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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):
July 27, 2021
_________________________
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American Assets Trust, Inc.
(Exact name of registrant as specified in its charter)
_________________________
Maryland
001-35030
27-3338708
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

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

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

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

_________________________

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

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

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

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





Item 2.02    Results of Operations and Financial Condition.

On July 27, 2021, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending June 30, 2021. Also on July 27, 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 ending June 30, 2021. 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 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arranges of Certain Officers.

On July 23, 2021, the Board of Directors of the Company appointed Adam Wyll to the position of President and Chief Operating Officer. Mr. Wyll has served as the Company's Executive Vice President and Chief Operating Officer since November 2019 and as the Company’s Senior Vice President, General Counsel and Secretary from the Company's initial public offering in January 2011 until November 2019. Mr. Wyll holds a doctorate of jurisprudence degree from the University of Texas at Austin, School of Law and bachelor of business administration degree in finance from the University of Texas at Austin, School of Business. Ernest Rady will continue to serve as the Chairman of the Board of Directors and Chief Executive Officer of the Company.

Item 7.01    Regulation FD Disclosure.

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the quarter ending June 30, 2021 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

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
American Assets Trust, Inc.
By:
/s/ Robert F. Barton
Robert F. Barton
Executive Vice President, CFO
July 27, 2021

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Document

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American Assets Trust, Inc. Reports Second Quarter 2021 Financial Results

Net income available to common stockholders of $8.9 million and $10.2 million for the three and six months ended June 30, 2021, respectively, or $0.15 and $0.17 per diluted share, respectively
Funds From Operations per diluted share increased 6% and decreased 14% year-over-year for the three and six months ended June 30, 2021, respectively, or $0.51 and $0.89 per diluted share, respectively
On a sequential basis, Funds From Operations per diluted share increased 34% from the first to the second quarter of 2021, from $0.38 to $0.51 per diluted share

SAN DIEGO, California - 7/27/2021 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its second quarter ended June 30, 2021.

Second Quarter Highlights
Net income available to common stockholders of $8.9 million and $10.2 million for the three and six months ended June 30, 2021, respectively, or $0.15 and $0.17 per diluted share, respectively.
Funds From Operations increased 6% and decreased 14% year-over-year to $0.51 and $0.89 per diluted share for the three and six months ended June 30, 2021, respectively, compared to the same periods in 2020.
On a sequential basis, Funds From Operations per diluted share increased 34% from the first to the second quarter of 2021, from $0.38 to $0.51 per diluted share.
Same-store cash NOI increased 23.3% and 6.4% year-over-year for the three and six months ended June 30, 2021, respectively. Excluding lease termination fees, same-store cash NOI would have been 23.0% and 5.7% for the three and six months ended June 30, 2021, respectively.
For the three months ended June 30, 2021, we have collected 99% of office rents, 92% of retail rents (including the retail component of Waikiki Beach Walk) and 94% of multifamily rents, that were due during the second quarter.
Total collections increased to 96% in the second quarter of 2021.
Leased approximately 47,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 15% and increase of 9%, respectively, during the three months ended June 30, 2021.
Leased approximately 110,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent decrease of 16% and decrease of 20%, respectively, during the three months ended June 30, 2021.

Eastgate Office Park
Closed on acquisition of Eastgate Office Park on July 7, 2021, consisting of an approximately 280,000 square foot, multi-tenant office campus in the premier I-90 corridor submarket of Bellevue, Washington for $125 million.


Financial Results
Net income attributable to common stockholders was $8.9 million, or $0.15 per basic and diluted share for the three months ended June 30, 2021 compared to $7.7 million, or $0.13 per basic and diluted share for the three months ended June 30, 2020. For the six months ended June 30, 2021, net income attributed to common stockholders was $10.2 million, or $0.17 per basic and diluted share compared to $19.7 million, or $0.33 per basic and diluted share for the six months ended June 30, 2020. The year-over-year decrease in net income attributable to common stockholders is primarily due to (i) a $4.3 million debt extinguishment charge related to the repayment of the
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company's Senior Guaranteed Notes, Series A on January 26, 2021, (ii) a $2.4 million decrease in rental revenue for tenants who were changed to cash basis of revenue recognition during 2020 as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, The Shops at Kalakaua, and Waikiki Beach Walk Retail, in large part due to, collection challenges with our movie theatres and gyms and a reduction in Hawaii tourism, (iii) 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, (iv) increase in interest expense related to our $500 million public bond offering at 3.375% issued in January of 2021. These decreases were partially offset by an incremental increase in annualized base rents at La Jolla Commons, City Center Bellevue, and Torrey Reserve Campus.

During the second quarter of 2021, the company generated Funds From Operations (“FFO”) for common stockholders of $39.0 million, or $0.51 per diluted share, compared to $36.3 million, or $0.48 per diluted share, for the second quarter of 2020. For the six months ended June 30, 2021, the company generated FFO for common stockholders of $68.1 million, or $0.89 per diluted share, compared to $79.1 million, or $1.04 per diluted share, for the six months ended June 30, 2020. The decrease in FFO from the corresponding period in 2020 was primarily due to the above described debt extinguishment charge, increase in interest expense related to the $500 million public bond offering and a decrease in rental revenue from tenants who were changed to cash basis of revenue recognition, 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:
June 30, 2021March 31, 2021June 30, 2020
Total Portfolio
Office 90.3%91.4%94.4%
Retail91.1%90.8%94.7%
Multifamily87.8%91.9%85.1%
Mixed-Use:
Retail89.2%88.2%95.7%
Hotel (1)
67.2%47.5%46.4%
Same-Store Portfolio
Office (2)
92.6%93.7%96.4%
Retail91.1%90.8%94.7%
Multifamily87.8%91.9%85.1%
(1) Based on quarter-to-date average occupancy for the three months ended June 30, 2021. The rate for the month of June 2021 was $316.18 and the occupancy was 82.9%.
(2) Same-store office leased percentages excludes One Beach Street due to significant redevelopment activity.

During the second quarter of 2021, the company signed 44 leases for approximately 171,500 square feet of office and retail space, as well as 511 multifamily apartment leases. Renewals accounted for 62% of the comparable office leases, 77% of the comparable retail leases, and 44% of the residential leases.


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Office and Retail
On a comparable space basis (i.e. leases for which there was a former tenant) during the second quarter of 2021 and trailing four quarters ended June 30, 2021, 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
OfficeQ2 20211347,0009.3%$47.16$43.1614.7%
Last 4 Quarters43190,0004.1%$45.02$43.267.6%
RetailQ2 202126110,000(20.3)%$47.42$59.48(15.7)%
Last 4 Quarters89374,000(13.7)%$38.53$44.63(9.0)%


Multifamily
The average monthly base rent per leased unit for same-store properties for the second quarter of 2021 was $2,187 compared to an average monthly base rent per leased unit of $2,152 for the second quarter of 2020, which is an increase of approximately 2%.

