses from property dispositions, extraordinary items, tenant improvements, and leasing commissions. Other REITs may use different methodologies for calculating cash NOI, and accordingly, the company's cash NOI may not be comparable to the cash NOIs of other REITs.

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About American Assets Trust, Inc.
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation’s most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii.  The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes. For additional information, please visit www.americanassetstrust.com.

Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT, for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs. While forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission. The company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Source: American Assets Trust, Inc.

Investor and Media Contact:
American Assets Trust
Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607

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THIRD QUARTER 2023
Supplemental Information



supplementcoverq42019v2a01a.jpg


image6a.jpg
Investor and Media Contact
American Assets Trust, Inc.
Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607



image6a.jpg
American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets
with favorable supply/demand characteristics
supplementalmappicq22023a.jpg
OfficeRetailMultifamilyMixed-Use
Market Square Feet Square Feet Units Square FeetSuites
San Diego1,588,956 1,322,200 1,453 (1)— — 
Bellevue1,030,434 — — — — 
Portland908,178 44,236 657 — — 
Monterey— 673,155 — — — 
San Antonio— 588,148 — — — 
San Francisco522,696 35,159 — — — 
Oahu— 429,718 — 93,925 369 
Total4,050,264 3,092,616 2,110 93,925 369 
Square Feet%
NOI % (2)
Note: Circled areas represent all markets in which American Assets Trust, Inc. currently owns and operates its real estate properties. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.Office4.1 million57%52%
Retail3.1 million43%27%
Data is as of September 30, 2023.Totals7.2 million
(1) Includes 120 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended September 30, 2023. Reconciliation of NOI to net income is included in the Glossary of Terms.

Third Quarter 2023 Supplemental InformationPage
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INDEX
image6a.jpg
THIRD QUARTER 2023 SUPPLEMENTAL INFORMATION
1.FINANCIAL HIGHLIGHTS
Consolidated Balance Sheets
Consolidated Statements of Operations
Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution
Corporate Guidance
Same-Store Net Operating Income (NOI)
Same-Store Cash NOI Comparison excluding Redevelopment
Same-Store Cash NOI Comparison with Redevelopment
Cash NOI By Region
Cash NOI Breakdown
Property Revenue and Operating Expenses
Segment Capital Expenditures
Summary of Outstanding Debt
Market Capitalization
Summary of Development Opportunities
2.PORTFOLIO DATA
Property Report
Office Leasing Summary
Retail Leasing Summary
Multifamily Leasing Summary
Mixed-Use Leasing Summary
Lease Expirations
Portfolio Leased Statistics
Top Tenants - Office
Top Tenants - Retail
3.APPENDIX
Glossary of Terms
This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT, for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, refer to our most recent Annual Report on Form 10-K and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission.
Third Quarter 2023 Supplemental InformationPage
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FINANCIAL HIGHLIGHTS




Third Quarter 2023 Supplemental InformationPage
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CONSOLIDATED BALANCE SHEETS
image6a.jpg
(Amounts in thousands, except shares and per share data)September 30, 2023December 31, 2022
ASSETS(unaudited)
Real estate, at cost
Operating real estate$3,494,369 $3,468,537 
Construction in progress233,720 202,385 
Held for development547 547 
3,728,636 3,671,469 
Accumulated depreciation(1,013,367)(936,913)
Net real estate2,715,269 2,734,556 
Cash and cash equivalents89,968 49,571 
Accounts receivable, net7,875 7,848 
Deferred rent receivable, net89,023 87,192 
Other assets, net108,584 108,714 
TOTAL ASSETS$3,010,719 $2,987,881 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$74,646 $74,578 
Unsecured notes payable, net1,614,307 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses70,970 65,992 
Security deposits payable8,952 8,699 
Other liabilities and deferred credits, net73,194 79,577 
Total liabilities1,842,069 1,802,356 
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,724,630 and 60,718,653 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively607 607 
Additional paid in capital1,467,455 1,461,201 
Accumulated dividends in excess of net income(270,817)(251,167)
Accumulated other comprehensive income 12,051 10,624 
Total American Assets Trust, Inc. stockholders' equity1,209,296 1,221,265 
Noncontrolling interests(40,646)(35,740)
Total equity1,168,650 1,185,525 
TOTAL LIABILITIES AND EQUITY$3,010,719 $2,987,881 

