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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 24, 2023
_________________________
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-aat2019q3a17.jpg
American Assets Trust, Inc.
(Exact name of registrant as specified in its charter)
_________________________
Maryland
001-35030
27-3338708
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

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

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

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

_________________________

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

Securities registered pursuant to Section 12(b) of the Act:
Name of 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 24, 2023, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending September 30, 2023. Also on October 24, 2023, 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, 2023. 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, 2023 and made available on its website certain supplemental 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 24, 2023

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American Assets Trust, Inc. Reports Third Quarter 2023 Financial Results

Net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively, or $0.20 and $0.66 per diluted share, respectively.
Funds from Operations ("FFO") per diluted share decreased 6% and increased 3% year-over-year for the three and nine months ended September 30, 2023, respectively, or $0.59 and $1.84 per diluted share, respectively.
Increased 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over prior guidance.

SAN DIEGO, California - 10/24/2023 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its third quarter ended September 30, 2023.

Third Quarter Highlights
Net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively, or $0.20 and $0.66 per diluted share, respectively.
FFO decreased 6% and increased 3% year-over-year to $0.59 and $1.84 per diluted share for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022.
Same-store cash Net Operating Income ("NOI") increased 1.8% and 5.2% year-over-year for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022.
Increased 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over the prior 2023 guidance midpoint of $2.32.
Leased approximately 63,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 14% and 7%, respectively, during the third quarter.
Leased approximately 132,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 19% and 8%, respectively, during the third quarter.

Financial Results
(Unaudited, amounts in thousands, except per share data)Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Net income attributable to American Assets Trust, Inc. stockholders$11,778 $12,772 $39,897 $33,877 
Basic and diluted income attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
FFO attributable to common stock and common units$44,817 $47,945 $140,231 $136,240 
FFO per diluted share and unit$0.59 $0.63 $1.84 $1.79 
Net income attributable to common stockholders increased $6.0 million for the nine months ended September 30, 2023 compared to the same period in 2022, primarily due to (i) a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at our Hassalo on Eighth property, (ii) a $3.4 million net increase in our retail segment due to new tenant leases, (iii) a $2.2 million net increase in our office segment due to higher
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annualized base rents and (iv) a $2.1 million net increase at Waikiki Beach Walk - Embassy Suites due to increased tourism into Hawaii. These increases were offset by higher interest expense of $4.8 million on the $225 million Amended and Restated Term Loan Agreement and higher general and administrative expenses of $3.4 million due to an increase in stock-based compensation expense, general legal expenses and employee-related costs in 2023.

FFO decreased $3.1 million for the three months ended September 30, 2023 compared to the same period in 2022, primarily due to a decrease in our office segment related to prior year accelerated revenue recognition of tenant improvement overages, as well as higher interest expense and general and administrative expenses as described above.

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

Leasing
The portfolio leased status as of the end of the indicated quarter was as follows:
September 30, 2023June 30, 2023September 30, 2022
Total Portfolio
Office 86.8%87.4%90.7%
Retail94.4%94.6%92.2%
Multifamily89.5%85.9%93.0%
Mixed-Use:
Retail95.1%94.6%94.9%
Hotel85.3%83.2%78.6%
Same-Store Portfolio
Office (1)
89.7%90.3%93.1%
Retail94.4%94.6%92.2%
Multifamily89.5%85.9%93.0%
Mixed-Use:
Retail95.1%94.6%94.9%
Hotel85.3%83.2%78.6%
(1) Same-store office leased percentages include Bel-Spring 520 which was acquired on March 8, 2022. Same-store office leased percentages exclude (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.

During the third quarter of 2023, the company signed 38 leases for approximately 222,600 square feet of office and retail space, as well as 709 multifamily apartment leases. Renewals accounted for 71% of the comparable office leases, 100% of the comparable retail leases, and 44% 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 2023 and trailing four quarters ended September 30, 2023, 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 2023763,0007.0%$59.45$55.5713.5%
Last 4 Quarters40316,0003.4%$65.35$63.2112.1%
RetailQ3 202325132,0008.2%$33.70$30.6518.7%
Last 4 Quarters77363,0008.4%$34.65$31.7815.2%


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Multifamily
The average monthly base rent per leased unit for our multifamily properties for the third quarter of 2023 was $2,572 compared to an average monthly base rent per leased unit of $2,372 for the third quarter of 2022, which is an increase of approximately 8.4%.

Same-Store Cash Net Operating Income
For the three and nine months ended September 30, 2023, same-store cash NOI increased 1.8% and 5.2%, respectively, compared to the three and nine months ended September 30, 2022. The same-store cash NOI by segment was as follows (in thousands):
Three Months Ended (1)
Nine Months Ended (2)
September 30,September 30,
20232022Change20232022Change
Cash Basis:
Office$35,451 $35,449 — %$103,375 $99,625 3.8 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI$68,812 $67,563 1.8 %$201,400 $191,457 5.2 %
(1)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.
(2)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Bel-Spring 520 which was acquired on March 8, 2022; (iii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iv) 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, 2023, the company had gross real estate assets of $3.7 billion and liquidity of $490.0 million, comprised of cash and cash equivalents of $90.0 million and $400.0 million of availability on its line of credit. At September 30, 2023, the company had only 1 out of 31 assets encumbered by a mortgage.

Dividends
The company declared dividends on its shares of common stock of $0.33 per share for the third quarter of 2023. The dividends were paid on September 21, 2023.

In addition, the company has declared a dividend on its common stock of $0.33 per share for the fourth quarter of 2023. The dividend will be paid in cash on December 21, 2023 to stockholders of record on December 7, 2023.

Guidance
The company increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 per share, an
increase of 2.6% at midpoint from the prior 2023 FFO per diluted share guidance range of $2.28 to
$2.36 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 2023 on Wednesday, October 25, 2023 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-833-630-1956 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 2023 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, 2023December 31, 2022
Assets(unaudited)
Real estate, at cost  
Operating real estate$3,494,369 $3,468,537 
Construction in progress233,720 202,385 
Held for development547 547 
3,728,636 3,671,469 
Accumulated depreciation(1,013,367)(936,913)
Real estate, net2,715,269 2,734,556 
Cash and cash equivalents89,968 49,571 
Accounts receivable, net7,875 7,848 
Deferred rent receivables, net89,023 87,192 
Other assets, net108,584 108,714 
Total assets$3,010,719 $2,987,881 
Liabilities and equity  
Liabilities:  
Secured notes payable, net$74,646 $74,578 
Unsecured notes payable, net1,614,307 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses70,970 65,992 
Security deposits payable8,952 8,699 
Other liabilities and deferred credits, net73,194 79,577 
Total liabilities1,842,069 1,802,356 
Commitments and contingencies  
Equity:  
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,724,630 and 60,718,653 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively607 607 
Additional paid-in capital1,467,455 1,461,201 
Accumulated dividends in excess of net income(270,817)(251,167)
Accumulated other comprehensive income 12,051 10,624 
Total American Assets Trust, Inc. stockholders' equity1,209,296 1,221,265 
Noncontrolling interests(40,646)(35,740)
Total equity1,168,650 1,185,525 
Total liabilities and equity$3,010,719 $2,987,881 