Same-Store Cash Net Operating Income
For the three and six months ended June 30, 2021, same-store cash NOI decreased 23.3% and 6.4%, respectively, compared to the three and six months ended June 30, 2020. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Six Months Ended (1)
June 30,June 30,
20212020Change20212020Change
Cash Basis:
Office (2)
$30,088 $26,897 11.9 $56,886 $53,591 6.1 %
Retail (2)
17,142 9,257 85.2 %31,859 27,660 15.2 
Multifamily6,651 7,555 (12.0)13,454 14,821 (9.2)
Mixed-Use— — — — — — 
Same-store Cash NOI (3)
$53,881 $43,709 23.3 %$102,199 $96,072 6.4 %

(1)    Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iii) land held for development.
(2)    Same-store cash NOI for the three and six months ended June 30, 2021 includes cash lease termination fees received of $0.5 million and $0.6 million, respectively.
(3)    Excluding lease termination fees for the three and six months ended June 30, 2021, same-store cash NOI would have been 23.0% and 5.7%, 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 June 30, 2021, the company had gross real estate assets of $3.3 billion and liquidity of $718.3 million, comprised of cash and cash equivalents of $368.3 million and $350.0 million of availability on its line of credit, which the company believes is sufficient to meet the company's short-term liquidity requirements. At June 30, 2021, the company has only 1 out of 28 assets encumbered by a mortgage. The company has no debt obligations maturing during the remainder of 2021.

Dividends
The company declared dividends on its shares of common stock of $0.28 per share for the second quarter of 2021. The dividends were paid on June 24, 2021.

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In addition, the company has declared a dividend on its common stock of $0.30 per share for the third quarter of 2021. The dividend will be paid in cash on September 23, 2021 to stockholders of record on September 9, 2021. The company increased the dividend from $0.28 per share in the second quarter of 2021 based on the company's rent collection in the second quarter and better than anticipated revenue at Waikiki Beach Walk - Embassy Suites Hotel.

COVID-19 Operational Update

Rent Collection for the Second Quarter of 2021 and July 2021(1)
AprilMayJuneQ2 AverageJuly
Office99.3%99.3%99.1%99.3%99.0%
Retail94.3%94.2%95.6%94.7%93.1%
Multifamily94.3%93.8%94.6%94.2%91.1%
Mixed-Use (2)
69.7%71.6%72.4%71.2%63.4%
Average95.9%96.0%96.5%96.1%94.8%
(1) Data as of July 15, 2021.
(2) Includes only the retail portion of Waikiki Beach Walk Retail and Embassy Suites Hotel.

Rent Deferrals
As of June 30, 2021, we have entered into deferral agreements for $8.2 million of recurring rents related to the second quarter of 2020 through the second quarter of 2021. The weighted average payback period of the deferral agreements is approximately 38 months. Revenue from approximately 66% of tenants with deferral agreements is recognized on a straight-line basis comprising approximately 42% of the deferred amount. For the second quarter of 2021, we collected approximately 94% of the $0.8 million of the deferred rent repayments due during the period.

Conference Call
The company will hold a conference call to discuss the results for the second quarter of 2021 on Wednesday, July 28, 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 8731469. A telephonic replay of the conference call will be available beginning at 2:00 p.m. PT on Wednesday, July 28, 2021 through Wednesday, August 4, 2021. To access the replay, dial 1-855-859-2056 and use the pass code 8731469. 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 second quarter 2021 results may be found on the "Financial Reporting" tab of the “Investors” page of the company's website at www.americanassetstrust.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.
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Financial Information
American Assets Trust, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Data)
June 30, 2021December 31, 2020
Assets(unaudited) 
Real estate, at cost  
Operating real estate$3,171,449 $3,155,280 
Construction in progress115,546 91,047 
Held for development547 547 
3,287,542 3,246,874 
Accumulated depreciation(801,482)(754,140)
Real estate, net2,486,060 2,492,734 
Cash and cash equivalents368,266 137,333 
Restricted cash1,716 1,716 
Accounts receivable, net6,582 6,938 
Deferred rent receivables, net77,674 72,476 
Other assets, net105,233 106,112 
Total assets$3,045,531 $2,817,309 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$110,944 $110,923 
Unsecured notes payable, net1,537,307 1,196,677 
Unsecured line of credit, net— 99,151 
Accounts payable and accrued expenses80,291 59,262 
Security deposits payable6,728 6,590 
Other liabilities and deferred credits, net83,115 91,300 
Total liabilities1,818,385 1,563,903 
Commitments and contingencies  
Equity:  
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,474,866 and 60,476,292 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively605 605 
Additional paid-in capital1,448,612 1,445,644 
Accumulated dividends in excess of net income(199,956)(176,560)
Accumulated other comprehensive income 2,122 1,753 
Total American Assets Trust, Inc. stockholders' equity1,251,383 1,271,442 
Noncontrolling interests(24,237)(18,036)
Total equity1,227,146 1,253,406 
Total liabilities and equity$3,045,531 $2,817,309 

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American Assets Trust, Inc.
Unaudited Consolidated Statements of Operations
(In Thousands, Except Shares and Per Share Data)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenue:
Rental income$87,639 $79,230 $168,769 $171,300 
Other property income4,170 2,879 7,026 7,552 
Total revenue91,809 82,109 175,795 178,852 
Expenses:
Rental expenses20,204 16,981 38,450 39,549 
Real estate taxes10,612 8,961 21,966 20,006 
General and administrative6,924 6,679 13,747 13,499 
Depreciation and amortization27,646 26,493 55,147 53,955 
Total operating expenses65,386 59,114 129,310 127,009 
Operating income26,423 22,995 46,485 51,843 
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt— — (4,271)— 
Other income (expense), net(74)162 (127)270 
Net income11,487 9,826 13,220 25,310 
Net income attributable to restricted shares(135)(69)(272)(173)
Net income attributable to unitholders in the Operating Partnership
(2,411)(2,101)(2,750)(5,413)
Net income attributable to American Assets Trust, Inc. stockholders
$8,941 $7,656 $10,198 $19,724 
Net income per share
Basic income attributable to common stockholders per share
$0.15 $0.13 $0.17 $0.33 
Weighted average shares of common stock outstanding - basic
59,985,787 59,724,139 59,985,065 59,723,605 
Diluted income attributable to common stockholders per share
$0.15 $0.13 $0.17 $0.33 
Weighted average shares of common stock outstanding - diluted
76,167,324 76,114,687 76,166,602 76,114,153 
Dividends declared per common share$0.28 $0.20 $0.56 $0.50 

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Reconciliation of Net Income to Funds From Operations
The company's FFO attributable to common stockholders and operating partnership unitholders and reconciliation to net income is as follows (in thousands except shares and per share data, unaudited):
Three Months Ended Six Months Ended
June 30, 2021June 30, 2021
Funds From Operations (FFO)
Net income$11,487 $13,220 
Depreciation and amortization of real estate assets 27,646 55,147 
FFO, as defined by NAREIT$39,133 $68,367 
Less: Nonforfeitable dividends on restricted stock awards(134)(269)
FFO attributable to common stock and units$38,999 $68,098 
FFO per diluted share/unit$0.51 $0.89 
Weighted average number of common shares and units, diluted76,167,246 76,166,158 

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 (1)
June 30,June 30,
2021202020212020
Same-store cash NOI53,881 $43,709 $102,199 $96,072 
Non-same-store cash NOI4,628 (1,463)6,022 2,867 
Tenant improvement reimbursements (2)
220 202 291 2,998 
Cash NOI$58,729 $42,448 $108,512 $101,937 
Non-cash revenue and other operating expenses (3)
2,264 13,719 6,867 17,360 
General and administrative(6,924)(6,679)(13,747)(13,499)
Depreciation and amortization(27,646)(26,493)(55,147)(53,955)
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt— — (4,271)
Other income (expense), net(74)162 (127)270 
Net income$11,487 $9,826 $13,220 $25,310 
Number of properties included in same-store analysis26242624
(1)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iii) land held for development.
(2)    Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.
(3)    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, and straight-line rent expense for our lease of the Annex at The Landmark at One Market.