Third Quarter 2023 Supplemental InformationPage
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CONSOLIDATED STATEMENTS OF OPERATIONS
image6a.jpg
(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
 2023202220232022
REVENUE:
Rental income$105,494 $105,468 $312,105 $301,470 
Other property income5,704 5,555 16,568 15,178 
Total revenue111,198 111,023 328,673 316,648 
EXPENSES:
Rental expenses29,912 28,438 86,128 78,436 
Real estate taxes11,399 11,477 34,117 34,193 
General and administrative8,880 8,376 26,488 23,130 
Depreciation and amortization29,868 31,729 89,592 93,228 
Total operating expenses80,059 80,020 236,325 228,987 
OPERATING INCOME31,139 31,003 92,348 87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
NET INCOME15,135 16,369 51,198 43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership(3,168)(3,442)(10,733)(9,130)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$11,778 $12,772 $39,897 $33,877 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - basic60,150,681 60,044,117 60,147,189 60,041,034 
Diluted income from continuing operations attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - diluted76,332,218 76,225,654 76,328,726 76,222,571 

Third Quarter 2023 Supplemental InformationPage
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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION
image6a.jpg
(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
2023202220232022
Funds from Operations (FFO) (1)
Net income$15,135 $16,369 $51,198 $43,471 
Depreciation and amortization of real estate assets 29,868 31,729 89,592 93,228 
FFO, as defined by NAREIT45,003 48,098 140,790 136,699 
Less: Nonforfeitable dividends on restricted stock awards(186)(153)(559)(459)
FFO attributable to common stock and common units$44,817 $47,945 $140,231 $136,240 
FFO per diluted share/unit$0.59 $0.63 $1.84 $1.79 
Weighted average number of common shares and common units, diluted (2)
76,335,424 76,226,946 76,332,053 76,224,480 
Funds Available for Distribution (FAD) (1)
$32,181 $37,692 $100,339 $101,077 
Dividends
Dividends declared and paid$25,379 $24,547 $76,135 $73,639 
Dividends declared and paid per share/unit$0.33 $0.32 $0.99 $0.96 

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.
        
Third Quarter 2023 Supplemental InformationPage
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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)
image6a.jpg
(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
2023202220232022
Funds Available for Distribution (FAD) (1)
FFO$45,003 $48,098 $140,790 $136,699 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (14,383)(9,543)(42,761)(33,867)
Net effect of straight-line rents (3)
(490)(2,577)(3,774)(6,366)
Amortization of net above (below) market rents (4)
(759)(831)(2,337)(2,497)
Net effect of other lease assets (5)
52 46 173 146 
Amortization of debt issuance costs and debt fair value adjustment835 651 2,553 1,930 
Non-cash compensation expense2,109 2,001 6,254 5,491 
Nonforfeitable dividends on restricted stock awards(186)(153)(559)(459)
FAD$32,181 $37,692 $100,339 $101,077 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $4,257 $5,704 $17,884 $20,666 
Maintenance capital expenditures10,126 3,839 24,877 13,201 
$14,383 $9,543 $42,761 $33,867 

Notes:
(1)    See Glossary of Terms.
(2)    For the three and nine months ended September 30, 2023 and 2022, the weighted average common shares and common units used to compute FFO per diluted share/unit include operating partnership common units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO per diluted share/unit include additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented.
(3)    Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.
(4)    Represents the adjustment related to the acquisition of buildings with above (below) market rents.
(5)    Represents adjustments related to amortization of lease incentives paid to tenants, amortization of lease intangibles, and straight-line rent expense for our leases at the Annex at The Landmark at One Market.

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.


Third Quarter 2023 Supplemental InformationPage
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CORPORATE GUIDANCE
image6a.jpg
(Amounts in thousands, except share and per share data)
Prior 2023 Guidance Range (1)(2)
Revised 2023 Guidance Range (2)
Funds from Operations (FFO):
Net income$58,331 $64,439 $63,072 $66,126 
Depreciation and amortization of real estate assets116,530 116,530 117,858 117,858 
FFO, as defined by NAREIT174,861 180,969 180,930 183,984 
Less: Nonforfeitable dividends on restricted stock awards(761)(761)(746)(746)
FFO attributable to common stock and units$174,100 $180,208 $180,184 $183,238 
Weighted average number of common shares and units, diluted76,359,443 76,359,443 76,348,908 76,348,908 
FFO per diluted share, updated$2.28 $2.36 $2.36 $2.40 

Notes:
(1)    The Prior 2023 Guidance Range as reported in the company's Second Quarter 2023 Supplemental Information.
(2)    The company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, future debt financings or repayments.


FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.

These estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates and the amount and timing of acquisition and development activities. Our actual results may differ materially from these estimates.

