false000150021700015002172024-02-062024-02-06

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):
February 6, 2024
_________________________
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 February 6, 2024, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter and fiscal year ending December 31, 2023. Also on February 6, 2024, 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 and fiscal year ending December 31, 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 and fiscal year ending December 31, 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
February 6, 2024

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American Assets Trust, Inc. Reports Fourth Quarter and Year End 2023 Financial Results

Net income available to common stockholders of $10.5 million and $50.4 million for the three months and year ended December 31, 2023, respectively, or $0.17 and $0.84 per diluted share, respectively.
Funds from Operations ("FFO") per diluted share increased 2% and 3% year-over-year for the three months and year ended December 31, 2023, respectively, to $0.57 and $2.40 per diluted share, respectively.
Introducing 2024 annual guidance midpoint of $2.26 with a range of $2.19 to $2.33 of FFO per diluted share.

SAN DIEGO, California - 2/6/2024 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its fourth quarter and year ended December 31, 2023.

Fourth Quarter Highlights
Net income available to common stockholders of $10.5 million and $50.4 million for the three months and year ended December 31, 2023, respectively, or $0.17 and $0.84 per diluted share, respectively.
FFO increased 2% and 3% year-over-year to $0.57 and $2.40 per diluted share for the three months and year ended December 31, 2023, respectively, compared to the same periods in 2022.
Same-store cash Net Operating Income ("NOI") increased 2.6% and 4.5% year-over-year for the three months and year ended December 31, 2023, respectively, compared to the same periods in 2022.
Introducing 2024 annual guidance midpoint of $2.26 with a range of $2.19 to $2.33 of FFO per diluted share.
Leased approximately 23,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 30% and 22%, respectively, during the fourth quarter.
Leased approximately 108,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 13% and 7%, respectively, during the fourth quarter.

Financial Results
(Unaudited, amounts in thousands, except per share data)Three Months Ended December 31Year Ended
 December 31,
2023202220232022
Net income attributable to American Assets Trust, Inc. stockholders$10,481 $9,629 $50,378 $43,506 
Basic and diluted income attributable to common stockholders per share$0.17 $0.16 $0.84 $0.72 
FFO attributable to common stock and common units$43,210 $42,334 $183,441 $178,574 
FFO per diluted share and unit$0.57 $0.56 $2.40 $2.34 
Net income attributable to common stockholders increased $6.9 million for the year ended December 31, 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 $4.7 million net increase in our office segment primarily due to higher annualized base rents at Torrey Reserve Campus, Solana Crossing and The Landmark at One Market, (iii) a $3.1 million net increase in our retail segment due to new tenant leases signed,
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scheduled rent increases and tenants previously on alternate rent reverting back to basic monthly rent, and (iv) a $3.1 million net increase at Waikiki Beach Walk - Embassy Suites due to increased tourism into Hawaii. These increases were offset by higher net interest expense of approximately $6.5 million primarily due to the $225 million Amended and Restated Term Loan Agreement and higher general and administrative expenses of $3.8 million primarily due to an increase in employee-related costs and general legal expenses.

FFO increased $0.9 million for the three months ended December 31, 2023 compared to the same period in 2022, primarily due to an increase in our office segment due to higher annualized base rents and an increase at Waikiki Beach Walk - Embassy Suites due to increased tourism. These increases were offset by 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:
December 31, 2023September 30, 2023December 31, 2022
Total Portfolio
Office 86.0%86.8%88.9%
Retail94.3%94.4%93.5%
Multifamily92.3%89.5%91.8%
Mixed-Use:
Retail95.1%95.1%93.8%
Hotel85.2%85.3%76.9%
Same-Store Portfolio
Office (1)
88.9%89.7%91.9%
Retail94.3%94.4%93.5%
Multifamily92.3%89.5%91.8%
Mixed-Use:
Retail95.1%95.1%93.8%
Hotel85.2%85.3%76.9%
(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 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 fourth quarter of 2023, the company signed 32 leases for approximately 147,200 square feet of office and retail space, as well as 505 multifamily apartment leases. Renewals accounted for 71% of the comparable office leases, 94% of the comparable retail leases, and 60% of the residential leases.