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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,
2023202220232022
Revenue:
Rental income$105,494 $105,468 $312,105 $301,470 
Other property income5,704 5,555 16,568 15,178 
Total revenue111,198 111,023 328,673 316,648 
Expenses:
Rental expenses29,912 28,438 86,128 78,436 
Real estate taxes11,399 11,477 34,117 34,193 
General and administrative8,880 8,376 26,488 23,130 
Depreciation and amortization29,868 31,729 89,592 93,228 
Total operating expenses80,059 80,020 236,325 228,987 
Operating income31,139 31,003 92,348 87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income15,135 16,369 51,198 43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership
(3,168)(3,442)(10,733)(9,130)
Net income attributable to American Assets Trust, Inc. stockholders
$11,778 $12,772 $39,897 $33,877 
Net income per share
Basic income attributable to common stockholders per share
$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - basic
60,150,681 60,044,117 60,147,189 60,041,034 
Diluted income attributable to common stockholders per share
$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - diluted
76,332,218 76,225,654 76,328,726 76,222,571 
Dividends declared per common share$0.33 $0.32 $0.99 $0.96 

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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, 2023September 30, 2023
Funds From Operations (FFO)
Net income$15,135 $51,198 
Depreciation and amortization of real estate assets 29,868 89,592 
FFO, as defined by NAREIT$45,003 $140,790 
Less: Nonforfeitable dividends on restricted stock awards(186)(559)
FFO attributable to common stock and units$44,817 $140,231 
FFO per diluted share/unit$0.59 $1.84 
Weighted average number of common shares and units, diluted76,335,424 76,332,053 

Reconciliation of Same-Store Cash NOI to Net Income
The company's reconciliation of Same-Store Cash NOI to Net Income is as follows (in thousands, unaudited):
Three Months Ended (1)
Nine Months Ended (2)
September 30,September 30,
2023202220232022
Same-store cash NOI68,812 $67,563 $201,400 $191,457 
Non-same-store cash NOI(385)(153)489 375 
Tenant improvement reimbursements (3)
260 336 599 3,470 
Cash NOI$68,687 $67,746 $202,488 $195,302 
Non-cash revenue and other operating expenses (4)
1,200 3,362 5,940 8,717 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income$15,135 $16,369 $51,198 $43,471 
Number of properties included in same-store analysis30272927
(1)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.
(2)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Bel-Spring 520 which was acquired on March 8, 2022; (iii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iv) land held for development.
(3)    Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.
(4)    Represents adjustments related to the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances, 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, 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 55 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 4.1 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 2,110 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: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; 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; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; 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 American Assets Trust, Inc. 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 2023
Supplemental Information



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https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
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 Diego1,588,956 1,322,200 1,453 (1)— — 
Bellevue1,030,434 — — — — 
Portland908,178 44,236 657 — — 
Monterey— 673,155 — — — 
San Antonio— 588,148 — — — 
San Francisco522,696 35,159 — — — 
Oahu— 429,718 — 93,925 369 
Total4,050,264 3,092,616 2,110 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.Office4.1 million57%52%
Retail3.1 million43%27%
Data is as of September 30, 2023.Totals7.2 million
(1) Includes 120 RV spaces.
(2) Percentage of Net Operating Income (NOI) calculated for the three months ended September 30, 2023. Reconciliation of NOI to net income is included in the Glossary of Terms.

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INDEX
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THIRD QUARTER 2023 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: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; 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; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; 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 American Assets Trust, Inc. 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, 2023December 31, 2022
ASSETS(unaudited)
Real estate, at cost
Operating real estate$3,494,369 $3,468,537 
Construction in progress233,720 202,385 
Held for development547 547 
3,728,636 3,671,469 
Accumulated depreciation(1,013,367)(936,913)
Net real estate2,715,269 2,734,556 
Cash and cash equivalents89,968 49,571 
Accounts receivable, net7,875 7,848 
Deferred rent receivable, net89,023 87,192 
Other assets, net108,584 108,714 
TOTAL ASSETS$3,010,719 $2,987,881 
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net$74,646 $74,578 
Unsecured notes payable, net1,614,307 1,539,453 
Unsecured line of credit, net— 34,057 
Accounts payable and accrued expenses70,970 65,992 
Security deposits payable8,952 8,699 
Other liabilities and deferred credits, net73,194 79,577 
Total liabilities1,842,069 1,802,356 
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,724,630 and 60,718,653 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively607 607 
Additional paid in capital1,467,455 1,461,201 
Accumulated dividends in excess of net income(270,817)(251,167)
Accumulated other comprehensive income 12,051 10,624 
Total American Assets Trust, Inc. stockholders' equity1,209,296 1,221,265 
Noncontrolling interests(40,646)(35,740)
Total equity1,168,650 1,185,525 
TOTAL LIABILITIES AND EQUITY$3,010,719 $2,987,881 

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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,
 2023202220232022
REVENUE:
Rental income$105,494 $105,468 $312,105 $301,470 
Other property income5,704 5,555 16,568 15,178 
Total revenue111,198 111,023 328,673 316,648 
EXPENSES:
Rental expenses29,912 28,438 86,128 78,436 
Real estate taxes11,399 11,477 34,117 34,193 
General and administrative8,880 8,376 26,488 23,130 
Depreciation and amortization29,868 31,729 89,592 93,228 
Total operating expenses80,059 80,020 236,325 228,987 
OPERATING INCOME31,139 31,003 92,348 87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
NET INCOME15,135 16,369 51,198 43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership(3,168)(3,442)(10,733)(9,130)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS$11,778 $12,772 $39,897 $33,877 
EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - basic60,150,681 60,044,117 60,147,189 60,041,034 
Diluted income from continuing operations attributable to common stockholders per share$0.20 $0.21 $0.66 $0.56 
Weighted average shares of common stock outstanding - diluted76,332,218 76,225,654 76,328,726 76,222,571 

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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,
2023202220232022
Funds from Operations (FFO) (1)
Net income$15,135 $16,369 $51,198 $43,471 
Depreciation and amortization of real estate assets 29,868 31,729 89,592 93,228 
FFO, as defined by NAREIT45,003 48,098 140,790 136,699 
Less: Nonforfeitable dividends on restricted stock awards(186)(153)(559)(459)
FFO attributable to common stock and common units$44,817 $47,945 $140,231 $136,240 
FFO per diluted share/unit$0.59 $0.63 $1.84 $1.79 
Weighted average number of common shares and common units, diluted (2)
76,335,424 76,226,946 76,332,053 76,224,480 
Funds Available for Distribution (FAD) (1)
$32,181 $37,692 $100,339 $101,077 
Dividends
Dividends declared and paid$25,379 $24,547 $76,135 $73,639 
Dividends declared and paid per share/unit$0.33 $0.32 $0.99 $0.96 

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.
        
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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,
2023202220232022
Funds Available for Distribution (FAD) (1)
FFO$45,003 $48,098 $140,790 $136,699 
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures (14,383)(9,543)(42,761)(33,867)
Net effect of straight-line rents (3)
(490)(2,577)(3,774)(6,366)
Amortization of net above (below) market rents (4)
(759)(831)(2,337)(2,497)
Net effect of other lease assets (5)
52 46 173 146 
Amortization of debt issuance costs and debt fair value adjustment835 651 2,553 1,930 
Non-cash compensation expense2,109 2,001 6,254 5,491 
Nonforfeitable dividends on restricted stock awards(186)(153)(559)(459)
FAD$32,181 $37,692 $100,339 $101,077 
Summary of Capital Expenditures
Tenant improvements and leasing commissions $4,257 $5,704 $17,884 $20,666 
Maintenance capital expenditures10,126 3,839 24,877 13,201 
$14,383 $9,543 $42,761 $33,867 

Notes:
(1)    See Glossary of Terms.
(2)    For the three and nine months ended September 30, 2023 and 2022, 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, 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.


