SEC Filing - American Assets Trust, Inc.

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aat-20201027

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 27, 2020

_________________________

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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.)

11455 El Camino Real, Suite 200

San Diego, California 92130

(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 Registrant	Title of each class	Trading Symbol	Name of each exchange on which registered
American Assets Trust, Inc.	Common Stock, par value $0.01 per share	AAT	New 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 27, 2020, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending September 30, 2020. Also on October 27, 2020, 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, 2020. 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, 2020 and made available on its website certain supplement 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**						Press release issued by American Assets Trust, Inc. on October 27, 2020.
99.2**						American Assets Trust, Inc. Supplemental Information for the quarter ended September 30, 2020.
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

_____________________

** Furnished herewith

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 27, 2020

Document

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American Assets Trust, Inc. Reports Third Quarter 2020 Financial Results and COVID-19 Operational Update

Net income available to common stockholders of $5.0 million and $24.8 million for the three and nine months ended September 30, 2020, respectively, or $0.08 and $0.41 per diluted share, respectively

Funds From Operations per diluted share decreased 23% and 9% year-over-year for the three and nine months ended September 30, 2020, respectively, or $0.44 and $1.48 per diluted share, respectively

Collected 89% to date of rents that were due during the third quarter

SAN DIEGO, California - 10/27/2020 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its third quarter ended September 30, 2020.

Third Quarter Highlights

•Net income available to common stockholders of $5.0 million and $24.8 million for the three and nine months ended September 30, 2020, respectively, or $0.08 and $0.41 per diluted share, respectively

•Funds From Operations decreased 23% and 9% year-over-year to $0.44 and $1.48 per diluted share for the three and nine months ended September 30, 2020, respectively, compared to the same periods in 2019

•Same-store cash NOI decreased 2.7% and 2.9% year-over-year for the three and nine months ended September 30, 2020, respectively. Excluding lease termination fees, same-store cash NOI would have been (3.4)% and (3.7)% for the three and nine months ended September 30, 2020, respectively

•Increased same-store cash NOI to $50.1 million for the three months ended September 30, 2020 compared to $42.4 million for the three months ended June 30, 2020

•For the three months ended September 30, 2020, we have collected 98% of office rents, 73% of retail rents (including the retail component of Waikiki Beach Walk) and 94% of multifamily rents, that were due during the third quarter

•Totals collections increased to 89% in the third quarter compared to 83% in the second quarter

•Leased approximately 55,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 11% and 7%, respectively, during the three months ended September 30, 2020

•Leased approximately 71,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent decrease of 4% and 6%, respectively, during the three months ended September 30, 2020

•Embassy Suites Waikiki hotel average occupancy increased to 66% in the third quarter compared to 17% in the second quarter

Financial Results

Net income attributable to common stockholders was $5.0 million, or $0.08 per basic and diluted share for the three months ended September 30, 2020 compared to $12.9 million, or $0.22 per basic and diluted share for the three months ended September 30, 2019. For the nine months ended September 30, 2020, net income attributed to common stockholders was $24.8 million, or $0.41 per basic and diluted share compared to $32.9 million, or $0.63 per basic and diluted share for the nine months ended September 30, 2019. The year-over-year decrease in net income attributable to common stockholders is primarily due to the increase in reserve for bad debts of rent receivables of approximately $9.8 million primarily at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, and Waikiki Beach Walk Retail, a decrease in lease termination fees at Carmel Mountain Plaza attributed to the termination of our former ground lease, and a decrease in revenue at our Waikiki Beach Walk Retail and

Embassy Suites Hotel due to the COVID-19 pandemic causing a decline in occupancy, partially offset by an incremental increase in revenue from the acquisition of La Jolla Commons on June 20, 2019 and an increase in annualized base rents at The Landmark at One Market, Lloyd District Portfolio, City Center Bellevue, and Torrey Point.

During the third quarter of 2020, the company generated funds from operations (“FFO”) for common stockholders of $33.3 million, or $0.44 per diluted share, compared to $43.0 million, or $0.57 per diluted share, for the third quarter of 2019. For the nine months ended September 30, 2020, the company generated FFO for common stockholders of $112.4 million, or $1.48 per diluted share, compared to $112.5 million, or $1.63 per diluted share, for the nine months ended September 30, 2019. The decrease in FFO from the corresponding period in 2019 was primarily due to the increase in reserve for bad debts of rent receivables of approximately $9.8 million primarily at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center and Waikiki Beach Walk Retail, a decrease in lease termination fees at Carmel Mountain Plaza attributed to the termination of our former ground lease, and a decrease in revenue at our Waikiki Beach Walk Retail and Embassy Suites Hotel due to the COVID-19 pandemic causing a decline in occupancy, partially offset by an increase in revenue from the acquisition of La Jolla Commons on June 20, 2019 and an increase in annualized base rents at The Landmark at One Market, Lloyd District Portfolio, City Center Bellevue, and Torrey Point.

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

Leasing

The portfolio leased status as of the end of the indicated quarter was as follows:


	September 30, 2020	June 30, 2020	September 30, 2019
Total Portfolio
Office	93.8%	94.4%	94.7%
Retail	95.0%	94.7%	98.0%
Multifamily	87.5%	85.1%	90.5%
Mixed-Use:
Retail	87.8%	95.7%	98.0%
Hotel	52.8%	46.4%	92.1%

Same-Store Portfolio
Office ⁽¹⁾	96.1%	96.4%	94.5%
Retail ⁽²⁾	94.2%	93.8%	97.7%
Multifamily	87.5%	85.1%	90.5%

(1) Same-store office leased percentages includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019 after renovating the building. Same-store office leased percentages excludes One Beach Street due to significant redevelopment activity.

(2) Same-store retail leased percentages exclude Waikele Center, due to significant redevelopment activity.

During the third quarter of 2020, the company signed 31 leases for approximately 130,600 square feet of office and retail space, as well as 697 multifamily apartment leases. Renewals accounted for 100% of the comparable office leases, 100% of the comparable retail leases, and 45% 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 2020 and trailing four quarters ended September 30, 2020, our retail and office leasing spreads are shown below:


		Number of Leases Signed	Comparable 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
Office	Q3 2020	9	55,000		6.7%		$46.01	$43.11		10.8%
		Last 4 Quarters	35	357,000		21.8%		$49.37	$40.53		31.7%

Retail	Q3 2020	21	71,000		(6.2)%		$29.29	$31.23		(3.6)%
		Last 4 Quarters	57	190,000		(3.3)%		$36.32	$37.57		3.5%

Multifamily

The average monthly base rent per leased unit for same-store properties for the third quarter of 2020 was $2,193 compared to an average monthly base rent per leased unit of $2,073 for the third quarter of 2019, which is an increase of approximately 6%.

Same-Store Cash Net Operating Income

For the three and nine months ended September 30, 2020, same-store cash NOI decreased 2.7% and 2.9%, respectively, compared to the three and nine months ended September 30, 2019. The same-store cash NOI by segment was as follows (in thousands):


	Three Months Ended ⁽¹⁾									Nine Months Ended ⁽²⁾
	September 30,									September 30,
	2020		2019		Change				2020			2019		Change






Cash Basis:
Office ⁽³⁾	$	27,026	$	23,841	13.4		$	61,452		$	53,270		15.4	%
Retail ⁽³⁾	11,171		15,221		(26.6)	%	34,730			44,878			(22.6)
Multifamily	6,967		7,367		(5.4)		21,789			23,353			(6.7)
Mixed-Use	—		—		—		—			—			—
Same-store Cash NOI ⁽³⁾	$	45,164	$	46,429	(2.7)	%	$	117,971		$	121,501		(2.9)	%

(1) Same-store portfolio excludes (i) Waikele Center due to significant redevelopment activity; (ii) One Beach Street due to significant redevelopment activity; (iii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iv) land held for development.

(2) Same-store portfolio excludes (i) Waikele Center due to significant redevelopment activity; (ii) La Jolla Commons, which was acquired on June 20, 2019; (iii) One Beach Street due to significant redevelopment activity; (iv) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (v) land held for development.

(3) Same-store cash NOI for the three and nine months ended September 30, 2020 includes cash lease termination fees received of $1.1 million and $1.8 million, respectively. Excluding lease termination fees for the three and nine months ended September 30, 2020, office same-store cash NOI would have been 15.0% and 15.7%, respectively.

(4) Excluding lease termination fees for the three and nine months September 30, 2020, same-store cash NOI would have been (3.4)% and (3.7)%, respectively.

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, 2020, the company had gross real estate assets of $3.2 billion and liquidity of $405.3 million, comprised of cash and cash equivalents of $155.3 million and $250.0 million of availability on its line of credit, which the company believes is sufficient to meet the company's short-term liquidity requirements. At September 30, 2020, the company has no debt obligations maturing during the remainder of 2020; and only 1 out of 28 assets encumbered by a mortgage. The company has exercised its option to extend the maturity date of its $100 million term loan from January 9, 2021 to January 9, 2022. As a result, the company has $150 million of debt obligations maturing in 2021.

Dividends

The company declared dividends on its shares of common stock of $0.25 per share for the third quarter of 2020. The dividends were paid on September 24, 2020.

In addition, the company has declared a dividend on its common stock of $0.25 per share for the fourth quarter of 2020. The dividend will be paid in cash on December 24, 2020 to stockholders of record on December 10, 2020. The company maintained the dividend of $0.25 per share in the fourth quarter based on the company's rent collection in the third quarter.

COVID-19 Operational Update

Operations

As of September 30, 2020, we have entered into lease modifications that resulted in COVID-19 adjustments (including rent deferrals and other monetary lease concessions) for approximately 2% of the rent originally contracted for the three months ended September 30, 2020. Furthermore, as of September 30, 2020 and specific to the impact of COVID-19 on our retail sector (including the retail component of Waikiki Beach Walk Retail and Embassy Suites Hotel) for the three months ended September 30, 2020, we have recorded an allowance for doubtful accounts against accounts receivable of approximately 21% and an allowance for doubtful accounts against deferred rent receivables (straight-line rent receivables) of approximately 11%.

Rent Collection for the Third Quarter of 2020 and October 2020⁽¹⁾


	July	August	September	Q3 Average	October
Office	98.3%	98.7%	97.5%	98.2%	97.4%
Retail	80.0%	75.9%	82.6%	79.4%	77.3%
Multifamily	94.4%	94.6%	94.2%	94.4%	94.3%
Mixed-Use ⁽²⁾	34.2%	28.2%	28.2%	30.3%	24.5%
Average	89.3%	88.4%	89.0%	88.9%	87.4%

(1) Data as of October 27, 2020.

(2) Includes only the retail portion of Waikiki Beach Walk Retail and Embassy Suites Hotel.

Rent Deferrals

As of October 1, 2020, we have entered into deferral agreements for $7.0 million of recurring rents related to second and third quarters of 2020. The weighted average payback period of the deferral agreements is approximately 28 months. Revenue from approximately 80% of tenants with deferral agreements is recognized on a straight-line basis.

