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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
October 25, 2022
_________________________
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American Assets Trust, Inc.
(Exact name of registrant as specified in its charter)
_________________________
Maryland
001-35030
27-3338708
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

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

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

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

_________________________

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

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

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

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





Item 2.02    Results of Operations and Financial Condition.

On October 25, 2022, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending September 30, 2022. Also on October 25, 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 September 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 September 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**
99.2**
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).
_____________________
** Furnished herewith

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
American Assets Trust, Inc.
By:
/s/ Robert F. Barton
Robert F. Barton
Executive Vice President, CFO
October 25, 2022

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

Net income available to common stockholders of $12.8 million and $33.9 million for the three and nine months ended September 30, 2022, respectively, or $0.21 and $0.56 per diluted share, respectively.
Funds From Operations per diluted share increased 11% and 23% year-over-year for the three and nine months ended September 30, 2022, respectively, or $0.63 and $1.79 per diluted share, respectively.
Increased 2022 FFO per diluted share guidance to a range of $2.30 to $2.34, an approximately 16% increase at the midpoint over our full year 2021 FFO per diluted share.

SAN DIEGO, California - 10/25/2022 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its third quarter ended September 30, 2022.

Third Quarter Highlights
Net income available to common stockholders of $12.8 million and $33.9 million for the three and nine months ended September 30, 2022, respectively, or $0.21 and $0.56 per diluted share, respectively.
Funds From Operations ("FFO") increased 11% and 23% year-over year to $0.63 and $1.79 per diluted share for the three and nine months ended September 30, 2022, respectively, compared to the same periods in 2021.
Same-store cash Net Operating Income ("NOI") increased 11.3% and 10.7% year-over-year for the three and nine months ended September 30, 2022, respectively, compared to the same periods in 2021.
Increased 2022 FFO per diluted share guidance to a range of $2.30 to $2.34 with a midpoint of $2.32, an approximately 4% increase over the prior 2022 guidance midpoint of $2.24.
Leased approximately 43,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 35% and 24%, respectively, during the three months ended September 30, 2022.
Leased approximately 71,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 28% and 7%, respectively, during the three months ended September 30, 2022.

Financial Results
Net income attributable to common stockholders was $12.8 million, or $0.21 per basic and diluted share for the three months ended September 30, 2022 compared to $10.0 million, or $0.17 per basic and diluted share for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income attributed to common stockholders was $33.9 million, or $0.56 per basic and diluted share compared to $20.2 million, or 0.34 per basic and diluted share for the nine months ended September 30, 2021. The year-over-year increase in net income attributable to common stockholders is primarily due to (i) a $4.3 million debt extinguishment charge related to the repayment of the company's Senior Guaranteed Notes, Series A on January 26, 2021, not incurred in 2022, (ii) a $3.1 million net increase in retail income, 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), (iii) a $2.5 million net increase in multifamily income primarily due to an overall increase in occupancy and average monthly base rent, (iv) a $1.7 million net increase at our Waikiki Beach Walk - Embassy Suites due to increased tourism into Hawaii, and (v) and increase of $1.4 million in office net income related to 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.
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During the third quarter of 2022, the company generated FFO for common stock and common units of $47.9 million, or $0.63 per diluted share and unit, compared to $43.4 million, or $0.57 per diluted share and unit, for the third 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 our office segment related to accelerated revenue recognition of tenant improvement overage as a tenant turned over part of their leased square footage early and recognition of accelerated deferred rent payments, and an increase in revenue and average monthly base rent for our multifamily segment. Additionally, there was an increase in FFO in 2022 from our recent acquisitions of Corporate Campus East III in September 2021 and Bel-Spring 520 in March 2022.

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

Leasing
The portfolio leased status as of the end of the indicated quarter was as follows:
September 30, 2022June 30, 2022September 30, 2021
Total Portfolio
Office 90.7%91.0%90.2%
Retail92.2%92.5%91.7%
Multifamily93.0%92.0%97.1%
Mixed-Use:
Retail94.9%94.9%86.6%
Hotel78.6%75.8%64.3%
Same-Store Portfolio
Office (1)
95.8%95.8%92.7%
Retail92.2%92.5%91.7%
Multifamily93.0%92.0%97.1%
Mixed-Use:
Retail94.9%94.9%86.6%
Hotel78.6%75.8%64.3%
(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 third quarter of 2022, the company signed 34 leases for approximately 138,500 square feet of office and retail space, as well as 713 multifamily apartment leases. Renewals accounted for 89% of the comparable office leases, 82% of the comparable retail leases, and 53% of the residential leases.


Office and Retail
On a comparable space basis (i.e. leases for which there was a former tenant) during the third quarter of 2022 and trailing four quarters ended September 30, 2022, our retail and office leasing spreads are shown below:
Number of Leases SignedComparable Leased Sq. Ft.Average Cash Basis % Change Over Prior Rent Average Cash Contractual Rent Per Sq. Ft.Prior Average Cash Contractual Rent Per Sq. Ft.Straight-Line Basis % Change Over Prior Rent
OfficeQ3 2022943,00023.7%$57.35$46.3834.7%
Last 4 Quarters40343,00017.6%$62.98$53.5721.9%
RetailQ3 20221771,0006.8%$31.46$29.4527.7%
Last 4 Quarters65277,000(0.8)%$32.80$33.0515.9%

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Multifamily
The average monthly base rent per leased unit for our multifamily properties for the third quarter of 2022 was $2,372 compared to an average monthly base rent per leased unit of $2,090 for the third quarter of 2021, which is an increase of approximately 13.5%.

Same-Store Cash Net Operating Income
For the three and nine months ended September 30, 2022, same-store cash NOI increased 11.3% and 10.7%, respectively, compared to the three and nine months ended September 30, 2021. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Nine Months Ended (1)
September 30,September 30,
20222021Change20222021Change
Cash Basis:
Office$32,794 $28,572 14.8 %$92,436 $84,948 8.8 %
Retail17,492 18,183 (3.8)51,012 51,614 (1.2)
Multifamily7,957 6,979 14.0 23,953 20,738 15.5 
Mixed-Use6,665 4,587 45.3 16,867 9,134 84.7 
Same-store Cash NOI$64,908 $58,321 11.3 %$184,268 $166,434 10.7 %
(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 September 30, 2022, the company had gross real estate assets of $3.6 billion and liquidity of $427.4 million, comprised of cash and cash equivalents of $63.4 million and $364.0 million of availability on its line of credit. At September 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 third quarter of 2022. The dividends were paid on September 22, 2022.

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

Guidance
The company increased its 2022 FFO per diluted share guidance to a range of $2.30 to $2.34 per share, an
increase of approximately 4% at midpoint from the prior 2022 FFO per diluted share guidance range of $2.21 to
$2.27 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.

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Conference Call
The company will hold a conference call to discuss the results for the third quarter of 2022 on Wednesday, October 26, 2022 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-866-652-5200 and ask to join the American Assets Trust, Inc. Conference Call. A live on-demand audio webcast of the conference call will be available on the company's website at www.americanassetstrust.com. A replay of the call will also be available on the company's website.

Supplemental Information
Supplemental financial information regarding the company's third 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.
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Financial Information
American Assets Trust, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Data)
September 30, 2022December 31, 2021
Assets(unaudited)
Real estate, at cost  
Operating real estate$3,450,995 $3,389,726 
Construction in progress194,798 139,098 
Held for development547 547 
3,646,340 3,529,371 
Accumulated depreciation(910,556)(847,390)
Real estate, net2,735,784 2,681,981 
Cash and cash equivalents63,431 139,524 
Accounts receivable, net8,566 7,445 
Deferred rent receivables, net88,375 82,724 
Other assets, net112,421 106,253 
Total assets$3,008,577 $3,017,927 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$74,555 $110,965 
Unsecured notes payable, net1,538,986 1,538,238 
Unsecured line of credit, net33,895 — 
Accounts payable and accrued expenses72,355 64,531 
Security deposits payable8,821 7,855 
Other liabilities and deferred credits, net82,242 86,215 
Total liabilities1,810,854 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 September 30, 2022 and December 31, 2021, respectively605 605 
Additional paid-in capital1,458,748 1,453,272 
Accumulated dividends in excess of net income(241,549)(217,785)
Accumulated other comprehensive income 12,554 2,872 
Total American Assets Trust, Inc. stockholders' equity1,230,358 1,238,964 
Noncontrolling interests(32,635)(28,841)
Total equity1,197,723 1,210,123 
Total liabilities and equity$3,008,577 $3,017,927 