Reported results are preliminary and not final until the filing of the company's Form 10-Q with the Securities and Exchange Commission and, therefore, remain subject to adjustment.
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Use of Non-GAAP Information
Funds from Operations
The company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, 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.

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About American Assets Trust, Inc.
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, 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 3.7 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

SECOND QUARTER 2021
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%54%
Retail3.1 million48%27%
Data is as of June 30, 2021.Totals6.5 million
(1) Includes 122 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended June 30, 2021. Reconciliation of NOI to net income is included in the Glossary of Terms.

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INDEX
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SECOND QUARTER 2021 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.
Second Quarter 2021 Supplemental InformationPage
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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)June 30, 2021December 31, 2020
ASSETS(unaudited)(audited)
Real estate, at cost
Operating real estate$3,171,449 $3,155,280 
Construction in progress115,546 91,047 
Held for development547 547 
3,287,542 3,246,874 
Accumulated depreciation(801,482)(754,140)
Net real estate2,486,060 2,492,734 
Cash and cash equivalents368,266 137,333 
Restricted cash1,716 1,716 
Accounts receivable, net6,582 6,938 
Deferred rent receivable, net77,674 72,476 
Other assets, net105,233 106,112 
TOTAL ASSETS$3,045,531 $2,817,309 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$110,944 $110,923 
Unsecured notes payable, net1,537,307 1,196,677 
Unsecured line of credit, net— 99,151 
Accounts payable and accrued expenses80,291 59,262 
Security deposits payable6,728 6,590 
Other liabilities and deferred credits, net83,115 91,300 
Total liabilities1,818,385 1,563,903 
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,474,866 and 60,476,292 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively605 605 
Additional paid in capital1,448,612 1,445,644 
Accumulated dividends in excess of net income(199,956)(176,560)
Accumulated other comprehensive income 2,122 1,753 
Total American Assets Trust, Inc. stockholders' equity1,251,383 1,271,442 
Noncontrolling interests(24,237)(18,036)
Total equity1,227,146 1,253,406 
TOTAL LIABILITIES AND EQUITY$3,045,531 $2,817,309 

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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Six Months Ended
June 30,June 30,
 2021202020212020
REVENUE:
Rental income$87,639 $79,230 $168,769 $171,300 
Other property income4,170 2,879 7,026 7,552 
Total revenue91,809 82,109 175,795 178,852 
EXPENSES:
Rental expenses20,204 16,981 38,450 39,549 
Real estate taxes10,612 8,961 21,966 20,006 
General and administrative6,924 6,679 13,747 13,499 
Depreciation and amortization27,646 26,493 55,147 53,955 
Total operating expenses65,386 59,114 129,310 127,009 
OPERATING INCOME26,423 22,995 46,485 51,843 
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt(4,271)— 
Other (expense) income, net(74)162 (127)270 
NET INCOME11,487 9,826 13,220 25,310 
Net income attributable to restricted shares(135)(69)(272)(173)
Net income attributable to unitholders in the Operating Partnership(2,411)(2,101)(2,750)(5,413)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$8,941 $7,656 $10,198 $19,724 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.15 $0.13 $0.17 $0.33 
Weighted average shares of common stock outstanding - basic59,985,787 59,724,139 59,985,065 59,723,605 
Diluted income from continuing operations attributable to common stockholders per share$0.15 $0.13 $0.17 $0.33 
Weighted average shares of common stock outstanding - diluted76,167,324 76,114,687 76,166,602 76,114,153 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Six Months Ended
June 30,June 30,
2021202020212020
Funds from Operations (FFO) (1)
Net income$11,487 $9,826 $13,220 $25,310 
Depreciation and amortization of real estate assets 27,646 26,493 55,147 53,955 
FFO, as defined by NAREIT39,133 36,319 68,367 79,265 
Less: Nonforfeitable dividends on restricted stock awards(134)(68)(269)(170)
FFO attributable to common stock and common units$38,999 $36,251 $68,098 $79,095 
FFO per diluted share/unit$0.51 $0.48 $0.89 $1.04 
Weighted average number of common shares and common units, diluted (2)
76,167,246 76,115,546 76,166,158 76,114,609 
Funds Available for Distribution (FAD) (1)
$26,453 $10,137 $44,482 $29,202 
Dividends
Dividends declared and paid$21,464 $15,293 $42,927 $38,230 
Dividends declared and paid per share/unit$0.28 $0.20 $0.56 $0.50 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Six Months Ended
June 30,June 30,
2021202020212020
Funds Available for Distribution (FAD) (1)
FFO$39,133 $36,319 $68,367 $79,265 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (12,347)(14,015)(20,875)(35,777)
Net effect of straight-line rents (3)
(1,905)(7,124)(7,126)(9,876)
Amortization of net above (below) market rents (4)
(749)(955)(1,528)(1,902)
Net effect of other lease assets (5)
392 (5,640)1,789 (5,582)
Amortization of debt issuance costs and debt fair value adjustment579 368 1,156 742 
Non-cash compensation expense1,484 1,252 2,968 2,502 
Nonforfeitable dividends on restricted stock awards(134)(68)(269)(170)
FAD$26,453 $10,137 $44,482 $29,202 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $7,383 $7,892 $12,101 $22,924 
Maintenance capital expenditures4,964 6,123 8,774 12,853 
$12,347 $14,015 $20,875 $35,777 