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CORPORATE GUIDANCE
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(Amounts in thousands, except share and per share data)
Prior 2023 Guidance Range (1)(2)
Revised 2023 Guidance Range (2)
Funds from Operations (FFO):
Net income$58,331 $64,439 $63,072 $66,126 
Depreciation and amortization of real estate assets116,530 116,530 117,858 117,858 
FFO, as defined by NAREIT174,861 180,969 180,930 183,984 
Less: Nonforfeitable dividends on restricted stock awards(761)(761)(746)(746)
FFO attributable to common stock and units$174,100 $180,208 $180,184 $183,238 
Weighted average number of common shares and units, diluted76,359,443 76,359,443 76,348,908 76,348,908 
FFO per diluted share, updated$2.28 $2.36 $2.36 $2.40 

Notes:
(1)    The Prior 2023 Guidance Range as reported in the company's Second Quarter 2023 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.

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, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$51,931 $26,143 $15,152 $17,955 $111,181 
Non-same store 17 — — — 17 
Total51,948 26,143 15,152 17,955 111,198 
Real estate expenses
Same-store14,960 7,504 7,262 11,184 40,910 
Non-same store401 — — — 401 
Total15,361 7,504 7,262 11,184 41,311 
Net Operating Income (NOI)
Same-store36,971 18,639 7,890 6,771 70,271 
Non-same store(384)— — — (384)
Total$36,587 $18,639 $7,890 $6,771 $69,887 
Same-store NOI$36,971 $18,639 $7,890 $6,771 $70,271 
Net effect of straight-line rents (2)
(800)205 67 37 (491)
Amortization of net above (below) market rents (3)
(500)(260)— — (760)
Net effect of other lease assets (4)
39 13 — — 52 
Tenant improvement reimbursements (5)
(259)(1)— — (260)
Same-store cash NOI (5)
$35,451 $18,596 $7,957 $6,808 $68,812 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on September 30, 2023 and 2022. 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 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, 2023 (1)
OfficeRetailMultifamilyMixed-UseTotal
Real estate rental revenue
Same-store$152,622 $77,671 $45,908 $49,957 $326,158 
Non-same store2,515 — — — 2,515 
Total155,137 77,671 45,908 49,957 328,673 
Real estate expenses
Same-store43,307 22,763 20,579 31,828 118,477 
Non-same store1,768 — — — 1,768 
Total45,075 22,763 20,579 31,828 120,245 
Net Operating Income (NOI)
Same-store109,315 54,908 25,329 18,129 207,681 
Non-same store747 — — — 747 
Total$110,062 $54,908 $25,329 $18,129 $208,428 
Same-store NOI$109,315 $54,908 $25,329 $18,129 $207,681 
Net effect of straight-line rents (2)
(4,083)241 121 44 (3,677)
Amortization of net above (below) market rents (3)
(1,398)(780)— — (2,178)
Net effect of other lease assets (4)
136 37 — — 173 
Tenant improvement reimbursements (5)
(595)(4)— — (599)
Same-store cash NOI (5)
$103,375 $54,402 $25,450 $18,173 $201,400 

Notes:
(1)    Same-store and non-same store classifications are determined based on properties held on September 30, 2023 and 2022. 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, 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,
20232022Change20232022Change
Cash Basis:
Office$35,451 $35,449 — %$103,375 $99,625 3.8 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI (2)(3)
$68,812 $67,563 1.8 %$201,400 $191,457 5.2 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2023 and 2022, the change in same-store cash NOI would be 1.9% and 5.1% 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,
20232022Change20232022Change
Cash Basis:
Office$35,177 $35,264 (0.2)%$102,528 $99,058 3.5 %
Retail18,596 17,492 6.3 54,402 51,012 6.6 
Multifamily7,957 7,957 — 25,450 23,953 6.2 
Mixed-Use6,808 6,665 2.1 18,173 16,867 7.7 
Same-store Cash NOI with Redevelopment (1)(2)
$68,538 $67,378 1.7 %$200,553 $190,890 5.1 %

Notes:
(1)    Excluding lease termination fees, for the three and nine months ended September 30, 2023 and 2022, the change in same-store cash NOI with redevelopment would be 1.7% and 5.0% 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, 2023
OfficeRetailMultifamilyMixed-UseTotal
Cash Basis:
Southern California$14,786 $8,897 $6,627 $— $30,310 
Northern California7,343 2,592 — — 9,935 
Hawaii— 3,211 — 6,808 10,019 
Oregon5,775 167 1,330 — 7,272 
Texas— 3,730 — — 3,730 
Washington7,421 — — — 7,421 
Total Cash NOI$35,325 $18,597 $7,957 $6,808 $68,687 


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, 2023
Cash NOI Breakdown
Portfolio Diversification by Geographic RegionPortfolio Diversification by Segment
    

https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-chart-ea8dfb938dc54381a97a.jpg    https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-chart-3f0d540ce7d64ade9eaa.jpg




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, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
   Income (2)
Reimbursements (3)
    Expenses (4)
  Adjustments (5)
    NOI (6)
Office Portfolio
La Jolla Commons$8,287 $312 $2,537 $(3,080)$— $8,056 
Torrey Reserve Campus (7)
6,796 47 426 (1,828)(874)4,567 
Torrey Point1,436 99 31 (393)(318)855 
Solana Crossing2,076 105 (624)(148)1,418 
The Landmark at One Market10,266 76 638 (3,516)— 7,464 
One Beach Street — — — (121)— (121)
First & Main2,776 202 779 (1,215)187 2,729 
Lloyd Portfolio (7)
4,202 407 188 (1,480)(164)3,153 
City Center Bellevue 6,208 478 (258)(1,467)(135)4,826 
Eastgate Office Park1,118 34 502 (687)(10)957 
Corporate Campus East III1,115 56 459 (467)(9)1,154 
Bel-Spring 520550 11 245 (274)(48)484 
Subtotal Office Portfolio$44,830 $1,731 $5,652 $(15,152)$(1,519)$35,542 
Retail Portfolio
Carmel Country Plaza$931 $29 $222 $(226)$(1)$955 
Carmel Mountain Plaza3,403 46 947 (1,024)87 3,459 
South Bay Marketplace625 124 233 (234)— 748 
Gateway Marketplace604 232 (265)(12)562 
Lomas Santa Fe Plaza1,661 21 314 (436)1,568 
Solana Beach Towne Centre1,659 18 553 (620)(5)1,605 
Del Monte Center 2,329 374 769 (1,192)26 2,306 
Geary Marketplace309 134 (158)— 286 
The Shops at Kalakaua276 17 51 (95)— 249 
Waikele Center3,178 441 912 (1,574)2,962 
Alamo Quarry Market3,684 281 1,289 (1,556)32 3,730 
Hassalo on Eighth - Retail 225 25 42 (125)— 167 
Subtotal Retail Portfolio$18,884 $1,380 $5,698 $(7,505)$140 $18,597 