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Office and Retail
On a comparable space basis (i.e. leases for which there was a former tenant) during the fourth quarter of 2023 and year ended December 31, 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
OfficeQ4 2023723,00022.4%$55.00$44.9330.1%
FY 202334261,0002.4%$69.92$68.3110.8%
RetailQ4 202318108,0006.8%$31.29$29.3112.8%
FY 202375368,0006.5%$34.36$32.0815.4%


Multifamily
The average monthly base rent per leased unit for our multifamily properties for the fourth quarter of 2023 was $2,654 compared to an average monthly base rent per leased unit of $2,516 for the fourth quarter of 2022, which is an increase of approximately 5.5%.

Same-Store Cash Net Operating Income
For the three months and year ended December 31, 2023, same-store cash NOI increased 2.6% and 4.5%, respectively, compared to the three months and year ended December 31, 2022. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Year Ended (2)
December 31,December 31,
20232022Change20232022Change
Cash Basis:
Office$35,540 $34,316 3.6 %$138,405 $133,490 3.7 %
Retail18,255 18,480 (1.2)72,657 69,491 4.6 
Multifamily8,543 8,271 3.3 33,994 32,224 5.5 
Mixed-Use5,285 4,869 8.5 23,458 21,734 7.9 
Same-store Cash NOI$67,623 $65,936 2.6 %$268,514 $256,939 4.5 %
(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 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 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 December 31, 2023, the company had gross real estate assets of $3.7 billion and liquidity of $482.9 million, comprised of cash and cash equivalents of $82.9 million and $400.0 million of availability on its line of credit. At December 31, 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 fourth quarter of 2023. The dividends were paid on December 21, 2023.

In addition, the company has declared a dividend on its common stock of $0.335 per share for the first quarter of 2024. The dividend will be paid in cash on March 21, 2024 to stockholders of record on March 7, 2024.
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Guidance
The company is introducing 2024 guidance for full year 2024 FFO per diluted share of $2.19 to 2.33 per share, with a midpoint of $2.26.

Management will discuss the company's guidance in more detail during tomorrow's earnings call. Except as discussed during the call, the company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financing or repayments. 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.

Conference Call
The company will hold a conference call to discuss the results for the three months ended and year ended December 31, 2023 on Wednesday, February 7, 2024 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 three months and year ended December 31, 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)
December 31, 2023December 31, 2022
Assets(unaudited)
Real estate, at cost  
Operating real estate$3,502,251 $3,468,537 
Construction in progress239,030 202,385 
Held for development487 547 
3,741,768 3,671,469 
Accumulated depreciation(1,036,453)(936,913)
Real estate, net2,705,315 2,734,556 
Cash and cash equivalents82,888 49,571 
Accounts receivable, net7,624 7,848 
Deferred rent receivables, net89,210 87,192 
Other assets, net99,644 108,714 
Total assets$2,984,681 $2,987,881 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$74,669 $74,578 
Unsecured notes payable, net1,614,958 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses61,312 65,992 
Security deposits payable8,880 8,699 
Other liabilities and deferred credits, net71,187 79,577 
Total liabilities1,831,006 1,802,356 
Commitments and contingencies  
Equity:  
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,895,786 and 60,718,653 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively609 607 
Additional paid-in capital1,469,206 1,461,201 
Accumulated dividends in excess of net income(280,239)(251,167)
Accumulated other comprehensive income 8,282 10,624 
Total American Assets Trust, Inc. stockholders' equity1,197,858 1,221,265 
Noncontrolling interests(44,183)(35,740)
Total equity1,153,675 1,185,525 
Total liabilities and equity$2,984,681 $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 December 31,Year Ended December 31,
2023202220232022
Revenue:
Rental income$107,268 $101,037 $419,373 $402,507 
Other property income5,223 4,963 21,791 20,141 
Total revenue112,491 106,000 441,164 422,648 
Expenses:
Rental expenses32,673 29,209 118,801 107,645 
Real estate taxes11,039 10,595 45,156 44,788 
General and administrative9,472 9,013 35,960 32,143 
Depreciation and amortization29,908 30,110 119,500 123,338 
Total operating expenses83,092 78,927 319,417 307,914 
Operating income29,399 27,073 121,747 114,734 
Interest expense, net(16,284)(14,565)(64,706)(58,232)
Other income (expense), net377 (102)7,649 (625)
Net income13,492 12,406 64,690 55,877 
Net income attributable to restricted shares(193)(184)(761)(648)
Net income attributable to unitholders in the Operating Partnership
(2,818)(2,593)(13,551)(11,723)
Net income attributable to American Assets Trust, Inc. stockholders
$10,481 $9,629 $50,378 $43,506 
Net income per share
Basic income attributable to common stockholders per share
$0.17 $0.16 $0.84 $0.72 
Weighted average shares of common stock outstanding - basic
60,193,953 60,072,517 60,158,976 60,048,970 
Diluted income attributable to common stockholders per share
$0.17 $0.16 $0.84 $0.72 
Weighted average shares of common stock outstanding - diluted
76,375,490 76,254,054 76,340,513 76,230,507 
Dividends declared per common share$0.33 $0.32 $1.32 $1.28 

