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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
February 9, 2021
_________________________
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-aat-20210209_g1.jpg
American Assets Trust, Inc.
(Exact name of registrant as specified in its charter)
_________________________

Maryland
001-35030
27-3338708
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

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 RegistrantTitle of each classTrading SymbolName of each exchange on which registered
American Assets Trust, Inc.Common Stock, par value $0.01 per shareAATNew York Stock Exchange

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

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





Item 2.02    Results of Operations and Financial Condition.

On February 9, 2021, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter and fiscal year ending December 31, 2020. Also on February 9, 2021, the Company made available on the "Investors" page of its website at www.americanassetstrust.com certain supplemental information concerning the Company’s financial results and operations for the quarter and fiscal year ending December 31, 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 and fiscal year ending December 31, 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**
99.2**
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).
_____________________
** Furnished herewith

3


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
American Assets Trust, Inc.
By:
/s/ Robert F. Barton
Robert F. Barton
Executive Vice President, CFO
February 9, 2021

4
Document

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

Net income available to common stockholders of $2.9 million and $27.7 million for the three months and year ended December 31, 2020, respectively, or $0.05 and $0.46 per diluted share, respectively
Funds From Operations per diluted share decreased 27% and 14% year-over-year for the three months and year ended December 31, 2020, respectively, or $0.41 and $1.89 per diluted share, respectively
Collected 92% to date of rents that were due during the fourth quarter of 2020

SAN DIEGO, California - 2/9/2021 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its fourth quarter and year ended December 31, 2020.

Fourth Quarter Highlights
Net income available to common stockholders of $2.9 million and $27.7 million for the three months and year ended December 31, 2020, respectively, or $0.05 and $0.46 per diluted share, respectively.
Funds From Operations decreased 27% and 14% year-over-year to $0.41 and $1.89 per diluted share for the three months and year ended December 31, 2020, respectively, compared to the same periods in 2019.
Same-store cash NOI decreased 3.1% and 3.1% year-over-year for the three months and year ended December 31, 2020, respectively. Excluding lease termination fees, same-store cash NOI would have been (3.2)% and (3.7)% for the three months and year ended December 31, 2020, respectively.
For the three months ended December 31, 2020, we have collected 99% of office rents, 82% of retail rents (including the retail component of Waikiki Beach Walk) and 95% of multifamily rents, that were due during the fourth quarter.
Total collections increased to 92% in the fourth quarter compared to 90% in the third quarter and 87% in the second quarter.
Leased approximately 22,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 4% and 5%, respectively, during the three months ended December 31, 2020.
Leased approximately 147,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent decrease of 7% and 12%, respectively, during the three months ended December 31, 2020.

Inaugural Public Bond Offering
Closed inaugural public bond offering of $500 million in principal amount of 3.375% senior unsecured notes due 2031.
With proceeds from the inaugural public bond offering, we repaid the $150 million Senior Guaranteed Notes, Series A, with make-whole payment thereon, and the $100 million outstanding on our revolving line of credit.
As of January 31, 2021, cash on the balance sheet was approximately $378.5 million with no debt obligations maturing during the remainder of 2021.


1


Financial Results
Net income attributable to common stockholders was $2.9 million, or $0.05 per basic and diluted share for the three months ended December 31, 2020 compared to $12.8 million, or $0.22 per basic and diluted share for the three months ended December 31, 2019. For the year ended December 31, 2020, net income attributed to common stockholders was $27.7 million, or $0.46 per basic and diluted share compared to $45.7 million, or $0.84 per basic and diluted share for the year ended December 31, 2019. The year-over-year decrease in net income attributable to common stockholders is primarily due to the increase in collectability related adjustments (bad debt reserve) of rent receivables of approximately $16.7 million primarily at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, and Waikiki Beach Walk Retail due to, in large part, collection challenges with our movie theatres, gyms, and a reduction in Hawaii tourism, 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 fourth quarter of 2020, the company generated Funds From Operations (“FFO”) for common stockholders of $31.1 million, or $0.41 per diluted share, compared to $42.9 million, or $0.56 per diluted share, for the fourth quarter of 2019. For the year ended December 31, 2020, the company generated FFO for common stockholders of $143.5 million, or $1.89 per diluted share, compared to $155.4 million, or $2.20 per diluted share, for the year ended December 31, 2019. The decrease in FFO from the corresponding period in 2019 was primarily due to the above described increase in reserve for collectability related adjustments (bad debt reserve) of rent receivables, a decrease in lease termination fees, and a decrease in revenue at our Waikiki Beach Walk Retail and Embassy Suites Hotel, partially offset by an increase in revenue and annualized base rents in our office segment.

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:
December 31, 2020September 30, 2020December 31, 2019
Total Portfolio
Office 93.0%93.8%95.0%
Retail90.7%95.0%97.8%
Multifamily86.2%87.5%92.8%
Mixed-Use:
Retail89.2%87.8%97.9%
Hotel51.3%52.8%91.7%
Same-Store Portfolio
Office (1)
95.3%96.1%96.4%
Retail (2)
89.2%94.2%97.6%
Multifamily86.2%87.5%92.8%
(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 fourth quarter of 2020, the company signed 33 leases for approximately 174,100 square feet of office and retail space, as well as 369 multifamily apartment leases. Renewals accounted for 100% of the comparable office leases, 95% of the comparable retail leases, and 60% of the residential leases.


2


Office and Retail
On a comparable space basis (i.e. leases for which there was a former tenant) during the fourth quarter of 2020 and trailing four quarters ended December 31, 2020, our retail and office leasing spreads are shown below:
Number of Leases SignedComparable Leased Sq. Ft.Average Cash Basis % Change Over Prior Rent Average Cash Contractual Rent Per Sq. Ft.Prior Average Cash Contractual Rent Per Sq. Ft.Straight-Line Basis % Change Over Prior Rent
OfficeQ4 2020722,0005.0%$46.36$44.133.6%
Last 4 Quarters33298,00018.6%$47.30$39.9021.9%
RetailQ4 202022147,000(11.6)%$31.75$35.90(6.6)%
Last 4 Quarters69303,000(7.4)%$32.22$34.77(2.4)%

Multifamily
The average monthly base rent per leased unit for same-store properties for the fourth quarter of 2020 was $2,245 compared to an average monthly base rent per leased unit of $2,089 for the fourth quarter of 2019, which is an increase of approximately 7%.

Same-Store Cash Net Operating Income
For the three months and year ended December 31, 2020, same-store cash NOI decreased 3.1% and 3.1%, respectively, compared to the three months and year ended December 31, 2019. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Year Ended (2)
December 31,December 31,
20202019Change20202019Change
Cash Basis:
Office (3)
$25,736 $24,988 3.0 $80,967 $72,095 12.3 %
Retail (3)
13,783 15,897 (13.3)%48,513 60,774 (20.2)
Multifamily6,816 6,937 (1.7)28,605 30,291 (5.6)
Mixed-Use— — — — — — 
Same-store Cash NOI (4)
$46,335 $47,822 (3.1)%$158,085 $163,160 (3.1)%

(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 months and year ended December 31, 2020 includes cash lease termination fees received of $0.4 million and $2.1 million, respectively. Excluding lease termination fees for the three months and year ended December 31, 2020, office same-store cash NOI would have been 3.2% and 12.6%, respectively.
(4)    Excluding lease termination fees for the three months and year ended December 31, 2020, same-store cash NOI would have been (3.2)% 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 December 31, 2020, the company had gross real estate assets of $3.2 billion and liquidity of $387.3 million, comprised of cash and cash equivalents of $137.3 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 December 31, 2020, the company has only 1 out of 28 assets encumbered by a mortgage. After the repayment of the $150 million Senior Guaranteed Notes, Series A on January 26, 2021, the company has no debt obligations maturing during the remainder of 2021.


3


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

In addition, the company has declared a dividend on its common stock of $0.28 per share for the first quarter of 2021. The dividend will be paid in cash on March 25, 2021 to stockholders of record on March 11, 2021. The company increased the dividend from $0.25 per share in the fourth quarter of 2020 to $0.28 per share in the first quarter of 2021 based on the company's rent collection in the fourth quarter.

COVID-19 Operational Update

Operations
As of December 31, 2020, we have entered into lease modifications that resulted in COVID-19 adjustments (including rent deferrals and other monetary lease concessions) for approximately 2.6% of the rent originally contracted for the three months ended December 31, 2020. Furthermore, as of December 31, 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 December 31, 2020, we have recorded an allowance for doubtful accounts against accounts receivable of approximately 12% and an allowance for doubtful accounts against deferred rent receivables (straight-line rent receivables) of approximately 19%.