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PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
AdditionalProperty
PropertyBilled ExpenseOperatingRentalCash
Property
Base Rent (1)
Income (2)
Reimbursements (3)
Expenses (4)
Adjustments (5)
NOI (6)
Multifamily Portfolio
Loma Palisades$4,135 $273 $— $(1,740)$(4)$2,664 
Imperial Beach Gardens1,179 72 — (462)— 789 
Mariner's Point578 34 — (247)— 365 
Santa Fe Park RV Resort570 39 — (316)— 293 
Pacific Ridge Apartments4,984 221 — (2,655)(34)2,516 
Hassalo on Eighth - Multifamily2,853 407 — (1,840)(90)1,330 
Subtotal Multifamily Portfolio$14,299 $1,046 $ $(7,260)$(128)$7,957 
Mixed-Use Portfolio
Waikiki Beach Walk - Retail$2,178 $1,211 $838 $(1,669)$(13)$2,545 
Waikiki Beach Walk - Embassy Suites™11,881 1,897 — (9,515)— 4,263 
Subtotal Mixed-Use Portfolio$14,059 $3,108 $838 $(11,184)$(13)$6,808 
Subtotal Development Properties$ $6 $ $(223)$ $(217)
Total$92,072 $7,271 $12,188 $(41,324)$(1,520)$68,687 
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, 2023 (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 $1.7 million for the three months ended September 30, 2023. Total abatements for our retail portfolio and mixed-use portfolio were minimal for the three months ended September 30, 2023. 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, 2023. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended September 30, 2023. 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, 2023.
(2)    Represents additional property-related income for the three months ended September 30, 2023, 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, 2023.
(4)    Represents property operating expenses for the three months ended September 30, 2023. Property operating expenses includes all rental expenses, except non cash rent expense.
(5)    Represents various rental adjustments related to base rent (deferrals, abatements, and tenant improvement reimbursements).
(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 abatement were both $0.4 million for the three months ended September 30, 2023.


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SEGMENT CAPITAL EXPENDITURES
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(Unaudited, amounts in thousands)Three Months Ended September 30, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$3,127 $6,219 $9,346 $953 $5,806 $16,105 
Retail Portfolio844 784 1,628 — — 1,628 
Multifamily Portfolio— 1,977 1,977 — — 1,977 
Mixed-Use Portfolio286 1,146 1,432 — — 1,432 
Total$4,257 $10,126 $14,383 $953 $5,806 $21,142 
Nine Months Ended September 30, 2023
SegmentTenant Improvements and Leasing CommissionsMaintenance Capital ExpendituresTotal Tenant Improvements, Leasing Commissions and Maintenance Capital ExpendituresRedevelopment and ExpansionsNew DevelopmentTotal Capital Expenditures
Office Portfolio$12,939 $16,236 $29,175 $6,283 $21,184 $56,642 
Retail Portfolio4,476 1,322 5,798 5,798 
Multifamily Portfolio— 4,506 4,506 4,506 
Mixed-Use Portfolio469 2,813 3,282 3,282 
Total$17,884 $24,877 $42,761 $6,283 $21,184 $70,228 

Third Quarter 2023 Supplemental InformationPage
18

SUMMARY OF OUTSTANDING DEBT
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(Unaudited, amounts in thousands)Amount
Outstanding atAnnual Debt
DebtSeptember 30, 2023Interest Rate
Service (1)
Maturity Date
City Center Bellevue75,000 5.08 %3,874 October 1, 2027
Secured Notes Payable / Weighted Average (2)
$75,000 5.08 %$3,874 
Term Loan A (3)
$100,000 2.70 %$2,700 January 5, 2027
Term Loan B (4)
150,000 5.47 %8,340 January 5, 2025
Term Loan C (5)
75,000 5.47 %4,170 January 5, 2025
Series F Notes (6)
100,000 3.85 %103,024 July 19, 2024
Series B Notes 100,000 4.45 %4,450 February 2, 2025
Series C Notes 100,000 4.50 %4,500 April 1, 2025
Series D Notes (7)
250,000 3.87 %10,725 March 1, 2027
Series E Notes (8)
100,000 4.18 %4,240 May 23, 2029
Series G Notes (9)
150,000 3.88 %5,865 July 30, 2030
3.375% Senior Unsecured Notes (10)
500,000 3.38 %16,875 February 1, 2031
Unsecured Notes Payable / Weighted Average (11)
$1,625,000 3.96 %$164,889 
Unsecured Line of Credit (12)
$ 
Notes:
(1)    Includes interest and principal payments due over the next twelve months.
(2)    The Secured Notes Payable total does not include debt issuance costs, net of $0.35 million.
(3)    Term Loan A has a stated maturity of January 5, 2027, with no further extension options. Term Loan A accrues interest at a variable rate, which we fixed as part of an interest rate swap for an effective interest rate of 2.70%, subject to adjustments based on our consolidated leverage ratio.
(4)    On January 5, 2023, the fully-drawn borrowings on Term Loan B were increased from $100 million to $150 million and the maturity date was extended from March 1, 2023 to January 5, 2025, with one, twelve-month extension option. Prior thereto, we entered into forward starting interest rate swaps that are intended to fix the interest rate on the $150 million Term Loan B at approximately 5.47% for the first year of the extended term loan and 5.57% for the second year of the extended term loan, subject to adjustments based on our consolidated leverage ratio.
(5)    On January 5, 2023, the fully-drawn borrowings on Term Loan C were increased from $50 million to $75 million and the maturity date was extended from March 1, 2023 to January 5, 2025, with one, twelve-month extension option. Prior thereto, we entered into forward starting interest rate swaps that are intended to fix the interest rate on the $75 million Term Loan C at approximately 5.47% for the first year of the extended term loan and 5.57% for the second year of the extended term loan, subject to adjustments based on our consolidated leverage ratio.
(6)    $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity.
(7)    $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity.
(8)    $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity.
(9)    $150 million of 3.91% Senior Guaranteed Notes, Series G, due July 30, 2030. Net of the settlement of the treasury lock contract, the effective interest rate for the Series G Notes is approximately 3.88% through maturity.
(10)    $500 million of 3.375% Senior Unsecured Notes due February 1, 2031. Net of debt issuance discount, the effective interest rate for the 3.375% Notes is approximately 3.502% through maturity.
(11)    The Unsecured Notes Payable total does not include debt issuance costs and discounts, net of $10.7 million.
(12)    The unsecured revolving line of credit (the "Revolver Loan") has a capacity of $400 million plus an accordion feature that may allow us to increase the availability thereunder up to an additional $400 million, subject to meeting specified requirements and obtaining additional commitments from lenders. The Revolver Loan matures on January 5, 2026, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six-month period. The Revolver Loan currently accrues interest at SOFR, plus the applicable SOFR adjustment and a spread which ranges from 1.05%-1.50%, based on our consolidated leverage ratio. The Revolver Loan total does not include debt issuance costs, net of $1.5 million.
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MARKET CAPITALIZATION
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(Unaudited, amounts in thousands, except per share data)
Market dataSeptember 30, 2023
Common shares outstanding60,725 
Common units outstanding16,182 
Common shares and common units outstanding76,907 
Market price per common share$19.45 
Equity market capitalization$1,495,841 
Total debt$1,700,000 
Total market capitalization$3,195,841 
Less: Cash on hand$(89,968)
Total enterprise value$3,105,873 
Total unencumbered assets, gross$3,736,262 
Total debt/Total capitalization53.2 %
Total debt/Total enterprise value54.7 %
Net debt/Total enterprise value (1)
51.8 %
Total unencumbered assets, gross/Unsecured debt229.9 %
Quarter AnnualizedTrailing 12 Months
Total debt/Adjusted EBITDA (2)(3)
7.0 x6.8 x
Net debt/Adjusted EBITDA (1)(2)(3)
6.6 x6.4 x
Interest coverage ratio (4)
3.5 x3.8 x
Fixed charge coverage ratio (4)
3.5 x3.8 x
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Weighted Average Fixed Interest Rate202320242025202620272028202920302031
— %3.8 %5.0 %— %3.8 %— %4.2 %3.9 %3.4 %
Total Weighed Average Fixed Interest Rate:4.0%
Weighted Average Term to Maturity:4.4
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, 2023, 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 2023 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 2021December 20236.5% - 7.5%213,000—%2025$118,716$175,000
One Beach StreetSan Francisco, CAFebruary 2021July 2023TBD102,000—%2025$33,840$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 2023 Supplemental InformationPage
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PORTFOLIO DATA




