Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'AAT | ' |
Entity Registrant Name | 'AMERICAN ASSETS TRUST, INC. | ' |
Entity Central Index Key | '0001500217 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 41,935,138 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Operating real estate | $1,924,855 | $1,919,015 |
Construction in progress | 89,991 | 67,389 |
Held for development | 9,028 | 9,013 |
Total Real estate, at cost | 2,023,874 | 1,995,417 |
Accumulated depreciation | -330,945 | -318,581 |
Net real estate | 1,692,929 | 1,676,836 |
Cash and cash equivalents | 79,486 | 48,987 |
Restricted cash | 10,568 | 9,124 |
Accounts receivable, net | 6,277 | 7,295 |
Deferred rent receivables, net | 33,372 | 32,531 |
Other assets, net | 56,326 | 57,670 |
TOTAL ASSETS | 1,878,958 | 1,832,443 |
LIABILITIES AND EQUITY | ' | ' |
Secured notes payable | 952,498 | 952,174 |
Term loan | 100,000 | 0 |
Line of credit | 0 | 93,000 |
Accounts payable and accrued expenses | 40,248 | 37,063 |
Security deposits payable | 5,222 | 5,163 |
Other liabilities and deferred credits | 58,514 | 58,465 |
Total liabilities | 1,156,482 | 1,145,865 |
Commitments and contingencies (Note 9) | ' | ' |
American Assets Trust, Inc. stockholders’ equity | ' | ' |
Common stock, $0.01 par value, 490,000,000 shares authorized, 41,935,138 and 40,512,563 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 419 | 405 |
Additional paid-in capital | 735,175 | 692,196 |
Accumulated dividends in excess of net income | -48,619 | -44,090 |
Accumulated other comprehensive loss | -521 | 0 |
Total American Assets Trust, Inc. stockholders’ equity | 686,454 | 648,511 |
Noncontrolling interests | 36,022 | 38,067 |
Total equity | 722,476 | 686,578 |
TOTAL LIABILITIES AND EQUITY | $1,878,958 | $1,832,443 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares outstanding | 41,935,138 | 405,812,563 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUE: | ' | ' |
Rental income | $60,482 | $59,222 |
Other property income | 3,471 | 2,958 |
Total revenue | 63,953 | 62,180 |
EXPENSES: | ' | ' |
Rental expenses | 16,620 | 16,286 |
Real estate taxes | 6,026 | 4,800 |
General and administrative | 4,612 | 4,201 |
Depreciation and amortization | 16,341 | 17,013 |
Total operating expenses | 43,599 | 42,300 |
OPERATING INCOME | 20,354 | 19,880 |
Interest expense | -13,632 | -14,736 |
Other income (expense), net | -64 | -279 |
NET INCOME | 6,658 | 4,865 |
Net income attributable to restricted shares | -70 | -132 |
Noncontrolling Interest in Net Income (Loss) Operating Partnerships, Redeemable | -1,986 | -1,495 |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | 4,602 | 3,238 |
EARNINGS PER COMMON SHARE, BASIC | ' | ' |
Earnings per common share, basic | $0.11 | $0.08 |
Weighted average shares of common stock outstanding-basic | 40,582,792 | 39,033,013 |
EARNINGS PER COMMON SHARE, DILUTED | ' | ' |
Earnings per common share, diluted | $0.11 | $0.08 |
Weighted average shares of common stock outstanding-diluted | 58,492,473 | 57,056,448 |
Dividends declared per common share | $0.22 | $0.21 |
COMPREHENSIVE INCOME | ' | ' |
Net income | 6,658 | 4,865 |
Other comprehensive loss - unrealized loss on swap derivative during the period | -746 | 0 |
Comprehensive income | 5,912 | 4,865 |
Comprehensive income attributable to non-controlling interest | -1,761 | -1,495 |
Comprehensive income attributable to American Assets Trust, Inc. | $4,151 | $3,370 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (Unaudited) (USD $) | Total | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Unitholders in the Operating Partnership |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2013 | $686,578 | $405 | $692,196 | ($44,090) | $0 | $38,067 |
Beginning Balance (in shares) at Dec. 31, 2013 | 405,812,563 | 40,512,563 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 6,658 | ' | ' | 4,672 | ' | 1,986 |
Common shares issued (in shares) | ' | 1,435,215 | ' | ' | ' | ' |
Common shares issued | 46,926 | 14 | 46,912 | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 112,119 | ' | ' | ' | ' |
Issuance of restricted stock | 0 | 1 | -1 | ' | ' | ' |
Conversion of operating partnership units (in shares) | 11,852 | 11,852 | ' | ' | ' | ' |
Conversion of operating partnership units | 0 | ' | -133 | ' | ' | 133 |
Dividends declared and paid | -13,140 | ' | ' | -9,201 | ' | -3,939 |
Stock-based compensation | 519 | ' | 519 | ' | ' | ' |
Shares withheld for employee taxes (in shares) | ' | -136,611 | ' | ' | ' | ' |
Shares withheld for employee taxes | -4,319 | -1 | -4,318 | ' | ' | ' |
Other comprehensive loss - change in value of interest rate swap | -746 | ' | ' | ' | -521 | -225 |
Ending Balance at Mar. 31, 2014 | $722,476 | $419 | $735,175 | ($48,619) | ($521) | $36,022 |
Ending Balance (in shares) at Mar. 31, 2014 | 41,935,138 | 41,935,138 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $6,658 | $4,865 |
Adjustments to reconcile income from operations to net cash provided by operating activities: | ' | ' |
Deferred rent revenue and amortization of lease intangibles | -1,545 | -1,163 |
Depreciation and amortization | 16,341 | 17,013 |
Amortization of debt issuance costs and debt fair value adjustments | 1,015 | 983 |
Stock-based compensation expense | 519 | 676 |
Other, net | -362 | -1,202 |
Changes in operating assets and liabilities | ' | ' |
Change in restricted cash | -1,141 | -500 |
Change in accounts receivable | 1,022 | -1,198 |
Change in other assets | -392 | -216 |
Change in accounts payable and accrued expenses | 4,705 | 5,956 |
Change in security deposits payable | 58 | 211 |
Change in other liabilities and deferred credits | 1,115 | 247 |
Net cash provided by operating activities | 27,993 | 25,672 |
INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -30,300 | -9,902 |
Change in restricted cash | -303 | 518 |
Leasing commissions | -996 | -338 |
Net cash used in investing activities | -31,599 | -9,722 |
FINANCING ACTIVITIES | ' | ' |
Change in restricted cash | 0 | 1,400 |
Repayment of secured notes payable | -405 | -943 |
Proceeds from term loan | 100,000 | 0 |
Repayment of line of credit | -93,000 | 0 |
Debt issuance costs | -1,957 | 0 |
Proceeds from issuance of common stock, net | 46,926 | 0 |
Dividends paid to common stock and unitholders | -13,140 | -12,114 |
Shares withheld for employee taxes | -4,319 | 0 |
Net cash (used in) provided by financing activities | 34,105 | -14,457 |
Net increase (decrease) in cash and cash equivalents | 30,499 | 1,493 |
Cash and cash equivalents, beginning of period | 48,987 | 42,479 |
Cash and cash equivalents, end of period | $79,486 | $43,972 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
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 120 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. | ||||||||
As of March 31, 2014, we owned or had a controlling interest in 23 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of March 31, 2014, we owned land at five 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 | Del Monte Center | |||||||
Carmel Mountain Plaza | Geary Marketplace | |||||||
South Bay Marketplace | The Shops at Kalakaua | |||||||
Rancho Carmel Plaza | Waikele Center | |||||||
Lomas Santa Fe Plaza | Alamo Quarry Market | |||||||
Solana Beach Towne Centre | ||||||||
Office | ||||||||
Torrey Reserve Campus | Lloyd District Portfolio | |||||||
Solana Beach Corporate Centre | City Center Bellevue | |||||||
The Landmark at One Market | ||||||||
One Beach Street | ||||||||
First & Main | ||||||||
Multifamily | ||||||||
Loma Palisades | ||||||||
Imperial Beach Gardens | ||||||||
Mariner's Point | ||||||||
Santa Fe Park RV Resort | ||||||||
Mixed-Use | ||||||||
Waikiki Beach Walk Retail and Embassy Suites™ Hotel | ||||||||
Held for Development and Construction in Progress | ||||||||
Solana Beach Corporate Centre – Land | ||||||||
Solana Beach – Highway 101 – Land | ||||||||
Sorrento Pointe – Land | ||||||||
Torrey Reserve – Land | ||||||||
Lloyd District Portfolio – Land | ||||||||
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 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 annual report on Form 10-K for the year ended December 31, 2013. | ||||||||
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 and square footage 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): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Supplemental cash flow information | ||||||||
Total interest costs incurred | $ | 14,467 | $ | 15,093 | ||||
Interest capitalized | $ | 835 | $ | 357 | ||||
Interest expense | $ | 13,632 | $ | 14,736 | ||||
Cash paid for interest, net of amounts capitalized | $ | 12,724 | $ | 13,128 | ||||
Cash paid for income taxes | $ | — | $ | — | ||||
Supplemental schedule of noncash investing and financing activities | ||||||||
Accounts payable and accrued liabilities for construction in progress | $ | (890 | ) | $ | 556 | |||
Accrued leasing commissions | $ | (630 | ) | $ | 689 | |||
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, 2013. There have been no changes to our significant accounting policies during the three months ended March 31, 2014. | ||||||||
Concurrent with the closing of our amended and restated credit facility on January 9, 2014 (Note 6), we entered into an interest rate swap agreement with a notional amount of $100.0 million. The interest rate swap is intended to fix the variable portion of our $100.0 million term loan at approximately 3.08% from January 9, 2014 through January 19, 2019. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for our making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | ||||||||
We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recorded in accumulated other comprehensive income/loss and is subsequently reclassified into interest expense as interest is incurred on the related variable rate debt. Our cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and LIBOR rate. In addition, we evaluate the default risk of the counterparty by monitoring the credit-worthiness of the counterparty. When ineffectiveness exists, the ineffective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recognized in earnings in the period affected. Hedge ineffectiveness has not impacted earnings as of March 31, 2014, and we do not anticipate it will have a significant effect in the future. | ||||||||
Segment Information | ||||||||
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. | ||||||||