Notes:
(1)    See Glossary of Terms.
(2)    For the three and six months ended June 30, 2021 and 2020, 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, 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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(Unaudited, amounts in thousands)Three Months Ended June 30, 2021
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$44,637 $22,981 $12,739 $— $80,357 
Non-same store (1)
(67)— — 11,519 11,452 
Total44,570 22,981 12,739 11,519 91,809 
Real estate expenses
Same-store11,400 6,735 5,493 — 23,628 
Non-same store (1)
248 — — 6,940 7,188 
Total11,648 6,735 5,493 6,940 30,816 
Net Operating Income (NOI)
Same-store33,237 16,246 7,246 — 56,729 
Non-same store (1)
(315)— — 4,579 4,264 
Total$32,922 $16,246 $7,246 $4,579 $60,993 
Same-store NOI$33,237 $16,246 $7,246 $— $56,729 
Net effect of straight-line rents (2)
(2,545)644 (263)— (2,164)
Amortization of net above (below) market rents (3)
(458)(262)— — (720)
Net effect of other lease assets (4)
73 515 (332)— 256 
Tenant improvement reimbursements (5)
(219)(1)— — (220)
Same-store cash NOI (5)
$30,088 $17,142 $6,651 $— $53,881 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on June 30, 2021 and 2020. 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)Six Months Ended June 30, 2021
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$88,858 $44,755 $25,291 $— $158,904 
Non-same store (1)
176 — — 16,715 16,891 
Total89,034 44,755 25,291 16,715 175,795 
Real estate expenses
Same-store22,497 14,177 10,984 — 47,658 
Non-same store (1)
515 — — 12,243 12,758 
Total23,012 14,177 10,984 12,243 60,416 
Net Operating Income (NOI)
Same-store66,361 30,578 14,307 — 111,246 
Non-same store (1)
(339)— — 4,472 4,133 
Total$66,022 $30,578 $14,307 $4,472 $115,379 
Same-store NOI$66,361 $30,578 $14,307 $— $111,246 
Net effect of straight-line rents (2)
(8,538)1,281 (521)— (7,778)
Amortization of net above (below) market rents (3)
(946)(525)— — (1,471)
Net effect of other lease assets (4)
298 527 (332)— 493 
Tenant improvement reimbursements (5)
(289)(2)— — (291)
Same-store cash NOI (5)
$56,886 $31,859 $13,454 $— $102,199 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on June 30, 2021 and 2020. 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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(Unaudited, amounts in thousands)Three Months Ended Six Months Ended
June 30,June 30,
20212020Change20212020Change
Cash Basis:
Office$30,088 $26,897 11.9 %$56,886 $53,591 6.1 %
Retail17,142 9,257 85.2 31,859 27,660 15.2 
Multifamily6,651 7,555 (12.0)13,454 14,821 (9.2)
Mixed-Use— — — — — — 
Same-store Cash NOI (1)(2)
$53,881 $43,709 23.3 %$102,199 $96,072 6.4 %

Notes:
(1)    Excluding lease termination fees, for the three and six months ended June 30, 2021 and 2020, same-store cash NOI would be 23.0% and 5.7%, 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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(Unaudited, amounts in thousands)Three Months EndedSix Months Ended
June 30,June 30,
20212020Change20212020Change
Cash Basis:
Office$30,181 $26,763 12.8 %$56,990 $53,292 6.9 %
Retail17,142 9,257 85.2 31,859 27,660 15.2 
Multifamily6,651 7,555 (12.0)13,454 14,821 (9.2)
Mixed-Use— — — — — — 
Same-store Cash NOI with Redevelopment (1)(2)
$53,974 $43,575 23.9 %$102,303 $95,773 6.8 %

Notes:
(1)    Excluding lease termination fees, for the three and six months ended June 30, 2021 and 2020, same-store cash NOI with redevelopment would be 23.3% and 6.8%, 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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(Unaudited, amounts in thousands)Three Months Ended June 30, 2021
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California13,419 8,487 5,844 — 27,750 
Northern California6,457 2,005 — — 8,462 
Hawaii— 3,241 — 4,546 7,787 
Oregon5,703 353 808 — 6,864 
Texas— 3,058 — — 3,058 
Washington4,808 — — — 4,808 
Total Cash NOI$30,387 $17,144 $6,652 $4,546 $58,729 


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 June 30, 2021
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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(Unaudited, amounts in thousands)Three Months Ended June 30, 2021
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$7,547 $149 $2,268 $(2,590)$(104)$7,270 
Torrey Reserve Campus (7)
5,134 67 221 (1,426)73 4,069 
Torrey Point1,219 79 — (327)(346)625 
Solana Crossing1,974 10 45 (506)(58)1,465 
The Landmark at One Market9,608 69 102 (2,628)(881)6,270 
One Beach Street 163 137 20 (132)(1)187 
First & Main2,695 175 653 (893)(152)2,478 
Lloyd Portfolio (7)
4,140 261 178 (1,240)(19)3,320 
City Center Bellevue 5,839 600 263 (1,613)(281)4,808 
Subtotal Office Portfolio$38,319 $1,547 $3,750 $(11,355)$(1,769)$30,492 
Retail Portfolio
Carmel Country Plaza$852 $24 $184 $(219)$41 $882 
Carmel Mountain Plaza3,077 107 706 (848)143 3,185 
South Bay Marketplace479 (15)138 (166)183 619 
Gateway Marketplace634 201 (216)36 656 
Lomas Santa Fe Plaza1,385 333 (427)100 1,399 
Solana Beach Towne Centre1,473 63 528 (564)246 1,746 
Del Monte Center 2,523 385 798 (1,210)(745)1,751 
Geary Marketplace267 — 132 (139)(6)254 
The Shops at Kalakaua148 39 54 (72)(18)151 
Waikele Center2,919 375 946 (1,695)545 3,090 
Alamo Quarry Market3,163 395 714 (1,083)(131)3,058 
Hassalo on Eighth - Retail 431 25 42 (94)(51)353 
Subtotal Retail Portfolio$17,351 $1,407 $4,776 $(6,733)$343 $17,144 

Second Quarter 2021 Supplemental InformationPage
15

PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
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(Unaudited, amounts in thousands)Three Months Ended June 30, 2021
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$3,563 $246 $— $(1,383)$(5)$2,421 
Imperial Beach Gardens970 62 — (367)(20)645 
Mariner's Point485 31 — (177)(11)328 
Santa Fe Park RV Resort401 31 — (250)— 182 
Pacific Ridge Apartments4,084 245 — (1,787)(274)2,268 
Hassalo on Eighth - Multifamily2,572 364 — (1,530)(598)808 
Subtotal Multifamily Portfolio$12,075 $979 $ $(5,494)$(908)$6,652 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$6,179 $1,157 $604 $(1,568)$(3,379)$2,993 
Waikiki Beach Walk - Embassy Suites™6,189 733 — (5,371)1,553 
Subtotal Mixed-Use Portfolio$12,368 $1,890 $604 $(6,939)$(3,377)$4,546 
Subtotal Development Properties$ $9 $ $(116)$2 $(105)
Total$80,113 $5,832 $9,130 $(30,637)$(5,709)$58,729 
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 June 30, 2021 (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 $1.8 million and $0.6 million, respectively, for the three months ended June 30, 2021. Total abatements for our mixed-use portfolio were approximately $2.2 million for the three months ended June 30, 2021. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Multifamily portfolio base rent represents base rent (including parking, before abatements) less vacancy allowance and employee rent credits and includes additional rents (additional rents include insufficient notice penalties, month-to-month charges and pet rent). There were $0.6 million of abatements for our multifamily portfolio for the three months ended June 30, 2021. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended June 30, 2021. Total tenant improvement reimbursements for our office portfolio was approximately $0.2 million for the three months ended June 30, 2021. There were no tenant improvement reimbursements for our retail portfolio or the retail portion of our mixed-use portfolio for the three months ended June 30, 2021.
(2)    Represents additional property-related income for the three months ended June 30, 2021, 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 June 30, 2021.
(4)    Represents property operating expenses for the three months ended June 30, 2021. 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 Point and Lloyd Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent and abatements were both $345 for the three months ended June 30, 2021.
Second Quarter 2021 Supplemental InformationPage
16

