SEC Filing - American Assets Trust, Inc.

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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 30, 2018

_________________________

American Assets Trust, Inc.

(Exact name of registrant as specified in its charter)

_________________________



Maryland (State or other jurisdiction of incorporation)	001-35030 (Commission File No.)		27-3338708 (I.R.S. Employer Identification No.)
11455 El Camino Real, Suite 200 San Diego, California 92130 (Address of principal executive offices)		92130 (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:



o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
	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 o
	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. o


Item 2.02	Results of Operations and Financial Condition.

On October 30, 2018, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ending September 30, 2018. Also on October 30, 2018, the Company made available on its website at www.americanassetstrust.com certain supplemental information concerning the Company’s financial results and operations for the quarter ending September 30, 2018. 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, 2018 and made available on its website certain supplement information relating thereto.

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


Item 9.01	Financial Statements and Exhibits.

(d) Exhibits:

The following exhibits are filed herewith:



Exhibit Number		Exhibit Description
99.1**		Press release issued by American Assets Trust, Inc. on October 30, 2018.
99.2**		American Assets Trust, Inc. Supplemental Information for the quarter ended September 30, 2018.

_____________________

** Furnished herewith

SIGNATURES

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



	American Assets Trust, Inc.
	By:	/s/ Robert F. Barton
	Robert F. Barton Executive Vice President, CFO
October 30, 2018

Exhibit

https://cdn.kscope.io/3a12f898255625a2ab8311e58632e4dd-aat2015q4a11.jpg

American Assets Trust, Inc. Reports Third Quarter 2018 Financial Results

Net income available to common stockholders of $10.4 million and $13.0 million for the three and nine months ended September 30, 2018, respectively, or $0.22 and $0.28 per diluted share, respectively

Funds From Operations per diluted share increased 2% and 11% year-over-year for the three and nine months ended September 30, 2018, respectively

Same-store cash NOI increased 1% and 4% year-over-year for the three and nine months ended September 30, 2018, respectively

SAN DIEGO, California - 10/30/18 - American Assets Trust, Inc. (NYSE: AAT) (the “company”) today reported financial results for its third quarter ended September 30, 2018.

Third Quarter Highlights


•	Net income available to common stockholders of $10.4 million and $13.0 million for the three and nine months ended September 30, 2018, respectively, or $0.22 and $0.28 per diluted share, respectively


•	Funds From Operations increased 2% and 11% year-over-year to $0.53 and $1.62 for the three and nine months ended September 30, 2018, respectively, compared to the same periods in 2017


•	Quarterly dividend will increase 4% to $0.28 per share of common stock in the fourth quarter of 2018 compared to the third quarter of 2018


•	Increasing 2018 annual guidance $0.02 to a revised midpoint of $2.10 with a range of $2.09 to $2.11 of FFO per diluted share, a 9% increase over 2017 FFO per diluted share


•	Introducing 2019 annual guidance midpoint of $2.16 with a range of $2.12 to $2.20 of FFO per diluted share, a 3% increase over the revised 2018 annual guidance midpoint; excluding 2018 lease termination fees the increase is 6% over the revised 2018 annual guidance midpoint


•	Same-store cash NOI increased 1% and 4% year-over-year for the three and nine months ended September 30, 2018, respectively, compared to the same periods in 2017


•	Leased approximately 95,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 13% and 11%, respectively, during the three months ended September 30, 2018


•	Leased approximately 65,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 22% and 19%, respectively, during the three months ended September 30, 2018

Financial Results

Net income attributable to common stockholders was $10.4 million, or $0.22 per basic and diluted share for the three months ended September 30, 2018 compared to net income of $9.1 million, or $0.19 per basic and diluted share for the three months ended September 30, 2017. For the nine months ended September 30, 2018, net income attributable to common stockholders was $13.0 million, or $0.28 per basic and diluted share compared to $22.0 million, or $0.47 per basic and diluted share for the nine months ended September 30, 2017. The year-over-year decrease is due to an increase in depreciation expense at Waikele Center attributed to the redevelopment of the Kmart space.

During the third quarter of 2018, the company generated funds from operations (“FFO”) for common stockholders of $34.1 million, or $0.53 per diluted share, compared to $33.6 million, or $0.52 per diluted share, for the third quarter of 2017. For the nine months ended September 30, 2018, the company generated FFO for common stockholders of $103.8 million, or $1.62 per diluted share, compared to $93.6 million, or $1.46 per diluted share, for the nine months ended September 30, 2017. The increase in FFO from the corresponding periods in 2017 was primarily due to the

acquisitions of the Pacific Ridge Apartments on April 28, 2017, the acquisition of Gateway Marketplace on July 6, 2017, and increase in lease termination fees at Lloyd District Portfolio and Torrey Point.

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

Leasing

The portfolio leased status as of the end of the indicated quarter was as follows:



	September 30, 2018	June 30, 2018	September 30, 2017
Total Portfolio
Retail	98.5%	96.7%	97.0%
Office	91.4%	93.8%	89.9%
Multifamily ⁽³⁾	92.3%	93.9%	91.3%
Mixed-Use:
Retail	95.9%	95.9%	93.7%
Hotel	93.6%	94.0%	92.7%

Same-Store Portfolio
Retail ⁽¹⁾	98.3%	97.9%	98.2%
Office ⁽²⁾	93.5%	93.8%	89.9%
Multifamily ⁽³⁾	92.3%	93.9%	91.3%
Mixed-Use:
Retail	95.9%	95.9%	93.7%
Hotel	93.6%	94.0%	92.7%

(1) Same-store retail leased percentages includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store retail leased percentages exclude Gateway Marketplace, which was acquired on July 6, 2017, and Waikele Center, due to significant redevelopment activity.

(2) Same-store office leased percentages exclude Torrey Point, which was placed into operations and became available for occupancy in August 2018.

(3) Excluding the 21 off-line units associated with the Loma Palisades repositioning, total multifamily and same-store multifamily leased percentage was 92.3% at September 30, 2017.

During the third quarter of 2018, the company signed 29 leases for approximately 236,800 square feet of retail and office space, as well as 635 multifamily apartment leases. Renewals accounted for 90% of the comparable retail leases, 56% of the comparable office leases and 54% of the residential leases.

Retail and Office

On a comparable space basis (i.e. leases for which there was a former tenant) during the third quarter 2018 and trailing four quarters ended September 30, 2018, our retail and office leasing spreads are shown below:



		Number of Leases Signed	Comparable Leased Sq. Ft.	Average Cash Basis % Change Over Prior Rent		Average Cash Contractual Rent Per Sq. Ft.	Prior Average Cash Contractual Rent Per Sq. Ft.	Straight-Line Basis % Change Over Prior Rent
Retail	Q3 2018	10	65,000		18.8%	$30.44	$25.63		21.7%
Retail	Last 4 Quarters	58	219,000		10.1%	$40.46	$36.75		21.7%

Office	Q3 2018	9	95,000		11.0%	$38.40	$34.59		12.6%
Office	Last 4 Quarters	45	436,000		12.5%	$52.72	$46.85		26.3%

Multifamily

The average monthly base rent per leased unit for same-store properties for the three months ended September 30, 2018 was $2,053 compared to an average monthly base rent per leased unit of $1,994 for the three months ended September 30, 2017, an increase of approximately 3.0%.

Same-Store Cash Net Operating Income

For the three and nine months ended September 30, 2018, same-store cash NOI increased 1.3% and 3.9%, respectively, compared to the three and nine months ended September 30, 2017. The same-store cash NOI by segment was as follows (in thousands):



	Three Months Ended ⁽¹⁾							Year Ended ⁽²⁾
	September 30,							September 30,
	2018		2017		Change			2018		2017		Change
Cash Basis:
Retail	$	15,369	$	14,608	5.2		%	$	44,864	$	42,655	5.2	%
Office	17,384		17,919		(3.0	)		56,072		53,664		4.5
Multifamily	7,741		7,080		9.3			15,079		14,893		1.2
Mixed-Use	6,696		6,997		(4.3	)		18,638		18,327		1.7
Same-store Cash NOI ⁽³⁾	$	47,190	$	46,604	1.3		%	$	134,653	$	129,539	3.9	%

(1)

Same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store portfolio excludes (i) Gateway Marketplace, which was acquired on July 6, 2017; (ii) Waikele Center due to significant redevelopment activity; (iii) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (iv) land held for development.

(2)

Same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store portfolio excludes (i) the Pacific Ridge Apartments, which was acquired on April 28, 2017; (ii) Gateway Marketplace, which was acquired on July 6, 2017; (iii) Waikele Center due to significant redevelopment activity; (iv) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (v) land held for development.


(3)	Excluding lease termination fees for the three and nine months ended September 30, 2018, same-store cash NOI would be 0.6% and 1.6%, respectively.

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

Balance Sheet and Liquidity

At September 30, 2018, the company had gross real estate assets of $2.6 billion and liquidity of $384.2 million, comprised of cash and cash equivalents of $56.2 million and $328.0 million of availability on its line of credit.

Dividends

The company declared dividends on its shares of common stock of $0.27 per share for the third quarter of 2018. The dividends were paid on September 27, 2018.

In addition, the company has declared a dividend on its common stock of $0.28 per share for the fourth quarter of 2018, which is a 4% increase over the prior quarterly dividend per share. The dividend will be paid on December 27, 2018 to stockholders of record on December 13, 2018.

Guidance

The company increased its guidance range for full year 2018 FFO per diluted share of $2.09 to $2.11 per share from the prior guidance range of $2.05 to $2.10 per share.

Additionally, the company is introducing its initial guidance range for full year 2019 FFO per diluted share of $2.12 to $2.20 per share, an increase of 3% from the revised 2018 annual guidance midpoint; excluding 2018 lease termination fees the increase is 6% over the revised 2018 annual guidance midpoint. The company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, future debt financings or repayments. Management will discuss the company’s guidance in more detail on tomorrow’s earnings call.

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

Conference Call

The company will hold a conference call to discuss the results for the third quarter of 2018 on Wednesday, October 31, 2018 at 8:00 a.m. Pacific Time (“PT”). To participate in the event by telephone, please dial 1-877-868-5513 and use the pass code 1265599. A telephonic replay of the conference call will be available beginning at 2:00 p.m. PT on Wednesday, October 31, 2018 through Wednesday, November 7, 2018. To access the replay, dial 1-855-859-2056 and use the pass code 1265599. 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 2018 results may be found in the “Investor Relations” section of the company's website at www.americanassetstrust.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Financial Information

American Assets Trust, Inc.