Recent Accounting Pronouncements | ||||||||
In February 2013, the Financial Accounting Standards Board (the "FASB") issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-2 requires entities to disclose certain information relating to amounts reclassified out of accumulated other comprehensive income. This pronouncement became effective for us in the first quarter of 2013 and did not have a significant impact on our consolidated financial statements. | ||||||||
In April 2014, the FASB issued ASU-2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 revises the definition of a discontinued operation to a disposal, sale or held-for-sale component or group of components that represents a strategic shift that will have a major effect on an entity's operations and financial results. This pronouncement is effective in 2015, however, calendar year-end companies may early adopt during the first quarter of 2014. We have chosen to early adopt this pronouncement and it became effective for us in the first quarter of 2014. This pronouncement did not have a significant impact on our consolidated financial statements. |
ACQUIRED_INPLACE_LEASES_AND_AB
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | ' | |||||||
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 March 31, 2014 and December 31, 2013 (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
In-place leases | $ | 62,734 | $ | 62,813 | ||||
Accumulated amortization | (39,882 | ) | (38,279 | ) | ||||
Above market leases | 28,262 | 28,279 | ||||||
Accumulated amortization | (21,570 | ) | (20,880 | ) | ||||
Acquired lease intangible assets, net | $ | 29,544 | $ | 31,933 | ||||
Below market leases | $ | 76,502 | $ | 76,502 | ||||
Accumulated accretion | (29,887 | ) | (28,592 | ) | ||||
Acquired lease intangible liabilities, net | $ | 46,615 | $ | 47,910 | ||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||
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. The financial liability whose fair value we measure on a recurring basis using Level 2 inputs is our deferred compensation liability included in other liabilities and deferred credits on the consolidated balance sheet. 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. | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
The fair values of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The fair value of our swap at March 31, 2014 was a liability of $0.7 million and is included in "other liabilities and deferred credits" on our consolidated balance sheets. For the three months ended March 31, 2014, the change in valuation on our interest rate swaps was a decrease of $0.7 million. 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 loss and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. | ||||||||||||||||||||||||||
The Company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contract for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||||||||||||||||||||||||
Although the Company has determined that the majority of the inputs used to value its 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 March 31, 2014 the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its 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): | ||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Deferred compensation liability | $ | — | $ | 821 | $ | — | $ | 821 | $ | — | $ | 769 | $ | — | $ | 769 | ||||||||||
Interest rate swap | $ | — | $ | 746 | $ | — | $ | 746 | $ | — | $ | — | $ | — | $ | — | ||||||||||
The fair value of our secured notes payable is 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 3.5% to 5.2%. | ||||||||||||||||||||||||||
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. 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): | ||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Secured notes payable | $ | 952,498 | $ | 993,568 | $ | 952,174 | $ | 990,296 | ||||||||||||||||||
Term loan | $ | 100,000 | $ | 100,000 | $ | — | $ | — | ||||||||||||||||||
Line of credit | $ | — | $ | — | $ | 93,000 | $ | 93,000 | ||||||||||||||||||
OTHER_ASSETS
OTHER ASSETS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
OTHER ASSETS | ' | |||||||
OTHER ASSETS | ||||||||
Other assets consist of the following (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Leasing commissions, net of accumulated amortization of $20,523 and $19,606 respectively | $ | 17,152 | $ | 18,071 | ||||
Acquired above market leases, net | 6,692 | 7,399 | ||||||
Acquired in-place leases, net | 22,852 | 24,534 | ||||||
Lease incentives, net of accumulated amortization of $2,683 and $2,590, respectively | 1,017 | 1,110 | ||||||
Other intangible assets, net of accumulated amortization of $1,600 and $1,554, respectively | 598 | 655 | ||||||
Debt issuance costs, net of accumulated amortization of $3,272 and $2,985, respectively | 4,302 | 2,632 | ||||||
Prepaid expenses and other | 3,713 | 3,269 | ||||||
Total other assets | $ | 56,326 | $ | 57,670 | ||||
OTHER_LIABILITIES_AND_DEFERRED
OTHER LIABILITIES AND DEFERRED CREDITS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
OTHER LIABILITIES AND DEFERRED CREDITS | ' | |||||||
OTHER LIABILITIES AND DEFERRED CREDITS | ||||||||
Other liabilities and deferred credits consist of the following (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Acquired below market leases, net | $ | 46,615 | $ | 47,910 | ||||
Prepaid rent and deferred revenue | 8,209 | 7,506 | ||||||
Deferred rent expense and lease intangible | 773 | 829 | ||||||
Deferred compensation | 821 | 769 | ||||||
Deferred tax liability | 233 | 233 | ||||||
Straight-line rent liability | 1,020 | 1,145 | ||||||
Interest rate swap liability | 746 | — | ||||||
Other liabilities | 97 | 73 | ||||||
Total other liabilities and deferred credits | $ | 58,514 | $ | 58,465 | ||||
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
DEBT | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
DEBT | ' | ||||||||||||
DEBT | |||||||||||||
The following is a summary of our total secured notes payable outstanding as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||
Principal Balance as of | Stated Interest | Stated Maturity Date | |||||||||||
Rate as of | |||||||||||||
Description of Debt | March 31, 2014 | December 31, 2013 | 31-Mar-14 | ||||||||||
Waikele Center (1) | 140,700 | 140,700 | 5.15 | % | November 1, 2014 | ||||||||
The Shops at Kalakaua (1) | 19,000 | 19,000 | 5.45 | % | May 1, 2015 | ||||||||
The Landmark at One Market (1)(2) | 133,000 | 133,000 | 5.61 | % | July 5, 2015 | ||||||||
Del Monte Center (1) | 82,300 | 82,300 | 4.93 | % | July 8, 2015 | ||||||||
First & Main (1) | 84,500 | 84,500 | 3.97 | % | July 1, 2016 | ||||||||
Imperial Beach Gardens (1) | 20,000 | 20,000 | 6.16 | % | September 1, 2016 | ||||||||
Mariner’s Point (1) | 7,700 | 7,700 | 6.09 | % | September 1, 2016 | ||||||||
South Bay Marketplace (1) | 23,000 | 23,000 | 5.48 | % | February 10, 2017 | ||||||||
Waikiki Beach Walk—Retail (1) | 130,310 | 130,310 | 5.39 | % | July 1, 2017 | ||||||||
Solana Beach Corporate Centre III-IV (3) | 36,691 | 36,804 | 6.39 | % | August 1, 2017 | ||||||||
Loma Palisades (1) | 73,744 | 73,744 | 6.09 | % | July 1, 2018 | ||||||||
One Beach Street (1) | 21,900 | 21,900 | 3.94 | % | April 1, 2019 | ||||||||
Torrey Reserve—North Court (3) | 21,304 | 21,377 | 7.22 | % | June 1, 2019 | ||||||||
Torrey Reserve—VCI, VCII, VCIII (3) | 7,175 | 7,200 | 6.36 | % | June 1, 2020 | ||||||||
Solana Beach Corporate Centre I-II (3) | 11,430 | 11,475 | 5.91 | % | June 1, 2020 | ||||||||
Solana Beach Towne Centre (3) | 38,101 | 38,249 | 5.91 | % | June 1, 2020 | ||||||||
City Center Bellevue (1) | 111,000 | 111,000 | 3.98 | % | November 1, 2022 | ||||||||
961,855 | 962,259 | ||||||||||||
Unamortized fair value adjustment | (9,357 | ) | (10,085 | ) | |||||||||
Total Secured Notes Payable Outstanding | $ | 952,498 | $ | 952,174 | |||||||||
-1 | Interest only. | ||||||||||||
-2 | Maturity Date is the earlier of the loan maturity date under the loan agreement, or the “Anticipated Repayment Date” as specifically defined in the loan agreement, which is the date after which substantial economic penalties apply if the loan has not been paid off. | ||||||||||||
-3 | Principal payments based on a 30-year amortization schedule. | ||||||||||||
Certain loans require us to comply with various financial covenants. As of March 31, 2014, we were in compliance with these financial covenants. | |||||||||||||
Credit Facility | |||||||||||||
On January 9, 2014, we entered into an amended and restated credit agreement (the "Amended and Restated Credit Facility") which amended and restated the then in-place credit facility. The Amended and Restated Credit Facility provides for aggregate, unsecured borrowing of $350 million, consisting of a revolving line of credit of $250 million (the "Revolver Loan") and a term loan of $100 million (the "Term Loan"). The 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. | |||||||||||||
Borrowings under the Amended and Restated Credit Facility initially bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from (a) 1.35%-1.95% (with respect to the Revolver Loan) and (b) 1.30% to 1.90% (with respect to the Term Loan), 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) the Eurodollar rate plus 100 bps, plus a spread which ranges from (i) 0.35%-0.95% (with respect to the Revolver Loan) and (ii) 0.30% to 0.90% (with respect to the Term Loan), in each case based on our consolidated leverage ratio. If we obtain an investment-grade debt rating, under the terms set forth in the Amended and Restated Credit Facility, the spreads will further improve. | |||||||||||||
The Revolver Loan initially matures on January 9, 2018, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six-month period. The Term Loan initially matures on January 9, 2016, subject to our option to extend the Term Loan up to three times, with each such extension for a 12-month period. The foregoing extension options are exercisable by us subject to the satisfaction of certain conditions. | |||||||||||||
Concurrent with the closing of the Amended and Restated Credit Facility, we drew down on the entirety of the $100 million Term Loan and entered into an interest rate swap agreement that is intended to fix the interest rate associated with the Term Loan at approximately 3.08% through its maturity date and extension options, subject to adjustments based on our consolidated leverage ratio. | |||||||||||||
