View Filing Data

Net income attributable to restricted shares

9,826

11,941

25,310

27,184

(69)

(92)

(173)

(185)

Net income attributable to unitholders in the Operating Partnership

(2,101)

(2,933)

(5,413)

(6,988)

NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS

$ 7,656

$ 8,916

$ 19,724

$ 20,011

EARNINGS PER COMMON SHARE

Earnings per common share, basic (in USD per share)

$ 0.13

$ 0.18

$ 0.33

$ 0.41

Weighted average shares of common stock outstanding-basic (in shares)

59,724,139

50,135,978

59,723,605

48,578,872

EARNINGS PER COMMON SHARE, DILUTED

Earnings per common share, diluted (in USD per share)

$ 0.13

$ 0.18

$ 0.33

$ 0.41

Weighted average shares of common stock outstanding-diluted (in shares)

76,114,687

66,889,784

76,114,153

65,543,409

Dividends declared per common share (in USD per share)

$ 0.20

$ 0.28

$ 0.50

$ 0.56

Reclassification of amortization of forward-starting swap included in interest expense

$ 9,826

$ 11,941

$ 25,310

$ 27,184

332

319

665

639

Comprehensive income

9,508

7,731

18,544

20,522

Comprehensive income attributable to non-controlling interests

(2,033)

(1,820)

(3,974)

(5,218)

Comprehensive income attributable to American Assets Trust, Inc.

7,475

5,911

14,570

15,304

American Assets Trust, L.P.

REVENUE:

Rental income

79,230

79,656

171,300

156,487

Other property income

2,879

4,457

7,552

12,945

Total revenue

82,109

84,113

178,852

169,432

EXPENSES:

Total rental expenses

16,981

21,826

39,549

42,622

Real estate taxes

8,961

9,275

20,006

18,321

General and administrative

6,679

5,943

13,499

12,016

Depreciation and amortization

26,493

22,582

53,955

43,165

Total operating expenses

59,114

59,626

127,009

116,124

OPERATING INCOME

22,995

24,487

51,843

53,308

Interest expense

(13,331)

(13,129)

(26,803)

(26,478)

Gain on sale of real estate

633

Other income (expense), net

162

(50)

270

(279)

Net income attributable to restricted shares

9,826

11,941

25,310

27,184

(69)

(92)

(173)

(185)

NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS

$ 9,757

$ 11,849

$ 25,137

$ 26,999

EARNINGS PER COMMON SHARE

Earnings per common share, basic (in USD per share)

$ 0.13

$ 0.18

$ 0.33

$ 0.41

Weighted average shares of common stock outstanding-basic (in shares)

76,114,687

66,889,784

76,114,153

65,543,409

EARNINGS PER COMMON SHARE, DILUTED

Earnings per common share, diluted (in USD per share)

$ 0.13

$ 0.18

$ 0.33

$ 0.41

Weighted average shares of common stock outstanding-diluted (in shares)

76,114,687

66,889,784

76,114,153

65,543,409

Distributions per unit (in USD per share)

$ 0.20

$ 0.28

$ 0.50

$ 0.56

Reclassification of amortization of forward-starting swap included in interest expense

$ 9,826

$ 11,941

$ 25,310

$ 27,184

332

319

665

639

Comprehensive income

9,508

7,731

18,544

20,522

Limited Partner | American Assets Trust, L.P.

EXPENSES:

2,101

2,933

^[1]

Comprehensive income attributable to American Assets Trust, Inc.

2,101

2,933

^[1]

(2,033)

(1,820)

(3,974)

(5,218)

General Partner | American Assets Trust, L.P.

EXPENSES:

7,725

9,008

^[2]

Comprehensive income attributable to American Assets Trust, Inc.

7,725

9,008

^[2]

7,475

5,911

14,570

15,304

Interest Rate Swap

Other comprehensive loss - change in value of interest rate swaps

(3,891)

(6,101)

(6,023)

Interest Rate Swap | American Assets Trust, L.P.

Other comprehensive loss - change in value of interest rate swaps

$ 14

$ (3,891)

$ (6,101)

$ (6,023)

[1]	Consists of limited partnership interests held by third parties.
[2]	Consists of general partnership interests held by American Assets Trust, Inc.

Consolidated Statement of Equity (Unaudited) - USD ($)

Total

American Assets Trust, L.P.

Accumulated Other Comprehensive Income (Loss)

American Assets Trust, L.P.

Limited Partner

American Assets Trust, L.P.

General Partner

Common Shares

American Assets Trust, L.P.

Common Shares

American Assets Trust, L.P.

Limited Partner

Additional Paid-in Capital

Accumulated Dividends in Excess of Net Income

Accumulated Other Comprehensive Income (Loss)

Noncontrolling Interests - Unitholders in the Operating Partnership

Swap

American Assets Trust, L.P.

Swap

American Assets Trust, L.P.

Accumulated Other Comprehensive Income (Loss)

Swap

Accumulated Other Comprehensive Income (Loss)

Swap

Noncontrolling Interests - Unitholders in the Operating Partnership

Beginning Balance (shares) at Dec. 31, 2018

47,335,409

Beginning Balance at Dec. 31, 2018

$ 802,471,000

$ 474,000

$ 920,661,000

$ (128,778,000)

$ 10,620,000

$ (506,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Common shares issued (shares)

15,243,000

$ 15,243,000

$ 4,055,000

^[1]

$ 11,188,000

^[2]

11,188,000

4,055,000

162,531

Common shares issued

7,034,000

$ 1,000

7,033,000

Forfeiture of restricted stock (shares)

(11,046)

Dividends declared and paid (noncontrolling interest)

(18,061,000)

(13,251,000)

(4,810,000)

Other comprehensive loss - change in value of interest rate swaps

1,098,000

$ (2,132,000)

$ (1,561,000)

$ (571,000)

Reclassification of amortization of forward-starting swap included in interest expense

320,000

$ 320,000

234,000

86,000

Ending Balance (shares) at Mar. 31, 2019

47,486,894

Ending Balance at Mar. 31, 2019

805,333,000

$ 475,000

928,792,000

(130,841,000)

8,825,000

(1,918,000)

Beginning partners' capital account (shares) at Dec. 31, 2018

17,177,608

^[1]

47,335,409

^[2]

Beginning partners' capital account at Dec. 31, 2018

802,471,000

14,591,000

$ (4,477,000)

^[1]

$ 792,357,000

^[2]

Increase (Decrease) in Partners' Capital [Roll Forward]

Contributions from American Assets Trust, Inc. (in shares)

15,243,000

4,055,000

^[1]

$ 11,188,000

^[2]

11,188,000

4,055,000

162,531

Contributions from American Assets Trust, Inc.

$ 7,034,000

Forfeiture of restricted units

^[2]

(11,046)

(18,061,000)

$ (4,810,000)

^[1]

$ (13,251,000)

^[2]

Other comprehensive loss - change in value of interest rate swaps

1,098,000

$ 1,098,000

^[2]

(2,132,000)

(1,561,000)

(571,000)

Reclassification of amortization of forward-starting swap included in interest expense

320,000

234,000

86,000

Ending partners' capital account (shares) at Mar. 31, 2019

17,177,608

^[1]

47,486,894

^[2]

Ending partners' capital account at Mar. 31, 2019

805,333,000

12,139,000

$ (5,232,000)

^[1]

$ 798,426,000

^[2]

Beginning Balance (shares) at Dec. 31, 2018

47,335,409

Beginning Balance at Dec. 31, 2018

802,471,000

$ 474,000

920,661,000

(128,778,000)

10,620,000

(506,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Reclassification of amortization of forward-starting swap included in interest expense

27,184,000

639,000

Ending Balance (shares) at Jun. 30, 2019

59,722,748

Ending Balance at Jun. 30, 2019

1,291,922,000

$ 597,000

1,438,768,000

(135,497,000)

5,876,000

(17,822,000)

Beginning partners' capital account (shares) at Dec. 31, 2018

17,177,608

^[1]

47,335,409

^[2]

Beginning partners' capital account at Dec. 31, 2018

802,471,000

14,591,000

$ (4,477,000)

^[1]

$ 792,357,000

^[2]

Increase (Decrease) in Partners' Capital [Roll Forward]

Reclassification of amortization of forward-starting swap included in interest expense

27,184,000

639,000

Ending partners' capital account (shares) at Jun. 30, 2019

16,390,548

^[1]

59,722,748

^[2]

Ending partners' capital account at Jun. 30, 2019

1,291,922,000

7,929,000

$ (19,875,000)

^[1]

$ 1,303,868,000

^[2]

Beginning Balance (shares) at Mar. 31, 2019

47,486,894

Beginning Balance at Mar. 31, 2019

805,333,000

$ 475,000

928,792,000

(130,841,000)

8,825,000

(1,918,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Common shares issued (shares)

11,941,000

$ 2,933,000

^[1]

$ 9,008,000

^[2]

9,008,000

2,933,000

11,444,382

Common shares issued

495,980,000

$ 114,000

495,866,000

Issuance of restricted stock (shares)

4,412

Conversion of operating partnership units (in shares)

787,060

Conversion of operating partnership units

$ 8,000

12,979,000

148,000

(13,135,000)

Dividends declared and paid (noncontrolling interest)

(18,253,000)

(13,664,000)

(4,589,000)

Other comprehensive loss - change in value of interest rate swaps

1,131,000

(3,891,000)

(2,857,000)

(1,034,000)

Reclassification of amortization of forward-starting swap included in interest expense

319,000

240,000

79,000

Ending Balance (shares) at Jun. 30, 2019

59,722,748

Ending Balance at Jun. 30, 2019

1,291,922,000

$ 597,000

1,438,768,000

(135,497,000)

5,876,000

(17,822,000)

Beginning partners' capital account (shares) at Mar. 31, 2019

17,177,608

^[1]

47,486,894

^[2]

Beginning partners' capital account at Mar. 31, 2019

805,333,000

12,139,000

$ (5,232,000)

^[1]

$ 798,426,000

^[2]

Increase (Decrease) in Partners' Capital [Roll Forward]

Contributions from American Assets Trust, Inc. (in shares)

11,941,000

2,933,000

^[1]

$ 9,008,000

^[2]

9,008,000

2,933,000

11,444,382

Contributions from American Assets Trust, Inc.