Consolidated Balance Sheets

(In Thousands, Except Share Data)



	September 30, 2018			December 31, 2017
Assets	(unaudited)
Real estate, at cost
Operating real estate	$	2,540,319		$	2,536,474
Construction in progress		60,375			68,272
Held for development		9,392			9,392
		2,610,086			2,614,138
Accumulated depreciation		(574,519	)		(537,431	)
Net real estate		2,035,567			2,076,707
Cash and cash equivalents		56,220			82,610
Restricted cash		9,918			9,344
Accounts receivable, net		8,345			9,869
Deferred rent receivables, net		40,305			38,973
Other assets, net		46,421			42,361
Total assets	$	2,196,776		$	2,259,864
Liabilities and equity
Liabilities:
Secured notes payable, net	$	204,818		$	279,550
Unsecured notes payable, net		1,045,635			1,045,470
Unsecured line of credit, net		20,235			—
Accounts payable and accrued expenses		54,575			38,069
Security deposits payable		8,748			6,570
Other liabilities and deferred credits, net		47,274			46,061
Total liabilities		1,381,285			1,415,720
Commitments and contingencies
Equity:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 47,222,121 and 47,204,588 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively		473			473
Additional paid-in capital		920,324			919,066
Accumulated dividends in excess of net income		(122,293	)		(97,280	)
Accumulated other comprehensive income		13,915			11,451
Total American Assets Trust, Inc. stockholders' equity		812,419			833,710
Noncontrolling interests		3,072			10,434
Total equity		815,491			844,144
Total liabilities and equity	$	2,196,776		$	2,259,864

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,
	2018			2017			2018			2017
Revenue:
Rental income	$	78,079		$	78,135		$	231,172		$	221,100
Other property income	4,428			4,204			17,090			12,137
Total revenue	82,507			82,339			248,262			233,237
Expenses:
Rental expenses	21,383			21,177			62,685			60,877
Real estate taxes	8,787			8,535			25,961			23,975
General and administrative	5,176			4,958			16,139			15,171
Depreciation and amortization	19,886			21,192			86,033			63,360
Total operating expenses	55,232			55,862			190,818			163,383
Operating income	27,275			26,477			57,444			69,854
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other income (expense), net	(125		)	(99		)	(64		)	403
Net income	14,271			12,505			17,993			30,401
Net income attributable to restricted shares	(71		)	(60		)	(215		)	(181		)
Net income attributable to unitholders in the Operating Partnership	(3,806		)	(3,351		)	(4,765		)	(8,220		)
Net income attributable to American Assets Trust, Inc. stockholders	$	10,394		$	9,094		$	13,013		$	22,000

Net income per share
Basic income attributable to common stockholders per share	$	0.22		$	0.19		$	0.28		$	0.47
Weighted average shares of common stock outstanding - basic	46,959,752			46,898,086			46,945,095			46,650,403

Diluted income attributable to common stockholders per share	$	0.22		$	0.19		$	0.28		$	0.47
Weighted average shares of common stock outstanding - diluted	64,137,360			64,093,066			64,133,584			64,081,697

Dividends declared per common share	$	0.27		$	0.26		$	0.81		$	0.78

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, 2018			September 30, 2018
Funds From Operations (FFO)
Net income	$	14,271		$	17,993
Depreciation and amortization of real estate assets		19,886			86,033
FFO, as defined by NAREIT	$	34,157		$	104,026
Less: Nonforfeitable dividends on incentive stock awards		(70	)		(211	)
FFO attributable to common stock and units	$	34,087		$	103,815
FFO per diluted share/unit	$	0.53		$	1.62
Weighted average number of common shares and units, diluted		64,137,727			64,133,629

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,
	2018			2017			2018			2017
Same-store cash NOI	$	47,190		$	46,604		$	134,653		$	129,539
Non-same-store cash NOI	2,924			4,288			20,545			15,648
Tenant improvement reimbursements ⁽³⁾	263			565			4,220			739
Cash NOI	$	50,377		$	51,457		$	159,418		$	145,926
Non-cash revenue and other operating expenses ⁽⁴⁾	1,960			1,170			198			2,459
General and administrative	(5,176		)	(4,958		)	(16,139		)	(15,171		)
Depreciation and amortization	(19,886		)	(21,192		)	(86,033		)	(63,360		)
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other income, net	(125		)	(99		)	(64		)	403
Net income	$	14,271		$	12,505		$	17,993		$	30,401

Number of properties included in same-store analysis	24			22			23			21

(1)

Same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store portfolio excludes (i) Gateway Marketplace, which was acquired on July 6 2017; (ii) Waikele Center, due to significant redevelopment activity; (iii) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (iv) land held for development.

(2)

Same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store portfolio excludes (i) the Pacific Ridge Apartments, which was acquired on April 28, 2017; (ii) Gateway Marketplace, which was acquired on July 6 2017; (iii) Waikele Center, due to significant redevelopment activity; (iv) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (v) land held for development.


(3)	Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.

(4)

Represents adjustments related to the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances; the amortization of above (below) market rents, the amortization of lease incentives paid to tenants, the amortization of other lease intangibles, lease termination fees at City Center Bellevue, and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail.

Reported results are preliminary and not final until the filing of the company's Form 10-Q with the Securities and Exchange Commission and, therefore, remain subject to adjustment.

Use of Non-GAAP Information

Funds from Operations

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

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

Cash Net Operating Income

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

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

About American Assets Trust, Inc.

American Assets Trust, Inc. (the “company”) is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 years of experience in acquiring, improving, developing and managing premier retail, office and residential properties throughout the United States in some of the nation’s most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington, Texas and Hawaii. The company's retail portfolio comprises approximately 3.1 million rentable square feet, and its office portfolio comprises approximately 2.7 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes. For additional information, please visit www.americanassetstrust.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. 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

Exhibit




	THIRD QUARTER 2018
	Supplemental Information

https://cdn.kscope.io/3a12f898255625a2ab8311e58632e4dd-coverpicture2018q3.jpg






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

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

with favorable supply/demand characteristics








	Retail	Office	Multifamily		Mixed-Use
Market	Square Feet	Square Feet	Units		Square Feet	Suites
San Diego	1,323,551	821,924	1,455	(1)	—	—

San Francisco	35,156	516,985	—		—	—

Oahu	429,718	—	—		96,707	369

Monterey	673,572	—	—		—	—

San Antonio	588,970	—	—		—	—

Portland	44,153	819,841	657		—	—

Seattle	—	495,800	—		—	—

Total	3,095,120	2,654,550	2,112		96,707	369



		Square Feet		%
Note: Circled areas represent all markets in which American Assets Trust, Inc. currently owns and operates its real estate properties. Size of circle denotes approximation of square feet / units. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.	Retail	3.1	million	53%
	Office	2.7	million	47%
Data is as of September 30, 2018.	Totals	5.8	million
(1) Includes 122 RV spaces.



Third Quarter 2018 Supplemental Information	Page 2




INDEX



	THIRD QUARTER 2018 SUPPLEMENTAL INFORMATION
1.	FINANCIAL HIGHLIGHTS
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution	7
	Corporate Guidance	9
	Same-Store Net Operating Income (NOI)	10
	Same-Store Cash NOI Comparison excluding Redevelopment	12
	Same-Store Cash NOI Comparison with Redevelopment	13
	Cash NOI By Region	14
	Cash NOI Breakdown	15
	Property Revenue and Operating Expenses	16
	Segment Capital Expenditures	18
	Summary of Outstanding Debt	19
	Market Capitalization	20
	Summary of Development Opportunities	21
2.	PORTFOLIO DATA
	Property Report	23
	Retail Leasing Summary	25
	Office Leasing Summary	26
	Multifamily Leasing Summary	27
	Mixed-Use Leasing Summary	29
	Lease Expirations	30
	Portfolio Leased Statistics	32
	Top Tenants - Retail	33
	Top Tenants - Office	34
3.	APPENDIX
	Glossary of Terms	36

This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; our failure to generate sufficient cash flows to service our outstanding indebtedness; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; difficulties in identifying properties to acquire and completing acquisitions; difficulties in completing dispositions; our failure to successfully operate acquired properties and operations; our inability to develop or redevelop our properties due to market conditions; fluctuations in interest rates and increased operating costs; risks related to joint venture arrangements; our failure to obtain necessary outside financing; on-going litigation; general economic conditions; financial market fluctuations; risks that affect the general retail, office, multifamily and mixed-use environment; the competitive environment in which we operate; decreased rental rates or increased vacancy rates; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for us to continue to qualify as a REIT for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.

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.



Third Quarter 2018 Supplemental Information	Page 3

FINANCIAL HIGHLIGHTS



Third Quarter 2018 Supplemental Information	Page 4




CONSOLIDATED BALANCE SHEETS



(Amounts in thousands, except shares and per share data)	September 30, 2018			December 31, 2017
	(unaudited)			(audited)
ASSETS
Real estate, at cost
Operating real estate	$	2,540,319		$	2,536,474
Construction in progress	60,375			68,272
Held for development	9,392			9,392
	2,610,086			2,614,138
Accumulated depreciation	(574,519		)	(537,431		)
Net real estate	2,035,567			2,076,707
Cash and cash equivalents	56,220			82,610
Restricted cash	9,918			9,344
Accounts receivable, net	8,345			9,869
Deferred rent receivable, net	40,305			38,973
Other assets, net	46,421			42,361
TOTAL ASSETS	$	2,196,776		$	2,259,864
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable, net	$	204,818		$	279,550
Unsecured notes payable, net	1,045,635			1,045,470
Unsecured line of credit, net	20,235			—
Accounts payable and accrued expenses	54,575			38,069
Security deposits payable	8,748			6,570
Other liabilities and deferred credits, net	47,274			46,061
Total liabilities	1,381,285			1,415,720
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 47,222,121 and 47,204,588 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	473			473
Additional paid in capital	920,324			919,066
Accumulated dividends in excess of net loss/income	(122,293		)	(97,280		)
Accumulated other comprehensive income	13,915			11,451
Total American Assets Trust, Inc. stockholders' equity	812,419			833,710
Noncontrolling interests	3,072			10,434
Total equity	815,491			844,144
TOTAL LIABILITIES AND EQUITY	$	2,196,776		$	2,259,864



