SEC Filing - American Assets Trust, Inc.

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aat-20220726

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 26, 2022

_________________________

https://cdn.kscope.io/398dd72d355a1d44225612540f23b598-aat-20220726_g1.jpg

American Assets Trust, Inc.

(Exact name of registrant as specified in its charter)

_________________________


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

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 Registrant	Title of each class	Trading Symbol	Name of each exchange on which registered
American Assets Trust, Inc.	Common Stock, par value $0.01 per share	AAT	New York Stock Exchange

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On July 26, 2022, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending June 30, 2022. Also on July 26, 2022, 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, 2022. Copies of the press release and supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively.

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

Item 7.01 Regulation FD Disclosure.

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the quarter ending June 30, 2022 and made available on its website certain supplement information relating thereto.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

The following exhibits are filed herewith:


Exhibit Number						Exhibit Description
99.1**						Press release issued by American Assets Trust, Inc. on July 26, 2022.
99.2**						American Assets Trust, Inc. Supplemental Information for the quarter ended June 3 0 , 2022.
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

_____________________

** Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	American Assets Trust, Inc.
	By:	/s/ Robert F. Barton
	Robert F. Barton Executive Vice President, CFO
July 26, 2022

Document

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American Assets Trust, Inc. Reports Second Quarter 2022 Financial Results

Net income available to common stockholders of $10.6 million and $21.1 million for the three and six months ended June 30, 2022, respectively, or $0.18 and $0.35 per diluted share, respectively.

Funds From Operations per diluted share increased 14% and 30% year-over-year for the three and six months ended June 30, 2022, respectively, or $0.58 and $1.16 per diluted share, respectively.

Increased 2022 FFO per diluted share guidance to a range of $2.21 to $2.27 with a midpoint of $2.24.

SAN DIEGO, California - 7/26/2022 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its second quarter ended June 30, 2022.

Second Quarter Highlights

•Net income available to common stockholders of $10.6 million and $21.1 million for the three and six months ended June 30, 2022, respectively, or $0.18 and $0.35 per diluted share, respectively.

•Funds From Operations ("FFO") increased 14% and 30% year-over year to $0.58 and $1.16 per diluted share for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

•Same-store cash Net Operating Income ("NOI") increased 3.6% and 10.4% year-over-year for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

•Increased 2022 FFO per diluted share guidance to a range of $2.21 to $2.27 with a midpoint of $2.24, an approximately 3% increase over the prior 2022 guidance midpoint of $2.17.

•Leased approximately 128,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 21% and 21%, respectively, during the three months ended June 30, 2022.

•Leased approximately 67,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 20% and 6%, respectively, during the three months ended June 30, 2022.

Financial Results

Net income attributable to common stockholders was $10.6 million, or $0.18 per basic and diluted share for the three months ended June 30, 2022 compared to $8.9 million, or $0.15 per basic and diluted share for the three months ended June 30, 2021. For the six months ended June 30, 2022, net income attributed to common stockholders was $21.1 million, or $0.35 per basic and diluted share compared to $10.2 million, or 0.17 per basic and diluted share for the six months ended June 30, 2021. The year-over-year increase in net income attributable to common stockholders is primarily due to (i) a $4.1 million net increase in income at our Waikiki Beach Walk - Embassy Suites due to increased tourism into Hawaii, (ii) a $4.3 million debt extinguishment charge related to the repayment of the company's Senior Guaranteed Notes, Series A on January 26, 2021, not incurred in 2022 and (iii) a $2.4 million net increase in retail revenue, due to COVID-related lease modifications that changed some tenants to alternate rent or cash basis of revenue recognition (with some of these tenants later reverting back to contractual basic monthly rent)

During the second quarter of 2022, the company generated FFO for common stock and common units of $44.5 million, or $0.58 per diluted share and unit, compared to $39.0 million, or $0.51 per diluted share and unit, for the second quarter of 2021. The increase in FFO from the corresponding period in 2021 was primarily due to an increase in revenue at our Waikiki Beach Walk - Embassy SuitesTM, an increase in revenue in our retail segment

and an increase in revenue and average monthly base rent for our multifamily segment. Additionally, there was an increase in FFO in 2022 from (i) our recent acquisitions of Eastgate Office Park and Corporate Campus East III in July 2021 and September 2021, respectively, and Bel-Spring 520 in March 2022 and (ii) related to the above described 2021 debt extinguishment charge.

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, 2022	March 31, 2022	June 30, 2021
Total Portfolio
Office	91.0%	91.5%	90.3%
Retail	92.5%	92.2%	91.1%
Multifamily	92.0%	94.8%	87.8%
Mixed-Use:
Retail	94.9%	94.3%	89.2%
Hotel	75.8%	72.8%	57.4%

Same-Store Portfolio
Office (1)	95.8%	95.6%	92.6%
Retail	92.5%	92.2%	91.1%
Multifamily	92.0%	94.8%	87.8%
Mixed-Use:
Retail	94.9%	94.3%	89.2%
Hotel	75.8%	72.8%	57.4%

(1) Same-store office leased percentages excludes (i) One Beach Street due to significant redevelopment activity; (ii) Eastgate Office Park which was acquired on July 7, 2021; (iii) Corporate Campus East III which was acquired on September 10, 2021; (iv) Bel-Spring 520 which was acquired on March 8, 2022 and (v) land held for development.

During the second quarter of 2022, the company signed 36 leases for approximately 225,900 square feet of office and retail space, as well as 451 multifamily apartment leases. Renewals accounted for 73% of the comparable office leases, 88% of the comparable retail leases, and 60% of the residential leases.

Office and Retail

On a comparable space basis (i.e. leases for which there was a former tenant) during the second quarter of 2022 and trailing four quarters ended June 30, 2022, our retail and office leasing spreads are shown below:


		Number of Leases Signed	Comparable Leased Sq. Ft.	Average Cash Basis % Change Over Prior Rent		Average Cash Contractual Rent Per Sq. Ft.	Prior Average Cash Contractual Rent Per Sq. Ft.	Straight-Line Basis % Change Over Prior Rent
Office	Q2 2022	11	128,000		21.1%	$60.65	$50.07		20.7%
	Last 4 Quarters	36	309,000		16.6%	$63.16	$54.14		20.3%

Retail	Q2 2022	16	67,000		5.7%	$29.01	$27.43		20.2%
	Last 4 Quarters	71	322,000		(2.7)%	$34.54	$35.49		11.0%

Multifamily

The average monthly base rent per leased unit for our multifamily properties for the second quarter of 2022 was $2,297 compared to an average monthly base rent per leased unit of $2,187 for the second quarter of 2021, which is an increase of approximately 5%.

Same-Store Cash Net Operating Income

For the three and six months ended June 30, 2022, same-store cash NOI increased 3.6% and 10.4%, respectively, compared to the three and six months ended June 30, 2021. The same-store cash NOI by segment was as follows (in thousands):


	Three Months Ended (1)						Six Months Ended (1)
	June 30,						June 30,
	2022		2021		Change		2022		2021		Change






Cash Basis:
Office	$	30,155	$	30,088	0.2	%	$	59,643	$	56,377	5.8	%
Retail	16,827		17,142		(1.8)		33,521		33,431		0.3
Multifamily	7,975		6,651		19.9		15,996		13,759		16.3
Mixed-Use	5,600		4,546		23.2		10,202		4,547		—
Same-store Cash NOI	$	60,557	$	58,427	3.6	%	$	119,362	$	108,114	10.4	%

(1) Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Eastgate Office Park which was acquired on July 7, 2021; (iii) Corporate Campus East III which was acquired on September 10, 2021; (iv) Bel-Spring 520 which was acquired on March 8, 2022 and (v) land held for development.

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

Balance Sheet and Liquidity

At June 30, 2022, the company had gross real estate assets of $3.6 billion and liquidity of $460.8 million, comprised of cash and cash equivalents of $60.8 million and $400.0 million of availability on its line of credit. At June 30, 2022, the company has only 1 out of 31 assets encumbered by a mortgage.

Dividends

The company declared dividends on its shares of common stock of $0.32 per share for the second quarter of 2022. The dividends were paid on June 23, 2022.

In addition, the company has declared a dividend on its common stock of $0.32 per share for the third quarter of 2022. The dividend will be paid in cash on September 22, 2022 to stockholders of record on September 8, 2022.

Guidance

The company increased its 2022 FFO per diluted share guidance to a range of $2.21 to $2.27 per share, an

increase of approximately 3% at midpoint from the prior 2022 FFO per diluted share guidance range of $2.13 to

$2.21 per share.

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

Conference Call

The company will hold a conference call to discuss the results for the second quarter of 2022 on Wednesday, July 27, 2022 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-866-374-5140 and use the pass code 15612462#. A telephonic replay of the conference call will be available beginning at 2:00 p.m. PT on Wednesday, July 27, 2022 through Wednesday, August 3, 2022. To access the replay, dial 1-866-374-5140 and use the pass code 15612462#. 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 2022 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.

Financial Information

American Assets Trust, Inc.