$ 495,980,000

Issuance of restricted units

$ 4,412

Conversion of operating partnership units (shares)

787,060

^[2]

(787,060)

Conversion of operating partnership units

$ 12,987,000

$ (12,987,000)

(18,253,000)

$ (4,589,000)

^[1]

(13,664,000)

^[2]

Other comprehensive loss - change in value of interest rate swaps

1,131,000

$ 1,131,000

^[2]

(3,891,000)

(2,857,000)

(1,034,000)

Reclassification of amortization of forward-starting swap included in interest expense

319,000

240,000

79,000

Ending partners' capital account (shares) at Jun. 30, 2019

16,390,548

^[1]

59,722,748

^[2]

Ending partners' capital account at Jun. 30, 2019

1,291,922,000

7,929,000

$ (19,875,000)

^[1]

$ 1,303,868,000

^[2]

Beginning Balance (shares) at Dec. 31, 2019

60,068,228

Beginning Balance at Dec. 31, 2019

1,293,672,000

$ 601,000

1,452,014,000

(144,378,000)

5,680,000

(20,245,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

15,484,000

$ 3,312,000

^[1]

$ 12,172,000

^[2]

12,172,000

3,312,000

Dividends declared and paid (noncontrolling interest)

(22,937,000)

(18,020,000)

(4,917,000)

Other comprehensive loss - change in value of interest rate swaps

1,250,000

(6,115,000)

(4,816,000)

(1,299,000)

Reclassification of amortization of forward-starting swap included in interest expense

333,000

261,000

72,000

Ending Balance (shares) at Mar. 31, 2020

60,068,228

Ending Balance at Mar. 31, 2020

1,281,021,000

$ 601,000

1,453,264,000

(150,226,000)

603,000

(23,221,000)

Beginning partners' capital account (shares) at Dec. 31, 2019

16,390,548

60,068,228

Beginning partners' capital account at Dec. 31, 2019

1,293,672,000

7,716,000

$ (22,281,000)

$ 1,308,237,000

Increase (Decrease) in Partners' Capital [Roll Forward]

15,484,000

3,312,000

^[1]

12,172,000

^[2]

12,172,000

3,312,000

(22,937,000)

$ (4,917,000)

^[1]

(18,020,000)

^[2]

Other comprehensive loss - change in value of interest rate swaps

1,250,000

$ 1,250,000

^[2]

(6,115,000)

(4,816,000)

(1,299,000)

Reclassification of amortization of forward-starting swap included in interest expense

333,000

261,000

72,000

Ending partners' capital account (shares) at Mar. 31, 2020

16,390,548

60,068,228

Ending partners' capital account at Mar. 31, 2020

1,281,021,000

1,268,000

$ (23,886,000)

$ 1,303,639,000

Beginning Balance (shares) at Dec. 31, 2019

60,068,228

Beginning Balance at Dec. 31, 2019

1,293,672,000

$ 601,000

1,452,014,000

(144,378,000)

5,680,000

(20,245,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Conversion of operating partnership units (in shares)

25,310,000

Reclassification of amortization of forward-starting swap included in interest expense

665,000

Ending Balance (shares) at Jun. 30, 2020

60,073,918

Ending Balance at Jun. 30, 2020

1,276,488,000

$ 601,000

1,454,516,000

(154,516,000)

352,000

(24,465,000)

Beginning partners' capital account (shares) at Dec. 31, 2019

16,390,548

60,068,228

Beginning partners' capital account at Dec. 31, 2019

1,293,672,000

7,716,000

$ (22,281,000)

$ 1,308,237,000

Increase (Decrease) in Partners' Capital [Roll Forward]

Reclassification of amortization of forward-starting swap included in interest expense

25,310,000

665,000

Ending partners' capital account (shares) at Jun. 30, 2020

16,390,548

60,073,918

Ending partners' capital account at Jun. 30, 2020

1,276,488,000

950,000

$ (25,063,000)

$ 1,300,601,000

Beginning Balance (shares) at Mar. 31, 2020

60,068,228

Beginning Balance at Mar. 31, 2020

1,281,021,000

$ 601,000

1,453,264,000

(150,226,000)

603,000

(23,221,000)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of restricted stock (shares)

9,826,000

$ 2,101,000

$ 7,725,000

7,725,000

2,101,000

6,008

Forfeiture of restricted stock (shares)

(318)

Dividends declared and paid (noncontrolling interest)

(15,293,000)

(12,015,000)

(3,278,000)

Other comprehensive loss - change in value of interest rate swaps

1,252,000

14,000

10,000

4,000

Reclassification of amortization of forward-starting swap included in interest expense

332,000

261,000

71,000

Ending Balance (shares) at Jun. 30, 2020

60,073,918

Ending Balance at Jun. 30, 2020

1,276,488,000

$ 601,000

$ 1,454,516,000

(154,516,000)

352,000

(24,465,000)

Beginning partners' capital account (shares) at Mar. 31, 2020

16,390,548

60,068,228

Beginning partners' capital account at Mar. 31, 2020

1,281,021,000

1,268,000

$ (23,886,000)

$ 1,303,639,000

Increase (Decrease) in Partners' Capital [Roll Forward]

Issuance of restricted units

9,826,000

2,101,000

7,725,000

$ 7,725,000

2,101,000

$ 6,008

Forfeiture of restricted units

(318)

(15,293,000)

$ (3,278,000)

$ (12,015,000)

Other comprehensive loss - change in value of interest rate swaps

1,252,000

$ 1,252,000

$ 14,000

$ 10,000

$ 4,000

Reclassification of amortization of forward-starting swap included in interest expense

$ 332,000

332,000

$ 261,000

$ 71,000

Ending partners' capital account (shares) at Jun. 30, 2020

16,390,548

60,073,918

Ending partners' capital account at Jun. 30, 2020

$ 1,276,488,000

$ 950,000

$ (25,063,000)

$ 1,300,601,000

[1]	Consists of limited partnership interests held by third parties.
[2]	Consists of general partnership interests held by American Assets Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
OPERATING ACTIVITIES
Net income	$ 25,310	$ 27,184
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent revenue and amortization of lease intangibles	(13,191)	2,562
Depreciation and amortization	53,955	43,165
Amortization of debt issuance costs and debt fair value adjustments	742	724
Provision for uncollectable rental income	3,849	520
Gain on sale of real estate	0	(633)
Stock-based compensation expense	2,502	2,229
Lease termination income	0	(4,518)
Other noncash interest expense	(665)	(639)
Other, net	(2,833)	(900)
Changes in operating assets and liabilities
Change in accounts receivable	(3,822)	(177)
Change in other assets	903	1,305
Change in accounts payable and accrued expenses	3,792	3,453
Change in security deposits payable	(631)	(1,380)
Change in other liabilities and deferred credits	(789)	(2,726)
Net cash provided by operating activities	69,122	70,169
INVESTING ACTIVITIES
Acquisition of real estate	0	507,780
Capital expenditures	(35,241)	(47,838)
Proceeds from sale of real estate, net of selling costs	0	8,191
Leasing commissions	(3,892)	(2,623)
Net cash used in investing activities	(39,133)	(550,050)
FINANCING ACTIVITIES
Repayment of secured notes payable	(51,003)	(20,187)
Proceeds from unsecured line of credit	100,000	59,000
Repayment of unsecured line of credit	0	(28,000)
Debt issuance costs	0	(424)
Proceeds from issuance of common stock, net	(119)	503,014
Dividends paid to common stock and unitholders	(38,230)	(36,314)
Net cash provided by financing activities	10,648	477,089
Net increase (decrease) in cash and cash equivalents	40,637	(2,792)
Cash, cash equivalents and restricted cash, beginning of period	109,451	57,272
Cash, cash equivalents and restricted cash, end of period	150,088	54,480
Cash and cash equivalents	146,131	44,778
Restricted cash	3,957	9,702
American Assets Trust, L.P.
OPERATING ACTIVITIES
Net income	25,310	27,184
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent revenue and amortization of lease intangibles	(13,191)	2,562
Depreciation and amortization	53,955	43,165
Amortization of debt issuance costs and debt fair value adjustments	742	724
Provision for uncollectable rental income	3,849	520
Gain on sale of real estate	0	(633)
Stock-based compensation expense	2,502	2,229
Lease termination income	0	(4,518)
Other noncash interest expense	(665)	(639)
Other, net	(2,833)	(900)
Changes in operating assets and liabilities
Change in accounts receivable	(3,822)	(177)
Change in other assets	903	1,305
Change in accounts payable and accrued expenses	3,792	3,453
Change in security deposits payable	(631)	(1,380)
Change in other liabilities and deferred credits	(789)	(2,726)
Net cash provided by operating activities	69,122	70,169
INVESTING ACTIVITIES
Acquisition of real estate	0	507,780
Capital expenditures	(35,241)	(47,838)
Proceeds from sale of real estate, net of selling costs	0	8,191
Leasing commissions	(3,892)	(2,623)
Net cash used in investing activities	(39,133)	(550,050)
FINANCING ACTIVITIES
Repayment of secured notes payable	(51,003)	(20,187)
Proceeds from unsecured line of credit	100,000	59,000
Repayment of unsecured line of credit	0	(28,000)
Debt issuance costs	0	(424)
Contributions from American Assets Trust, Inc.	(119)	503,014
Dividends paid to common stock and unitholders	(38,230)	(36,314)
Net cash provided by financing activities	10,648	477,089
Net increase (decrease) in cash and cash equivalents	40,637	(2,792)
Cash, cash equivalents and restricted cash, beginning of period	109,451	57,272
Cash, cash equivalents and restricted cash, end of period	150,088	54,480
Cash and cash equivalents	146,131	44,778
Restricted cash	$ 3,957	$ 9,702

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business and Organization

American Assets Trust, Inc. (which may be referred to in these financial statements as the “Company,” “we,” “us,” or “our”) is a Maryland corporation formed on July 16, 2010 that did not have any operating activity until the consummation of our initial public offering on January 19, 2011. The Company is the sole general partner of American Assets Trust, L.P., a Maryland limited partnership formed on July 16, 2010 (the “Operating Partnership”). The Company’s operations are carried on through our Operating Partnership and its subsidiaries, including our taxable real estate investment trust ("REIT") subsidiary ("TRS"). Since the formation of our Operating Partnership, the Company has controlled our Operating Partnership as its general partner and has consolidated its assets, liabilities and results of operations.

We are a full service, vertically integrated, and self-administered REIT with approximately 194 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing.

As of June 30, 2020, we owned or had a controlling interest in 28 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of June 30, 2020, we owned land at three of our properties that we classify as held for development and/or construction in progress. A summary of the properties owned by us is as follows:

Retail

Carmel Country Plaza

Gateway Marketplace

Alamo Quarry Market

Carmel Mountain Plaza

Del Monte Center

Hassalo on Eighth - Retail

South Bay Marketplace

Geary Marketplace

Lomas Santa Fe Plaza

The Shops at Kalakaua

Solana Beach Towne Centre

Waikele Center

Office

La Jolla Commons

One Beach Street

Torrey Reserve Campus

First & Main

Torrey Point

Lloyd District Portfolio

Solana Crossing (formerly Solana Beach Corporate Centre)

City Center Bellevue

The Landmark at One Market

Multifamily

Loma Palisades

Hassalo on Eighth - Residential

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Pacific Ridge Apartments

Mixed-Use

Waikiki Beach Walk Retail and Embassy Suites™ Hotel

Held for Development and/or Construction in Progress

La Jolla Commons – Land

Solana Crossing – Land

Lloyd District Portfolio – Construction in Progress

Basis of Presentation

Our consolidated financial statements include the accounts of the Company, our Operating Partnership and our subsidiaries. The equity interests of other investors in our Operating Partnership are reflected as noncontrolling interests.

All significant intercompany transactions and balances are eliminated in consolidation.

The accompanying consolidated financial statements of the Company and the Operating Partnership have been prepared in accordance with the rules applicable to Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (“GAAP”) for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and notes therein included in the Company's and Operating Partnership's annual report on Form 10-K for the year ended December 31, 2019.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using our best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.

Any reference to the number of properties, number of units, square footage, employee numbers or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.

Consolidated Statements of Cash Flows—Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):


	Six Months Ended June 30,
	2020		2019
Supplemental cash flow information
Total interest costs incurred	$	27,327	$	26,808
Interest capitalized	$	524	$	330
Interest expense	$	26,803	$	26,478
Cash paid for interest, net of amounts capitalized	$	26,918	$	26,574
Cash paid for income taxes	$	554	$	601
Supplemental schedule of noncash investing and financing activities
Accounts payable and accrued liabilities for construction in progress	$	18,141	$	12,245







Accrued leasing commissions	$	1,913	$	7,963

Significant Accounting Policies

We describe our significant accounting policies in Note 1 to the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019. Except for the adoption of the accounting standards during the first quarter of 2020 as discussed below, there have been no changes to our significant accounting policies during the six months ended June 30, 2020.