Third Quarter 2023 Supplemental InformationPage
22

PROPERTY REPORT
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As of September 30, 2023Office 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, CA2008/2014724,648 99.0%$45,542,967 $63.48
Torrey Reserve CampusSan Diego, CA1996-2000/2014-2016/202114 547,035 92.126,599,196 52.80
Torrey PointSan Diego, CA2017 93,264 100.05,747,203 61.62
Solana CrossingSolana Beach, CA1982/2005224,009 84.48,513,424 45.03
The Landmark at One Market (7)
San Francisco, CA1917/2000422,426 100.041,072,918 97.23
One Beach StreetSan Francisco, CA1924/1972/1987/1992100,270 
First & MainPortland, OR2010 360,314 91.310,946,894 33.28
Lloyd PortfolioPortland, OR1940-2015547,864 86.416,737,179 35.36
City Center BellevueBellevue, WA1987496,357 86.125,155,316 58.86
Eastgate Office ParkBellevue, WA1985281,204 55.86,187,012 39.43
Corporate Campus East IIIBellevue, WA1986159,578 85.06,002,292 44.25
Bel-Spring 520Bellevue, WA198393,295 73.12,768,729 40.60
Subtotal/Weighted Average Office Portfolio (8)
39 4,050,264 86.8%$195,273,130 $55.54
Retail Properties
Carmel Country PlazaSan Diego, CA199178,098 89.8%$3,831,693 $54.64Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza (9)
San Diego, CA1994/201415 528,416 98.714,177,281 27.18At Home StoresDick's Sporting Goods, Sprouts Farmers Market, Nordstrom Rack, Total Wine
South Bay Marketplace (9)
San Diego, CA1997132,877 97.82,452,607 18.87Ross Dress for Less, Grocery Outlet
Gateway MarketplaceSan Diego, CA1997/2016127,861 100.02,581,072 20.19Hobby LobbySmart & Final, Aldi
Lomas Santa Fe PlazaSolana Beach, CA1972/1997208,297 98.06,689,420 32.77Vons, Home Goods
Solana Beach Towne CentreSolana Beach, CA1973/2000/200412 246,651 96.76,797,938 28.50Dixieline Probuild, Marshalls
Del Monte Center (9)
Monterey, CA1967/1984/200616 673,155 82.19,430,213 17.06Macy'sCentury Theatres, Whole Foods Market, H&M, Apple, Sephora, Williams-Sonoma
Geary MarketplaceWalnut Creek, CA201235,159 100.01,296,114 36.86Sprouts Farmers Market
The Shops at KalakauaHonolulu, HI1971/200611,671 77.71,105,775 121.94Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele CenterWaipahu, HI1993/2008418,047 100.012,816,074 30.66Lowe's, SafewayUFC Gym, OfficeMax, Old Navy
Alamo Quarry Market (9)
San Antonio, TX1997/199916 588,148 99.414,767,958 25.26Regal CinemasWhole Foods Market, Nordstrom Rack, Williams-Sonoma, Sephora, Home Goods
Hassalo on EighthPortland, OR201544,236 65.5953,516 32.91Providence Health & Services, Sola Salons
Subtotal/Weighted Average Retail Portfolio (8)
107 3,092,616 94.4%$76,899,661 $26.34
Total/Weighted Average Office and Retail Portfolio (8)
146 7,142,880 90.1%$272,172,791 $42.29

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PROPERTY REPORT (CONTINUED)
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As of September 30, 2023
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 93.3%$17,009,628 $2,772 
Imperial Beach GardensImperial Beach, CA1959/200826 160 95.04,808,556 $2,636 
Mariner's PointImperial Beach, CA198688 94.32,309,616 $2,319 
Santa Fe Park RV Resort (10)
San Diego, CA1971/2007-2008124 77.41,699,872 $1,476 
Pacific Ridge ApartmentsSan Diego, CA2013533 88.923,238,756 $4,087 
Hassalo on Eighth - Velomor Portland, OR2015177 87.03,003,696 $1,625 
Hassalo on Eighth - Aster Tower Portland, OR2015337 86.75,938,488 $1,694 
Hassalo on Eighth - Elwood Portland, OR2015143 88.12,427,120 $1,605 
Total/Weighted Average Multifamily Portfolio 121 2,110 89.5%$60,435,732 $2,667 
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 95.1 %$9,542,378 $106.83 Yard House, Roy's
Number
Year Built/ofAverageAverageRevenue per
Hotel PortionLocationRenovatedBuildingsUnits
Occupancy (11)
Daily Rate (11)
 Available Room (11)
Waikiki Beach Walk - Embassy Suites™Honolulu, HI2008/2014/2020369 89.3 %$392.16 $350.33 
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, 2023, including leases which may not have commenced as of September 30, 2023. Percentage leased for our multifamily properties includes total units rented and occupied as of September 30, 2023.
(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, 2023 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 $34,835,821 to our estimate of annual triple net operating expenses of $10,707,147 for an estimated annualized base rent on a modified gross lease basis of $45,542,968 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 $4,408,333 to our estimate of annual triple net operating expenses of $1,778,679 for an estimated annualized base rent on a modified gross lease basis of $6,187,012 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 $4,470,306 to our estimate of annual triple net operating expenses of $1,531,986 for an estimated annualized base rent on a modified gross lease basis of $6,002,292 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 $2,136,167 to our estimate of annual triple net operating expenses of $632,562 for an estimated annualized base rent on a modified gross lease basis of $2,768,729 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, 2023. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of September 30, 2023. 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, 2023 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 Portfolio67,283 $3,683,076 $54.74 $56.59 
Retail Portfolio32,863 $796,535 $24.24 $26.61 
Total Retail and Office Portfolio100,146 $4,479,611 $44.73 $42.98 
(a)    Office portfolio leases signed but not commenced of 16,467, 2,763, 38,510, and 9,543 square feet are expected to commence during the fourth quarter of 2023, first quarter of 2024, second quarter of 2024, and third quarter of 2024, respectively. Retail portfolio leases signed but not commenced of 3,701, 1,200, 25,837, and 2,125 square feet are expected to commence during the first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, 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, 2023 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, 2023, by square footage under lease as of September 30, 2023.
(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 $974,581 
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, 2023, the highest average monthly occupancy rate for this property was 96%, occurring in December 2022. The number of units at the Santa Fe Park RV Resort includes 120 RV spaces and four apartments.
(11)    Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2023, 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, 2023 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, 2023 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 2023 Supplemental InformationPage
25