Conference Call

The company will hold a conference call to discuss the results for the third quarter of 2020 on Wednesday, October 28, 2020 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-877-868-5513 and use the pass code 7475607. A telephonic replay of the conference call will be available beginning at 2:00 p.m. PT on Wednesday, October 28, 2020 through Wednesday, November 4, 2020. To access the replay, dial 1-855-859-2056 and use the pass code 7475607. 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 2020 results may be found on 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.

Financial Information

American Assets Trust, Inc.

Consolidated Balance Sheets

(In Thousands, Except Share Data)


	September 30, 2020			December 31, 2019

Assets	(unaudited)
Real estate, at cost
Operating real estate	$	3,147,237	$	3,096,886
Construction in progress		81,485		91,264
Held for development		547		547
		3,229,269		3,188,697
Accumulated depreciation		(730,705)		(665,222)
Net real estate		2,498,564		2,523,475
Cash and cash equivalents		155,327		99,303
Restricted cash		1,231		10,148
Accounts receivable, net		12,018		12,016
Deferred rent receivables, net		68,752		52,171
Other assets, net		108,222		93,220

Total assets	$	2,844,114	$	2,790,333
Liabilities and equity
Liabilities:
Secured notes payable, net	$	110,913	$	161,879
Unsecured notes payable, net		1,196,547		1,195,780
Unsecured line of credit, net		99,049		—
Accounts payable and accrued expenses		71,837		62,576
Security deposits payable		6,530		8,316
Other liabilities and deferred credits, net		93,256		68,110

Total liabilities		1,578,132		1,496,661
Commitments and contingencies
Equity:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,282,929 and 60,068,228 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		603		601
Additional paid-in capital		1,443,764		1,452,014
Accumulated dividends in excess of net income		(164,462)		(144,378)
Accumulated other comprehensive income		1,034		5,680
Total American Assets Trust, Inc. stockholders' equity		1,280,939		1,313,917
Noncontrolling interests		(14,957)		(20,245)
Total equity		1,265,982		1,293,672
Total liabilities and equity	$	2,844,114	$	2,790,333

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,
	2020		2019		2020		2019
Revenue:
Rental income	$	80,759	$	93,147	$	252,059	$	249,634
Other property income	3,615		5,215		11,167		18,160
Total revenue	84,374		98,362		263,226		267,794
Expenses:
Rental expenses	19,208		23,989		58,757		66,611
Real estate taxes	11,491		10,942		31,497		29,263
General and administrative	6,438		6,479		19,937		18,495
Depreciation and amortization	26,914		26,568		80,869		69,733
Total operating expenses	64,051		67,978		191,060		184,102
Operating income	20,323		30,384		72,166		83,692
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633

Other income (expense), net	(531)		(131)		(261)		(410)
Net income	6,490		16,519		31,800		43,703
Net income attributable to restricted shares	(87)		(92)		(260)		(277)
Net income attributable to unitholders in the Operating Partnership	(1,365)		(3,565)		(6,778)		(10,553)
Net income attributable to American Assets Trust, Inc. stockholders	$	5,038	$	12,862	$	24,762	$	32,873

Net income per share
Basic income attributable to common stockholders per share	$	0.08	$	0.22	$	0.41	$	0.63
Weighted average shares of common stock outstanding - basic	59,825,174		59,441,887		59,757,709		52,239,668

Diluted income attributable to common stockholders per share	$	0.08	$	0.22	$	0.41	$	0.63
Weighted average shares of common stock outstanding - diluted	76,118,032		75,832,435		76,115,456		69,010,772

Dividends declared per common share	$	0.25	$	0.28	$	0.75	$	0.84

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, 2020			September 30, 2020
Funds From Operations (FFO)
Net income	$	6,490	$	31,800
Depreciation and amortization of real estate assets		26,914		80,869

FFO, as defined by NAREIT	$	33,404	$	112,669
Less: Nonforfeitable dividends on restricted stock awards		(85)		(255)
FFO attributable to common stock and units	$	33,319	$	112,414
FFO per diluted share/unit	$	0.44	$	1.48
Weighted average number of common shares and units, diluted		76,118,264		76,117,040

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,
	2020		2019		2020		2019
Same-store cash NOI	45,164		$	46,429	$	117,971	$	121,501
Non-same-store cash NOI	2,675		9,773		28,977		33,832
Tenant improvement reimbursements ⁽³⁾	2,264		1,060		5,093		8,473
Cash NOI	$	50,103	$	57,262	$	152,041	$	163,806
Non-cash revenue and other operating expenses ⁽⁴⁾	3,572		6,169		20,931		8,114
General and administrative	(6,438)		(6,479)		(19,937)		(18,495)
Depreciation and amortization	(26,914)		(26,568)		(80,869)		(69,733)
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633
Other income (expense), net	(531)		(131)		(261)		(410)
Net income	$	6,490	$	16,519	$	31,800	$	43,703

Number of properties included in same-store analysis	25		24		24		24

(1) Same-store portfolio includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019 after renovating the building. Same-store portfolio excludes (i) Waikele Center, due to significant redevelopment activity; (ii) One Beach Street, due to significant redevelopment activity; (iii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iv) land held for development.

(2) Same-store portfolio includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019 after renovating the building. Same-store portfolio excludes (i) Waikele Center, due to significant redevelopment activity; (ii) La Jolla Commons, which was acquired on June 20, 2019; (iii) One Beach Street, due to significant redevelopment activity; (iv) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (v) 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; net change in lease receivables, the amortization of above (below) market rents, the amortization of lease incentives paid to tenants, the amortization of other lease intangibles, lease termination fees at Carmel Mountain Plaza, 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.

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, or 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 cash net operating income ("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, net change in lease receivables, 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.

About American Assets Trust, Inc.

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 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, Oregon, Washington, Texas and Hawaii. The company's office portfolio comprises approximately 3.4 million rentable square feet, and its retail portfolio comprises approximately 3.1 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 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. While forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Currently, one of the most significant risk factors, is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the company, its tenants and guests, the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts the company, its tenants and guests will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. 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

Document



			THIRD QUARTER 2020
			Supplemental Information

https://cdn.kscope.io/e26b17f70827d815d0bce70219a8f885-supplementcoverq42019v2a011.jpg





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

American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets

with favorable supply/demand characteristics







	Office	Retail	Multifamily			Mixed-Use
Market	Square Feet	Square Feet	Units			Square Feet		Suites
San Diego	1,549,860	1,322,817	1,455	(1)	—		—

San Francisco	520,040	35,159	—		—		—

Oahu	—	429,718	—		96,707		369

Monterey	—	673,572	—		—		—

San Antonio	—	588,148	—		—		—

Portland	876,491	44,236	657		—		—

Seattle	497,488	—	—		—		—

Total	3,443,879	3,093,650	2,112		96,707		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. Size of circle denotes approximation of square feet / units. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.	Office		3.4	million		52%		62%
		Retail		3.1	million		48%		24%
Data is as of September 30, 2020.	Totals		6.5	million
(1) Includes 122 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended September 30, 2020. Reconciliation of NOI to net income is included in the Glossary of Terms.


Third Quarter 2020 Supplemental Information			Page



INDEX


	THIRD QUARTER 2020 SUPPLEMENTAL INFORMATION
1.	FINANCIAL HIGHLIGHTS
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution	7

	Same-Store Net Operating Income (NOI)	9
	Same-Store Cash NOI Comparison excluding Redevelopment	11
	Same-Store Cash NOI Comparison with Redevelopment	12
	Cash NOI By Region	13
	Cash NOI Breakdown	14
	Property Revenue and Operating Expenses	15
	Segment Capital Expenditures	17
	Summary of Outstanding Debt	18
	Market Capitalization	19
	Summary of Development Opportunities	20
2.	PORTFOLIO DATA
	Property Report	22
	Office Leasing Summary	25
	Retail Leasing Summary	26
	Multifamily Leasing Summary	27
	Mixed-Use Leasing Summary	29
	Lease Expirations	30
	Portfolio Leased Statistics	32
	Top Tenants - Office	33
	Top Tenants - Retail	34
3.	APPENDIX
	Glossary of Terms	36

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; our failure to generate sufficient cash flows to service our outstanding indebtedness; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; difficulties in identifying properties to acquire and completing acquisitions; difficulties in completing dispositions; our failure to successfully operate acquired properties and operations; our inability to develop or redevelop our properties due to market conditions; fluctuations in interest rates and increased operating costs; risks related to joint venture arrangements; our failure to obtain necessary outside financing; on-going litigation; general economic conditions; financial market fluctuations; risks that affect the general retail, office, multifamily and mixed-use environment; the competitive environment in which we operate; decreased rental rates or increased vacancy rates; 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 us 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. Currently, one of the most significant risk factors, is the potential adverse effect of the current COVID-19 pandemic on our financial condition, results of operations, cash flows and performance or that of, our tenants and guests, the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts us, our tenants and guests will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.

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 2020 Supplemental Information			Page

FINANCIAL HIGHLIGHTS


Third Quarter 2020 Supplemental Information			Page



CONSOLIDATED BALANCE SHEETS


(Amounts in thousands, except shares and per share data)	September 30, 2020		December 31, 2019

ASSETS	(unaudited)		(audited)
Real estate, at cost
Operating real estate	$	3,147,237	$	3,096,886
Construction in progress	81,485		91,264
Held for development	547		547
	3,229,269		3,188,697
Accumulated depreciation	(730,705)		(665,222)
Net real estate	2,498,564		2,523,475
Cash and cash equivalents	155,327		99,303
Restricted cash	1,231		10,148

Accounts receivable, net	12,018		12,016
Deferred rent receivable, net	68,752		52,171
Other assets, net	108,222		93,220

TOTAL ASSETS	$	2,844,114	$	2,790,333
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net	$	110,913	$	161,879
Unsecured notes payable, net	1,196,547		1,195,780
Unsecured line of credit, net	99,049		—
Accounts payable and accrued expenses	71,837		62,576
Security deposits payable	6,530		8,316
Other liabilities and deferred credits, net	93,256		68,110

Total liabilities	1,578,132		1,496,661
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,282,929 and 60,068,228 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	603		601
Additional paid in capital	1,443,764		1,452,014
Accumulated dividends in excess of net income	(164,462)		(144,378)
Accumulated other comprehensive income	1,034		5,680
Total American Assets Trust, Inc. stockholders' equity	1,280,939		1,313,917
Noncontrolling interests	(14,957)		(20,245)
Total equity	1,265,982		1,293,672
TOTAL LIABILITIES AND EQUITY	$	2,844,114	$	2,790,333


Third Quarter 2020 Supplemental Information			Page



CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
REVENUE:
Rental income	$	80,759	$	93,147	$	252,059	$	249,634
Other property income	3,615		5,215		11,167		18,160
Total revenue	84,374		98,362		263,226		267,794
EXPENSES:
Rental expenses	19,208		23,989		58,757		66,611
Real estate taxes	11,491		10,942		31,497		29,263
General and administrative	6,438		6,479		19,937		18,495
Depreciation and amortization	26,914		26,568		80,869		69,733
Total operating expenses	64,051		67,978		191,060		184,102
OPERATING INCOME	20,323		30,384		72,166		83,692
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633
Other (expense) income, net	(531)		(131)		(261)		(410)
NET INCOME	6,490		16,519		31,800		43,703
Net income attributable to restricted shares	(87)		(92)		(260)		(277)
Net income attributable to unitholders in the Operating Partnership	(1,365)		(3,565)		(6,778)		(10,553)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS	$	5,038	$	12,862	$	24,762	$	32,873

EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share	$	0.08	$	0.22	$	0.41	$	0.63
Weighted average shares of common stock outstanding - basic	59,825,174		59,441,887		59,757,709		52,239,668
Diluted income from continuing operations attributable to common stockholders per share	$	0.08	$	0.22	$	0.41	$	0.63
Weighted average shares of common stock outstanding - diluted	76,118,032		75,832,435		76,115,456		69,010,772


Third Quarter 2020 Supplemental Information			Page



FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
Funds from Operations (FFO) ⁽¹⁾
Net income	$	6,490	$	16,519	$	31,800	$	43,703
Depreciation and amortization of real estate assets	26,914		26,568		80,869		69,733
Gain on sale of real estate	—		—		—		(633)
FFO, as defined by NAREIT	33,404		43,087		112,669		112,803

Less: Nonforfeitable dividends on restricted stock awards	(85)		(88)		(255)		(273)
FFO attributable to common stock and common units	$	33,319	$	42,999	$	112,414	$	112,530

FFO per diluted share/unit	$	0.44	$	0.57	$	1.48	$	1.63

Weighted average number of common shares and common units, diluted ⁽²⁾	76,118,264		75,833,650		76,117,040		69,012,122

Funds Available for Distribution (FAD) ⁽¹⁾	$	18,257	$	14,724	$	47,459	$	40,804













Dividends
Dividends declared and paid	$	19,116	$	21,353	$	57,346	$	57,667
Dividends declared and paid per share/unit	$	0.25	$	0.28	$	0.75	$	0.84


Third Quarter 2020 Supplemental Information			Page



FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
Funds Available for Distribution (FAD) ⁽¹⁾
FFO	$	33,404	$	43,087	$	112,669	$	112,803
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures	(13,108)		(23,608)		(48,885)		(68,067)
Net effect of straight-line rents ⁽³⁾	(4,294)		(5,140)		(14,170)		(1,091)
Amortization of net above (below) market rents ⁽⁴⁾	(887)		(1,062)		(2,789)		(2,781)
Net effect of other lease assets ⁽⁵⁾	1,609		33		(3,973)		(4,242)
Amortization of debt issuance costs and debt fair value adjustment	367		372		1,109		1,096
Non-cash compensation expense	1,251		1,130		3,753		3,359


Nonforfeitable dividends on restricted stock awards	(85)		(88)		(255)		(273)

FAD	$	18,257	$	14,724	$	47,459	$	40,804

Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	10,084	$	14,518	$	33,008	$	40,237
Maintenance capital expenditures	3,024		9,090		15,877		27,830
	$	13,108	$	23,608	$	48,885	$	68,067

Notes:

(1) See Glossary of Terms.

(2) For the three and nine months ended September 30, 2020 and 2019, 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, net change in lease receivables, lease termination fees at Carmel Mountain Plaza and straight-line rent expense for our leases at the Annex at The Landmark at One Market.


Third Quarter 2020 Supplemental Information			Page



SAME-STORE NET OPERATING INCOME (NOI)


(Unaudited, amounts in thousands)	Three Months Ended September 30, 2020
	Office		Retail		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store	$	44,526	$	16,734	$	12,564	$	—	$	73,824
Non-same store ⁽¹⁾	295		3,887		—		6,368		10,550
Total	44,821		20,621		12,564		6,368		84,374
Real estate expenses
Same-store	11,199		6,148		5,603		—		22,950
Non-same store ⁽¹⁾	396		1,647		—		5,706		7,749
Total	11,595		7,795		5,603		5,706		30,699
Net Operating Income (NOI)
Same-store	33,327		10,586		6,961		—		50,874
Non-same store ⁽¹⁾	(101)		2,240		—		662		2,801
Total	$	33,226	$	12,826	$	6,961	$	662	$	53,675
Same-store NOI	$	33,327	$	10,586	$	6,961	$	—	$	50,874
Net effect of straight-line rents ⁽²⁾	(3,744)		(866)		23		—		(4,587)
Amortization of net above (below) market rents ⁽³⁾	(592)		(261)		—		—		(853)
Net effect of other lease assets ⁽⁴⁾	298		1,713		(17)		—		1,994
Tenant improvement reimbursements ⁽⁵⁾	(2,263)		(1)		—		—		(2,264)
Same-store cash NOI ⁽⁵⁾	$	27,026	$	11,171	$	6,967	$	—	$	45,164

Notes:

(1) Same-store and non-same store classifications are determined based on properties held on September 30, 2020 and 2019. 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, net change in lease receivables, 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 2020 Supplemental Information			Page



SAME-STORE NET OPERATING INCOME (NOI) (CONTINUED)


(Unaudited, amounts in thousands)	Nine Months Ended September 30, 2020
	Office		Retail		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store	$	100,114	$	55,512	$	37,852	$	—	$	193,478
Non-same store ⁽¹⁾	33,096		12,427		—		24,225		69,748
Total	133,210		67,939		37,852		24,225		263,226
Real estate expenses
Same-store	25,625		15,370		16,426		—		57,421
Non-same store ⁽¹⁾	9,364		4,663		—		18,806		32,833
Total	34,989		20,033		16,426		18,806		90,254
Net Operating Income (NOI)
Same-store	74,489		40,142		21,426		—		136,057
Non-same store ⁽¹⁾	23,732		7,764		—		5,419		36,915
Total	$	98,221	$	47,906	$	21,426	$	5,419	$	172,972
Same-store NOI	$	74,489	$	40,142	$	21,426	$	—	$	136,057
Net effect of straight-line rents ⁽²⁾	(7,674)		(1,744)		62		—		(9,356)
Amortization of net above (below) market rents ⁽³⁾	(1,258)		(817)		—		—		(2,075)
Net effect of other lease assets ⁽⁴⁾	985		(2,848)		301		—		(1,562)
Tenant improvement reimbursements ⁽⁵⁾	(5,090)		(3)		—		—		(5,093)
Same-store cash NOI ⁽⁵⁾	$	61,452	$	34,730	$	21,789	$	—	$	117,971

Notes:

(1) Same-store and non-same store are determined based on properties held on September 30, 2020 and 2019. 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.

(5) Tenant improvement reimbursements are excluded from Same-store Cash NOI to provide a more accurate measure of operating performance.


Third Quarter 2020 Supplemental Information			Page



SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT


(Unaudited, amounts in thousands)	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2020		2019		Change		2020		2019		Change
Cash Basis:
Office	$	27,026	$	23,841	13.4	%	$	61,452	$	53,270	15.4	%
Retail	11,171		15,221		(26.6)		34,730		44,878		(22.6)
Multifamily	6,967		7,367		(5.4)		21,789		23,353		(6.7)
Mixed-Use	—		—		—		—		—		—
Same-store Cash NOI ⁽¹⁾⁽²⁾	$	45,164	$	46,429	(2.7)	%	$	117,971	$	121,501	(2.9)	%

Notes:

(1) Excluding lease termination fees, for the three and nine months ended September 30, 2020 and 2019, same-store cash NOI would be (3.4)% and (3.7)%, 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 2020 Supplemental Information			Page



SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT


(Unaudited, amounts in thousands)	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2020		2019		Change		2020		2019		Change
Cash Basis:
Office	$	26,948	$	24,599	9.5	%	$	61,074	$	55,553	9.9	%
Retail	13,037		17,485		(25.4)		40,696		51,534		(21.0)
Multifamily	6,967		7,367		(5.4)		21,789		23,353		(6.7)
Mixed-Use	—		—		—		—		—		—
Same-store Cash NOI with Redevelopment ⁽¹⁾⁽²⁾	$	46,952	$	49,451	(5.1)	%	$	123,559	$	130,440	(5.3)	%

Notes:

(1) Excluding lease termination fees, for the three and nine months ended September 30, 2020 and 2019, same-store cash NOI with redevelopment would be (5.7)% and (4.5)%, 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 2020 Supplemental Information			Page



CASH NOI BY REGION


(Unaudited, amounts in thousands)	Three Months Ended September 30, 2020
	Office		Retail		Multifamily		Mixed-Use		Total
Cash Basis:




Southern California	12,050		7,532		5,774		—		25,356





Northern California	4,702		1,747		—		—		6,449





Hawaii	—		2,075		—		890		2,965





Oregon	5,349		181		1,193		—		6,723





Texas	—		1,504		—		—		1,504





Washington	7,106		—		—		—		7,106





Total Cash NOI	$	29,207	$	13,039	$	6,967	$	890	$	50,103

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 2020 Supplemental Information			Page



CASH NOI BREAKDOWN


Three Months Ended September 30, 2020


Cash NOI Breakdown

Portfolio Diversification by Geographic Region						Portfolio Diversification by Segment

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Third Quarter 2020 Supplemental Information			Page



PROPERTY REVENUE AND OPERATING EXPENSES


(Unaudited, amounts in thousands)	Three Months Ended September 30, 2020
			Additional				Property
			Property		Billed Expense		Operating		Rental		Cash
Property	Base Rent ⁽¹⁾		Income ⁽²⁾		Reimbursements ⁽³⁾		Expenses ⁽⁴⁾		Adjustments ⁽⁵⁾		NOI ⁽⁶⁾
Office Portfolio
La Jolla Commons	$	7,098	$	204	$	2,316	$	(2,565)	$	(561)	$	6,492
Torrey Reserve Campus ⁽⁷⁾	5,651		117		217		(1,498)		(742)		3,745
Torrey Point	761		74		—		(318)		(263)		254
Solana Crossing	2,147		41		101		(639)		(91)		1,559
The Landmark at One Market	9,336		68		52		(2,647)		(2,131)		4,678
One Beach Street	299		—		6		(281)		—		24
First & Main	2,779		124		504		(903)		(160)		2,344
Lloyd District Portfolio ⁽⁷⁾	3,831		308		205		(1,284)		51		3,111
City Center Bellevue	5,696		686		147		(1,347)		1,924		7,106
Subtotal Office Portfolio	$	37,598	$	1,622	$	3,548	$	(11,482)	$	(1,973)	$	29,313
Retail Portfolio
Carmel Country Plaza	$	757	$	280	$	224	$	(231)	$	(18)	$	1,012
Carmel Mountain Plaza	2,652		90		843		(946)		128		2,767
South Bay Marketplace	429		110		143		(218)		28		492
Gateway Marketplace	544		2		194		(222)		27		545
Lomas Santa Fe Plaza	1,502		8		321		(430)		(193)		1,208
Solana Beach Towne Centre	1,511		32		533		(540)		(28)		1,508
Del Monte Center	1,710		745		933		(1,293)		(612)		1,483
Geary Marketplace	192		—		142		(139)		69		264
The Shops at Kalakaua	104		24		57		(72)		97		210
Waikele Center	2,705		521		773		(1,647)		(487)		1,865
Alamo Quarry Market	2,505		404		1,021		(1,976)		(450)		1,504
Hassalo on Eighth - Retail	149		71		43		(83)		1		181
Subtotal Retail Portfolio	$	14,760	$	2,287	$	5,227	$	(7,797)	$	(1,438)	$	13,039