Third Quarter 2023 Supplemental InformationPage
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SAME-STORE NET OPERATING INCOME (NOI)
image6a.jpg

(Unaudited, amounts in thousands)
Three Months Ended September 30, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$51,931 $26,143 $15,152 $17,955 $111,181 
Non-same store 17 — — — 17 
Total51,948 26,143 15,152 17,955 111,198 
Real estate expenses
Same-store14,960 7,504 7,262 11,184 40,910 
Non-same store401 — — — 401 
Total15,361 7,504 7,262 11,184 41,311 
Net Operating Income (NOI)
Same-store36,971 18,639 7,890 6,771 70,271 
Non-same store(384)— — — (384)
Total$36,587 $18,639 $7,890 $6,771 $69,887 
Same-store NOI$36,971 $18,639 $7,890 $6,771 $70,271 
Net effect of straight-line rents (2)
(800)205 67 37 (491)
Amortization of net above (below) market rents (3)
(500)(260)— — (760)
Net effect of other lease assets (4)
39 13 — — 52 
Tenant improvement reimbursements (5)
(259)(1)— — (260)
Same-store cash NOI (5)
$35,451 $18,596 $7,957 $6,808 $68,812 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on September 30, 2023 and 2022. See Glossary of Terms.
(2)    Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.
(3)    Represents the adjustment related to the acquisition of buildings with above (below) market rents.
(4)    Represents adjustments related to amortization of lease incentives paid to tenants, amortization of lease intangibles and straight-line rent expense for our leases at the Annex at The Landmark at One Market.
(5)    Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.


NOI and same-store cash NOI are non-GAAP supplemental earnings measures which we consider meaningful in measuring our operating performance. Reconciliations of NOI and same-store cash NOI to net income are included in the Glossary of Terms.

Third Quarter 2023 Supplemental InformationPage
10

SAME-STORE NET OPERATING INCOME (NOI) (CONTINUED)
image6a.jpg
(Unaudited, amounts in thousands)
Nine Months Ended September 30, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$152,622 $77,671 $45,908 $49,957 $326,158 
Non-same store2,515 — — — 2,515 
Total155,137 77,671 45,908 49,957 328,673 
Real estate expenses
Same-store43,307 22,763 20,579 31,828 118,477 
Non-same store1,768 — — — 1,768 
Total45,075 22,763 20,579 31,828 120,245 
Net Operating Income (NOI)
Same-store109,315 54,908 25,329 18,129 207,681 
Non-same store747 — — — 747 
Total$110,062 $54,908 $25,329 $18,129 $208,428 
Same-store NOI$109,315 $54,908 $25,329 $18,129 $207,681 
Net effect of straight-line rents (2)
(4,083)241 121 44 (3,677)
Amortization of net above (below) market rents (3)
(1,398)(780)— — (2,178)
Net effect of other lease assets (4)
136 37 — — 173 
Tenant improvement reimbursements (5)
(595)(4)— — (599)
Same-store cash NOI (5)
$103,375 $54,402 $25,450 $18,173 $201,400 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on September 30, 2023 and 2022. See Glossary of Terms.
(2)    Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.
(3)    Represents the adjustment related to the acquisition of buildings with above (below) market rents.
(4)    Represents adjustments related to amortization of lease incentives paid to tenants, amortization of lease intangibles, and straight-line rent expense for our leases at the Annex at The Landmark at One Market.
(5)    Tenant improvement reimbursements are excluded from Same-store Cash NOI to provide a more accurate measure of operating performance.

NOI and same-store cash NOI are non-GAAP supplemental earnings measures which we consider meaningful in measuring our operating performance. Reconciliations of NOI and same-store cash NOI to net income are included in the Glossary of Terms.



Third Quarter 2023 Supplemental InformationPage
11

SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT
image6a.jpg
(Unaudited, amounts in thousands)Three Months Ended Nine Months Ended
September 30,September 30,
20232022Change20232022Change
Cash Basis:
Office$35,451 $35,449 — %$103,375 $99,625 3.8 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI (2)(3)
$68,812 $67,563 1.8 %$201,400 $191,457 5.2 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2023 and 2022, the change in same-store cash NOI would be 1.9% and 5.1% respectively .
(2)    See Glossary of Terms.