SEGMENT CAPITAL EXPENDITURES
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(Unaudited, amounts in thousands)Three Months Ended June 30, 2021
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$5,731 $3,157 $8,888 $3,230 $9,225 $21,343 
Retail Portfolio1,368 405 1,773 — 1,778 
Multifamily Portfolio— 1,002 1,002 31 — 1,033 
Mixed-Use Portfolio284 400 684 — — 684 
Total$7,383 $4,964 $12,347 $3,266 $9,225 $24,838 
Six Months Ended June 30, 2021
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$8,939 $5,796 $14,735 $6,001 $10,134 $30,870 
Retail Portfolio2,953 534 3,487 13 — 3,500 
Multifamily Portfolio— 1,965 1,965 31 — 1,996 
Mixed-Use Portfolio209 479 688 — — 688 
Total$12,101 $8,774 $20,875 $6,045 $10,134 $37,054 

Second Quarter 2021 Supplemental InformationPage
17

SUMMARY OF OUTSTANDING DEBT
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(Unaudited, amounts in thousands)Amount
Outstanding atAnnual Debt
DebtJune 30, 2021Interest 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 %$100,852 January 9, 2022
Term Loan B (5)
100,000 2.75 %2,749 March 1, 2023
Term Loan C (6)
50,000 2.74 %1,371 March 1, 2023
Series F Notes (7)
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 (8)
250,000 3.87 %10,725 March 1, 2027
Series E Notes (9)
100,000 4.18 %4,240 May 23, 2029
Series G Notes (10)
150,000 3.88 %5,865 July 30, 2030
3.375% Senior Unsecured Notes (11)
500,000 3.38 %17,109 February 1, 2031
Unsecured Notes Payable / Weighted Average (12)
$1,550,000 3.72 %$155,641 
Unsecured Line of Credit (13)
$ 1.19 %
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)    Term Loan B matures on March 1, 2023. Term Loan B accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.65%, subject to adjustments based on our consolidated leverage ratio.
(6)    Term Loan C matures on March 1, 2023. Term Loan C accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.64%, subject to adjustments based on our consolidated leverage ratio.
(7)    $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.
(8)    $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.
(9)    $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.
(10)    $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.
(11)    $500 million of 3.375% Senior Unsecured Notes due February 1, 2031. Net of debt issuance discount, the effective interest rate for the 3.375% Notes is approximately 3.502% through maturity.
(12)    The Unsecured Notes Payable total does not include debt issuance costs and discounts, net of $12.7 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 $0.6 million.
Second Quarter 2021 Supplemental InformationPage
18

MARKET CAPITALIZATION
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(Unaudited, amounts in thousands, except per share data)
Market dataJune 30, 2021
Common shares outstanding60,475 
Common units outstanding16,181 
Common shares and common units outstanding76,656 
Market price per common share$37.29 
Equity market capitalization$2,858,502 
Total debt$1,661,000 
Total market capitalization$4,519,502 
Less: Cash on hand$(368,266)
Total enterprise value$4,151,236 
Total unencumbered assets, gross$3,557,573 
Total debt/Total capitalization36.8 %
Total debt/Total enterprise value40.0 %
Net debt/Total enterprise value (1)
31.1 %
Total unencumbered assets, gross/Unsecured debt229.5 %
Quarter AnnualizedTrailing 12 Months
Total debt/Adjusted EBITDA (2)(3)
7.7 x8.6 x
Net debt/Adjusted EBITDA (1)(2)(3)
6.0 x6.7 x
Interest coverage ratio (4)
3.7 x3.5 x
Fixed charge coverage ratio (4)
3.7 x3.5 x
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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:3.73%
Weighted Average Term to Maturity:5.9 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 June 30, 2021, 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.



Second Quarter 2021 Supplemental InformationPage
19

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$36,766$175,000
One Beach StreetSan Francisco, CAFebruary 2021August 2022TBD102,00015.4%2023$3,596$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 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
385,000N/ADevelopment of build-to-suit office 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 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.
Second Quarter 2021 Supplemental InformationPage
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PORTFOLIO DATA




Second Quarter 2021 Supplemental InformationPage
21

PROPERTY REPORT
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As of June 30, 2021Office 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 96.8%$40,680,250 $58.03
Torrey Reserve CampusSan Diego, CA1996-2000/2014-201614 521,678 78.4%20,693,260 50.60
Torrey PointSan Diego, CA2017 92,195 94.65,172,747 59.31
Solana CrossingSolana Beach, CA1982/2005212,614 83.27,804,644 44.12
The Landmark at One Market (7)
San Francisco, CA1917/2000422,426 100.038,435,965 90.99
One Beach StreetSan Francisco, CA1924/1972/1987/1992100,270 15.4979,002 63.40
First & MainPortland, OR2010 360,314 93.010,824,485 32.30
Lloyd PortfolioPortland, OR1940-2015515,929 98.816,435,686 32.24
City Center BellevueBellevue, WA1987497,666 91.923,402,361 51.17
Subtotal/Weighted Average Office Portfolio (8)
29 3,447,278 90.3%$164,428,400 $52.82
Retail Properties
Carmel Country PlazaSan Diego, CA199178,098 85.0%$3,649,437 $54.98Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza (9)
San Diego, CA1994/201415 528,416 94.113,214,364 26.58At Home StoresDick's Sporting Goods
South Bay Marketplace (9)
San Diego, CA1997132,877 100.01,916,310 14.42Ross Dress for Less, Grocery Outlet
Gateway MarketplaceSan Diego, CA1997/2016127,861 100.02,489,023 19.47Hobby LobbySmart & Final, Aldi
Lomas Santa Fe PlazaSolana Beach, CA1972/1997208,030 97.56,030,225 29.73Vons, Home Goods
Solana Beach Towne CentreSolana Beach, CA1973/2000/200412 246,730 94.06,257,360 26.98Dixieline Probuild, Marshalls
Del Monte Center (9)
Monterey, CA1967/1984/200616 673,155 81.79,168,137 16.67Macy'sCentury Theatres, Whole Foods Market
Geary MarketplaceWalnut Creek, CA201235,159 100.01,275,699 36.28Sprouts Farmer Market, Habit Burger Grill
The Shops at KalakauaHonolulu, HI1971/200611,671 77.7672,886 74.20Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele CenterWaipahu, HI1993/2008418,047 100.011,573,803 27.69Lowe's, SafewayUFC Gym, Old Navy
Alamo Quarry Market (9)
San Antonio, TX1997/199916 588,148 87.612,872,044 24.98Regal CinemasWhole Foods Market, Nordstrom Rack
Hassalo on EighthPortland, OR201544,236 71.0945,225 30.10Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio (8)
107 3,092,428 91.1%$70,064,513 $24.87
Total/Weighted Average Office and Retail Portfolio (8)
136 6,539,706 90.7%$234,492,913 $39.53