OFFICE LEASING SUMMARY
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As of September 30, 2023
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 2023100%62,963 $59.45$55.57$244,588 7.0 %13.5 %7.6$4,785,515 $76.01
2nd Quarter 202312 100%119,307 $82.89$85.93$(362,425)(3.5)%4.5 %4.6$5,407,994 $45.33
1st Quarter 2023100%56,139 $60.18$54.67$309,262 10.1 %22.5 %5.2$2,731,132 $48.65
4th Quarter 202213 100%77,588 $46.90$40.65$485,400 15.4 %25.0 %4.0$1,107,926 $14.28
Total 12 months40 100%315,997 $65.35$63.21$676,825 3.4 %12.1 %5.2$14,032,567 $44.41
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 202329%27,388 $61.46$56.00$149,586 9.8 %12.7 %9.3$2,813,360 $102.72
2nd Quarter 202325%6,431 $40.42$32.86$48,626 23.0 %19.6 %3.8$194,677 $30.27
1st Quarter 202313%2,256 $46.80$37.98$19,899 23.2 %20.6 %5.3$128,811 $57.10
4th Quarter 20228%2,422 $53.96$48.83$12,430 10.5 %19.2 %3.2$85,558 $35.33
Total 12 months18%38,497 $56.61$50.63$230,541 11.8 %14.2 %7.8$3,222,406 $83.70
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 202371%35,575 $57.90$55.23$95,002 4.8 %14.2 %6.4$1,972,155 $55.44
2nd Quarter 202375%112,876 $85.31$88.95$(411,051)(4.1)%4.2 %4.7$5,213,317 $46.19
1st Quarter 202388%53,883 $60.74$55.37$289,363 9.7 %22.6 %5.2$2,602,321 $48.30
4th Quarter 202212 92%75,166 $46.67$40.38$472,970 15.6 %25.2 %4.0$1,022,368 $13.60
Total 12 months33 83%277,500 $66.56$64.95$446,284 2.5 %11.8 %4.8$10,810,161 $38.96
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 202310 87,081 $58.777.9$7,764,240 $89.16
2nd Quarter 202313 120,365 $82.504.6$5,410,110 $44.95
1st Quarter 202315 79,862 $56.364.9$3,613,519 $45.25
4th Quarter 202217 97,415 $47.635.0$3,029,309 $31.10
Total 12 months55 384,723 $62.875.5$19,817,178 $51.51
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)    Beginning Q4 2022, includes renewals at fixed contractual rates specified in the lease. For all periods prior to Q4 2022, renewals at fixed contractual rates specified in the lease were excluded.
Third Quarter 2023 Supplemental InformationPage
26

RETAIL LEASING SUMMARY
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
As of September 30, 2023
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 202325 100%131,839 $33.70$30.65$329,613 8.2 %18.7 %6.6$2,208,260 $16.75
2nd Quarter 202320 100%96,955 $34.14$33.18$93,178 2.9 %2.1 %4.7$10,000 $0.10
1st Quarter 202312 100%30,756 $48.74$44.50$130,496 9.5 %27.7 %6.2$428,200 $13.92
4th Quarter 202220 100%103,274 $32.13$28.11$414,341 14.3 %12.8 %4.2$415,000 $4.02
Total 12 months77 100%362,824 $34.65$31.78$967,628 8.4 %15.2 %5.4$3,061,460 $8.44
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 2023— — — — — — — 
2nd Quarter 2023— — — — — — — 
1st Quarter 20238%1,598 $40.5027.27 $21,135 48.5 %145.7 %
(6)
7.0$15,000 $9.39
4th Quarter 2022— — — — — — — 
Total 12 months1%1,598 $40.50$27.27$21,135 48.5 %145.7 %7.0$15,000 $9.39
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 202325 100%131,839 $33.70$30.65$329,613 8.2 %18.7 %6.6$2,208,260 $16.75
2nd Quarter 202320 100%96,955 $34.14$33.18$93,178 2.9 %2.1 %4.7$10,000 $0.10
1st Quarter 202311 92%29,158 $49.20$45.45$109,361 8.3 %22.7 %6.2$413,200 $14.17
4th Quarter 202220 100%103,274 $32.13$28.11$414,341 14.3 %12.8 %4.2$415,000 $4.02
Total 12 months76 99%361,226 $34.62$31.80$946,493 8.2 %14.6 %5.4$3,046,460 $8.43
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 202328 135,535 $34.306.6$2,446,835 $18.05
2nd Quarter 202321 121,955 $30.835.8$3,360,000 $27.55
1st Quarter 202316 35,589 $52.666.1$586,200 $16.47
4th Quarter 202229 146,288 $32.164.4$2,439,635 $16.68
Total 12 months94 439,367 $34.115.6$8,832,670 $20.10
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)    Beginning Q4 2022, includes renewals at fixed contractual rates specified in the lease. For all periods prior to Q4 2022, renewals at fixed contractual rates specified in the lease were excluded.
(6)    Prior tenants' rent was modified to cash-basis, therefore there is no straight-line rent for comparison.
Third Quarter 2023 Supplemental InformationPage
27

MULTIFAMILY LEASING SUMMARY
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
As of September 30, 2023
Lease Summary - Loma Palisades
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202351193.3%$17,009,628$2,772
2nd Quarter 202351093.1%$16,755,024$2,737
1st Quarter 202352295.3%$16,533,012$2,638
4th Quarter 202251794.3%$16,734,228$2,699
Lease Summary - Imperial Beach Gardens
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202315295.0%$4,808,556$2,636
2nd Quarter 202315496.3%$4,612,428$2,495
1st Quarter 202314791.9%$4,457,952$2,526
4th Quarter 202214691.3%$4,539,336$2,590
Lease Summary - Mariner's Point
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 20238394.3%$2,309,616$2,319
2nd Quarter 20238697.7%$2,353,596$2,281
1st Quarter 20238394.3%$2,358,588$2,369
4th Quarter 20228394.3%$2,202,696$2,212
Lease Summary - Santa Fe Park RV Resort
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 20239677.4%$1,699,872$1,476
2nd Quarter 202310887.1%$2,312,868$1,785
1st Quarter 202310181.5%$1,884,216$1,554
4th Quarter 202211996.0%$2,043,288$1,430
Lease Summary - Pacific Ridge Apartments
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202347488.9%$23,238,756$4,087
2nd Quarter 202336768.9%$17,518,836$3,975
1st Quarter 202349392.5%$22,314,864$3,772
4th Quarter 202247288.6%$20,721,768$3,657






Third Quarter 2023 Supplemental InformationPage
28

MULTIFAMILY LEASING SUMMARY (CONTINUED)
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg

As of September 30, 2023
Lease Summary - Hassalo on Eighth - Velomor
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202315487.0%$3,003,696$1,625
2nd Quarter 202315889.3%$3,088,440$1,628
1st Quarter 202316995.5%$3,120,420$1,538
4th Quarter 202216291.5%$2,980,404$1,534
Lease Summary - Hassalo on Eighth - Aster Tower
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202329286.7%$5,938,488$1,694
2nd Quarter 202330089.0%$5,894,628$1,638
1st Quarter 202330289.6%$6,220,644$1,717
4th Quarter 202231794.1%$6,193,788$1,628
Lease Summary - Hassalo on Eighth - Elwood
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 202312688.1%$2,427,120$1,605
2nd Quarter 202313090.9%$2,402,484$1,540
1st Quarter 202311983.2%$2,285,124$1,601
4th Quarter 202212184.6%$2,308,080$1,590
Total Multifamily Lease Summary
Number of Leased Units (1)
Percentage leased (1)
Annualized Base Rent (2)
Average Monthly Base Rent per Leased Unit (3)
Quarter
3rd Quarter 20231,88889.5%$60,435,732$2,667
2nd Quarter 20231,81385.9%$54,938,304$2,526
1st Quarter 20231,93691.8%$59,174,820$2,546
4th Quarter 20221,93791.8%$57,723,588$2,483

Notes:
(1)    Number of leased units and percentage leased for our multifamily properties includes total units rented and occupied 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 2023 Supplemental InformationPage
29