Third Quarter 2020 Supplemental Information			Page



PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)


(Unaudited, amounts in thousands)	Three Months Ended September 30, 2020
			Additional				Property
			Property		Billed Expense		Operating		Rental		Cash
Property	Base Rent ⁽¹⁾		Income ⁽²⁾		Reimbursements ⁽³⁾		Expenses ⁽⁴⁾		Adjustments ⁽⁵⁾		NOI ⁽⁶⁾
Multifamily Portfolio
Loma Palisades	$	3,412	$	211	$	—	$	(1,322)	$	(35)	$	2,266
Imperial Beach Gardens	878		69		—		(399)		1		549
Mariner's Point	444		28		—		(210)		(8)		254
Santa Fe Park RV Resort	431		28		—		(271)		—		188
Pacific Ridge Apartments	4,247		157		—		(1,865)		(22)		2,517
Hassalo on Eighth - Multifamily	2,548		299		—		(1,535)		(119)		1,193
Subtotal Multifamily Portfolio	$	11,960	$	792	$	—	$	(5,602)	$	(183)	$	6,967
Mixed-Use Portfolio
Waikiki Beach Walk - Retail	$	518	$	540	$	787	$	(1,494)	$	(177)	$	174
Waikiki Beach Walk - Embassy Suites™	4,680		248		—		(4,215)		3		716
Subtotal Mixed-Use Portfolio	$	5,198	$	788	$	787	$	(5,709)	$	(174)	$	890
Subtotal Development Properties	$	—	$	7	$	—	$	(115)	$	2	$	(106)
Total	$	69,516	$	5,496	$	9,562	$	(30,705)	$	(3,766)	$	50,103

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, 2020 (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 and retail portfolio were approximately $4,100 and $1,132, respectively, for the three months ended September 30, 2020. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended September 30, 2020. 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 $166 of abatements for our multifamily portfolio for the three months ended September 30, 2020. For Waikiki Beach Walk - Embassy Suites^TM, base rent is equal to the actual room revenue for the three months ended September 30, 2020. Total tenant improvement reimbursements for our office and retail portfolio were approximately $2,263 and $1, respectively, for the three months ended September 30, 2020. There were no tenant improvement reimbursements for the retail portion of our mixed-use portfolio for the three months ended September 30, 2020.

(2) Represents additional property-related income for the three months ended September 30, 2020, 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, 2020.

(4) Represents property operating expenses for the three months ended September 30, 2020. Property operating expenses includes all rental expenses, except non cash rent expense.

(5) Represents various rental adjustments related to base rent (deferrals, abatements, tenant improvement reimbursements, and net change in lease receivables).

(6) See Glossary of Terms.

(7) Base rent shown includes amounts related to American Assets Trust, L.P.'s corporate leases at Torrey Reserve Campus and Lloyd District Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent and abatements were both $402 for the three months ended September 30, 2020.


Third Quarter 2020 Supplemental Information			Page



SEGMENT CAPITAL EXPENDITURES


(Unaudited, amounts in thousands)	Three Months Ended September 30, 2020
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Office Portfolio	$	9,622	$	1,625	$	11,247	$	933	$	392	$	12,572
Retail Portfolio	462		277		739		8		—		747
Multifamily Portfolio	—		800		800		—		—		800
Mixed-Use Portfolio	—		322		322		—		—		322
Total	$	10,084	$	3,024	$	13,108	$	941	$	392	$	14,441



	Nine Months Ended September 30, 2020
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Office Portfolio	$	29,664	$	5,702	$	35,366	$	1,649	$	3,038	$	40,053
Retail Portfolio	3,322		3,786		7,108		2		—		7,110
Multifamily Portfolio	—		2,944		2,944		—		—		2,944
Mixed-Use Portfolio	22		3,445		3,467		—		—		3,467
Total	$	33,008	$	15,877	$	48,885	$	1,651	$	3,038	$	53,574


Third Quarter 2020 Supplemental Information			Page



SUMMARY OF OUTSTANDING DEBT


(Unaudited, amounts in thousands)	Amount
	Outstanding at				Annual Debt
Debt	September 30, 2020		Interest Rate		Service ⁽¹⁾		Maturity Date
City Center Bellevue ⁽²⁾	111,000		3.98	%	4,479		November 1, 2022
Secured Notes Payable / Weighted Average ⁽³⁾	$	111,000	3.98	%	$	4,479

Term Loan A ⁽⁴⁾	$	100,000	4.08	%	$	101,503	January 9, 2021
Series A Notes ⁽⁵⁾	150,000		3.88	%	6,060		October 31, 2021
Term Loan B ⁽⁶⁾	100,000		2.65	%	2,749		March 1, 2023
Term Loan C ⁽⁷⁾	50,000		2.64	%	1,371		March 1, 2023
Series F Notes ⁽⁸⁾	100,000		3.85	%	3,780		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 ⁽⁹⁾	250,000		3.87	%	10,725		March 1, 2027
Series E Notes ⁽¹⁰⁾	100,000		4.18	%	4,240		May 23, 2029
Series G Notes ⁽¹¹⁾	150,000		3.88	%	5,865		July 30, 2030
Unsecured Notes Payable / Weighted Average ⁽¹²⁾	$	1,200,000	3.86	%	$	145,243

Unsecured Line of Credit ⁽¹³⁾	$	100,000	1.38	%

Notes:

(1) Includes interest and principal payments due over the next twelve months.

(2) Interest only.

(3) The Secured Notes Payable total does not include debt issuance costs, net of $0.1 million.

(4) Term Loan A had an initial stated maturity of January 9, 2021, subject to our option to extend Term Loan A up to three times, with each such extension for a one-year period. In October 2020, we exercised our first option to extend the maturity date of Term Loan A from January 9, 2021 to January 9, 2022. 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 4.08%, subject to adjustments based on our consolidated leverage ratio.

(5) $150 million of 4.04% Senior Guaranteed Notes, Series A, due October 31, 2021. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series A Notes is approximately 3.88% per annum, through maturity.

(6) Term Loan B matures on March 1, 2023. Term Loan B accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.65%, subject to adjustments based on our consolidated leverage ratio.

(7) Term Loan C matures on March 1, 2023. Term Loan C accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.64%, subject to adjustments based on our consolidated leverage ratio.

(8) $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.

(9) $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.

(10) $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.

(11) $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.

(12) The Unsecured Notes Payable total does not include debt issuance costs, net of $3.5 million.

(13) The unsecured revolving line of credit (the "Revolver Loan") has a capacity of $350 million plus an accordion feature that may allow us to increase the availability thereunder up to an additional $250 million, subject to meeting specified requirements and obtaining additional commitments from lenders. The Revolver Loan matures on January 9, 2022, 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 LIBOR, plus 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 $1.0 million.


Third Quarter 2020 Supplemental Information			Page



MARKET CAPITALIZATION


(Unaudited, amounts in thousands, except per share data)

Market data	September 30, 2020
Common shares outstanding	60,283
Common units outstanding	16,181
Common shares and common units outstanding	76,464
Market price per common share	$	24.09
Equity market capitalization	$	1,842,018
Total debt	$	1,411,000
Total market capitalization	$	3,253,018
Less: Cash on hand	$	(155,327)
Total enterprise value	$	3,097,691

Total unencumbered assets, gross	$	3,287,884

Total debt/Total capitalization			43.4	%
Total debt/Total enterprise value			45.6	%
Net debt/Total enterprise value⁽¹⁾			40.5	%


Total unencumbered assets, gross/Unsecured debt			253.1	%

	Quarter Annualized		Trailing 12 Months
Total debt/Adjusted EBITDA ⁽²⁾⁽³⁾	7.6x		6.8x
Net debt/Adjusted EBITDA ^(1)(2)(3)	6.7x		6.0x
Interest coverage ratio ⁽⁴⁾	3.6x		3.9x
Fixed charge coverage ratio ⁽⁴⁾	3.6x		3.9x

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Weighted Average Fixed Interest Rate	2020	2021		2022		2023		2024		2025		2026		2027		2028		2029		2030		2031
		—	%	4.0	%	4.0	%	2.6	%	3.8	%	4.5	%	—	%	3.9	%	—	%	4.2	%	3.9	%	—	%


Total Weighed Average Fixed Interest Rate:			3.9%
Weighted Average Term to Maturity:			4.6 years

Credit Ratings

Rating Agency

Rating

Outlook

Fitch

BBB

Stable

Moody's

Baa3

Stable

Standard & Poors

BBB-

Stable

Notes:

(1) Net debt is equal to total debt less cash on hand.

(2) See Glossary of Terms for discussion of EBITDA and Adjusted EBITDA.

(3) As used here, Adjusted EBITDA represents the actual for the three months ended September 30, 2020, annualized.

(4) Calculated as Adjusted EBITDA divided by interest on borrowed funds, including capitalized interest and excluding debt fair value adjustments and loan fee amortization.

(5) Of this total, in October 2020 the company exercised an option to extend the maturity on $100 million from January 9, 2021 to January 9, 2022.


Third Quarter 2020 Supplemental Information			Page



SUMMARY OF DEVELOPMENT OPPORTUNITIES

Our portfolio has numerous potential opportunities to create future shareholder value. These opportunities could be subject to government approvals, lender consents, tenant consents, market conditions, availability of debt and/or equity financing, etc. Many of these opportunities are in their preliminary stages and may not ultimately come to fruition. This schedule will update as we modify various assumptions and markets conditions change. Square footages and units set forth below are estimates only and ultimately may differ materially from actual square footages and units.

Development Projects

Project Costs (in thousands) ⁽³⁾

Start
Date

Completion Date

Estimated Stabilized

Yield ⁽¹⁾

Rentable Square Feet

Percent
Leased

Estimated Stabilization Date ⁽²⁾

Cost Incurred to Date

Total Estimated Investment

Property

Location

Office Property:

Torrey Point

San Diego, CA

2015

July 31, 2017

6.75% - 7.75%

90,000

94.6%

2020

$45,943

$55,800

La Jolla Commons

University Town Center, San Diego, CA

TBD

214,000

—%

TBD

$24,227

TBD

One Beach Street

San Francisco, CA

TBD

85,000

15.8%

TBD

Development/Redevelopment Pipeline

Property

Property Type

Location

Estimated Rentable
Square Feet

Multifamily Units

Opportunity

Waikele Center

Retail

Honolulu, HI

90,000

N/A

Development of 90,000 square feet retail building (former KMart Space)

Lomas Santa Fe Plaza

Retail

Solana Beach, CA

45,000

N/A

Development of 45,000 square feet retail building

Lloyd District Portfolio - multiple phases ⁽⁴⁾

Mixed Use

Portland, OR

TBD

Phase 2A - Oregon Square

33,000

N/A

Remodel and repurpose a 33,000 square feet office building into flexible creative office space

Phase 2B - Oregon Square

TBD

Development of mixed-use residential tower and/or build-to-suit office tower

Notes:

(1) The estimated stabilized yield is calculated based on total estimated project costs, as defined above, when the project has reached stabilized occupancy.