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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 Year Ended
December 31, 2023December 31, 2023
Funds From Operations (FFO)
Net income$13,492 $64,690 
Depreciation and amortization of real estate assets 29,908 119,500 
FFO, as defined by NAREIT$43,400 $184,190 
Less: Nonforfeitable dividends on restricted stock awards(190)(749)
FFO attributable to common stock and units$43,210 $183,441 
FFO per diluted share/unit$0.57 $2.40 
Weighted average number of common shares and units, diluted76,381,507 76,346,772 

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)
Year Ended (2)
December 31,December 31,
2023202220232022
Same-store cash NOI67,623 $65,936 $268,514 $256,939 
Non-same-store cash NOI(432)(271)566 558 
Tenant improvement reimbursements (3)
505 134 1,104 3,604 
Cash NOI$67,696 $65,799 $270,184 $261,101 
Non-cash revenue and other operating expenses (4)
1,083 397 7,023 9,114 
General and administrative(9,472)(9,013)(35,960)(32,143)
Depreciation and amortization(29,908)(30,110)(119,500)(123,338)
Interest expense, net(16,284)(14,565)(64,706)(58,232)
Other income (expense), net377 (102)7,649 (625)
Net income$13,492 $12,406 $64,690 $55,877 
Number of properties included in same-store analysis30292927
(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 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 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-K 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; system failures or security incidents through cyber attacks; 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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FOURTH QUARTER 2023
Supplemental Information



supplementcoverq42019v2a01.jpg


image6.jpg
Investor and Media Contact
American Assets Trust, Inc.
Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607



image6.jpg
American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets
with favorable supply/demand characteristics
supplementalmappicq42023.jpg
OfficeRetailMultifamilyMixed-Use
Market Square Feet Square Feet Units Square FeetSuites
San Diego1,590,552 1,322,200 1,453 (1)— — 
Bellevue1,032,683 — — — — 
Portland912,592 44,236 657 — — 
Monterey— 673,155 — — — 
San Antonio— 588,148 — — — 
San Francisco522,696 35,159 — — — 
Oahu— 429,718 — 93,925 369 
Total4,058,523 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%53%
Retail3.1 million43%27%
Data is as of December 31, 2023.Totals7.2 million
(1) Includes 120 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended December 31, 2023. Reconciliation of NOI to net income is included in the Glossary of Terms.

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INDEX
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FOURTH 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; system failures or security incidents through cyber attacks; 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.
Fourth Quarter 2023 Supplemental InformationPage
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FINANCIAL HIGHLIGHTS




Fourth Quarter 2023 Supplemental InformationPage
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CONSOLIDATED BALANCE SHEETS
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(Amounts in thousands, except shares and per share data)December 31, 2023December 31, 2022
ASSETS(unaudited)
Real estate, at cost
Operating real estate$3,502,251 $3,468,537 
Construction in progress239,030 202,385 
Held for development487 547 
3,741,768 3,671,469 
Accumulated depreciation(1,036,453)(936,913)
Net real estate2,705,315 2,734,556 
Cash and cash equivalents82,888 49,571 
Accounts receivable, net7,624 7,848 
Deferred rent receivable, net89,210 87,192 
Other assets, net99,644 108,714 
TOTAL ASSETS$2,984,681 $2,987,881 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$74,669 $74,578 
Unsecured notes payable, net1,614,958 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses61,312 65,992 
Security deposits payable8,880 8,699 
Other liabilities and deferred credits, net71,187 79,577 
Total liabilities1,831,006 1,802,356 
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,895,786 and 60,718,653 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively609 607 
Additional paid in capital1,469,206 1,461,201 
Accumulated dividends in excess of net income(280,239)(251,167)
Accumulated other comprehensive income 8,282 10,624 
Total American Assets Trust, Inc. stockholders' equity1,197,858 1,221,265 
Noncontrolling interests(44,183)(35,740)
Total equity1,153,675 1,185,525 
TOTAL LIABILITIES AND EQUITY$2,984,681 $2,987,881 