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American Assets Trust, Inc.
Unaudited Consolidated Statements of Operations
(In Thousands, Except Shares and Per Share Data)
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Revenue:
Rental income$105,468 $93,804 $301,470 $262,573 
Other property income5,555 4,482 15,178 11,508 
Total revenue111,023 98,286 316,648 274,081 
Expenses:
Rental expenses28,438 23,466 78,436 61,916 
Real estate taxes11,477 9,644 34,193 31,610 
General and administrative8,376 6,827 23,130 20,574 
Depreciation and amortization31,729 30,680 93,228 85,827 
Total operating expenses80,020 70,617 228,987 199,927 
Operating income31,003 27,669 87,661 74,154 
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other (expense) income, net(180)(52)(523)(179)
Net income16,369 12,895 43,471 26,115 
Net income attributable to restricted shares(155)(145)(464)(417)
Net income attributable to unitholders in the Operating Partnership
(3,442)(2,709)(9,130)(5,459)
Net income attributable to American Assets Trust, Inc. stockholders
$12,772 $10,041 $33,877 $20,239 
Net income per share
Basic income attributable to common stockholders per share
$0.21 $0.17 $0.56 $0.34 
Weighted average shares of common stock outstanding - basic
60,044,117 59,990,343 60,041,034 59,986,844 
Diluted income attributable to common stockholders per share
$0.21 $0.17 $0.56 $0.34 
Weighted average shares of common stock outstanding - diluted
76,225,654 76,171,880 76,222,571 76,168,381 
Dividends declared per common share$0.32 $0.30 $0.96 $0.86 

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Reconciliation of Net Income to Funds From Operations
The company's FFO attributable to common stockholders and operating partnership unitholders and reconciliation to net income is as follows (in thousands except shares and per share data, unaudited):
Three Months Ended Nine Months Ended
September 30, 2022September 30, 2022
Funds From Operations (FFO)
Net income$16,369 $43,471 
Depreciation and amortization of real estate assets 31,729 93,228 
FFO, as defined by NAREIT$48,098 $136,699 
Less: Nonforfeitable dividends on restricted stock awards(153)(459)
FFO attributable to common stock and units$47,945 $136,240 
FFO per diluted share/unit$0.63 $1.79 
Weighted average number of common shares and units, diluted76,226,946 76,224,480 

Reconciliation of Same-Store Cash NOI to Net Income
The company's reconciliation of Same-Store Cash NOI to Net Income is as follows (in thousands, unaudited):
Three Months Ended (1)
Nine Months Ended (1)
September 30,September 30,
2022202120222021
Same-store cash NOI64,908 $58,321 $184,268 $166,434 
Non-same-store cash NOI2,667 1,669 8,091 1,777 
Tenant improvement reimbursements (2)
171 (24)2,943 267 
Cash NOI$67,746 $59,966 $195,302 $168,478 
Non-cash revenue and other operating expenses (3)
3,362 5,210 8,717 12,077 
General and administrative(8,376)(6,827)(23,130)(20,574)
Depreciation and amortization(31,729)(30,680)(93,228)(85,827)
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other (expense) income, net(180)(52)(523)(179)
Net income$16,369 $12,895 $43,471 $26,115 
Number of properties included in same-store analysis27262726
(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.
(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.
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Use of Non-GAAP Information
Funds from Operations
The company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.

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

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

Cash NOI is a non-GAAP financial measure of performance. The company defines cash NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance), adjusted for non-cash revenue and operating expense items such as straight-line rent, 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.

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About American Assets Trust, Inc.
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 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

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Document

THIRD QUARTER 2022
Supplemental Information



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



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American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets
with favorable supply/demand characteristics
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OfficeRetailMultifamilyMixed-Use
Market Square Feet Square Feet Units Square FeetSuites
San Diego1,563,221 1,322,200 1,455 (1)— — 
Bellevue1,026,063 — — — — 
Portland876,242 44,236 657 — — 
Monterey— 673,155 — — — 
San Antonio— 588,148 — — — 
San Francisco522,696 35,159 — — — 
Oahu— 429,718 — 93,925 369 
Total3,988,222 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.Office4.0 million56%54%
Retail3.1 million44%25%
Data is as of September 30, 2022.Totals7.1 million
(1) Includes 122 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended September 30, 2022. Reconciliation of NOI to net income is included in the Glossary of Terms.

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INDEX
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THIRD QUARTER 2022 SUPPLEMENTAL INFORMATION
1.FINANCIAL HIGHLIGHTS
Consolidated Balance Sheets
Consolidated Statements of Operations
Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution
Corporate Guidance
Same-Store Net Operating Income (NOI)
Same-Store Cash NOI Comparison excluding Redevelopment
Same-Store Cash NOI Comparison with Redevelopment
Cash NOI By Region
Cash NOI Breakdown
Property Revenue and Operating Expenses
Segment Capital Expenditures
Summary of Outstanding Debt
Market Capitalization
Summary of Development Opportunities
2.PORTFOLIO DATA
Property Report
Office Leasing Summary
Retail Leasing Summary
Multifamily Leasing Summary
Mixed-Use Leasing Summary
Lease Expirations
Portfolio Leased Statistics
Top Tenants - Office
Top Tenants - Retail
3.APPENDIX
Glossary of Terms
This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: 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.
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FINANCIAL HIGHLIGHTS




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CONSOLIDATED BALANCE SHEETS
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(Amounts in thousands, except shares and per share data)September 30, 2022December 31, 2021
ASSETS(unaudited)
Real estate, at cost
Operating real estate$3,450,995 $3,389,726 
Construction in progress194,798 139,098 
Held for development547 547 
3,646,340 3,529,371 
Accumulated depreciation(910,556)(847,390)
Net real estate2,735,784 2,681,981 
Cash and cash equivalents63,431 139,524 
Accounts receivable, net8,566 7,445 
Deferred rent receivable, net88,375 82,724 
Other assets, net112,421 106,253 
TOTAL ASSETS$3,008,577 $3,017,927 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$74,555 $110,965 
Unsecured notes payable, net1,538,986 1,538,238 
Unsecured line of credit, net33,895 — 
Accounts payable and accrued expenses72,355 64,531 
Security deposits payable8,821 7,855 
Other liabilities and deferred credits, net82,242 86,215 
Total liabilities1,810,854 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 September 30, 2022 and December 31, 2021, respectively605 605 
Additional paid in capital1,458,748 1,453,272 
Accumulated dividends in excess of net income(241,549)(217,785)
Accumulated other comprehensive income 12,554 2,872 
Total American Assets Trust, Inc. stockholders' equity1,230,358 1,238,964 
Noncontrolling interests(32,635)(28,841)
Total equity1,197,723 1,210,123 
TOTAL LIABILITIES AND EQUITY$3,008,577 $3,017,927 

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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
 2022202120222021
REVENUE:
Rental income$105,468 $93,804 $301,470 $262,573 
Other property income5,555 4,482 15,178 11,508 
Total revenue111,023 98,286 316,648 274,081 
EXPENSES:
Rental expenses28,438 23,466 78,436 61,916 
Real estate taxes11,477 9,644 34,193 31,610 
General and administrative8,376 6,827 23,130 20,574 
Depreciation and amortization31,729 30,680 93,228 85,827 
Total operating expenses80,020 70,617 228,987 199,927 
OPERATING INCOME31,003 27,669 87,661 74,154 
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other (expense) income, net(180)(52)(523)(179)
NET INCOME16,369 12,895 43,471 26,115 
Net income attributable to restricted shares(155)(145)(464)(417)
Net income attributable to unitholders in the Operating Partnership(3,442)(2,709)(9,130)(5,459)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$12,772 $10,041 $33,877 $20,239 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.21 $0.17 $0.56 $0.34 
Weighted average shares of common stock outstanding - basic60,044,117 59,990,343 60,041,034 59,986,844 
Diluted income from continuing operations attributable to common stockholders per share$0.21 $0.17 $0.56 $0.34 
Weighted average shares of common stock outstanding - diluted76,225,654 76,171,880 76,222,571 76,168,381 

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
2022202120222021
Funds from Operations (FFO) (1)
Net income$16,369 $12,895 $43,471 $26,115 
Depreciation and amortization of real estate assets 31,729 30,680 93,228 85,827 
FFO, as defined by NAREIT48,098 43,575 136,699 111,942 
Less: Nonforfeitable dividends on restricted stock awards(153)(143)(459)(412)
FFO attributable to common stock and common units$47,945 $43,432 $136,240 $111,530 
FFO per diluted share/unit$0.63 $0.57 $1.79 $1.46 
Weighted average number of common shares and common units, diluted (2)
76,226,946 76,173,444 76,224,480 76,169,626 
Funds Available for Distribution (FAD) (1)
$37,692 $30,772 $101,077 $75,254 
Dividends
Dividends declared and paid$24,547 $22,995 $73,639 $65,922 
Dividends declared and paid per share/unit$0.32 $0.30 $0.96 $0.86 

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.
        