Segment Information

Segment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.

Revenue Recognition and Accounts Receivable

Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks.

We make estimates of the collectability of our current accounts receivable and straight-line rents receivable which requires significant judgment by management. The collectability of receivables is affected by numerous different factors including current economic conditions, including the impact of the tenant bankruptcies, the status of collectability of current cash rents receivable, tenants' recent and historical financial and operating results, changes in our tenants' credit ratings, communications between our operating personnel and tenants, the extent of security deposits and letters of credits held with respect to tenants, and the ability of the tenant to perform under the terms of their lease agreement. The provision for doubtful accounts at June 30, 2020 and December 31, 2019 was approximately $4.9 million and $1.7 million, respectively.

Rent Concessions – COVID-19

During the second quarter of 2020, we provided lease concessions to certain tenants, primarily within the retail segment, as a result of the COVID-19 pandemic, in the form of rent deferrals and abatements. These lease concessions generally included an increase in our rights as a lessor. We account for such lease concessions as lease modifications under Accounting Standards Codification Topic 842, Leases ("ASC 842"). As of June 30, 2020, we have entered into lease modifications that resulted in COVID-19 adjustments (including rent deferrals and other monetary lease concessions) for approximately 5% of the rent originally contracted for the three months ended June 30, 2020.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Topics. The pronouncement requires companies to adopt a new approach to estimating credit losses on certain types of financial instruments, such as trade and other receivables and loans. The standard requires entities to estimate a lifetime expected credit loss for most financial instruments, including trade receivables. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of the pronouncement. We adopted the provisions of ASU No. 2016-13 effective January 1, 2020 and the adoption did not have a material impact on our consolidated financial statements as the majority of our receivables are derived from operating leases and are excluded from this standard.

ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020		December 31, 2019
In-place leases	$	63,535	$	63,896
Accumulated amortization	(35,002)		(32,672)
Above market leases	7,534		7,534
Accumulated amortization	(7,389)		(7,351)
Acquired lease intangible assets, net	$	28,678	$	31,407
Below market leases	$	61,446	$	62,126
Accumulated accretion	(37,934)		(36,674)
Acquired lease intangible liabilities, net	$	23,512	$	25,452

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

1.Level 1 Inputs—quoted prices in active markets for identical assets or liabilities

2.Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities

3.Level 3 Inputs—unobservable inputs

Except as disclosed below, the carrying amounts of our financial instruments approximate their fair value. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

We measure the fair value of our deferred compensation liability, which is included in other liabilities and deferred credits on the consolidated balance sheet, on a recurring basis using Level 2 inputs. We measure the fair value of this liability based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques.

The fair value of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contract at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income (loss) and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings.

We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2020 we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivative. As a result, we have determined that our derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy.

A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands):


	June 30, 2020														December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Deferred compensation liability	$	—	$	1,835	$	—	$	1,835	$	—	$	1,669	$	—	$	1,669
Interest rate swap asset	$	—	$	—	$	—	$	—	$	—	$	434	$	—	$	434
Interest rate swap liability	$	—	$	6,984	$	—	$	6,984	$	—	$	1,317	$	—	$	1,317

The fair value of our secured notes payable and unsecured senior guaranteed notes are sensitive to fluctuations in interest rates. Discounted cash flow analysis using observable market interest rates (Level 2) is generally used to estimate the fair value of our secured notes payable, using rates ranging from 2.2% to 2.9%.

Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying values of our revolving line of credit and term loan set forth below are deemed to be at fair value since the outstanding debt is directly tied to monthly LIBOR contracts. A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):


	June 30, 2020						December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Secured notes payable, net	$	110,902	$	114,333	$	161,879	$	166,885
Unsecured term loans, net	$	248,493	$	250,000	$	248,864	$	250,000
Unsecured senior guaranteed notes, net	$	947,798	$	1,036,529	$	946,916	$	975,291
Unsecured line of credit, net	$	98,948	$	100,000	$	—	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DERIVATIVE AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE AND HEDGING ACTIVITIES

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

On June 20, 2019, we entered into a treasury lock contract (the "June 2019 Treasury Lock") with Wells Fargo Bank, N.A., to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective eleven-year private placement. The treasury lock contract has a notional amount of $100 million, termination date of July 31, 2019, a fixed pay rate of 1.9925%, and a receive rate equal to the ten years treasury rate on the settlement date.

On July 17, 2019, we settled the June 2019 Treasury Lock, resulting in a gain of approximately $0.5 million, which is included in accumulated other comprehensive income and will be amortized to interest expense over ten years. The treasury lock contract has been deemed to be a highly effective cash flow hedge and we elected to designate the treasury lock contract as an accounting hedge.

The following is a summary of the terms of our outstanding interest rate swaps as of June 30, 2020 (dollars in thousands):


Swap Counterparty	Notional Amount		Effective Date	Maturity Date	Fair Value
Bank of America, N.A.	$	100,000	1/9/2019	1/9/2021	$	(1,468)
U.S. Bank N.A.	$	100,000	3/1/2016	3/1/2023	$	(3,691)
Wells Fargo Bank, N.A.	$	50,000	5/2/2016	3/1/2023	$	(1,825)

The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in

which the hedged forecasted transaction affects earnings for as long as hedged cash flows remain probable. During the next twelve months, we estimate that $1.3 million will be reclassified as a decrease to interest expense.The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, counter party credit risk and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

OTHER ASSETS

6 Months Ended

Jun. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

Other assets consist of the following (in thousands):


	June 30, 2020		December 31, 2019
Leasing commissions, net of accumulated amortization of $33,580 and $30,775, respectively	$	41,387	$	42,539
Interest rate swap asset	—		434
Acquired above market leases, net	145		183
Acquired in-place leases, net	28,533		31,224
Lease incentives, net of accumulated amortization of $710 and $565, respectively	1,666		2,603
Other intangible assets, net of accumulated amortization of $1,187 and $1,031, respectively	2,727		2,893
Debt issuance costs, net of accumulated amortization of $0 and $814, respectively	—		1,256

Right-of-use lease asset, net	25,673		4,863
Prepaid expenses and other	7,232		7,225
Total other assets	$	107,363	$	93,220

OTHER LIABILITIES AND DEFERRED CREDITS

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

OTHER LIABILITIES AND DEFERRED CREDITS

Other liabilities and deferred credits consist of the following (in thousands):


	June 30, 2020		December 31, 2019
Acquired below market leases, net	$	23,512	$	25,452
Prepaid rent and deferred revenue	13,255		16,969
Interest rate swap liability	6,984		1,317
Deferred rent expense and lease intangible	22		28
Deferred compensation	1,835		1,669
Deferred tax liability	332		332
Straight-line rent liability	18,067		16,903
Lease liability	26,144		5,380
Other liabilities	37		60
Total other liabilities and deferred credits, net	$	90,188	$	68,110

Straight-line rent liability relates to leases which have rental payments that decrease over time or one-time upfront payments for which the rental revenue is deferred and recognized on a straight-line basis.

DEBT

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

DEBT

Debt of American Assets Trust, Inc.

American Assets Trust, Inc. does not hold any indebtedness. All debt is held directly or indirectly by the Operating Partnership; however, American Assets Trust, Inc. has guaranteed the Operating Partnership's obligations under the (i) amended and restated credit facility, (ii) term loans, and (iii) senior guaranteed notes. Additionally, American Assets Trust, Inc. has provided a carve-out guarantee on property-level mortgage debt at City Center Bellevue.

Debt of American Assets Trust, L.P.

Secured notes payable

The following is a summary of our total secured notes payable outstanding as of June 30, 2020 and December 31, 2019 (in thousands):


	Principal Balance as of						Stated Interest Rate	Stated Maturity Date
Description of Debt	June 30, 2020		December 31, 2019		as of June 30, 2020
Torrey Reserve—VCI, VCII, VCIII ⁽¹⁾⁽²⁾	—		6,498		6.36	%	June 1, 2020
Solana Crossing I-II ⁽¹⁾⁽²⁾	—		10,270		5.91	%	June 1, 2020
Solana Beach Towne Centre ⁽¹⁾⁽²⁾	—		34,235		5.91	%	June 1, 2020
City Center Bellevue ⁽³⁾	111,000		111,000		3.98	%	November 1, 2022
	111,000		162,003

Debt issuance costs, net of accumulated amortization of $323 and $449, respectively	(98)		(124)
Total Secured Notes Payable Outstanding	$	110,902	$	161,879

(1)Loan repaid in full, without premium or penalty, on March 2, 2020.

(2)Principal payments based on a 30-year amortization schedule.

(3)Interest only.

Certain loans require us to comply with various financial covenants. As of June 30, 2020, the Operating Partnership was in compliance with these financial covenants.

Unsecured notes payable

The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of June 30, 2020 and December 31, 2019 (in thousands):


Description of Debt	Principal Balance as of									Stated Interest Rate		Stated Maturity Date
			June 30, 2020			December 31, 2019			as of June 30, 2020
Term Loan A	$	100,000		$	100,000		Variable		⁽¹⁾		January 9, 2021
Senior Guaranteed Notes, Series A	150,000			150,000			4.04	%	⁽²⁾		October 31, 2021
Term Loan B	100,000			100,000			Variable		⁽³⁾		March 1, 2023
Term Loan C	50,000			50,000			Variable		⁽⁴⁾		March 1, 2023
Senior Guaranteed Notes, Series F	100,000			100,000			3.78	%	⁽⁵⁾		July 19, 2024
Senior Guaranteed Notes, Series B	100,000			100,000			4.45	%			February 2, 2025
Senior Guaranteed Notes, Series C	100,000			100,000			4.50	%			April 1, 2025
Senior Guaranteed Notes, Series D	250,000			250,000			4.29	%	⁽⁶⁾		March 1, 2027
Senior Guaranteed Notes, Series E	100,000			100,000			4.24	%	⁽⁷⁾		May 23, 2029
Senior Guaranteed Notes, Series G	150,000			150,000			3.91	%	⁽⁸⁾		July 30, 2030
	1,200,000			1,200,000
Debt issuance costs, net of accumulated amortization of $8,346 and $7,835, respectively	(3,709)			(4,220)
Total Unsecured Notes Payable	$	1,196,291		$	1,195,780

(1)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan A at approximately 4.08% through its stated maturity date, subject to adjustments based on our consolidated leverage ratio.

(2)The Operating Partnership entered into a one-month forward-starting seven years swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million. The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum.

(3)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan B is approximately 2.65%, subject to adjustments based on our consolidated leverage ratio.

(4)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan C is approximately 2.64%, subject to adjustments based on our consolidated leverage ratio.

(5)The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum.

(6)The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million. The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum.

(7)The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum.

(8)The Operating Partnership entered into a treasury lock contract on June 20, 2019, which was settled on July 17, 2019 at a gain of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum.

On July 30, 2019, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $150 million of 3.91% Senior Guaranteed Notes, Series G, due July 30, 2030 (the "Series G Notes"). The Series G Notes were issued on July 30, 2019 and will pay interest semi-annually on the 30th of July and January until their maturity.

The Operating Partnership may prepay at any time all, or from time to time any part of, the Series G Notes, in an amount not less than 5% of the aggregate principal amount of any series of the Series G Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a Make-Whole Amount (as defined in the Note Purchase Agreement for the Series G Notes).