Third Quarter 2018 Supplemental Information	Page 5




CONSOLIDATED STATEMENTS OF OPERATIONS



(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
REVENUE:
Rental income	$	78,079		$	78,135		$	231,172		$	221,100
Other property income	4,428			4,204			17,090			12,137
Total revenue	82,507			82,339			248,262			233,237
EXPENSES:
Rental expenses	21,383			21,177			62,685			60,877
Real estate taxes	8,787			8,535			25,961			23,975
General and administrative	5,176			4,958			16,139			15,171
Depreciation and amortization	19,886			21,192			86,033			63,360
Total operating expenses	55,232			55,862			190,818			163,383
OPERATING INCOME	27,275			26,477			57,444			69,854
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other (expense) income, net	(125		)	(99		)	(64		)	403
NET INCOME	14,271			12,505			17,993			30,401
Net income attributable to restricted shares	(71		)	(60		)	(215		)	(181		)
Net income attributable to unitholders in the Operating Partnership	(3,806		)	(3,351		)	(4,765		)	(8,220		)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS	$	10,394		$	9,094		$	13,013		$	22,000

EARNINGS PER COMMON SHARE
Basic income from operations attributable to common stockholders per share	$	0.22		$	0.19		$	0.28		$	0.47
Weighted average shares of common stock outstanding - basic	46,959,752			46,898,086			46,945,095			46,650,403
Diluted income from continuing operations attributable to common stockholders per share	$	0.22		$	0.19		$	0.28		$	0.47
Weighted average shares of common stock outstanding - diluted	64,137,360			64,093,066			64,133,584			64,081,697



Third Quarter 2018 Supplemental Information	Page 6




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



(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Funds from Operations (FFO) ⁽¹⁾
Net income	$	14,271		$	12,505		$	17,993		$	30,401
Depreciation and amortization of real estate assets	19,886			21,192			86,033			63,360
FFO, as defined by NAREIT	34,157			33,697			104,026			93,761
Less: Nonforfeitable dividends on incentive stock awards	(70		)	(59		)	(211		)	(177		)
FFO attributable to common stock and common units	$	34,087		$	33,638		$	103,815		$	93,584

FFO per diluted share/unit	$	0.53		$	0.52		$	1.62		$	1.46

Weighted average number of common shares and common units, diluted ⁽²⁾	64,137,727			64,094,454			64,133,629			64,083,186

Funds Available for Distribution (FAD) ⁽¹⁾	$	22,849		$	21,013		$	75,301		$	69,708

Dividends
Dividends declared and paid	$	17,388		$	16,724		$	52,164		$	50,172
Dividends declared and paid per share/unit	$	0.27		$	0.26		$	0.81		$	0.78



Third Quarter 2018 Supplemental Information	Page 7




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



(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Funds Available for Distribution (FAD) ⁽¹⁾
FFO	$	34,157		$	33,697		$	104,026		$	93,761
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures	(10,363		)	(12,537		)	(31,661		)	(26,957		)
Net effect of straight-line rents ⁽³⁾	(1,169		)	(327		)	2,034			119
Amortization of net above (below) market rents ⁽⁴⁾	(782		)	(836		)	(2,221		)	(2,545		)
Net effect of other lease assets ⁽⁵⁾	(9		)	(9		)	(11		)	965
Amortization of debt issuance costs and debt fair value adjustment	359			445			1,165			2,625
Non-cash compensation expense	726			639			2,180			1,917
Nonforfeitable dividends on incentive stock awards	(70		)	(59		)	(211		)	(177		)
FAD	$	22,849		$	21,013		$	75,301		$	69,708

Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	6,391		$	7,240		$	18,139		$	14,624
Maintenance capital expenditures	3,972			5,297			13,522			12,333
	$	10,363		$	12,537		$	31,661		$	26,957

Notes:


(1)	See Glossary of Terms.

(2)

For the three and nine months ended September 30, 2018 and 2017, 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, lease termination fees at City Center Bellevue and straight-line rent expense for our leases at the Annex at the Landmark at One Market and retail space at Waikiki Beach Walk - Retail.



Third Quarter 2018 Supplemental Information	Page 8




CORPORATE GUIDANCE



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

	Prior 2018 Guidance Range ^{(1) (2)}						Revised 2018 Guidance Range ⁽²⁾
Funds from Operations (FFO):
Net income	$	9,923		$	13,156		$	27,389		$	28,672
Depreciation and amortization of real estate assets	122,883			122,883			106,980			106,980
FFO, as defined by NAREIT	132,806			136,039			134,369			135,652
Less: Nonforfeitable dividends on incentive stock awards	(270		)	(270		)	(270		)	(270		)
FFO attributable to common stock and units	$	132,536		$	135,769		$	134,099		$	135,382
Weighted average number of common shares and units, diluted	64,651,844			64,651,844			64,162,101			64,162,101
FFO per diluted share, updated	$	2.05		$	2.10		$	2.09		$	2.11

	2019 Guidance Range ⁽²⁾
Funds from Operations (FFO):
Net income	$	52,474		$	57,620
Depreciation and amortization of real estate assets	84,191			84,191
FFO, as defined by NAREIT	136,665			141,811
Less: Nonforfeitable dividends on incentive stock awards	(286		)	(286		)
FFO attributable to common stock and units	$	136,379		$	141,525
Weighted average number of common shares and units, diluted	64,329,768			64,329,768
FFO per diluted share, updated	$	2.12		$	2.20

Notes:


(1)	Prior 2018 Guidance Range as reported in the company's Second Quarter 2018 Supplemental Information.


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

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.



Third Quarter 2018 Supplemental Information	Page 9




SAME-STORE NET OPERATING INCOME (NOI)



(Unaudited, amounts in thousands)	Three Months Ended September 30, 2018
	Retail			Office			Multifamily		Mixed-Use			Total
Real estate rental revenue
Same-store	$	21,327		$	27,124		$	12,848	$	16,483		$	77,782
Non-same store ⁽¹⁾	4,598			127			—		—			4,725
Total	25,925			27,251			12,848		16,483			82,507
Real estate expenses
Same-store	5,494			8,088			5,157		9,708			28,447
Non-same store ⁽¹⁾	1,568			155			—		—			1,723
Total	7,062			8,243			5,157		9,708			30,170
Net Operating Income (NOI)
Same-store	15,833			19,036			7,691		6,775			49,335
Non-same store ⁽¹⁾	3,030			(28		)	—		—			3,002
Total	$	18,863		$	19,008		$	7,691	$	6,775		$	52,337
Same-store NOI	$	15,833		$	19,036		$	7,691	$	6,775		$	49,335
Net effect of straight-line rents ⁽²⁾	(124		)	(1,000		)	50		(49		)	(1,123		)
Amortization of net above (below) market rents ⁽³⁾	(338		)	(375		)	—		(30		)	(743		)
Net effect of other lease intangibles ⁽⁴⁾	—			(16		)	—		—			(16		)
Tenant improvement reimbursements ⁽⁵⁾	(2		)	(261		)	—		—			(263		)
Same-store cash NOI ⁽⁵⁾	$	15,369		$	17,384		$	7,741	$	6,696		$	47,190

Notes:


(1)	Same-store and non-same store classifications are determined based on properties held on September 30, 2018 and 2017. 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.



Third Quarter 2018 Supplemental Information	Page 10




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



(Amounts in thousands)	Nine Months Ended September 30, 2018
	Retail			Office			Multifamily		Mixed-Use			Total
Real estate rental revenue
Same-store	$	62,472		$	83,514		$	25,394	$	46,798		$	218,178
Non-same store ⁽¹⁾	16,025			1,559			12,500		—			30,084
Total	78,497			85,073			37,894		46,798			248,262
Real estate expenses
Same-store	16,375			24,094			10,412		27,863			78,744
Non-same store ⁽¹⁾	4,636			504			4,762		—			9,902
Total	21,011			24,598			15,174		27,863			88,646
Net Operating Income (NOI)
Same-store	46,097			59,420			14,982		18,935			139,434
Non-same store ⁽¹⁾	11,389			1,055			7,738		—			20,182
Total	$	57,486		$	60,475		$	22,720	$	18,935		$	159,616
Same-store NOI	$	46,097		$	59,420		$	14,982	$	18,935		$	139,434
Net effect of straight-line rents ⁽²⁾	(197		)	2,023			97		(207		)	1,716
Amortization of net above (below) market rents ⁽³⁾	(1,006		)	(1,150		)	—		(90		)	(2,246		)
Net effect of other lease assets ⁽⁴⁾	—			(31		)	—		—			(31		)
Tenant improvement reimbursements ⁽⁵⁾	(30		)	(4,190		)	—		—			(4,220		)
Same-store cash NOI ⁽⁵⁾	$	44,864		$	56,072		$	15,079	$	18,638		$	134,653

Notes:


(1)	Same-store and non-same store are determined based on properties held on September 30, 2018 and 2017. 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.



Third Quarter 2018 Supplemental Information	Page 11




SAME-STORE CASH NOI COMPARISON EXCLUDING REDEVELOPMENT



(Unaudited, amounts in thousands)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018		2017		Change		2018		2017		Change
Cash Basis:
Retail	$	15,369	$	14,608	5.2	%	$	44,864	$	42,655	5.2	%
Office	17,384		17,919		(3.0	)	56,072		53,664		4.5
Multifamily	7,741		7,080		9.3		15,079		14,893		1.2
Mixed-Use	6,696		6,997		(4.3	)	18,638		18,327		1.7
Same-store Cash NOI ⁽¹⁾⁽²⁾	$	47,190	$	46,604	1.3	%	$	134,653	$	129,539	3.9	%

Notes:


(1)	Excluding lease termination fees, for the three and nine months ended September 30, 2018, same-store cash NOI would be 0.6% and 1.6%, 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.



Third Quarter 2018 Supplemental Information	Page 12




SAME-STORE CASH NOI COMPARISON WITH REDEVELOPMENT⁽¹⁾



(Unaudited, amounts in thousands)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018		2017		Change		2018		2017		Change
Cash Basis:
Retail	$	17,699	$	18,532	(4.5	)%	$	54,853	$	54,449	0.7	%
Office	17,263		17,779		(2.9	)	55,693		53,167		4.8
Multifamily	7,741		7,080		9.3		15,079		14,893		1.2
Mixed-Use	6,696		6,997		(4.3	)	18,638		18,327		1.7
Same-store Cash NOI with Redevelopment ⁽¹⁾⁽²⁾	$	49,399	$	50,388	(2.0	)%	$	144,263	$	140,836	2.4	%

Notes:


(1)	Excluding lease termination fees, for the three and nine months ended September 30, 2018, same-store cash NOI with redevelopment would be (2.6)% and 0.3%, 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.