Fourth Quarter 2023 Supplemental InformationPage
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CONSOLIDATED STATEMENTS OF OPERATIONS
image6.jpg
(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
 2023202220232022
REVENUE:
Rental income$107,268 $101,037 $419,373 $402,507 
Other property income5,223 4,963 21,791 20,141 
Total revenue112,491 106,000 441,164 422,648 
EXPENSES:
Rental expenses32,673 29,209 118,801 107,645 
Real estate taxes11,039 10,595 45,156 44,788 
General and administrative9,472 9,013 35,960 32,143 
Depreciation and amortization29,908 30,110 119,500 123,338 
Total operating expenses83,092 78,927 319,417 307,914 
OPERATING INCOME29,399 27,073 121,747 114,734 
Interest expense, net(16,284)(14,565)(64,706)(58,232)
Other income (expense), net377 (102)7,649 (625)
NET INCOME13,492 12,406 64,690 55,877 
Net income attributable to restricted shares(193)(184)(761)(648)
Net income attributable to unitholders in the Operating Partnership(2,818)(2,593)(13,551)(11,723)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$10,481 $9,629 $50,378 $43,506 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.17 $0.16 $0.84 $0.72 
Weighted average shares of common stock outstanding - basic60,193,953 60,072,517 60,158,976 60,048,970 
Diluted income from continuing operations attributable to common stockholders per share$0.17 $0.16 $0.84 $0.72 
Weighted average shares of common stock outstanding - diluted76,375,490 76,254,054 76,340,513 76,230,507 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
2023202220232022
Funds from Operations (FFO) (1)
Net income$13,492 $12,406 $64,690 $55,877 
Depreciation and amortization of real estate assets 29,908 30,110 119,500 123,338 
FFO, as defined by NAREIT43,400 42,516 184,190 179,215 
Less: Nonforfeitable dividends on restricted stock awards(190)(182)(749)(641)
FFO attributable to common stock and common units$43,210 $42,334 $183,441 $178,574 
FFO per diluted share/unit$0.57 $0.56 $2.40 $2.34 
Weighted average number of common shares and common units, diluted (2)
76,381,507 76,256,916 76,346,772 76,233,814 
Funds Available for Distribution (FAD) (1)
$33,081 $31,775 $133,420 $132,852 
Dividends
Dividends declared and paid$25,436 $24,609 $101,571 $98,248 
Dividends declared and paid per share/unit$0.33 $0.32 $1.32 $1.28 

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.
        
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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)
image6.jpg
(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
2023202220232022
Funds Available for Distribution (FAD) (1)
FFO$43,400 $42,516 $184,190 $179,215 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (12,465)(14,013)(55,226)(47,880)
Net effect of straight-line rents (3)
(361)370 (4,135)(5,996)
Amortization of net above (below) market rents (4)
(748)(810)(3,085)(3,307)
Net effect of other lease assets (5)
26 45 199 191 
Amortization of debt issuance costs and debt fair value adjustment835 651 3,388 2,581 
Non-cash compensation expense2,584 3,198 8,838 8,689 
Nonforfeitable dividends on restricted stock awards(190)(182)(749)(641)
FAD$33,081 $31,775 $133,420 $132,852 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $3,306 $7,032 $21,190 $27,698 
Maintenance capital expenditures9,159 6,981 34,036 20,182 
$12,465 $14,013 $55,226 $47,880 

Notes:
(1)    See Glossary of Terms.
(2)    For the three months and year ended December 31, 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.