Consolidated Balance Sheets

(In Thousands, Except Share Data)


	June 30, 2022		December 31, 2021

Assets	(unaudited)
Real estate, at cost
Operating real estate	$	3,454,499	$	3,389,726
Construction in progress		176,582		139,098
Held for development		547		547
		3,631,628		3,529,371
Accumulated depreciation		(894,202)		(847,390)
Real estate, net		2,737,426		2,681,981
Cash and cash equivalents		60,750		139,524

Accounts receivable, net		7,218		7,445
Deferred rent receivables, net		87,579		82,724
Other assets, net		114,217		106,253

Total assets	$	3,007,190	$	3,017,927
Liabilities and equity
Liabilities:
Secured notes payable, net	$	110,986	$	110,965
Unsecured notes payable, net		1,538,519		1,538,238
Unsecured line of credit, net		—		—
Accounts payable and accrued expenses		66,334		64,531
Security deposits payable		8,519		7,855
Other liabilities and deferred credits, net		82,864		86,215

Total liabilities		1,807,222		1,807,804
Commitments and contingencies
Equity:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,528,115 and 60,525,580 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		605		605
Additional paid-in capital		1,456,747		1,453,272
Accumulated dividends in excess of net income		(235,107)		(217,785)
Accumulated other comprehensive income		9,457		2,872
Total American Assets Trust, Inc. stockholders' equity		1,231,702		1,238,964
Noncontrolling interests		(31,734)		(28,841)
Total equity		1,199,968		1,210,123
Total liabilities and equity	$	3,007,190	$	3,017,927

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,
	2022		2021		2022		2021
Revenue:
Rental income	$	99,016	$	87,639	$	196,002	$	168,769
Other property income	5,139		4,170		9,623		7,026
Total revenue	104,155		91,809		205,625		175,795
Expenses:
Rental expenses	25,853		20,204		49,998		38,450
Real estate taxes	11,287		10,612		22,716		21,966
General and administrative	7,612		6,924		14,754		13,747
Depreciation and amortization	31,087		27,646		61,499		55,147
Total operating expenses	75,839		65,386		148,967		129,310
Operating income	28,316		26,423		56,658		46,485
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)

Loss on early extinguishment of debt	—		—		—		(4,271)
Other (expense) income, net	(181)		(74)		(343)		(127)
Net income	13,588		11,487		27,102		13,220
Net income attributable to restricted shares	(154)		(135)		(309)		(272)
Net income attributable to unitholders in the Operating Partnership	(2,852)		(2,411)		(5,688)		(2,750)
Net income attributable to American Assets Trust, Inc. stockholders	$	10,582	$	8,941	$	21,105	$	10,198

Net income per share
Basic income attributable to common stockholders per share	$	0.18	$	0.15	$	0.35	$	0.17
Weighted average shares of common stock outstanding - basic	60,040,243		59,985,787		60,039,467		59,985,065

Diluted income attributable to common stockholders per share	$	0.18	$	0.15	$	0.35	$	0.17
Weighted average shares of common stock outstanding - diluted	76,221,780		76,167,324		76,221,004		76,166,602

Dividends declared per common share	$	0.32	$	0.28	$	0.64	$	0.56

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, 2022		June 30, 2022
Funds From Operations (FFO)
Net income	$	13,588	$	27,102
Depreciation and amortization of real estate assets		31,087		61,499

FFO, as defined by NAREIT	$	44,675	$	88,601
Less: Nonforfeitable dividends on restricted stock awards		(153)		(306)
FFO attributable to common stock and units	$	44,522	$	88,295
FFO per diluted share/unit	$	0.58	$	1.16
Weighted average number of common shares and units, diluted		76,222,271		76,221,747

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)				Six Months Ended (1)
	June 30,				June 30,
	2022		2021		2022		2021
Same-store cash NOI	60,557		$	58,427	$	119,362	$	108,114
Non-same-store cash NOI	2,951		82		5,424		107
Tenant improvement reimbursements (2)	2,612		220		2,770		291
Cash NOI	$	66,120	$	58,729	$	127,556	$	108,512
Non-cash revenue and other operating expenses (3)	895		2,264		5,355		6,867
General and administrative	(7,612)		(6,924)		(14,754)		(13,747)
Depreciation and amortization	(31,087)		(27,646)		(61,499)		(55,147)
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)

Loss on early extinguishment of debt	—		—		—		(4,271)
Other (expense) income, net	(181)		(74)		(343)		(127)
Net income	$	13,588	$	11,487	$	27,102	$	13,220

Number of properties included in same-store analysis	27		26		27		26

(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 (solely with respect to Q2 2020 through Q4 2021), 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.

Use of Non-GAAP Information

Funds from Operations

The company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.

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

Cash Net Operating Income

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

Cash NOI is a non-GAAP financial measure of performance. The company defines cash NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance), adjusted for non-cash revenue and operating expense items such as straight-line rent, net change in lease receivables (solely with respect to Q2 2020 through Q4 2021), amortization of lease intangibles, amortization of lease incentives and other adjustments. Cash NOI also excludes general and administrative expenses, depreciation and amortization, interest expense, other nonproperty income and losses, acquisition-related expense, gains and losses from property dispositions, extraordinary items, tenant improvements, and leasing commissions. Other REITs may use different methodologies for calculating cash NOI, and accordingly, the company's cash NOI may not be comparable to the cash NOIs of other REITs.

About American Assets Trust, Inc.

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("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, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.0 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 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. 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: the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; 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. While forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission. The company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Source: American Assets Trust, Inc.

Investor and Media Contact:

American Assets Trust

Robert F. Barton

Executive Vice President and Chief Financial Officer

858-350-2607

Document



			SECOND QUARTER 2022
			Supplemental Information

https://cdn.kscope.io/398dd72d355a1d44225612540f23b598-supplementcoverq42019v2a01a.jpg





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

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

with favorable supply/demand characteristics







	Office	Retail	Multifamily		Mixed-Use
Market	Square Feet	Square Feet	Units		Square Feet	Suites
San Diego	1,563,221	1,322,200	1,455	(1)	—	—

Bellevue	1,026,063	—	—		—	—

Portland	876,242	44,236	657		—	—

Monterey	—	673,155	—		—	—

San Antonio	—	588,148	—		—	—

San Francisco	522,696	35,159	—		—	—

Oahu		429,718	—		93,925	369

Total	3,988,222	3,092,616	2,112		93,925	369


		Square Feet		%	NOI % (2)
Note: Circled areas represent all markets in which American Assets Trust, Inc. currently owns and operates its real estate properties. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.	Office	4.0	million	56%	55%
	Retail	3.1	million	44%	25%
Data is as of June 30, 2022.	Totals	7.1	million
(1) Includes 122 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended June 30, 2022. Reconciliation of NOI to net income is included in the Glossary of Terms.


Second Quarter 2022 Supplemental Information			Page



INDEX


	SECOND QUARTER 2022 SUPPLEMENTAL INFORMATION
1.	FINANCIAL HIGHLIGHTS
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution	7
	Corporate Guidance	9
	Same-Store Net Operating Income (NOI)	10
	Same-Store Cash NOI Comparison excluding Redevelopment	12
	Same-Store Cash NOI Comparison with Redevelopment	13
	Cash NOI By Region	14
	Cash NOI Breakdown	15
	Property Revenue and Operating Expenses	16
	Segment Capital Expenditures	18
	Summary of Outstanding Debt	19
	Market Capitalization	20
	Summary of Development Opportunities	21
2.	PORTFOLIO DATA
	Property Report	23
	Office Leasing Summary	26
	Retail Leasing Summary	27
	Multifamily Leasing Summary	28
	Mixed-Use Leasing Summary	30
	Lease Expirations	31
	Portfolio Leased Statistics	33
	Top Tenants - Office	34
	Top Tenants - Retail	35
3.	APPENDIX
	Glossary of Terms	37

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: the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; 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.

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 2022 Supplemental Information			Page

FINANCIAL HIGHLIGHTS


Second Quarter 2022 Supplemental Information			Page



CONSOLIDATED BALANCE SHEETS


(Amounts in thousands, except shares and per share data)	June 30, 2022		December 31, 2021

ASSETS	(unaudited)
Real estate, at cost
Operating real estate	$	3,454,499	$	3,389,726
Construction in progress	176,582		139,098
Held for development	547		547
	3,631,628		3,529,371
Accumulated depreciation	(894,202)		(847,390)
Net real estate	2,737,426		2,681,981
Cash and cash equivalents	60,750		139,524


Accounts receivable, net	7,218		7,445
Deferred rent receivable, net	87,579		82,724
Other assets, net	114,217		106,253

TOTAL ASSETS	$	3,007,190	$	3,017,927
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net	$	110,986	$	110,965
Unsecured notes payable, net	1,538,519		1,538,238

Accounts payable and accrued expenses	66,334		64,531
Security deposits payable	8,519		7,855
Other liabilities and deferred credits, net	82,864		86,215

Total liabilities	1,807,222		1,807,804
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,528,115 and 60,525,580 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	605		605
Additional paid in capital	1,456,747		1,453,272
Accumulated dividends in excess of net income	(235,107)		(217,785)
Accumulated other comprehensive income	9,457		2,872
Total American Assets Trust, Inc. stockholders' equity	1,231,702		1,238,964
Noncontrolling interests	(31,734)		(28,841)
Total equity	1,199,968		1,210,123
TOTAL LIABILITIES AND EQUITY	$	3,007,190	$	3,017,927


Second Quarter 2022 Supplemental Information			Page



CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
REVENUE:
Rental income	$	99,016	$	87,639	$	196,002	$	168,769
Other property income	5,139		4,170		9,623		7,026
Total revenue	104,155		91,809		205,625		175,795
EXPENSES:
Rental expenses	25,853		20,204		49,998		38,450
Real estate taxes	11,287		10,612		22,716		21,966
General and administrative	7,612		6,924		14,754		13,747
Depreciation and amortization	31,087		27,646		61,499		55,147
Total operating expenses	75,839		65,386		148,967		129,310
OPERATING INCOME	28,316		26,423		56,658		46,485
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)
Loss on early extinguishment of debt	—		—		—		(4,271)

Other (expense) income, net	(181)		(74)		(343)		(127)
NET INCOME	13,588		11,487		27,102		13,220
Net income attributable to restricted shares	(154)		(135)		(309)		(272)
Net income attributable to unitholders in the Operating Partnership	(2,852)		(2,411)		(5,688)		(2,750)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS	$	10,582	$	8,941	$	21,105	$	10,198

EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share	$	0.18	$	0.15	$	0.35	$	0.17
Weighted average shares of common stock outstanding - basic	60,040,243		59,985,787		60,039,467		59,985,065
Diluted income from continuing operations attributable to common stockholders per share	$	0.18	$	0.15	$	0.35	$	0.17
Weighted average shares of common stock outstanding - diluted	76,221,780		76,167,324		76,221,004		76,166,602