Rent Collection for the Fourth Quarter of 2020 and January 2021(1)
OctoberNovemberDecemberQ4 AverageJanuary
Office99.0%98.9%98.6%98.8%98.5%
Retail87.4%89.4%88.1%88.3%86.3%
Multifamily95.3%95.0%95.4%95.2%95.0%
Mixed-Use (2)
32.4%36.6%36.9%35.3%36.9%
Average91.8%92.5%92.1%92.1%91.2%
(1) Data as of February 6, 2021.
(2) Includes only the retail portion of Waikiki Beach Walk Retail and Embassy Suites Hotel.

Rent Deferrals
As of December 31, 2020, we have entered into deferral agreements for $8.6 million of recurring rents related to the second, third, and fourth quarters of 2020. The weighted average payback period of the deferral agreements is approximately 42 months. Revenue from approximately 68% of tenants with deferral agreements is recognized on a straight-line basis comprising approximately 40% of the deferred amount.

Conference Call
The company will hold a conference call to discuss the results for the fourth quarter and year end 2020 on Wednesday, February 10, 2021 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 4228256. A telephonic replay of the conference call will be available beginning at 2:00 p.m. PT on Wednesday, February 10, 2021 through Wednesday, February 17, 2021. To access the replay, dial 1-855-859-2056 and use the pass code 4228256. 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 fourth quarter and year end 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.
4


Financial Information
American Assets Trust, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Data)
December 31, 2020December 31, 2019
Assets 
Real estate, at cost  
Operating real estate$3,155,280 $3,096,886 
Construction in progress91,047 91,264 
Held for development547 547 
3,246,874 3,188,697 
Accumulated depreciation(754,140)(665,222)
Net real estate2,492,734 2,523,475 
Cash and cash equivalents137,333 99,303 
Restricted cash1,716 10,148 
Accounts receivable, net6,938 12,016 
Deferred rent receivables, net72,476 52,171 
Other assets, net106,112 93,220 
Total assets$2,817,309 $2,790,333 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$110,923 $161,879 
Unsecured notes payable, net1,196,677 1,195,780 
Unsecured line of credit, net99,151 — 
Accounts payable and accrued expenses59,262 62,576 
Security deposits payable6,590 8,316 
Other liabilities and deferred credits, net91,300 68,110 
Total liabilities1,563,903 1,496,661 
Commitments and contingencies  
Equity:  
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,476,292 and 60,068,228 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively605 601 
Additional paid-in capital1,445,644 1,452,014 
Accumulated dividends in excess of net income(176,560)(144,378)
Accumulated other comprehensive income 1,753 5,680 
Total American Assets Trust, Inc. stockholders' equity1,271,442 1,313,917 
Noncontrolling interests(18,036)(20,245)
Total equity1,253,406 1,293,672 
Total liabilities and equity$2,817,309 $2,790,333 

5


American Assets Trust, Inc.
Unaudited Consolidated Statements of Operations
(In Thousands, Except Shares and Per Share Data)
Three Months Ended December 31,Year Ended December 31,
2020201920202019
Revenue:
Rental income$78,253 $94,231 $330,312 $343,865 
Other property income3,094 4,716 14,261 22,876 
Total revenue81,347 98,947 344,573 366,741 
Expenses:
Rental expenses20,421 25,356 79,178 91,967 
Real estate taxes10,444 10,750 41,941 40,013 
General and administrative6,644 6,376 26,581 24,871 
Depreciation and amortization27,423 26,472 108,292 96,205 
Total operating expenses64,932 68,954 255,992 253,056 
Operating income16,415 29,993 88,581 113,685 
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other income (expense), net708 288 447 (122)
Net income3,788 16,485 35,588 60,188 
Net income attributable to restricted shares(123)(104)(383)(381)
Net income attributable to unitholders in the Operating Partnership
(767)(3,536)(7,545)(14,089)
Net income attributable to American Assets Trust, Inc. stockholders
$2,898 $12,845 $27,660 $45,718 
Net income per share
Basic income attributable to common stockholders per share
$0.05 $0.22 $0.46 $0.84 
Weighted average shares of common stock outstanding - basic
59,951,055 59,663,771 59,806,309 54,110,949 
Diluted income attributable to common stockholders per share
$0.05 $0.22 $0.46 $0.84 
Weighted average shares of common stock outstanding - diluted
76,132,592 76,054,319 76,119,763 70,786,132 
Dividends declared per common share$0.25 $0.30 $1.00 $1.14 

6


Reconciliation of Net Income to Funds From Operations
The company's FFO attributable to common stockholders and operating partnership unitholders and reconciliation to net income is as follows (in thousands except shares and per share data, unaudited):
Three Months Ended Year Ended
December 31, 2020December 31, 2020
Funds From Operations (FFO)
Net income$3,788 $35,588 
Depreciation and amortization of real estate assets 27,423 108,292 
FFO, as defined by NAREIT$31,211 $143,880 
Less: Nonforfeitable dividends on restricted stock awards(122)(377)
FFO attributable to common stock and units$31,089 $143,503 
FFO per diluted share/unit$0.41 $1.89 
Weighted average number of common shares and units, diluted76,132,963 76,122,842 

Reconciliation of Same-Store Cash NOI to Net Income
The company's reconciliation of Same-Store Cash NOI to Net Income is as follows (in thousands, unaudited):
Three Months Ended (1)
Year Ended (2)
December 31,December 31,
2020201920202019
Same-store cash NOI46,335 $47,822 $158,085 $163,160 
Non-same-store cash NOI3,240 8,607 38,438 48,628 
Tenant improvement reimbursements (3)
137 3,498 5,230 11,945 
Cash NOI$49,712 $59,927 $201,753 $223,733 
Non-cash revenue and other operating expenses (4)
770 2,914 21,701 11,028 
General and administrative(6,644)(6,376)(26,581)(24,871)
Depreciation and amortization(27,423)(26,472)(108,292)(96,205)
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other income (expense), net708 288 447 (122)
Net income$3,788 $16,485 $35,588 $60,188 
Number of properties included in same-store analysis25252424
(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-K with the Securities and Exchange Commission and, therefore, remain subject to adjustment.
7


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.

8


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

9
Document


FOURTH QUARTER 2020
Supplemental Information



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



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American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets
with favorable supply/demand characteristics
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OfficeRetailMultifamilyMixed-Use
Market Square Feet Square Feet Units Square FeetSuites
San Diego1,550,673 1,322,012 1,455 (1)— — 
San Francisco522,696 35,159 — — — 
Oahu— 429,718 — 96,707 369 
Monterey— 673,155 — — — 
San Antonio— 588,148 — — — 
Portland876,243 44,236 657 — — 
Seattle497,666 — — — — 
Total3,447,278 3,092,428 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.Office3.4 million52%63%
Retail3.1 million48%26%
Data is as of December 31, 2020.Totals6.5 million
(1) Includes 122 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended December 31, 2020. Reconciliation of NOI to net income is included in the Glossary of Terms.