The Note Purchase Agreement for the Series G Notes contains a number of customary financial covenants, including, without limitation, secured and unsecured leverage ratios and fixed charge coverage ratios. Subject to the terms of the Note Purchase Agreement for the Series G Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, Make-Whole Amount or interest under the Series G Notes, and (ii) a default in the payment of certain other indebtedness of the Operating Partnership, the Company or their subsidiaries, the principal and accrued and unpaid interest and the Make-Whole Amount on the outstanding Series G Notes will become due and payable at the option of the Purchasers (as defined in the Note Purchase Agreement for the Series G Notes).

The Operating Partnership’s obligations under the Series G Notes are fully and unconditionally guaranteed by the Company.

Certain loans require us to comply with various financial covenants. As of June 30, 2020, the Operating Partnership was in compliance with these financial covenants.

Amended Term Loan Agreement

On January 9, 2018, we entered into the Third Amendment to the Term Loan Agreement (as so amended, the "Term Loan Agreement"), which maintains the seven years $150 million unsecured term loan (referred to herein as Term Loan B and Term Loan C) to the Operating Partnership that matures on March 1, 2023 (the “$150mm Term Loan”). Effective as of March 1, 2018, borrowings under the Term Loan Agreement with respect to the $150mm Term Loan bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on the Operating Partnership’s consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0%, (b) the prime rate, (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on the Operating Partnership’s consolidated leverage ratio. Additionally, the Operating Partnership may elect for borrowings to bear interest based on a ratings-based pricing grid as per the Operating Partnership’s then-applicable investment grade debt ratings under the terms set forth in the Term Loan Agreement.

Second Amended and Restated Credit Facility

On January 9, 2018, we entered into a second amended and restated credit agreement (the "Second Amended and Restated Credit Facility"). The Second Amended and Restated Credit Facility provides for aggregate, unsecured borrowing of $450 million, consisting of a revolving line of credit of $350 million (the "Revolver Loan") and a term loan of $100 million (the "Term Loan A"). The Second Amended and Restated Credit Facility has an accordion feature that may allow us to increase the availability thereunder up to an additional $250 million, subject to meeting specified requirements and obtaining additional commitments from lenders. At June 30, 2020, there was $100 million outstanding under the Revolver Loan and we had incurred approximately $1.1 million of debt issuance costs, net.

Borrowings under the Second Amended and Restated Credit Agreement initially bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from (a) 1.05% to 1.50% (with respect to the Revolver Loan) and (b) 1.30% to 1.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) LIBOR plus 100 bps, plus a spread which ranges from (i) 0.10% to 0.50% (with respect to the Revolver Loan) and (ii) 0.30% to 0.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio. For the six months ended June 30, 2020, the weighted average interest rate on the Revolver Loan was 1.58%.

The Revolver Loan initially 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 months period. The extension options are exercisable by us subject to the satisfaction of certain conditions.

On January 9, 2019, we entered into the first amendment (“First Amendment”) to the Second Amended and Restated Credit Facility, which extended the maturity date of Term Loan A to January 9, 2021, subject to three, one year extension options. Additionally, in connection with the First Amendment, borrowings under the Second Amended and Restated Credit Facility with respect to Term Loan A bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on our consolidated total leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.20% to 0.70% based on our consolidated total leverage ratio. The foregoing rates are intended to be more

favorable than previously contained in the Second Amended and Restated Credit Facility (prior to entry into the First Amendment) with respect to Term Loan A.

Additionally, the Second Amended and Restated Credit Facility includes a number of customary financial covenants, including:

•A maximum leverage ratio (defined as total indebtedness net of certain cash and cash equivalents to total asset value) of 60%,

•A maximum secured leverage ratio (defined as total secured debt to secured total asset value) of 40%,

•A minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x,

•A minimum unsecured interest coverage ratio of 1.75x,

•A maximum unsecured leverage ratio of 60%, and

•Recourse indebtedness at any time cannot exceed 15% of total asset value.

The Second Amended and Restated Credit Facility provides that our annual distributions may not exceed the greater of (1) 95% of our funds from operation ("FFO") or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax. If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT.

As of June 30, 2020, the Operating Partnership was in compliance with the financial covenants in the Second Amended and Restated Credit Facility.

PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.	6 Months Ended
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.	Jun. 30, 2020
Equity [Abstract]
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.	PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us. Noncontrolling interests consisted of 16,390,548 common units (the “noncontrolling common units”), and represented approximately 21.5% of the ownership interests in our Operating Partnership at June 30, 2020. Common units and shares of our common stock have essentially the same economic characteristics in that common units and shares of our common stock share equally in the total net income or loss distributions of our Operating Partnership. Investors who own common units have the right to cause our Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of our common stock, or, at our election, shares of our common stock on a one-for-one basis. During the six months ended June 30, 2020, no common units were converted into shares of our common stock. Earnings Per Unit of the Operating Partnership Basic earnings (loss) per unit (“EPU”) of the Operating Partnership is computed by dividing income applicable to unitholders by the weighted average Operating Partnership units outstanding, as adjusted for the effect of participating securities. Operating Partnership units granted in equity-based payment transactions that have non-forfeitable dividend equivalent rights are considered participating securities prior to vesting. The impact of unvested Operating Partnership unit awards on EPU has been calculated using the two-class method whereby earnings are allocated to the unvested Operating Partnership unit awards based on distributions and the unvested Operating Partnership units’ participation rights in undistributed earnings. The calculation of diluted EPU for the three months ended June 30, 2020 and 2019 does not include the weighted average of 345,241 and 330,847 unvested Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive to income from continuing operations and net income attributable to the unitholders. The calculation of diluted EPU for the six months ended June 30, 2020 and 2019 does not include the weighted average of 345,199 and 332,054 unvested Operating Partnership units, respectively.

EQUITY OF AMERICAN ASSETS TRUST, INC.

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

EQUITY OF AMERICAN ASSETS TRUST, INC.

Stockholders' Equity

On May 27, 2015, we entered into an at-the-market ("ATM") equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million. On March 2, 2018, we amended certain of these equity programs, terminated one such program and entered into a new equity program with one new sales agent. The sales of shares of our common stock made through the ATM equity program, as amended, are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. During the six months ended June 30, 2020, no shares of common stock were sold through the ATM equity program.

We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of June 30, 2020, we had the capacity to issue up to an additional $132.6 million in shares of our common stock under our ATM equity program. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under the ATM equity program.

Dividends

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 2020:

Period

Amount per
Share/Unit

Period Covered

Dividend Paid Date

First Quarter 2020

0.30

January 1, 2020 to March 31, 2020

March 26, 2020

Second Quarter 2020

0.20

April 1, 2020 to June 30, 2020

June 25, 2020

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders and holders of common units, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation.

Stock-Based Compensation

We follow the FASB guidance related to stock compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer. The guidance also defines a fair value-based method of accounting for an employee stock option or similar equity instrument.

The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2020:


	Units	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2020	345,153	$28.75
Granted	6,008	33.29
Vested	(4,412)	45.35
Forfeited	(318)	29.58
Nonvested at June 30, 2020	346,431	$28.62

We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $1.3 million and $1.1 million in noncash compensation expense for the three-month periods ended June 30, 2020 and 2019, respectively, which is included in general and administrative expense on the consolidated statements of comprehensive income. We recognized $2.5 million and $2.2 million in noncash compensation expense for the six months ended June 30, 2020 and 2019, respectively. Unrecognized compensation expense was $4.8 million at June 30, 2020.

Earnings Per Share

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings. The weighted average unvested shares outstanding, which are considered participating securities, were 345,241 and 330,847 for the three months ended June 30, 2020 and 2019, respectively and 345,199 and 332,054 for the six months ended June 30, 2020 and 2019, respectively. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights.

Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the three and six months ended June 30, 2020 and 2019, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. Additionally, the unvested restricted stock awards subject to time vesting are anti-dilutive for all periods presented, and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.

The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
NUMERATOR
Net income	$	9,826	$	11,941	$	25,310	$	27,184
Less: Net income attributable to restricted shares	(69)		(92)		(173)		(185)
Less: Income from operations attributable to unitholders in the Operating Partnership	(2,101)		(2,933)		(5,413)		(6,988)

Net income attributable to common stockholders—basic	$	7,656	$	8,916	$	19,724	$	20,011
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic	$	7,656	$	8,916	$	19,724	$	20,011
Plus: Income from operations attributable to unitholders in the Operating Partnership	2,101		2,933		5,413		6,988

Net income attributable to common stockholders—diluted	$	9,757	$	11,849	$	25,137	$	26,999
DENOMINATOR
Weighted average common shares outstanding—basic	59,724,139		50,135,978		59,723,605		48,578,872
Effect of dilutive securities—conversion of Operating Partnership units	16,390,548		16,753,806		16,390,548		16,964,537
Weighted average common shares outstanding—diluted	76,114,687		66,889,784		76,114,153		65,543,409

Earnings per common share, basic	$	0.13	$	0.18	$	0.33	$	0.41
Earnings per common share, diluted	$	0.13	$	0.18	$	0.33	$	0.41

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESWe elected to be taxed as a REIT and operate in a manner that allows us to qualify as a REIT for federal income tax purposes commencing with our initial taxable year. As a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. Taxable income from non-REIT activities managed through our TRS is subject to federal and state income taxes. We lease our hotel property to a wholly owned TRS that is subject to federal and state income taxes. We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between GAAP carrying amounts and their respective tax bases. Additionally, we classify certain state taxes as income taxes for financial reporting purposes in accordance with ASC Topic 740, Income Taxes. A deferred tax liability is included in our consolidated balance sheets of $0.3 million and $0.3 million as of June 30, 2020 and December 31, 2019, respectively, in relation to real estate asset basis differences of property subject to state taxes based on income and certain prepaid expenses of our TRS. Income tax expense is recorded in other (expense) income, net on our consolidated statements of comprehensive income. For the three and six months ended June 30, 2020, we recorded income tax benefit of $0.1 million and income tax expense of $0.1 million, respectively. For the three and six months ended June 30, 2019, we recorded income tax expense of $0.2 million and $0.4 million, respectively.