Second Quarter 2022 Supplemental Information			Page



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


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Funds from Operations (FFO) (1)
Net income	$	13,588	$	11,487	$	27,102	$	13,220
Depreciation and amortization of real estate assets	31,087		27,646		61,499		55,147

FFO, as defined by NAREIT	44,675		39,133		88,601		68,367

Less: Nonforfeitable dividends on restricted stock awards	(153)		(134)		(306)		(269)
FFO attributable to common stock and common units	$	44,522	$	38,999	$	88,295	$	68,098

FFO per diluted share/unit	$	0.58	$	0.51	$	1.16	$	0.89

Weighted average number of common shares and common units, diluted (2)	76,222,271		76,167,246		76,221,747		76,166,158

Funds Available for Distribution (FAD) (1)	$	34,263	$	26,453	$	63,385	$	44,482















Dividends
Dividends declared and paid	$	24,547	$	21,464	$	49,092	$	42,927
Dividends declared and paid per share/unit	$	0.32	$	0.28	$	0.64	$	0.56


Second Quarter 2022 Supplemental Information			Page



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


(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Funds Available for Distribution (FAD) (1)
FFO (6)	$	44,675	$	39,133	$	88,601	$	68,367
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures	(12,004)		(12,347)		(24,324)		(20,875)
Net effect of straight-line rents (3)	(108)		(1,905)		(3,789)		(7,126)
Amortization of net above (below) market rents (4)	(837)		(749)		(1,666)		(1,528)
Net effect of other lease assets (5)	50		392		100		1,789
Amortization of debt issuance costs and debt fair value adjustment	639		579		1,279		1,156
Non-cash compensation expense	2,001		1,484		3,490		2,968


Nonforfeitable dividends on restricted stock awards	(153)		(134)		(306)		(269)

FAD	$	34,263	$	26,453	$	63,385	$	44,482

Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	7,781	$	7,383	$	14,962	$	12,101
Maintenance capital expenditures	4,223		4,964		9,362		8,774
	$	12,004	$	12,347	$	24,324	$	20,875

Notes:

(1) See Glossary of Terms.

(2) For the three and six months ended June 30, 2022 and 2021, 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 (solely with respect to Q2 2020 through Q4 2021), and straight-line rent expense for our leases at the Annex at The Landmark at One Market.

(6) FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. Reconciliations of FFO to net income are included in the Glossary of Terms.


Second Quarter 2022 Supplemental Information			Page



CORPORATE GUIDANCE


(Amounts in thousands, except share and per share data)

	Prior 2022 Guidance Range (1) (2)				Revised 2022 Guidance Range (2)
Funds from Operations (FFO):
Net income	$	49,757	$	55,860	$	52,989	$	57,566
Depreciation and amortization of real estate assets	113,374		113,374		116,233		116,233
FFO, as defined by NAREIT	163,131		169,234		169,222		173,799
Less: Nonforfeitable dividends on restricted stock awards	(642)		(642)		(642)		(642)
FFO attributable to common stock and units	$	162,489	$	168,592	$	168,580	$	173,157
Weighted average number of common shares and units, diluted	76,285,403		76,285,403		76,280,373		76,280,373
FFO per diluted share, updated	$	2.13	$	2.21	$	2.21	$	2.27

Notes:

(1) The Prior 2022 Guidance Range as reported in the company's First Quarter 2022 Supplemental Information

(2) The company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, future debt financings or repayments.

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. Reconciliations of FFO to net income are included in the Glossary of Terms.

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


Second Quarter 2022 Supplemental Information			Page



SAME-STORE NET OPERATING INCOME (NOI)


(Unaudited, amounts in thousands)	Three Months Ended June 30, 2022
	Office		Retail		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store	$	45,839	$	24,338	$	14,214	$	15,010	$	99,401
Non-same store (1)	4,754		—		—		—		4,754
Total	50,593		24,338		14,214		15,010		104,155
Real estate expenses
Same-store	12,466		7,430		6,221		9,426		35,543
Non-same store (1)	1,597		—		—		—		1,597
Total	14,063		7,430		6,221		9,426		37,140
Net Operating Income (NOI)
Same-store	33,373		16,908		7,993		5,584		63,858
Non-same store (1)	3,157		—		—		—		3,157
Total	$	36,530	$	16,908	$	7,993	$	5,584	$	67,015
Same-store NOI	$	33,373	$	16,908	$	7,993	$	5,584	$	63,858
Net effect of straight-line rents (2)	(314)		183		(18)		16		(133)
Amortization of net above (below) market rents (3)	(343)		(263)		—		—		(606)
Net effect of other lease assets (4)	40		10		—		—		50
Tenant improvement reimbursements (5)	(2,601)		(11)		—		—		(2,612)
Same-store cash NOI (5)	$	30,155	$	16,827	$	7,975	$	5,600	$	60,557

Notes:

(1) Same-store and non-same store classifications are determined based on properties held on June 30, 2022 and 2021. 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 (solely with respect to Q2 2020 through Q4 2021), 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.


Second Quarter 2022 Supplemental Information			Page



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


(Unaudited, amounts in thousands)	Six Months Ended June 30, 2022
	Office		Retail		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store	$	91,058	$	49,179	$	28,103	$	28,181	$	196,521
Non-same store (1)	9,104		—		—		—		9,104
Total	100,162		49,179		28,103		28,181		205,625
Real estate expenses
Same-store	24,430		15,158		12,300		17,863		69,751
Non-same store (1)	2,963		—		—		—		2,963
Total	27,393		15,158		12,300		17,863		72,714
Net Operating Income (NOI)
Same-store	66,628		34,021		15,803		10,318		126,770
Non-same store (1)	6,141		—		—		—		6,141
Total	$	72,769	$	34,021	$	15,803	$	10,318	$	132,911
Same-store NOI	$	66,628	$	34,021	$	15,803	$	10,318	$	126,770
Net effect of straight-line rents (2)	(3,572)		19		193		(106)		(3,466)
Amortization of net above (below) market rents (3)	(735)		(526)		—		(10)		(1,271)
Net effect of other lease assets (4)	80		19		—		—		99
Tenant improvement reimbursements (5)	(2,758)		(12)		—		—		(2,770)
Same-store cash NOI (5)	$	59,643	$	33,521	$	15,996	$	10,202	$	119,362

Notes:

(1) Same-store and non-same store classifications are determined based on properties held on June 30, 2022 and 2021. See Glossary of Terms.

(2) Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

(3) Represents the adjustment related to the acquisition of buildings with above (below) market rents.

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


Second Quarter 2022 Supplemental Information			Page



SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT


(Unaudited, amounts in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Change		2022		2021		Change
Cash Basis:
Office	$	30,155	$	30,088	0.2	%	$	59,643	$	56,377	5.8	%
Retail	16,827		17,142		(1.8)		33,521		33,431		0.3
Multifamily	7,975		6,651		19.9		15,996		13,759		16.3
Mixed-Use	5,600		4,546		23.2		10,202		4,547		—
Same-store Cash NOI (1)(2)	$	60,557	$	58,427	3.6	%	$	119,362	$	108,114	10.4	%

Notes:

(1) Excluding lease termination fees, for the three and six months ended June 30, 2022 and 2021, the change in same-store cash NOI would be 4.5% and 10.9% 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.


Second Quarter 2022 Supplemental Information			Page



SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT


(Unaudited, amounts in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2021		Change		2022		2021		Change
Cash Basis:
Office	$	29,962	$	30,181	(0.7)	%	$	59,261	$	56,479	4.9	%
Retail	16,826		17,142		(1.8)		33,520		33,431		0.3
Multifamily	7,975		6,651		19.9		15,996		13,759		16.3
Mixed-Use	5,600		4,546		23.2		10,202		4,547		124.4
Same-store Cash NOI with Redevelopment (1)(2)	$	60,363	$	58,520	3.1	%	$	118,979	$	108,216	9.9	%

Notes:

(1) Excluding lease termination fees, for the three and six months ended June 30, 2022 and 2021, the change in same-store cash NOI with redevelopment would be 4.2% and 10.6% 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.


Second Quarter 2022 Supplemental Information			Page



CASH NOI BY REGION


(Unaudited, amounts in thousands)	Three Months Ended June 30, 2022
	Office		Retail		Multifamily		Mixed-Use		Total
Cash Basis:




Southern California	$	13,324	$	8,181	$	6,615	$	—	$	28,120





Northern California	5,678		2,279		—		—		7,957





Hawaii	—		2,954		—		5,600		8,554





Oregon	8,462		217		1,360		—		10,039





Texas	—		3,207		—		—		3,207





Washington	8,243		—		—		—		8,243





Total Cash NOI	$	35,707	$	16,838	$	7,975	$	5,600	$	66,120

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.