Fourth Quarter 2023 Supplemental InformationPage
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CORPORATE GUIDANCE
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(Amounts in thousands, except share and per share data)
2024 Guidance Range (1)
Funds from Operations (FFO):
Net income$54,633 $65,330 
Depreciation and amortization of real estate assets113,470 113,470 
FFO, as defined by NAREIT168,103 178,800 
Less: Nonforfeitable dividends on restricted stock awards(772)(772)
FFO attributable to common stock and units$167,331 $178,028 
Weighted average number of common shares and units, diluted76,406,801 76,406,801 
FFO per diluted share, updated$2.19 $2.33 

Notes:
(1)    Management will discuss the company's guidance in more detail during tomorrow's earnings call. Except as discussed during the call, the company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financing 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.

Fourth Quarter 2023 Supplemental InformationPage
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SAME-STORE NET OPERATING INCOME (NOI)
image6.jpg

(Unaudited, amounts in thousands)
Three Months Ended December 31, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$52,711 $27,096 $15,922 $16,754 $112,483 
Non-same store — — — 
Total52,719 27,096 15,922 16,754 112,491 
Real estate expenses
Same-store15,822 8,677 7,446 11,325 43,270 
Non-same store442 — — — 442 
Total16,264 8,677 7,446 11,325 43,712 
Net Operating Income (NOI)
Same-store36,889 18,419 8,476 5,429 69,213 
Non-same store(434)— — — (434)
Total$36,455 $18,419 $8,476 $5,429 $68,779 
Same-store NOI$36,889 $18,419 $8,476 $5,429 $69,213 
Net effect of straight-line rents (2)
(368)83 67 (144)(362)
Amortization of net above (below) market rents (3)
(489)(259)— — (748)
Net effect of other lease assets (4)
12 13 — — 25 
Tenant improvement reimbursements (5)
(504)(1)— — (505)
Same-store cash NOI (5)
$35,540 $18,255 $8,543 $5,285 $67,623 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on December 31, 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.

Fourth Quarter 2023 Supplemental InformationPage
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SAME-STORE NET OPERATING INCOME (NOI) (CONTINUED)
image6.jpg
(Unaudited, amounts in thousands)
Year Ended December 31, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$204,497 $104,767 $61,830 $66,711 $437,805 
Non-same store3,359 — — — 3,359 
Total207,856 104,767 61,830 66,711 441,164 
Real estate expenses
Same-store58,858 31,440 28,025 43,153 161,476 
Non-same store2,481 — — — 2,481 
Total61,339 31,440 28,025 43,153 163,957 
Net Operating Income (NOI)
Same-store145,639 73,327 33,805 23,558 276,329 
Non-same store878 — — — 878 
Total$146,517 $73,327 $33,805 $23,558 $277,207 
Same-store NOI$145,639 $73,327 $33,805 $23,558 $276,329 
Net effect of straight-line rents (2)
(4,449)324 189 (100)(4,036)
Amortization of net above (below) market rents (3)
(1,834)(1,039)— — (2,873)
Net effect of other lease assets (4)
148 50 — — 198 
Tenant improvement reimbursements (5)
(1,099)(5)— — (1,104)
Same-store cash NOI (5)
$138,405 $72,657 $33,994 $23,458 $268,514 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on December 31, 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.



Fourth Quarter 2023 Supplemental InformationPage
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SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT
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(Unaudited, amounts in thousands)Three Months Ended Year Ended
December 31,December 31,
20232022Change20232022Change
Cash Basis:
Office$35,540 $34,316 3.6 %$138,405 $133,490 3.7 %
Retail18,255 18,480 (1.2)72,657 69,491 4.6 
Multifamily8,543 8,271 3.3 33,994 32,224 5.5 
Mixed-Use5,285 4,869 8.5 23,458 21,734 7.9 
Same-store Cash NOI (2)(3)
$67,623 $65,936 2.6 %$268,514 $256,939 4.5 %

Notes:
(1)    Excluding lease termination fees, for the three months and year ended December 31, 2023 and 2022, the change in same-store cash NOI would be 2.7% and 4.5% 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.
Fourth Quarter 2023 Supplemental InformationPage
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SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT
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(Unaudited, amounts in thousands)Three Months EndedYear Ended
December 31,December 31,
20232022Change20232022Change
Cash Basis:
Office$35,385 $34,147 3.6 %$137,747 $133,016 3.6 %
Retail18,255 18,480 (1.2)72,657 69,491 4.6 
Multifamily8,543 8,271 3.3 33,994 32,224 5.5 
Mixed-Use5,285 4,869 8.5 23,458 21,734 7.9 
Same-store Cash NOI with Redevelopment (1)(2)
$67,468 $65,767 2.6 %$267,856 $256,465 4.4 %

Notes:
(1)    Excluding lease termination fees, for the three months and year ended December 31, 2023 and 2022, the change in same-store cash NOI with redevelopment would be 2.8% and 4.4% 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.