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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)
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(Unaudited, amounts in thousands, except shares and per share data)Three Months Ended Nine Months Ended
September 30,September 30,
2022202120222021
Funds Available for Distribution (FAD) (1)
FFO$48,098 $43,575 $136,699 $111,942 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (9,543)(9,512)(33,867)(30,387)
Net effect of straight-line rents (3)
(2,577)(3,787)(6,366)(10,913)
Amortization of net above (below) market rents (4)
(831)(823)(2,497)(2,351)
Net effect of other lease assets (5)
46 (600)146 1,189 
Amortization of debt issuance costs and debt fair value adjustment651 578 1,930 1,734 
Non-cash compensation expense2,001 1,484 5,491 4,452 
Nonforfeitable dividends on restricted stock awards(153)(143)(459)(412)
FAD$37,692 $30,772 $101,077 $75,254 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $5,704 $3,896 $20,666 $15,996 
Maintenance capital expenditures3,839 5,616 13,201 14,391 
$9,543 $9,512 $33,867 $30,387 

Notes:
(1)    See Glossary of Terms.
(2)    For the three and nine months ended September 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.

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.


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CORPORATE GUIDANCE
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(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$52,989 $57,566 $55,737 $58,789 
Depreciation and amortization of real estate assets116,233 116,233 120,382 120,382 
FFO, as defined by NAREIT169,222 173,799 176,119 179,171 
Less: Nonforfeitable dividends on restricted stock awards(642)(642)(627)(627)
FFO attributable to common stock and units$168,580 $173,157 $175,492 $178,544 
Weighted average number of common shares and units, diluted76,280,373 76,280,373 76,300,615 76,300,615 
FFO per diluted share, updated$2.21 $2.27 $2.30 $2.34 

Notes:
(1)    The Prior 2022 Guidance Range as reported in the company's Second 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.

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SAME-STORE NET OPERATING INCOME (NOI)
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(Unaudited, amounts in thousands)
Three Months Ended September 30, 2022 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$48,639 $25,694 $14,748 $17,331 $106,412 
Non-same store 4,611 — — — 4,611 
Total53,250 25,694 14,748 17,331 111,023 
Real estate expenses
Same-store13,124 7,807 6,871 10,686 38,488 
Non-same store1,427 — — — 1,427 
Total14,551 7,807 6,871 10,686 39,915 
Net Operating Income (NOI)
Same-store35,515 17,887 7,877 6,645 67,924 
Non-same store3,184 — — — 3,184 
Total$38,699 $17,887 $7,877 $6,645 $71,108 
Same-store NOI$35,515 $17,887 $7,877 $6,645 $67,924 
Net effect of straight-line rents (2)
(2,244)(121)80 20 (2,265)
Amortization of net above (below) market rents (3)
(323)(263)— — (586)
Net effect of other lease assets (4)
16 (10)— — 
Tenant improvement reimbursements (5)
(170)(1)— — (171)
Same-store cash NOI (5)
$32,794 $17,492 $7,957 $6,665 $64,908 

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

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SAME-STORE NET OPERATING INCOME (NOI) (CONTINUED)
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(Unaudited, amounts in thousands)
Nine Months Ended September 30, 2022 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$139,697 $74,873 $42,851 $45,512 $302,933 
Non-same store13,715 — — — 13,715 
Total153,412 74,873 42,851 45,512 316,648 
Real estate expenses
Same-store37,554 22,965 19,171 28,549 108,239 
Non-same store4,390 — — — 4,390 
Total41,944 22,965 19,171 28,549 112,629 
Net Operating Income (NOI)
Same-store102,143 51,908 23,680 16,963 194,694 
Non-same store9,325 — — — 9,325 
Total$111,468 $51,908 $23,680 $16,963 $204,019 
Same-store NOI$102,143 $51,908 $23,680 $16,963 $194,694 
Net effect of straight-line rents (2)
(5,816)(102)273 (86)(5,731)
Amortization of net above (below) market rents (3)
(1,058)(789)— (10)(1,857)
Net effect of other lease assets (4)
96 — — 105 
Tenant improvement reimbursements (5)
(2,929)(14)— — (2,943)
Same-store cash NOI (5)
$92,436 $51,012 $23,953 $16,867 $184,268 

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



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SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT
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(Unaudited, amounts in thousands)Three Months Ended Nine Months Ended
September 30,September 30,
20222021Change20222021Change
Cash Basis:
Office$32,794 $28,572 14.8 %$92,436 $84,948 8.8 %
Retail17,492 18,183 (3.8)51,012 51,614 (1.2)
Multifamily7,957 6,979 14.0 23,953 20,738 15.5 
Mixed-Use6,665 4,587 45.3 16,867 9,134 84.7 
Same-store Cash NOI (1)(2)
$64,908 $58,321 11.3 %$184,268 $166,434 10.7 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2022 and 2021, the change in same-store cash NOI would be 11.4% and 11.1% respectively.
(2)    See Glossary of Terms.


Same-store cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of same-store cash NOI to net income is included in the Glossary of Terms.

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SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT
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(Unaudited, amounts in thousands)Three Months EndedNine Months Ended
September 30,September 30,
20222021Change20222021Change
Cash Basis:
Office$32,609 $28,470 14.5 %$91,869 $84,949 8.1 %
Retail17,492 18,183 (3.8)51,012 51,614 (1.2)
Multifamily7,957 6,979 14.0 23,953 20,738 15.5 
Mixed-Use6,665 4,587 45.3 16,867 9,134 84.7 
Same-store Cash NOI with Redevelopment (1)(2)
$64,723 $58,219 11.2 %$183,701 $166,435 10.4 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2022 and 2021, the change in same-store cash NOI with redevelopment would be 11.5% and 10.9% respectively.
(2)    See Glossary of Terms.


Same-store cash NOI with redevelopment is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of same-store cash NOI with redevelopment to net income is included in the Glossary of Terms.




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CASH NOI BY REGION
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2022
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California$14,008 $8,365 $6,478 $— $28,851 
Northern California7,206 2,537 — — 9,743 
Hawaii— 3,069 — 6,665 9,734 
Oregon6,771 313 1,479 — 8,563 
Texas— 3,209 — — 3,209 
Washington7,646 — — — 7,646 
Total Cash NOI$35,631 $17,493 $7,957 $6,665 $67,746 


Cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of cash NOI to net income is included in the Glossary of Terms.


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CASH NOI BREAKDOWN
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Three Months Ended September 30, 2022
Cash NOI Breakdown
Portfolio Diversification by Geographic RegionPortfolio Diversification by Segment
    

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Cash NOI is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance. A reconciliation of cash NOI to net income is included in the Glossary of Terms.
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PROPERTY REVENUE AND OPERATING EXPENSES
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2022
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$7,821 $173 $2,731 $(3,196)$— $7,529 
Torrey Reserve Campus (7)
5,493 44 354 (1,645)(88)4,158 
Torrey Point1,347 94 10 (380)(259)812 
Solana Crossing2,039 12 107 (643)(36)1,479 
The Landmark at One Market9,891 72 643 (3,324)— 7,282 
One Beach Street — — (33)(43)— (76)
First & Main2,740 210 706 (1,012)832 3,476 
Lloyd Portfolio (7)
4,149 402 205 (1,335)(18)3,403 
City Center Bellevue 5,868 409 91 (1,578)35 4,825 
Eastgate Office Park1,464 49 636 (639)— 1,510 
Corporate Campus East III1,007 106 364 (391)(231)855 
Bel-Spring 520 (8)
488 11 211 (248)(6)456 
Subtotal Office Portfolio$42,307 $1,582 $6,025 $(14,434)$229 $35,709 
Retail Portfolio
Carmel Country Plaza$900 $29 $227 $(241)$$917 
Carmel Mountain Plaza3,320 43 835 (915)(117)3,166 
South Bay Marketplace624 — 209 (201)633 
Gateway Marketplace665 — 222 (242)10 655 
Lomas Santa Fe Plaza1,518 18 314 (441)13 1,422 
Solana Beach Towne Centre1,601 33 523 (598)13 1,572 
Del Monte Center 2,256 388 953 (1,383)31 2,245 
Geary Marketplace297 — 133 (138)— 292 
The Shops at Kalakaua257 19 50 (93)— 233 
Waikele Center3,200 415 812 (1,599)2,836 
Alamo Quarry Market3,406 294 1,396 (1,863)(24)3,209 
Hassalo on Eighth - Retail 221 143 42 (93)— 313 
Subtotal Retail Portfolio$18,265 $1,382 $5,716 $(7,807)$(63)$17,493 

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PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2022
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$3,893 $304 $— $(1,433)$$2,766 
Imperial Beach Gardens1,090 66 — (457)(1)698 
Mariner's Point552 32 — (209)(1)374 
Santa Fe Park RV Resort597 41 — (295)— 343 
Pacific Ridge Apartments4,627 350 — (2,669)(11)2,297 
Hassalo on Eighth - Multifamily2,938 415 — (1,806)(68)1,479 
Subtotal Multifamily Portfolio$13,697 $1,208 $ $(6,869)$(79)$7,957 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$2,203 $1,267 $860 $(1,628)$(83)$2,619 
Waikiki Beach Walk - Embassy Suites™11,378 1,726 — (9,058)— 4,046 
Subtotal Mixed-Use Portfolio$13,581 $2,993 $860 $(10,686)$(83)$6,665 
Subtotal Development Properties$ $31 $ $(109)$ $(78)
Total$87,850 $7,196 $12,601 $(39,905)$4 $67,746 
Cash NOI is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of total cash NOI to net income is included in the Glossary of Terms.
Notes:
(1)    Base rent for our office and retail portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended September 30, 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 $0.9 million for the three months ended September 30, 2022. Total abatements for our retail portfolio were were approximately $0.1 million for the three months ended September 30, 2022. Total abatements for our mixed-use portfolio were approximately $0.1 million for the three months ended September 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 $0.1 million of abatements for our multifamily portfolio for the three months ended September 30, 2022. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended September 30, 2022. Total tenant improvement reimbursements for our office portfolio, retail portfolio and the retail portion of our mixed-use portfolio were approximately $0.3 million in the aggregate for the three months ended September 30, 2022.
(2)    Represents additional property-related income for the three months ended September 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 September 30, 2022.
(4)    Represents property operating expenses for the three months ended September 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 September 30, 2022.
(8)    Bel-Spring 520 was acquired by us on March 8, 2022.