Third Quarter 2018 Supplemental Information	Page 13




CASH NOI BY REGION



(Unaudited, amounts in thousands)	Three Months Ended September 30, 2018
	Retail		Office		Multifamily		Mixed-Use		Total
Cash Basis:
Southern California	8,552		4,427		6,142		—		19,121
Northern California	3,160		5,691		—		—		8,851
Hawaii	2,819		—		—		6,696		9,515
Oregon	265		4,382		1,599		—		6,246
Texas	3,531		—		—		—		3,531
Washington	—		3,113		—		—		3,113
Total Cash NOI	$	18,327	$	17,613	$	7,741	$	6,696	$	50,377

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.



Third Quarter 2018 Supplemental Information	Page 14




CASH NOI BREAKDOWN

Three Months Ended September 30, 2018

Cash NOI Breakdown

Portfolio Diversification by Geographic Region

Portfolio Diversification by Segment

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Third Quarter 2018 Supplemental Information	Page 15




PROPERTY REVENUE AND OPERATING EXPENSES



(Unaudited, amounts in thousands)	Three Months Ended September 30, 2018
			Additional				Property
			Property		Billed Expense		Operating			Rental			Cash
Property	Base Rent ⁽¹⁾		Income ⁽²⁾		Reimbursements ⁽³⁾		Expenses ⁽⁴⁾			Adjustments ⁽⁵⁾			NOI ⁽⁶⁾
Retail Portfolio
Carmel Country Plaza	$	944	$	23	$	228	$	(202	)	$	—		$	993
Carmel Mountain Plaza	3,259		43		810		(849		)	(26		)	3,237
South Bay Marketplace	605		1		189		(202		)	—			593
Gateway Marketplace	610		2		219		(173		)	—			658
Lomas Santa Fe Plaza	1,502		9		319		(390		)	—			1,440
Solana Beach Towne Centre	1,508		181		492		(511		)	(7		)	1,663
Del Monte Center	2,705		422		855		(1,140		)	—			2,842
Geary Marketplace	309		—		152		(145		)	2			318
The Shops at Kalakaua	495		26		48		(83		)	—			486
Waikele Center	2,649		287		737		(1,340		)	—			2,333
Alamo Quarry Market	3,624		95		1,652		(1,840		)	—			3,531
Hassalo on Eighth - Retail	275		50		54		(114		)	—			265
Subtotal Retail Portfolio	$	18,485	$	1,139	$	5,755	$	(6,989	)	$	(31	)	$	18,359
Office Portfolio													—
Torrey Reserve Campus ⁽⁷⁾	$	4,460	$	55	$	288	$	(1,443	)	$	(241	)	$	3,119
Torrey Point	41		43		—		—			6			90
Solana Beach Corporate Centre	1,761		3		74		(579		)	(37		)	1,222
The Landmark at One Market	6,721		28		277		(2,227		)	—			4,799
One Beach Street	1,067		1		147		(323		)	—			892
First & Main	2,793		193		460		(909		)	—			2,537
Lloyd District Portfolio ⁽⁷⁾	2,446		532		97		(1,146		)	37			1,966
City Center Bellevue	3,889		658		300		(1,515		)	(219		)	3,113
Subtotal Office Portfolio	$	23,178	$	1,513	$	1,643	$	(8,142	)	$	(454	)	$	17,738



Third Quarter 2018 Supplemental Information	Page 16




PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)



(Unaudited, amounts in thousands)	Three Months Ended September 30, 2018
			Additional				Property
			Property		Billed Expense		Operating			Rental			Cash
Property	Base Rent ⁽¹⁾		Income ⁽²⁾		Reimbursements ⁽³⁾		Expenses ⁽⁴⁾			Adjustments ⁽⁵⁾			NOI ⁽⁶⁾
Multifamily Portfolio
Loma Palisades	$	3,352	$	265	$	—	$	(1,190	)	$	(17	)	$	2,410
Imperial Beach Gardens	908		71		—		(318		)	(2		)	659
Mariner's Point	431		34		—		(150		)	(1		)	314
Santa Fe Park RV Resort	427		26		—		(219		)	—			234
Pacific Ridge Apartments	4,029		221		—		(1,669		)	(56		)	2,525
Hassalo on Eighth - Multifamily	2,992		363		—		(1,611		)	(145		)	1,599
Subtotal Multifamily Portfolio	$	12,139	$	980	$	—	$	(5,157	)	$	(221	)	$	7,741
Mixed-Use Portfolio
Waikiki Beach Walk - Retail	$	2,627	$	1,067	$	1,008	$	(1,800	)	$	—		$	2,902
Waikiki Beach Walk - Embassy Suites™	10,960		745		—		(7,911		)	—			3,794
Subtotal Mixed-Use Portfolio	$	13,587	$	1,812	$	1,008	$	(9,711	)	$	—		$	6,696
Subtotal Development Properties	$	1	$	37	$	—	$	(195	)	$	—		$	(157	)
Total	$	67,390	$	5,481	$	8,406	$	(30,194	)	$	(706	)	$	50,377

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 retail and office portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended September 30, 2018 (before abatements and tenant improvement reimbursements) and excludes the impact of straight-line rent and above (below) market rent adjustments. Total abatements for our retail and office portfolio were approximately $33 and $715, respectively, for the three months ended September 30, 2018. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended September 30, 2018. 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 $221 of abatements for our multifamily portfolio for the three months ended September 30, 2018. For Waikiki Beach Walk - Embassy Suites^TM, base rent is equal to the actual room revenue for the three months ended September 30, 2018. Total tenant improvement reimbursements for our retail and office portfolio were approximately $2 and $261, respectively, for the three months ended September 30, 2018. There were no tenant improvement reimbursements for the retail portion of our mixed-use portfolio for the three months ended September 30, 2018.


(2)	Represents additional property-related income for the three months ended September 30, 2018, 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, 2018.


(4)	Represents property operating expenses for the three months ended September 30, 2018. Property operating expenses includes all rental expenses, except non cash rent expense and the provision for bad debt recorded for deferred rent receivables.


(5)	Represents various rental adjustments related to base rent (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 Reserve Campus and Lloyd District Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent and abatements were both $300 for the three months ended September 30, 2018.



Third Quarter 2018 Supplemental Information	Page 17




SEGMENT CAPITAL EXPENDITURES



(Unaudited, amounts in thousands)	Three Months Ended September 30, 2018
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Retail Portfolio	$	851	$	1,316	$	2,167	$	1,054	$	—	$	3,221
Office Portfolio	5,518		1,923		7,441		1,731		235		9,407
Multifamily Portfolio	—		536		536		—		—		536
Mixed-Use Portfolio	22		197		219		—		—		219
Total	$	6,391	$	3,972	$	10,363	$	2,785	$	235	$	13,383



	Nine Months Ended September 30, 2018
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Retail Portfolio	$	2,974	$	4,456	$	7,430	$	1,248	$	—	$	8,678
Office Portfolio	14,944		5,465		20,409		2,506		1,378		24,293
Multifamily Portfolio	—		3,020		3,020		—		—		3,020
Mixed-Use Portfolio	221		581		802		—		—		802
Total	$	18,139	$	13,522	$	31,661	$	3,754	$	1,378	$	36,793



Third Quarter 2018 Supplemental Information	Page 18




SUMMARY OF OUTSTANDING DEBT



(Unaudited, amounts in thousands)	Amount
	Outstanding at				Annual Debt			Balance at
Debt	September 30, 2018		Interest Rate		Service ⁽¹⁾		Maturity Date	Maturity
One Beach Street ⁽²⁾	21,900		3.94	%	22,408		April 1, 2019	21,900
Torrey Reserve - North Court	19,723		7.22	%	20,784		June 1, 2019	19,443
Torrey Reserve - VCI, VCII, VCIII	6,669		6.36	%	560		June 1, 2020	6,439
Solana Beach Corporate Centre I-II	10,559		5.91	%	855		June 1, 2020	10,169
Solana Beach Towne Centre	35,196		5.91	%	2,849		June 1, 2020	33,898
City Center Bellevue ⁽²⁾	111,000		3.98	%	4,479		November 1, 2022	111,000
Secured Notes Payable / Weighted Average ⁽³⁾	$	205,047	4.80	%	$	51,935		$	202,849
Term Loan A ⁽⁴⁾	$	100,000	3.08	%	$	101,113	January 9, 2019	$	100,000
Series A Notes ⁽⁵⁾	150,000		3.88	%	6,060		October 31, 2021	150,000
Term Loan B ⁽⁶⁾	100,000		2.75	%	2,749		March 1, 2023	100,000
Term Loan C ⁽⁷⁾	50,000		2.74	%	1,371		March 1, 2023	50,000
Series F Notes ⁽⁸⁾	100,000		3.85	%	3,780		July 19, 2024	100,000
Series B Notes	100,000		4.45	%	4,450		February 2, 2025	100,000
Series C Notes	100,000		4.50	%	4,500		April 1, 2025	100,000
Series D Notes ⁽⁹⁾	250,000		3.87	%	10,725		March 1, 2027	250,000
Series E Notes ⁽¹⁰⁾	100,000		4.18	%	4,240		May 23, 2029	100,000
Unsecured Notes Payable / Weighted Average ⁽¹¹⁾	$	1,050,000	3.78	%	$	138,988		$	1,050,000
Unsecured Line of Credit ⁽¹²⁾	$	22,000	3.18	%

Notes:


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


(2)	Interest only.


(3)	The Secured Notes Payable total does not include debt issuance costs, net of $0.2 million.


(4)	Term Loan A has a maturity date of January 9, 2019. 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 3.08%, subject to adjustments based on our consolidated leverage ratio.


(5)	$150 million of 4.04% Senior Guaranteed Notes, Series A, due October 31, 2021. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series A Notes is approximately 3.88% per annum, through maturity.


(6)	Term Loan B matures on March 1, 2023. Term Loan B accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.75%, subject to adjustments based on our consolidated leverage ratio.


(7)	Term Loan C matures on March 1, 2023. Term Loan C accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 2.74%, subject to adjustments based on our consolidated leverage ratio.


(8)	$100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity.


(9)	$250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity.


(10)	$100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity.


(11)	The Unsecured Notes Payable total does not include debt issuance costs, net of $4.4 million.

(12)

The unsecured revolving line of credit (the "Revolver Loan") has a capacity of $350 million plus an accordion feature that may allow us to increase the availability thereunder up to an additional $350 million, subject to meeting specified requirements and obtaining additional commitments from lenders. The Revolver Loan matures on January 9, 2022, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six-month period. The Revolver Loan currently accrues interest at LIBOR, plus a spread which ranges from 1.05%-1.50%, based on our consolidated leverage ratio. The Revolver Loan total does not include debt issuance costs, net of $1.8 million.