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal We are sometimes involved in various disputes, lawsuits, warranty claims, environmental, and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also, under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Commitments See Footnote 12 for description of our leases, as a lessee. We have management agreements with Outrigger Hotels & Resorts or an affiliate thereof (“Outrigger”) pursuant to which Outrigger manages each of the retail and hotel portions of the Waikiki Beach Walk property. Under the management agreement with Outrigger relating to the retail portion of Waikiki Beach Walk (the “retail management agreement”), we pay Outrigger a monthly management fee of 3.0% of net revenues from the retail portion of Waikiki Beach Walk. Pursuant to the terms of the retail management agreement, if the agreement is terminated in certain instances, including our election not to repair damage or destruction at the property, a condemnation or our failure to make required working capital infusions, we would be obligated to pay Outrigger a termination fee equal to the sum of the management fees paid for the two months immediately preceding the termination date. The retail management agreement may not be terminated by us or by Outrigger without cause. Under our management agreement with Outrigger relating to the hotel portion of Waikiki Beach Walk (the “hotel management agreement”), we pay Outrigger a monthly management fee of 6.0% of the hotel's gross operating profit, as well as 3.0% of the hotel's gross revenues; provided that the aggregate management fee payable to Outrigger for any year shall not exceed 3.5% of the hotel's gross revenues for such fiscal year. Pursuant to the terms of the hotel management agreement, if the agreement is terminated in certain instances, including upon a transfer by us of the hotel or upon a default by us under the hotel management agreement, we would be required to pay a cancellation fee calculated by multiplying (1) the management fees for the previous 12 months by (2) (a) eight, if the agreement is terminated in the first 11 years of its term, or (b) four, three, two or one, if the agreement is terminated in the twelfth, thirteenth, fourteenth or fifteenth year, respectively, of its term. The hotel management agreement may not be terminated by us or by Outrigger without cause. A wholly owned subsidiary of our Operating Partnership, WBW Hotel Lessee LLC, entered into a franchise license agreement with Embassy Suites Franchise LLC, the franchisor of the brand “Embassy Suites™,” to obtain the non-exclusive right to operate the hotel under the Embassy Suites^TM brand for 20 years. The franchise license agreement provides that WBW Hotel Lessee LLC must comply with certain management, operational, record keeping, accounting, reporting and marketing standards and procedures. In connection with this agreement, we are also subject to the terms of a product improvement plan pursuant to which we expect to undertake certain actions to ensure that our hotel's infrastructure is maintained in compliance with the franchisor's brand standards. In addition, we must pay to Embassy Suites Franchise LLC a monthly franchise royalty fee equal to 4.0% of the hotel's gross room revenue through December 2021 and 5.0% of the hotel's gross room revenue thereafter, as well as a monthly program fee equal to 4.0% of the hotel's gross room revenue. If the franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we may be liable to the franchisor for a termination payment, which could be as high as $6.7 million based on operating performance through June 30, 2020. Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and remains in remediation. The final stages of the remediation will include routine, long term ground monitoring by the appropriate regulatory agency over the next five years to seven years. The work performed is financed through an escrow account funded by the seller upon purchase of the Del Monte Center. We believe the funds in the escrow account are sufficient for the remaining work to be performed. However, if further work is required costing more than the remaining escrow funds, we could be required to pay such overage, although we may have a contractual claim for such costs against the prior owner or our environmental remediation consultant. Concentrations of Credit Risk Our properties are located in Southern California, Northern California, Hawaii, Oregon, Texas, and Washington. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory, social, and health factors affecting the markets in which the tenants operate including, without limitation, the impact the COVID-19 pandemic has had on our tenants. Fourteen of our consolidated properties are located in Southern California, which exposes us to greater economic risks than if we owned a more geographically diverse portfolio. Tenants in the retail industry accounted for 26.5% of total revenues for the six months ended June 30, 2020. This makes us susceptible to demand for retail rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the retail industry. Furthermore, tenants in the office industry accounted for 49.4% of total revenues for the six months ended June 30, 2020. This makes us susceptible to demand for office rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the office industry. For the six months ended June 30, 2020 and 2019, no tenant accounted for more than 10% of our total rental revenue.

LEASES

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

Lessor Operating Leases

We determine if an arrangement is a lease at inception. Our lease agreements are generally for real estate, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. We lease real estate under operating leases.

Our leases with office, retail, mixed-use and residential tenants are classified as operating leases. Leases at our office and retail properties and the retail portion of our mixed-use property generally range from three years to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, usually provide for cost recoveries for the tenant’s share of certain operating costs. Our leases may also include variable lease payments in the form of percentage rents based on the tenant’s level of sales achieved in excess of a breakpoint threshold. Leases on apartments generally range from 7 to 15 months, with a majority having 12-month lease terms. Rooms at the hotel portion of our mixed-use property are rented on a nightly basis.

Leases at our office and retail properties and the retail portion of our mixed-use property may contain lease extension options, at our lessee's discretion. The extension options are generally for 3 to 10 years and contain primarily rent at fixed rates or the prevailing market rent. The extension options are generally exercisable 6 to 12 months prior to the expiration of the lease and require the lessee to not be in default of the lease terms.

We attempt to maximize the amount we expect to derive from the underlying real estate property following the end of a lease, to the extent it is not extended. We maintain a proactive leasing and capital improvement program that, combined with the quality and locations of our properties, has made our properties attractive to tenants. However, the residual value of a real estate property is still subject to various market-specific, asset-specific, and tenant-specific risks and characteristics.

As of June 30, 2020, minimum future rentals from noncancelable operating leases, before any reserve for uncollectible amounts and assuming no early lease terminations, at our office and retail properties and the retail portion of our mixed-use property are as follows (in thousands):


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	102,236
2021	223,471
2022	209,162
2023	188,651
2024	158,172
Thereafter	565,253
Total	$	1,446,945

The above future minimum rentals exclude residential leases, which typically have a term of 12 months or less, and exclude the hotel, as rooms are rented on a nightly basis.

Lessee Operating Leases

At the Landmark at One Market, we lease, as lessee, a building adjacent to the Landmark at One Market under an operating lease effective through June 30, 2026, which we have the option to extend until 2031 by way of the remaining five years extension option (the "Annex Lease"). The lease payments under the extension option provided for under the Annex Lease will be equal to the fair rental value at the time the extension option is exercised. The extension option is included in the calculation of the right-of-use asset and lease liability as we are reasonably certain of exercising the extension option. During 2020, we exercised a five years extension option to extend the Annex Lease through June 30, 2026.

At Waikiki Beach Walk, we lease a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021.

Our lease agreements do not contain any residual value guarantees or material restrictive covenants. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments.

Current annual payments under the operating leases are as follows, as of June 30, 2020 (in thousands):


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	1,730
2021	3,502
2022	2,697
2023	2,697
2024	2,697
Thereafter	17,533
Total lease payments	$	30,856
Imputed interest	$	(4,712)
Present value of lease liability	$	26,144

Lease costs under the operating leases are as follows (in thousands):


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020			2019
Operating lease cost	$	945	$	833	$	1,790		$	1,667
Variable lease cost	—		—		—			—
Sublease income	(1,073)		(633)		(1,941)			(1,258)
Total lease (income) cost	$	(128)	$	200	$	(151)		$	409

Weighted-average remaining lease term - operating leases (in years)					10.6
Weighted-average discount rate - operating leases					3.23		%

Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):


	Six Months Ended June 30,
	2020		2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,692	$	1,655
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	22,188	$	7,661

Subleases

At the Landmark at One Market, we (as sublandlord) sublease the Annex Lease building under operating leases effective through December 31, 2029. The subleases contain extension options, subject to our ability to extend the Annex Lease, that can extend the subleases through December 31, 2039 at the fair rental value at the time the extension option is exercised.

At Waikiki Beach Walk, we (as sublandlord) sublease a portion of the building to Quiksilver under an operating lease effective through December 31, 2021.

LEASES

Lessor Operating Leases


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	102,236
2021	223,471
2022	209,162
2023	188,651
2024	158,172
Thereafter	565,253
Total	$	1,446,945

The above future minimum rentals exclude residential leases, which typically have a term of 12 months or less, and exclude the hotel, as rooms are rented on a nightly basis.

Lessee Operating Leases

At Waikiki Beach Walk, we lease a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021.

Current annual payments under the operating leases are as follows, as of June 30, 2020 (in thousands):


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	1,730
2021	3,502
2022	2,697
2023	2,697
2024	2,697
Thereafter	17,533
Total lease payments	$	30,856
Imputed interest	$	(4,712)
Present value of lease liability	$	26,144

Lease costs under the operating leases are as follows (in thousands):


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020			2019
Operating lease cost	$	945	$	833	$	1,790		$	1,667
Variable lease cost	—		—		—			—
Sublease income	(1,073)		(633)		(1,941)			(1,258)
Total lease (income) cost	$	(128)	$	200	$	(151)		$	409

Weighted-average remaining lease term - operating leases (in years)					10.6
Weighted-average discount rate - operating leases					3.23		%

Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):


	Six Months Ended June 30,
	2020		2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,692	$	1,655
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	22,188	$	7,661

Subleases

At Waikiki Beach Walk, we (as sublandlord) sublease a portion of the building to Quiksilver under an operating lease effective through December 31, 2021.

COMPONENTS OF RENTAL INCOME AND EXPENSE

6 Months Ended

Jun. 30, 2020

Revenue Recognition and Deferred Revenue [Abstract]

COMPONENTS OF RENTAL INCOME AND EXPENSE

The principal components of rental income are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Lease rental income
Office	$	42,484	$	28,564	$	84,697	$	54,712
Retail	20,909		25,021		45,864		49,470
Multifamily	11,643		11,975		23,610		23,971
Mixed-use	2,504		3,886		6,436		7,763
Percentage rent	23		289		324		555
Hotel revenue	1,143		9,466		9,268		19,108
Other	524		455		1,101		908
Total rental income	$	79,230	$	79,656	$	171,300	$	156,487

Lease rental income include $8.5 million and $(4.5) million for the three months ended June 30, 2020 and 2019, respectively, and $11.3 million and $(4.3) million for the six months ended June 30, 2020 and 2019, respectively, to recognize lease rental income on a straight-line basis. In addition, net amortization of above and below market leases included in lease rental income were $1.0 million and $0.8 million for the three months ended June 30, 2020 and 2019, respectively, and $1.9 million and $1.7 million for the six months ended June 30, 2020 and 2019, respectively.

The principal components of rental expenses are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Rental operating	$	8,695	$	9,008	$	18,577	$	17,559
Hotel operating	1,993		6,036		7,740		12,009
Repairs and maintenance	4,320		3,971		8,617		7,430
Marketing	379		568		886		1,114
Rent	952		849		1,805		1,690
Hawaii excise tax	507		914		1,372		1,858
Management fees	135		480		552		962
Total rental expenses	$	16,981	$	21,826	$	39,549	$	42,622

OTHER INCOME (EXPENSE), NET

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

OTHER INCOME (EXPENSE), NET

The principal components of other expense, net, are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Interest and investment income	$	71	$	156	$	383	$	163
Income tax benefit (expense)	91		(206)		(115)		(442)
Other non-operating income	—		—		2		—
Total other income (expense), net	$	162	$	(50)	$	270	$	(279)

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS During the first quarter of 2019, we terminated a lease agreement with American Assets, Inc. ("AAI"), an entity owned and controlled by Ernest Rady, our CEO, President, and Chairman of Board, and entered into a new lease agreement with AAI for office space at Torrey Reserve Campus. Rents commenced on March 1, 2019 for an initial lease term of three years at an average annual rental rate of $0.2 million. Rental revenue recognized on the AAI leases of $0.1 million and $0.1 million for the six months ended June 30, 2020 and 2019, respectively, is included in rental income on the statements of comprehensive income. On occasion, the Company utilizes aircraft services provided by AAI Aviation, Inc. ("AAIA"), an entity owned and controlled by Mr. Rady. For the six months ended June 30, 2020 and 2019, we incurred approximately $0.0 million and $0.2 million, respectively, of expenses related to aircraft services of AAIA or reimbursement to Mr. Rady (or the Ernest Rady Trust U/D/T March 13, 1983) for use of the aircraft owned by AAIA. These expenses are recorded as general and administrative expenses in our consolidated statements of comprehensive income. The Waikiki Beach Walk entities have a 47.7% investment in WBW CHP LLC, an entity that was formed to, among other things, construct a chilled water plant to provide air conditioning to the property and other adjacent facilities. The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $0.5 million and $0.5 million for the six months ended June 30, 2020 and 2019, respectively, are included in rental expenses on the consolidated statements of comprehensive income.

SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.

We evaluate the performance of our segments based on segment profit, which is defined as property revenue less property expenses. We do not use asset information as a measure to assess performance and make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.

Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.