Second Quarter 2021 Supplemental InformationPage
22

PROPERTY REPORT (CONTINUED)
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As of June 30, 2021
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 92.5%$13,282,140 $2,184 
Imperial Beach GardensImperial Beach, CA1959/200826 160 95.03,995,520 $2,191 
Mariner's PointImperial Beach, CA198688 98.91,948,644 $1,866 
Santa Fe Park RV Resort (10)
San Diego, CA1971/2007-2008126 84.91,938,312 $1,510 
Pacific Ridge ApartmentsSan Diego, CA2013533 71.513,299,504 $2,908 
Hassalo on Eighth - Velomor Portland, OR2015177 93.22,798,640 $1,414 
Hassalo on Eighth - Aster Tower Portland, OR2015337 95.65,653,464 $1,462 
Hassalo on Eighth - Elwood Portland, OR2015143 93.72,176,164 $1,353 
Total/Weighted Average Multifamily Portfolio 121 2,112 87.8%$45,092,388 $2,026 
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 %$7,395,322 $85.73 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, HI2008/2014/2020369 67.2 %$274.21 $184.35 
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 June 30, 2021, including leases which may not have commenced as of June 30, 2021. Percentage leased for our multifamily properties includes total units rented as of June 30, 2021.
(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 June 30, 2021 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 $30,324,726 to our estimate of annual triple net operating expenses of $10,355,523 for an estimated annualized base rent on a modified gross lease basis of $40,680,249 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 June 30, 2021. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of June 30, 2021. 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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23

PROPERTY REPORT (CONTINUED)
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(8)    Lease data for signed but not commenced leases as of June 30, 2021 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 Portfolio14,245 $634,489 $44.54 $52.99 
Retail Portfolio60,074 $1,302,056 $21.67 $24.97 
Total Retail and Office Portfolio74,319 $1,936,545 $26.06 $39.60 
    
(a)    Office portfolio leases signed but not commenced of 7,536 and 6,709 square feet are expected to commence during the third and fourth quarters of 2021, respectively. Retail portfolio leases signed but not commenced of 5,720, 7,500, and 46,854 square feet are expected to commence during the fourth quarter of 2021 and first and second quarters of 2022, 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 June 30, 2021 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 June 30, 2021 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 June 30, 2021, by square footage under lease as of June 30, 2021.
(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 $801,962 
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 June 30, 2021, 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 June 30, 2021, 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 June 30, 2021 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 June 30, 2021 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.
Second Quarter 2021 Supplemental InformationPage
24

OFFICE LEASING SUMMARY
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As of June 30, 2021
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
2nd Quarter 202113 100%47,380 $47.16$43.16$189,381 9.3 %14.7 %3.6$336,658 $7.11
1st Quarter 202114 100%65,047 $42.16$43.16$(65,120)(2.3)%1.3 %4.2$490,096 $7.53
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
Total 12 months43 100%189,528 $45.02$43.26$333,458 4.1 %7.6 %3.7$1,427,024 $7.53
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
2nd Quarter 202138%14,284 $45.40$41.88$50,347 8.4 %11.7 %4.6$335,246 $23.47
1st Quarter 202114%5,333 $50.78$46.51$22,800 9.2 %20.9 %5.2$328,575 $61.61
4th Quarter 2020— —%— $0.00$0.00$— — %— %$— $0.00
3rd Quarter 2020— —%— $0.00$0.00$— — %— %$— $0.00
Total 12 months16%19,617 $46.86$43.14$73,147 8.6 %14.6 %4.8$663,821 $33.84
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
2nd Quarter 202162%33,096 $47.92$43.72$139,034 9.6 %15.8 %3.1$1,412 $0.04
1st Quarter 202112 86%59,714 $41.39$42.86$(87,920)(3.4)%(0.5)%4.1$161,521 $2.70
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
Total 12 months36 84%169,911 $44.80$43.27$260,311 3.5 %6.9 %3.6$763,203 $4.49
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
2nd Quarter 202114 47,684 $47.223.6$359,458 $7.54
1st Quarter 202114 65,047 $42.164.2$490,096 $7.53
4th Quarter 202023,082 $46.652.5$36,306 $1.57
3rd Quarter 202010 59,196 $46.284.1$1,004,770 $16.97
Total 12 months46 195,009 $45.183.8$1,890,630 $9.69
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.
Second Quarter 2021 Supplemental InformationPage
25

RETAIL LEASING SUMMARY
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
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
2nd Quarter 202126 100%109,875 $47.42$59.48$(1,325,297)(20.3)%(15.7)%5.9$2,097,825 $19.09
1st Quarter 202120 100%46,243 $53.23$57.74$(208,641)(7.8)%(5.0)%4.3$323,509 $7.00
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
Total 12 months89 100%374,328 $38.53$44.63$(2,282,930)(13.7)%(9.0)%3.7$3,762,664 $10.05
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
2nd Quarter 202123%50,869 $42.00$67.28$(1,286,156)(37.6)%(24.6)%9.6$2,050,825 $40.32
1st Quarter 2021— —%— $0.00$0.00$— — %— %$— $0.00
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
Total 12 months8%53,725 $41.38$66.03$(1,324,531)(37.3)%(24.4)%9.6$2,177,225 $40.53
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
2nd Quarter 202120 77%59,006 $52.09$52.75$(39,141)(1.3)%4.8 %2.7$47,000 $0.80
1st Quarter 202120 100%46,243 $53.23$57.74$(208,641)(7.8)%(5.0)%4.3$323,509 $7.00
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
Total 12 months82 92%320,603 $38.05$41.04$(958,399)(7.3)%(4.0)%2.7$1,585,439 $4.94
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
2nd Quarter 202130 123,835 $45.586.2$3,007,025 $24.28
1st Quarter 202125 59,274 $49.755.4$862,436 $14.55
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
Total 12 months101 405,516 $38.194.1$5,522,171 $13.62
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.
Second Quarter 2021 Supplemental InformationPage
26

MULTIFAMILY LEASING SUMMARY
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
Lease Summary - Loma Palisades
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
2nd Quarter 202150792.5%$13,282,140$2,184
1st Quarter 202153998.4%$14,944,104$2,309
4th Quarter 202052295.3%$14,420,472$2,301
3rd Quarter 202051794.3%$14,340,048$2,312
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
2nd Quarter 202115295.0%$3,995,520$2,191
1st Quarter 202115395.6%$3,794,388$2,067
4th Quarter 202015194.4%$3,920,016$2,163
3rd Quarter 202015798.1%$3,810,600$2,023
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
2nd Quarter 20218798.9%$1,948,644$1,866
1st Quarter 20218090.9%$1,923,168$2,004
4th Quarter 20208596.6%$1,860,348$1,824
3rd Quarter 20208293.2%$1,833,660$1,863
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
2nd Quarter 202110784.9%$1,938,312$1,510
1st Quarter 202110583.3%$1,299,000$1,031
4th Quarter 20209877.8%$1,250,460$1,063
3rd Quarter 20209474.6%$1,669,836$1,480
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
2nd Quarter 202138171.5%$13,299,504$2,908
1st Quarter 202150694.9%$18,089,184$2,980
4th Quarter 202049693.1%$18,171,132$3,052
3rd Quarter 202050795.1%$18,164,184$2,986






Second Quarter 2021 Supplemental InformationPage
27

MULTIFAMILY LEASING SUMMARY (CONTINUED)
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg

As of June 30, 2021
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
2nd Quarter 202116593.2%$2,798,640$1,414
1st Quarter 202115386.4%$2,840,460$1,548
4th Quarter 202012168.4%$2,467,308$1,698
3rd Quarter 202013475.7%$2,668,716$1,660
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
2nd Quarter 202132295.6%$5,653,464$1,462
1st Quarter 202129587.5%$5,310,636$1,501
4th Quarter 202025375.1%$5,109,600$1,682
3rd Quarter 202026277.7%$5,341,092$1,700
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
2nd Quarter 202113493.7%$2,176,164$1,353
1st Quarter 202110976.2%$1,937,784$1,482
4th Quarter 20209465.7%$1,702,044$1,510
3rd Quarter 20209566.4%$1,923,936$1,689
Total Multifamily Lease Summary
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
2nd Quarter 20211,85587.8%$45,092,388$2,026
1st Quarter 20211,94091.9%$50,138,724$2,153
4th Quarter 20201,82086.2%$48,901,380$2,238
3rd Quarter 20201,84887.5%$49,752,072$2,244

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.