Additionally, the 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%, and during any material acquisition period the maximum leverage ratio allowable is 65%, | ||||||||||||
• | A maximum secured leverage ratio (defined as total secured debt to secured total asset value) of 45% at any time prior to December 31, 2015, and 40% thereafter, during a material acquisition period the maximum secured leverage ratio is increased to 50% at any time prior to December 31, 2015 and 45% thereafter, | ||||||||||||
• | 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 during any material acquisition period the maximum unsecured leverage ratio allowable is 65%, | ||||||||||||
• | A minimum tangible net worth of $721.16 million, and 75% of the net proceeds of any additional equity issuances (other than additional equity issuances in connection with any dividend reinvestment program), and | ||||||||||||
• | Recourse indebtedness at any time cannot exceed 15% of total asset value. | ||||||||||||
The Amended and Restated Credit Facility provides that our annual distributions may not exceed the greater of (1) 95% of our funds from operations or (2) the amount required for us to (a) qualify and maintain our real estate investment trust ("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 March 31, 2014, we were in compliance with the Amended and Restated Credit Facility financial covenants. |
EQUITY
EQUITY | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
EQUITY | ' | ||||||||
EQUITY | |||||||||
Stockholders' Equity | |||||||||
On May 6, 2013, we entered into an at-the-market (“ATM”) equity program with four 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 $150.0 million. The sales of shares of our common stock made through the ATM equity program are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. For the three months ended March 31, 2014, we issued 1,435,215 shares of common stock through the ATM equity program at a weighted average price per share of $33.06 for gross proceeds of $47.4 million and paid $0.4 million in sales agent compensation and $0.1 million in additional offering expenses related to the sales of these shares of common stock. 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 credit facility or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of March 31, 2014, we had the capacity to issue up to an additional $76.6 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. | |||||||||
Noncontrolling Interests | |||||||||
Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us. Noncontrolling interests consisted of 17,905,257 common units (the “noncontrolling common units”), and represented approximately 30.1% of the ownership interests in our Operating Partnership at March 31, 2014. 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 three months ended March 31, 2014, approximately 11,852 common units were converted into shares of our common stock. | |||||||||
Dividends | |||||||||
The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the three months ended March 31, 2014: | |||||||||
Period | Amount per | Period Covered | Dividend Paid Date | ||||||
Share/Unit | |||||||||
First Quarter 2014 | $ | 0.22 | January 1, 2014 to March 31, 2014 | March 28, 2014 | |||||
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, or the employer incurs liabilities to employees in amounts based on the price of the employer's stock. The guidance also defines a fair value-based method of accounting for an employee stock option or similar equity instrument. | |||||||||
During the three months ended March 31, 2014, we awarded 112,119 shares of restricted common stock pursuant to our 2011 Equity Incentive Award Plan (the “2011 Plan”), which are subject to performance-based vesting. Up to one-third of the shares of restricted stock may vest on November 30, 2014, 2015 and 2016 based upon pre-defined market specific performance criteria. | |||||||||
For the performance-based stock awards, the fair value of the awards was estimated using a Monte Carlo Simulation model. Our stock price, along with the stock prices of a group of peer REITs, is assumed to follow the Multivariate Geometric Brownian Motion Process. Multivariate Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on the stock price of the Company and the group of REITs were estimated based on a three year look-back period. The expected growth rate of the stock prices over the “derived service period” of the employee is determined with consideration of the risk free rate as of the grant date. | |||||||||
The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2014: | |||||||||
Units | Weighted Average Grant Date Fair Value | ||||||||
Nonvested at January 1, 2014 | 629,058 | $ | 15.58 | ||||||
Granted | 112,119 | 29.96 | |||||||
Vested | (310,194 | ) | 15.42 | ||||||
Forfeited | — | — | |||||||
Nonvested at March 31, 2014 | 430,983 | $ | 19.44 | ||||||
We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $0.5 million and $0.7 million, respectively, in noncash compensation expense for the three months ended March 31, 2014 and 2013, which is included in general and administrative expense on the consolidated statements of comprehensive income. Unrecognized compensation expense was $4.4 million at March 31, 2014. | |||||||||
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. For the three months ended March 31, 2014 and 2013, we had a weighted average of approximately 406,856 and 631,199, unvested shares outstanding, respectively, which are considered participating securities. 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 months ended March 31, 2014 and 2013, 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 March 31, | |||||||||
2014 | 2013 | ||||||||
NUMERATOR | |||||||||
Income from operations | $ | 6,658 | $ | 4,865 | |||||
Less: Net income attributable to restricted shares | (70 | ) | (132 | ) | |||||
Less: Income from operations attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | |||||
Net income attributable to common stockholders—basic | $ | 4,602 | $ | 3,238 | |||||
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | 4,602 | $ | 3,238 | |||||
Plus: Income from operations attributable to unitholders in the Operating Partnership | 1,986 | 1,495 | |||||||
Net income attributable to common stockholders—diluted | $ | 6,588 | $ | 4,733 | |||||
DENOMINATOR | |||||||||
Weighted average common shares outstanding—basic | 40,582,792 | 39,033,013 | |||||||
Effect of dilutive securities—conversion of Operating Partnership units | 17,909,681 | 18,023,435 | |||||||
Weighted average common shares outstanding—diluted | 58,492,473 | 57,056,448 | |||||||
Earnings per common share, basic | $ | 0.11 | $ | 0.08 | |||||
Earnings per common share, diluted | $ | 0.11 | $ | 0.08 | |||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
We 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 of $0.2 million as of March 31, 2014 and December 31, 2013 is included in our consolidated balance sheets in relation to real estate asset basis differences of property subject to the Texas margin tax and certain prepaid expenses of our TRS. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
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 | |||||
At The Landmark at One Market, we lease, as lessee, a building adjacent to The Landmark under an operating lease effective through June 30, 2016, which we have the option to extend until 2026 by way of two five-year extension options. | |||||
At Waikiki Beach Walk, we sublease a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021, which we have the option to extend at fair rental value in the event the sublessor extends its lease for the space with the master landlord. The lease payments under the lease will increase by approximately 3.4% annually through 2017 and, thereafter, will be equal to fair rental value, as defined in the lease, through lease expiration. | |||||
Current minimum annual payments under the leases are as follows, as of March 31, 2014 (in thousands): | |||||
Year Ending December 31, | |||||
2014 (nine months ending December 31, 2014) | $ | 1,935 | |||
2015 | 2,636 | ||||
2016 | 1,709 | ||||
2017 | 736 | (1) | |||
2018 | 740 | ||||
Thereafter | 2,221 | ||||
Total | $ | 9,977 | |||
-1 | Lease payments on the Waikiki Beach Walk lease will be equal to fair rental value from March 2017 through the end of the lease term. In the table, we have shown the lease payments for this period based on the stated rate for the month of February 2017 of $61,690. | ||||
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 calendar 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 SuitesTM 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 $6.5 million based on operating performance through March 31, 2014. | |||||
We had a property management agreement with Langley Investment Properties, Inc. (“Langley”) pursuant to which Langley managed and operated Lloyd District Portfolio, and we paid Langley a monthly management fee of 3.5% of “gross receipts,” as defined in the property management agreement, as well as leasing commissions and construction oversight fees in certain situations. The property management agreement was terminated on February 1, 2013 by mutual consent of both parties. Langley continued to provide development consulting services to us until June 30, 2013 and leasing services to us until December 31, 2013 pursuant to a development, consulting, leasing and transition services and management termination agreement. | |||||
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 two to ten 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. | |||||
In connection with our initial public offering, we entered into tax protection agreements with certain limited partners of our Operating Partnership. These agreements provide that if we dispose of any interest with respect to Carmel Country Plaza, Carmel Mountain Plaza, Del Monte Center, Loma Palisades, Lomas Santa Fe Plaza, Waikele Center or the ICW Plaza portion of Torrey Reserve Campus, in a taxable transaction during the period from the closing of our initial public offering through January 19, 2018, we will indemnify such limited partners for their tax liabilities attributable to their share of the built-in gain that existed with respect to such property interest as of the time of our initial public offering and tax liabilities incurred as a result of the reimbursement payment. Subject to certain exceptions and limitations, the indemnification rights will terminate for any such protected partner that sells, exchanges or otherwise disposes of more than 50% of his or her common units. We have no present intention to sell or otherwise dispose of the properties or interest therein in taxable transactions during the restriction period. If we were to trigger the tax protection provisions under these agreements, we would be required to pay damages in the amount of the taxes owed by these limited partners (plus additional damages in the amount of the taxes incurred as a result of such payment). | |||||