Second Quarter 2022 Supplemental Information			Page



CASH NOI BREAKDOWN


Three Months Ended June 30, 2022


Cash NOI Breakdown

Portfolio Diversification by Geographic Region						Portfolio Diversification by Segment

https://cdn.kscope.io/398dd72d355a1d44225612540f23b598-chart-4027af5cac5b43ff852a.jpg

https://cdn.kscope.io/398dd72d355a1d44225612540f23b598-chart-74791f3f9e274adeab1a.jpg


Second Quarter 2022 Supplemental Information			Page



PROPERTY REVENUE AND OPERATING EXPENSES


(Unaudited, amounts in thousands)	Three Months Ended June 30, 2022
			Additional				Property
			Property		Billed Expense		Operating		Rental		Cash
Property	Base Rent (1)		Income (2)		Reimbursements (3)		Expenses (4)		Adjustments (5)		NOI (6)
Office Portfolio
La Jolla Commons	$	7,816	$	214	$	2,489	$	(2,953)	$	(250)	$	7,316
Torrey Reserve Campus (7)	5,163		49		278		(1,574)		(21)		3,895
Torrey Point	1,336		82		1		(383)		(259)		777
Solana Crossing	2,008		15		58		(584)		(140)		1,357
The Landmark at One Market	9,889		71		306		(2,995)		(1,501)		5,770
One Beach Street	—		—		—		(92)		—		(92)
First & Main	2,736		204		637		(989)		2,498		5,086
Lloyd Portfolio (7)	4,233		404		182		(1,306)		(36)		3,477
City Center Bellevue	6,014		457		157		(1,651)		99		5,076
Eastgate Office Park (8)	1,549		50		685		(733)		—		1,551
Corporate Campus East III (9)	961		62		370		(393)		231		1,231
Bel-Spring 520 (10)	482		10		187		(229)		(65)		385
Subtotal Office Portfolio	$	42,187	$	1,618	$	5,350	$	(13,882)	$	556	$	35,829
Retail Portfolio
Carmel Country Plaza	$	894	$	33	$	198	$	(208)	$	1	$	918
Carmel Mountain Plaza	3,171		40		783		(877)		(93)		3,024
South Bay Marketplace	606		15		200		(195)		(31)		595
Gateway Marketplace	669		—		212		(226)		10		665
Lomas Santa Fe Plaza	1,517		12		296		(438)		13		1,400
Solana Beach Towne Centre	1,606		36		501		(591)		27		1,579
Del Monte Center	2,181		306		729		(1,274)		46		1,988
Geary Marketplace	290		—		131		(130)		—		291
The Shops at Kalakaua	258		14		47		(88)		—		231
Waikele Center	3,063		369		956		(1,681)		16		2,723
Alamo Quarry Market	3,397		198		1,184		(1,625)		53		3,207
Hassalo on Eighth - Retail	242		30		41		(96)		—		217
Subtotal Retail Portfolio	$	17,894	$	1,053	$	5,278	$	(7,429)	$	42	$	16,838


Second Quarter 2022 Supplemental Information			Page



PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)


(Unaudited, amounts in thousands)	Three Months Ended June 30, 2022
			Additional				Property
			Property		Billed Expense		Operating		Rental		Cash
Property	Base Rent (1)		Income (2)		Reimbursements (3)		Expenses (4)		Adjustments (5)		NOI (6)
Multifamily Portfolio
Loma Palisades	$	3,904	$	243	$	—	$	(1,437)	$	(6)	$	2,704
Imperial Beach Gardens	1,070		62		—		(482)		—		650
Mariner's Point	516		28		—		(227)		—		317
Santa Fe Park RV Resort	526		37		—		(250)		—		313
Pacific Ridge Apartments	4,491		267		—		(2,120)		(7)		2,631
Hassalo on Eighth - Multifamily	2,863		410		—		(1,706)		(207)		1,360
Subtotal Multifamily Portfolio	$	13,370	$	1,047	$	—	$	(6,222)	$	(220)	$	7,975
Mixed-Use Portfolio
Waikiki Beach Walk - Retail	$	2,624	$	1,236	$	771	$	(1,515)	$	(563)	$	2,553
Waikiki Beach Walk - Embassy Suites™	9,413		1,545		—		(7,911)		—		3,047
Subtotal Mixed-Use Portfolio	$	12,037	$	2,781	$	771	$	(9,426)	$	(563)	$	5,600
Subtotal Development Properties	$	—	$	28	$	—	$	(150)	$	—	$	(122)
Total	$	85,488	$	6,527	$	11,399	$	(37,109)	$	(185)	$	66,120

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, 2022 (before deferrals, abatements, and tenant improvement reimbursements) and excludes the impact of straight-line rent and above (below) market rent adjustments. Total abatements for our office portfolio were approximately $2.5 million for the three months ended June 30, 2022. Total abatements for our retail portfolio were minimal for the three months ended June 30, 2022. Total abatements for our mixed-use portfolio were approximately $0.6 million for the three months ended June 30, 2022. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Multifamily portfolio base rent represents base rent (including parking, before abatements) less vacancy allowance and employee rent credits and includes additional rents (additional rents include insufficient notice penalties, month-to-month charges and pet rent). There were $0.2 million of abatements for our multifamily portfolio for the three months ended June 30, 2022. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended June 30, 2022. Total tenant improvement reimbursements for our office portfolio, retail portfolio and the retail portion of our mixed-use portfolio were approximately $3.0 million in the aggregate for the three months ended June 30, 2022.

(2) Represents additional property-related income for the three months ended June 30, 2022, 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, 2022.

(4) Represents property operating expenses for the three months ended June 30, 2022. 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 (solely with respect to Q2 2020 through Q4 2021)).

(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 $0.4 million for the three months ended June 30, 2022.

(8) Eastgate Office Park was acquired by us on July 7, 2021.

(9) Corporate Campus East III was acquired by us on September 10, 2021.

(10) Bel-Spring 520 was acquired by us on March 8, 2022.


Second Quarter 2022 Supplemental Information			Page



SEGMENT CAPITAL EXPENDITURES


(Unaudited, amounts in thousands)	Three Months Ended June 30, 2022
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Office Portfolio	$	5,707	$	1,204	$	6,911	$	8,455	$	14,685	$	30,051
Retail Portfolio	2,074		1,615		3,689		8		—		3,697
Multifamily Portfolio	—		1,283		1,283		32		—		1,315
Mixed-Use Portfolio	—		121		121		—		—		121
Total	$	7,781	$	4,223	$	12,004	$	8,495	$	14,685	$	35,184



	Six Months Ended June 30, 2022
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Office Portfolio	$	10,595	$	3,213	$	13,808	$	15,350	$	27,559	$	56,717
Retail Portfolio	4,119		3,127		7,246		11		—		7,257
Multifamily Portfolio	—		2,818		2,818		68		—		2,886
Mixed-Use Portfolio	248		204		452		—		—		452
Total	$	14,962	$	9,362	$	24,324	$	15,429	$	27,559	$	67,312


Second Quarter 2022 Supplemental Information			Page



SUMMARY OF OUTSTANDING DEBT


(Unaudited, amounts in thousands)	Amount
	Outstanding at				Annual Debt
Debt	June 30, 2022		Interest Rate		Service (1)		Maturity Date
City Center Bellevue	111,000		3.98	%	112,878		November 1, 2022
Secured Notes Payable / Weighted Average (3)	$	111,000	3.98	%	$	112,878

Term Loan A (3)	$	100,000	2.70	%	$	2,700	January 5, 2027
Term Loan B (4)	100,000		2.65	%	101,981		March 1, 2023
Term Loan C (5)	50,000		2.64	%	50,988		March 1, 2023
Series F Notes (6)	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 (7)	250,000		3.87	%	10,725		March 1, 2027
Series E Notes (8)	100,000		4.18	%	4,240		May 23, 2029
Series G Notes (9)	150,000		3.88	%	5,865		July 30, 2030
3.375% Senior Unsecured Notes (10)	500,000		3.38	%	16,875		February 1, 2031
Unsecured Notes Payable / Weighted Average (11)	$	1,550,000	3.61	%	$	206,104

Unsecured Line of Credit (12)	$	—	—	%

Notes:

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

(2) The Secured Notes Payable total does not include debt issuance costs, net of $0.01 million.

(3) On January 5, 2022, the maturity date for Term Loan A was extended to January 5, 2027 with no further extension options. On January 14, 2022, we entered into two interest rate swap agreements that are intended to fix the interest rate associated with Term Loan A at approximately 2.70% through January 5, 2027, subject to adjustments based on our consolidated leverage ratio.

(4) 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.

(5) 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.

(6) $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity.

(7) $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity.

(8) $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity.

(9) $150 million of 3.91% Senior Guaranteed Notes, Series G, due July 30, 2030. Net of the settlement of the treasury lock contract, the effective interest rate for the Series G Notes is approximately 3.88% through maturity.

(10) $500 million of 3.375% Senior Unsecured Notes due February 1, 2031. Net of debt issuance discount, the effective interest rate for the 3.375% Notes is approximately 3.502% through maturity.

(11) The Unsecured Notes Payable total does not include debt issuance costs and discounts, net of $11.5 million.

(12) On January 5, 2022, the unsecured revolving line of credit (the "2022 Revolver Loan") capacity was increased to $400 million, with a maturity date of January 5, 2026, subject to our option to extend the 2022 Revolver Loan up to two times, with each such extension for a six-month period. The 2022 Revolver Loan currently accrues interest at SOFR, plus the applicable SOFR adjustment and a spread which ranges from 1.05%-1.50%, based on our consolidated leverage ratio.


Second Quarter 2022 Supplemental Information			Page



MARKET CAPITALIZATION


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

Market data	June 30, 2022
Common shares outstanding	60,528
Common units outstanding	16,181
Common shares and common units outstanding	76,709
Market price per common share	$	29.70
Equity market capitalization	$	2,278,257
Total debt	$	1,661,000
Total market capitalization	$	3,939,257
Less: Cash on hand	$	(60,750)
Total enterprise value	$	3,878,507

Total unencumbered assets, gross	$	3,614,841

Total debt/Total capitalization				42.2	%
Total debt/Total enterprise value				42.8	%
Net debt/Total enterprise value (1)				41.3	%


Total unencumbered assets, gross/Unsecured debt				233.2	%

	Quarter Annualized			Trailing 12 Months
Total debt/Adjusted EBITDA (2)(3)	7.0		x	7.1	x
Net debt/Adjusted EBITDA (1)(2)(3)	6.7		x	6.9	x
Interest coverage ratio (4)	3.9		x	3.9	x
Fixed charge coverage ratio (4)	3.9		x	3.9	x

https://cdn.kscope.io/398dd72d355a1d44225612540f23b598-chart-3276d58484684956949a.jpg


Weighted Average Fixed Interest Rate	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031
	4.0%	2.6%	3.8%	4.5%	—%	3.5%	—%	4.2%	3.9%	3.4%


Total Weighed Average Fixed Interest Rate:			3.64%
Weighted Average Term to Maturity:			5.2


Credit Ratings
Rating Agency	Rating	Outlook
Fitch	BBB	Stable
Moody's	Baa3	Stable
Standard & Poors	BBB-	Stable

Notes:

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

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

(3) As used here, Adjusted EBITDA represents the actual for the three months ended June 30, 2022, 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.