Same-store cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of same-store cash NOI to net income is included in the Glossary of Terms.
Third Quarter 2023 Supplemental InformationPage
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SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT
image6a.jpg
(Unaudited, amounts in thousands)Three Months EndedNine Months Ended
September 30,September 30,
20232022Change20232022Change
Cash Basis:
Office$35,177 $35,264 (0.2)%$102,528 $99,058 3.5 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI with Redevelopment (1)(2)
$68,538 $67,378 1.7 %$200,553 $190,890 5.1 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2023 and 2022, the change in same-store cash NOI with redevelopment would be 1.7% and 5.0% respectively.
(2)    See Glossary of Terms.


Same-store cash NOI with redevelopment is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of same-store cash NOI with redevelopment to net income is included in the Glossary of Terms.




Third Quarter 2023 Supplemental InformationPage
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CASH NOI BY REGION
image6a.jpg
(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California$14,786 $8,897 $6,627 $— $30,310 
Northern California7,343 2,592 — — 9,935 
Hawaii— 3,211 — 6,808 10,019 
Oregon5,775 167 1,330 — 7,272 
Texas— 3,730 — — 3,730 
Washington7,421 — — — 7,421 
Total Cash NOI$35,325 $18,597 $7,957 $6,808 $68,687 


Cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of cash NOI to net income is included in the Glossary of Terms.


Third Quarter 2023 Supplemental InformationPage
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CASH NOI BREAKDOWN
image6a.jpg
Three Months Ended September 30, 2023
Cash NOI Breakdown
Portfolio Diversification by Geographic RegionPortfolio Diversification by Segment
    

chart-ea8dfb938dc54381a97a.jpg    chart-3f0d540ce7d64ade9eaa.jpg




Cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of cash NOI to net income is included in the Glossary of Terms.
Third Quarter 2023 Supplemental InformationPage
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PROPERTY REVENUE AND OPERATING EXPENSES
image6a.jpg
(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$8,287 $312 $2,537 $(3,080)$— $8,056 
Torrey Reserve Campus (7)
6,796 47 426 (1,828)(874)4,567 
Torrey Point1,436 99 31 (393)(318)855 
Solana Crossing2,076 105 (624)(148)1,418 
The Landmark at One Market10,266 76 638 (3,516)— 7,464 
One Beach Street — — — (121)— (121)
First & Main2,776 202 779 (1,215)187 2,729 
Lloyd Portfolio (7)
4,202 407 188 (1,480)(164)3,153 
City Center Bellevue 6,208 478 (258)(1,467)(135)4,826 
Eastgate Office Park1,118 34 502 (687)(10)957 
Corporate Campus East III1,115 56 459 (467)(9)1,154 
Bel-Spring 520550 11 245 (274)(48)484 
Subtotal Office Portfolio$44,830 $1,731 $5,652 $(15,152)$(1,519)$35,542 
Retail Portfolio
Carmel Country Plaza$931 $29 $222 $(226)$(1)$955 
Carmel Mountain Plaza3,403 46 947 (1,024)87 3,459 
South Bay Marketplace625 124 233 (234)— 748 
Gateway Marketplace604 232 (265)(12)562 
Lomas Santa Fe Plaza1,661 21 314 (436)1,568 
Solana Beach Towne Centre1,659 18 553 (620)(5)1,605 
Del Monte Center 2,329 374 769 (1,192)26 2,306 
Geary Marketplace309 134 (158)— 286 
The Shops at Kalakaua276 17 51 (95)— 249 
Waikele Center3,178 441 912 (1,574)2,962 
Alamo Quarry Market3,684 281 1,289 (1,556)32 3,730 
Hassalo on Eighth - Retail 225 25 42 (125)— 167 
Subtotal Retail Portfolio$18,884 $1,380 $5,698 $(7,505)$140 $18,597 