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INDEX
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FOURTH QUARTER 2020 SUPPLEMENTAL INFORMATION
1.FINANCIAL HIGHLIGHTS
Consolidated Balance Sheets
Consolidated Statements of Operations
Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution
Same-Store Net Operating Income (NOI)
Same-Store Cash NOI Comparison excluding Redevelopment
Same-Store Cash NOI Comparison with Redevelopment
Cash NOI By Region
Cash NOI Breakdown
Property Revenue and Operating Expenses
Segment Capital Expenditures
Summary of Outstanding Debt
Market Capitalization
Summary of Development Opportunities
2.PORTFOLIO DATA
Property Report
Office Leasing Summary
Retail Leasing Summary
Multifamily Leasing Summary
Mixed-Use Leasing Summary
Lease Expirations
Portfolio Leased Statistics
Top Tenants - Office
Top Tenants - Retail
3.APPENDIX
Glossary of Terms
This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; 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.
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FINANCIAL HIGHLIGHTS




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CONSOLIDATED BALANCE SHEETS
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(Amounts in thousands, except shares and per share data)December 31, 2020December 31, 2019
ASSETS
Real estate, at cost
Operating real estate$3,155,280 $3,096,886 
Construction in progress91,047 91,264 
Held for development547 547 
3,246,874 3,188,697 
Accumulated depreciation(754,140)(665,222)
Net real estate2,492,734 2,523,475 
Cash and cash equivalents137,333 99,303 
Restricted cash1,716 10,148 
Accounts receivable, net6,938 12,016 
Deferred rent receivable, net72,476 52,171 
Other assets, net106,112 93,220 
TOTAL ASSETS$2,817,309 $2,790,333 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$110,923 $161,879 
Unsecured notes payable, net1,196,677 1,195,780 
Unsecured line of credit, net99,151 — 
Accounts payable and accrued expenses59,262 62,576 
Security deposits payable6,590 8,316 
Other liabilities and deferred credits, net91,300 68,110 
Total liabilities1,563,903 1,496,661 
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,476,292 and 60,068,228 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively605 601 
Additional paid in capital1,445,644 1,452,014 
Accumulated dividends in excess of net income(176,560)(144,378)
Accumulated other comprehensive income 1,753 5,680 
Total American Assets Trust, Inc. stockholders' equity1,271,442 1,313,917 
Noncontrolling interests(18,036)(20,245)
Total equity1,253,406 1,293,672 
TOTAL LIABILITIES AND EQUITY$2,817,309 $2,790,333 

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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
 2020201920202019
REVENUE:
Rental income$78,253 $94,231 $330,312 $343,865 
Other property income3,094 4,716 14,261 22,876 
Total revenue81,347 98,947 344,573 366,741 
EXPENSES:
Rental expenses20,421 25,356 79,178 91,967 
Real estate taxes10,444 10,750 41,941 40,013 
General and administrative6,644 6,376 26,581 24,871 
Depreciation and amortization27,423 26,472 108,292 96,205 
Total operating expenses64,932 68,954 255,992 253,056 
OPERATING INCOME16,415 29,993 88,581 113,685 
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other (expense) income, net708 288 447 (122)
NET INCOME3,788 16,485 35,588 60,188 
Net income attributable to restricted shares(123)(104)(383)(381)
Net income attributable to unitholders in the Operating Partnership(767)(3,536)(7,545)(14,089)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$2,898 $12,845 $27,660 $45,718 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.05 $0.22 $0.46 $0.84 
Weighted average shares of common stock outstanding - basic59,951,055 59,663,771 59,806,309 54,110,949 
Diluted income from continuing operations attributable to common stockholders per share$0.05 $0.22 $0.46 $0.84 
Weighted average shares of common stock outstanding - diluted76,132,592 76,054,319 76,119,763 70,786,132 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION
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(Amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
2020201920202019
Funds from Operations (FFO) (1)
Net income$3,788 $16,485 $35,588 $60,188 
Depreciation and amortization of real estate assets 27,423 26,472 108,292 96,205 
Gain on sale of real estate— — — (633)
FFO, as defined by NAREIT31,211 42,957 143,880 155,760 
Less: Nonforfeitable dividends on restricted stock awards(122)(103)(377)(376)
FFO attributable to common stock and common units$31,089 $42,854 $143,503 $155,384 
FFO per diluted share/unit$0.41 $0.56 $1.89 $2.20 
Weighted average number of common shares and common units, diluted (2)
76,132,963 76,056,823 76,122,842 70,788,597 
Funds Available for Distribution (FAD) (1)
$21,457 $17,311 $68,916 $58,115 
Dividends
Dividends declared and paid$19,164 $22,938 $76,510 $80,605 
Dividends declared and paid per share/unit$0.25 $0.30 $1.00 $1.14 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)
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(Amounts in thousands, except shares and per share data)Three Months Ended Year Ended
December 31,December 31,
2020201920202019
Funds Available for Distribution (FAD) (1)
FFO$31,211 $42,957 $143,880 $155,760 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (11,784)(24,118)(60,669)(92,185)
Net effect of straight-line rents (3)
(4,985)(2,011)(19,155)(3,102)
Amortization of net above (below) market rents (4)
(1,143)(1,005)(3,932)(3,786)
Net effect of other lease assets (5)
5,358 102 1,385 (4,140)
Amortization of debt issuance costs and debt fair value adjustment368 371 1,477 1,467 
Non-cash compensation expense2,554 1,118 6,307 4,477 
Nonforfeitable dividends on restricted stock awards(122)(103)(377)(376)
FAD$21,457 $17,311 $68,916 $58,115 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $7,264 $12,687 $40,272 $52,924 
Maintenance capital expenditures4,520 11,431 20,397 39,261 
$11,784 $24,118 $60,669 $92,185 

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

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SAME-STORE NET OPERATING INCOME (NOI)
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(Amounts in thousands)Three Months Ended December 31, 2020
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$44,107 $16,890 $12,475 $— $73,472 
Non-same store (1)
237 3,451 — 4,187 7,875 
Total44,344 20,341 12,475 4,187 81,347 
Real estate expenses
Same-store12,020 5,651 5,648 — 23,319 
Non-same store (1)
415 1,690 — 5,441 7,546 
Total12,435 7,341 5,648 5,441 30,865 
Net Operating Income (NOI)
Same-store32,087 11,239 6,827 — 50,153 
Non-same store (1)
(178)1,761 — (1,254)329 
Total$31,909 $13,000 $6,827 $(1,254)$50,482 
Same-store NOI$32,087 $11,239 $6,827 $— $50,153 
Net effect of straight-line rents (2)
(7,020)1,814 (88)— (5,294)
Amortization of net above (below) market rents (3)
(524)(575)— — (1,099)
Net effect of other lease assets (4)
1,329 1,306 77 — 2,712 
Tenant improvement reimbursements (5)
(136)(1)— — (137)
Same-store cash NOI (5)
$25,736 $13,783 $6,816 $— $46,335 

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

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SAME-STORE NET OPERATING INCOME (NOI) (CONTINUED)
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(Amounts in thousands)Year Ended December 31, 2020
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$133,209 $72,402 $50,327 $— $255,938 
Non-same store (1)
44,345 15,878 — 28,412 88,635 
Total177,554 88,280 50,327 28,412 344,573 
Real estate expenses
Same-store34,825 21,021 22,074 — 77,920 
Non-same store (1)
12,599 6,353 — 24,247 43,199 
Total47,424 27,374 22,074 24,247 121,119 
Net Operating Income (NOI)
Same-store98,384 51,381 28,253 — 178,018 
Non-same store (1)
31,746 9,525 — 4,165 45,436 
Total$130,130 $60,906 $28,253 $4,165 $223,454 
Same-store NOI$98,384 $51,381 $28,253 $— $178,018 
Net effect of straight-line rents (2)
(12,887)70 (26)— (12,843)
Amortization of net above (below) market rents (3)
(1,583)(1,392)— — (2,975)
Net effect of other lease assets (4)
2,279 (1,542)378 — 1,115 
Tenant improvement reimbursements (5)
(5,226)(4)— — (5,230)
Same-store cash NOI (5)
$80,967 $48,513 $28,605 $— $158,085 

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



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SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT
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(Amounts in thousands)Three Months Ended Year Ended
December 31,December 31,
20202019Change20202019Change
Cash Basis:
Office$25,736 $24,988 3.0 %$80,967 $72,095 12.3 %
Retail13,783 15,897 (13.3)48,513 60,774 (20.2)
Multifamily6,816 6,937 (1.7)28,605 30,291 (5.6)
Mixed-Use— — — — — — 
Same-store Cash NOI (1)(2)
$46,335 $47,822 (3.1)%$158,085 $163,160 (3.1)%

Notes:
(1)    Excluding lease termination fees, for the three months and year ended December 31, 2020 and 2019, same-store cash NOI would be (3.2)% 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.

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SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT
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(Amounts in thousands)Three Months EndedYear Ended
December 31,December 31,
20202019Change20202019Change
Cash Basis:
Office$25,580 $25,125 1.8 %$80,433 $74,515 7.9 %
Retail17,073 18,356 (7.0)57,770 69,889 (17.3)
Multifamily6,816 6,937 (1.7)28,605 30,291 (5.6)
Mixed-Use— — — — — — 
Same-store Cash NOI with Redevelopment (1)(2)
$49,469 $50,418 (1.9)%$166,808 $174,695 (4.5)%

Notes:
(1)    Excluding lease termination fees, for the three months and year ended December 31, 2020 and 2019, same-store cash NOI with redevelopment would be (2.0)% and (5.1)%, 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.