Adjusted EBITDA is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. Reconciliations of Adjusted EBITDA to net income are included in the Glossary of Terms.


Second Quarter 2022 Supplemental Information			Page



SUMMARY OF DEVELOPMENT OPPORTUNITIES

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

Development/Redevelopment Projects

Project Costs (in thousands) (3)

Start
Date

Completion Date

Estimated Stabilized

Yield (1)

Rentable Square Feet

Percent
Leased

Estimated Stabilization Date (2)

Cost Incurred to Date

Total Estimated Investment

Property

Location

Office Property:

La Jolla Commons

University Town Center, San Diego, CA

April 2021

September 2023

6.5% - 7.5%

213,000

—%

2024

$85,799

$175,000

One Beach Street

San Francisco, CA

February 2021

August 2022

TBD

102,000

—%

2023

$30,345

$42,800

Development/Redevelopment Pipeline

Property

Property Type

Location

Estimated Rentable
Square Feet

Multifamily Units

Opportunity

Waikele Center

Retail

Honolulu, HI

90,000

N/A

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

Lomas Santa Fe Plaza

Retail

Solana Beach, CA

45,000

N/A

Development of 45,000 square feet retail building

Lloyd Portfolio - multiple phases (4)

Mixed Use

Portland, OR

Phase 2A - Oregon Square

33,000

N/A

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

Phase 2B - Oregon Square

385,000

N/A

Development 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 2022 Supplemental Information			Page

PORTFOLIO DATA


Second Quarter 2022 Supplemental Information			Page



PROPERTY REPORT


As of June 30, 2022				Office and Retail Portfolios
				Net				Annualized
			Number	Rentable				Base Rent per
		Year Built/	of	Square	Percentage	Annualized		Square
Property	Location	Renovated	Buildings	Feet (1)	Leased (2)	Base Rent (3)		Foot (4)	Retail Anchor Tenant(s) (5)	Other Principal Retail Tenants (6)
Office Properties
La Jolla Commons	San Diego, CA	2008/2014	2	724,208	99.0%	$	46,017,122	$64.18
Torrey Reserve Campus	San Diego, CA	1996-2000/2014-2016/2021	14	521,740	93.7%	23,242,868		47.54
Torrey Point	San Diego, CA	2017	2	93,264	96.8	5,350,758		59.27
Solana Crossing	Solana Beach, CA	1982/2005	4	224,009	82.6	8,206,551		44.35
The Landmark at One Market (7)	San Francisco, CA	1917/2000	1	422,426	100.0	39,562,897		93.66
One Beach Street	San Francisco, CA	1924/1972/1987/1992	1	100,270	—	—		—
First & Main	Portland, OR	2010	1	360,314	93.0	10,959,123		32.70
Lloyd Portfolio	Portland, OR	1940-2015	3	515,928	96.8	16,763,718		33.57
City Center Bellevue	Bellevue, WA	1987	1	496,437	96.5	24,252,504		50.63
Eastgate Office Park	Bellevue, WA	1985	4	280,053	76.2	8,594,510		40.27
Corporate Campus East III	Bellevue, WA	1986	4	157,163	86.8	5,725,045		41.97
Bel-Spring 520	Bellevue, WA	1983	2	92,410	68.3%	2,719,854		$43.09
Subtotal/Weighted Average Office Portfolio (8)			39	3,988,222	91.0%	$	191,394,950	$52.74
Retail Properties
Carmel Country Plaza	San Diego, CA	1991	9	78,098	84.2%	$	3,581,052	$54.46		Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza (9)	San Diego, CA	1994/2014	15	528,416	96.1	13,435,504		26.46	At Home Stores	Dick's Sporting Goods, Sprouts Farmers Market, Nordstrom Rack, Total Wine
South Bay Marketplace (9)	San Diego, CA	1997	9	132,877	100.0	2,483,031		18.69		Ross Dress for Less, Grocery Outlet
Gateway Marketplace	San Diego, CA	1997/2016	3	127,861	100.0	2,657,205		20.78	Hobby Lobby	Smart & Final, Aldi
Lomas Santa Fe Plaza	Solana Beach, CA	1972/1997	9	208,297	97.7	6,136,862		30.16		Vons, Home Goods
Solana Beach Towne Centre	Solana Beach, CA	1973/2000/2004	12	246,651	93.8	6,429,232		27.79		Dixieline Probuild, Marshalls
Del Monte Center (9)	Monterey, CA	1967/1984/2006	16	673,155	81.6	9,025,208		16.43	Macy's	Century Theatres, Whole Foods Market
Geary Marketplace	Walnut Creek, CA	2012	3	35,159	95.6	1,203,624		35.81		Sprouts Farmers Market
The Shops at Kalakaua	Honolulu, HI	1971/2006	3	11,671	77.7	1,032,073		113.81		Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele Center	Waipahu, HI	1993/2008	9	418,047	100.0	12,283,203		29.38	Lowe's, Safeway	UFC Gym, OfficeMax, Old Navy
Alamo Quarry Market (9)	San Antonio, TX	1997/1999	16	588,148	93.6	13,906,167		25.26	Regal Cinemas	Whole Foods Market, Nordstrom Rack
Hassalo on Eighth	Portland, OR	2015	3	44,236	69.0	990,882		32.46		Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio (8)			107	3,092,616	92.5%	$	73,164,043	$25.58
Total/Weighted Average Office and Retail Portfolio (8)			146	7,080,838	91.7%	$	264,558,993	$40.74


Second Quarter 2022 Supplemental Information			Page



PROPERTY REPORT (CONTINUED)


As of June 30, 2022
			Number						Average Monthly
		Year Built/	of		Percentage		Annualized		Base Rent per
Property	Location	Renovated	Buildings	Units	Leased (2)		Base Rent (3)		Leased Unit (4)
Loma Palisades	San Diego, CA	1958/2001 - 2008/2021	80	548	97.3%		$	15,963,624	$	2,495
Imperial Beach Gardens	Imperial Beach, CA	1959/2008	26	160	99.4		4,425,768		$	2,319
Mariner's Point	Imperial Beach, CA	1986	8	88	95.5		2,216,472		$	2,198
Santa Fe Park RV Resort (10)	San Diego, CA	1971/2007-2008	1	126	88.9		2,327,904		$	1,732
Pacific Ridge Apartments	San Diego, CA	2013	3	533	81.6		17,226,732		$	3,301
Hassalo on Eighth - Velomor	Portland, OR	2015	1	177	93.8		3,093,876		$	1,553
Hassalo on Eighth - Aster Tower	Portland, OR	2015	1	337	95.3		6,152,100		$	1,596
Hassalo on Eighth - Elwood	Portland, OR	2015	1	143	93.7		2,341,560		$	1,456
Total/Weighted Average Multifamily Portfolio			121	2,112	92.0%		$	53,748,036	$	2,305

Mixed-Use Portfolio
			Number	Net Rentable					Annualized Base
		Year Built/	of	Square	Percentage		Annualized		Rent per Leased		Retail
Retail Portion	Location	Renovated	Buildings	Feet (1)	Leased (2)		Base Rent (3)		Square Foot (4)		Anchor Tenant(s) (5)	Other Principal Retail Tenants (6)
Waikiki Beach Walk - Retail	Honolulu, HI	2006	3	93,925	94.9	%	$	8,521,724	$	95.60		Yard House, Roy's

			Number						Annualized
		Year Built/	of		Average		Average		Revenue per
Hotel Portion	Location	Renovated	Buildings	Units	Occupancy (11)		Daily Rate (11)		Available Room (11)
Waikiki Beach Walk - Embassy Suites™	Honolulu, HI	2008/2014/2020	2	369	78.8	%	$	355.74	$	280.36

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, 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, 2022, including leases which may not have commenced as of June 30, 2022. Percentage leased for our multifamily properties includes total units rented as of June 30, 2022.

(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, 2022 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 $33,584,653 to our estimate of annual triple net operating expenses of $12,432,469 for an estimated annualized base rent on a modified gross lease basis of $46,017,122 for La Jolla Commons.

•The annualized base rent for Eastgate Office Park 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 $6,013,205 to our estimate of annual triple net operating expenses of $2,581,305 for an estimated annualized base rent on a modified gross lease basis of $8,594,510 for Eastgate Office Park.

•The annualized base rent for Corporate Campus East III 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 $4,084,507 to our estimate of annual triple net operating expenses of $1,640,538 for an estimated annualized base rent on a modified gross lease basis of $5,725,045 for Corporate Campus East III.

•The annualized base rent for Bel-Spring 520 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 $1,932,017 to our estimate of annual triple net operating expenses of $787,837 for an estimated annualized base rent on a modified gross lease basis of $2,719,854 for Bel-Spring 520.

(4) Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of June 30, 2022. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of June 30, 2022. The foregoing notwithstanding, the annualized base rent per leased square foot for La Jolla Commons, Eastgate Office Park, Corporate Campus East III and Bel-Spring 520 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.


Second Quarter 2022 Supplemental Information			Page



PROPERTY REPORT (CONTINUED)

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

(6) Other principal retail tenants, 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.