As of March 31, 2014, the Company has accrued approximately $6.6 million for transfer taxes that the Company expected to incur on its California properties in connection with its initial public offering. The Company believes that it has filed all necessary forms with the requisite taxing authorities, but can offer no assurances that the taxing authorities will agree with the Company's estimate above. | |||||
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 and social factors affecting the markets in which the tenants operate. Twelve 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 36.0% of total revenues for the three months ended March 31, 2014. 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 35.7% of total revenues for the three months ended March 31, 2014. 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 three months ended March 31, 2014 and 2013, no tenant accounted for more than 10% of our total rental revenue. |
OPERATING_LEASES
OPERATING LEASES | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Leases [Abstract] | ' | |||
OPERATING LEASES | ' | |||
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 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 and also may include percentage rents based on the tenant’s level of sales achieved. 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. | ||||
As of March 31, 2014, 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, | ||||
2014 (nine months ending December 31, 2014) | $ | 116,016 | ||
2015 | 148,996 | |||
2016 | 129,347 | |||
2017 | 112,064 | |||
2018 | 79,838 | |||
Thereafter | 155,343 | |||
Total | $ | 741,604 | ||
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. |
COMPONENTS_OF_RENTAL_INCOME_AN
COMPONENTS OF RENTAL INCOME AND EXPENSE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Operating Leases, Income Statement, Lease Revenue [Abstract] | ' | |||||||
COMPONENTS OF RENTAL INCOME AND EXPENSE | ' | |||||||
COMPONENTS OF RENTAL INCOME AND EXPENSE | ||||||||
The principal components of rental income are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Minimum rents | ||||||||
Retail | $ | 17,292 | $ | 17,351 | ||||
Office | 20,236 | 20,500 | ||||||
Multifamily | 3,834 | 3,583 | ||||||
Mixed-use | 2,470 | 2,420 | ||||||
Cost reimbursement | 6,804 | 5,671 | ||||||
Percentage rent | 425 | 418 | ||||||
Hotel revenue | 9,002 | 8,848 | ||||||
Other | 419 | 431 | ||||||
Total rental income | $ | 60,482 | $ | 59,222 | ||||
Minimum rents include $1.0 million and $0.7 million for the three months ended March 31, 2014 and 2013, respectively, to recognize minimum rents on a straight-line basis. In addition, net amortization of above and below market leases included in minimum rents were $0.6 million and $0.5 million for the three months ended March 31, 2014 and 2013. | ||||||||
The principal components of rental expenses are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Rental operating | $ | 6,526 | $ | 6,314 | ||||
Hotel operating | 5,553 | 5,482 | ||||||
Repairs and maintenance | 2,122 | 2,114 | ||||||
Marketing | 390 | 352 | ||||||
Rent | 611 | 613 | ||||||
Hawaii excise tax | 965 | 939 | ||||||
Management fees | 453 | 472 | ||||||
Total rental expenses | $ | 16,620 | $ | 16,286 | ||||
OTHER_INCOME_NET
OTHER INCOME , NET | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
OTHER INCOME (EXPENSE), NET | ' | |||||||
OTHER INCOME (EXPENSE), NET | ||||||||
The principal components of other income (expense), net, are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Interest and investment income | $ | 48 | $ | 8 | ||||
Income tax expense | (112 | ) | (297 | ) | ||||
Other non-operating income | — | 10 | ||||||
Total other income (expense), net | $ | (64 | ) | $ | (279 | ) |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
At ICW Plaza, we lease space to Insurance Company of the West, which is under the indirect control of Ernest Rady, our Executive Chairman of the Board. Rental revenue recognized on the leases of $0.5 million for each of the three months ended March 31, 2014 and 2013, respectively, is included in rental 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 $0.3 million and $0.2 million, respectively, were made for the three months ended March 31, 2014 and 2013 and are included in rental expenses on the statement of income. |
SEGMENT_REPORTING
SEGMENT REPORTING | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
SEGMENT REPORTING | ' | |||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Total Retail | ||||||||
Property revenue | $ | 22,999 | $ | 22,154 | ||||
Property expense | (6,058 | ) | (4,971 | ) | ||||
Segment profit | 16,941 | 17,183 | ||||||
Total Office | ||||||||
Property revenue | 22,831 | 22,422 | ||||||
Property expense | (6,893 | ) | (6,436 | ) | ||||
Segment profit | 15,938 | 15,986 | ||||||
Total Multifamily | ||||||||
Property revenue | 4,130 | 3,875 | ||||||
Property expense | (1,427 | ) | (1,442 | ) | ||||
Segment profit | 2,703 | 2,433 | ||||||
Total Mixed-Use | ||||||||
Property revenue | 13,993 | 13,729 | ||||||
Property expense | (8,268 | ) | (8,237 | ) | ||||
Segment profit | 5,725 | 5,492 | ||||||
Total segments’ profit | $ | 41,307 | $ | 41,094 | ||||
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Total segments’ profit | $ | 41,307 | $ | 41,094 | ||||
General and administrative | (4,612 | ) | (4,201 | ) | ||||
Depreciation and amortization | (16,341 | ) | (17,013 | ) | ||||
Interest expense | (13,632 | ) | (14,736 | ) | ||||
Other income (expense), net | (64 | ) | (279 | ) | ||||
Net income | 6,658 | 4,865 | ||||||
Net income attributable to restricted shares | (70 | ) | (132 | ) | ||||
Net income attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | ||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 4,602 | $ | 3,238 | ||||
The following table shows net real estate and secured note payable balances for each of the segments (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Net Real Estate | ||||||||
Retail | $ | 647,816 | $ | 651,707 | ||||
Office | 811,097 | 790,153 | ||||||
Multifamily | 34,984 | 35,349 | ||||||
Mixed-Use | 199,032 | 199,627 | ||||||
$ | 1,692,929 | $ | 1,676,836 | |||||
Secured Notes Payable (1) | ||||||||
Retail | $ | 303,101 | $ | 303,249 | ||||
Office | 427,000 | 427,256 | ||||||
Multifamily | 101,444 | 101,444 | ||||||
Mixed-Use | 130,310 | 130,310 | ||||||
$ | 961,855 | $ | 962,259 | |||||
-1 | Excludes unamortized fair market value adjustments of $9.4 million and $10.1 million as of March 31, 2014 and December 31, 2013, respectively. | |||||||
Capital expenditures for each segment for the three months ended March 31, 2014 and 2013 were as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Capital Expenditures (1) | ||||||||
Retail | $ | 1,506 | $ | 1,947 | ||||
Office | 7,091 | 7,862 | ||||||
Multifamily | 21,877 | 143 | ||||||
Mixed-Use | 822 | 288 | ||||||
$ | 31,296 | $ | 10,240 | |||||
-1 | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business and Organization | ' | ||
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 120 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. | |||
As of March 31, 2014, we owned or had a controlling interest in 23 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of March 31, 2014, we owned land at five 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 | Del Monte Center | ||
Carmel Mountain Plaza | Geary Marketplace | ||
South Bay Marketplace | The Shops at Kalakaua | ||
Rancho Carmel Plaza | Waikele Center | ||
Lomas Santa Fe Plaza | Alamo Quarry Market | ||
Solana Beach Towne Centre | |||
Office | |||
Torrey Reserve Campus | Lloyd District Portfolio | ||
Solana Beach Corporate Centre | City Center Bellevue | ||
The Landmark at One Market | |||
One Beach Street | |||
First & Main | |||
Multifamily | |||
Loma Palisades | |||
Imperial Beach Gardens | |||
Mariner's Point | |||
Santa Fe Park RV Resort | |||
Mixed-Use | |||
Waikiki Beach Walk Retail and Embassy Suites™ Hotel | |||
Held for Development and Construction in Progress | |||
Solana Beach Corporate Centre – Land | |||
Solana Beach – Highway 101 – Land | |||
Sorrento Pointe – Land | |||
Torrey Reserve – Land | |||
Lloyd District Portfolio – Land | |||
Basis of Presentation | ' | ||
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 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 annual report on Form 10-K for the year ended December 31, 2013. | |||
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 and square footage 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. | |||
Significant Accounting Policies | ' | ||
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, 2013. There have been no changes to our significant accounting policies during the three months ended March 31, 2014. | |||
Segment Information | ' | ||
Segment Information | |||
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. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In February 2013, the Financial Accounting Standards Board (the "FASB") issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-2 requires entities to disclose certain information relating to amounts reclassified out of accumulated other comprehensive income. This pronouncement became effective for us in the first quarter of 2013 and did not have a significant impact on our consolidated financial statements. | |||
Fair Value Measurements | ' | ||
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. The financial liability whose fair value we measure on a recurring basis using Level 2 inputs is our deferred compensation liability included in other liabilities and deferred credits on the consolidated balance sheet. 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. | |||
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. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Supplemental cash flow information | ||||||||
Total interest costs incurred | $ | 14,467 | $ | 15,093 | ||||