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SEGMENT CAPITAL EXPENDITURES
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2022
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$4,181 $2,320 $6,501 $3,041 $14,565 $24,107 
Retail Portfolio1,503 658 2,161 — 2,165 
Multifamily Portfolio— 684 684 — 686 
Mixed-Use Portfolio20 177 197 — — 197 
Total$5,704 $3,839 $9,543 $3,047 $14,565 $27,155 
Nine Months Ended September 30, 2022
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$14,776 $5,533 $20,309 $18,391 $42,124 $80,824 
Retail Portfolio5,622 3,785 9,407 15 — 9,422 
Multifamily Portfolio— 3,502 3,502 70 — 3,572 
Mixed-Use Portfolio268 381 649 — — 649 
Total$20,666 $13,201 $33,867 $18,476 $42,124 $94,467 

Third Quarter 2022 Supplemental InformationPage
18

SUMMARY OF OUTSTANDING DEBT
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(Unaudited, amounts in thousands)Amount
Outstanding atAnnual Debt
DebtSeptember 30, 2022Interest Rate
Service (1)
Maturity Date
City Center Bellevue (2)
75,000 5.08 %3,704 October 1, 2027
Secured Notes Payable / Weighted Average (3)
$75,000 5.08 %$3,704 
Term Loan A (4)
$100,000 2.70 %$2,700 January 5, 2027
Term Loan B (5)
100,000 2.65 %101,313 March 1, 2023
Term Loan C (6)
50,000 2.64 %50,655 March 1, 2023
Series F Notes (7)
100,000 3.85 %3,780 July 19, 2024
Series B Notes 100,000 4.45 %4,450 February 2, 2025
Series C Notes 100,000 4.50 %4,500 April 1, 2025
Series D Notes (8)
250,000 3.87 %10,725 March 1, 2027
Series E Notes (9)
100,000 4.18 %4,240 May 23, 2029
Series G Notes (10)
150,000 3.88 %5,865 July 30, 2030
3.375% Senior Unsecured Notes (11)
500,000 3.38 %16,875 February 1, 2031
Unsecured Notes Payable / Weighted Average (12)
$1,550,000 3.61 %$205,103 
Unsecured Line of Credit (13)
$36,000 4.38 %
Notes:
(1)    Includes interest and principal payments due over the next twelve months.
(2)    On September 16, 2022, we repaid in full, without premium or penalty, the $111 million principal balance of the mortgage on City Center Bellevue. Concurrent therewith, we entered into a new $75 million non-recourse mortgage on City Center Bellevue. The new five-year mortgage has a maturity date of October 1, 2027 and bears interest at a fixed rate per annum of 5.08% (interest only).
(3)    The Secured Notes Payable total does not include debt issuance costs, net of $0.45 million.
(4)    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.
(5)    Term Loan B matures on March 1, 2023. Term Loan B accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.65%, subject to adjustments based on our consolidated leverage ratio.
(6)    Term Loan C matures on March 1, 2023. Term Loan C accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.64%, subject to adjustments based on our consolidated leverage ratio.
(7)    $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity.
(8)    $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity.
(9)    $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity.
(10)    $150 million of 3.91% Senior Guaranteed Notes, Series G, due July 30, 2030. Net of the settlement of the treasury lock contract, the effective interest rate for the Series G Notes is approximately 3.88% through maturity.
(11)    $500 million of 3.375% Senior Unsecured Notes due February 1, 2031. Net of debt issuance discount, the effective interest rate for the 3.375% Notes is approximately 3.502% through maturity.
(12)    The Unsecured Notes Payable total does not include debt issuance costs and discounts, net of $11.0 million.
(13)    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. The 2022 Revolver Loan total does not include debt issuance costs, net of $2.1 million
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MARKET CAPITALIZATION
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(Unaudited, amounts in thousands, except per share data)
Market dataSeptember 30, 2022
Common shares outstanding60,528 
Common units outstanding16,181 
Common shares and common units outstanding76,709 
Market price per common share$25.72 
Equity market capitalization$1,972,955 
Total debt$1,661,000 
Total market capitalization$3,633,955 
Less: Cash on hand$(63,431)
Total enterprise value$3,570,524 
Total unencumbered assets, gross$3,637,322 
Total debt/Total capitalization45.7 %
Total debt/Total enterprise value46.5 %
Net debt/Total enterprise value (1)
44.7 %
Total unencumbered assets, gross/Unsecured debt229.3 %
Quarter AnnualizedTrailing 12 Months
Total debt/Adjusted EBITDA (2)(3)
6.6 x7.0 x
Net debt/Adjusted EBITDA (1)(2)(3)
6.4 x6.7 x
Interest coverage ratio (4)
4.1 x3.9 x
Fixed charge coverage ratio (4)
4.1 x3.9 x
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Weighted Average Fixed Interest Rate2022202320242025202620272028202920302031
—%2.6%3.8%4.5%—%3.8%—%4.2%3.9%3.4%
Total Weighed Average Fixed Interest Rate:3.68%
Weighted Average Term to Maturity:5.3
Credit Ratings
Rating AgencyRatingOutlook
FitchBBBStable
Moody'sBaa3Stable
Standard & PoorsBBB-Stable
Notes:
(1)    Net debt is equal to total debt less cash on hand.
(2)    See Glossary of Terms for discussion of EBITDA and Adjusted EBITDA.
(3)    As used here, Adjusted EBITDA represents the actual for the three months ended September 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.

Third Quarter 2022 Supplemental InformationPage
20

SUMMARY OF DEVELOPMENT OPPORTUNITIES
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Our portfolio has numerous potential opportunities to create future shareholder value. These opportunities could be subject to government approvals, lender consents, tenant consents, market conditions, availability of debt and/or equity financing, etc. Many of these opportunities are in their preliminary stages and may not ultimately come to fruition. This schedule will update as we modify various assumptions and markets conditions change. Square footages and units set forth below are estimates only and ultimately may differ materially from actual square footages and units.
Development/Redevelopment Projects
Project Costs (in thousands) (3)
Start
Date
Completion Date
Estimated Stabilized
Yield (1)
Rentable Square FeetPercent
Leased
Estimated Stabilization Date (2)
Cost Incurred to DateTotal Estimated Investment
PropertyLocation
Office Property:
La Jolla CommonsUniversity Town Center, San Diego, CAApril 2021September 20236.5% - 7.5%213,000—%2024$98,318$175,000
One Beach StreetSan Francisco, CAFebruary 2021December 2022TBD102,000—%2023$32,001$42,800
Development/Redevelopment Pipeline
PropertyProperty TypeLocationEstimated Rentable
Square Feet
Multifamily UnitsOpportunity
Waikele CenterRetailHonolulu, HI90,000N/ADevelopment of 90,000 square feet retail building (former KMart Space)
Lomas Santa Fe PlazaRetailSolana Beach, CA45,000N/ADevelopment of 45,000 square feet retail building
Lloyd Portfolio - multiple phases (4)
Mixed UsePortland, OR
Phase 2B - Oregon Square
385,000N/ADevelopment of build-to-suit office towers

Notes:
(1)    The estimated stabilized yield is calculated based on total estimated project costs, as defined above, when the project has reached stabilized occupancy.
(2)    Based on management's estimation of stabilized occupancy (90%).
(3)    Project costs exclude capitalized interest cost which is calculated in accordance with Accounting Standards Codification 835-20-50-1.
(4)    The Lloyd Portfolio was acquired in 2011, consisting of approximately 600,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The portion of the property that has been designated for additional development is expected to include a high density, transit oriented, mixed-use urban village, with the potential to be in excess of approximately three million square feet. The entitlement for such development opportunity allows a 12:1 Floor Area Ratio with a 250 foot height limit and provides for retail, office and/or multifamily development.  Additional development plans are in the early stages and will continue to progress as demand and economic conditions allow.
Third Quarter 2022 Supplemental InformationPage
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PORTFOLIO DATA