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CASH NOI BY REGION
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(Amounts in thousands)Three Months Ended December 31, 2020
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California12,142 7,630 6,001 — 25,773 
Northern California4,698 2,642 — — 7,340 
Hawaii— 3,802 — 133 3,935 
Oregon3,950 168 815 — 4,933 
Texas— 2,831 — — 2,831 
Washington4,900 — — — 4,900 
Total Cash NOI$25,690 $17,073 $6,816 $133 $49,712 


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.


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CASH NOI BREAKDOWN
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Three Months Ended December 31, 2020

Cash NOI Breakdown
Portfolio Diversification by Geographic RegionPortfolio Diversification by Segment
    
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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.
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PROPERTY REVENUE AND OPERATING EXPENSES
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(Amounts in thousands)Three Months Ended December 31, 2020
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$7,086 $159 $2,595 $(2,814)$(803)$6,223 
Torrey Reserve Campus (7)
5,559 195 264 (1,566)(528)3,924 
Torrey Point784 76 — (326)(61)473 
Solana Crossing2,107 59 (633)1,549 
The Landmark at One Market9,336 68 49 (2,696)(2,016)4,741 
One Beach Street 238 — 10 (290)(1)(43)
First & Main2,599 131 312 (967)(1,071)1,004 
Lloyd District Portfolio (7)
3,948 313 159 (1,255)(105)3,060 
City Center Bellevue 5,318 420 171 (1,562)553 4,900 
Subtotal Office Portfolio$36,975 $1,369 $3,619 $(12,109)$(4,023)$25,831 
Retail Portfolio
Carmel Country Plaza$895 $22 $231 $(253)$(76)$819 
Carmel Mountain Plaza3,412 108 793 (1,013)(489)2,811 
South Bay Marketplace520 267 172 (209)(125)625 
Gateway Marketplace637 205 (236)(1)607 
Lomas Santa Fe Plaza1,326 343 (435)1,245 
Solana Beach Towne Centre1,481 43 544 (576)31 1,523 
Del Monte Center 2,101 720 768 (1,409)140 2,320 
Geary Marketplace223 90 156 (151)322 
The Shops at Kalakaua574 17 48 (92)(35)512 
Waikele Center2,643 641 882 (1,688)812 3,290 
Alamo Quarry Market3,357 406 63 (1,172)177 2,831 
Hassalo on Eighth - Retail 165 39 49 (106)21 168 
Subtotal Retail Portfolio$17,334 $2,363 $4,254 $(7,340)$462 $17,073 

Fourth Quarter 2020 Supplemental InformationPage
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PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
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(Amounts in thousands)Three Months Ended December 31, 2020
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$3,507 $195 $— $(1,509)$(20)$2,173 
Imperial Beach Gardens919 48 — (368)— 599 
Mariner's Point460 34 — (197)(6)291 
Santa Fe Park RV Resort311 20 — (233)— 98 
Pacific Ridge Apartments4,375 205 — (1,763)23 2,840 
Hassalo on Eighth - Multifamily2,319 283 — (1,580)(207)815 
Subtotal Multifamily Portfolio$11,891 $785 $ $(5,650)$(210)$6,816 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$(933)$681 $797 $(1,618)$1,493 $420 
Waikiki Beach Walk - Embassy Suites™3,257 281 — (3,824)(1)(287)
Subtotal Mixed-Use Portfolio$2,324 $962 $797 $(5,442)$1,492 $133 
Subtotal Development Properties$ $11 $ $(130)$(22)$(141)
Total$68,524 $5,490 $8,670 $(30,671)$(2,301)$49,712 
Cash NOI is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of total cash NOI to net income is included in the Glossary of Terms.
Notes:
(1)    Base rent for our office and retail portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended December 31, 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 $4,964 and $1,382, respectively, for the three months ended December 31, 2020. Total abatements for our mixed-use portfolio was approximately $931 for the three months ended December 31, 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 $287 of abatements for our multifamily portfolio for the three months ended December 31, 2020. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended December 31, 2020. Total tenant improvement reimbursements for our office and retail portfolio were approximately $136 and $1, respectively, for the three months ended December 31, 2020. There were no tenant improvement reimbursements for the retail portion of our mixed-use portfolio for the three months ended December 31, 2020.
(2)    Represents additional property-related income for the three months ended December 31, 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 December 31, 2020.
(4)    Represents property operating expenses for the three months ended December 31, 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 $403 for the three months ended December 31, 2020.
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SEGMENT CAPITAL EXPENDITURES
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(Amounts in thousands)Three Months Ended December 31, 2020
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$6,068 $3,043 $9,111 $2,447 $1,271 $12,829 
Retail Portfolio1,182 303 1,485 — 1,486 
Multifamily Portfolio— 953 953 — — 953 
Mixed-Use Portfolio14 221 235 — — 235 
Total$7,264 $4,520 $11,784 $2,448 $1,271 $15,503 
Year Ended December 31, 2020
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$35,732 $8,745 $44,477 $4,096 $4,309 $52,882 
Retail Portfolio4,504 4,089 8,593 — 8,596 
Multifamily Portfolio— 3,897 3,897 — — 3,897 
Mixed-Use Portfolio36 3,666 3,702 — — 3,702 
Total$40,272 $20,397 $60,669 $4,099 $4,309 $69,077 

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SUMMARY OF OUTSTANDING DEBT
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(Amounts in thousands)Amount
Outstanding atAnnual Debt
DebtDecember 31, 2020Interest 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 4.13 %$1,461 January 9, 2022
Series A Notes (5)
150,000 3.88 %155,050 October 31, 2021
Term Loan B (6)
100,000 2.75 %2,749 March 1, 2023
Term Loan C (7)
50,000 2.74 %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 3.88 %$194,191 
Unsecured Line of Credit (13)
$100,000 1.32 %
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 4.13% through January 9, 2021, 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. On January 26, 2021, we prepaid the entirety of the Series A Notes with make-whole premium thereon.
(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 2.75%, 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 2.74%, 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 $3.3 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 $0.8 million. On January 26, 2021, we repaid the $100 million outstanding balance on the Revolver Loan.
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MARKET CAPITALIZATION
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(Amounts in thousands, except per share data)
Market dataDecember 31, 2020
Common shares outstanding60,476 
Common units outstanding16,181 
Common shares and common units outstanding76,657 
Market price per common share$28.88 
Equity market capitalization$2,213,854 
Total debt$1,411,000 
Total market capitalization$3,624,854 
Less: Cash on hand$(137,333)
Total enterprise value$3,487,521 
Total unencumbered assets, gross$3,286,234 
Total debt/Total capitalization38.9 %
Total debt/Total enterprise value40.5 %
Net debt/Total enterprise value (1)
36.5 %
Total unencumbered assets, gross/Unsecured debt253.0 %
Quarter AnnualizedTrailing 12 Months
Total debt/Adjusted EBITDA (2)(3)
7.9 x7.2 x
Net debt/Adjusted EBITDA (1)(2)(3)
7.2 x6.5 x
Interest coverage ratio (4)
3.4 x3.8 x
Fixed charge coverage ratio (4)
3.4 x3.8 x
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Weighted Average Fixed Interest Rate20212022202320242025202620272028202920302031
3.9 %4.1 %2.7 %3.8 %4.5 %— %3.9 %— %4.2 %3.9 %— %

Total Weighed Average Fixed Interest Rate:3.9%
Weighted Average Term to Maturity:4.4 years

Credit Ratings
Rating AgencyRatingOutlook
FitchBBBStable
Moody'sBaa3Stable
Standard & PoorsBBB-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 December 31, 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)     On January 26, 2021, we prepaid the $150 million Senior Guaranteed Notes, Series A, due October 31, 2021 and repaid the $100 million outstanding balance on our unsecured line of credit.
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MARKET CAPITALIZATION (CONTINUED)
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Subsequent to Inaugural Public Bond Offering
(Amounts in thousands, except per share data)
Market dataJanuary 31, 2021
Common shares outstanding60,475 
Common units outstanding16,181 
Common shares and common units outstanding76,656 
Market price per common share$27.63 
Equity market capitalization$2,118,005 
Total debt$1,661,000 
Total market capitalization$3,779,005 
Less: Cash on hand$(378,530)
Total enterprise value$3,400,475 














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Weighted Average Fixed Interest Rate20212022202320242025202620272028202920302031
— %4.1 %2.7 %3.8 %4.5 %— %3.9 %— %4.2 %3.9 %3.4 %

Total Weighed Average Fixed Interest Rate:3.7%
Weighted Average Term to Maturity:7.4 years



Notes:
(6) Debt Maturity Schedule reflects the issuance of $500 million of 3.375% senior unsecured notes due February 1, 2031, the prepayment of the $150 million Senior Guaranteed Notes, Series A, due October 31, 2021, with make-whole thereon, and repayment of the $100 million outstanding balance on our unsecured line of credit each in January 2021.