Interest capitalized | $ | 835 | $ | 357 | ||||
Interest expense | $ | 13,632 | $ | 14,736 | ||||
Cash paid for interest, net of amounts capitalized | $ | 12,724 | $ | 13,128 | ||||
Cash paid for income taxes | $ | — | $ | — | ||||
Supplemental schedule of noncash investing and financing activities | ||||||||
Accounts payable and accrued liabilities for construction in progress | $ | (890 | ) | $ | 556 | |||
Accrued leasing commissions | $ | (630 | ) | $ | 689 | |||
ACQUIRED_INPLACE_LEASES_AND_AB1
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of acquired lease intangibles included in other assets and other liabilities | ' | |||||||
The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
In-place leases | $ | 62,734 | $ | 62,813 | ||||
Accumulated amortization | (39,882 | ) | (38,279 | ) | ||||
Above market leases | 28,262 | 28,279 | ||||||
Accumulated amortization | (21,570 | ) | (20,880 | ) | ||||
Acquired lease intangible assets, net | $ | 29,544 | $ | 31,933 | ||||
Below market leases | $ | 76,502 | $ | 76,502 | ||||
Accumulated accretion | (29,887 | ) | (28,592 | ) | ||||
Acquired lease intangible liabilities, net | $ | 46,615 | $ | 47,910 | ||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
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): | ||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Deferred compensation liability | $ | — | $ | 821 | $ | — | $ | 821 | $ | — | $ | 769 | $ | — | $ | 769 | ||||||||||
Interest rate swap | $ | — | $ | 746 | $ | — | $ | 746 | $ | — | $ | — | $ | — | $ | — | ||||||||||
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): | ||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Secured notes payable | $ | 952,498 | $ | 993,568 | $ | 952,174 | $ | 990,296 | ||||||||||||||||||
Term loan | $ | 100,000 | $ | 100,000 | $ | — | $ | — | ||||||||||||||||||
Line of credit | $ | — | $ | — | $ | 93,000 | $ | 93,000 | ||||||||||||||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Components of Other Assets | ' | |||||||
Other assets consist of the following (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Leasing commissions, net of accumulated amortization of $20,523 and $19,606 respectively | $ | 17,152 | $ | 18,071 | ||||
Acquired above market leases, net | 6,692 | 7,399 | ||||||
Acquired in-place leases, net | 22,852 | 24,534 | ||||||
Lease incentives, net of accumulated amortization of $2,683 and $2,590, respectively | 1,017 | 1,110 | ||||||
Other intangible assets, net of accumulated amortization of $1,600 and $1,554, respectively | 598 | 655 | ||||||
Debt issuance costs, net of accumulated amortization of $3,272 and $2,985, respectively | 4,302 | 2,632 | ||||||
Prepaid expenses and other | 3,713 | 3,269 | ||||||
Total other assets | $ | 56,326 | $ | 57,670 | ||||
OTHER_LIABILITIES_AND_DEFERRED1
OTHER LIABILITIES AND DEFERRED CREDITS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other liabilities and deferred credits | ' | |||||||
Other liabilities and deferred credits consist of the following (in thousands): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Acquired below market leases, net | $ | 46,615 | $ | 47,910 | ||||
Prepaid rent and deferred revenue | 8,209 | 7,506 | ||||||
Deferred rent expense and lease intangible | 773 | 829 | ||||||
Deferred compensation | 821 | 769 | ||||||
Deferred tax liability | 233 | 233 | ||||||
Straight-line rent liability | 1,020 | 1,145 | ||||||
Interest rate swap liability | 746 | — | ||||||
Other liabilities | 97 | 73 | ||||||
Total other liabilities and deferred credits | $ | 58,514 | $ | 58,465 | ||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Summary of total secured notes payable outstanding | ' | ||||||||||||
The following is a summary of our total secured notes payable outstanding as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||
Principal Balance as of | Stated Interest | Stated Maturity Date | |||||||||||
Rate as of | |||||||||||||
Description of Debt | March 31, 2014 | December 31, 2013 | 31-Mar-14 | ||||||||||
Waikele Center (1) | 140,700 | 140,700 | 5.15 | % | November 1, 2014 | ||||||||
The Shops at Kalakaua (1) | 19,000 | 19,000 | 5.45 | % | May 1, 2015 | ||||||||
The Landmark at One Market (1)(2) | 133,000 | 133,000 | 5.61 | % | July 5, 2015 | ||||||||
Del Monte Center (1) | 82,300 | 82,300 | 4.93 | % | July 8, 2015 | ||||||||
First & Main (1) | 84,500 | 84,500 | 3.97 | % | July 1, 2016 | ||||||||
Imperial Beach Gardens (1) | 20,000 | 20,000 | 6.16 | % | September 1, 2016 | ||||||||
Mariner’s Point (1) | 7,700 | 7,700 | 6.09 | % | September 1, 2016 | ||||||||
South Bay Marketplace (1) | 23,000 | 23,000 | 5.48 | % | February 10, 2017 | ||||||||
Waikiki Beach Walk—Retail (1) | 130,310 | 130,310 | 5.39 | % | July 1, 2017 | ||||||||
Solana Beach Corporate Centre III-IV (3) | 36,691 | 36,804 | 6.39 | % | August 1, 2017 | ||||||||
Loma Palisades (1) | 73,744 | 73,744 | 6.09 | % | July 1, 2018 | ||||||||
One Beach Street (1) | 21,900 | 21,900 | 3.94 | % | April 1, 2019 | ||||||||
Torrey Reserve—North Court (3) | 21,304 | 21,377 | 7.22 | % | June 1, 2019 | ||||||||
Torrey Reserve—VCI, VCII, VCIII (3) | 7,175 | 7,200 | 6.36 | % | June 1, 2020 | ||||||||
Solana Beach Corporate Centre I-II (3) | 11,430 | 11,475 | 5.91 | % | June 1, 2020 | ||||||||
Solana Beach Towne Centre (3) | 38,101 | 38,249 | 5.91 | % | June 1, 2020 | ||||||||
City Center Bellevue (1) | 111,000 | 111,000 | 3.98 | % | November 1, 2022 | ||||||||
961,855 | 962,259 | ||||||||||||
Unamortized fair value adjustment | (9,357 | ) | (10,085 | ) | |||||||||
Total Secured Notes Payable Outstanding | $ | 952,498 | $ | 952,174 | |||||||||
-1 | Interest only. | ||||||||||||
-2 | Maturity Date is the earlier of the loan maturity date under the loan agreement, or the “Anticipated Repayment Date” as specifically defined in the loan agreement, which is the date after which substantial economic penalties apply if the loan has not been paid off. | ||||||||||||
-3 | Principal payments based on a 30-year amortization schedule. |
EQUITY_Tables
EQUITY (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 three months ended March 31, 2014: | |||||||||
Period | Amount per | Period Covered | Dividend Paid Date | ||||||
Share/Unit | |||||||||
First Quarter 2014 | $ | 0.22 | January 1, 2014 to March 31, 2014 | March 28, 2014 | |||||
Activity of restricted stock awards | ' | ||||||||
The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2014: | |||||||||
Units | Weighted Average Grant Date Fair Value | ||||||||
Nonvested at January 1, 2014 | 629,058 | $ | 15.58 | ||||||
Granted | 112,119 | 29.96 | |||||||
Vested | (310,194 | ) | 15.42 | ||||||
Forfeited | — | — | |||||||
Nonvested at March 31, 2014 | 430,983 | $ | 19.44 | ||||||
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 March 31, | |||||||||
2014 | 2013 | ||||||||
NUMERATOR | |||||||||
Income from operations | $ | 6,658 | $ | 4,865 | |||||
Less: Net income attributable to restricted shares | (70 | ) | (132 | ) | |||||
Less: Income from operations attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | |||||
Net income attributable to common stockholders—basic | $ | 4,602 | $ | 3,238 | |||||
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | 4,602 | $ | 3,238 | |||||
Plus: Income from operations attributable to unitholders in the Operating Partnership | 1,986 | 1,495 | |||||||
Net income attributable to common stockholders—diluted | $ | 6,588 | $ | 4,733 | |||||
DENOMINATOR | |||||||||
Weighted average common shares outstanding—basic | 40,582,792 | 39,033,013 | |||||||
Effect of dilutive securities—conversion of Operating Partnership units | 17,909,681 | 18,023,435 | |||||||
Weighted average common shares outstanding—diluted | 58,492,473 | 57,056,448 | |||||||
Earnings per common share, basic | $ | 0.11 | $ | 0.08 | |||||
Earnings per common share, diluted | $ | 0.11 | $ | 0.08 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Current minimum annual payments under the leases | ' | ||||
Current minimum annual payments under the leases are as follows, as of March 31, 2014 (in thousands): | |||||
Year Ending December 31, | |||||
2014 (nine months ending December 31, 2014) | $ | 1,935 | |||
2015 | 2,636 | ||||
2016 | 1,709 | ||||
2017 | 736 | (1) | |||
2018 | 740 | ||||
Thereafter | 2,221 | ||||
Total | $ | 9,977 | |||
-1 | Lease payments on the Waikiki Beach Walk lease will be equal to fair rental value from March 2017 through the end of the lease term. In the table, we have shown the lease payments for this period based on the stated rate for the month of February 2017 of $61,690. |
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Leases [Abstract] | ' | |||
Current minimum future rentals under the leases | ' | |||
As of March 31, 2014, 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, | ||||
2014 (nine months ending December 31, 2014) | $ | 116,016 | ||
2015 | 148,996 | |||
2016 | 129,347 | |||
2017 | 112,064 | |||
2018 | 79,838 | |||
Thereafter | 155,343 | |||
Total | $ | 741,604 | ||
COMPONENTS_OF_RENTAL_INCOME_AN1
COMPONENTS OF RENTAL INCOME AND EXPENSE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Operating Leases, Income Statement, Lease Revenue [Abstract] | ' | |||||||
Principal components of rental income | ' | |||||||
The principal components of rental income are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Minimum rents | ||||||||
Retail | $ | 17,292 | $ | 17,351 | ||||
Office | 20,236 | 20,500 | ||||||
Multifamily | 3,834 | 3,583 | ||||||
Mixed-use | 2,470 | 2,420 | ||||||
Cost reimbursement | 6,804 | 5,671 | ||||||
Percentage rent | 425 | 418 | ||||||
Hotel revenue | 9,002 | 8,848 | ||||||
Other | 419 | 431 | ||||||
Total rental income | $ | 60,482 | $ | 59,222 | ||||
Principal components of rental expenses | ' | |||||||
The principal components of rental expenses are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Rental operating | $ | 6,526 | $ | 6,314 | ||||
Hotel operating | 5,553 | 5,482 | ||||||
Repairs and maintenance | 2,122 | 2,114 | ||||||
Marketing | 390 | 352 | ||||||
Rent | 611 | 613 | ||||||
Hawaii excise tax | 965 | 939 | ||||||
Management fees | 453 | 472 | ||||||
Total rental expenses | $ | 16,620 | $ | 16,286 | ||||
OTHER_INCOME_NET_Tables
OTHER INCOME , NET (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Principal components of other income (expense), net | ' | |||||||
The principal components of other income (expense), net, are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Interest and investment income | $ | 48 | $ | 8 | ||||