Third Quarter 2022 Supplemental InformationPage
22

PROPERTY REPORT
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As of September 30, 2022Office and Retail Portfolios
NetAnnualized
NumberRentableBase Rent per
Year Built/ofSquarePercentageAnnualizedSquare
PropertyLocationRenovatedBuildings
Feet (1)
Leased (2)
Base Rent (3)
Foot (4)
Retail Anchor Tenant(s) (5)
Other Principal Retail Tenants (6)
Office Properties
La Jolla CommonsSan Diego, CA2008/2014724,208 99.0%$46,380,368 $64.69
Torrey Reserve CampusSan Diego, CA1996-2000/2014-2016/202114 521,740 95.1%24,071,319 48.51
Torrey PointSan Diego, CA2017 93,264 96.85,394,292 59.75
Solana CrossingSolana Beach, CA1982/2005224,009 82.28,077,755 43.87
The Landmark at One Market (7)
San Francisco, CA1917/2000422,426 100.039,562,897 93.66
One Beach StreetSan Francisco, CA1924/1972/1987/1992100,270 
First & MainPortland, OR2010 360,314 95.010,962,426 32.03
Lloyd PortfolioPortland, OR1940-2015515,928 95.116,471,900 33.57
City Center BellevueBellevue, WA1987496,437 95.723,193,334 48.82
Eastgate Office ParkBellevue, WA1985280,053 72.98,252,554 40.42
Corporate Campus East IIIBellevue, WA1986157,163 84.75,618,664 42.21
Bel-Spring 520Bellevue, WA198392,410 68.3%2,753,343 $43.62
Subtotal/Weighted Average Office Portfolio (8)
39 3,988,222 90.7%$190,738,852 $52.73
Retail Properties
Carmel Country PlazaSan Diego, CA199178,098 85.4%$3,645,843 $54.66Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza (9)
San Diego, CA1994/201415 528,416 96.113,496,513 26.58At Home StoresDick's Sporting Goods, Sprouts Farmers Market, Nordstrom Rack, Total Wine
South Bay Marketplace (9)
San Diego, CA1997132,877 100.02,497,470 18.80Ross Dress for Less, Grocery Outlet
Gateway MarketplaceSan Diego, CA1997/2016127,861 100.02,661,087 20.81Hobby LobbySmart & Final, Aldi
Lomas Santa Fe PlazaSolana Beach, CA1972/1997208,297 96.46,239,671 31.07Vons, Home Goods
Solana Beach Towne CentreSolana Beach, CA1973/2000/200412 246,651 94.76,491,397 27.79Dixieline Probuild, Marshalls
Del Monte Center (9)
Monterey, CA1967/1984/200616 673,155 81.29,243,835 16.91Macy'sCentury Theatres, Whole Foods Market, H&M, Apple, Sephora, Williams-Sonoma
Geary MarketplaceWalnut Creek, CA201235,159 95.61,203,624 35.81Sprouts Farmers Market
The Shops at KalakauaHonolulu, HI1971/200611,671 77.71,032,073 113.81Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele CenterWaipahu, HI1993/2008418,047 100.012,293,432 29.41Lowe's, SafewayUFC Gym, OfficeMax, Old Navy
Alamo Quarry Market (9)
San Antonio, TX1997/199916 588,148 92.414,435,533 26.56Regal CinemasWhole Foods Market, Nordstrom Rack, Williams-Sonoma, Sephora
Hassalo on EighthPortland, OR201544,236 69.0996,450 32.65Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio (8)
107 3,092,616 92.2%$74,236,928 $26.04
Total/Weighted Average Office and Retail Portfolio (8)
146 7,080,838 91.4%$264,975,780 $40.94

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PROPERTY REPORT (CONTINUED)
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As of September 30, 2022
NumberAverage Monthly
Year Built/of
Percentage
AnnualizedBase Rent per
PropertyLocationRenovatedBuildingsUnits
Leased (2)
Base Rent (3)
Leased Unit (4)
Loma PalisadesSan Diego, CA1958/2001 - 2008/202180 548 94.9%$15,681,372 $2,513 
Imperial Beach GardensImperial Beach, CA1959/200826 160 95.04,362,156 $2,392 
Mariner's PointImperial Beach, CA198688 95.52,264,520 $2,245 
Santa Fe Park RV Resort (10)
San Diego, CA1971/2007-2008126 83.32,051,340 $1,629 
Pacific Ridge ApartmentsSan Diego, CA2013533 90.821,882,600 $3,768 
Hassalo on Eighth - Velomor Portland, OR2015177 96.13,265,704 $1,600 
Hassalo on Eighth - Aster Tower Portland, OR2015337 92.66,210,420 $1,658 
Hassalo on Eighth - Elwood Portland, OR2015143 95.82,505,240 $1,524 
Total/Weighted Average Multifamily Portfolio 121 2,112 93.0%$58,223,352 $2,470 
Mixed-Use Portfolio
NumberNet RentableAnnualized Base
Year Built/ofSquare
Percentage
AnnualizedRent per LeasedRetail
Retail PortionLocationRenovatedBuildings
Feet (1)
Leased (2)
Base Rent (3)
Square Foot (4)
Anchor Tenant(s) (5)
Other Principal Retail Tenants (6)
Waikiki Beach Walk - RetailHonolulu, HI200693,925 94.9 %$8,534,364 $95.75 Yard House, Roy's
NumberAnnualized
Year Built/ofAverageAverageRevenue per
Hotel PortionLocationRenovatedBuildingsUnits
Occupancy (11)
Daily Rate (11)
 Available Room (11)
Waikiki Beach Walk - Embassy Suites™Honolulu, HI2008/2014/2020369 84.2 %$398.25 $335.19 
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 September 30, 2022, including leases which may not have commenced as of September 30, 2022. Percentage leased for our multifamily properties includes total units rented as of September 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 September 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 $33,784,577 to our estimate of annual triple net operating expenses of $12,595,791 for an estimated annualized base rent on a modified gross lease basis of $46,380,368 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 $5,781,141 to our estimate of annual triple net operating expenses of $2,471,413 for an estimated annualized base rent on a modified gross lease basis of $8,252,554 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 $4,018,093 to our estimate of annual triple net operating expenses of $1,600,571 for an estimated annualized base rent on a modified gross lease basis of $5,618,664 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 $1,965,506 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 $2,753,343 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 September 30, 2022. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of September 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.
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PROPERTY REPORT (CONTINUED)
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(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 September 30, 2022 is in the following table:
    
Leased Square FeetAnnualized Base Pro Forma Annualized
Under Signed ButAnnualizedRent per Base Rent per
Not Commenced Leases (a)Base Rent (b) Leased Square Foot (b) Leased Square Foot (c)
Office Portfolio92,948 $5,633,984 $60.61 $54.27 
Retail Portfolio21,189 $647,201 $30.54 $26.26 
Total Retail and Office Portfolio114,137 $6,281,185 $55.03 $41.93 
(a)    Office portfolio leases signed but not commenced of 57,789, 22,329, 7,267 and 5,563 square feet are expected to commence during the fourth quarter of 2022 and the first, second and third quarters of 2023, respectively. Retail portfolio leases signed but not commenced of 2,065, 3,002 and 16,122 square feet are expected to commence during the fourth quarter 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 September 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 September 30, 2022, by square footage under lease as of September 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:
PropertyNumber of Ground LeasesSquare Footage Leased Pursuant to Ground Leases (a)Aggregate Annualized Base Rent
Carmel Mountain Plaza517,607 $797,727 
South Bay Marketplace 12,824 $114,552 
Del Monte Center1212,500 $96,000 
Alamo Quarry Market 320,694 $410,151 
(10)    The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended September 30, 2022, the highest average monthly occupancy rate for this property was 96%, occurring in July 2022. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments.
(11)    Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 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 September 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 September 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.
Third Quarter 2022 Supplemental InformationPage
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OFFICE LEASING SUMMARY
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As of September 30, 2022
Total Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 2022100%43,061 $57.35$46.38$472,341 23.7 %34.7 %4.7$943,110 $21.90
2nd Quarter 202211 100%128,335 $60.65$50.07$1,357,877 21.1 %20.7 %4.8$1,128,669 $8.79
1st Quarter 202210 100%103,941 $77.58$68.94$897,892 12.5 %17.6 %3.9$2,842,679 $27.35
4th Quarter 202110 100%67,835 $48.61$41.21$501,419 17.9 %26.5 %3.8$2,058,774 $30.35
Total 12 months40 100%343,172 $62.98$53.57$3,229,529 17.6 %21.9 %4.3$6,973,232 $20.32
New Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202211%17,969 $67.50$45.84$389,194 47.2 %55.0 %5.3$718,760 $40.00
2nd Quarter 202227%12,365 $57.80$50.23$93,527 15.1 %48.9 %9.6$1,128,669 $91.28
1st Quarter 202220%13,086 $55.76$54.52$16,215 2.3 %30.1 %6.4$591,171 $45.18
4th Quarter 202120%30,584 $55.93$42.31$416,743 32.2 %44.9 %5.9$1,933,215 $63.21
Total 12 months20%74,004 $59.02$46.65$915,679 26.5 %45.4 %6.5$4,371,815 $59.08
Renewal Lease Summary - Comparable (1)(5)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202289%25,092 $50.08$46.76$83,147 7.1 %19.6 %4.4$224,350 8.94 
2nd Quarter 202273%115,970 $60.95$50.05$1,264,350 21.8 %18.3 %4.3$— $— 
1st Quarter 202280%90,855 $80.73$71.02$881,677 13.7 %16.4 %3.6$2,251,508 $24.78
4th Quarter 202180%37,251 $42.59$40.32$84,676 5.6 %9.7 %2.1$125,559 $3.37
Total 12 months32 80%269,168 $64.07$55.47$2,313,850 15.5 %16.8 %3.8$2,601,417 $9.66
Total Lease Summary - Comparable and Non-Comparable
Number of Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202213 59,461 $54.705.1$1,777,265 $29.89
2nd Quarter 202215 148,677 $60.095.4$2,756,504 $18.54
1st Quarter 202219 169,848 $69.315.5$8,527,244 $50.21
4th Quarter 202118 129,690 $53.285.6$7,771,227 $59.92
Total 12 months65 507,676 $60.805.4$20,832,240 $41.04
Notes:
(1)    Comparable leases represent those leases signed on spaces for which there was a previous lease.
(2)    Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.
(3)    Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.
(4)    Weighted average is calculated on the basis of square footage.
(5)    Excludes renewals at fixed contractual rates specified in the lease.
Third Quarter 2022 Supplemental InformationPage
26