Third Quarter 2018 Supplemental Information	Page 19




MARKET CAPITALIZATION



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

Market data	September 30, 2018
Common shares outstanding	47,222
Common units outstanding	17,177
Common shares and common units outstanding	64,399
Market price per common share	$	37.29
Equity market capitalization	$	2,401,439
Total debt	$	1,277,047
Total market capitalization	$	3,678,486
Less: Cash on hand	$	(56,220	)
Total enterprise value	$	3,622,266
Total unencumbered assets, gross	$	2,303,697

Total debt/Total capitalization	34.7		%
Total debt/Total enterprise value	35.3		%
Net debt/Total enterprise value⁽¹⁾	33.7		%
Total unencumbered assets, gross/Unsecured debt	215.3		%

Total debt/Adjusted EBITDA ⁽²⁾⁽³⁾	6.8		x
Net debt/Adjusted EBITDA ^(1)(2)(3)	6.5		x
Interest coverage ratio ⁽⁴⁾	3.7		x
Fixed charge coverage ratio ⁽⁴⁾	3.7		x

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Weighted Average Fixed Interest Rate	2018		2019		2020		2021		2022		2023		2024		2025		2026		2027		2028		2029
Weighted Average Fixed Interest Rate	—	%	3.8	%	6.0	%	3.9	%	4.0	%	2.7	%	3.8	%	4.5	%	—	%	3.9	%	—	%	4.2	%



Total Weighed Average Fixed Interest Rate:	3.9%
Weighted Average Term to Maturity:	5.4 years



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

Notes:


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


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


(3)	As used here, Adjusted EBITDA represents the actual for the three months ended September 30, 2018 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.



Third Quarter 2018 Supplemental Information	Page 20




SUMMARY OF DEVELOPMENT OPPORTUNITIES



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

Development Projects

						Project Costs (in thousands) ⁽²⁾
		Start Date	Completion Date	Estimated Stabilization Date ⁽¹⁾	Rentable Square Feet	Cost Incurred to Date	Total Estimated Investment	Estimated Stabilized Yield⁽³⁾

Property	Location
Office Property:
Torrey Point	San Diego, CA	2015	July 31, 2017	2019	90,000	$39,553	$55,800	6.75% - 7.75%



Development/Redevelopment Pipeline
Property	Property Type	Location	Estimated Rentable Square Feet	Multifamily Units
Solana Beach Corporate Centre (Building 5)	Retail	Solana Beach, CA	10,000	N/A
Lomas Santa Fe Plaza	Retail	Solana Beach, CA	45,000	N/A
Solana Beach - Highway 101 ⁽⁴⁾	Mixed Use	Solana Beach, CA	48,000	36
Lloyd District Portfolio - multiple phases ⁽⁵⁾	Mixed Use	Portland, OR	TBD	TBD

Notes:


(1)	Based on management's estimation of stabilized occupancy (90%).


(2)	Project costs exclude capitalized interest cost which is calculated in accordance with Accounting Standards Codification 835-20-50-1.


(3)	The estimated stabilized yield is calculated based on total estimated project costs, as defined above, when the project has reached stabilized occupancy.


(4)	Represents commercial portion of development opportunity for Solana Beach - Highway 101. A third party has been granted an option to acquire this property exercisable on or prior to December 22, 2019 for $9.43 million in consideration for a non-refundable $1.4 million option payment.

(5)

The Lloyd District Portfolio was acquired in 2011 consisting of approximately 600,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The portion of the property that has been designated for additional development 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 2018 Supplemental Information	Page 21

PORTFOLIO DATA



Third Quarter 2018 Supplemental Information	Page 22




PROPERTY REPORT



As of September 30, 2018				Retail and Office Portfolios
				Net				Annualized
			Number	Rentable				Base Rent
		Year Built/	of	Square	Percentage	Annualized		per Leased
Property	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾	Base Rent ⁽³⁾		Square Foot ⁽⁴⁾	Retail Anchor Tenant(s) ⁽⁵⁾	Other Principal Retail Tenants ⁽⁶⁾
Retail Properties
Carmel Country Plaza	San Diego, CA	1991	9	78,098	94.6%	$	3,809,432	$51.56		Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza ⁽⁷⁾	San Diego, CA	1994/2014	15	528,416	98.8	13,125,532		25.14	Sears	Dick's Sporting Goods, Saks Fifth Avenue Off 5th
South Bay Marketplace ⁽⁷⁾	San Diego, CA	1997	9	132,877	100.0	2,420,211		18.21		Ross Dress for Less, Grocery Outlet
Gateway Marketplace	San Diego, CA	1997/2016	3	127,861	98.7	2,442,014		19.35	Hobby Lobby	Smart & Final, Aldi
Lomas Santa Fe Plaza	Solana Beach, CA	1972/1997	9	209,569	98.3	6,034,431		29.29		Vons, Home Goods
Solana Beach Towne Centre	Solana Beach, CA	1973/2000/2004	12	246,730	97.2	5,933,156		24.74		Dixieline Probuild, Marshalls
Del Monte Center ⁽⁷⁾	Monterey, CA	1967/1984/2006	16	673,572	98.9	11,479,746		17.23	Macy's, KLA Monterrey	Century Theatres, Macy's Furniture Gallery
Geary Marketplace	Walnut Creek, CA	2012	3	35,156	100.0	1,235,622		35.15		Sprouts Farmer Market, Freebirds Wild Burrito
The Shops at Kalakaua	Honolulu, HI	1971/2006	3	11,671	100.0	1,981,378		169.77		Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele Center	Waipahu, HI	1993/2008	9	418,047	100.0	10,770,205		25.76	Lowe's	UFC Gym, Old Navy
Alamo Quarry Market ⁽⁷⁾	San Antonio, TX	1997/1999	16	588,970	99.3	14,572,675		24.92	Regal Cinemas	Bed Bath & Beyond, Whole Foods Market
Hassalo on Eighth	Portland, OR	2015	3	44,153	76.6	1,076,286		31.82		Providence Health & Services, Green Zebra Grocery
Subtotal/Weighted Average Retail Portfolio			107	3,095,120	98.5%	$	74,880,688	$24.56
Office Properties
Torrey Reserve Campus	San Diego, CA	1996-2000/2014-2016	14	516,677	83.8%	$	18,050,155	$41.69
Torrey Point	San Diego, CA	2017	2	92,614	32.2	983,599		32.98
Solana Beach Corporate Centre	Solana Beach, CA	1982/2005	4	212,633	88.1	7,214,186		38.51
The Landmark at One Market ⁽⁸⁾	San Francisco, CA	1917/2000	1	419,371	100.0	26,886,102		64.11
One Beach Street	San Francisco, CA	1924/1972/1987/1992	1	97,614	100.0	4,266,762		43.71
First & Main	Portland, OR	2010	1	360,641	98.7	11,176,887		31.40
Lloyd District Portfolio	Portland, OR	1940-2015	2	459,200	91.3	9,677,383		23.08
City Center Bellevue	Bellevue, WA	1987	1	495,800	97.5	17,724,246		36.67
Subtotal/Weighted Average Office Portfolio			26	2,654,550	91.4%	$	95,979,320	$39.56
Total/Weighted Average Retail and Office Portfolio			133	5,749,670	95.2%	$	170,860,008	$31.21



Third Quarter 2018 Supplemental Information	Page 23




PROPERTY REPORT (CONTINUED)



As of September 30, 2018
			Number						Average Monthly
		Year Built/	of		Percentage		Annualized		Base Rent per
Property	Location	Renovated	Buildings	Units	Leased ⁽²⁾		Base Rent ⁽³⁾		Leased Unit ⁽⁴⁾
Loma Palisades	San Diego, CA	1958/2001-2008	80	548	93.3%		$	13,313,736	$	2,170
Imperial Beach Gardens	Imperial Beach, CA	1959/2008	26	160	94.4		3,625,728		$	2,000
Mariner's Point	Imperial Beach, CA	1986	8	88	93.2		1,711,752		$	1,739
Santa Fe Park RV Resort ⁽⁹⁾	San Diego, CA	1971/2007-2008	1	126	77.8		1,399,620		$	1,190
Pacific Ridge Apartments	San Diego, CA	2013	3	533	96.2		16,928,340		$	2,751
Hassalo on Eighth - Velomor	Portland, OR	2015	1	177	88.7		3,090,732		$	1,641
Hassalo on Eighth - Aster Tower	Portland, OR	2015	1	337	92.6		6,185,088		$	1,652
Hassalo on Eighth - Elwood	Portland, OR	2015	1	143	88.1		2,435,748		$	1,611
Total/Weighted Average Multifamily Portfolio			121	2,112	92.3%		$	48,690,744	$	2,081

Mixed-Use Portfolio
			Number	Net Rentable					Annualized Base
		Year Built/	of	Square	Percentage		Annualized		Rent per Leased		Retail
Retail Portion	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾		Base Rent ⁽³⁾		Square Foot ⁽⁴⁾		Anchor Tenant(s) ⁽⁵⁾	Other Principal Retail Tenants ⁽⁶⁾
Waikiki Beach Walk - Retail	Honolulu, HI	2006	3	96,707	95.9	%	$	10,573,741	$	114.01		Yard House, Roy's

			Number						Annualized
		Year Built/	of		Average		Average		Revenue per
Hotel Portion	Location	Renovated	Buildings	Units	Occupancy ⁽¹⁰⁾		Daily Rate⁽¹⁰⁾		Available Room ⁽¹⁰⁾
Waikiki Beach Walk - Embassy Suites™	Honolulu, HI	2008/2014	2	369	92.8	%	$	347.78	$	322.84

Notes:

(1)

The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 1996 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, 2018, including leases which may not have commenced as of September 30, 2018. Percentage leased for our multifamily properties includes total units rented as of September 30, 2018.


(3)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2018 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.


(4)	Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of September 30, 2018. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of September 30, 2018.


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


(6)	Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants.

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



Property	Number of Ground Leases	Square Footage Leased Pursuant to Ground Leases	Aggregate Annualized Base Rent
Carmel Mountain Plaza	6	125,477	$	1,207,533
South Bay Marketplace	1	2,824	$	102,276
Del Monte Center	1	212,500	$	96,000
Alamo Quarry Market	4	31,994	$	497,776

(8)

This property contains 419,371 net rentable square feet consisting of the Landmark at One Market (375,151 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, 2021, which we have the option to extend until 2031 pursuant to two five-year extension options.