Income tax expense | (112 | ) | (297 | ) | ||||
Other non-operating income | — | 10 | ||||||
Total other income (expense), net | $ | (64 | ) | $ | (279 | ) |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of segments operating activity | ' | |||||||
The following table represents operating activity within our reportable segments (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Total Retail | ||||||||
Property revenue | $ | 22,999 | $ | 22,154 | ||||
Property expense | (6,058 | ) | (4,971 | ) | ||||
Segment profit | 16,941 | 17,183 | ||||||
Total Office | ||||||||
Property revenue | 22,831 | 22,422 | ||||||
Property expense | (6,893 | ) | (6,436 | ) | ||||
Segment profit | 15,938 | 15,986 | ||||||
Total Multifamily | ||||||||
Property revenue | 4,130 | 3,875 | ||||||
Property expense | (1,427 | ) | (1,442 | ) | ||||
Segment profit | 2,703 | 2,433 | ||||||
Total Mixed-Use | ||||||||
Property revenue | 13,993 | 13,729 | ||||||
Property expense | (8,268 | ) | (8,237 | ) | ||||
Segment profit | 5,725 | 5,492 | ||||||
Total segments’ profit | $ | 41,307 | $ | 41,094 | ||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Total segments’ profit | $ | 41,307 | $ | 41,094 | ||||
General and administrative | (4,612 | ) | (4,201 | ) | ||||
Depreciation and amortization | (16,341 | ) | (17,013 | ) | ||||
Interest expense | (13,632 | ) | (14,736 | ) | ||||
Other income (expense), net | (64 | ) | (279 | ) | ||||
Net income | 6,658 | 4,865 | ||||||
Net income attributable to restricted shares | (70 | ) | (132 | ) | ||||
Net income attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | ||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 4,602 | $ | 3,238 | ||||
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): | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Net Real Estate | ||||||||
Retail | $ | 647,816 | $ | 651,707 | ||||
Office | 811,097 | 790,153 | ||||||
Multifamily | 34,984 | 35,349 | ||||||
Mixed-Use | 199,032 | 199,627 | ||||||
$ | 1,692,929 | $ | 1,676,836 | |||||
Secured Notes Payable (1) | ||||||||
Retail | $ | 303,101 | $ | 303,249 | ||||
Office | 427,000 | 427,256 | ||||||
Multifamily | 101,444 | 101,444 | ||||||
Mixed-Use | 130,310 | 130,310 | ||||||
$ | 961,855 | $ | 962,259 | |||||
-1 | Excludes unamortized fair market value adjustments of $9.4 million and $10.1 million as of March 31, 2014 and December 31, 2013, respectively. | |||||||
Capital expenditures for each segment | ' | |||||||
Capital expenditures for each segment for the three months ended March 31, 2014 and 2013 were as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Capital Expenditures (1) | ||||||||
Retail | $ | 1,506 | $ | 1,947 | ||||
Office | 7,091 | 7,862 | ||||||
Multifamily | 21,877 | 143 | ||||||
Mixed-Use | 822 | 288 | ||||||
$ | 31,296 | $ | 10,240 | |||||
-1 | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Jan. 09, 2014 | Dec. 31, 2013 | |
Segment | |||
Property | |||
Employee | |||
Room | |||
Derivative [Line Items] | ' | ' | ' |
Number of employees | 120 | ' | ' |
Office, retail, multifamily, and mixed-use Operating properties | 23 | ' | ' |
Properties held for development | 5 | ' | ' |
Number of operating segments | 4 | ' | ' |
Room in mixed-use segment all-suite hotel | 369 | ' | ' |
Term loan | $100,000,000 | $100,000,000 | $0 |
Cash Flow Hedging | Interest Rate Swap | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount | ' | $100,000,000 | ' |
Interest rate on derivative | ' | 3.08% | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Supplement Disclosures Related to Consolidated Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Total interest costs incurred | $14,467 | $15,093 |
Interest capitalized | 835 | 357 |
Interest expense | 13,632 | 14,736 |
Cash paid for interest, net of amounts capitalized | 12,724 | 13,128 |
Cash paid for income taxes | 0 | 0 |
Accounts payable and accrued liabilities for construction in progress | -890 | 556 |
Accrued leasing commissions | ($630) | $689 |
ACQUIRED_INPLACE_LEASES_AND_AB2
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Acquired above market leases, net | $6,692 | $7,399 |
Other intangible assets, accumulated amortization | -1,600 | -1,554 |
Below market leases | 76,502 | 76,502 |
Below market leases, accumulated amortization | -29,887 | -28,592 |
Acquired lease intangible liabilities, net | 46,615 | 47,910 |
Leases, Acquired-in-Place | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Acquired above market leases, net | 62,734 | 62,813 |
Other intangible assets, accumulated amortization | -39,882 | -38,279 |
Above Market Leases | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Acquired above market leases, net | 28,262 | 28,279 |
Other intangible assets, accumulated amortization | -21,570 | -20,880 |
Lease Agreements | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible assets, net | $29,544 | $31,933 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Minimum | Maximum | Deferred Credits and Other Liabilities | Interest Rate Swap | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of interest rate swap | $746,000 | $0 | ' | ' | $700,000 | ' |
Change in valuation of interest rate swaps | ' | ' | ' | ' | ' | $700,000 |
Rates of secured notes payable | ' | ' | 3.53% | 5.18% | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS Financial Liabilities Fair Value Measurement on a Recurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation liability | $821 | $769 |
Fair value of interest rate swap | 746 | 0 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation liability | 0 | 0 |
Fair value of interest rate swap | 0 | 0 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation liability | 821 | 769 |
Fair value of interest rate swap | 746 | 0 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation liability | 0 | 0 |
Fair value of interest rate swap | $0 | $0 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS Carrying Amount and Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Secured notes payable | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | $952,498 | $952,174 |
Secured notes payable | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | 993,568 | 990,296 |
Term loan | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | 100,000 | 0 |
Term loan | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | 100,000 | 0 |
Line of credit | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | 0 | 93,000 |
Line of credit | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | $0 | $93,000 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Leasing commissions, net of accumulated amortization of $20,523 and $19,606 respectively | $17,152 | $18,071 |
Acquired above market leases, net | 6,692 | 7,399 |
Acquired in-place leases, net | 22,852 | 24,534 |
Lease incentives, net of accumulated amortization of $2,683 and $2,590, respectively | 1,017 | 1,110 |
Other intangible assets, net of accumulated amortization of $1,600 and $1,554, respectively | 598 | 655 |
Debt issuance costs, net of accumulated amortization of $3,272 and $2,985, respectively | 4,302 | 2,632 |
Prepaid expenses and other | 3,713 | 3,269 |
Total other assets | $56,326 | $57,670 |
OTHER_ASSETS_Parenthetical_Det
OTHER ASSETS (Parenthetical) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Leasing commissions, accumulative amortization | $20,523 | $19,606 |
Lease incentives, accumulated amortization | 2,683 | 2,590 |
Other intangible assets, accumulated amortization | 1,600 | 1,554 |
Debt issuance costs, accumulated amortization | $3,272 | $2,985 |
OTHER_LIABILITIES_AND_DEFERRED2
OTHER LIABILITIES AND DEFERRED CREDITS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Acquired below market leases, net | $46,615 | $47,910 |
Prepaid rent and deferred revenue | 8,209 | 7,506 |
Deferred rent expense and lease intangible | 773 | 829 |
Deferred compensation | 821 | 769 |
Deferred tax liability | 233 | 233 |
Straight-line rent liability | 1,020 | 1,145 |
Interest rate swap liability | 746 | 0 |
Other liabilities | 97 | 73 |
Total other liabilities and deferred credits | $58,514 | $58,465 |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended |
Jan. 09, 2014 | |
Extension_Option | |
Amended and Restated Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Revolving credit facility borrowing limit, maximum borrowing capacity | $350,000,000 |
Outstanding amount on credit facility | 100,000,000 |
Amended and Restated Credit Facility | Subject to meeting specified requirements and obtaining additional commitments | ' |
Debt Instrument [Line Items] | ' |
Line of Credit Facility, Allowable Additional Borrowing Capacity | 250,000,000 |
Line of credit | Amended and Restated Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Maximum leverage ratio of revolving credit facility (in percent) | 60.00% |
Maximum Leverage Ratio, Material Acquisition Period | 65.00% |
Percent of net proceeds of any additional equity issuances in relation to net proceeds as of Offering | 75.00% |
Maximum Recourse Indebtedness of Total Asset Value | 15.00% |
Maximum Unsecured Leverage Ratio | 60.00% |
Maximum Unsecured Leverage Ratio, Material Acquisition Period | 65.00% |
Minimum Tangible Net Worth | 721,160,000 |
Percentage Limit On Annual Distributions In Relation To Funds From Operations | 95.00% |
Line of credit | Amended and Restated Credit Facility | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Revolving credit facility borrowing limit, maximum borrowing capacity | 250,000,000 |
Debt Instrument, Extension Options | 2 |
Debt Instrument, Extension Term | '6 months |
Line of credit | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Description of Variable Rate Basis | 'LIBOR |
Line of credit | Amended and Restated Credit Facility | Base Rate | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Description of Variable Rate Basis | 'base rate |
Debt Instrument, Variable Rate Basis, One | 'prime rate |
Debt Instrument, Spread on Variable Rate Basis, Two | 0.50% |
Debt Instrument, Spread on Variable Rate Basis, Three | 1.00% |
Debt Instrument, Variable Rate Basis, Two | 'federal funds rate |
Debt Instrument, Variable Rate Basis, Three | 'Eurodollar |
Term loan | Amended and Restated Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Revolving credit facility borrowing limit, maximum borrowing capacity | $100,000,000 |
Debt Instrument, Extension Options | 3 |