RETAIL LEASING SUMMARY
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
As of September 30, 2022
Total Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202217 100%71,469 $31.46$29.45$143,598 6.8 %27.7 %4.1$309,280 $4.33
2nd Quarter 202216 100%67,209 $29.01$27.43$105,846 5.7 %20.2 %4.5$267,191 $3.98
1st Quarter 202216 100%77,708 $35.05$37.20$(166,622)(5.8)%13.5 %4.6$456,000 $5.87
4th Quarter 202116 100%60,343 $35.70$38.23$(152,659)(6.6)%5.2 %3.9$88,000 $1.46
Total 12 months65 100%276,729 $32.80$33.05$(69,837)(0.8)%15.9 %4.3$1,120,471 $4.05
New Lease Summary - Comparable (1)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202218%5,007 $43.91$44.38$(2,360)(1.1)%202.9 %
(6)
6.8$121,280 $24.22
2nd Quarter 202213%4,004 $30.57$29.09$5,904 5.1 %— %
(6)
5.4$179,726 $44.89
1st Quarter 20226%5,500 $39.60$26.18$73,797 51.2 %— %
(6)
10.1$176,000 $32.00
4th Quarter 202119%3,114 $65.27$83.58$(57,007)(21.9)%(11.4)%4.1$78,000 $25.05
Total 12 months14%17,625 $43.31$42.15$20,334 2.7 %148.4 %7.0$555,006 $31.49
Renewal Lease Summary - Comparable (1)(5)
Number of Leases Signed% of Comparable Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Prior Rent Per Sq. Ft. (3)
Annual Change in RentCash Basis % Change Over Prior RentStraight-Line Basis % Change Over Prior Rent
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202214 82%66,462 $30.52$28.33$145,958 7.8 %15.0 %3.9$188,000 $2.83
2nd Quarter 202214 88%63,205 $28.91$27.33$99,942 5.8 %11.9 %4.5$87,465 $1.38
1st Quarter 202215 94%72,208 $34.71$38.03$(240,419)(8.8)%2.4 %4.2$280,000 $3.88
4th Quarter 202113 81%57,229 $34.10$35.77$(95,652)(4.7)%9.3 %3.9$10,000 $0.17
Total 12 months56 86%259,104 $32.09$32.43$(90,171)(1.1)%8.3 %4.1$565,465 $2.18
Total Lease Summary - Comparable and Non-Comparable (1)
Number of Leases SignedNet Rentable Square Feet Signed
Contractual Rent Per Sq. Ft. (2)
Weighted Average Lease
Term (4)
Tenant Improvements & IncentivesTenant Improvements & Incentives Per Sq. Ft.
Quarter
3rd Quarter 202221 79,033 $32.624.2$526,410 $6.66
2nd Quarter 202221 77,201 $29.934.9$945,515 $12.25
1st Quarter 202220 87,903 $37.255.1$1,282,094 $14.59
4th Quarter 202120 95,963 $32.376.0$3,399,809 $35.43
Total 12 months82 340,100 $33.145.1$6,153,828 $18.10
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 tenants' rent was modified to cash-basis, therefore there is no straight-line rent for comparison.
Third Quarter 2022 Supplemental InformationPage
27

MULTIFAMILY LEASING SUMMARY
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
As of September 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
3rd Quarter 202252094.9%$15,681,372$2,513
2nd Quarter 202253397.3%$15,963,624$2,495
1st Quarter 202253397.3%$15,277,872$2,388
4th Quarter 202153497.5%$15,005,424$2,340
Lease Summary - Imperial Beach Gardens
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202215295.0%$4,362,156$2,392
2nd Quarter 202215999.4%$4,425,768$2,319
1st Quarter 202215697.5%$4,064,940$2,171
4th Quarter 202115395.6%$4,134,048$2,252
Lease Summary - Mariner's Point
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 20228495.5%$2,264,520$2,245
2nd Quarter 20228495.5%$2,216,472$2,198
1st Quarter 20228596.6%$2,062,044$2,021
4th Quarter 20218495.5%$1,988,148$1,971
Lease Summary - Santa Fe Park RV Resort
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202210583.3%$2,051,340$1,629
2nd Quarter 202211288.9%$2,327,904$1,732
1st Quarter 202211188.1%$1,943,196$1,459
4th Quarter 202111893.7%$1,793,688$1,266
Lease Summary - Pacific Ridge Apartments
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202248490.8%$21,882,600$3,768
2nd Quarter 202243581.6%$17,226,732$3,301
1st Quarter 202251296.1%$19,078,404$3,104
4th Quarter 202152197.7%$19,541,508$3,127






Third Quarter 2022 Supplemental InformationPage
28

MULTIFAMILY LEASING SUMMARY (CONTINUED)
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg

As of September 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
3rd Quarter 202217096.1%$3,265,704$1,600
2nd Quarter 202216693.8%$3,093,876$1,553
1st Quarter 202216392.1%$2,991,060$1,529
4th Quarter 202116995.5%$3,055,992$1,507
Lease Summary - Hassalo on Eighth - Aster Tower
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202231292.6%$6,210,420$1,658
2nd Quarter 202232195.3%$6,152,100$1,596
1st Quarter 202231392.9%$5,765,316$1,535
4th Quarter 202131392.9%$5,715,888$1,521
Lease Summary - Hassalo on Eighth - Elwood
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202213795.8%$2,505,240$1,524
2nd Quarter 202213493.7%$2,341,560$1,456
1st Quarter 202212990.2%$2,327,976$1,504
4th Quarter 202113695.1%$2,322,624$1,423
Total Multifamily Lease Summary
Number of Leased Units
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 20221,96493.0%$58,223,352$2,470
2nd Quarter 20221,94492.0%$53,748,036$2,305
1st Quarter 20222,00294.8%$53,510,808$2,227
4th Quarter 20212,02896.0%$53,557,320$2,201

Notes:
(1)    Percentage leased for our multifamily properties includes total units rented as of each respective quarter end date.
(2)    Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) as of each respective quarter end date.
(3)    Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of each respective quarter end date.

Third Quarter 2022 Supplemental InformationPage
29

MIXED-USE LEASING SUMMARY
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
As of September 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
3rd Quarter 202289,10094.9%$8,534,364$96
2nd Quarter 202289,10094.9%$8,521,724$96
1st Quarter 202288,53294.3%$8,101,688$91
4th Quarter 202184,11789.6%$6,413,365$76
Lease Summary - Hotel Portion
Number of Leased Units
Average Occupancy (4)
Average Daily Rate (4)
Annualized Revenue per Available Room (4)
Quarter
3rd Quarter 202231184.2%$398$335
2nd Quarter 202229178.8%$356$280
1st Quarter 202226972.8%$333$243
4th Quarter 202126872.6%$297$215
Notes:
(1)    Percentage leased for mixed-use property includes square footage under leases as of September 30, 2022, including leases which may not have commenced as of September 30, 2022.
(2)    Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 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 September 30, 2022.
(4)    Average occupancy represents the percentage of available units that were sold during the three months ended September 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.
Third Quarter 2022 Supplemental InformationPage
30