(9)	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, 2018, the highest average monthly occupancy rate for this property was 87%, occurring in January 2018. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments.

(10)

Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2018, 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, 2018 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, 2018 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 2018 Supplemental Information	Page 24




RETAIL LEASING SUMMARY



As of September 30, 2018
Total Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent			Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2018	10	100%	64,585	$30.44	$25.63		$	310,549		18.8	%	21.7	%	4.8	$	166,077	$2.57
2nd Quarter 2018	15	100%	66,415	$39.54	$39.05		$	32,852		1.3	%	14.1	%	8.1	$	660,600	$9.95
1st Quarter 2018	19	100%	43,241	$48.67	$50.78		$	(91,403	)	(4.2	)%	7.7	%	5.8	$	454,375	$10.51
4th Quarter 2017	14	100%	44,766	$48.33	$35.83		$	559,608		34.9	%	51.8	%	5.6	$	342,100	$7.64
Total 12 months	58	100%	219,007	$40.46	$36.75		$	811,606		10.1	%	21.7	%	6.2	$	1,623,152	$7.41
New Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent			Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2018	1	10%	959	$192.00	$144.00		$	46,032		33.3	%	40.0	%	3.0	$	—	$0.00
2nd Quarter 2018	4	27%	7,986	$67.30	$74.97		$	(61,197	)	(10.2	)%	(4.1	)%	8.4	$	660,600	$82.72
1st Quarter 2018	3	16%	8,077	$53.15	$67.94		$	(119,469	)	(21.8	)%	(14.8	)%	9.3	$	377,000	$46.68
4th Quarter 2017	3	21%	9,244	$37.51	$41.09		$	(33,096	)	(8.7	)%	2.5	%	9.6	$	287,100	$31.06
Total 12 months	11	19%	26,266	$57.02	$63.40		$	(167,730	)	(10.1	)%	(2.3	)%	8.9	$	1,324,700	$50.44
Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent			Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2018	9	90%	63,626	$28.00	$23.84		$	264,517		17.4	%	20.0	%	4.8	$	166,077	$2.61
2nd Quarter 2018	11	73%	58,429	$35.75	$34.14		$	94,049		4.7	%	19.9	%	8.1	$	—	$0.00
1st Quarter 2018	16	84%	35,164	$47.64	$46.84		$	28,066		1.7	%	15.5	%	5.0	$	77,375	$2.20
4th Quarter 2017	11	79%	35,522	$51.14	$34.46		$	592,704		48.4	%	67.6	%	4.6	$	55,000	$1.55
Total 12 months	47	81%	192,741	$38.20	$33.12		$	979,336		15.3	%	28.2	%	5.8	$	298,452	$1.55
Total Lease Summary - Comparable and Non-Comparable⁽¹⁾
	Number of Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2018	16	122,381	$28.81	11.2	$	11,775,947	$96.22
2nd Quarter 2018	19	74,650	$37.94	7.8	$	849,831	$11.38
1st Quarter 2018	22	47,468	$49.78	5.7	$	614,375	$12.94
4th Quarter 2017	17	53,660	$45.58	5.2	$	537,393	$10.01
Total 12 months	74	298,159	$37.45	8.4	$	13,777,546	$46.20

Notes:


(1)	Comparable leases represent those leases signed on spaces for which there was a previous lease, including leases signed for the retail portion of our mixed-use property.


(2)	Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.


(3)	Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.


(4)	Weighted average is calculated on the basis of square footage.


(5)	Excludes renewals at fixed contractual rates specified in the lease.



Third Quarter 2018 Supplemental Information	Page 25




OFFICE LEASING SUMMARY



As of September 30, 2018
Total Lease Summary - Comparable ⁽¹⁾
	Number of Leases Signed	% of Comparable Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
3rd Quarter 2018	9	100%	95,279	$38.40	$34.59		$	363,065	11.0	%	12.6	%	6.3	$	6,191,785	$64.99
2nd Quarter 2018	15	100%	113,182	$43.18	$37.06		$	692,640	16.5	%	28.8	%	6.9	$	4,839,775	$42.76
1st Quarter 2018	16	100%	207,056	$64.22	$57.52		$	1,386,716	11.6	%	29.8	%	7.5	$	11,165,819	$53.93
4th Quarter 2017	5	100%	20,249	$55.87	$50.26		$	113,671	11.2	%	21.4	%	4.6	$	204,298	$10.09
Total 12 months	45	100%	435,766	$52.72	$46.85		$	2,556,092	12.5	%	26.3	%	6.9	$	22,401,677	$51.41

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


Quarter
3rd Quarter 2018	4	44%	83,147	$37.88	$34.15		$	310,566	10.9	%	11.7	%	6.8	$	5,987,498	$72.01
2nd Quarter 2018	2	13%	38,599	$47.58	$42.15		$	209,915	12.9	%	30.5	%	9.8	$	3,225,852	$83.57
1st Quarter 2018	9	56%	120,813	$54.81	$44.95		$	1,190,208	21.9	%	46.6	%	9.5	$	9,514,872	$78.76
4th Quarter 2017	2	40%	5,048	$45.00	$40.26		$	23,950	11.8	%	24.4	%	4.2	$	116,240	$23.03
Total 12 months	17	38%	247,607	$47.80	$40.79		$	1,734,639	17.2	%	33.2	%	8.5	$	18,844,462	$76.11

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


Quarter
3rd Quarter 2018	5	56%	12,132	$41.96	$37.63		$	52,499	11.5	%	18.3	%	2.8	$	204,287	$16.84
2nd Quarter 2018	13	87%	74,583	$40.89	$34.42		$	482,725	18.8	%	27.9	%	5.5	$	1,613,923	$21.64
1st Quarter 2018	7	44%	86,243	$77.40	$75.13		$	196,508	3.0	%	16.1	%	4.7	$	1,650,947	$19.14
4th Quarter 2017	3	60%	15,201	$59.49	$53.58		$	89,721	11.0	%	20.6	%	4.7	$	88,058	$5.79
Total 12 months	28	62%	188,159	$59.20	$54.83		$	821,453	8.0	%	19.5	%	4.9	$	3,557,215	$18.90

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


Quarter
3rd Quarter 2018	13	114,367	$40.84	6.4	$	7,584,960	$66.32
2nd Quarter 2018	24	156,521	$41.70	6.7	$	6,900,810	$44.09
1st Quarter 2018	23	245,081	$61.39	7.4	$	14,009,667	$57.16
4th Quarter 2017	7	27,858	$54.23	5.2	$	694,348	$24.92
Total 12 months	67	543,827	$51.03	6.9	$	29,189,785	$53.67

Notes:


(1)	Comparable leases represent those leases signed on spaces for which there was a previous lease.


(2)	Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.


(3)	Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.


(4)	Weighted average is calculated on the basis of square footage.


(5)	Excludes renewals at fixed contractual rates specified in the lease.



Third Quarter 2018 Supplemental Information	Page 26




MULTIFAMILY LEASING SUMMARY



As of September 30, 2018
Lease Summary - Loma Palisades
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	511	93.3%		$13,313,736	$2,170
2nd Quarter 2018	544	99.3%		$13,423,164	$2,056
1st Quarter 2018	512	93.4%		$12,558,516	$2,045
4th Quarter 2017	519	94.7%	⁽⁴⁾	$12,343,980	$1,982

Lease Summary - Imperial Beach Gardens
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	151	94.4%		$3,625,728	$2,000
2nd Quarter 2018	157	98.1%		$3,663,048	$1,945
1st Quarter 2018	149	93.1%		$3,521,508	$1,970
4th Quarter 2017	142	88.8%		$3,479,904	$2,041

Lease Summary - Mariner's Point
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	82	93.2%		$1,711,752	$1,739
2nd Quarter 2018	86	97.7%		$1,773,576	$1,719
1st Quarter 2018	81	92.1%		$1,610,880	$1,656
4th Quarter 2017	86	97.7%		$1,617,300	$1,568

Lease Summary - Santa Fe Park RV Resort
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	98	77.8%		$1,399,620	$1,190
2nd Quarter 2018	104	82.8%		$1,825,680	$1,458
1st Quarter 2018	106	84.4%		$1,275,120	$999
4th Quarter 2017	94	74.6%		$1,002,180	$888

Lease Summary - Pacific Ridge Apartments
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	513	96.2%		$16,928,340	$2,751
2nd Quarter 2018	470	88.2%		$15,842,244	$2,808
1st Quarter 2018	493	92.5%		$16,052,556	$2,713
4th Quarter 2017	483	90.6%		$15,566,364	$2,686



Third Quarter 2018 Supplemental Information	Page 27




MULTIFAMILY LEASING SUMMARY (CONTINUED)



As of September 30, 2018
Lease Summary - Hassalo on Eighth - Velomor
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	157	88.7%		$3,090,732	$1,641
2nd Quarter 2018	168	94.9%		$3,268,236	$1,621
1st Quarter 2018	157	88.7%		$3,159,180	$1,677
4th Quarter 2017	167	94.4%		$3,236,304	$1,614

Lease Summary - Hassalo on Eighth - Aster Tower
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	312	92.6%		$6,185,088	$1,652
2nd Quarter 2018	322	95.6%		$6,449,628	$1,668
1st Quarter 2018	324	96.1%		$6,400,212	$1,647
4th Quarter 2017	325	96.4%		$6,283,308	$1,612

Lease Summary - Hassalo on Eighth - Elwood
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	126	88.1%		$2,435,748	$1,611
2nd Quarter 2018	133	93.0%		$2,500,788	$1,567
1st Quarter 2018	135	94.4%		$2,496,744	$1,541
4th Quarter 2017	122	85.3%		$2,198,088	$1,502

Total Multifamily Lease Summary
	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾		Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
3rd Quarter 2018	1,950	92.3%		$48,690,744	$2,081
2nd Quarter 2018	1,984	93.9%		$48,746,364	$2,048
1st Quarter 2018	1,957	92.7%		$47,074,716	$2,004
4th Quarter 2017	1,938	91.8%	⁽⁵⁾	$45,727,428	$1,965

Notes:


(1)	Percentage leased for our multifamily properties includes total units rented as of each respective quarter end date.


(2)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) as of each respective quarter end date.


(3)	Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of each respective quarter end date.


(4)	Excluding the 21 units associated with the Loma Palisades repositioning, Loma Palisades was 98.5% leased at December 31, 2017.


(5)	Excluding the 21 units associated with the Loma Palisades repositioning, Total Multifamily was 92.7% leased at December 31, 2017.