(8) Lease data for signed but not commenced leases as of June 30, 2022 is in the following table:


	Leased Square Feet			Annualized Base		Pro Forma Annualized
	Under Signed But	Annualized		Rent per		Base Rent per
	Not Commenced Leases (a)	Base Rent (b)		Leased Square Foot (b)		Leased Square Foot (c)
Office Portfolio	71,068	$	4,489,389	$	63.17	$	53.96
Retail Portfolio	40,692	$	1,010,583	$	24.83	$	25.93
Total Retail and Office Portfolio	111,760	$	5,499,972	$	49.21	$	41.61

(a) Office portfolio leases signed but not commenced of 15,447, 33,292 and 22,329 square feet are expected to commence during the third and fourth quarters of 2022 and the first quarter of 2023, respectively. Retail portfolio leases signed but not commenced of 4,228, 3,317, 1,125 and 21,622 square feet are expected to commence during the third and fourth quarters of 2022, and the first and second quarters of 2023, 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, 2022 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. 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, 2022, by square footage under lease as of June 30, 2022.

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


Property	Number of Ground Leases	Square Footage Leased Pursuant to Ground Leases (a)	Aggregate Annualized Base Rent
Carmel Mountain Plaza	5	17,607	$	805,561
South Bay Marketplace	1	2,824	$	102,276
Del Monte Center	1	212,500	$	96,000
Alamo Quarry Market	3	20,694	$	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, 2022, the highest average monthly occupancy rate for this property was 94%, occurring in December 2021. 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, 2022, 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, 2022 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, 2022 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 2022 Supplemental Information			Page



OFFICE LEASING SUMMARY


As of June 30, 2022
Total Lease Summary - Comparable (1)
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. (2)	Prior Rent Per Sq. Ft. (3)		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term (4)	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2022	11	100%	128,335	$60.65	$50.07		$	1,357,877	21.1	%	20.7	%	4.8	$	1,128,669	$8.79
1st Quarter 2022	10	100%	103,941	$77.58	$68.94		$	897,892	12.5	%	17.6	%	3.9	$	2,842,679	$27.35
4th Quarter 2021	10	100%	67,835	$48.61	$41.21		$	501,419	17.9	%	26.5	%	3.8	$	2,058,774	$30.35
3rd Quarter 2021	5	100%	9,269	$42.62	$39.32		$	30,555	8.4	%	13.5	%	4.3	$	274,672	$29.63
Total 12 months	36	100%	309,380	$63.16	$54.14		$	2,787,743	16.6	%	20.3	%	4.3	$	6,304,794	$20.38

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


Quarter
2nd Quarter 2022	3	27%	12,365	$57.80	$50.23		$	93,527	15.1	%	48.9	%	9.6	$	1,128,669	$91.28
1st Quarter 2022	2	20%	13,086	$55.76	$54.52		$	16,215	2.3	%	30.1	%	6.4	$	591,171	$45.18
4th Quarter 2021	2	20%	30,584	$55.93	$42.31		$	416,743	32.2	%	44.9	%	5.9	$	1,933,215	$63.21
3rd Quarter 2021	2	40%	6,451	$38.77	$34.63		$	26,723	12.0	%	16.5	%	5.0	$	252,672	$39.17
Total 12 months	9	25%	62,486	$54.49	$45.64		$	553,208	19.4	%	40.1	%	6.6	$	3,905,727	$62.51

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


Quarter
2nd Quarter 2022	8	73%	115,970	$60.95	$50.05		$	1,264,350	21.8	%	18.3	%	4.3	$	—	—
1st Quarter 2022	8	80%	90,855	$80.73	$71.02		$	881,677	13.7	%	16.4	%	3.6	$	2,251,508	$24.78
4th Quarter 2021	8	80%	37,251	$42.59	$40.32		$	84,676	5.6	%	9.7	%	2.1	$	125,559	$3.37
3rd Quarter 2021	3	60%	2,818	$51.44	$50.08		$	3,832	2.7	%	8.1	%	2.6	$	22,000	$7.81
Total 12 months	27	75%	246,894	$65.35	$56.30		$	2,234,535	16.1	%	16.5	%	3.7	$	2,399,067	$9.72

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


Quarter
2nd Quarter 2022	15	148,677	$60.09	5.4	$	2,756,504	$18.54
1st Quarter 2022	19	169,848	$69.31	5.5	$	8,527,244	$50.21
4th Quarter 2021	18	129,690	$53.28	5.6	$	7,771,227	$59.92
3rd Quarter 2021	6	13,064	$47.96	3.4	$	274,672	$21.03
Total 12 months	58	461,279	$61.23	5.4	$	19,329,647	$41.91

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 2022 Supplemental Information			Page



RETAIL LEASING SUMMARY


As of June 30, 2022
Total Lease Summary - Comparable (1)
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. (2)	Prior Rent Per Sq. Ft. (3)		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent			Weighted Average Lease Term (4)	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2022	16	100%	67,209	$29.01	$27.43		$	105,846	5.7	%	20.2	%		4.5	$	267,191	$3.98
1st Quarter 2022	16	100%	77,708	$35.05	$37.20		$	(166,622)	(5.8)	%	13.5	%		4.6	$	456,000	$5.87
4th Quarter 2021	16	100%	60,343	$35.70	$38.23		$	(152,659)	(6.6)	%	5.2	%		3.9	$	88,000	$1.46
3rd Quarter 2021	23	100%	116,877	$36.77	$37.58		$	(94,939)	(2.2)	%	6.7	%		4.1	$	1,563,500	$13.38
Total 12 months	71	100%	322,137	$34.54	$35.49		$	(308,374)	(2.7)	%	11.0	%		4.3	$	2,374,691	$7.37

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


Quarter
2nd Quarter 2022	2	13%	4,004	$30.57	$29.09		$	5,904	5.1	%	—	%	6	5.4	$	179,726	$44.89
1st Quarter 2022	1	6%	5,500	$39.60	$26.18		$	73,797	51.2	%	—	%	6	10.1	$	176,000	$32.00
4th Quarter 2021	3	19%	3,114	$65.27	$83.58		$	(57,007)	(21.9)	%	(11.4)	%		4.1	$	78,000	$25.05
3rd Quarter 2021	1	4%	7,000	$32.00	$23.78		$	57,575	34.6	%	74.6	%		10.8	$	1,505,000	$215.00
Total 12 months	7	10%	19,618	$39.12	$35.03		$	80,269	11.7	%	113.5	%		8.4	$	1,938,726	$98.82

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


Quarter
2nd Quarter 2022	14	88%	63,205	$28.91	$27.33		$	99,942	5.8	%	11.9	%		4.5	$	87,465	$1.38
1st Quarter 2022	15	94%	72,208	$34.71	$38.03		$	(240,419)	(8.8)	%	2.4	%		4.2	$	280,000	$3.88
4th Quarter 2021	13	81%	57,229	$34.10	$35.77		$	(95,652)	(4.7)	%	9.3	%		3.9	$	10,000	$0.17
3rd Quarter 2021	22	96%	109,877	$37.07	$38.46		$	(152,514)	(3.6)	%	3.4	%		3.7	$	58,500	$0.53
Total 12 months	64	90%	302,519	$34.24	$35.52		$	(388,643)	(3.6)	%	5.6	%		4.0	$	435,965	$1.44

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


Quarter
2nd Quarter 2022	21	77,201	$29.93	4.9	$	945,515	$12.25
1st Quarter 2022	20	87,903	$37.25	5.1	$	1,282,094	$14.59
4th Quarter 2021	20	95,963	$32.37	6.0	$	3,399,809	$35.43
3rd Quarter 2021	30	129,325	$36.80	4.5	$	2,442,851	$18.89
Total 12 months	91	390,392	$34.45	5.1	$	8,070,269	$20.67

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.

(6) Prior tenant’s rent was modified to cash-basis, therefore there is no straight-line rent for comparison.


Second Quarter 2022 Supplemental Information			Page



MULTIFAMILY LEASING SUMMARY


As of June 30, 2022
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 2022	533	97.3%	$15,963,624	$2,495
1st Quarter 2022	533	97.3%	$15,277,872	$2,388
4th Quarter 2021	534	97.5%	$15,005,424	$2,340
3rd Quarter 2021	542	98.9%	$14,635,764	$2,250

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 2022	159	99.4%	$4,425,768	$2,319
1st Quarter 2022	156	97.5%	$4,064,940	$2,171
4th Quarter 2021	153	95.6%	$4,134,048	$2,252
3rd Quarter 2021	156	97.5%	$3,989,664	$2,131

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 2022	84	95.5%	$2,216,472	$2,198
1st Quarter 2022	85	96.6%	$2,062,044	$2,021
4th Quarter 2021	84	95.5%	$1,988,148	$1,971
3rd Quarter 2021	88	100.0%	$2,002,440	$1,896

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 2022	112	88.9%	$2,327,904	$1,732
1st Quarter 2022	111	88.1%	$1,943,196	$1,459
4th Quarter 2021	118	93.7%	$1,793,688	$1,266
3rd Quarter 2021	108	85.7%	$1,629,444	$1,257

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 2022	435	81.6%	$17,226,732	$3,301
1st Quarter 2022	512	96.1%	$19,078,404	$3,104
4th Quarter 2021	521	97.7%	$19,541,508	$3,127
3rd Quarter 2021	527	98.9%	$19,166,088	$3,030


Second Quarter 2022 Supplemental Information			Page



MULTIFAMILY LEASING SUMMARY (CONTINUED)


As of June 30, 2022
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 2022	166	93.8%	$3,093,876	$1,553
1st Quarter 2022	163	92.1%	$2,991,060	$1,529
4th Quarter 2021	169	95.5%	$3,055,992	$1,507
3rd Quarter 2021	168	94.9%	$3,031,260	$1,504

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 2022	321	95.3%	$6,152,100	$1,596
1st Quarter 2022	313	92.9%	$5,765,316	$1,535
4th Quarter 2021	313	92.9%	$5,715,888	$1,521
3rd Quarter 2021	325	96.4%	$5,736,348	$1,471

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 2022	134	93.7%	$2,341,560	$1,456
1st Quarter 2022	129	90.2%	$2,327,976	$1,504
4th Quarter 2021	136	95.1%	$2,322,624	$1,423
3rd Quarter 2021	136	95.1%	$2,269,248	$1,391

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 2022	1,944	92.0%	$53,748,036	$2,305
1st Quarter 2022	2,002	94.8%	$53,510,808	$2,227
4th Quarter 2021	2,028	96.0%	$53,557,320	$2,201
3rd Quarter 2021	2,050	97.1%	$52,460,256	$2,132

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 2022 Supplemental Information			Page



MIXED-USE LEASING SUMMARY


As of June 30, 2022
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 2022	89,100	94.9%	$8,521,724	$96
1st Quarter 2022	88,532	94.3%	$8,101,688	$91
4th Quarter 2021	84,117	89.6%	$6,413,365	$76
3rd Quarter 2021	83,790	86.6%	$5,953,268	$71

Lease Summary - Hotel Portion
	Number of Leased Units	Average Occupancy (4)	Average Daily Rate (4)	Annualized Revenue per Available Room (4)
Quarter
2nd Quarter 2022	291	78.8%	$356	$280
1st Quarter 2022	269	72.8%	$333	$243
4th Quarter 2021	268	72.6%	$297	$215
3rd Quarter 2021	287	77.9%	$309	$240

Notes:

(1) Percentage leased for mixed-use property includes square footage under leases as of June 30, 2022, including leases which may not have commenced as of June 30, 2022.