MIXED-USE LEASING SUMMARY
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
As of September 30, 2023
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 202389,32995.1%$9,542,378$107
2nd Quarter 202388,85694.6%$9,505,364$107
1st Quarter 202389,20695.0%$9,184,583$103
4th Quarter 202288,14193.8%$8,785,614$100
Lease Summary - Hotel Portion
Number of Leased Units
Average Occupancy (4)
Average Daily Rate (4)
Annualized Revenue per Available Room (4)
Quarter
3rd Quarter 202333089.3%$392$350
2nd Quarter 202331184.4%$370$312
1st Quarter 202330281.9%$368$302
4th Quarter 202226571.8%$380$273
Notes:
(1)    Percentage leased for mixed-use property includes square footage under leases as of September 30, 2023, including leases which may not have commenced as of September 30, 2023.
(2)    Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2023 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, 2023.
(4)    Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2023, 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 2023 Supplemental InformationPage
30

LEASE EXPIRATIONS
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
As of September 30, 2023
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 Month57,803 1.4 %0.8 %$7.7617,609 0.6 %0.2 %$43.205,699 6.1 %0.1 %$21.9881,111 1.1 %$16.45
202367,360 1.7 0.9 $38.5031,649 1.0 0.4 $35.675,588 5.9 0.1 $63.44104,597 1.4 $38.98
2024301,700 7.4 4.2 $47.95296,506 9.6 4.1 $31.519,669 10.3 0.1 $115.95607,875 8.4 $41.01
2025319,081 7.9 4.4 $39.75293,991 9.5 4.1 $29.2824,856 26.5 0.3 $86.40637,928 8.8 $36.74
2026388,376 9.6 5.4 $44.00281,923 9.1 3.9 $34.926,588 7.0 0.1 $157.87676,887 9.4 $41.33
2027405,820 10.0 5.6 $55.75441,862 14.3 6.1 $29.514,614 4.9 0.1 $135.37852,296 11.8 $42.58
2028392,179 

9.7 5.4 $61.36722,809 23.4 10.0 $18.478,820 9.4 0.1 $166.351,123,808 15.5 $34.60
2029865,016 21.4 12.0 $64.26307,755 10.0 4.3 $23.563,156 3.4 — $199.111,175,927 16.2 $53.97
2030274,913 

6.8 3.8 $41.6545,228 1.5 0.6 $36.62— — — 320,141 4.4 $40.94
2031158,800 3.9 2.2 $43.90119,558 3.9 1.7 $21.8914,965 15.9 0.2 114.34293,323 4.1 $38.52
203259,956 1.5 0.8 $40.07146,772 4.7 2.0 $28.25— — — 206,728 2.9 $31.68
Thereafter157,613 3.9 2.2 $64.97181,808 5.9 2.5 $28.365,374 5.7 0.1 60.00344,795 4.8 $45.59
Signed Leases Not Commenced67,283 1.7 0.9 32,863 1.1 0.5 — — — 100,146 1.4 
Available534,364 13.2 7.4 172,283 5.6 2.4 4,596 4.9 0.1 711,243 9.8 
Total (2)
4,050,264 100.0 %56.0 %$44.603,092,616 100.0 %42.7 %$24.9293,925 100.0 %1.3 %$101.607,236,805 100.0 %$36.93
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 Month57,803 1.4 %0.8 %$7.7617,609 0.6 %0.2 %$43.205,699 6.1 %0.1 %$21.9881,111 1.1 %$16.45
202348,872 1.2 0.7 $37.9427,156 0.9 0.4 $29.105,588 5.9 0.1 $63.4481,616 1.1 $36.74
2024112,196 2.8 1.6 $53.41129,042 4.2 1.8 $37.649,669 10.3 0.1 $115.95250,907 3.5 $47.71
2025107,619 2.7 1.5 $45.87121,230 3.9 1.7 $28.9213,298 14.2 0.2 $124.13242,147 3.3 $41.68
202675,081 1.9 1.0 $38.8769,920 2.3 1.0 $49.276,588 7.0 0.1 $157.87151,589 2.1 $48.84
202785,563 2.1 1.2 $51.87175,036 5.7 2.4 $30.203,703 3.9 0.1 $149.49264,302 3.7 $38.89
2028113,582 2.8 1.6 $45.19109,542 3.5 1.5 $30.501,906 2.0 — $222.36225,030 3.1 $39.54
2029190,376 4.7 2.6 $44.7497,754 3.2 1.4 $28.933,156 3.4 — $199.11291,286 4.0 $41.11
2030235,972 5.8 3.3 $36.2768,423 2.2 0.9 $35.2611,558 12.3 0.2 $43.00315,953 4.4 $36.30
2031226,060 5.6 3.1 $50.1056,861 1.8 0.8 $46.9714,965 15.9 0.2 $114.34297,886 4.1 $52.73
2032281,153 6.9 3.9 $50.33192,842 6.2 2.7 $27.84911 1.0 — $78.00474,906 6.6 $41.25
Thereafter1,914,340 47.3 26.5 $58.691,822,055 58.9 25.2 $22.8512,288 13.1 0.2 $111.153,748,683 51.8 $41.44
Signed Leases Not Commenced67,283 1.7 0.9 32,863 1.1 0.5 — — — 100,146 1.4 
Available534,364 13.2 7.4 172,283 5.6 2.4 4,596 4.9 0.1 711,243 9.8 
Total (2)
4,050,264 100.0 %56.0 %$44.603,092,616 100.0 %42.7 %$24.9293,925 100.0 %1.3 %$101.607,236,805 100.0 %$36.93

Third Quarter 2023 Supplemental InformationPage
31

LEASE EXPIRATIONS (CONTINUED)
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
As of September 30, 2023
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, 2023 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 2023 Supplemental InformationPage
32

PORTFOLIO LEASED STATISTICS
https://cdn.kscope.io/5088c07d883f474f5eea0295e238139c-image6a.jpg
At September 30, 2023At September 30, 2022
TypeSize
Leased (1)
Leased %Size
Leased (1)
Leased %
Overall Portfolio(2) Statistics
Office Properties (square feet)
4,050,264 3,515,900 86.8 %3,988,222 3,618,297 90.7 %
Retail Properties (square feet) 3,092,616 2,920,333 94.4 %3,092,616 2,851,236 92.2 %
Multifamily Properties (units)2,110 1,888 89.5 %2,112 1,964 93.0 %
Mixed-Use Properties (square feet)93,925 89,329 95.1 %93,925 89,100 94.9 %
Mixed-Use Properties (units)369 315 
(3)
85.3 %369 290 
(3)
78.6 %
Same-Store(2) Statistics
Office Properties (square feet)(4)
3,918,058 3,515,900 89.7 %3,887,952 3,618,297 93.1 %
Retail Properties (square feet)3,092,616 2,920,333 94.4 %3,092,616 2,851,236 92.2 %
Multifamily Properties (units)2,110 1,888 89.5 %2,112 1,964 93.0 %
Mixed-Use Properties (square feet)93,925 89,329 95.1 %93,925 89,100 94.9 %
Mixed-Use Properties (units)369 315 
(3)
85.3 %369 290 
(3)
78.6 %

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 and occupied as of that date.
(2)    See Glossary of Terms.
(3)    Represents average occupancy for the nine months ended September 30, 2023 and 2022.
(4)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.