Third Quarter 2018 Supplemental Information	Page 28




MIXED-USE LEASING SUMMARY



As of September 30, 2018

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	Number of Leased Square Feet	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Annualized base Rent per Leased Square Foot ⁽³⁾
3rd Quarter 2018	92,767	95.9%	$10,573,741	$114
2nd Quarter 2018	92,777	95.9%	$10,610,601	$114
1st Quarter 2018	93,709	96.9%	$11,099,045	$118
4th Quarter 2017	93,684	96.9%	$10,513,637	$112

Lease Summary - Hotel Portion
	Number of Leased Units	Average Occupancy ⁽⁴⁾	Average Daily Rate ⁽⁴⁾	Annualized Revenue per Available Room ⁽⁴⁾
Quarter	Number of Leased Units	Average Occupancy ⁽⁴⁾	Average Daily Rate ⁽⁴⁾	Annualized Revenue per Available Room ⁽⁴⁾
3rd Quarter 2018	342	92.8%	$348	$323
2nd Quarter 2018	346	93.7%	$303	$284
1st Quarter 2018	348	94.3%	$312	$295
4th Quarter 2017	340	92.2%	$298	$275

Notes:


(1)	Percentage leased for mixed-use property includes square footage under leases as of September 30, 2018, including leases which may not have commenced as of September 30, 2018.


(2)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2018 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, 2018.

(4)

Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2018, 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 2018 Supplemental Information	Page 29




LEASE EXPIRATIONS



As of September 30, 2018
Assumes no exercise of lease options
	Office							Retail						Mixed-Use (Retail Portion Only)						Total
			% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	17,759		0.7	%	0.3	%	$3.15	24,300	0.8	%	0.4	%	$30.13	1,830	1.9	%	—	%	$28.28	43,889	0.8	%	$19.14
2018	21,861		0.8		0.4		$35.81	43,866	1.4		0.8		$28.22	6,190	6.4		0.1		$112.60	71,917	1.2		$37.79
2019	261,982		9.9		4.5		$46.86	248,893	8.0		4.3		$30.71	13,776	14.2		0.2		$116.24	524,651	9.0		$41.02
2020	372,245		14.0		6.4		$42.24	283,984	9.2		4.9		$27.37	19,930	20.6		0.3		$58.52	676,159	11.6		$36.47
2021	314,982		11.9		5.4		$45.59	188,749	6.1		3.2		$43.56	15,802	16.3		0.3		$212.37	519,533	8.9		$49.93
2022	252,043		9.5		4.3		$48.04	439,757	14.2		7.5		$29.49	5,481	5.7		0.1		$210.95	697,281	11.9		$37.62
2023	364,744	⁽²⁾	13.7		6.2		$47.89	412,804	13.3		7.1		$19.09	4,330	4.5		0.1		$44.49	781,878	13.4		$32.67
2024	108,804		4.1		1.9		$46.30	301,817	9.8		5.2		$26.91	1,027	1.1		—		$229.56	411,648	7.0		$32.54
2025	235,004		8.9		4.0		$33.05	184,420	6.0		3.2		$22.78	1,010	1.0		—		$244.28	420,434	7.2		$29.05
2026	73,341		2.8		1.3		$37.62	99,803	3.2		1.7		$25.81	—	—		—		—	173,144	3.0		$30.81
2027	15,459		0.6		0.3		$51.18	120,100	3.9		2.1		$27.65	13,118	13.6		0.2		$73.95	148,677	2.5		$34.18
Thereafter	194,843		7.3		3.3		$35.15	638,853	20.6		10.9		$15.97	6,914	7.1		0.1		$130.17	840,610	14.4		$21.35
Signed Leases Not Commenced	192,805		7.3		3.3		—	62,413	2.0		1.1		—	3,359	3.5		0.1		—	258,577	4.4		—
Available	228,678		8.6		3.9		—	45,361	1.5		0.8		—	3,940	4.1		0.1		—	277,979	4.8		—
Total ⁽³⁾	2,654,550		100.0	%	45.4	%	$36.16	3,095,120	100.0	%	52.9	%	$24.19	96,707	100.0	%	1.7	%	$109.34	5,846,377	100.0	%	$31.03

Assumes all lease options are exercised
	Office							Retail						Mixed-Use (Retail Portion Only)						Total
			% of		% of		Annualized		% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring	Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	17,759		0.7	%	0.3	%	$3.15	24,300	0.8	%	0.4	%	$30.13	1,830	1.9	%	—	%	$28.28	43,889	0.8	%	$19.14
2018	21,861		0.8		0.4		$35.81	43,866	1.4		0.8		$28.22	6,190	6.4		0.1		$112.60	71,917	1.2		$37.79
2019	138,086		5.2		2.4		$41.20	83,540	2.7		1.4		$42.05	8,374	8.7		0.1		$140.24	230,000	3.9		$45.11
2020	156,764		5.9		2.7		$39.79	94,443	3.1		1.6		$28.97	2,568	2.7		—		$107.90	253,775	4.3		$36.45
2021	68,882		2.6		1.2		$41.39	106,127	3.4		1.8		$46.09	15,802	16.3		0.3		$212.37	190,811	3.3		$58.16
2022	83,035		3.1		1.4		$44.92	102,179	3.3		1.7		$34.91	5,911	6.1		0.1		$209.91	191,125	3.3		$44.67
2023	128,842		4.9		2.2		$36.53	55,213	1.8		0.9		$35.12	4,330	4.5		0.1		$44.49	188,385	3.2		$36.30
2024	52,254		2.0		0.9		$43.19	190,507	6.2		3.3		$29.44	1,027	1.1		—		$229.56	243,788	4.2		$33.23
2025	173,150		6.5		3.0		$36.09	92,871	3.0		1.6		$30.70	1,010	1.0		—		$244.28	267,031	4.6		$35.00
2026	154,032		5.8		2.6		$38.04	39,024	1.3		0.7		$44.74	—	—		—		—	193,056	3.3		$39.39
2027	79,850		3.0		1.4		$37.75	154,233	5.0		2.6		$28.88	13,118	13.6		0.2		$73.95	247,201	4.2		$34.14
Thereafter	1,158,552	⁽²⁾	43.6		19.8		$47.08	2,001,043	64.7		34.2		$20.79	29,248	30.2		0.5		$72.88	3,188,843	54.5		$30.82
Signed Leases Not Commenced	192,805		7.3		3.3		—	62,413	2.0		1.1		—	3,359	3.5		0.1		—	258,577	4.4		—
Available	228,678		8.6		3.9		—	45,361	1.5		0.8		—	3,940	4.1		0.1		—	277,979	4.8		—
Total ⁽³⁾	2,654,550		100.0	%	45.4	%	$36.16	3,095,120	100.0	%	52.9	%	$24.19	96,707	100.0	%	1.7	%	$109.34	5,846,377	100.0	%	$31.03



Third Quarter 2018 Supplemental Information	Page 30




LEASE EXPIRATIONS (CONTINUED)



As of September 30, 2018

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, 2018 for the leases expiring during the applicable period by (ii) 12 months.


(2)	The expirations include 19,126 square feet leased by EisnerAmper LLP at The Landmark at One Market through December 31, 2018, for which Autodesk, Inc. has signed an agreement to lease such space beginning January 1, 2019 through December 31, 2023 with options to extend the lease through December 31, 2033.


(3)	Individual items may not add up to total due to rounding.



Third Quarter 2018 Supplemental Information	Page 31




PORTFOLIO LEASED STATISTICS



	At September 30, 2018					At September 30, 2017
Type	Size	Leased ⁽¹⁾		Leased %		Size	Leased ⁽¹⁾		Leased %
Overall Portfolio⁽²⁾Statistics
Retail Properties (square feet)	3,095,120	3,049,759		98.5	%	3,297,739	3,199,463		97.0	%
Office Properties (square feet)	2,654,550	2,425,872		91.4	%	2,681,637	2,411,906		89.9	%
Multifamily Properties (units)	2,112	1,950		92.3	%	2,112	1,929		91.3	%	⁽³⁾
Mixed-Use Properties (square feet)	96,707	92,767		95.9	%	96,707	90,650		93.7	%
Mixed-Use Properties (units)	369	345	⁽⁴⁾	93.6	%	369	342	⁽⁴⁾	92.7	%

Same-Store⁽²⁾ Statistics
Retail Properties (square feet)⁽⁵⁾	2,549,212	2,505,551		98.3	%	2,632,241	2,585,715		98.2	%
Office Properties (square feet)⁽⁵⁾	2,561,936	2,396,019		93.5	%	2,681,637	2,411,906		89.9	%
Multifamily Properties (units)	2,112	1,950		92.3	%	2,112	1,929		91.3	%	⁽³⁾
Mixed-Use Properties (square feet)	96,707	92,767		95.9	%	96,707	90,650		93.7	%
Mixed-Use Properties (units)	369	345	⁽⁴⁾	93.6	%	369	342	⁽⁴⁾	92.7	%

Notes:


(1)	Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date.


(2)	See Glossary of Terms.


(3)	Excluding the 21 units associated with the Loma Palisades repositioning, total multifamily and same-store multifamily were 92.3% leased at September 30, 2017.


(4)	Represents average occupancy for the nine months ended September 30, 2018 and 2017.


(5)	The same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. The same-store portfolio excludes Gateway Marketplace (acquired on July 6, 2017), Waikele Center (due to significant redevelopment activity) and Torrey Point (placed into operations and became available for occupancy in August 2018).



Third Quarter 2018 Supplemental Information	Page 32




TOP TENANTS - RETAIL



As of September 30, 2018
	Tenant	Property(ies)	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Retail		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Retail		Annualized Base Rent as a Percentage of Total
1	Lowe's	Waikele Center	5/31/2028	155,000	5.0	%	2.7	%	$	3,720,000	5.0	%	2.1	%
2	Nordstrom Rack	Carmel Mountain Plaza, Alamo Quarry Market	9/30/2022 10/31/2022	69,047	2.2		1.2		2,189,648		2.9		1.2
3	Sprouts Farmers Market	Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace	6/30/2024 3/31/2025 9/30/2032	71,431	2.3		1.2		1,919,436		2.6		1.1
4	Vons	Lomas Santa Fe Plaza	12/31/2022	49,895	1.6		0.9		1,399,205		1.9		0.8
5	Old Navy	Waikele Center, South Bay Marketplace, Alamo Quarry Market	7/31/2020 4/30/2021 9/30/2022	59,780	1.9		1.0		*		*		*
6	Marshalls	Solana Beach Towne Centre, Carmel Mountain Plaza,	1/31/2025 1/31/2029	68,055	2.2		1.2		1,335,447		1.8		0.7
7	Regal Cinemas	Alamo Quarry Market	3/31/2023	72,447	2.3		1.2		1,231,599		1.6		0.7
8	Michaels	Carmel Mountain Plaza, Alamo Quarry Plaza	1/31/2024 2/29/2028	46,850	1.5		0.8		1,022,103		1.4		0.6
9	Angelika Film Center	Carmel Mountain Plaza	1/31/2024	34,561	1.1		0.6		1,006,589		1.3		0.6
10	Whole Foods Market	Alamo Quarry Market Del Monte Center	10/31/2022 7/31/2023	63,471	2.1		1.1		956,412		1.3		0.5
	Top 10 Retail Tenants Total			690,537	22.2	%	11.9	%	$	14,780,439	19.8	%	8.3	%



*	Data withheld at tenant's request.