Fourth Quarter 2020 Supplemental InformationPage
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SUMMARY OF DEVELOPMENT OPPORTUNITIES
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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 FeetPercent
Leased
Estimated Stabilization Date (2)
Cost Incurred to DateTotal Estimated Investment
PropertyLocation
Office Property:
La Jolla CommonsUniversity Town Center, San Diego, CAApril 2021September 20236.5% - 7.5%213,000—%2024$24,740$175,000
One Beach StreetSan Francisco, CAFebruary 2021August 2023TBD102,00015.4%2024$1,380$42,800

Development/Redevelopment Pipeline
PropertyProperty TypeLocationEstimated Rentable
Square Feet
Multifamily UnitsOpportunity
Waikele CenterRetailHonolulu, HI90,000N/ADevelopment of 90,000 square feet retail building (former KMart Space)
Lomas Santa Fe PlazaRetailSolana Beach, CA45,000N/ADevelopment of 45,000 square feet retail building
Lloyd District Portfolio - multiple phases (4)
Mixed UsePortland, OR
Phase 2A - Oregon Square
33,000N/ARemodel and repurpose a 33,000 square feet office building into flexible creative office space
Phase 2B - Oregon Square
385,000TBDDevelopment of build-to-suit office towers and/or mixed-use residential towers

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.
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PORTFOLIO DATA




Fourth Quarter 2020 Supplemental InformationPage
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PROPERTY REPORT
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As of December 31, 2020Office and Retail Portfolios
NetAnnualized
NumberRentableBase Rent per
Year Built/ofSquarePercentageAnnualizedSquare
PropertyLocationRenovatedBuildings
Feet (1)
Leased (2)
Base Rent (3)
Foot (4)
Retail Anchor Tenant(s) (5)
Other Principal Retail Tenants (6)
Office Properties
La Jolla CommonsSan Diego, CA2008/2014724,186 98.0%$39,961,852 $56.31
Torrey Reserve CampusSan Diego, CA1996-2000/2014-201614 521,678 85.0%22,113,241 49.87
Torrey PointSan Diego, CA2017 92,195 94.63,246,011 37.22
Solana CrossingSolana Beach, CA1982/2005212,614 93.08,689,159 43.94
The Landmark at One Market (7)
San Francisco, CA1917/2000422,426 100.037,345,312 88.41
One Beach StreetSan Francisco, CA1924/1972/1987/1992100,270 15.4950,488 61.55
First & MainPortland, OR2010 360,314 93.010,442,975 31.16
Lloyd District PortfolioPortland, OR1940-2015515,929 99.816,454,913 31.96
City Center BellevueBellevue, WA1987497,666 96.523,679,927 49.31
Subtotal/Weighted Average Office Portfolio (8)
29 3,447,278 93.0%$162,883,878 $50.81
Retail Properties
Carmel Country PlazaSan Diego, CA199178,098 89.4%$3,731,651 $53.45Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza (9)
San Diego, CA1994/201415 528,416 95.013,373,531 26.64At Home StoresDick's Sporting Goods, Saks Fifth Avenue Off 5th
South Bay Marketplace (9)
San Diego, CA1997132,877 94.41,914,333 15.26Ross Dress for Less, Grocery Outlet
Gateway MarketplaceSan Diego, CA1997/2016127,861 100.02,483,725 19.43Hobby LobbySmart & Final, Aldi
Lomas Santa Fe PlazaSolana Beach, CA1972/1997208,030 94.75,907,553 29.99Vons, Home Goods
Solana Beach Towne CentreSolana Beach, CA1973/2000/200412 246,730 94.46,250,003 26.83Dixieline Probuild, Marshalls
Del Monte Center (9)
Monterey, CA1967/1984/200616 673,155 81.78,403,833 15.28Macy'sCentury Theatres, Whole Foods Market
Geary MarketplaceWalnut Creek, CA201235,159 100.01,187,924 33.79Sprouts Farmer Market, Habit Burger Grill
The Shops at KalakauaHonolulu, HI1971/200611,671 100.01,894,936 162.36Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele CenterWaipahu, HI1993/2008418,047 100.011,524,589 27.57Lowe's, SafewayUFC Gym, Old Navy
Alamo Quarry Market (9)
San Antonio, TX1997/199916 588,148 85.512,461,757 24.78Regal CinemasWhole Foods Market, Nordstrom Rack
Hassalo on EighthPortland, OR201544,236 71.0940,668 29.95Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio (8)
107 3,092,428 90.7%$70,074,503 $24.98
Total/Weighted Average Office and Retail Portfolio (8)
136 6,539,706 91.9%$232,958,381 $38.76

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PROPERTY REPORT (CONTINUED)
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As of December 31, 2020
NumberAverage Monthly
Year Built/of
Percentage
AnnualizedBase Rent per
PropertyLocationRenovatedBuildingsUnits
Leased (2)
Base Rent (3)
Leased Unit (4)
Loma PalisadesSan Diego, CA1958/2001-200880 548 95.3%$14,420,472 $2,301 
Imperial Beach GardensImperial Beach, CA1959/200826 160 94.43,920,016 $2,163 
Mariner's PointImperial Beach, CA198688 96.61,860,348 $1,824 
Santa Fe Park RV Resort (10)
San Diego, CA1971/2007-2008126 77.81,250,460 $1,063 
Pacific Ridge ApartmentsSan Diego, CA2013533 93.118,171,132 $3,052 
Hassalo on Eighth - Velomor Portland, OR2015177 68.42,467,308 $1,698 
Hassalo on Eighth - Aster Tower Portland, OR2015337 75.15,109,600 $1,682 
Hassalo on Eighth - Elwood Portland, OR2015143 65.71,702,044 $1,510 
Total/Weighted Average Multifamily Portfolio 121 2,112 86.2%$48,901,380 $2,238 
Mixed-Use Portfolio
NumberNet RentableAnnualized Base
Year Built/ofSquare
Percentage
AnnualizedRent per LeasedRetail
Retail PortionLocationRenovatedBuildings
Feet (1)
Leased (2)
Base Rent (3)
Square Foot (4)
Anchor Tenant(s) (5)
Other Principal Retail Tenants (6)
Waikiki Beach Walk - RetailHonolulu, HI200696,707 89.2 %$9,411,407 $109.10 Yard House, Roy's
NumberAnnualized
Year Built/ofAverageAverageRevenue per
Hotel PortionLocationRenovatedBuildingsUnits
Occupancy (11)
Daily Rate (11)
 Available Room (11)
Waikiki Beach Walk - Embassy Suites™Honolulu, HI2008/2020369 46.8 %$205.17 $96.05 
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 December 31, 2020, including leases which may not have commenced as of December 31, 2020. Percentage leased for our multifamily properties includes total units rented as of December 31, 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 December 31, 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 $29,797,416 to our estimate of annual triple net operating expenses of $10,164,436 for an estimated annualized base rent on a modified gross lease basis of $39,961,852 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 December 31, 2020. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of December 31, 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 (378,206 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.
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PROPERTY REPORT (CONTINUED)
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(8)    Lease data for signed but not commenced leases as of December 31, 2020 is in the following table:
    
Leased Square FeetAnnualized Base Pro Forma Annualized
Under Signed ButAnnualizedRent per Base Rent per
Not Commenced Leases (a)Base Rent (b) Leased Square Foot (b) Leased Square Foot (c)
Office Portfolio32,253 $1,897,001 $58.82 $51.40 
Retail Portfolio4,403 $148,793 $33.79 $25.04 
Total Retail and Office Portfolio36,656 $2,045,794 $55.81 $39.10 
    