(2) Based on management's estimation of stabilized occupancy (90%).

(3) Project costs exclude capitalized interest cost which is calculated in accordance with Accounting Standards Codification 835-20-50-1.

(4) The Lloyd District Portfolio was acquired in 2011, consisting of approximately 600,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The portion of the property that has been designated for additional development is expected to include a high density, transit oriented, mixed-use urban village, with the potential to be in excess of approximately three million square feet. The entitlement for such development opportunity allows a 12:1 Floor Area Ratio with a 250 foot height limit and provides for retail, office and/or multifamily development. Additional development plans are in the early stages and will continue to progress as demand and economic conditions allow.


Third Quarter 2020 Supplemental Information			Page

PORTFOLIO DATA


Third Quarter 2020 Supplemental Information			Page



PROPERTY REPORT


As of September 30, 2020					Office and Retail Portfolios
				Net				Annualized
			Number	Rentable				Base Rent per
		Year Built/	of	Square	Percentage	Annualized		Square
Property	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾	Base Rent ⁽³⁾		Foot ⁽⁴⁾		Retail Anchor Tenant(s) ⁽⁵⁾		Other Principal Retail Tenants ⁽⁶⁾
Office Properties
La Jolla Commons	San Diego, CA	2008/2014	2	723,945	98.7%	$	40,278,148	$56.37
Torrey Reserve Campus	San Diego, CA	1996-2000/2014-2016	14	521,311	87.8%	22,804,222		49.82
Torrey Point	San Diego, CA	2017	2	91,990	94.6	2,293,129		26.35
Solana Crossing	Solana Beach, CA	1982/2005	4	212,614	93.7	8,473,461		42.53
The Landmark at One Market ⁽⁷⁾	San Francisco, CA	1917/2000	1	422,426	100.0	37,345,312		88.41
One Beach Street	San Francisco, CA	1924/1972/1987/1992	1	97,614	15.8	950,488		61.63
First & Main	Portland, OR	2010	1	360,641	93.0	10,392,253		30.99
Lloyd District Portfolio	Portland, OR	1940-2015	3	515,850	99.8	16,080,374		31.24
City Center Bellevue	Bellevue, WA	1987	1	497,488	97.4	22,884,047		47.23
Subtotal/Weighted Average Office Portfolio ⁽⁸⁾				29	3,443,879	93.8%		$	161,501,434	$49.99
Retail Properties
Carmel Country Plaza	San Diego, CA	1991	9	78,098	88.2%	$	3,649,866	$52.99				Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza ⁽⁹⁾	San Diego, CA	1994/2014	15	528,416	98.1	14,160,254		27.32		At Home Stores		Dick's Sporting Goods, Saks Fifth Avenue Off 5th
South Bay Marketplace ⁽⁹⁾	San Diego, CA	1997	9	132,877	100.0	2,274,333		17.12				Ross Dress for Less, Grocery Outlet
Gateway Marketplace	San Diego, CA	1997/2016	3	127,861	100.0	2,481,870		19.41		Hobby Lobby		Smart & Final, Aldi
Lomas Santa Fe Plaza	Solana Beach, CA	1972/1997	9	208,030	94.4	5,867,706		29.88				Vons, Home Goods
Solana Beach Towne Centre	Solana Beach, CA	1973/2000/2004	12	247,535	96.5	6,636,123		27.78				Dixieline Probuild, Marshalls
Del Monte Center ⁽⁹⁾	Monterey, CA	1967/1984/2006	16	673,572	89.5	9,976,503		16.55		Macy's		Century Theatres, Whole Foods Market
Geary Marketplace	Walnut Creek, CA	2012	3	35,159	100.0	1,233,763		35.09				Sprouts Farmer Market, Habit Burger Grill
The Shops at Kalakaua	Honolulu, HI	1971/2006	3	11,671	100.0	1,894,936		162.36				Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele Center	Waipahu, HI	1993/2008	9	418,047	100.0	11,317,675		27.07		Lowe's, Safeway		UFC Gym, Old Navy
Alamo Quarry Market ⁽⁹⁾	San Antonio, TX	1997/1999	16	588,148	93.1	12,887,946		23.54		Regal Cinemas		Whole Foods Market, Nordstrom Rack
Hassalo on Eighth	Portland, OR	2015	3	44,236	89.5	1,002,203		25.31				Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio ⁽⁸⁾				107	3,093,650	95.0%		$	73,383,178	$24.97
Total/Weighted Average Office and Retail Portfolio ⁽⁸⁾					136	6,537,529		94.4%		$	234,884,612	$38.06


Third Quarter 2020 Supplemental Information			Page



PROPERTY REPORT (CONTINUED)


As of September 30, 2020
			Number						Average Monthly
		Year Built/	of		Percentage		Annualized		Base Rent per
Property	Location	Renovated	Buildings	Units	Leased ⁽²⁾		Base Rent ⁽³⁾		Leased Unit ⁽⁴⁾
Loma Palisades	San Diego, CA	1958/2001-2008	80	548	94.3%		$	14,340,048	$	2,312
Imperial Beach Gardens	Imperial Beach, CA	1959/2008	26	160	98.1		3,810,600		$	2,023
Mariner's Point	Imperial Beach, CA	1986	8	88	93.2		1,833,660		$	1,863
Santa Fe Park RV Resort ⁽¹⁰⁾	San Diego, CA	1971/2007-2008	1	126	74.6		1,669,836		$	1,480
Pacific Ridge Apartments	San Diego, CA	2013	3	533	95.1		18,164,184		$	2,986
Hassalo on Eighth - Velomor	Portland, OR	2015	1	177	75.7		2,668,716		$	1,660
Hassalo on Eighth - Aster Tower	Portland, OR	2015	1	337	77.7		5,341,092		$	1,700
Hassalo on Eighth - Elwood	Portland, OR	2015	1	143	66.4		1,923,936		$	1,689
Total/Weighted Average Multifamily Portfolio				121	2,112		87.5%		$	49,752,072	$	2,244

Mixed-Use Portfolio
			Number	Net Rentable					Annualized Base
		Year Built/	of	Square	Percentage		Annualized		Rent per Leased		Retail
Retail Portion	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾		Base Rent ⁽³⁾		Square Foot ⁽⁴⁾		Anchor Tenant(s) ⁽⁵⁾		Other Principal Retail Tenants ⁽⁶⁾
Waikiki Beach Walk - Retail	Honolulu, HI	2006	3	96,707	87.8	%	$	10,534,918	$	124.07			Yard House, Roy's

			Number						Annualized
		Year Built/	of		Average		Average		Revenue per
Hotel Portion	Location	Renovated	Buildings	Units	Occupancy ⁽¹¹⁾		Daily Rate ⁽¹¹⁾		Available Room ⁽¹¹⁾
Waikiki Beach Walk - Embassy Suites™	Honolulu, HI	2008/2014	2	369	66.0	%	$	209.17	$	137.86

Notes:

(1) The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 2010 measurement guidelines. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.

(2) Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property includes square footage under leases as of September 30, 2020, including leases which may not have commenced as of September 30, 2020. Percentage leased for our multifamily properties includes total units rented as of September 30, 2020.

(3) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) under commenced leases for the month ended September 30, 2020 by 12. 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. The foregoing notwithstanding, the annualized base rent for La Jolla Commons has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $29,820,590 to our estimate of annual triple net operating expenses of $10,457,558 for an estimated annualized base rent on a modified gross lease basis of $40,278,148 for La Jolla Commons.

(4) Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of September 30, 2020. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of September 30, 2020. The foregoing notwithstanding, the annualized base rent per leased square foot for La Jolla Commons has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases. See footnote 3 for further explanation.

(5) Retail anchor tenants are defined as retail tenants leasing 50,000 square feet or more.

(6) Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants.

(7) This property contains 422,426 net rentable square feet consisting of The Landmark at One Market (375,151 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2026, which we have the option to extend until 2031 pursuant to one five-year extension option.


Third Quarter 2020 Supplemental Information			Page



PROPERTY REPORT (CONTINUED)

(8) Lease data for signed but not commenced leases as of September 30, 2020 is in the following table:


	Leased Square Feet			Annualized Base		Pro Forma Annualized
	Under Signed But	Annualized		Rent per		Base Rent per
	Not Commenced Leases (a)	Base Rent (b)		Leased Square Foot (b)		Leased Square Foot (c)
Office Portfolio	41,585	$	2,366,394	$	56.90	$	50.72
Retail Portfolio	13,227	$	362,200	$	27.38	$	25.10
Total Retail and Office Portfolio	54,812	$	2,728,594	$	49.78	$	38.51

(a) Office portfolio leases signed but not commenced of 12,585 and 29,000 square feet are expected to commence during the fourth quarter of 2020 and the first quarter of 2021, respectively. Retail portfolio leases signed but not commenced of 13,227 square feet are expected to commence during the fourth quarters of 2020.

(b) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for signed but not commenced leases as of September 30, 2020 by 12. 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. The foregoing notwithstanding, the annualized base rent for signed but not commenced leases as of September 30, 2020 at La Jolla Commons has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases. Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage for signed by not commenced leases.

(c) Pro forma annualized base rent is calculated by dividing annualized base rent for commenced leases and for signed but not commenced leases as of September 30, 2020, by square footage under lease as of September 30, 2020.

(9) Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the following table:


Property	Number of Ground Leases	Square Footage Leased Pursuant to Ground Leases	Aggregate Annualized Base Rent
Carmel Mountain Plaza	5	17,607	$	801,962
South Bay Marketplace	1	2,824	$	102,276
Del Monte Center	1	212,500	$	96,000
Alamo Quarry Market	3	20,694	$	385,512

(10) The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended September 30, 2020, the highest average monthly occupancy rate for this property was 94%, occurring in July 2020. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments.

(11) Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2020, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for the three months ended September 30, 2020 by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the three months ended September 30, 2020 and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services.