(2) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2022 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, 2022.

(4) Average occupancy represents the percentage of available units that were sold during the three months ended June 30, 2022, 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 2022 Supplemental Information			Page



LEASE EXPIRATIONS


As of June 30, 2022
Assumes no exercise of lease options
	Office						Retail						Mixed-Use (Retail Portion Only)						Total
		% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring	Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Per Sq. Ft.(1)
Month to Month	39,753	1.0	%	0.6	%	$2.48	13,820	0.4	%	0.2	%	$49.78	5,660	6.0	%	0.1	%	$6.36	59,233	0.8	%	$13.89
2022	177,396	4.4		2.5		$41.18	62,917	2.0		0.9		$26.52	6,698	7.1		0.1		$80.04	247,011	3.4		$38.50
2023	371,695	9.3		5.2		$54.12	202,583	6.6		2.8		$30.95	7,882	8.4		0.1		$41.80	582,160	8.1		$45.89
2024	292,284	7.3		4.1		$44.24	475,844	15.4		6.6		$29.63	10,811	11.5		0.2		$118.75	778,939	10.9		$36.35
2025	349,876	8.8		4.9		$38.87	241,630	7.8		3.4		$31.36	18,275	19.5		0.3		$91.74	609,781	8.5		$37.48
2026	354,347	8.9		4.9		$41.49	270,344	8.7		3.8		$32.82	5,096	5.4		0.1		$205.03	629,787	8.8		$39.09
2027	365,326	9.2		5.1		$51.41	393,837	12.7		5.5		$29.03	3,553	3.8		—		$86.30	762,716	10.6		$40.02
2028	230,810	5.8		3.2		$48.92	607,436	19.6		8.5		$15.03	8,820	9.4		0.1		$161.50	847,066	11.8		$25.79
2029	868,680	21.8		12.1		$62.07	182,602	5.9		2.5		$19.55	1,055	1.1		—		$195.96	1,052,337	14.7		$54.83
2030	232,739	5.8		3.2		$38.43	43,630	1.4		0.6		$37.16	—	—		—		—	276,369	3.9		$38.23
2031	145,236	3.6		2.0		$42.12	119,558	3.9		1.7		$21.56	14,965	15.9		0.2		$112.07	279,759	3.9		$37.08
Thereafter	131,110	3.3		1.8		$46.93	205,352	6.6		2.9		$27.55	—	—		—		—	336,462	4.7		$35.10
Signed Leases Not Commenced	71,068	1.8		1.0		—	40,692	1.3		0.6		—	6,285	6.7		0.1		—	118,045	1.6		—
Available	357,902	9.0		5.0		—	232,371	7.5		3.2		—	4,825	5.1		0.1		—	595,098	8.3		—
Total (2)	3,988,222	100.0	%	55.6	%	$43.62	3,092,616	100.0	%	43.1	%	$23.66	93,925	100.0	%	1.3	%	$90.73	7,174,763	100.0	%	$35.63

Assumes all lease options are exercised
	Office						Retail						Mixed-Use (Retail Portion Only)						Total
		% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring	Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.(1)	Sq. Ft.	Sq. Ft.		Per Sq. Ft.(1)
Month to Month	39,753	1.0	%	0.6	%	$2.48	13,820	0.4	%	0.2	%	$49.78	5,660	6.0	%	0.1	%	$6.36	59,233	0.8	%	$13.89
2022	149,845	3.8		2.1		$39.88	31,692	1.0		0.4		$31.37	6,698	7.1		0.1		$80.04	188,235	2.6		$39.88
2023	131,136	3.3		1.8		$45.31	123,089	4.0		1.7		$35.57	7,532	8.0		0.1		$34.82	261,757	3.6		$40.43
2024	58,537	1.5		0.8		$45.55	227,299	7.3		3.2		$31.85	5,759	6.1		0.1		$153.54	291,595	4.1		$37.00
2025	122,739	3.1		1.7		$45.06	81,768	2.6		1.1		$30.89	6,717	7.2		0.1		$175.62	211,224	2.9		$43.73
2026	54,928	1.4		0.8		$32.58	63,119	2.0		0.9		$43.49	5,096	5.4		0.1		$205.03	123,143	1.7		$45.31
2027	89,027	2.2		1.2		$43.60	167,533	5.4		2.3		$28.97	3,553	3.8		—		$86.30	260,113	3.6		$34.76
2028	121,969	3.1		1.7		$38.66	137,447	4.4		1.9		$21.47	1,906	2.0		—		$215.88	261,322	3.6		$30.91
2029	207,967	5.2		2.9		$44.70	102,395	3.3		1.4		$31.46	6,457	6.9		0.1		$104.32	316,819	4.4		$41.64
2030	261,027	6.5		3.6		$35.76	64,190	2.1		0.9		$35.02	11,558	12.3		0.2		$43.00	336,775	4.7		$35.87
2031	233,627	5.9		3.3		$46.68	58,112	1.9		0.8		$45.58	14,965	15.9		0.2		$112.07	306,704	4.3		$49.66
Thereafter	2,088,697	52.4		29.1		$54.49	1,749,089	56.6		24.4		$22.11	6,914	7.4		0.1		$146.51	3,844,700	53.6		$39.92
Signed Leases Not Commenced	71,068	1.8		1.0		—	40,692	1.3		0.6		—	6,285	6.7		0.1		—	118,045	1.6		—
Available	357,902	9.0		5.0		—	232,371	7.5		3.2		—	4,825	5.1		0.1		—	595,098	8.3		—
Total (2)	3,988,222	100.0	%	55.6	%	$43.62	3,092,616	100.0	%	43.1	%	$23.66	93,925	100.0	%	1.3	%	$90.73	7,174,763	100.0	%	$35.63


Second Quarter 2022 Supplemental Information			Page



LEASE EXPIRATIONS (CONTINUED)


As of June 30, 2022

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, 2022 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 2022 Supplemental Information			Page



PORTFOLIO LEASED STATISTICS


	At June 30, 2022					At June 30, 2021
Type	Size	Leased (1)		Leased %		Size	Leased (1)		Leased %
Overall Portfolio(2) Statistics
Office Properties (square feet)	3,988,222	3,630,320		91.0	%	3,447,278	3,114,225		90.3	%
Retail Properties (square feet)	3,092,616	2,860,245		92.5	%	3,092,428	2,817,790		91.1	%
Multifamily Properties (units)	2,112	1,944		92.0	%	2,112	1,855		87.8	%
Mixed-Use Properties (square feet)	93,925	89,100		94.9	%	96,707	86,216		89.2	%
Mixed-Use Properties (units)	369	280	(3)	75.8	%	369	212	(3)	57.4	%

Same-Store(2) Statistics
Office Properties (square feet)(4)	3,358,326	3,217,377		95.8	%	3,347,008	3,098,778		92.6	%
Retail Properties (square feet)	3,092,616	2,860,245		92.5	%	3,092,428	2,817,790		91.1	%
Multifamily Properties (units)	2,112	1,944		92.0	%	2,112	1,855		87.8	%
Mixed-Use Properties (square feet)	93,925	89,100		94.9	%	96,707	86,216		89.2	%
Mixed-Use Properties (units)	369	280	(3)	75.8	%	369	212	(3)	57.4	%

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, 2022 and 2021.

(4) The same-store portfolio excludes One Beach Street due to significant redevelopment activity, Eastgate Office Park, which was acquired on July 7, 2021, Corporate Campus East III, which was acquired on September 10, 2021, and Bel-Spring 520, which was acquired on March 8, 2022.


Second Quarter 2022 Supplemental Information			Page



TOP TENANTS - OFFICE


As of June 30, 2022
	Tenant	Property	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Office		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Office		Annualized Base Rent as a Percentage of Total
1	Google LLC	The Landmark at One Market	12/31/2029	253,198	6.3	%	3.5	%	$	25,651,314	13.4	%	9.4	%
2	LPL Holdings, Inc.	La Jolla Commons	4/30/2029	421,001	10.6		5.9		19,305,775		10.1		7.1
3	Autodesk, Inc. (1)	The Landmark at One Market	12/31/2023 12/31/2027	138,615	3.5		1.9		12,965,599		6.8		4.7
4	Smartsheet, Inc. (2)	City Center Bellevue	12/31/2026 4/30/2029	123,041	3.1		1.7		6,738,245		3.5		2.5
5	VMware, Inc. (3)	City Center Bellevue	11/30/2022 3/31/2028	109,985	2.8		1.5		5,663,088		3.0		2.1
6	Illumina, Inc.	La Jolla Commons	10/31/2027	73,176	1.8		1.0		4,453,345		2.3		1.6
7	Clearesult Operating, LLC	First & Main	4/30/2025	101,848	2.6		1.4		3,382,042		1.8		1.2
8	State of Oregon: Department of Environmental Quality	Lloyd Portfolio	10/31/2031	87,787	2.2		1.2		2,849,538		1.5		1.0
9	Genentech, Inc.	Lloyd Portfolio	10/31/2026	66,852	1.7		0.9		2,337,632		1.2		0.9
10	Mei Pharma, Inc	Torrey Reserve Campus	11/30/2029	44,481	1.1		0.6		2,220,962		1.2		0.8
	Top 10 Office Tenants Total			1,419,984	35.7	%	19.6	%	$	85,567,540	44.8	%	31.3	%

Notes:

(1) For Autodesk, Inc., 92,820 and 45,795 of leased square feet have a lease expiration of December 31, 2023 and 2027, respectively.