Second Quarter 2021 Supplemental InformationPage
28

MIXED-USE LEASING SUMMARY
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
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
2nd Quarter 202186,21689.2%$7,395,322$86
1st Quarter 202185,29288.2%$8,915,314$105
4th Quarter 202086,30089.2%$9,411,407$109
3rd Quarter 202084,93787.8%$10,534,918$124
Lease Summary - Hotel Portion
Number of Leased Units
Average Occupancy (4)
Average Daily Rate (4)
Annualized Revenue per Available Room (4)
Quarter
2nd Quarter 202124867.2%$274$184
1st Quarter 202117547.5%$208$99
4th Quarter 202017346.8%$205$96
3rd Quarter 202024466.0%$209$138
Notes:
(1)    Percentage leased for mixed-use property includes square footage under leases as of June 30, 2021, including leases which may not have commenced as of June 30, 2021.
(2)    Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2021 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 June 30, 2021.
(4)    Average occupancy represents the percentage of available units that were sold during the three months ended June 30, 2021, 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.
Second Quarter 2021 Supplemental InformationPage
29

LEASE EXPIRATIONS
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
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 Month24,860 0.7 %0.4 %$3.7323,571 0.8 %0.4 %$44.105,859 6.1 %0.1 %$26.6754,290 0.8 %$23.73
202157,861 1.7 0.9 $50.2749,816 1.6 0.8 $34.058,776 9.1 0.1 $99.93116,453 1.8 $47.07
2022272,415 7.9 4.1 $49.63384,997 12.4 5.8 $30.604,881 5.0 0.1 $132.59662,293 10.0 $39.18
2023348,405 10.1 5.2 $54.42235,506 7.6 3.5 $22.516,460 6.7 0.1 $21.26590,371 8.9 $41.33
2024214,611 6.2 3.2 $48.13461,604 14.9 7.0 $27.819,895 10.2 0.1 $89.83686,110 10.3 $35.06
2025312,703 9.1 4.7 $38.73222,960 7.2 3.4 $30.3818,099 18.7 0.3 $96.84553,762 8.3 $37.27
2026285,215 

8.3 4.3 $42.83243,026 7.9 3.7 $30.473,029 3.1 — $65.80531,270 8.0 $37.31
2027258,548 7.5 3.9 $48.12133,090 4.3 2.0 $28.572,706 2.8 — 111.07394,344 5.9 $41.95
2028142,954 

4.1 2.2 $49.40560,587 18.1 8.4 $15.168,820 9.1 0.1 92.92712,361 10.7 $22.99
2029775,216 22.5 11.7 $62.75181,689 5.9 2.7 $19.411,055 1.1 — $190.20957,960 14.4 $54.67
2030176,044 5.1 2.7 $33.1143,630 1.4 0.7 $23.94— — — 219,674 3.3 $31.29
Thereafter240,641 7.0 3.6 $41.38257,834 8.3 3.9 $24.6715,596 16.1 0.2 90.79514,071 7.7 $34.50
Signed Leases Not Commenced4,752 0.1 0.1 19,480 0.6 0.3 1,040 1.1 — 25,272 0.4 
Available333,053 9.7 5.0 274,638 8.9 4.1 10,491 10.8 0.2 618,182 9.3 
Total (2)
3,447,278 100.0 %51.9 %$44.693,092,428 100.0 %46.6 %$22.6696,707 100.0 %1.5 %$76.476,636,413 100.0 %$34.89
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 Month24,860 0.7 %0.4 %$3.7323,571 0.8 %0.4 %$44.105,859 6.1 %0.1 %$26.6754,290 0.8 %$23.73
202157,861 1.7 0.9 $50.2746,776 1.5 0.7 $32.528,776 9.1 0.1 $99.93113,413 1.7 $46.79
2022143,846 4.2 2.2 $45.57116,803 3.8 1.8 $38.504,881 5.0 0.1 $132.59265,530 4.0 $44.06
2023156,625 4.5 2.4 $45.25111,836 3.6 1.7 $24.116,460 6.7 0.1 $21.26274,921 4.1 $36.09
202462,380 1.8 0.9 $48.02212,827 6.9 3.2 $30.654,493 4.6 0.1 $197.82279,700 4.2 $37.21
2025106,361 3.1 1.6 $45.6568,580 2.2 1.0 $32.806,541 6.8 0.1 $191.98181,482 2.7 $46.07
2026140,299 4.1 2.1 $45.7760,309 2.0 0.9 $35.703,029 3.1 — $65.80203,637 3.1 $43.09
2027147,654 4.3 2.2 $41.26162,196 5.2 2.4 $27.642,706 2.8 — 111.07312,556 4.7 $34.80
202891,100 2.6 1.4 $40.57134,774 4.4 2.0 $22.291,906 2.0 — 209.64227,780 3.4 $31.17
2029157,750 4.6 2.4 $52.26120,897 3.9 1.8 $32.016,457 6.7 0.1 $31.08285,104 4.3 $43.19
2030222,491 6.5 3.4 $36.0265,058 2.1 1.0 $34.8111,558 12.0 0.2 43.00299,107 4.5 $36.03
Thereafter1,798,246 52.2 27.1 $54.001,674,683 54.2 25.2 $21.3622,510 23.3 0.3 $81.563,495,439 52.7 $38.54
Signed Leases Not Commenced4,752 0.1 0.1 19,480 0.6 0.3 1,040 1.1 — 25,272 0.4 
Available333,053 9.7 5.0 274,638 8.9 4.1 10,491 10.8 0.2 618,182 9.3 
Total (2)
3,447,278 100.0 %51.9 %$44.693,092,428 100.0 %46.6 %$22.6696,707 100.0 %1.5 %$76.476,636,413 100.0 %$34.89

Second Quarter 2021 Supplemental InformationPage
30

LEASE EXPIRATIONS (CONTINUED)
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
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 June 30, 2021 for the leases expiring during the applicable period by (ii) 12 months.
(2)    Individual items may not add up to total due to rounding.