Debt Instrument, Extension Term | '12 months |
Term loan | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Description of Variable Rate Basis | 'LIBOR |
Minimum | Amended and Restated Credit Facility | Base Rate | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.35% |
Minimum | Line of credit | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.35% |
Minimum | Term loan | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.30% |
Minimum | Term loan | Amended and Restated Credit Facility | Base Rate | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.30% |
Maximum | Amended and Restated Credit Facility | Base Rate | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.95% |
Maximum | Line of credit | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.95% |
Maximum | Term loan | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.90% |
Maximum | Term loan | Amended and Restated Credit Facility | Base Rate | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.90% |
Future Year Period Two | Line of credit | ' |
Debt Instrument [Line Items] | ' |
Minimum fixed charge coverage ratio on revolving credit facility (in percent) | 1.5 |
Minimum Unsecured Interest Coverage Ratio | 175.00% |
Future Year Period Two | Line of credit | Amended and Restated Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Maximum secured leverage ratio on revolving credit facility (in percent) | 40.00% |
Maximum Secured Leverage Ratio, Material Acquisition Period | 45.00% |
Future Year Period One | Line of credit | Amended and Restated Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Maximum secured leverage ratio on revolving credit facility (in percent) | 45.00% |
Maximum Secured Leverage Ratio, Material Acquisition Period | 50.00% |
Interest Rate Swap | Cash Flow Hedging | ' |
Debt Instrument [Line Items] | ' |
Interest rate on derivative | 3.08% |
DEBT_Summary_of_Total_Secured_
DEBT Summary of Total Secured Notes Payable Outstanding (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Total | $961,855 | $962,259 | ||
Unamortized fair value adjustment | -9,357 | -10,085 | ||
Total Debt Outstanding | 952,498 | 952,174 | ||
Period of amortization schedule (in years) | '30 years | ' | ||
Waikele Center | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 140,700 | [1] | 140,700 | [1] |
Stated Interest Rate (in percent) | 5.15% | [1] | ' | |
Stated Maturity Date | 1-Nov-14 | [1] | ' | |
Shops At Kalakaua | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 19,000 | [1] | 19,000 | [1] |
Stated Interest Rate (in percent) | 5.45% | [1] | ' | |
Stated Maturity Date | 1-May-15 | [1] | ' | |
The Land Mark at One Market | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 133,000 | [1] | 133,000 | [1] |
Stated Interest Rate (in percent) | 5.61% | [1] | ' | |
Stated Maturity Date | 5-Jul-15 | [1] | ' | |
Del Monte Center | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 82,300 | [1] | 82,300 | [1] |
Stated Interest Rate (in percent) | 4.93% | [1] | ' | |
Stated Maturity Date | 8-Jul-15 | [1] | ' | |
First And Main | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 84,500 | [1] | 84,500 | [1] |
Stated Interest Rate (in percent) | 3.97% | [1] | ' | |
Stated Maturity Date | 1-Jul-16 | [1] | ' | |
Imperial Beach Gardens | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 20,000 | [1] | 20,000 | [1] |
Stated Interest Rate (in percent) | 6.16% | [1] | ' | |
Stated Maturity Date | 1-Sep-16 | [1] | ' | |
Mariners Point | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 7,700 | [1] | 7,700 | [1] |
Stated Interest Rate (in percent) | 6.09% | [1] | ' | |
Stated Maturity Date | 1-Sep-16 | [1] | ' | |
South Bay Marketplace | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 23,000 | [1] | 23,000 | [1] |
Stated Interest Rate (in percent) | 5.48% | [1] | ' | |
Stated Maturity Date | 10-Feb-17 | [1] | ' | |
Waikiki Beach Walk - Retail | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 130,310 | [1] | 130,310 | [1] |
Stated Interest Rate (in percent) | 5.39% | [1] | ' | |
Stated Maturity Date | 1-Jul-17 | [1] | ' | |
Solana Beach Corporate Centre Three To Four | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 36,691 | [2] | 36,804 | [2] |
Stated Interest Rate (in percent) | 6.39% | [2] | ' | |
Stated Maturity Date | 1-Aug-17 | [2] | ' | |
Loma Palisades | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 73,744 | [1] | 73,744 | [1] |
Stated Interest Rate (in percent) | 6.09% | [1] | ' | |
Stated Maturity Date | 1-Jul-18 | [1] | ' | |
One Beach Street | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 21,900 | [1] | 21,900 | [1] |
Stated Interest Rate (in percent) | 3.94% | [1] | ' | |
Stated Maturity Date | 1-Apr-19 | [1] | ' | |
Torrey Reserve North Court | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 21,304 | [3] | 21,377 | [3] |
Stated Interest Rate (in percent) | 7.22% | [3] | ' | |
Stated Maturity Date | 1-Jun-19 | [3] | ' | |
Torrey Reserve | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 7,175 | [3] | 7,200 | [3] |
Stated Interest Rate (in percent) | 6.36% | [3] | ' | |
Stated Maturity Date | 1-Jun-20 | [3] | ' | |
Solana Beach Corporate Centre One To Two | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 11,430 | [3] | 11,475 | [3] |
Stated Interest Rate (in percent) | 5.91% | [3] | ' | |
Stated Maturity Date | 1-Jun-20 | [3] | ' | |
Solana Beach Towne Centre | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | 38,101 | [3] | 38,249 | [3] |
Stated Interest Rate (in percent) | 5.91% | [3] | ' | |
Stated Maturity Date | 1-Jun-20 | [3] | ' | |
City Center Bellevue | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured notes payable, Principal Balance | $111,000 | [1] | $111,000 | [1] |
Stated Interest Rate (in percent) | 3.98% | [1] | ' | |
Stated Maturity Date | 1-Nov-22 | [1] | ' | |
[1] | . | |||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmJlODAyOGFmMzBkODQ3YzI5MWUyNjhhNDdjZDAzYjYxfFRleHRTZWxlY3Rpb246MUJDRTBFREFENjJEMEI2QUM2RkY4RjU1Mzk1ODc0OEIM} | |||
[3] | Principal payments based on a 30-year amortization schedule. |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | 6-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
At The Market Equity Program | At The Market Equity Program | Commissions | Other Offering Costs | Performance Based Restricted Stock | Restricted Stock Units (RSUs) | |||
Agent | At The Market Equity Program | At The Market Equity Program | Equity Incentive Award Plan 2011 | |||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sales agents | ' | ' | 4 | ' | ' | ' | ' | ' |
Aggregate offering price of common share | ' | ' | $150,000,000 | ' | ' | ' | ' | ' |
Common shares issued (in shares) | ' | ' | ' | 1,435,215 | ' | ' | ' | ' |
Weighted average price per share issued | ' | ' | ' | $33.06 | ' | ' | ' | ' |
Proceeds from issuance of common stock, net | 46,926,000 | 0 | ' | 47,400,000 | ' | ' | ' | ' |
Payments of stock issuance costs | ' | ' | ' | ' | 400,000 | 100,000 | ' | ' |
Remaining capacity to issue | ' | ' | ' | 76,600,000 | ' | ' | ' | ' |
Noncontrolling common units | 17,905,257 | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interests classified as noncontrolling | 30.10% | ' | ' | ' | ' | ' | ' | ' |
Conversion of operating partnership units (in shares) | 11,852 | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted stock awarded | ' | ' | ' | ' | ' | ' | 112,119 | 112,119 |
Noncash compensation expense | 500,000 | 700,000 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | $4,400,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average unvested shares outstanding | 406,856 | 631,199 | ' | ' | ' | ' | ' | ' |
EQUITY_Dividends_Declare_and_P
EQUITY Dividends Declare and Paid on Shares on Common Stock and Noncontrolling Common Units (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Dividends Period | 'First Quarter 2014 |
Amount per Share/Unit | $0.22 |
Dividends Period Covered | 'January 1, 2014 to March 31, 2014 |
Dividends Date Paid | 28-Mar-14 |
EQUITY_Summary_of_Activity_of_
EQUITY Summary of Activity of Restricted Stock Awards (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock Units (RSUs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Nonvested, Beginning, Shares | 629,058 |
Granted, Shares | 112,119 |
Vested, Shares | -310,194 |
Forfeited, Shares | 0 |
Nonvested, End of year, shares | 430,983 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Nonvested, Beginning, Weighted Average Grant Date Fair Value | $15.58 |
Granted, Weighted Average Grant Date Fair Value | $29.96 |
Vested, Weighted Average Grant Date Fair Value | $15.42 |
Forfeited, Weighted Average Grant Date Fair Value | $0 |
Nonvested, End of Year, Weighted Average Grant Date Fair Value | $19.44 |
EQUITY_Computation_of_Basic_an
EQUITY Computation of Basic and Diluted EPS (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Income from continuing operations | $6,658 | $4,865 |
Less: Net income attributable to restricted shares | -70 | -132 |
Less: Income from continuing operations attributable to unitholders in the Operating Partnership | -1,986 | -1,495 |
Income from continuing operations attributable to American Assets Trust, Inc. common stockholders-basic | 4,602 | 3,238 |
Income from continuing operations attributable to American Assets Trust, Inc. common stockholders-basic | 4,602 | 3,238 |
Net income attributable to common stockholders-diluted | $6,588 | $4,733 |
Weighted average common shares outstanding-basic | 40,582,792 | 39,033,013 |
Effect of dilutive securities-conversion of Operating Partnership units | 17,909,681 | 18,023,435 |
Weighted average common shares outstanding - diluted | 58,492,473 | 57,056,448 |
Earnings per common share, basic | $0.11 | $0.08 |
Earnings per common share, diluted | $0.11 | $0.08 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax liability | ($233) | ($233) |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property | ||
Commitment And Contingencies [Line Items] | ' | ' |
Termination payment | $6.50 | ' |
Percentage, partner's common units | 50.00% | ' |
Transfer taxes accrued at time of Offering | $6.60 | ' |
Number of consolidated properties located in Southern California | 12 | ' |
Maximum percentage of total revenue provided by any single tenant | 10.00% | 10.00% |
The Land Mark at One Market | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Number of lease extension options | 2 | ' |
Years, lease extension options length (in years) | '5 years | ' |