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TOP TENANTS - OFFICE
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As of September 30, 2023
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 %$26,420,853 13.5 %9.4 %
LPL Holdings, Inc.La Jolla Commons4/30/2029421,001 10.4 5.8 19,886,757 10.2 7.1 
Autodesk, Inc. (1)The Landmark at One Market12/31/2027
12/31/2028
138,615 3.4 1.9 13,670,631 7.0 4.8 
Smartsheet, Inc. (2)City Center Bellevue12/31/2026
4/30/2029
123,041 3.0 1.7 6,906,241 3.5 2.4 
Illumina, Inc.La Jolla Commons10/31/202773,176 1.8 1.0 4,770,535 2.4 1.7 
VMware, Inc. City Center Bellevue3/31/202875,000 1.9 1.0 4,528,458 2.3 1.6 
Clearesult Operating, LLCFirst & Main4/30/2025101,848 2.5 1.4 3,483,504 1.8 1.2 
Industrious (3)City Center Bellevue4/30/2033
3/31/2034
55,256 1.4 0.8 3,111,931 1.6 1.1 
State of Oregon: Department of Environmental QualityLloyd Portfolio10/31/203187,787 2.2 1.2 2,935,024 1.5 1.0 
10 Top technology tenant (4)La Jolla Commons8/31/203040,800 1.0 0.6 2,521,440 1.3 0.9 
Top 10 Office Tenants Total1,369,722 33.9 %18.9 %$88,235,374 45.1 %31.2 %

Notes:
(1)     For Autodesk, Inc., 45,795 and 92,820 of leased square feet have a lease expiration of December 31, 2027 and 2028, 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 Industrious, 18,090 and 37,166 of leased square feet have a lease expiration of April 30, 2033 and March 31, 2034, respectively.
(4)    Name withheld per tenant's request.



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TOP TENANTS - RETAIL
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As of September 30, 2023
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 %2.1 %$4,092,000 5.3 %1.5 %
Sprouts Farmers Market (1)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 2.8 0.8 
Nordstrom Rack (2)Carmel Mountain Plaza,
Alamo Quarry Market
9/30/2027
10/31/2027
69,047 2.2 1.0 1,804,269 2.3 0.6 
Marshalls (3)Solana Beach Towne Centre,
Carmel Mountain Plaza
1/31/2025
1/31/2029
68,055 2.2 0.9 1,728,228 2.2 0.6 
VonsLomas Santa Fe Plaza12/31/202749,895 1.6 0.7 1,609,086 2.1 0.6 
At Home StoresCarmel Mountain Plaza7/31/2029107,870 3.5 1.5 1,384,552 1.8 0.5 
Old Navy (4)Alamo Quarry Market
Southbay Marketplace
Waikele Center
9/30/2024
4/30/2028
7/31/2030
52,936 1.7 0.7 1,274,460 1.7 0.5 
SafewayWaikele Center1/31/204050,050 1.6 0.7 1,201,200 1.6 0.4 
Michaels (5)Alamo Quarry Market
Carmel Mountain Plaza
2/29/2028
1/31/2029
46,850 1.5 0.6 1,124,218 1.5 0.4 
10 Inspire ChurchWaikele Center1/31/202750,000 1.6 0.7 1,074,647 1.4 0.4 
Top 10 Retail Tenants Total721,134 23.2 %9.9 %$17,413,847 22.7 %6.3 %


Notes:
(1)    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.
(2)     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 Market), 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, 15,021, 20,000 and 17,915 of leased square feet have a lease expiration of September 30, 2024 (Alamo Quarry Market), April 30, 2028 (Southbay Marketplace) and July 31, 2030 (Waikele Center), respectively.
(5)    For Michaels, 23,881 and 22,969 of leased square feet have a lease expiration of February 29, 2028 (Alamo Quarry Market) and January 31, 2029 (Carmel Mountain Plaza), 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, 2023 and 2022 is as follows:
    
Three Months Ended Nine Months Ended
September 30,September 30,
2023202220232022
Net income$15,135 $16,369 $51,198 $43,471 
Depreciation and amortization 29,868 31,729 89,592 93,228 
Interest expense, net 16,325 14,454 48,422 43,667 
Interest income(614)(60)(1,507)(117)
Income tax expense293 240 750 640 
EBITDA$61,007 $62,732 $188,455 $180,889 

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,
2023202220232022
EBITDA$61,007 $62,732 $188,455 $180,889 
Pro forma adjustments— — — — 
Adjusted EBITDA$61,007 $62,732 $188,455 $180,889 

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, 2023 and 2022 is as follows:
Three Months Ended Nine Months Ended
September 30,September 30,
2023202220232022
Net income$15,135 $16,369 $51,198 $43,471 
Depreciation and amortization 29,868 31,729 89,592 93,228 
Interest expense, net 16,325 14,454 48,422 43,667 
Interest income(614)(60)(1,507)(117)
Income tax expense293 240 750 640 
EBITDAre
$61,007 $62,732 $188,455 180,889 

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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 income2023202220232022
Total NOI$69,887 $71,108 $208,428 $204,019 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Operating Income$31,139 $31,003 $92,348 $87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income$15,135 $16,369 $51,198 $43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership(3,168)(3,442)(10,733)(9,130)
Net income attributable to American Assets Trust, Inc. stockholders$11,778 $12,772 $39,897 $33,877 

Overall Portfolio: Includes all operating properties owned by us as of September 30, 2023.


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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, 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 Income2023202220232022
Total Cash NOI$68,687 $67,746 $202,488 $195,302 
Non-cash revenue and other operating expenses (1)
1,200 3,362 5,940 8,717 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Operating income$31,139 $31,003 $92,348 $87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income$15,135 $16,369 $51,198 $43,471 
(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, 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 (2)
September 30,September 30,
Reconciliation of Same-Store Cash NOI Comparison with Redevelopment to Operating Income2023202220232022
Same-Store Cash NOI$68,812 $67,563 $201,400 $191,457 
Redevelopment Cash NOI (3)
(274)(185)(847)(567)
Same-Store Cash NOI with Redevelopment68,538 67,378 200,553 190,890 
Tenant improvement reimbursements260 336 599 3,470 
Total Same-Store Cash NOI with Redevelopment$68,798 $67,714 $201,152 $194,360 
Non-Same Store Cash NOI(111)32 1,336 942 
Total Cash NOI$68,687 $67,746 $202,488 $195,302 
Non-cash revenue and other operating expenses (4)
1,200 3,362 5,940 8,717 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Operating income$31,139 $31,003 $92,348 $87,661 
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income$15,135 $16,369 $51,198 $43,471 
(1)    Same-store portfolio includes Bel-Spring 520 which was acquired on March 8, 2022. Same-store portfolio excludes (i) One Beach Street due to significant redevelopment activity; (ii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iii) land held for development.
(2)    Same-store portfolio excludes (i) One Beach Street, due to significant redevelopment activity; (ii) Bel-Spring 520 which was acquired on March 8, 2022; (iii) the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and (iv) land held for development.
(3)    Redevelopment property refers to One Beach Street, the 710 building at Lloyd District Portfolio which was placed into operations on November 1, 2022, approximately one year after completing renovations of the building and Lloyd Portfolio - Land.
(4)    Represents adjustments related to the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances; the amortization of above (below) market rents, the amortization of lease incentives paid to tenants, the amortization of other lease intangibles 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, 2023 to 2022September 30, 2023 to 2022
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 Portfolio (1)
XXXXXX
City Center BellevueXXXX
Eastgate Office ParkXXXX
Corporate Campus East IIIXXXX
Bel-Spring 520XXX
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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(1)     The 710 building at Lloyd District Portfolio is considered non same-store and same-store redevelopment, since it was placed into operations on November 1, 2022, approximately one year after completing renovations of the building,

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


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