The following table represents operating activity within our reportable segments (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total Office
Property revenue	43,880		30,200		$	88,389	$	58,006
Property expense	(11,601)		(9,269)		(23,394)		(17,758)
Segment profit	32,279		20,931		64,995		40,248
Total Retail
Property revenue	$	21,492	$	25,871	47,318		55,308
Property expense	(4,907)		(7,731)		(12,238)		(14,885)
Segment profit	16,585		18,140		35,080		40,423
Total Multifamily
Property revenue	12,463		12,897		25,288		25,796
Property expense	(5,313)		(4,883)		(10,823)		(9,956)
Segment profit	7,150		8,014		14,465		15,840
Total Mixed-Use
Property revenue	4,274		15,145		17,857		30,322
Property expense	(4,121)		(9,218)		(13,100)		(18,344)
Segment profit	153		5,927		4,757		11,978
Total segments’ profit	$	56,167	$	53,012	$	119,297	$	108,489

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total segments’ profit	$	56,167	$	53,012	$	119,297	$	108,489
General and administrative	(6,679)		(5,943)		(13,499)		(12,016)
Depreciation and amortization	(26,493)		(22,582)		(53,955)		(43,165)
Interest expense	(13,331)		(13,129)		(26,803)		(26,478)
Gain on sale of real estate	—		633		—		633
Other income (expense), net	162		(50)		270		(279)





Net income	9,826		11,941		25,310		27,184
Net income attributable to restricted shares	(69)		(92)		(173)		(185)
Net income attributable to unitholders in the Operating Partnership	(2,101)		(2,933)		(5,413)		(6,988)
Net income attributable to American Assets Trust, Inc. stockholders	$	7,656	$	8,916	$	19,724	$	20,011

The following table shows net real estate and secured note payable balances for each of the segments (in thousands):


	June 30, 2020		December 31, 2019
Net Real Estate
Office	$	1,319,025	$	1,317,854
Retail	617,530		624,912
Multifamily	395,254		401,152
Mixed-Use	180,264		179,557
	$	2,512,073	$	2,523,475
Secured Notes Payable ⁽¹⁾
Office	$	111,000	$	127,768
Retail	—		34,235


	$	111,000	$	162,003

(1)Excludes debt issuance costs of $0.1 million and $0.1 million for each of the periods ended June 30, 2020 and December 31, 2019, respectively.

Capital expenditures for each segment for the three and six months ended June 30, 2020 and 2019 were as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Capital Expenditures ⁽¹⁾
Office	$	9,281	$	17,418	$	27,481	$	33,901
Retail	2,805		6,650		6,363		11,441
Multifamily	860		685		2,144		1,456
Mixed-Use	2,262		3,271		3,145		3,663
	$	15,208	$	28,024	$	39,133	$	50,461

(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Business and Organization

Retail

Carmel Country Plaza

Gateway Marketplace

Alamo Quarry Market

Carmel Mountain Plaza

Del Monte Center

Hassalo on Eighth - Retail

South Bay Marketplace

Geary Marketplace

Lomas Santa Fe Plaza

The Shops at Kalakaua

Solana Beach Towne Centre

Waikele Center

Office

La Jolla Commons

One Beach Street

Torrey Reserve Campus

First & Main

Torrey Point

Lloyd District Portfolio

Solana Crossing (formerly Solana Beach Corporate Centre)

City Center Bellevue

The Landmark at One Market

Multifamily

Loma Palisades

Hassalo on Eighth - Residential

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Pacific Ridge Apartments

Mixed-Use

Waikiki Beach Walk Retail and Embassy Suites™ Hotel

Held for Development and/or Construction in Progress

La Jolla Commons – Land

Solana Crossing – Land

Lloyd District Portfolio – Construction in Progress

Basis of Presentation

All significant intercompany transactions and balances are eliminated in consolidation.

Significant Accounting Policies

Significant Accounting PoliciesWe describe our significant accounting policies in Note 1 to the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019. Except for the adoption of the accounting standards during the first quarter of 2020 as discussed below, there have been no changes to our significant accounting policies during the six months ended June 30, 2020.

Segment Information

Segment InformationSegment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.

Revenue Recognition, Leases

Revenue Recognition and Accounts Receivable

Rent Concessions – COVID-19

Recent Accounting Pronouncements

Fair Value Measurement

A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

1.Level 1 Inputs—quoted prices in active markets for identical assets or liabilities

2.Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities

3.Level 3 Inputs—unobservable inputs

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Consolidated Statements of Cash Flows-Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):


	Six Months Ended June 30,
	2020		2019
Supplemental cash flow information
Total interest costs incurred	$	27,327	$	26,808
Interest capitalized	$	524	$	330
Interest expense	$	26,803	$	26,478
Cash paid for interest, net of amounts capitalized	$	26,918	$	26,574
Cash paid for income taxes	$	554	$	601
Supplemental schedule of noncash investing and financing activities
Accounts payable and accrued liabilities for construction in progress	$	18,141	$	12,245







Accrued leasing commissions	$	1,913	$	7,963

ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of acquired lease intangibles included in other assets and other liabilities


	June 30, 2020		December 31, 2019
In-place leases	$	63,535	$	63,896
Accumulated amortization	(35,002)		(32,672)
Above market leases	7,534		7,534
Accumulated amortization	(7,389)		(7,351)
Acquired lease intangible assets, net	$	28,678	$	31,407
Below market leases	$	61,446	$	62,126
Accumulated accretion	(37,934)		(36,674)
Acquired lease intangible liabilities, net	$	23,512	$	25,452

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Financial liabilities measured at fair value on recurring basis

A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands):


	June 30, 2020														December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Deferred compensation liability	$	—	$	1,835	$	—	$	1,835	$	—	$	1,669	$	—	$	1,669
Interest rate swap asset	$	—	$	—	$	—	$	—	$	—	$	434	$	—	$	434
Interest rate swap liability	$	—	$	6,984	$	—	$	6,984	$	—	$	1,317	$	—	$	1,317

Carrying amount and fair value of financial instruments

A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):


	June 30, 2020						December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Secured notes payable, net	$	110,902	$	114,333	$	161,879	$	166,885
Unsecured term loans, net	$	248,493	$	250,000	$	248,864	$	250,000
Unsecured senior guaranteed notes, net	$	947,798	$	1,036,529	$	946,916	$	975,291
Unsecured line of credit, net	$	98,948	$	100,000	$	—	$	—

DERIVATIVE AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

The following is a summary of the terms of our outstanding interest rate swaps as of June 30, 2020 (dollars in thousands):


Swap Counterparty	Notional Amount		Effective Date	Maturity Date	Fair Value
Bank of America, N.A.	$	100,000	1/9/2019	1/9/2021	$	(1,468)
U.S. Bank N.A.	$	100,000	3/1/2016	3/1/2023	$	(3,691)
Wells Fargo Bank, N.A.	$	50,000	5/2/2016	3/1/2023	$	(1,825)

OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Components of Other Assets

Other assets consist of the following (in thousands):


	June 30, 2020		December 31, 2019
Leasing commissions, net of accumulated amortization of $33,580 and $30,775, respectively	$	41,387	$	42,539
Interest rate swap asset	—		434
Acquired above market leases, net	145		183
Acquired in-place leases, net	28,533		31,224
Lease incentives, net of accumulated amortization of $710 and $565, respectively	1,666		2,603
Other intangible assets, net of accumulated amortization of $1,187 and $1,031, respectively	2,727		2,893
Debt issuance costs, net of accumulated amortization of $0 and $814, respectively	—		1,256

Right-of-use lease asset, net	25,673		4,863
Prepaid expenses and other	7,232		7,225
Total other assets	$	107,363	$	93,220

OTHER LIABILITIES AND DEFERRED CREDITS (Tables)

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Other liabilities and deferred credits

Other liabilities and deferred credits consist of the following (in thousands):


	June 30, 2020		December 31, 2019
Acquired below market leases, net	$	23,512	$	25,452
Prepaid rent and deferred revenue	13,255		16,969
Interest rate swap liability	6,984		1,317
Deferred rent expense and lease intangible	22		28
Deferred compensation	1,835		1,669
Deferred tax liability	332		332
Straight-line rent liability	18,067		16,903
Lease liability	26,144		5,380
Other liabilities	37		60
Total other liabilities and deferred credits, net	$	90,188	$	68,110

DEBT (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Summary of total secured notes payable outstanding

The following is a summary of our total secured notes payable outstanding as of June 30, 2020 and December 31, 2019 (in thousands):


	Principal Balance as of						Stated Interest Rate	Stated Maturity Date
Description of Debt	June 30, 2020		December 31, 2019		as of June 30, 2020
Torrey Reserve—VCI, VCII, VCIII ⁽¹⁾⁽²⁾	—		6,498		6.36	%	June 1, 2020
Solana Crossing I-II ⁽¹⁾⁽²⁾	—		10,270		5.91	%	June 1, 2020
Solana Beach Towne Centre ⁽¹⁾⁽²⁾	—		34,235		5.91	%	June 1, 2020
City Center Bellevue ⁽³⁾	111,000		111,000		3.98	%	November 1, 2022
	111,000		162,003

Debt issuance costs, net of accumulated amortization of $323 and $449, respectively	(98)		(124)
Total Secured Notes Payable Outstanding	$	110,902	$	161,879

(1)Loan repaid in full, without premium or penalty, on March 2, 2020.

(2)Principal payments based on a 30-year amortization schedule.

(3)Interest only.

The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of June 30, 2020 and December 31, 2019 (in thousands):


Description of Debt	Principal Balance as of									Stated Interest Rate		Stated Maturity Date
			June 30, 2020			December 31, 2019			as of June 30, 2020
Term Loan A	$	100,000		$	100,000		Variable		⁽¹⁾		January 9, 2021
Senior Guaranteed Notes, Series A	150,000			150,000			4.04	%	⁽²⁾		October 31, 2021
Term Loan B	100,000			100,000			Variable		⁽³⁾		March 1, 2023
Term Loan C	50,000			50,000			Variable		⁽⁴⁾		March 1, 2023
Senior Guaranteed Notes, Series F	100,000			100,000			3.78	%	⁽⁵⁾		July 19, 2024
Senior Guaranteed Notes, Series B	100,000			100,000			4.45	%			February 2, 2025
Senior Guaranteed Notes, Series C	100,000			100,000			4.50	%			April 1, 2025
Senior Guaranteed Notes, Series D	250,000			250,000			4.29	%	⁽⁶⁾		March 1, 2027
Senior Guaranteed Notes, Series E	100,000			100,000			4.24	%	⁽⁷⁾		May 23, 2029
Senior Guaranteed Notes, Series G	150,000			150,000			3.91	%	⁽⁸⁾		July 30, 2030
	1,200,000			1,200,000
Debt issuance costs, net of accumulated amortization of $8,346 and $7,835, respectively	(3,709)			(4,220)
Total Unsecured Notes Payable	$	1,196,291		$	1,195,780

EQUITY OF AMERICAN ASSETS TRUST, INC. (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Dividends declared and paid on shares of common stock and noncontrolling common units

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 2020:

Period

Amount per
Share/Unit

Period Covered

Dividend Paid Date

First Quarter 2020

0.30

January 1, 2020 to March 31, 2020

March 26, 2020

Second Quarter 2020

0.20

April 1, 2020 to June 30, 2020

June 25, 2020

Activity of restricted stock awards

The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2020:


	Units	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2020	345,153	$28.75
Granted	6,008	33.29
Vested	(4,412)	45.35
Forfeited	(318)	29.58
Nonvested at June 30, 2020	346,431	$28.62

Computation of basic and diluted EPS

The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
NUMERATOR
Net income	$	9,826	$	11,941	$	25,310	$	27,184
Less: Net income attributable to restricted shares	(69)		(92)		(173)		(185)
Less: Income from operations attributable to unitholders in the Operating Partnership	(2,101)		(2,933)		(5,413)		(6,988)

Net income attributable to common stockholders—basic	$	7,656	$	8,916	$	19,724	$	20,011
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic	$	7,656	$	8,916	$	19,724	$	20,011
Plus: Income from operations attributable to unitholders in the Operating Partnership	2,101		2,933		5,413		6,988

Net income attributable to common stockholders—diluted	$	9,757	$	11,849	$	25,137	$	26,999
DENOMINATOR
Weighted average common shares outstanding—basic	59,724,139		50,135,978		59,723,605		48,578,872
Effect of dilutive securities—conversion of Operating Partnership units	16,390,548		16,753,806		16,390,548		16,964,537
Weighted average common shares outstanding—diluted	76,114,687		66,889,784		76,114,153		65,543,409

Earnings per common share, basic	$	0.13	$	0.18	$	0.33	$	0.41
Earnings per common share, diluted	$	0.13	$	0.18	$	0.33	$	0.41

LEASES (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Current minimum future rentals under the leases


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	102,236
2021	223,471
2022	209,162
2023	188,651
2024	158,172
Thereafter	565,253
Total	$	1,446,945

Current minimum annual payments under the leases

Current annual payments under the operating leases are as follows, as of June 30, 2020 (in thousands):


Year Ending December 31,
2020 (six months ending December 31, 2020)	$	1,730
2021	3,502
2022	2,697
2023	2,697
2024	2,697
Thereafter	17,533
Total lease payments	$	30,856
Imputed interest	$	(4,712)
Present value of lease liability	$	26,144

Lease costs under operating leases and supplemental cash flow information of leases

Lease costs under the operating leases are as follows (in thousands):


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020			2019
Operating lease cost	$	945	$	833	$	1,790		$	1,667
Variable lease cost	—		—		—			—
Sublease income	(1,073)		(633)		(1,941)			(1,258)
Total lease (income) cost	$	(128)	$	200	$	(151)		$	409

Weighted-average remaining lease term - operating leases (in years)					10.6
Weighted-average discount rate - operating leases					3.23		%

Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):


	Six Months Ended June 30,
	2020		2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,692	$	1,655
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	22,188	$	7,661

COMPONENTS OF RENTAL INCOME AND EXPENSE (Tables)

6 Months Ended

Jun. 30, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Principal components of rental income

The principal components of rental income are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Lease rental income
Office	$	42,484	$	28,564	$	84,697	$	54,712
Retail	20,909		25,021		45,864		49,470
Multifamily	11,643		11,975		23,610		23,971
Mixed-use	2,504		3,886		6,436		7,763
Percentage rent	23		289		324		555
Hotel revenue	1,143		9,466		9,268		19,108
Other	524		455		1,101		908
Total rental income	$	79,230	$	79,656	$	171,300	$	156,487

Principal components of rental expenses

The principal components of rental expenses are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Rental operating	$	8,695	$	9,008	$	18,577	$	17,559
Hotel operating	1,993		6,036		7,740		12,009
Repairs and maintenance	4,320		3,971		8,617		7,430
Marketing	379		568		886		1,114
Rent	952		849		1,805		1,690
Hawaii excise tax	507		914		1,372		1,858
Management fees	135		480		552		962
Total rental expenses	$	16,981	$	21,826	$	39,549	$	42,622

OTHER INCOME (EXPENSE), NET (Tables)

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Principal components of other expense, net

The principal components of other expense, net, are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Interest and investment income	$	71	$	156	$	383	$	163
Income tax benefit (expense)	91		(206)		(115)		(442)
Other non-operating income	—		—		2		—
Total other income (expense), net	$	162	$	(50)	$	270	$	(279)

SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of segments operating activity

The following table represents operating activity within our reportable segments (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total Office
Property revenue	43,880		30,200		$	88,389	$	58,006
Property expense	(11,601)		(9,269)		(23,394)		(17,758)
Segment profit	32,279		20,931		64,995		40,248
Total Retail
Property revenue	$	21,492	$	25,871	47,318		55,308
Property expense	(4,907)		(7,731)		(12,238)		(14,885)
Segment profit	16,585		18,140		35,080		40,423
Total Multifamily
Property revenue	12,463		12,897		25,288		25,796
Property expense	(5,313)		(4,883)		(10,823)		(9,956)
Segment profit	7,150		8,014		14,465		15,840
Total Mixed-Use
Property revenue	4,274		15,145		17,857		30,322
Property expense	(4,121)		(9,218)		(13,100)		(18,344)
Segment profit	153		5,927		4,757		11,978
Total segments’ profit	$	56,167	$	53,012	$	119,297	$	108,489

Reconciliation of segment profit to net income attributable to stockholders

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total segments’ profit	$	56,167	$	53,012	$	119,297	$	108,489
General and administrative	(6,679)		(5,943)		(13,499)		(12,016)
Depreciation and amortization	(26,493)		(22,582)		(53,955)		(43,165)
Interest expense	(13,331)		(13,129)		(26,803)		(26,478)
Gain on sale of real estate	—		633		—		633
Other income (expense), net	162		(50)		270		(279)





Net income	9,826		11,941		25,310		27,184
Net income attributable to restricted shares	(69)		(92)		(173)		(185)
Net income attributable to unitholders in the Operating Partnership	(2,101)		(2,933)		(5,413)		(6,988)
Net income attributable to American Assets Trust, Inc. stockholders	$	7,656	$	8,916	$	19,724	$	20,011

Net real estate and secured note payable balances by segments

The following table shows net real estate and secured note payable balances for each of the segments (in thousands):


	June 30, 2020		December 31, 2019
Net Real Estate
Office	$	1,319,025	$	1,317,854
Retail	617,530		624,912
Multifamily	395,254		401,152
Mixed-Use	180,264		179,557
	$	2,512,073	$	2,523,475
Secured Notes Payable ⁽¹⁾
Office	$	111,000	$	127,768
Retail	—		34,235


	$	111,000	$	162,003

(1)Excludes debt issuance costs of $0.1 million and $0.1 million for each of the periods ended June 30, 2020 and December 31, 2019, respectively.

Capital expenditures for each segment

Capital expenditures for each segment for the three and six months ended June 30, 2020 and 2019 were as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Capital Expenditures ⁽¹⁾
Office	$	9,281	$	17,418	$	27,481	$	33,901
Retail	2,805		6,650		6,363		11,441
Multifamily	860		685		2,144		1,456
Mixed-Use	2,262		3,271		3,145		3,663
	$	15,208	$	28,024	$	39,133	$	50,461

(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020 USD ($) Employee Property Room	Jun. 30, 2020 USD ($) Employee Property Segment Room	Dec. 31, 2019 USD ($)
Accounting Policies [Abstract]
Number of employees \| Employee	194	194
Office, retail, multifamily, and mixed-use operating properties	28	28
Properties held for development	3	3
Number of operating segments \| Segment		4
Room in mixed-use segment all-suite hotel \| Room	369	369
Allowance for Doubtful Accounts, Rent Receivables \| $	$ 4.9	$ 4.9	$ 1.7
Lease Concessions	5.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplement Disclosures Related to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Accounting Policies [Abstract]
Total interest costs incurred			$ 27,327	$ 26,808
Interest capitalized			524	330
Interest expense	$ 13,331	$ 13,129	26,803	26,478
Cash paid for interest, net of amounts capitalized			26,918	26,574
Cash paid for income taxes			554	601
Accounts payable and accrued liabilities for construction in progress			18,141	12,245
Accrued leasing commissions			$ 1,913	$ 7,963

ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES Acquired Lease Intangibles and Leasing Costs Included in Other Assets and Other Liabilities and Deferred Credits (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Leases, gross	$ 145	$ 183
Accumulated amortization	(1,187)	(1,031)
Below market leases	61,446	62,126
Accumulated accretion	(37,934)	(36,674)
Acquired lease intangible liabilities, net	23,512	25,452
Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired lease intangible assets, net	28,678	31,407
In-place leases
Acquired Finite-Lived Intangible Assets [Line Items]
Leases, gross	63,535	63,896
Accumulated amortization	(35,002)	(32,672)
Above market leases
Acquired Finite-Lived Intangible Assets [Line Items]
Leases, gross	7,534	7,534
Accumulated amortization	$ (7,389)	$ (7,351)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Inputs, Level 2	Jun. 30, 2020
Minimum
Fair Value Inputs Disclosures
Fair value assumptions, interest rate (as a percent)	0.022
Maximum
Fair Value Inputs Disclosures
Fair value assumptions, interest rate (as a percent)	0.029

FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Liabilities Fair Value Measurement on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation liability	$ 1,835	$ 1,669
Interest rate swap asset	0	434
Interest rate swap liability	6,984	1,317
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation liability	0	0
Interest rate swap asset	0	0
Interest rate swap liability	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation liability	1,835	1,669
Interest rate swap asset	0	434
Interest rate swap liability	6,984	1,317
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation liability	0	0
Interest rate swap asset	0	0
Interest rate swap liability	$ 0	$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Secured notes payable, net \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 110,902	$ 161,879
Unsecured term loans, net \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	248,493	248,864
Unsecured senior guaranteed notes, net \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	947,798	946,916
Unsecured line of credit, net \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	98,948	0
Fair Value, Inputs, Level 2 \| Secured notes payable, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	114,333	166,885
Fair Value, Inputs, Level 2 \| Unsecured term loans, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	250,000	250,000
Fair Value, Inputs, Level 2 \| Unsecured senior guaranteed notes, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,036,529	975,291
Fair Value, Inputs, Level 2 \| Unsecured line of credit, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 100,000	$ 0

DERIVATIVE AND HEDGING ACTIVITIES (Details) - USD ($)							6 Months Ended
DERIVATIVE AND HEDGING ACTIVITIES (Details) - USD ($)	Jul. 17, 2019	Jun. 20, 2019	May 11, 2017	Jan. 18, 2017	Sep. 19, 2014	Aug. 19, 2014	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Estimated derivative reclassification from Accumulated OCI to Income							$ 1,300,000
American Assets Trust, L.P. \| Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative contract term						7 years
Gain on derivative settlement	$ 500,000		$ 700,000	$ 10,400,000	$ 1,600,000
Designated as Hedging Instrument \| Cash Flow Hedging \| American Assets Trust, L.P. \| Interest Rate Swap, 1/9/2021 \| Bank of America, N.A.
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount							$ 100,000,000
Effective Date							Jan. 09, 2019
Maturity Date							Jan. 09, 2021
Interest rate swap liability							$ (1,468,000)
Designated as Hedging Instrument \| Cash Flow Hedging \| American Assets Trust, L.P. \| Interest Rate Swap, 3/1/2023 \| U.S. Bank N.A.
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount							$ 100,000,000
Effective Date							Mar. 01, 2016
Maturity Date							Mar. 01, 2023
Interest rate swap liability							$ (3,691,000)
Designated as Hedging Instrument \| Cash Flow Hedging \| American Assets Trust, L.P. \| Interest Rate Swap, 3/1/2023 \| Wells Fargo Bank, N.A.
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount							$ 50,000,000
Effective Date							May 02, 2016
Maturity Date							Mar. 01, 2023
Interest rate swap liability							$ (1,825,000)
Designated as Hedging Instrument \| Cash Flow Hedging \| American Assets Trust, L.P. \| Treasury Lock \| Wells Fargo Bank, N.A.
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative fixed interest rate (in percent)		1.9925%
Derivative contract term		10 years
Notional Amount		$ 100,000,000
Maturity Date		Jul. 31, 2019
Amortization Period of Deferred Gain (Loss) on Discontinuation of Fair Value Hedge		10 years