(a)    Office portfolio leases signed but not commenced of 32,253 square feet are expected to commence during the first quarter of 2021. Retail portfolio leases signed but not commenced of 505 and 3,898 square feet are expected to commence during the first and second quarters of 2021, respectively.
(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 December 31, 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 December 31, 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 December 31, 2020, by square footage under lease as of December 31, 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:
PropertyNumber of Ground LeasesSquare Footage Leased Pursuant to Ground LeasesAggregate Annualized Base Rent
Carmel Mountain Plaza517,607 $741,962 
South Bay Marketplace12,824 $102,276 
Del Monte Center1212,500 $96,000 
Alamo Quarry Market320,694 $385,506 
(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 December 31, 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 December 31, 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 December 31, 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 December 31, 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.
Fourth Quarter 2020 Supplemental InformationPage
25

OFFICE LEASING SUMMARY
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 2020
Total Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 2020100%21,949 $46.36$44.13$48,864 5.0 %3.6 %2.5$— $0.00
3rd Quarter 2020100%55,152 $46.01$43.11$160,333 6.7 %10.8 %3.7$600,270 $10.88
2nd Quarter 2020100%39,534 $57.17$43.21$551,898 32.3 %65.5 %1.6$377,001 $9.54
1st Quarter 202011 100%181,104 $45.66$37.68$1,444,545 21.2 %19.2 %8.8$3,694,865 $20.40
Total 12 months33 100%297,739 $47.30$39.90$2,205,640 18.6 %21.9 %6.4$4,672,136 $15.69
New Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 2020— —%— $0.00$0.00$— — %— %$— $0.00
3rd Quarter 2020— —%— $0.00$0.00$— — %— %$— $0.00
2nd Quarter 202017%1,749 $38.00$34.13$6,771 11.3 %21.4 %5.2$89,409 $51.12
1st Quarter 202027%7,995 $49.70$46.50$25,606 6.9 %10.4 %5.3$255,914 $32.01
Total 12 months12%9,744 $47.60$44.28$32,377 7.5 %11.9 %5.3$345,323 $35.44
Renewal Lease Summary - Comparable (1)(5)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 2020100%21,949 $46.36$44.13$48,864 5.0 %3.6 %2.5$— $0.00
3rd Quarter 2020100%55,152 $46.01$43.11$160,333 6.7 %10.8 %3.7$600,270 $10.88
2nd Quarter 202083%37,785 $58.06$43.63$545,127 33.1 %67.3 %1.4$287,592 $7.61
1st Quarter 202073%173,109 $45.47$37.28$1,418,939 22.0 %19.7 %9.0$3,438,951 $19.87
Total 12 months29 88%287,995 $47.29$39.75$2,173,263 19.0 %22.3 %6.5$4,326,813 $15.03
Total Lease Summary - Comparable and Non-Comparable
Number of Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 202023,082 $46.652.5$36,306 $1.57
3rd Quarter 202010 59,196 $46.284.1$1,004,770 $16.97
2nd Quarter 202047,743 $57.802.4$1,115,811 $23.37
1st Quarter 202017 208,041 $45.098.8$5,704,727 $27.42
Total 12 months42 338,062 $47.206.6$7,861,614 $23.25
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.
Fourth Quarter 2020 Supplemental InformationPage
26

RETAIL LEASING SUMMARY
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 2020
Total Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 202022 100%146,791 $31.75$35.90$(610,205)(11.6)%(6.6)%2.4$1,199,330 $8.17
3rd Quarter 202021 100%71,419 $29.29$31.23$(138,787)(6.2)%(3.6)%2.6$142,000 $1.99
2nd Quarter 202012 100%23,364 $43.60$43.23$8,682 0.9 %2.2 %2.9$51,889 $2.22
1st Quarter 202014 100%61,916 $32.41$32.99$(36,351)(1.8)%7.0 %3.8$728,927 $11.77
Total 12 months69 100%303,490 $32.22$34.77$(776,661)(7.4)%(2.4)%2.8$2,122,146 $6.99
New Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 20205%2,856 $30.41$43.85$(38,375)(30.6)%(20.5)%10.0$126,400 $44.26
3rd Quarter 2020— —%— $0.00$0.00$— — %— %$— $0.00
2nd Quarter 20208%505 $36.00$36.71$(360)(1.9)%(4.5)%3.0$9,889 $19.58
1st Quarter 202014%8,794 $32.12$34.16$(17,925)(6.0)%2.5 %7.3$199,700 $22.71
Total 12 months6%12,155 $31.88$36.54$(56,660)(12.8)%(4.4)%7.8$335,989 $27.64
Renewal Lease Summary - Comparable (1)(5)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 202021 95%143,935 $31.77$35.75$(571,830)(11.1)%(6.3)%2.2$1,072,930 $7.45
3rd Quarter 202021 100%71,419 $29.29$31.23$(138,787)(6.2)%(3.6)%2.6$142,000 $1.99
2nd Quarter 202011 92%22,859 $43.77$43.37$9,042 0.9 %2.3 %2.9$42,000 $1.84
1st Quarter 202012 86%53,122 $32.45$32.80$(18,426)(1.1)%7.8 %3.3$529,227 $9.96
Total 12 months65 94%291,335 $32.23$34.70$(720,001)(7.1)%(2.3)%2.6$1,786,157 $6.13
Total Lease Summary - Comparable and Non-Comparable (1)
Number of Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
4th Quarter 202025 150,988 $31.802.5$1,510,710 $10.01
3rd Quarter 202021 71,419 $29.292.6$142,000 $1.99
2nd Quarter 202013 25,314 $43.483.5$140,224 $5.54
1st Quarter 202017 66,426 $32.904.0$1,259,098 $18.95
Total 12 months76 314,147 $32.402.9$3,052,032 $9.72
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.
Fourth Quarter 2020 Supplemental InformationPage
27

MULTIFAMILY LEASING SUMMARY
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 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
4th Quarter 202052295.3%$14,420,472$2,301
3rd Quarter 202051794.3%$14,340,048$2,312
2nd Quarter 202048788.9%$12,778,476$2,186
1st Quarter 202053697.8%$13,644,120$2,122
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
4th Quarter 202015194.4%$3,920,016$2,163
3rd Quarter 202015798.1%$3,810,600$2,023
2nd Quarter 202015093.8%$3,579,300$1,987
1st Quarter 202015295.0%$3,638,724$1,995
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
4th Quarter 20208596.6%$1,860,348$1,824
3rd Quarter 20208293.2%$1,833,660$1,863
2nd Quarter 20207787.5%$1,706,196$1,847
1st Quarter 20208394.3%$1,746,528$1,754
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
4th Quarter 20209877.8%$1,250,460$1,063
3rd Quarter 20209474.6%$1,669,836$1,480
2nd Quarter 202010281.0%$1,466,676$1,198
1st Quarter 20209273.0%$1,305,348$1,183
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
4th Quarter 202049693.1%$18,171,132$3,052
3rd Quarter 202050795.1%$18,164,184$2,986
2nd Quarter 202043281.1%$15,349,020$2,959
1st Quarter 202052297.9%$17,782,764$2,840






Fourth Quarter 2020 Supplemental InformationPage
28

MULTIFAMILY LEASING SUMMARY (CONTINUED)
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg


As of December 31, 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
4th Quarter 202012168.4%$2,467,308$1,698
3rd Quarter 202013475.7%$2,668,716$1,660
2nd Quarter 202014481.4%$3,073,524$1,778
1st Quarter 202015587.5%$3,024,684$1,627
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
4th Quarter 202025375.1%$5,109,600$1,682
3rd Quarter 202026277.7%$5,341,092$1,700
2nd Quarter 202029386.9%$5,965,116$1,697
1st Quarter 202030289.6%$6,301,200$1,739
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
4th Quarter 20209465.7%$1,702,044$1,510
3rd Quarter 20209566.4%$1,923,936$1,689
2nd Quarter 202011278.3%$2,047,152$1,524
1st Quarter 202012285.3%$2,365,236$1,616
Total Multifamily Lease Summary
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
4th Quarter 20201,82086.2%$48,901,380$2,238
3rd Quarter 20201,84887.5%$49,752,072$2,244
2nd Quarter 20201,79785.1%$45,965,460$2,131
1st Quarter 20201,96493.0%$49,808,604$2,113

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.