LEASE EXPIRATIONS
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
As of September 30, 2022
Assumes no exercise of lease options
OfficeRetailMixed-Use (Retail Portion Only)Total
% of% ofAnnualized% of% ofAnnualized% of% ofAnnualized% ofAnnualized
ExpiringOfficeTotalBase RentExpiringRetailTotalBase RentExpiringMixed-UseTotalBase RentExpiringTotalBase Rent
YearSq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Month to Month38,237 1.0 %0.5 %$1.4913,078 0.4 %0.2 %$51.455,815 6.2 %0.1 %$6.1957,130 0.8 %$13.41
2022117,328 2.9 1.6 $40.5316,116 0.5 0.2 $49.536,543 7.0 0.1 $81.94139,987 2.0 $43.50
2023382,172 9.6 5.3 $53.62173,898 5.6 2.4 $29.227,882 8.4 0.1 $41.80563,952 7.9 $45.93
2024294,567 7.4 4.1 $44.45478,548 15.5 6.7 $29.7510,811 11.5 0.2 $119.36783,926 10.9 $36.51
2025351,697 8.8 4.9 $39.24265,130 8.6 3.7 $29.8218,275 19.5 0.3 $91.74635,102 8.9 $36.82
2026354,347 8.9 4.9 $41.74271,450 8.8 3.8 $33.095,096 5.4 0.1 $205.03630,893 8.8 $39.34
2027367,214 

9.2 5.1 $51.94415,866 13.4 5.8 $29.814,464 4.8 0.1 $70.05787,544 11.0 $40.36
2028258,000 6.5 3.6 $48.20629,338 20.3 8.8 $16.018,820 9.4 0.1 $161.50896,158 12.5 $26.71
2029847,649 

21.3 11.8 $62.82182,602 5.9 2.5 $19.551,055 1.1 — $195.961,031,306 14.4 $55.29
2030238,543 6.0 3.3 $38.9543,630 1.4 0.6 $37.21— — — 282,173 3.9 $38.68
2031145,236 3.6 2.0 $42.12119,558 3.9 1.7 $21.5614,965 15.9 0.2 $112.07279,759 3.9 $37.08
Thereafter130,359 3.3 1.8 $47.02220,833 7.1 3.1 $28.62— — — 351,192 4.9 $35.45
Signed Leases Not Commenced92,948 2.3 1.3 21,189 0.7 0.3 5,374 5.7 0.1 119,511 1.7 
Available369,925 9.3 5.2 241,380 7.8 3.4 4,825 5.1 0.1 616,130 8.6 
Total (2)
3,988,222 100.0 %55.6 %$43.453,092,616 100.0 %43.1 %$24.0093,925 100.0 %1.3 %$90.867,174,763 100.0 %$35.69
Assumes all lease options are exercised
OfficeRetailMixed-Use (Retail Portion Only)Total
% of% ofAnnualized% of% ofAnnualized% of% ofAnnualized% ofAnnualized
ExpiringOfficeTotalBase RentExpiringRetailTotalBase RentExpiringMixed-UseTotalBase RentExpiringTotalBase Rent
YearSq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Sq. Ft.Sq. Ft.
Per Sq. Ft.(1)
Month to Month38,237 1.0 %0.5 %$1.4913,078 0.4 %0.2 %$51.455,815 6.2 %0.1 %$6.1957,130 0.8 %$13.41
202294,918 2.4 1.3 $38.3411,554 0.4 0.2 $51.596,543 7.0 0.1 $81.94113,015 1.6 $42.22
2023151,792 3.8 2.1 $44.90104,853 3.4 1.5 $34.287,532 8.0 0.1 $34.82264,177 3.7 $40.40
202460,820 1.5 0.8 $45.82230,003 7.4 3.2 $32.005,759 6.1 0.1 $154.68296,582 4.1 $37.22
2025136,099 3.4 1.9 $44.69105,268 3.4 1.5 $26.926,717 7.2 0.1 $175.62248,084 3.5 $40.69
202654,928 1.4 0.8 $32.6964,225 2.1 0.9 $44.205,096 5.4 0.1 $205.03124,249 1.7 $45.71
202785,774 2.2 1.2 $44.27173,926 5.6 2.4 $29.353,553 3.8 — $88.01263,253 3.7 $35.00
2028137,412 3.4 1.9 $37.65145,011 4.7 2.0 $22.931,906 2.0 — $215.88284,329 4.0 $31.34
2029204,054 5.1 2.8 $44.60102,395 3.3 1.4 $31.556,457 6.9 0.1 $104.32312,906 4.4 $41.56
2030244,362 6.1 3.4 $35.8364,190 2.1 0.9 $35.1311,558 12.3 0.2 $43.00320,110 4.5 $35.95
2031233,627 5.9 3.3 $47.0058,112 1.9 0.8 $45.9614,965 15.9 0.2 $112.07306,704 4.3 $49.98
Thereafter2,083,326 52.2 29.0 $54.861,757,432 56.8 24.5 $22.627,825 8.3 0.1 $129.453,848,583 53.6 $40.29
Signed Leases Not Commenced92,948 2.3 1.3 21,189 0.7 0.3 5,374 5.7 0.1 119,511 1.7 
Available369,925 9.3 5.2 241,380 7.8 3.4 4,825 5.1 0.1 616,130 8.6 
Total (2)
3,988,222 100.0 %55.6 %$43.453,092,616 100.0 %43.1 %$24.0093,925 100.0 %1.3 %$90.867,174,763 100.0 %$35.69

Third Quarter 2022 Supplemental InformationPage
31

LEASE EXPIRATIONS (CONTINUED)
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
As of September 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 September 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.


Third Quarter 2022 Supplemental InformationPage
32

PORTFOLIO LEASED STATISTICS
https://cdn.kscope.io/e0032dbffce9f824dbc2b55ddd85e121-image6.jpg
At September 30, 2022At September 30, 2021
TypeSize
Leased (1)
Leased %Size
Leased (1)
Leased %
Overall Portfolio(2) Statistics
Office Properties (square feet)
3,988,222 3,618,297 90.7 %3,884,335 3,505,332 90.2 %
Retail Properties (square feet) 3,092,616 2,851,236 92.2 %3,092,428 2,836,540 91.7 %
Multifamily Properties (units)2,112 1,964 93.0 %2,112 2,050 97.1 %
Mixed-Use Properties (square feet)93,925 89,100 94.9 %96,707 83,790 86.6 %
Mixed-Use Properties (units)369 290 
(3)
78.6 %369 237 
(3)
64.3 %
Same-Store(2) Statistics
Office Properties (square feet)(4)
3,358,326 3,217,761 95.8 %3,347,008 3,103,068 92.7 %
Retail Properties (square feet)3,092,616 2,851,236 92.2 %3,092,428 2,836,540 91.7 %
Multifamily Properties (units)2,112 1,964 93.0 %2,112 2,050 97.1 %
Mixed-Use Properties (square feet)93,925 89,100 94.9 %96,707 83,790 86.6 %
Mixed-Use Properties (units)369 290 
(3)
78.6 %369 237 
(3)
64.3 %

Notes:
(1)    Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date.
(2)    See Glossary of Terms.
(3)    Represents average occupancy for the nine months ended September 30, 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.



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TOP TENANTS - OFFICE
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As of September 30, 2022
TenantPropertyLease ExpirationTotal Leased Square FeetRentable Square Feet as a Percentage of Total OfficeRentable Square Feet as a Percentage of TotalAnnualized Base RentAnnualized Base Rent as a Percentage of Total OfficeAnnualized Base Rent as a Percentage of Total
Google LLCThe Landmark at One Market12/31/2029253,198 6.3 %3.5 %$25,651,314 13.4 %9.4 %
LPL Holdings, Inc.La Jolla Commons4/30/2029421,001 10.6 5.9 19,305,775 10.1 7.1 
Autodesk, Inc. (1)The Landmark at One Market12/31/2023
12/31/2027
138,615 3.5 1.9 12,965,599 6.8 4.7 
Smartsheet, Inc. (2)City Center Bellevue12/31/2026
4/30/2029
123,041 3.1 1.7 6,738,245 3.5 2.5 
VMware, Inc. (3)City Center Bellevue11/30/2022
3/31/2028
91,745 2.3 1.3 4,661,321 2.4 1.7 
Illumina, Inc.La Jolla Commons10/31/202773,176 1.8 1.0 4,609,212 2.4 1.7 
Clearesult Operating, LLCFirst & Main4/30/2025101,848 2.6 1.4 3,382,042 1.8 1.2 
State of Oregon: Department of Environmental QualityLloyd Portfolio10/31/203187,787 2.2 1.2 2,849,538 1.5 1.0 
Genentech, Inc.Lloyd Portfolio10/31/202666,852 1.7 0.9 2,337,632 1.2 0.9 
10 Mei Pharma, IncTorrey Reserve Campus11/30/202944,481 1.1 0.6 2,266,536 1.2 0.8 
Top 10 Office Tenants Total1,401,744 35.2 %19.4 %$84,767,214 44.3 %31.0 %

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., 17,143 and 74,602 of leased square feet have a lease expiration of November 30, 2022 and March 31, 2028, respectively.