Fourth Quarter 2023 Supplemental InformationPage
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CASH NOI BY REGION
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(Unaudited, amounts in thousands)Three Months Ended December 31, 2023
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California$14,811 $8,457 $7,372 $— $30,640 
Northern California7,485 2,874 — — 10,359 
Hawaii— 3,131 — 5,285 8,416 
Oregon5,228 187 1,171 — 6,586 
Texas— 3,607 — — 3,607 
Washington8,088 — — — 8,088 
Total Cash NOI$35,612 $18,256 $8,543 $5,285 $67,696 


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.


Fourth Quarter 2023 Supplemental InformationPage
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CASH NOI BREAKDOWN
image6.jpg
Three Months Ended December 31, 2023
Cash NOI Breakdown
Portfolio Diversification by Geographic RegionPortfolio Diversification by Segment
    

chart-8c774b96499a459581a.jpg    chart-db1e4bca3cd14a1eb93.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.
Fourth Quarter 2023 Supplemental InformationPage
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PROPERTY REVENUE AND OPERATING EXPENSES
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(Unaudited, amounts in thousands)Three Months Ended December 31, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$8,526 $181 $2,614 $(3,292)$— $8,029 
Torrey Reserve Campus (7)
6,571 78 502 (1,951)(579)4,621 
Torrey Point1,445 112 (18)(445)(318)776 
Solana Crossing2,123 11 161 (691)(124)1,480 
The Landmark at One Market10,266 75 683 (3,437)— 7,587 
One Beach Street — — — (102)— (102)
First & Main2,740 203 789 (1,142)53 2,643 
Lloyd Portfolio (7)
3,660 401 325 (1,493)(126)2,767 
City Center Bellevue 6,325 500 504 (1,851)73 5,551 
Eastgate Office Park1,145 24 581 (832)(54)864 
Corporate Campus East III1,123 57 477 (486)(7)1,164 
Bel-Spring 520535 12 239 (271)(6)509 
Subtotal Office Portfolio$44,459 $1,654 $6,857 $(15,993)$(1,088)$35,889 
Retail Portfolio
Carmel Country Plaza$972 $47 $255 $(265)$$1,011 
Carmel Mountain Plaza3,467 45 811 (876)85 3,532 
South Bay Marketplace613 166 232 (241)— 770 
Gateway Marketplace653 — 229 (273)(12)597 
Lomas Santa Fe Plaza1,660 16 385 (1,146)923 
Solana Beach Towne Centre1,668 20 586 (649)(1)1,624 
Del Monte Center 2,436 666 1,085 (1,584)(20)2,583 
Geary Marketplace307 — 109 (125)— 291 
The Shops at Kalakaua275 15 51 (100)— 241 
Waikele Center3,225 425 994 (1,759)2,890 
Alamo Quarry Market3,698 319 1,122 (1,535)3,607 
Hassalo on Eighth - Retail 248 22 41 (124)— 187 
Subtotal Retail Portfolio$19,222 $1,741 $5,900 $(8,677)$70 $18,256 

Fourth Quarter 2023 Supplemental InformationPage
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PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
image6.jpg
(Unaudited, amounts in thousands)Three Months Ended December 31, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$4,246 $297 $— $(1,804)$(77)$2,662 
Imperial Beach Gardens1,160 81 — (513)— 728 
Mariner's Point564 33 — (246)— 351 
Santa Fe Park RV Resort416 37 — (276)— 177 
Pacific Ridge Apartments5,929 214 — (2,606)(83)3,454 
Hassalo on Eighth - Multifamily2,876 385 — (2,002)(88)1,171 
Subtotal Multifamily Portfolio$15,191 $1,047 $ $(7,447)$(248)$8,543 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$2,235 $1,235 $907 $(1,725)$(13)$2,639 
Waikiki Beach Walk - Embassy Suites™10,470 1,776 — (9,600)— 2,646 
Subtotal Mixed-Use Portfolio$12,705 $3,011 $907 $(11,325)$(13)$5,285 
Subtotal Development Properties$ $5 $ $(282)$ $(277)
Total$91,577 $7,458 $13,664 $(43,724)$(1,279)$67,696 
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 December 31, 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 $1.5 million for the three months ended December 31, 2023. Total abatements for our retail portfolio and mixed-use portfolio were minimal for the three months ended December 31, 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 $0.2 million of abatements for our multifamily portfolio for the three months ended December 31, 2023. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended December 31, 2023. Total tenant improvement reimbursements for our office portfolio, retail portfolio and the retail portion of our mixed-use portfolio were approximately $0.5 million in the aggregate for the three months ended December 31, 2023.
(2)    Represents additional property-related income for the three months ended December 31, 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 December 31, 2023.
(4)    Represents property operating expenses for the three months ended December 31, 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 December 31, 2023.