Fourth Quarter 2020 Supplemental InformationPage
29

MIXED-USE LEASING SUMMARY
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 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
4th Quarter 202086,30089.2%$9,411,407$109
3rd Quarter 202084,93787.8%$10,534,918$124
2nd Quarter 202092,53195.7%$11,141,336$120
1st Quarter 202095,21698.5%$11,411,642$120
Lease Summary - Hotel Portion
Number of Leased Units
Average Occupancy (4)
Average Daily Rate (4)
Annualized Revenue per Available Room (4)
Quarter
4th Quarter 202017346.8%$205$96
3rd Quarter 202024466.0%$209$138
2nd Quarter 20206317.0%$202$34
1st Quarter 202027875.4%$321$242
Notes:
(1)    Percentage leased for mixed-use property includes square footage under leases as of December 31, 2020, including leases which may not have commenced as of December 31, 2020.
(2)    Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 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 December 31, 2020.
(4)    Average occupancy represents the percentage of available units that were sold during the three months ended December 31, 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.
Fourth Quarter 2020 Supplemental InformationPage
30

LEASE EXPIRATIONS
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 2020
Assumes no exercise of lease options
OfficeRetailMixed-Use (Retail Portion Only)Total
% of% ofAnnualized% of% ofAnnualized% of% ofAnnualized% ofAnnualized
ExpiringOfficeTotalBase RentExpiringRetailTotalBase RentExpiringMixed-UseTotalBase RentExpiringTotalBase Rent
YearSq. 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 Month21,967 0.6 %0.3 %$1.7019,646 0.6 %0.3 %$47.423,824 4.0 %0.1 %$40.8645,437 0.7 %$24.76
2021194,502 5.6 2.9 $43.81114,651 3.7 1.7 $44.7820,354 21.0 0.3 $168.02329,507 5.0 $51.82
2022302,164 8.8 4.6 $47.29398,771 12.9 6.0 $31.376,271 6.5 0.1 $150.63707,206 10.7 $39.23
2023342,044 9.9 5.2 $53.55220,112 7.1 3.3 $21.224,578 4.7 0.1 $8.37566,734 8.5 $40.63
2024195,724 5.7 2.9 $46.64450,829 14.6 6.8 $28.5612,886 13.3 0.2 $144.30659,439 9.9 $36.19
2025322,809 9.4 4.9 $37.99291,278 9.4 4.4 $29.3216,312 16.9 0.2 $83.06630,399 9.5 $35.15
2026279,493 

8.1 4.2 $42.10211,112 6.8 3.2 $26.27— — — $—490,605 7.4 $35.29
2027206,340 6.0 3.1 $50.35103,097 3.3 1.6 $26.1713,255 13.7 0.2 61.75322,692 4.9 $43.09
2028142,954 

4.1 2.2 $49.03560,587 18.1 8.4 $14.408,820 9.1 0.1 92.92712,361 10.7 $22.32
2029754,185 21.9 11.4 $61.78181,689 5.9 2.7 $19.15— — — $—935,874 14.1 $53.50
2030193,031 5.6 2.9 $32.7243,630 1.4 0.7 $19.63— — — 236,661 3.6 $30.31
Thereafter218,385 6.3 3.3 $37.03204,338 6.6 3.1 $23.30— — — 422,723 6.4 $30.39
Signed Leases Not Commenced32,253 0.9 0.5 4,403 0.1 0.1 — — — 36,656 0.6 
Available241,427 7.0 3.6 288,285 9.3 4.3 10,407 10.8 0.2 540,119 8.1 
Total (2)
3,447,278 100.0 %51.9 %$44.303,092,428 100.0 %46.6 %$22.6696,707 100.0 %1.5 %$97.326,636,413 100.0 %$34.99
Assumes all lease options are exercised
OfficeRetailMixed-Use (Retail Portion Only)Total
% of% ofAnnualized% of% ofAnnualized% of% ofAnnualized% ofAnnualized
ExpiringOfficeTotalBase RentExpiringRetailTotalBase RentExpiringMixed-UseTotalBase RentExpiringTotalBase Rent
YearSq. 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 Month21,967 0.6 %0.3 %$1.7019,646 0.6 %0.3 %$47.423,824 4.0 %0.1 %$40.8645,437 0.7 %$24.76
2021166,186 4.8 2.5 $43.9387,983 2.8 1.3 $43.7120,354 21.0 0.3 $168.02274,523 4.1 $53.06
202275,373 2.2 1.1 $47.46112,165 3.6 1.7 $39.176,271 6.5 0.1 $150.63193,809 2.9 $46.00
2023105,582 3.1 1.6 $43.6691,513 3.0 1.4 $22.694,578 4.7 0.1 $8.37201,673 3.0 $33.34
202429,896 0.9 0.5 $41.86209,137 6.8 3.2 $29.537,484 7.7 0.1 $189.65246,517 3.7 $35.89
202571,882 2.1 1.1 $40.7994,713 3.1 1.4 $30.604,754 4.9 0.1 $180.46171,349 2.6 $39.03
202649,471 1.4 0.7 $36.9242,974 1.4 0.6 $27.43— — — $—92,445 1.4 $32.51
2027133,002 3.9 2.0 $37.05142,587 4.6 2.1 $28.2913,255 13.7 0.2 61.75288,844 4.4 $33.86
2028145,374 4.2 2.2 $45.58138,079 4.5 2.1 $22.881,906 2.0 — 209.64285,359 4.3 $35.69
2029155,107 4.5 2.3 $48.95123,123 4.0 1.9 $31.565,402 5.6 0.1 $81.47283,632 4.3 $42.02
2030230,313 6.7 3.5 $37.2865,058 2.1 1.0 $33.6911,558 12.0 0.2 43.00306,929 4.6 $36.73
Thereafter1,989,445 57.7 30.0 $52.001,672,762 54.1 25.2 $21.106,914 7.1 0.1 $60.753,669,121 55.3 $37.93
Signed Leases Not Commenced32,253 0.9 0.5 4,403 0.1 0.1 — — — 36,656 0.6 
Available241,427 7.0 3.6 288,285 9.3 4.3 10,407 10.8 0.2 540,119 8.1 
Total (2)
3,447,278 100.0 %51.9 %$44.303,092,428 100.0 %46.6 %$22.6696,707 100.0 %1.5 %$97.326,636,413 100.0 %$34.99

Fourth Quarter 2020 Supplemental InformationPage
31

LEASE EXPIRATIONS (CONTINUED)
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

As of December 31, 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 December 31, 2020 for the leases expiring during the applicable period by (ii) 12 months.
(2)    Individual items may not add up to total due to rounding.


Fourth Quarter 2020 Supplemental InformationPage
32

PORTFOLIO LEASED STATISTICS
https://cdn.kscope.io/999f40bf0a09a4d424f0f261e5e2324e-image637a.jpg

At December 31, 2020At December 31, 2019
TypeSize
Leased (1)
Leased %Size
Leased (1)
Leased %
Overall Portfolio(2) Statistics
Office Properties (square feet)
3,447,278 3,205,851 93.0 %3,443,879 3,270,595 95.0 %
Retail Properties (square feet) 3,092,428 2,804,143 90.7 %3,093,650 3,026,619 97.8 %
Multifamily Properties (units)2,112 1,820 86.2 %2,112 1,960 92.8 %
Mixed-Use Properties (square feet)96,707 86,300 89.2 %96,707 94,701 97.9 %
Mixed-Use Properties (units)369 189 
(3)
51.3 %369 338 
(3)
91.7 %
Same-Store(2) Statistics
Office Properties (square feet)(4)
3,347,008 3,190,404 95.3 %3,346,265 3,226,707 96.4 %
Retail Properties (square feet)(5)
2,674,381 2,386,096 89.2 %2,675,603 2,610,522 97.6 %
Multifamily Properties (units)2,112 1,820 86.2 %2,112 1,960 92.8 %

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 year ended December 31, 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.