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TOP TENANTS - RETAIL
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As of September 30, 2022
TenantProperty(ies)Lease ExpirationTotal Leased Square FeetRentable Square Feet as a Percentage of Total RetailRentable Square Feet as a Percentage of TotalAnnualized Base RentAnnualized Base Rent as a Percentage of Total RetailAnnualized Base Rent as a Percentage of Total
Lowe'sWaikele Center5/31/2028155,000 5.0 %2.2 %$3,720,000 5.0 %1.4 %
Nordstrom Rack (1)Carmel Mountain Plaza,
Alamo Quarry Market
9/30/2027
10/31/2027
69,047 2.2 1.0 2,189,648 2.9 0.8 
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 
Marshalls (3)Solana Beach Towne Centre,
Carmel Mountain Plaza
1/31/2025
1/31/2029
68,055 2.2 0.9 1,728,228 2.3 0.6 
VonsLomas Santa Fe Plaza12/31/202749,895 1.6 0.7 1,399,205 1.9 0.5 
At Home StoresCarmel Mountain Plaza7/31/2029107,870 3.5 1.5 1,384,552 1.9 0.5 
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 
Regal CinemasAlamo Quarry Market3/31/202872,447 2.3 1.0 1,231,599 1.7 0.5 
SafewayWaikele Center1/31/204050,050 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 1.4 0.4 
Top 10 Retail Tenants Total743,581 23.9 %10.4 %$17,298,581 23.3 %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.


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APPENDIX




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GLOSSARY OF TERMS
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Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA for the three and nine months ended September 30, 2022 and 2021 is as follows:
    
Three Months Ended Nine Months Ended
September 30,September 30,
2022202120222021
Net income$16,369 $12,895 $43,471 $26,115 
Depreciation and amortization 31,729 30,680 93,228 85,827 
Interest expense 14,454 14,722 43,667 43,589 
Interest income(60)(98)(117)(272)
Income tax expense240 150 640 451 
EBITDA$62,732 $58,349 $180,889 $155,710 

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 Nine Months Ended
September 30,September 30,
2022202120222021
EBITDA$62,732 $58,349 $180,889 $155,710 
Pro forma adjustments— — — — 
Loss on early extinguishment of debt— — — 4,271 
Adjusted EBITDA$62,732 $58,349 $180,889 $159,981 

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre): EBITDAre is a supplemental non-GAAP measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (NAREIT) defines EBITDAre as follows: net income or loss, computed in accordance with GAAP plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate including gain or loss on change of control, impairments of real estate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates, if any. EBITDAre is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDAre for the three and nine months ended September 30, 2022 and 2021 is as follows:
Three Months Ended Nine Months Ended
September 30,September 30,
2022202120222021
Net income$16,369 $12,895 $43,471 $26,115 
Depreciation and amortization 31,729 30,680 93,228 85,827 
Interest expense 14,454 14,722 43,667 43,589 
Interest income(60)(98)(117)(272)
Income tax expense240 150 640 451 
EBITDAre
$62,732 $58,349 $180,889 155,710 

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

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

Net Operating Income (NOI): We define NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance). NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expense, other nonproperty income and losses, gains and losses from property dispositions, extraordinary items, tenant improvements and leasing commissions. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. Since NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. However, NOI should not be viewed as an alternative measure of our financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations.
Three Months Ended Nine Months Ended
September 30,September 30,
Reconciliation of NOI to net income2022202120222021
Total NOI$71,108 $65,176 $204,019 $180,555 
General and administrative(8,376)(6,827)(23,130)(20,574)
Depreciation and amortization(31,729)(30,680)(93,228)(85,827)
Operating Income$31,003 $27,669 $87,661 $74,154 
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other income (expense), net(180)(52)(523)(179)
Net income$16,369 $12,895 $43,471 $26,115 
Net income attributable to restricted shares(155)(145)(464)(417)
Net income attributable to unitholders in the Operating Partnership(3,442)(2,709)(9,130)(5,459)
Net income attributable to American Assets Trust, Inc. stockholders$12,772 $10,041 $33,877 $20,239 

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


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GLOSSARY OF TERMS (CONTINUED)
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Cash NOI: We define cash NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance), adjusted for non-cash revenue and operating expense items such as straight-line rent, net change in lease receivables (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 EndedNine Months Ended
September 30,September 30,
Reconciliation of Total Cash NOI to Net Income2022202120222021
Total Cash NOI$67,746 $59,966 $195,302 $168,478 
Non-cash revenue and other operating expenses (1)
3,362 5,210 8,717 12,077 
General and administrative(8,376)(6,827)(23,130)(20,574)
Depreciation and amortization(31,729)(30,680)(93,228)(85,827)
Operating income$31,003 $27,669 $87,661 $74,154 
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other income (expense), net(180)(52)(523)(179)
Net income$16,369 $12,895 $43,471 $26,115 
(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.



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GLOSSARY OF TERMS (CONTINUED)
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Same-Store Cash NOI Comparison with Redevelopment: As noted below in the definition of Same-Store, Non-Same Store and Redevelopment Same-Store, information provided on a redevelopment same-store basis includes the results of properties undergoing significant redevelopment for the entirety or portion of both periods being compared. Redevelopment same-store is considered by management to be an important measure because it assists in eliminating disparities due to the redevelopment of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the company's stabilized and redevelopment properties, as applicable. Additionally, redevelopment same-store is considered by management to be an important measure because it assists in evaluating the timing of the start and stabilization of our redevelopment opportunities and the impact that these redevelopments have in enhancing our operating performance. We present Same-Store Cash NOI Comparison with Redevelopment using cash NOI to evaluate and compare the operating performance of the company's properties, as defined above. A reconciliation of Same-Store Cash NOI Comparison with Redevelopment on a cash basis to operating income is presented below:
Three Months Ended (1)
Nine Months Ended (1)
September 30,September 30,
Reconciliation of Same-Store Cash NOI Comparison with Redevelopment to Operating Income2022202120222021
Same-Store Cash NOI$64,908 $58,321 $184,268 $166,434 
Redevelopment Cash NOI (2)
(185)(102)(567)
Same-Store Cash NOI with Redevelopment64,723 58,219 183,701 166,435 
Tenant improvement reimbursements171 (24)2,943 267 
Total Same-Store Cash NOI with Redevelopment$64,894 $58,195 $186,644 $166,702 
Non-Same Store Cash NOI2,852 1,771 8,658 1,776 
Total Cash NOI$67,746 $59,966 $195,302 $168,478 
Non-cash revenue and other operating expenses (3)
3,362 5,210 8,717 12,077 
General and administrative(8,376)(6,827)(23,130)(20,574)
Depreciation and amortization(31,729)(30,680)(93,228)(85,827)
Operating income$31,003 $27,669 $87,661 $74,154 
Interest expense(14,454)(14,722)(43,667)(43,589)
Loss on early extinguishment of debt— — — (4,271)
Other income (expense), net(180)(52)(523)(179)
Net income$16,369 $12,895 $43,471 $26,115 
(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.
(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)
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Same-Store Portfolio, Non-Same Store Portfolio and Redevelopment Same-Store: Information provided on a same-store basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, properties under development, properties classified as held for development and properties classified as discontinued operations. Information provided on a redevelopment same-store basis includes the results of properties undergoing significant redevelopment for the entirety or portion of both periods being compared. The following table shows the properties included in the same-store, non-same store and redevelopment same-store portfolio for the comparative periods presented.
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GLOSSARY OF TERMS (CONTINUED)
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Comparison of Three Months Ended Comparison of Nine Months Ended
September 30, 2022 to 2021September 30, 2022 to 2021
Same-StoreNon Same-StoreRedevelopment Same-StoreSame-StoreNon Same-StoreRedevelopment Same-Store
Office Properties
La Jolla CommonsXXX
Torrey Reserve CampusXXXX
Torrey PointXXXX
Solana Crossing (formerly Solana Beach Corporate Centre)XXXX
The Landmark at One MarketXXXX
One Beach StreetXXXX
First & MainXXXX
Lloyd PortfolioXXXX
City Center BellevueXXXX
Eastgate Office ParkXX
Corporate Campus East IIIXX
Bel-Spring 520XX
Retail Properties
Carmel Country PlazaXXXX
Carmel Mountain PlazaXXXX
South Bay MarketplaceXXXX
Gateway MarketplaceXXXX
Lomas Santa Fe PlazaXXXX
Solana Beach Towne CentreXXXX
Del Monte CenterXXXX
Geary MarketplaceXXXX
The Shops at KalakauaXXXX
Waikele CenterXXXX
Alamo Quarry MarketXXXX
Hassalo on Eighth - RetailXXXX
Multifamily Properties
Loma PalisadesXXXX
Imperial Beach GardensXXXX
Mariner's PointXXXX
Santa Fe Park RV ResortXXXX
Pacific Ridge ApartmentsXXXX
Hassalo on EighthXXXX
Mixed-Use Properties
Waikiki Beach Walk - RetailXXXX
Waikiki Beach Walk - Embassy Suites™XXXX
Development Properties
La Jolla Commons - LandXX
Solana Crossing - LandXX
Lloyd Portfolio - LandXXXX
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GLOSSARY OF TERMS (CONTINUED)
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Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators, new entrances, etc.) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.


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