Second Quarter 2021 Supplemental InformationPage
31

PORTFOLIO LEASED STATISTICS
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
At June 30, 2021At June 30, 2020
TypeSize
Leased (1)
Leased %Size
Leased (1)
Leased %
Overall Portfolio(2) Statistics
Office Properties (square feet)
3,447,278 3,114,225 90.3 %3,443,879 3,249,403 94.4 %
Retail Properties (square feet) 3,092,428 2,817,790 91.1 %3,093,650 2,928,232 94.7 %
Multifamily Properties (units)2,112 1,855 87.8 %2,112 1,797 85.1 %
Mixed-Use Properties (square feet)96,707 86,216 89.2 %96,707 92,531 95.7 %
Mixed-Use Properties (units)369 212 
(3)
57.4 %369 171 
(3)
46.4 %
Same-Store(2) Statistics
Office Properties (square feet)(4)
3,347,008 3,098,778 92.6 %3,346,265 3,227,106 96.4 %
Retail Properties (square feet)3,092,428 2,817,790 91.1 %3,093,650 2,928,232 94.7 %
Multifamily Properties (units)2,112 1,855 87.8 %2,112 1,797 85.1 %

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 six months ended June 30, 2021 and 2020.
(4)    The same-store portfolio excludes One Beach Street due to significant redevelopment activity.



Second Quarter 2021 Supplemental InformationPage
32

TOP TENANTS - OFFICE
https://cdn.kscope.io/35eb1125d14b4804bf6bec82625a55ed-image6a.jpg
As of June 30, 2021
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 %$24,904,188 15.2 %10.3 %
LPL Holdings, Inc.La Jolla Commons4/30/2029421,001 12.2 6.3 18,724,794 11.4 7.7 
Autodesk, Inc. (1)The Landmark at One Market12/31/2022
12/31/2023
138,615 4.0 2.1 12,615,795 7.7 5.2 
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 5,656,197 3.4 2.3 
Illumina, Inc.La Jolla Commons10/31/202773,176 2.1 1.1 4,302,749 2.6 1.8 
Clearesult Operating, LLCFirst & Main4/30/2025101,848 3.0 1.5 3,283,536 2.0 1.4 
State of Oregon: Department of Environmental QualityLloyd Portfolio10/31/203187,787 2.5 1.3 2,766,541 1.7 1.1 
Genentech, Inc.Lloyd Portfolio10/31/202666,852 1.9 1.0 2,269,545 1.4 0.9 
10 Internal Revenue ServiceFirst & Main8/31/203063,648 1.8 1.0 2,200,553 1.3 0.9 
Top 10 Office Tenants Total1,440,327 41.6 %21.7 %$83,295,999 50.7 %34.3 %

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 June 30, 2021
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 5TH (5)Carmel Mountain Plaza10/31/202140,594 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.
(5)    Total Wine has leased the entirety of the Saks Fifth Avenue OFF 5TH premises and will take possession subsequent to lease expiration, subject to certain lease conditions.

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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 and six months ended June 30, 2021 and 2020 is as follows:
    
Three Months Ended Six Months Ended
June 30,June 30,
2021202020212020
Net income$11,487 $9,826 $13,220 $25,310 
Depreciation and amortization 27,646 26,493 55,147 53,955 
Interest expense 14,862 13,331 28,867 26,803 
Interest income(100)(71)(174)(383)
Income tax expense174 (91)301 115 
EBITDA$54,069 $49,488 $97,361 $105,800 

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 an early extinguishment of debt adjustment and 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 Six Months Ended
June 30,June 30,
2021202020212020
EBITDA$54,069 $49,488 $97,361 $105,800 
Pro forma adjustments— — — — 
Early extinguishment of debt4,271 — 
Adjusted EBITDA$54,069 $49,488 $101,632 $105,800 

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre): EBITDAre is a supplemental non-GAAP measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (NAREIT) defines EBITDAre as follows: net income or loss, computed in accordance with GAAP plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate including gain or loss on change of control, impairments of real estate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates, if any. EBITDAre is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDAre for the three and six months ended June 30, 2021 and 2020 is as follows:
Three Months Ended Six Months Ended
June 30,June 30,
2021202020212020
Net income$11,487 $9,826 $13,220 $25,310 
Depreciation and amortization 27,646 26,493 55,147 53,955 
Interest expense 14,862 13,331 28,867 26,803 
Interest income(100)(71)(174)(383)
Income tax expense174 (91)301 115 
EBITDAre
$54,069 $49,488 $97,361 105,800 

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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 Six Months Ended
June 30,June 30,
Reconciliation of NOI to net income2021202020212020
Total NOI$60,993 $56,167 $115,379 $119,297 
General and administrative(6,924)(6,679)(13,747)(13,499)
Depreciation and amortization(27,646)(26,493)(55,147)(53,955)
Operating Income$26,423 $22,995 $46,485 $51,843 
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt(4,271)— 
Other income (expense), net(74)162 (127)270 
Net income$11,487 $9,826 $13,220 $25,310 
Net income attributable to restricted shares(135)(69)(272)(173)
Net income attributable to unitholders in the Operating Partnership(2,411)(2,101)(2,750)(5,413)
Net income attributable to American Assets Trust, Inc. stockholders$8,941 $7,656 $10,198 $19,724 

Overall Portfolio: Includes all operating properties owned by us as of June 30, 2021.


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GLOSSARY OF TERMS (CONTINUED)
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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 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 Six Months Ended
June 30,June 30,
Reconciliation of Total Cash NOI to Net Income2021202020212020
Total Cash NOI$58,729 $42,448 $108,512 $101,937 
Non-cash revenue and other operating expenses (1)
2,264 13,719 6,867 17,360 
General and administrative(6,924)(6,679)(13,747)(13,499)
Depreciation and amortization(27,646)(26,493)(55,147)(53,955)
Operating income$26,423 $22,995 $46,485 $51,843 
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt(4,271)— 
Other income (expense), net(74)162 (127)270 
Net income$11,487 $9,826 $13,220 $25,310 
(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, 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 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)
Six Months Ended (1)
June 30,June 30,
Reconciliation of Same-Store Cash NOI Comparison with Redevelopment to Operating Income2021202020212020
Same-Store Cash NOI$53,881 $43,709 $102,199 $96,072 
Redevelopment Cash NOI (2)
93 (134)104 (299)
Same-Store Cash NOI with Redevelopment53,974 43,575 102,303 95,773 
Tenant improvement reimbursements220 202 291 2,998 
Total Same-Store Cash NOI with Redevelopment$54,194 $43,777 $102,594 $98,771 
Non-Same Store Cash NOI4,535 (1,329)5,918 3,166 
Total Cash NOI$58,729 $42,448 $108,512 $101,937 
Non-cash revenue and other operating expenses (3)
2,264 13,719 6,867 17,360 
General and administrative(6,924)(6,679)(13,747)(13,499)
Depreciation and amortization(27,646)(26,493)(55,147)(53,955)
Operating income$26,423 $22,995 $46,485 $51,843 
Interest expense(14,862)(13,331)(28,867)(26,803)
Early extinguishment of debt(4,271)— 
Other income (expense), net(74)162 (127)270 
Net income$11,487 $9,826 $13,220 $25,310 
(1)    Same-store excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk - Retail, due to significant spalling repair activity; and (iii) land held for development.
(2)    Redevelopment property refers to One Beach Street, and Lloyd Portfolio - Land.
(3)    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
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GLOSSARY OF TERMS (CONTINUED)
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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 Six Months Ended
June 30, 2021 to 2020June 30, 2021 to 2020
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 PortfolioXXXX
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 Portfolio - LandXXXX

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GLOSSARY OF TERMS (CONTINUED)
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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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