OTHER ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Leasing commissions, net of accumulated amortization of $33,580 and $30,775, respectively	$ 41,387	$ 42,539
Interest rate swap asset	0	434
Acquired above market leases, net	145	183
Acquired in-place leases, net	28,533	31,224
Lease incentives, net of accumulated amortization of $710 and $565, respectively	1,666	2,603
Other intangible assets, net of accumulated amortization of $1,187 and $1,031, respectively	2,727	2,893
Debt Issuance Costs, Net	0	1,256
Right-of-use lease asset, net	25,673	4,863
Prepaid expenses and other	7,232	7,225
Total other assets	107,363	93,220
Leasing commissions, accumulative amortization	33,580	30,775
Lease incentives, accumulated amortization	710	565
Other intangible assets, accumulated amortization	1,187	1,031
Debt issuance costs, accumulated amortization	$ 0	$ 814

OTHER LIABILITIES AND DEFERRED CREDITS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Acquired below market leases, net	$ 23,512	$ 25,452
Prepaid rent and deferred revenue	13,255	16,969
Interest rate swap liability	6,984	1,317
Deferred rent expense and lease intangible	22	28
Deferred compensation	1,835	1,669
Deferred tax liability	332	332
Straight-line rent liability	18,067	16,903
Lease liability	26,144	5,380
Other liabilities	37	60
Total other liabilities and deferred credits, net	$ 90,188	$ 68,110

DEBT - Summary of Total Secured Notes Payable Outstanding (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2020

Dec. 31, 2019

$ 0

$ (1,256)

American Assets Trust, L.P. | Secured notes payable, net

814

111,000

162,003

Period of amortization schedule (in years)

(98)

(124)

Total Debt Outstanding

$ 110,902

161,879

30 years

American Assets Trust, L.P. | Secured notes payable, net | Torrey Reserve

$ 323

449

^[1],[2]

$ 0

6,498

^[1],[2]

6.36%

American Assets Trust, L.P. | Secured notes payable, net | Solana Beach Corporate Centre One To Two

^[1],[2]

Jun. 01, 2020

^[1],[2]

$ 0

10,270

^[1],[2]

5.91%

American Assets Trust, L.P. | Secured notes payable, net | Solana Beach Towne Centre

^[1],[2]

Jun. 01, 2020

^[1],[2]

$ 0

34,235

^[1],[2]

5.91%

American Assets Trust, L.P. | Secured notes payable, net | City Center Bellevue

^[1],[2]

Jun. 01, 2020

^[3]

$ 111,000

^[3]

3.98%

^[3]

Nov. 01, 2022

[1]	Loan repaid in full, without premium or penalty, on March 2, 2020.
[2]	Principal payments based on a 30-year amortization schedule.
[3]	Interest only.

DEBT - Summary of Total Unsecured Notes Payable Outstanding (Details) - USD ($)
$ in Thousands

6 Months Ended

Jul. 17, 2019

Jun. 23, 2017

May 11, 2017

Jan. 18, 2017

Sep. 19, 2014

Aug. 19, 2014

Jun. 30, 2020

Dec. 31, 2019

Dec. 31, 2017

$ 0

$ (1,256)

American Assets Trust, L.P. | Forward Contracts

814

Gain on derivative settlement

Derivative contract term

7 years

$ 500

$ 700

$ 10,400

$ 1,600

Loss on derivative settlement

$ 500

American Assets Trust, L.P. | Unsecured term loans, net

1,200,000

(3,709)

(4,220)

Total Debt Outstanding

1,196,291

1,195,780

American Assets Trust, L.P. | Term Loan A | Interest Rate Swap

$ 8,346

7,835

Derivative fixed interest rate (in percent)

4.08%

American Assets Trust, L.P. | Term Loan A | Unsecured term loans, net

$ 100,000

100,000

American Assets Trust, L.P. | Senior Guaranteed Notes, Series A | Forward Contracts

Jan. 09, 2021

American Assets Trust, L.P. | Senior Guaranteed Notes, Series A | Unsecured term loans, net

3.88%

$ 150,000

150,000

^[1]

4.04%

American Assets Trust, L.P. | Term Loan B | Interest Rate Swap

Oct. 31, 2021

Derivative fixed interest rate (in percent)

2.65%

3.15%

American Assets Trust, L.P. | Term Loan B | Unsecured term loans, net

$ 100,000

100,000

American Assets Trust, L.P. | Term Loan C | Interest Rate Swap

Mar. 01, 2023

Derivative fixed interest rate (in percent)

2.64%

3.14%

American Assets Trust, L.P. | Term Loan C | Unsecured term loans, net

$ 50,000

50,000

American Assets Trust, L.P. | Senior Guaranteed Notes, Series F | Forward Contracts

Mar. 01, 2023

American Assets Trust, L.P. | Senior Guaranteed Notes, Series F | Unsecured term loans, net

3.85%

$ 100,000

100,000

^[2]

3.78%

American Assets Trust, L.P. | Senior Guaranteed Notes, Series B | Unsecured term loans, net

Jul. 19, 2024

$ 100,000

100,000

4.45%

American Assets Trust, L.P. | Senior Guaranteed Notes, Series C | Unsecured term loans, net

Feb. 02, 2025

$ 100,000

100,000

4.50%

American Assets Trust, L.P. | Senior Guaranteed Notes, Series D | Forward Contracts

Apr. 01, 2025

American Assets Trust, L.P. | Senior Guaranteed Notes, Series D | Unsecured term loans, net

3.87%

$ 250,000

250,000

^[3]

4.29%

American Assets Trust, L.P. | Senior Guaranteed Notes, Series E | Forward Contracts

Mar. 01, 2027

American Assets Trust, L.P. | Senior Guaranteed Notes, Series E | Unsecured term loans, net

4.18%

$ 100,000

100,000

^[4]

4.24%

American Assets Trust, L.P. | Senior Guaranteed Notes, Series G | Forward Contracts

May 23, 2029

American Assets Trust, L.P. | Senior Guaranteed Notes, Series G | Unsecured term loans, net

3.88%

$ 150,000

^[5]

3.91%

Jul. 30, 2030

[1]	The Operating Partnership entered into a one-month forward-starting seven years swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million. The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum.
[2]	The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum.
[3]	The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million. The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum.
[4]	The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum.
[5]	The Operating Partnership entered into a treasury lock contract on June 20, 2019, which was settled on July 17, 2019 at a gain of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum.

DEBT - Narrative (Details)

6 Months Ended

Jan. 09, 2019

Extension_Option

Jan. 09, 2018

USD ($)

Extension_Option

Jun. 30, 2020

USD ($)

Dec. 31, 2019

USD ($)

Unsecured term loans, net | Term Loan B | Federal Funds Rate

$ 98,948,000

$ 0

Unsecured term loans, net | Term Loan B | Eurodollar

0.50%

Basis spread on Eurodollar rate

1.00%

Unsecured term loans, net | Term Loan C | Federal Funds Rate

Unsecured term loans, net | Term Loan C | Eurodollar

0.50%

Basis spread on Eurodollar rate

1.00%

Unsecured term loans, net | Term Loan A | Federal Funds Rate

Unsecured term loans, net | Term Loan A | Eurodollar

0.50%

Basis spread on Eurodollar rate

1.00%

Unsecured term loans, net | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR)

LIBOR

Minimum fixed charge coverage ratio covenant threshold

1.50

Minimum unsecured leverage ratio

175.00%

Maximum leverage ratio of revolving credit facility

60.00%

Maximum secured leverage ratio on revolving credit facility

40.00%

Maximum unsecured leverage ratio

60.00%

Maximum recourse indebtedness of total asset value

15.00%

Unsecured line of credit, net | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR)

Unsecured line of credit, net | Second Amended and Restated Credit Facility | Base Rate

1.00%

American Assets Trust, L.P.

0.50%

American Assets Trust, L.P. | Term Loan B

98,948,000

American Assets Trust, L.P. | Term Loan B | Minimum | Base Rate

Term of debt instrument

7 years

American Assets Trust, L.P. | Term Loan B | Maximum | Base Rate

0.70%

American Assets Trust, L.P. | Term Loan C

1.35%

American Assets Trust, L.P. | Term Loan C | Minimum | Base Rate

Term of debt instrument

7 years

American Assets Trust, L.P. | Term Loan C | Maximum | Base Rate

0.70%

American Assets Trust, L.P. | Term Loan A | Minimum | Base Rate

1.35%

American Assets Trust, L.P. | Term Loan A | Maximum | Base Rate

0.20%

American Assets Trust, L.P. | Second Amended and Restated Credit Facility

0.70%

Revolving credit facility borrowing limit, maximum borrowing capacity

$ 450,000,000

Additional borrowing capacity

$ 250,000,000

American Assets Trust, L.P. | Unsecured term loans, net

American Assets Trust, L.P. | Unsecured term loans, net | Senior Guaranteed Notes, Series G

1,200,000,000

$ 150,000,000

150,000,000

^[1]

3.91%

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B

Jul. 30, 2030

$ 100,000,000

100,000,000

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | London Interbank Offered Rate (LIBOR)

Mar. 01, 2023

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Base Rate

LIBOR

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Minimum | London Interbank Offered Rate (LIBOR)

0.00%

prime rate

federal funds rate

Eurodollar

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Maximum | London Interbank Offered Rate (LIBOR)

1.20%

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C

1.70%

$ 50,000,000

50,000,000

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | London Interbank Offered Rate (LIBOR)

Mar. 01, 2023

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | Base Rate

LIBOR

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | Minimum | London Interbank Offered Rate (LIBOR)

0.00%

prime rate

federal funds rate

Eurodollar

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | Maximum | London Interbank Offered Rate (LIBOR)

1.20%

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan A

1.70%

$ 100,000,000

Debt extension options | Extension_Option

Jan. 09, 2021

Extension term

1 year

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan A | London Interbank Offered Rate (LIBOR)

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan A | Base Rate

LIBOR

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan A | Minimum | London Interbank Offered Rate (LIBOR)

Prime rate

prime rate

Federal funds rate

federal funds rate

Eurodollar rate

Eurodollar

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan A | Maximum | London Interbank Offered Rate (LIBOR)

1.20%

American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B & Term Loan C

1.70%

American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility

Face amount of debt

$ 150,000,000

Revolving credit facility borrowing limit, maximum borrowing capacity

$ 100,000,000

American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR)

American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | Minimum | Base Rate

1.30%

American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR)

0.30%

American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | Maximum | Base Rate

1.90%

American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility

0.90%

Debt issuance costs, net, revolving credit facility

$ 100,000,000

$ (1,100,000)

Weighted average interest rate, revolving credit facility

1.58%

American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Revolving Credit Facility

Revolving credit facility borrowing limit, maximum borrowing capacity

$ 350,000,000

Debt extension options | Extension_Option

Extension term

6 months

American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility

American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Base Rate

LIBOR

Prime rate

prime rate

Federal funds rate

federal funds rate

1.05%

0.10%

1.50%