Third Quarter 2020 Supplemental Information			Page



OFFICE LEASING SUMMARY


As of September 30, 2020
Total Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	9	100%	55,152	$46.01	$43.11		$	160,333	6.7	%	10.8	%	3.7	$	600,270	$10.88
2nd Quarter 2020	6	100%	39,534	$57.17	$43.21		$	551,898	32.3	%	65.5	%	1.6	$	377,001	$9.54
1st Quarter 2020	11	100%	181,104	$45.66	$37.68		$	1,444,545	21.2	%	19.2	%	8.8	$	3,694,865	$20.40
4th Quarter 2019	9	100%	81,188	$56.13	$43.82		$	999,611	28.1	%	58.5	%	6.8	$	3,990,311	$49.15
Total 12 months	35	100%	356,978	$49.37	$40.53		$	3,156,387	21.8	%	31.7	%	6.8	$	8,662,447	$24.27

New Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	—	—%	—	$0.00	$0.00		$	—	—	%	—	%	—	$	—	$0.00
2nd Quarter 2020	1	17%	1,749	$38.00	$34.13		$	6,771	11.3	%	21.4	%	5.2	$	89,409	$51.12
1st Quarter 2020	3	27%	7,995	$49.70	$46.50		$	25,606	6.9	%	10.4	%	5.3	$	255,914	$32.01
4th Quarter 2019	4	44%	59,048	$60.94	$45.49		$	912,011	34.0	%	71.6	%	7.3	$	3,515,026	$59.53
Total 12 months	8	23%	68,792	$59.05	$45.32		$	944,388	30.3	%	62.3	%	7.0	$	3,860,349	$56.12

Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	9	100%	55,152	$46.01	$43.11		$	160,333	6.7	%	10.8	%	3.7	$	600,270	$10.88
2nd Quarter 2020	5	83%	37,785	$58.06	$43.63		$	545,127	33.1	%	67.3	%	1.4	$	287,592	$7.61
1st Quarter 2020	8	73%	173,109	$45.47	$37.28		$	1,418,939	22.0	%	19.7	%	9.0	$	3,438,951	$19.87
4th Quarter 2019	5	56%	22,140	$43.30	$39.34		$	87,600	10.1	%	21.9	%	5.4	$	475,285	$21.47
Total 12 months	27	77%	288,186	$47.06	$39.39		$	2,211,999	19.5	%	23.9	%	6.7	$	4,802,098	$16.66

Total Lease Summary - Comparable and Non-Comparable
	Number of Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	10	59,196	$46.28	4.1	$	1,004,770	$16.97
2nd Quarter 2020	7	47,743	$57.80	2.4	$	1,115,811	$23.37
1st Quarter 2020	17	208,041	$45.09	8.8	$	5,704,727	$27.42
4th Quarter 2019	15	138,036	$52.41	6.9	$	8,109,268	$58.75
Total 12 months	49	453,016	$48.82	6.9	$	15,934,576	$35.17

Notes:

(1) Comparable leases represent those leases signed on spaces for which there was a previous lease.

(2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.

(3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.

(4) Weighted average is calculated on the basis of square footage.

(5) Excludes renewals at fixed contractual rates specified in the lease.


Third Quarter 2020 Supplemental Information			Page



RETAIL LEASING SUMMARY


As of September 30, 2020
Total Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	21	100%	71,419	$29.29	$31.23		$	(138,787)	(6.2)	%	(3.6)	%	2.6	$	142,000	$1.99
2nd Quarter 2020	12	100%	23,364	$43.60	$43.23		$	8,682	0.9	%	2.2	%	2.9	$	51,889	$2.22
1st Quarter 2020	14	100%	61,916	$32.41	$32.99		$	(36,351)	(1.8)	%	7.0	%	3.8	$	728,927	$11.77
4th Quarter 2019	10	100%	32,869	$53.80	$55.97		$	(71,256)	(3.9)	%	8.0	%	5.2	$	879,307	$26.75
Total 12 months	57	100%	189,568	$36.32	$37.57		$	(237,712)	(3.3)	%	3.5	%	3.5	$	1,802,123	$9.51

New Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	—	—%	—	$0.00	$0.00		$	—	—	%	—	%	—	$	—	$0.00
2nd Quarter 2020	1	8%	505	$36.00	$36.71		$	(360)	(1.9)	%	(4.5)	%	3.0	$	9,889	$19.58
1st Quarter 2020	2	14%	8,794	$32.12	$34.16		$	(17,925)	(6.0)	%	2.5	%	7.3	$	199,700	$22.71
4th Quarter 2019	2	20%	8,874	$39.13	$41.06		$	(17,114)	(4.7)	%	28.7	%	9.0	$	874,307	$98.52
Total 12 months	5	9%	18,173	$35.65	$37.60		$	(35,399)	(5.2)	%	14.8	%	8.0	$	1,083,896	$59.64

Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	21	100%	71,419	$29.29	$31.23		$	(138,787)	(6.2)	%	(3.6)	%	2.6	$	142,000	$1.99
2nd Quarter 2020	11	92%	22,859	$43.77	$43.37		$	9,042	0.9	%	2.3	%	2.9	$	42,000	$1.84
1st Quarter 2020	12	86%	53,122	$32.45	$32.80		$	(18,426)	(1.1)	%	7.8	%	3.3	$	529,227	$9.96
4th Quarter 2019	8	80%	23,995	$59.23	$61.48		$	(54,142)	(3.7)	%	3.7	%	3.8	$	5,000	$0.21
Total 12 months	52	91%	171,395	$36.39	$37.57		$	(202,313)	(3.1)	%	2.4	%	3.0	$	718,227	$4.19

Total Lease Summary - Comparable and Non-Comparable⁽¹⁾
	Number of Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2020	21	71,419	$29.29	2.6	$	142,000	$1.99
2nd Quarter 2020	13	25,314	$43.48	3.5	$	140,224	$5.54
1st Quarter 2020	17	66,426	$32.90	4.0	$	1,259,098	$18.95
4th Quarter 2019	15	55,252	$46.85	5.7	$	3,520,679	$63.72
Total 12 months	66	218,411	$36.47	3.9	$	5,062,001	$23.18

Notes:

(1) Comparable leases represent those leases signed on spaces for which there was a previous lease, including leases signed for the retail portion of our mixed-use property.

(2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.

(3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.

(4) Weighted average is calculated on the basis of square footage.

(5) Excludes renewals at fixed contractual rates specified in the lease.


Third Quarter 2020 Supplemental Information			Page



MULTIFAMILY LEASING SUMMARY


As of September 30, 2020
Lease Summary - Loma Palisades
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	517	94.3%	$14,340,048	$2,312
2nd Quarter 2020	487	88.9%	$12,778,476	$2,186
1st Quarter 2020	536	97.8%	$13,644,120	$2,122
4th Quarter 2019	526	96.0%	$13,966,392	$2,212

Lease Summary - Imperial Beach Gardens
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	157	98.1%	$3,810,600	$2,023
2nd Quarter 2020	150	93.8%	$3,579,300	$1,987
1st Quarter 2020	152	95.0%	$3,638,724	$1,995
4th Quarter 2019	149	93.1%	$3,578,328	$2,002

Lease Summary - Mariner's Point
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	82	93.2%	$1,833,660	$1,863
2nd Quarter 2020	77	87.5%	$1,706,196	$1,847
1st Quarter 2020	83	94.3%	$1,746,528	$1,754
4th Quarter 2019	82	93.2%	$1,775,364	$1,804

Lease Summary - Santa Fe Park RV Resort
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	94	74.6%	$1,669,836	$1,480
2nd Quarter 2020	102	81.0%	$1,466,676	$1,198
1st Quarter 2020	92	73.0%	$1,305,348	$1,183
4th Quarter 2019	111	88.1%	$1,367,484	$1,027

Lease Summary - Pacific Ridge Apartments
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	507	95.1%	$18,164,184	$2,986
2nd Quarter 2020	432	81.1%	$15,349,020	$2,959
1st Quarter 2020	522	97.9%	$17,782,764	$2,840
4th Quarter 2019	503	94.4%	$17,277,480	$2,862


Third Quarter 2020 Supplemental Information			Page



MULTIFAMILY LEASING SUMMARY (CONTINUED)


As of September 30, 2020
Lease Summary - Hassalo on Eighth - Velomor
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	134	75.7%	$2,668,716	$1,660
2nd Quarter 2020	144	81.4%	$3,073,524	$1,778
1st Quarter 2020	155	87.5%	$3,024,684	$1,627
4th Quarter 2019	158	89.3%	$3,048,972	$1,607

Lease Summary - Hassalo on Eighth - Aster Tower
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	262	77.7%	$5,341,092	$1,700
2nd Quarter 2020	293	86.9%	$5,965,116	$1,697
1st Quarter 2020	302	89.6%	$6,301,200	$1,739
4th Quarter 2019	313	92.9%	$6,112,248	$1,627

Lease Summary - Hassalo on Eighth - Elwood
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	95	66.4%	$1,923,936	$1,689
2nd Quarter 2020	112	78.3%	$2,047,152	$1,524
1st Quarter 2020	122	85.3%	$2,365,236	$1,616
4th Quarter 2019	118	82.5%	$2,234,496	$1,578

Total Multifamily Lease Summary
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter
3rd Quarter 2020	1,848	87.5%	$49,752,072	$2,244
2nd Quarter 2020	1,797	85.1%	$45,965,460	$2,131
1st Quarter 2020	1,964	93.0%	$49,808,604	$2,113
4th Quarter 2019	1,960	92.8%	$49,360,764	$2,099

Notes:

(1) Percentage leased for our multifamily properties includes total units rented as of each respective quarter end date.

(2) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) as of each respective quarter end date.

(3) Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of each respective quarter end date.


Third Quarter 2020 Supplemental Information			Page



MIXED-USE LEASING SUMMARY


As of September 30, 2020
Lease Summary - Retail Portion
	Number of Leased Square Feet	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Annualized Base Rent per Leased Square Foot ⁽³⁾
Quarter
3rd Quarter 2020	84,937	87.8%	$10,534,918	$124
2nd Quarter 2020	92,531	95.7%	$11,141,336	$120
1st Quarter 2020	95,216	98.5%	$11,411,642	$120
4th Quarter 2019	94,701	97.9%	$11,130,250	$118

Lease Summary - Hotel Portion
	Number of Leased Units	Average Occupancy ⁽⁴⁾	Average Daily Rate ⁽⁴⁾	Annualized Revenue per Available Room ⁽⁴⁾
Quarter
3rd Quarter 2020	244	66.0%	$209	$138
2nd Quarter 2020	63	17.0%	$202	$34
1st Quarter 2020	278	75.4%	$321	$242
4th Quarter 2019	335	90.7%	$323	$293

Notes:

(1) Percentage leased for mixed-use property includes square footage under leases as of September 30, 2020, including leases which may not have commenced as of September 30, 2020.

(2) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2020 by 12. 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.

(3) Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of September 30, 2020.

(4) Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2020, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for each respective quarter period by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for each respective quarter period and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services.