Fourth Quarter 2023 Supplemental InformationPage
17

SEGMENT CAPITAL EXPENDITURES
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(Unaudited, amounts in thousands)Three Months Ended December 31, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$2,071 $5,429 $7,500 $968 $6,226 $14,694 
Retail Portfolio1,192 1,866 3,058 — — 3,058 
Multifamily Portfolio— 1,396 1,396 — — 1,396 
Mixed-Use Portfolio43 468 511 — — 511 
Total$3,306 $9,159 $12,465 $968 $6,226 $19,659 
Year Ended December 31, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$15,010 $21,665 $36,675 $7,251 $27,410 $71,336 
Retail Portfolio5,668 3,188 8,856 — 8,856 
Multifamily Portfolio— 5,902 5,902 — 5,902 
Mixed-Use Portfolio512 3,281 3,793 — 3,793 
Total$21,190 $34,036 $55,226 $7,251 $27,410 $89,887 

Fourth Quarter 2023 Supplemental InformationPage
18

SUMMARY OF OUTSTANDING DEBT
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(Unaudited, amounts in thousands)Amount
Outstanding atAnnual Debt
DebtDecember 31, 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 %8,378 January 5, 2025
Term Loan C (5)
75,000 5.47 %4,189 January 5, 2025
Series F Notes (6)
100,000 3.85 %103,654 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 %$165,576 
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 $0.33 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.
(4)    On January 5, 2023, the fully-drawn borrowings on Term Loan B were increased from $100 million to $150 million and the maturity date was extended from March 1, 2023 to January 5, 2025, with one, twelve-month extension option. Prior thereto, we entered into forward starting interest rate swaps that are intended to fix the interest rate on the $150 million Term Loan B at approximately 5.47% for the first year of the extended term loan and 5.57% for the second year of the extended term loan, subject to adjustments based on our consolidated leverage ratio.
(5)    On January 5, 2023, the fully-drawn borrowings on Term Loan C were increased from $50 million to $75 million and the maturity date was extended from March 1, 2023 to January 5, 2025, with one, twelve-month extension option. Prior thereto, we entered into forward starting interest rate swaps that are intended to fix the interest rate on the $75 million Term Loan C at approximately 5.47% for the first year of the extended term loan and 5.57% for the second year of the extended term loan, subject to adjustments based on our consolidated leverage ratio.
(6)    $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity.
(7)    $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity.
(8)    $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity.
(9)    $150 million of 3.91% Senior Guaranteed Notes, Series G, due July 30, 2030. Net of the settlement of the treasury lock contract, the effective interest rate for the Series G Notes is approximately 3.88% through maturity.
(10)    $500 million of 3.375% Senior Unsecured Notes due February 1, 2031. Net of debt issuance discount, the effective interest rate for the 3.375% Notes is approximately 3.502% through maturity.
(11)    The Unsecured Notes Payable total does not include debt issuance costs and discounts, net of $10.0 million.
(12)    The unsecured revolving line of credit (the "Revolver Loan") has a capacity of $400 million plus an accordion feature that may allow us to increase the availability thereunder up to an additional $400 million, subject to meeting specified requirements and obtaining additional commitments from lenders. The Revolver Loan matures on January 5, 2026, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six-month period. The Revolver Loan currently accrues interest at SOFR, plus the applicable SOFR adjustment and a spread which ranges from 1.05%-1.50%, based on our consolidated leverage ratio. The Revolver Loan total does not include debt issuance costs, net of $1.3 million.