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TOP TENANTS - OFFICE
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As of December 31, 2020
TenantPropertyLease ExpirationTotal Leased Square FeetRentable Square Feet as a Percentage of Total OfficeRentable Square Feet as a Percentage of TotalAnnualized Base RentAnnualized Base Rent as a Percentage of Total OfficeAnnualized Base Rent as a Percentage of Total
Google LLCThe Landmark at One Market12/31/2029253,198 7.3 %3.8 %$24,178,824 14.8 %10.0 %
LPL Holdings, Inc.La Jolla Commons4/30/2029421,001 12.2 6.3 18,143,812 11.1 7.5 
Autodesk, Inc. (1)The Landmark at One Market12/31/2022
12/31/2023
138,615 4.0 2.1 12,273,512 7.5 5.1 
Smartsheet, Inc. (2)City Center Bellevue12/31/2026
4/30/2029
124,217 3.6 1.9 6,572,101 4.0 2.7 
VMware, Inc. (3)City Center Bellevue11/30/2022
5/31/2025
9/30/2027
109,985 3.2 1.7 5,579,954 3.4 2.3 
Illumina, Inc.La Jolla Commons10/31/202773,176 2.1 1.1 4,302,751 2.6 1.8 
Clearesult Operating, LLCFirst & Main4/30/2025101,848 3.0 1.5 2,902,976 1.8 1.2 
State of Oregon: Department of Environmental QualityLloyd District Portfolio10/31/203187,787 2.5 1.3 2,766,541 1.7 1.1 
Genentech, Inc.Lloyd District Portfolio10/31/202666,852 1.9 1.0 2,203,442 1.4 0.9 
10 Internal Revenue ServiceFirst & Main8/31/203063,648 1.8 1.0 2,200,553 1.4 0.9 
Top 10 Office Tenants Total1,440,327 41.6 %21.7 %$81,124,466 49.7 %33.5 %

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 Smartsheet, Inc., 73,669 and 50,548 of leased square feet are set to expire on December 31, 2026 and April 30, 2029, respectively.
(3)     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.



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TOP TENANTS - RETAIL
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As of December 31, 2020
TenantProperty(ies)Lease ExpirationTotal Leased Square FeetRentable Square Feet as a Percentage of Total RetailRentable Square Feet as a Percentage of TotalAnnualized Base RentAnnualized Base Rent as a Percentage of Total RetailAnnualized Base Rent as a Percentage of Total
Lowe'sWaikele Center5/31/2028155,000 5.0 %2.3 %$3,720,000 5.3 %1.5 %
Nordstrom Rack (1)Carmel Mountain Plaza,
Alamo Quarry Market
9/30/2022
10/31/2022
69,047 2.2 1.0 2,189,648 3.1 0.9 
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 2,121,187 3.0 0.9 
Marshalls (3)Solana Beach Towne Centre,
Carmel Mountain Plaza
1/31/2025
1/31/2029
68,055 2.2 1.0 1,728,228 2.5 0.7 
VonsLomas Santa Fe Plaza12/31/202249,895 1.6 0.8 1,399,205 2.0 0.6 
At Home StoresCarmel Mountain Plaza7/31/2029107,870 3.5 1.6 1,384,552 2.0 0.6 
Regal CinemasAlamo Quarry Market3/31/202872,447 2.3 1.1 1,231,599 1.8 0.5 
SafewayWaikele Center1/31/204050,050 1.6 0.8 1,201,200 1.7 0.5 
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 0.4 
10 Saks Fifth Avenue OFF 5THCarmel Mountain Plaza1/31/202540,594 1.3 0.6 1,033,117 1.5 0.4 
Top 10 Retail Tenants Total731,239 23.5 %11.0 %$17,081,371 24.4 %7.0 %


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.


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APPENDIX




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GLOSSARY OF TERMS
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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 months and year ended December 31, 2020 and 2019 is as follows:
    
Three Months Ended Year Ended
December 31,December 31,
2020201920202019
Net income$3,788 $16,485 $35,588 $60,188 
Depreciation and amortization 27,423 26,472 108,292 96,205 
Interest expense 13,335 13,796 53,440 54,008 
Interest income(21)(397)(436)(696)
Income tax expense(136)110 (9)819 
Gain on sale of real estate— — — (633)
EBITDA$44,389 $56,466 $196,875 $209,891 

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 Year Ended
December 31,December 31,
2020201920202019
EBITDA$44,389 $56,466 $196,875 $209,891 
Pro forma adjustments— — — — 
Adjusted EBITDA$44,389 $56,466 $196,875 $209,891 

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 months and year ended December 31, 2020 and 2019 is as follows:
Three Months Ended Year Ended
December 31,December 31,
2020201920202019
Net income$3,788 $16,485 $35,588 $60,188 
Depreciation and amortization 27,423 26,472 108,292 96,205 
Interest expense 13,335 13,796 53,440 54,008 
Interest income(21)(397)(436)(696)
Income tax expense(136)110 (9)819 
Gain on sale of real estate— — — (633)
EBITDAre
$44,389 $56,466 $196,875 209,891 

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GLOSSARY OF TERMS (CONTINUED)
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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 Year Ended
December 31,December 31,
Reconciliation of NOI to net income2020201920202019
Total NOI$50,482 $62,841 $223,454 $234,761 
General and administrative(6,644)(6,376)(26,581)(24,871)
Depreciation and amortization(27,423)(26,472)(108,292)(96,205)
Operating Income$16,415 $29,993 $88,581 $113,685 
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other income (expense), net708 288 447 (122)
Net income$3,788 $16,485 $35,588 $60,188 
Net income attributable to restricted shares(123)(104)(383)(381)
Net income attributable to unitholders in the Operating Partnership(767)(3,536)(7,545)(14,089)
Net income attributable to American Assets Trust, Inc. stockholders$2,898 $12,845 $27,660 $45,718 

Overall Portfolio: Includes all operating properties owned by us as of December 31, 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
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GLOSSARY OF TERMS (CONTINUED)
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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 Year Ended
December 31,December 31,
Reconciliation of Total Cash NOI to Net Income2020201920202019
Total Cash NOI$49,712 $59,927 $201,753 $223,733 
Non-cash revenue and other operating expenses (1)
770 2,914 21,701 11,028 
General and administrative(6,644)(6,376)(26,581)(24,871)
Depreciation and amortization(27,423)(26,472)(108,292)(96,205)
Operating income$16,415 $29,993 $88,581 $113,685 
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other income (expense), net708 288 447 (122)
Net income$3,788 $16,485 $35,588 $60,188 
(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)
Year Ended (2)
December 31,December 31,
Reconciliation of Same-Store Cash NOI Comparison with Redevelopment to Operating Income2020201920202019
Same-Store Cash NOI$46,335 $47,822 $158,085 $163,160 
Redevelopment Cash NOI (3)
3,134 2,596 8,723 11,536 
Same-Store Cash NOI with Redevelopment49,469 50,418 166,808 174,696 
Tenant improvement reimbursements137 3,498 5,230 11,945 
Total Same-Store Cash NOI with Redevelopment$49,606 $53,916 $172,038 $186,641 
Non-Same Store Cash NOI106 6,011 29,715 37,092 
Total Cash NOI$49,712 $59,927 $201,753 $223,733 
Non-cash revenue and other operating expenses (4)
770 2,914 21,701 11,028 
General and administrative(6,644)(6,376)(26,581)(24,871)
Depreciation and amortization(27,423)(26,472)(108,292)(96,205)
Operating income$16,415 $29,993 $88,581 $113,685 
Interest expense(13,335)(13,796)(53,440)(54,008)
Gain on sale of real estate— — — 633 
Other income (expense), net708 288 447 (122)
Net income$3,788 $16,485 $35,588 $60,188 
(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)
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(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)
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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 Year Ended
December 31, 2020 to 2019December 31, 2020 to 2019
Same-StoreNon Same-StoreRedevelopment Same-StoreSame-StoreNon Same-StoreRedevelopment Same-Store
Office Properties
La Jolla CommonsXXX
Torrey Reserve CampusXXXX
Torrey PointXXXX
Solana Crossing (formerly Solana Beach Corporate Centre)XXXX
The Landmark at One MarketXXXX
One Beach StreetXXXX
First & MainXXXX
Lloyd District Portfolio (1)
XXXX
City Center BellevueXXXX
Retail Properties
Carmel Country PlazaXXXX
Carmel Mountain PlazaXXXX
South Bay MarketplaceXXXX
Gateway MarketplaceXXXX
Lomas Santa Fe PlazaXXXX
Solana Beach Towne CentreXXXX
Del Monte CenterXXXX
Geary MarketplaceXXXX
The Shops at KalakauaXXXX
Waikele CenterXXXX
Alamo Quarry MarketXXXX
Hassalo on Eighth - RetailXXXX
Multifamily Properties
Loma PalisadesXXXX
Imperial Beach GardensXXXX
Mariner's PointXXXX
Santa Fe Park RV ResortXXXX
Pacific Ridge ApartmentsXXXX
Hassalo on EighthXXXX
Mixed-Use Properties
Waikiki Beach Walk - RetailXX
Waikiki Beach Walk - Embassy Suites™XX
Development Properties
La Jolla Commons - LandXX
Solana Crossing - LandXX
Lloyd District Portfolio - LandXXXX
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GLOSSARY OF TERMS (CONTINUED)
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(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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