Third Quarter 2020 Supplemental Information			Page



LEASE EXPIRATIONS


As of September 30, 2020
Assumes no exercise of lease options
	Office												Retail										Mixed-Use (Retail Portion Only)	Total
			% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	21,967		0.6	%	0.3	%	$1.70	18,997	0.6	%	0.3	%	$47.81	3,718	3.8	%	0.1	%	$42.02	44,682	0.7	%	$24.66
2020	35,559		1.0		0.5		$42.19	109,585	3.5		1.7		$25.69	106	0.1		—		$—	145,250	2.2		$29.71
2021	192,981		5.6		2.9		$43.48	157,943	5.1		2.4		$47.92	19,784	20.5		0.3		$184.63	370,708	5.6		$52.90
2022	299,133		8.7		4.5		$46.97	387,066	12.5		5.8		$31.54	6,271	6.5		0.1		$199.82	692,470	10.4		$39.73
2023	341,876		9.9		5.2		$53.29	254,767	8.2		3.8		$20.77	4,578	4.7		0.1		$61.08	601,221	9.1		$39.57
2024	194,591		5.7		2.9		$46.57	493,519	16.0		7.4		$27.12	12,886	13.3		0.2		$154.54	700,996	10.6		$34.86
2025	321,046		9.3		4.8		$37.67	252,522	8.2		3.8		$28.62	15,519	16.0		0.2		$54.50	589,087	8.9		$34.23
2026	270,138		7.8		4.1		$41.16	176,084	5.7		2.7		$27.12	—	—		—		—	446,222	6.7		$35.62
2027	206,175		6.0		3.1		$50.39	111,300	3.6		1.7		$26.60	13,255	13.7		0.2		76.45	330,730	5.0		$43.43
2028	140,060		4.1		2.1		$43.21	560,587	18.1		8.4		$14.39	8,820	9.1		0.1		$152.24	709,467	10.7		$21.79
2029	754,185	⁽²⁾	21.9		11.4		$60.79	187,189	6.1		2.8		$19.54	—	—		—		—	941,374	14.2		$52.59
Thereafter	411,664		12.0		6.2		$34.70	215,808	7.0		3.3		$20.94	—	—		—		—	627,472	9.5		$29.97
Signed Leases Not Commenced	41,585		1.2		0.6		—	13,227	0.4		0.2		—	—	—		—		—	54,812	0.8		—
Available	212,919		6.2		3.2		—	155,056	5.0		2.3		—	11,770	12.2		0.2		—	379,745	5.7		—
Total ⁽³⁾	3,443,879		100.0	%	51.9	%	$43.86	3,093,650	100.0	%	46.6	%	$23.72	96,707	100.0	%	1.5	%	$108.94	6,634,236	100.0	%	$35.42

Assumes all lease options are exercised
	Office												Retail										Mixed-Use (Retail Portion Only)	Total
			% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	21,967		0.6	%	0.3	%	$1.70	18,997	0.6	%	0.3	%	$47.81	3,718	3.8	%	0.1	%	$42.02	44,682	0.7	%	$24.66
2020	35,559		1.0		0.5		$42.19	100,941	3.3		1.5		$24.88	106	0.1		—		$—	136,606	2.1		$29.37
2021	148,714		4.3		2.2		$42.95	97,688	3.2		1.5		$50.90	19,784	20.5		0.3		$184.63	266,186	4.0		$56.40
2022	72,342		2.1		1.1		$47.13	98,848	3.2		1.5		$40.84	6,271	6.5		0.1		$199.82	177,461	2.7		$49.02
2023	105,414		3.1		1.6		$43.50	81,806	2.6		1.2		$23.89	4,578	4.7		0.1		$61.08	191,798	2.9		$35.56
2024	35,785		1.0		0.5		$43.14	205,937	6.7		3.1		$27.89	7,484	7.7		0.1		$207.29	249,206	3.8		$35.47
2025	71,882		2.1		1.1		$40.64	107,249	3.5		1.6		$29.15	3,961	4.1		0.1		$88.08	183,092	2.8		$34.94
2026	60,325		1.8		0.9		$40.02	90,703	2.9		1.4		$25.08	—	—		—		—	151,028	2.3		$31.05
2027	133,002		3.9		2.0		$36.83	162,443	5.3		2.4		$28.23	13,255	13.7		0.2		76.45	308,700	4.7		$34.01
2028	142,528		4.1		2.1		$39.27	180,892	5.8		2.7		$20.96	1,906	2.0		—		$203.52	325,326	4.9		$30.05
2029	155,107		4.5		2.3		$48.57	120,325	3.9		1.8		$31.54	5,402	5.6		0.1		81.47	280,834	4.2		$41.91
Thereafter	2,206,750	⁽²⁾	64.1		33.3		$49.94	1,659,538	53.6		25.0		$21.50	18,472	19.1		0.3		$78.59	3,884,760	58.6		$37.93
Signed Leases Not Commenced	41,585		1.2		0.6		—	13,227	0.4		0.2		—	—	—		—		—	54,812	0.8		—
Available	212,919		6.2		3.2		—	155,056	5.0		2.3		—	11,770	12.2		0.2		—	379,745	5.7		—
Total ⁽³⁾	3,443,879		100.0	%	51.9	%	$43.86	3,093,650	100.0	%	46.6	%	$23.72	96,707	100.0	%	1.5	%	$108.94	6,634,236	100.0	%	$35.42


Third Quarter 2020 Supplemental Information			Page



LEASE EXPIRATIONS (CONTINUED)

As of September 30, 2020

Notes:

(1) Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent for leases expiring during the applicable period, by (ii) square footage under such expiring leases. Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2020 for the leases expiring during the applicable period by (ii) 12 months.

(2) The expirations include 50,548 square feet leased by Alibaba Group (U.S.) Inc. and GE Healthcare at City Center Bellevue through October 31, 2020, for which Smartsheet, Inc. has an agreement to lease such space beginning March 1, 2021 through April 30, 2029 with options to extend the lease through April 30, 2034.

(3) Individual items may not add up to total due to rounding.


Third Quarter 2020 Supplemental Information			Page



PORTFOLIO LEASED STATISTICS


	At September 30, 2020								At September 30, 2019
Type	Size	Leased ⁽¹⁾		Leased %		Size	Leased ⁽¹⁾		Leased %
Overall Portfolio⁽²⁾Statistics
Office Properties (square feet)	3,443,879	3,230,960		93.8	%	3,435,873	3,252,706		94.7	%
Retail Properties (square feet)	3,093,650	2,938,594		95.0	%	3,093,581	3,031,790		98.0	%
Multifamily Properties (units)	2,112	1,848		87.5	%	2,112	1,911		90.5	%
Mixed-Use Properties (square feet)	96,707	84,937		87.8	%	96,707	94,766		98.0	%
Mixed-Use Properties (units)	369	227	⁽³⁾	52.8	%	369	340	⁽³⁾	92.1	%

Same-Store⁽²⁾ Statistics
Office Properties (square feet)⁽⁴⁾	3,346,265	3,215,513		96.1	%	3,338,259	3,155,092		94.5	%
Retail Properties (square feet)⁽⁵⁾	2,675,603	2,520,547		94.2	%	2,675,534	2,613,743		97.7	%
Multifamily Properties (units)	2,112	1,848		87.5	%	2,112	1,911		90.5	%

Notes:

(1) Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date.

(2) See Glossary of Terms.

(3) Represents average occupancy for the nine months ended September 30, 2020 and 2019.

(4) The same-store portfolio includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019. The same-store portfolio excludes One Beach Street due to significant redevelopment activity.

(5) The same-store portfolio excludes Waikele Center due to significant redevelopment activity.


Third Quarter 2020 Supplemental Information			Page



TOP TENANTS - OFFICE


As of September 30, 2020
	Tenant	Property	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Office		Rentable Square Feet as a Percentage of Total		Annualized Base Rent			Annualized Base Rent as a Percentage of Total Office			Annualized Base Rent as a Percentage of Total
1	Google LLC	The Landmark at One Market	12/31/2029	253,198	7.4	%	3.8	%	$	24,178,824		16.0		%	10.3	%
2	LPL Holdings, Inc.	La Jolla Commons	4/30/2029	421,001	12.2		6.3		18,143,812			12.0			7.7
3	Autodesk, Inc. (1)	The Landmark at One Market	12/31/2022 12/31/2023	138,615	4.0		2.1		12,273,512			8.1			5.2
4	VMware, Inc. (2)	City Center Bellevue	11/30/2022 5/31/2025 9/30/2027	109,985	3.2		1.7		5,542,454			3.7			2.4
5	Illumina, Inc.	La Jolla Commons	10/31/2027	73,011	2.1		1.1		4,302,749			2.8			1.8
6	Smartsheet, Inc. (3)	City Center Bellevue	12/31/2026 4/30/2029	73,669	2.1		1.1		3,517,695			2.3			1.5
7	Clearesult Operating, LLC	First & Main	4/30/2025	101,848	3.0		1.5		2,902,976			1.9			1.2
8	State of Oregon: Department of Environmental Quality	Lloyd District Portfolio	10/31/2031	87,787	2.5		1.3		2,685,963			1.8			1.1
9	Genentech, Inc.	Lloyd District Portfolio	10/31/2026	66,852	1.9		1.0		2,203,442			1.5			0.9
10	Internal Revenue Service	First & Main	8/31/2030	63,648	1.8		1.0		2,189,700			1.4			0.9
	Top 10 Office Tenants Total				1,389,614		40.2	%	20.9		%	$	77,941,127		51.5	%	33.0	%

Notes:

(1) For Autodesk, Inc., 45,795 and 92,820 of leased square feet are set to expire on December 31, 2022 and 2023, respectively.

(2) For VMWare, Inc., 54,643, 18,240, and 37,102 of leased square feet are set to expire on November 30, 2022, May 31, 2025, and September 30, 2027, respectively.

(3) For Smartsheet, Inc., 73,669 and 50,548 of leased square feet are set to expire on December 31, 2026 and April 30, 2029, respectively. The 50,548 of leased square feet is not reflected in the table above as it is currently leased to expiring tenants with Smartsheet rent commencement starting on March 1, 2021.


Third Quarter 2020 Supplemental Information			Page



TOP TENANTS - RETAIL


As of September 30, 2020
	Tenant	Property(ies)	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Retail		Rentable Square Feet as a Percentage of Total		Annualized Base Rent			Annualized Base Rent as a Percentage of Total Retail			Annualized Base Rent as a Percentage of Total
1	Lowe's	Waikele Center	5/31/2028	155,000	5.0	%	2.3	%	$	3,720,000		5.1		%	1.6	%
2	Nordstrom Rack (1)	Carmel Mountain Plaza, Alamo Quarry Market	9/30/2022 10/31/2022	69,047	2.2		1.0		2,189,648			3.0			0.9
3	Sprouts Farmers Market (2)	Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace	6/30/2024 3/31/2025 9/30/2032	71,431	2.3		1.1		2,044,771			2.8			0.9
4	Marshalls (3)	Solana Beach Towne Centre, Carmel Mountain Plaza	1/31/2025 1/31/2029	68,055	2.2		1.0		1,728,228			2.4			0.7
5	Vons	Lomas Santa Fe Plaza	12/31/2022	49,895	1.6		0.8		1,399,205			1.9			0.6
6	At Home Stores	Carmel Mountain Plaza	7/31/2029	107,870	3.5		1.6		1,384,552			1.9			0.6
7	Regal Cinemas	Alamo Quarry Market	3/31/2028	72,447	2.3		1.1		1,231,599			1.7			0.5
8	Safeway	Waikele Center	1/31/2040	50,050	1.6		0.8		1,201,200			1.6			0.5
9	Michaels (4)	Carmel Mountain Plaza Alamo Quarry Market	1/31/2024 2/29/2028	46,850	1.5		0.7		1,072,635			1.5			0.5
10	Saks Fifth Avenue OFF 5TH	Carmel Mountain Plaza	5/31/2024	40,594	1.3		0.6		1,033,117			1.4			0.4
	Top 10 Retail Tenants Total				731,239		23.5	%	11.0		%	$	17,004,955		23.3	%	7.2	%

Notes:

(1) For Nordstrom Rack, 39,047 and 30,000 of leased square feet are set to expire on September 30, 2022 (Carmel Mountain Plaza) and October 31, 2022 (Alamo Quarry Market), respectively.