Third Quarter 2023 Supplemental InformationPage
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PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
image6a.jpg
(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$4,135 $273 $— $(1,740)$(4)$2,664 
Imperial Beach Gardens1,179 72 — (462)— 789 
Mariner's Point578 34 — (247)— 365 
Santa Fe Park RV Resort570 39 — (316)— 293 
Pacific Ridge Apartments4,984 221 — (2,655)(34)2,516 
Hassalo on Eighth - Multifamily2,853 407 — (1,840)(90)1,330 
Subtotal Multifamily Portfolio$14,299 $1,046 $ $(7,260)$(128)$7,957 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$2,178 $1,211 $838 $(1,669)$(13)$2,545 
Waikiki Beach Walk - Embassy Suites™11,881 1,897 — (9,515)— 4,263 
Subtotal Mixed-Use Portfolio$14,059 $3,108 $838 $(11,184)$(13)$6,808 
Subtotal Development Properties$ $6 $ $(223)$ $(217)
Total$92,072 $7,271 $12,188 $(41,324)$(1,520)$68,687 
Cash NOI is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of total cash NOI to net income is included in the Glossary of Terms.
Notes:
(1)    Base rent for our office and retail portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended September 30, 2023 (before deferrals, abatements, and tenant improvement reimbursements) and excludes the impact of straight-line rent and above (below) market rent adjustments. Total abatements for our office portfolio were approximately $1.7 million for the three months ended September 30, 2023. Total abatements for our retail portfolio and mixed-use portfolio were minimal for the three months ended September 30, 2023. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Multifamily portfolio base rent represents base rent (including parking, before abatements) less vacancy allowance and employee rent credits and includes additional rents (additional rents include insufficient notice penalties, month-to-month charges and pet rent). There were $0.1 million of abatements for our multifamily portfolio for the three months ended September 30, 2023. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended September 30, 2023. Total tenant improvement reimbursements for our office portfolio, retail portfolio and the retail portion of our mixed-use portfolio were approximately $0.3 million in the aggregate for the three months ended September 30, 2023.
(2)    Represents additional property-related income for the three months ended September 30, 2023, which includes: (i) percentage rent, (ii) other rent (such as storage rent, license fees and association fees) and (iii) other property income (such as late fees, default fees, lease termination fees, parking revenue, the reimbursement of general excise taxes, laundry income and food and beverage sales).
(3)    Represents billed tenant expense reimbursements for the three months ended September 30, 2023.
(4)    Represents property operating expenses for the three months ended September 30, 2023. Property operating expenses includes all rental expenses, except non cash rent expense.
(5)    Represents various rental adjustments related to base rent (deferrals, abatements, and tenant improvement reimbursements).
(6)    See Glossary of Terms.
(7)    Base rent shown includes amounts related to American Assets Trust, L.P.'s corporate leases at Torrey Point and Lloyd Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent and abatement were both $0.4 million for the three months ended September 30, 2023.


Third Quarter 2023 Supplemental InformationPage
17

SEGMENT CAPITAL EXPENDITURES
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$3,127 $6,219 $9,346 $953 $5,806 $16,105 
Retail Portfolio844 784 1,628 — — 1,628 
Multifamily Portfolio— 1,977 1,977 — — 1,977 
Mixed-Use Portfolio286 1,146 1,432 — — 1,432 
Total$4,257 $10,126 $14,383 $953 $5,806 $21,142 
Nine Months Ended September 30, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$12,939 $16,236 $29,175 $6,283 $21,184 $56,642 
Retail Portfolio4,476 1,322 5,798 5,798 
Multifamily Portfolio— 4,506 4,506 4,506 
Mixed-Use Portfolio469 2,813 3,282 3,282 
Total$17,884 $24,877 $42,761 $6,283 $21,184 $70,228 

Third Quarter 2023 Supplemental InformationPage
18

SUMMARY OF OUTSTANDING DEBT
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(Unaudited, amounts in thousands)Amount
Outstanding atAnnual Debt
DebtSeptember 30, 2023Interest Rate
Service (1)
Maturity Date
City Center Bellevue75,000 5.08 %3,874 October 1, 2027
Secured Notes Payable / Weighted Average (2)
$75,000 5.08 %$3,874 
Term Loan A (3)
$100,000 2.70 %$2,700 January 5, 2027
Term Loan B (4)
150,000 5.47 %8,340 January 5, 2025
Term Loan C (5)
75,000 5.47 %4,170 January 5, 2025
Series F Notes (6)
100,000 3.85 %103,024 July 19, 2024
Series B Notes 100,000 4.45 %4,450 February 2, 2025
Series C Notes 100,000 4.50 %4,500 April 1, 2025
Series D Notes (7)
250,000 3.87 %10,725 March 1, 2027
Series E Notes (8)
100,000 4.18 %4,240 May 23, 2029
Series G Notes (9)
150,000 3.88 %5,865 July 30, 2030
3.375% Senior Unsecured Notes (10)
500,000 3.38 %16,875 February 1, 2031
Unsecured Notes Payable / Weighted Average (11)
$1,625,000 3.96 %$164,889 
Unsecured Line of Credit (12)
$ 
Notes:
(1)    Includes interest and principal payments due over the next twelve months.
(2)    The Secured Notes Payable total does not include debt issuance costs, net of $0.35 million.
(3)    Term Loan A has a stated maturity of January 5, 2027, with no further extension options. Term Loan A accrues interest at a variable rate, which we fixed as part of an interest rate swap for an effective interest rate of 2.70%, subject to adjustments based on our consolidated leverage ratio.