Third Quarter 2018 Supplemental Information	Page 33




TOP TENANTS - OFFICE



As of September 30, 2018
	Tenant	Property	Lease Expiration	Total Leased Square Feet	Rentable Square Feet as a Percentage of Total Office		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Office		Annualized Base Rent as a Percentage of Total
1	salesforce.com	The Landmark at One Market	6/30/2019 4/30/2020 5/31/2021	254,118	9.6	%	4.3	%	$	14,948,296	15.6	%	8.2	%
2	Autodesk, Inc.	The Landmark at One Market	12/31/2022 12/31/2023	114,664	4.3		2.0		9,547,099		9.9		5.3
3	Veterans Benefits Administration	First & Main	8/31/2020	93,572	3.5		1.6		3,006,453		3.1		1.7
4	Clearesult Operating, LLC	First & Main	4/30/2025	101,848	3.8		1.7		2,735,895		2.9		1.5
5	State of Oregon: Department of Environmental Quality	Lloyd District Portfolio	10/31/2031	87,787	3.3		1.5		2,531,777		2.6		1.4
6	Alliant International University	One Beach Street	10/31/2019	64,161	2.4		1.1		2,447,368		2.5		1.3
7	VMWare, Inc.	City Center Bellevue	11/30/2022 3/31/2025	72,854	2.7		1.2		2,367,168		2.5		1.3
8	Treasury Call Center	First & Main	8/31/2020	63,648	2.4		1.1		2,184,302		2.3		1.2
9	California Bank & Trust	Torrey Reserve Campus	2/29/2024	34,731	1.3		0.6		1,807,609		1.9		1.0
10	Smartsheet, Inc.	City Center Bellevue	10/31/2026	52,790	2.0		0.9		1,593,788		1.7		0.9
	Top 10 Office Tenants Total			940,173	35.3	%	16.0	%	$	43,169,755	45.0	%	23.8	%



Third Quarter 2018 Supplemental Information	Page 34

APPENDIX



Third Quarter 2018 Supplemental Information	Page 35




GLOSSARY OF TERMS

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Net income	$	14,271		$	12,505		$	17,993		$	30,401
Depreciation and amortization	19,886			21,192			86,033			63,360
Interest expense	12,879			13,873			39,387			39,856
Interest income	(46		)	(111		)	(209		)	(371		)
Income tax expense/(benefit)	171			210			277			(32		)
EBITDA	$	47,161		$	47,669		$	143,481		$	133,214

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that begins with EBITDA and includes adjustments for certain items that we believe are not representative of ongoing operating performance. Specifically, we include a pro forma adjustment to reflect a full period of NOI on the operating properties we acquire during the quarter, to assume all transactions occurred at the beginning of the quarter. We use Adjusted EBITDA as a supplemental performance measure because we believe these items create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential.



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
EBITDA	$	47,161	$	47,669	$	143,481	$	133,214
Pro forma adjustments	—		814		—		814
Adjusted EBITDA	$	47,161	$	48,483	$	143,481	$	134,028

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, 2018 and 2017 is as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Net income	$	14,271		$	12,505		$	17,993		$	30,401
Depreciation and amortization	19,886			21,192			86,033			63,360
Interest expense	12,879			13,873			39,387			39,856
Interest income	(46		)	(111		)	(209		)	(371		)
Income tax expense/(benefit)	171			210			277			(32		)
EBITDAre	$	47,161		$	47,669		$	143,481		$	133,214



Third Quarter 2018 Supplemental Information	Page 36




GLOSSARY OF TERMS (CONTINUED)

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

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

Net Operating Income (NOI): We define NOI as operating revenues (rental income, tenant reimbursements, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance). NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expense, other nonproperty income and losses, gains and losses from property dispositions, extraordinary items, tenant improvements and leasing commissions. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. Since NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. However, NOI should not be viewed as an alternative measure of our financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Reconciliation of NOI to net income	2018			2017			2018			2017
Total NOI	$	52,337		$	52,627		$	159,616		$	148,385
General and administrative	(5,176		)	(4,958		)	(16,139		)	(15,171		)
Depreciation and amortization	(19,886		)	(21,192		)	(86,033		)	(63,360		)
Operating Income	$	27,275		$	26,477		$	57,444		$	69,854
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other income, net	(125		)	(99		)	(64		)	403
Net income	$	14,271		$	12,505		$	17,993		$	30,401
Net income attributable to restricted shares	(71		)	(60		)	(215		)	(181		)
Net income attributable to unitholders in the Operating Partnership	(3,806		)	(3,351		)	(4,765		)	(8,220		)
Net income attributable to American Assets Trust, Inc. stockholders	$	10,394		$	9,094		$	13,013		$	22,000

Overall Portfolio: Includes all operating properties owned by us as of September 30, 2018.

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



Third Quarter 2018 Supplemental Information	Page 37




GLOSSARY OF TERMS (CONTINUED)

a measure of the operating performance of the company's properties but does not measure the company's performance as a whole. Cash NOI is therefore not a substitute for net income as computed in accordance with GAAP. A Reconciliation of Total Cash NOI to Operating Income is presented below:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Reconciliation of Total Cash NOI to Net Income	2018			2017			2018			2017
Total Cash NOI	$	50,377		$	51,457		$	159,418		$	145,926
Non-cash revenue and other operating expenses ⁽¹⁾	1,960			1,170			198			2,459
General and administrative	(5,176		)	(4,958		)	(16,139		)	(15,171		)
Depreciation and amortization	(19,886		)	(21,192		)	(86,033		)	(63,360		)
Operating income	$	27,275		$	26,477		$	57,444		$	69,854
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other income, net	(125		)	(99		)	(64		)	403
Net income	$	14,271		$	12,505		$	17,993		$	30,401

(1)

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 Income	2018			2017			2018			2017
Same-Store Cash NOI	$	47,190		$	46,604		$	134,653		$	129,539
Redevelopment Cash NOI ⁽³⁾	2,209			3,784			9,610			11,297
Same-Store Cash NOI with Redevelopment	49,399			50,388			144,263			140,836
Tenant improvement reimbursements	263			565			4,220			739
Total Same-Store Cash NOI with Redevelopment	$	49,662		$	50,953		$	148,483		$	141,575
Non-Same Store Cash NOI	715			504			10,935			4,351
Total Cash NOI	$	50,377		$	51,457		$	159,418		$	145,926
Non-cash revenue and other operating expenses ⁽⁴⁾	1,960			1,170			198			2,459
General and administrative	(5,176		)	(4,958		)	(16,139		)	(15,171		)
Depreciation and amortization	(19,886		)	(21,192		)	(86,033		)	(63,360		)
Operating income	$	27,275		$	26,477		$	57,444		$	69,854
Interest expense	(12,879		)	(13,873		)	(39,387		)	(39,856		)
Other income, net	(125		)	(99		)	(64		)	403
Net income	$	14,271		$	12,505		$	17,993		$	30,401

(1)

Same-store includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store excludes (i) Gateway Marketplace, which was acquired on July 6, 2017; (ii) Waikele Center, due to significant redevelopment activity; (iii) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (iv) land held for development.



Third Quarter 2018 Supplemental Information	Page 38




GLOSSARY OF TERMS (CONTINUED)

(2)

Same-store includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. Same-store excludes (i) the Pacific Ridge Apartments, which was acquired on April 28, 2017; (ii) Gateway Marketplace, which was acquired on July 6, 2017; (iii) Waikele Center, due to significant redevelopment activity; (iv) Torrey Point, which was placed into operations and became available for occupancy in August 2018; and (v) land held for development.


(3)	Redevelopment property refers to Waikele Center and Lloyd District Portfolio - Land.

(4)



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GLOSSARY OF TERMS (CONTINUED)

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



	Comparison of Three Months Ended			Comparison of Nine Months Ended
	September 30, 2018 to 2017			September 30, 2018 to 2017
	Same-Store	Non Same-Store	Redevelopment Same-Store	Same-Store	Non Same-Store	Redevelopment Same-Store
Retail Properties
Carmel Country Plaza	X		X	X		X
Carmel Mountain Plaza	X		X	X		X
South Bay Marketplace	X		X	X		X
Gateway Marketplace		X			X
Lomas Santa Fe Plaza	X		X	X		X
Solana Beach Towne Centre	X		X	X		X
Del Monte Center ⁽¹⁾	X		X	X		X
Geary Marketplace	X		X	X		X
The Shops at Kalakaua	X		X	X		X
Waikele Center		X	X		X	X
Alamo Quarry Market	X		X	X		X
Hassalo on Eighth - Retail	X		X	X		X
Office Properties
Torrey Reserve Campus	X		X	X		X
Torrey Point		X			X
Solana Beach Corporate Centre	X		X	X		X
The Landmark at One Market	X		X	X		X
One Beach Street	X		X	X		X
First & Main	X		X	X		X
Lloyd District Portfolio	X		X	X		X
City Center Bellevue	X		X	X		X
Multifamily Properties
Loma Palisades	X		X	X		X
Imperial Beach Gardens	X		X	X		X
Mariner's Point	X		X	X		X
Santa Fe Park RV Resort	X		X	X		X
Pacific Ridge Apartments	X		X		X
Hassalo on Eighth	X		X	X		X
Mixed-Use Properties
Waikiki Beach Walk - Retail	X		X	X		X
Waikiki Beach Walk - Embassy Suites™	X		X	X		X
Development Properties
Solana Beach Corporate Centre - Land		X			X
Solana Beach - Highway 101 - Land		X			X
Lloyd District Portfolio - Land		X	X		X	X

(1) Del Monte Center includes the Forever 21 building which we acquired on September 1, 2017 after previously owning the underlying land.



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GLOSSARY OF TERMS (CONTINUED)

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



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