(2) For Smartsheet, Inc., 73,669 and 49,372 of leased square feet have a lease expiration of December 31, 2026 and April 30, 2029, respectively.

(3) For VMware, Inc., 35,383 and 74,602 of leased square feet have a lease expiration of November 30, 2022 and March 31, 2028, respectively.


Second Quarter 2022 Supplemental Information			Page



TOP TENANTS - RETAIL


As of June 30, 2022
	Tenant	Property(ies)	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Retail		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Retail		Annualized Base Rent as a Percentage of Total
1	Lowe's	Waikele Center	5/31/2028	155,000	5.0	%	2.2	%	$	3,720,000	5.1	%	1.4	%
2	Nordstrom Rack (1)	Carmel Mountain Plaza, Alamo Quarry Market	9/30/2027 10/31/2027	69,047	2.2		1.0		2,189,648		3.0		0.8
3	Sprouts Farmers Market (2)	Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace	6/30/2024 3/31/2025 9/30/2032	71,431	2.3		1.0		2,121,187		2.9		0.8
4	Marshalls (3)	Solana Beach Towne Centre, Carmel Mountain Plaza	1/31/2025 1/31/2029	68,055	2.2		0.9		1,728,228		2.4		0.6
5	Vons	Lomas Santa Fe Plaza	12/31/2027	49,895	1.6		0.7		1,399,205		1.9		0.5
6	At Home Stores	Carmel Mountain Plaza	7/31/2029	107,870	3.5		1.5		1,384,552		1.9		0.5
7	Old Navy (4)	Southbay Marketplace Alamo Quarry Market Waikele Center	4/30/2023 9/30/2024 7/31/2030	52,936	1.7		0.7		1,250,327		1.7		0.5
8	Regal Cinemas	Alamo Quarry Market	3/31/2028	72,447	2.3		1.0		1,231,599		1.7		0.5
9	Safeway	Waikele Center	1/31/2040	50,050	1.6		0.7		1,201,200		1.6		0.4
10	Michaels (5)	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
	Top 10 Retail Tenants Total			743,581	23.9	%	10.4	%	$	17,298,581	23.7	%	6.4	%

Notes:

(1) For Nordstrom Rack, 39,047 and 30,000 of leased square feet have a lease expiration of September 30, 2027 (Carmel Mountain Plaza) and October 31, 2027 (Alamo Quarry Marketplace), respectively.

(2) For Sprouts Farmers Market, 14,986, 30,973 and 25,472 of leased square feet have a lease expiration of 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 have a lease expiration of January 31, 2025 (Solana Beach Towne Centre) and 2029 (Carmel Mountain Plaza), respectively.

(4) For Old Navy, 20,000, 15,021 and 17,915 of leased square feet have a lease expiration of April 30, 2023 (Southbay Marketplace), September 30, 2024 (Alamo Quarry Market), and July 31, 2030 (Waikele Center), respectively.

(5) For Michaels, 22,969 and 23,881 of leased square feet have a lease expiration of January 31, 2024 (Carmel Mountain Plaza) and February 29, 2028 (Alamo Quarry Market), respectively.


Second Quarter 2022 Supplemental Information			Page

APPENDIX


Second Quarter 2022 Supplemental Information			Page



GLOSSARY OF TERMS

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA for the three and six months ended June 30, 2022 and 2021 is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	13,588	$	11,487	$	27,102	$	13,220
Depreciation and amortization	31,087		27,646		61,499		55,147
Interest expense	14,547		14,862		29,213		28,867
Interest income	(21)		(100)		(57)		(174)
Income tax expense	202		174		400		301

EBITDA	$	59,403	$	54,069	$	118,157	$	97,361

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,
	2022		2021		2022		2021
EBITDA	$	59,403	$	54,069	$	118,157	$	97,361
Pro forma adjustments	—		—		—		—
Loss on early extinguishment of debt	—		—		—		4,271

Adjusted EBITDA	$	59,403	$	54,069	$	118,157	$	101,632

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, 2022 and 2021 is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	13,588	$	11,487	$	27,102	$	13,220
Depreciation and amortization	31,087		27,646		61,499		55,147
Interest expense	14,547		14,862		29,213		28,867
Interest income	(21)		(100)		(57)		(174)
Income tax expense	202		174		400		301
Gain on sale of real estate	—		—		—		—
EBITDAre	$	59,403	$	54,069	$	118,157	97,361


Second Quarter 2022 Supplemental Information			Page



GLOSSARY OF TERMS (CONTINUED)

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. 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 income	2022		2021		2022		2021
Total NOI	$	67,015	$	60,993	$	132,911	$	115,379
General and administrative	(7,612)		(6,924)		(14,754)		(13,747)
Depreciation and amortization	(31,087)		(27,646)		(61,499)		(55,147)
Operating Income	$	28,316	$	26,423	$	56,658	$	46,485
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)
Loss on early extinguishment of debt	—		—		—		(4,271)

Other income (expense), net	(181)		(74)		(343)		(127)





Net income	$	13,588	$	11,487	$	27,102	$	13,220
Net income attributable to restricted shares	(154)		(135)		(309)		(272)
Net income attributable to unitholders in the Operating Partnership	(2,852)		(2,411)		(5,688)		(2,750)
Net income attributable to American Assets Trust, Inc. stockholders	$	10,582	$	8,941	$	21,105	$	10,198

Overall Portfolio: Includes all operating properties owned by us as of June 30, 2022.


Second Quarter 2022 Supplemental Information			Page



GLOSSARY OF TERMS (CONTINUED)

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 (solely with respect to Q2 2020 through Q4 2021), 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 Income	2022		2021		2022		2021
Total Cash NOI	$	66,120	$	58,729	$	127,556	$	108,512
Non-cash revenue and other operating expenses (1)	895		2,264		5,355		6,867
General and administrative	(7,612)		(6,924)		(14,754)		(13,747)
Depreciation and amortization	(31,087)		(27,646)		(61,499)		(55,147)
Operating income	$	28,316	$	26,423	$	56,658	$	46,485
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)

Loss on early extinguishment of debt	—		—		—		(4,271)
Other income (expense), net	(181)		(74)		(343)		(127)
Net income	$	13,588	$	11,487	$	27,102	$	13,220

(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 (solely with respect to Q2 2020 through Q4 2021), and straight-line rent expense for our leases of the Annex at The Landmark at One Market.


Second Quarter 2022 Supplemental Information			Page



GLOSSARY OF TERMS (CONTINUED)

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 Income	2022		2021		2022		2021
Same-Store Cash NOI	$	60,557	$	58,427	$	119,362	$	108,114
Redevelopment Cash NOI (2)	(194)		93		(383)		102
Same-Store Cash NOI with Redevelopment	60,363		58,520		118,979		108,216
Tenant improvement reimbursements	2,612		220		2,770		291
Total Same-Store Cash NOI with Redevelopment	$	62,975	$	58,740	$	121,749	$	108,507
Non-Same Store Cash NOI	3,145		(11)		5,807		5
Total Cash NOI	$	66,120	$	58,729	$	127,556	$	108,512
Non-cash revenue and other operating expenses (3)	895		2,264		5,355		6,867
General and administrative	(7,612)		(6,924)		(14,754)		(13,747)
Depreciation and amortization	(31,087)		(27,646)		(61,499)		(55,147)
Operating income	$	28,316	$	26,423	$	56,658	$	46,485
Interest expense	(14,547)		(14,862)		(29,213)		(28,867)

Loss on early extinguishment of debt	—		—		—		(4,271)
Other income (expense), net	(181)		(74)		(343)		(127)
Net income	$	13,588	$	11,487	$	27,102	$	13,220

(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 (solely with respect to Q2 2020 through Q4 2021), lease termination fees at Carmel Mountain Plaza, and straight-line rent expense for our leases of the Annex at The Landmark at One Market.


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GLOSSARY OF TERMS (CONTINUED)

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


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GLOSSARY OF TERMS (CONTINUED)

Comparison of Three Months Ended

Comparison of Six Months Ended

June 30, 2022 to 2021

Same-Store

Non Same-Store

Redevelopment Same-Store

Same-Store

Non Same-Store

Redevelopment Same-Store

Office Properties

La Jolla Commons

Torrey Reserve Campus

Torrey Point

Solana Crossing (formerly Solana Beach Corporate Centre)

The Landmark at One Market

One Beach Street

First & Main

Lloyd Portfolio

City Center Bellevue

Eastgate Office Park

Corporate Campus East III

Bel-Spring 520

Retail Properties

Carmel Country Plaza

Carmel Mountain Plaza

South Bay Marketplace

Gateway Marketplace

Lomas Santa Fe Plaza

Solana Beach Towne Centre

Del Monte Center

Geary Marketplace

The Shops at Kalakaua

Waikele Center

Alamo Quarry Market

Hassalo on Eighth - Retail

Multifamily Properties

Loma Palisades

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Pacific Ridge Apartments

Hassalo on Eighth

Mixed-Use Properties

Waikiki Beach Walk - Retail

Waikiki Beach Walk - Embassy Suites™

Development Properties

La Jolla Commons - Land

Solana Crossing - Land

Lloyd Portfolio - Land


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GLOSSARY OF TERMS (CONTINUED)

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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