(2) For Sprouts Farmers Market, 14,986, 30,973 and 25,472 of leased square feet are set to expire on June 30, 2024 (Solana Beach Towne Centre), March 31, 2025 (Carmel Mountain Plaza), and September 30, 2032 (Geary Marketplace), respectively.

(3) For Marshalls, 39,295 and 28,760 of leased square feet are set to expire on January 31, 2025 (Solana Beach Towne Centre) and 2029 (Carmel Mountain Plaza), respectively.

(4) For Michaels, 22,969 and 23,881 of leased square feet are set to expire on January 31, 2024 (Carmel Mountain Plaza) and February 29, 2028 (Alamo Quarry Market), respectively.


Third Quarter 2020 Supplemental Information			Page

APPENDIX


Third Quarter 2020 Supplemental Information			Page



GLOSSARY OF TERMS

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA for the three and nine months ended September 30, 2020 and 2019 is as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
Net income	$	6,490	$	16,519	$	31,800	$	43,703
Depreciation and amortization	26,914		26,568		80,869		69,733
Interest expense	13,302		13,734		40,105		40,212
Interest income	(32)		(137)		(415)		(299)
Income tax expense	12		268		127		709
Gain on sale of real estate	—		—		—		(633)
EBITDA	$	46,686	$	56,952	$	152,486	$	153,425

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that begins with EBITDA and includes adjustments for certain items that we believe are not representative of ongoing operating performance. Specifically, we include a pro forma adjustment to reflect a full period of NOI on the operating properties we acquire during the quarter, to assume all transactions occurred at the beginning of the quarter. We use Adjusted EBITDA as a supplemental performance measure because we believe these items create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
EBITDA	$	46,686	$	56,952	$	152,486	$	153,425
Pro forma adjustments	—		—		—		—

Adjusted EBITDA	$	46,686	$	56,952	$	152,486	$	153,425

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre): EBITDAre is a supplemental non-GAAP measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (NAREIT) defines EBITDAre as follows: net income or loss, computed in accordance with GAAP plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate including gain or loss on change of control, impairments of real estate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates, if any. EBITDAre is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDAre for the three and nine months ended September 30, 2020 and 2019 is as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020		2019		2020		2019
Net income	$	6,490	$	16,519	$	31,800	$	43,703
Depreciation and amortization	26,914		26,568		80,869		69,733
Interest expense	13,302		13,734		40,105		40,212
Interest income	(32)		(137)		(415)		(299)
Income tax expense	12		268		127		709
Gain on sale of real estate	—		—		—		(633)
EBITDAre	$	46,686	$	56,952	$	152,486	153,425


Third Quarter 2020 Supplemental Information			Page



GLOSSARY OF TERMS (CONTINUED)

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as follows: net income, computed in accordance with GAAP plus depreciation and amortization of real estate assets and excluding extraordinary items, gains and losses on sale of real estate and impairment losses. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Funds Available for Distribution (FAD): FAD is a supplemental measure of our liquidity. We compute FAD by subtracting from FFO As Adjusted tenant improvements, leasing commissions and maintenance capital expenditures, eliminating the net effect of straight-line rents, amortization of above (below) market rents for acquisition properties, the effects of other lease intangibles, adding noncash amortization of deferred financing costs and debt fair value adjustments, adding noncash compensation expense, and adding (subtracting) unrealized losses (gains) on marketable securities. FAD provides an additional perspective on our ability to fund cash needs and make distributions by adjusting FFO for the impact of certain cash and noncash items, as well as adjusting FFO for recurring capital expenditures and leasing costs. However, other REITs may use different methodologies for calculating FAD and, accordingly, our FAD may not be comparable to other REITs.

Net Operating Income (NOI): We define 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). NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expense, other nonproperty income and losses, gains and losses from property dispositions, extraordinary items, tenant improvements and leasing commissions. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. Since NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. However, NOI should not be viewed as an alternative measure of our financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Reconciliation of NOI to net income	2020		2019		2020		2019
Total NOI	$	53,675	$	63,431	$	172,972	$	171,920
General and administrative	(6,438)		(6,479)		(19,937)		(18,495)
Depreciation and amortization	(26,914)		(26,568)		(80,869)		(69,733)
Operating Income	$	20,323	$	30,384	$	72,166	$	83,692
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633
Other income (expense), net	(531)		(131)		(261)		(410)





Net income	$	6,490	$	16,519	$	31,800	$	43,703
Net income attributable to restricted shares	(87)		(92)		(260)		(277)
Net income attributable to unitholders in the Operating Partnership	(1,365)		(3,565)		(6,778)		(10,553)
Net income attributable to American Assets Trust, Inc. stockholders	$	5,038	$	12,862	$	24,762	$	32,873

Overall Portfolio: Includes all operating properties owned by us as of September 30, 2020.

Cash NOI: We define 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, net change in lease receivables, 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 non-property 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, our cash NOI may not be comparable to the cash NOIs of other REITs. We believe 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. We believe the exclusion of these items from net (loss) 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


Third Quarter 2020 Supplemental Information			Page



GLOSSARY OF TERMS (CONTINUED)

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. A Reconciliation of Total Cash NOI to Operating Income is presented below:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Reconciliation of Total Cash NOI to Net Income	2020		2019		2020		2019
Total Cash NOI	$	50,103	$	57,262	$	152,041	$	163,806
Non-cash revenue and other operating expenses ⁽¹⁾	3,572		6,169		20,931		8,114
General and administrative	(6,438)		(6,479)		(19,937)		(18,495)
Depreciation and amortization	(26,914)		(26,568)		(80,869)		(69,733)
Operating income	$	20,323	$	30,384	$	72,166	$	83,692
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633
Other income (expense), net	(531)		(131)		(261)		(410)
Net income	$	6,490	$	16,519	$	31,800	$	43,703

(1) 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, net change in lease receivables, lease termination fees at Carmel Mountain Plaza, and straight-line rent expense for our leases of the Annex at The Landmark at One Market.

Same-Store Cash NOI Comparison with Redevelopment: As noted below in the definition of Same-Store, Non-Same Store and Redevelopment Same-Store, information provided on a redevelopment same-store basis includes the results of properties undergoing significant redevelopment for the entirety or portion of both periods being compared. Redevelopment same-store is considered by management to be an important measure because it assists in eliminating disparities due to the redevelopment of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the company's stabilized and redevelopment properties, as applicable. Additionally, redevelopment same-store is considered by management to be an important measure because it assists in evaluating the timing of the start and stabilization of our redevelopment opportunities and the impact that these redevelopments have in enhancing our operating performance. We present Same-Store Cash NOI Comparison with Redevelopment using cash NOI to evaluate and compare the operating performance of the company's properties, as defined above. A reconciliation of Same-Store Cash NOI Comparison with Redevelopment on a cash basis to operating income is presented below:


	Three Months Ended ⁽¹⁾						Nine Months Ended ⁽²⁾
	September 30,						September 30,
Reconciliation of Same-Store Cash NOI Comparison with Redevelopment to Operating Income	2020		2019		2020		2019
Same-Store Cash NOI	$	45,164	$	46,429	$	117,971	$	121,501
Redevelopment Cash NOI ⁽³⁾	1,788		3,022		5,589		13,345
Same-Store Cash NOI with Redevelopment	46,952		49,451		123,560		134,846
Tenant improvement reimbursements	2,264		1,060		5,093		8,473
Total Same-Store Cash NOI with Redevelopment	$	49,216	$	50,511	$	128,653	$	143,319
Non-Same Store Cash NOI	887		6,751		23,388		20,487
Total Cash NOI	$	50,103	$	57,262	$	152,041	$	163,806
Non-cash revenue and other operating expenses ⁽⁴⁾	3,572		6,169		20,931		8,114
General and administrative	(6,438)		(6,479)		(19,937)		(18,495)
Depreciation and amortization	(26,914)		(26,568)		(80,869)		(69,733)
Operating income	$	20,323	$	30,384	$	72,166	$	83,692
Interest expense	(13,302)		(13,734)		(40,105)		(40,212)
Gain on sale of real estate	—		—		—		633
Other income (expense), net	(531)		(131)		(261)		(410)
Net income	$	6,490	$	16,519	$	31,800	$	43,703

(1) Same-store excludes (i) Waikele Center, due to significant redevelopment activity; (ii) One Beach Street, due to significant redevelopment activity; (iii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iv) land held for development.


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GLOSSARY OF TERMS (CONTINUED)

(2) Same-store excludes (i) Waikele Center, due to significant redevelopment activity; (ii) La Jolla Commons, which was acquired on June 20, 2019; (iii) One Beach Street, due to significant redevelopment activity; (iv) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (v) land held for development.

(3) Redevelopment property refers to Waikele Center, One Beach Street, and Lloyd District Portfolio - Land.

(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, net change in lease receivables, lease termination fees at Carmel Mountain Plaza, and straight-line rent expense for our leases of the Annex at The Landmark at One Market.


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GLOSSARY OF TERMS (CONTINUED)

Same-Store Portfolio, Non-Same Store Portfolio and Redevelopment Same-Store: Information provided on a same-store basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, properties under development, properties classified as held for development and properties classified as discontinued operations. Information provided on a redevelopment same-store basis includes the results of properties undergoing significant redevelopment for the entirety or portion of both periods being compared. The following table shows the properties included in the same-store, non-same store and redevelopment same-store portfolio for the comparative periods presented.

Comparison of Three Months Ended

Comparison of Nine Months Ended

September 30, 2020 to 2019

Same-Store

Non Same-Store

Redevelopment Same-Store

Same-Store

Non Same-Store

Redevelopment Same-Store

Office Properties

La Jolla Commons

Torrey Reserve Campus

Torrey Point

Solana Crossing (formerly Solana Beach Corporate Centre)

The Landmark at One Market

One Beach Street

First & Main

Lloyd District Portfolio ⁽¹⁾

City Center Bellevue

Retail Properties

Carmel Country Plaza

Carmel Mountain Plaza

South Bay Marketplace

Gateway Marketplace

Lomas Santa Fe Plaza

Solana Beach Towne Centre

Del Monte Center

Geary Marketplace

The Shops at Kalakaua

Waikele Center

Alamo Quarry Market

Hassalo on Eighth - Retail

Multifamily Properties

Loma Palisades

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Pacific Ridge Apartments

Hassalo on Eighth

Mixed-Use Properties

Waikiki Beach Walk - Retail

Waikiki Beach Walk - Embassy Suites™

Development Properties

La Jolla Commons - Land

Solana Crossing - Land

Lloyd District Portfolio - Land


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GLOSSARY OF TERMS (CONTINUED)

(1) Lloyd District Portfolio includes the 830 building which we placed into operations on August 1, 2019 after renovating the building.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators, new entrances, etc.) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.


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