Quicksilver | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Percent annual lease amount increase (in percent) | 3.40% | ' |
Waikiki Beach Walk - Retail | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Property management fee, percent (in percent) | 3.00% | ' |
Outrigger Hotels | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Property management fee, percent (in percent) | 6.00% | ' |
Number of calendar months termination fee is based | '2 months | ' |
Maximum percentage of hotel's fiscal year gross revenues paid for aggregate yearly management fee | 3.50% | ' |
Previous months of management fees | '12 months | ' |
Hotel management agreement default penalty factor of previous twelve months of management fees in first 11 years of term | 8 | ' |
Years in hotel management agreement term | '11 years | ' |
Hotel management agreement default penalty factor of previous twelve months of management fees in twelfth year of term | 4 | ' |
Hotel management agreement default penalty factor of previous twelve months of management fees in thirteenth year of term | 3 | ' |
Hotel management agreement default penalty factor of previous twelve months of management fees in fourteenth year of term | 2 | ' |
Hotel management agreement default penalty factor of previous twelve months of management fees in fifteenth year of term | 1 | ' |
Outrigger Hotels | Future Year Period One | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years in hotel management agreement term | '15 years | ' |
Outrigger Hotels | Future Year Period Two | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years in hotel management agreement term | '14 years | ' |
Outrigger Hotels | Future Year Period Three | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years in hotel management agreement term | '13 years | ' |
Outrigger Hotels | Future Year Period Four | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years in hotel management agreement term | '12 years | ' |
Outrigger Hotels | Maximum | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Property management fee, percent (in percent) | 3.00% | ' |
Wbw Hotel Lessee Llc | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years of contract | '20 years | ' |
Percentage of hotel occupancy gross revenue paid for program fee | 4.00% | ' |
Wbw Hotel Lessee Llc | Future Time Period Prior to 12-31-2021 | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Percentage of hotel occupancy gross revenue paid for franchise royalty fee | 4.00% | ' |
Wbw Hotel Lessee Llc | Future Time Period After 12-31-2021 | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Percentage of hotel occupancy gross revenue paid for franchise royalty fee | 5.00% | ' |
Lloyd District Portfolio | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Property management fee, percent (in percent) | 3.50% | ' |
Del Monte Center | Maximum | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years, environmental remediation length | '10 years | ' |
Del Monte Center | Minimum | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Years, environmental remediation length | '2 years | ' |
Total Revenues | Retail | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Percentage of total revenue provided by retail tenants | 36.00% | ' |
Total Revenues | Office | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Percentage of total revenue provided by retail tenants | 35.70% | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Current Minimum Annual Payments under Leases (Details) (USD $) | Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' | |
2014 (nine months ending December 31, 2014) | $1,935,000 | |
2015 | 2,636,000 | |
2016 | 1,709,000 | |
2017 | 736,000 | [1] |
2018 | 740,000 | |
Thereafter | 2,221,000 | |
Total | 9,977,000 | |
Stated monthly lease rate for February 2017 | $61,690 | |
[1] | Lease payments on the Waikiki Beach Walk lease will be equal to fair rental value from March 2017 through the end of the lease term. In the table, we have shown the lease payments for this period based on the stated rate for the month of February 2017 of $61,690. |
OPERATING_LEASES_Details
OPERATING LEASES (Details) | 3 Months Ended |
Mar. 31, 2014 | |
M | |
Leases [Abstract] | ' |
Years, minimum term range of office and retail leases | '3 years |
Years, maximum term range of office and retail leases | '10 years |
Months, minimum term of apartment leases | '7 months |
Months, maximum term of apartment leases | '15 months |
Future minimum rentals term, maximum | 12 |
OPERATING_LEASES_Minimum_Futur
OPERATING LEASES Minimum Future Rentals from Noncancelable Operating Leases (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 (nine months ending December 31, 2014) | $116,016 |
2015 | 148,996 |
2016 | 129,347 |
2017 | 112,064 |
2018 | 79,838 |
Thereafter | 155,343 |
Total | $741,604 |
COMPONENTS_OF_RENTAL_INCOME_AN2
COMPONENTS OF RENTAL INCOME AND EXPENSE (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ' | ' |
Recognition of straight-line rents | $1 | $0.70 |
Recognition of amortization of above and below market leases | $0.60 | $0.50 |
COMPONENTS_OF_RENTAL_INCOME_AN3
COMPONENTS OF RENTAL INCOME AND EXPENSE Component of Rental Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Rental Income [Line Items] | ' | ' |
Cost reimbursement | $6,804 | $5,671 |
Percentage rent | 425 | 418 |
Hotel revenue | 9,002 | 8,848 |
Other | 419 | 431 |
Total rental income | 60,482 | 59,222 |
Total Retail | ' | ' |
Rental Income [Line Items] | ' | ' |
Minimum rents | 17,292 | 17,351 |
Total Office | ' | ' |
Rental Income [Line Items] | ' | ' |
Minimum rents | 20,236 | 20,500 |
Total Multifamily | ' | ' |
Rental Income [Line Items] | ' | ' |
Minimum rents | 3,834 | 3,583 |
Total Mixed-Use | ' | ' |
Rental Income [Line Items] | ' | ' |
Minimum rents | $2,470 | $2,420 |
COMPONENTS_OF_RENTAL_INCOME_AN4
COMPONENTS OF RENTAL INCOME AND EXPENSE Components of Rental Expenses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ' | ' |
Rental operating | $6,526 | $6,314 |
Hotel operating | 5,553 | 5,482 |
Repairs and maintenance | 2,122 | 2,114 |
Marketing | 390 | 352 |
Rent | 611 | 613 |
Hawaii excise tax | 965 | 939 |
Management fees | 453 | 472 |
Total rental expenses | $16,620 | $16,286 |
OTHER_INCOME_NET_Components_of
OTHER INCOME , NET Components of Other Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Interest and investment income | $48 | $8 |
Income tax expense | -112 | -297 |
Other non-operating income | 0 | 10 |
Total other income (expense), net | ($64) | ($279) |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Total rental income | $60,482,000 | $59,222,000 |
Investment in WBW CHP LLC (in percent) | 47.70% | ' |
ICW Plaza | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total rental income | 500,000 | 500,000 |
WBW CHP LLC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amount Recovered For Reimbursements Of Operating Expense For Related Party | $300,000 | $200,000 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Room | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 4 |
Room in mixed-use segment all-suite hotel | 369 |
SEGMENT_REPORTING_Operating_Ac
SEGMENT REPORTING Operating Activity Within Reportable Segments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
OPERATING INCOME | $20,354 | $19,880 |
Total Segments' profit | 41,307 | 41,094 |
Total Retail | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property revenue | 22,999 | 22,154 |
Property expense | -6,058 | -4,971 |
OPERATING INCOME | 16,941 | 17,183 |
Total Office | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property revenue | 22,831 | 22,422 |
Property expense | -6,893 | -6,436 |
OPERATING INCOME | 15,938 | 15,986 |
Total Multifamily | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property revenue | 4,130 | 3,875 |
Property expense | -1,427 | -1,442 |
OPERATING INCOME | 2,703 | 2,433 |
Total Mixed-Use | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property revenue | 13,993 | 13,729 |
Property expense | -8,268 | -8,237 |
OPERATING INCOME | $5,725 | $5,492 |
SEGMENT_REPORTING_Reconciliati
SEGMENT REPORTING Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting [Abstract] | ' | ' |
Total Segments' profit | $41,307 | $41,094 |
General and administrative | -4,612 | -4,201 |
Depreciation and amortization | -16,341 | -17,013 |
Interest expense | 13,632 | 14,736 |
Other income (expense), net | -64 | -279 |
NET INCOME | 6,658 | 4,865 |
Net income attributable to restricted shares | -70 | -132 |
Net income attributable to unitholders in the Operating Partnership | 1,986 | 1,495 |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $4,602 | $3,238 |
SEGMENT_REPORTING_Net_Real_Est
SEGMENT REPORTING Net Real Estate and Secured Note Payable Balances (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Real Estate | $1,692,929 | $1,676,836 | ||
Secured Notes Payable | 961,855 | [1] | 962,259 | [1] |
Unamortized fair value adjustment | 9,357 | 10,085 | ||
Total Retail | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Real Estate | 647,816 | 651,707 | ||
Secured Notes Payable | 303,101 | [1] | 303,249 | [1] |
Total Office | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Real Estate | 811,097 | 790,153 | ||
Secured Notes Payable | 427,000 | [1] | 427,256 | [1] |
Total Multifamily | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Real Estate | 34,984 | 35,349 | ||
Secured Notes Payable | 101,444 | [1] | 101,444 | [1] |
Total Mixed-Use | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Real Estate | 199,032 | 199,627 | ||
Secured Notes Payable | $130,310 | [1] | $130,310 | [1] |
[1] | Excludes unamortized fair market value adjustments of $9.4 million and $10.1 million as of March 31, 2014 and December 31, 2013, respectively. |
SEGMENT_REPORTING_Capital_Expe
SEGMENT REPORTING Capital Expenditures (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital Expenditures | $31,296 | [1] | $10,240 | [1] |
Total Retail | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital Expenditures | 1,506 | [1] | 1,947 | [1] |
Total Office | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital Expenditures | 7,091 | [1] | 7,862 | [1] |
Total Multifamily | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital Expenditures | 21,877 | [1] | 143 | [1] |
Total Mixed-Use | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital Expenditures | $822 | [1] | $288 | [1] |
[1] | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. |