Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AAT | |
Entity Registrant Name | AMERICAN ASSETS TRUST, INC. | |
Entity Central Index Key | 1,500,217 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,405,906 | |
American Assets Trust, L.P. | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AMERICAN ASSETS TRUST, L.P.. | |
Entity Central Index Key | 1,509,570 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Operating real estate | $ 2,167,426 | $ 2,163,444 |
Construction in progress | 86,189 | 73,121 |
Held for development | 9,461 | 9,463 |
Total Real estate, at cost | 2,263,076 | 2,246,028 |
Accumulated depreciation | (426,076) | (411,166) |
Net real estate | 1,837,000 | 1,834,862 |
Cash and cash equivalents | 44,007 | 39,925 |
Restricted cash | 9,295 | 11,623 |
Accounts receivable, net | 7,586 | 7,518 |
Deferred rent receivables, net | 38,633 | 38,422 |
Other assets, net | 41,305 | 41,939 |
TOTAL ASSETS | 1,977,826 | 1,974,289 |
LIABILITIES AND EQUITY | ||
Secured notes payable, net | 494,883 | 579,000 |
Unsecured notes payable, net | 545,883 | 446,613 |
Unsecured line of credit | 20,000 | 30,000 |
Accounts payable and accrued expenses | 37,014 | 31,821 |
Security deposits payable | 6,065 | 5,956 |
Other liabilities and deferred credits, net | 53,580 | 51,972 |
Total liabilities | $ 1,157,425 | $ 1,145,362 |
Commitments and contingencies (Note 11) | ||
American Assets Trust, Inc. stockholders’ equity | ||
Common stock, $0.01 par value, 490,000,000 shares authorized, 45,407,402 and 45,407,719 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | $ 454 | $ 454 |
Additional paid-in capital | 864,038 | 863,432 |
Accumulated dividends in excess of net income | (67,724) | (64,066) |
Accumulated other comprehensive loss | (3,143) | (258) |
Total American Assets Trust, Inc. stockholders’ equity | 793,625 | 799,562 |
Noncontrolling interests | 26,776 | 29,365 |
Total equity | 820,401 | 828,927 |
Partners' Capital [Abstract] | ||
TOTAL LIABILITIES AND EQUITY | 1,977,826 | 1,974,289 |
American Assets Trust, L.P. | ||
ASSETS | ||
Operating real estate | 2,167,426 | 2,163,444 |
Construction in progress | 86,189 | 73,121 |
Held for development | 9,461 | 9,463 |
Total Real estate, at cost | 2,263,076 | 2,246,028 |
Accumulated depreciation | (426,076) | (411,166) |
Net real estate | 1,837,000 | 1,834,862 |
Cash and cash equivalents | 44,007 | 39,925 |
Restricted cash | 9,295 | 11,623 |
Accounts receivable, net | 7,586 | 7,518 |
Deferred rent receivables, net | 38,633 | 38,422 |
Other assets, net | 41,305 | 41,939 |
TOTAL ASSETS | 1,977,826 | 1,974,289 |
LIABILITIES AND EQUITY | ||
Secured notes payable, net | 494,883 | 579,000 |
Unsecured notes payable, net | 545,883 | 446,613 |
Unsecured line of credit | 20,000 | 30,000 |
Accounts payable and accrued expenses | 37,014 | 31,821 |
Security deposits payable | 6,065 | 5,956 |
Other liabilities and deferred credits, net | 53,580 | 51,972 |
Total liabilities | $ 1,157,425 | $ 1,145,362 |
Commitments and contingencies (Note 11) | ||
American Assets Trust, Inc. stockholders’ equity | ||
Accumulated other comprehensive loss | $ (4,365) | $ (339) |
Partners' Capital [Abstract] | ||
Limited partners' capital, 17,899,516 and 17,899,516 units issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 27,998 | 29,446 |
General partner's capital, 45,407,402 and 45,407,719 units issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 796,768 | 799,820 |
Total capital | 820,401 | 828,927 |
TOTAL LIABILITIES AND EQUITY | $ 1,977,826 | $ 1,974,289 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common Shares | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 |
Common stock, shares outstanding (in shares) | 45,407,402 | 45,407,719 |
Common stock, shares issued (in shares) | 45,407,402 | 45,407,719 |
American Assets Trust, L.P. | ||
Limited partners' capital, units issued (in shares) | 17,899,516 | 17,899,516 |
Limited partners' capital, units outstanding (in shares) | 17,899,516 | 17,899,516 |
General partners' capital, units issued (in shares) | 45,407,402 | 45,407,719 |
General partners' capital, units outstanding (in shares) | 45,407,402 | 45,407,719 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
REVENUE: | |||
Rental income | $ 67,245 | $ 62,753 | |
Other property income | 3,486 | 3,282 | |
Total revenue | 70,731 | 66,035 | |
EXPENSES: | |||
Rental expenses | 18,453 | 16,620 | |
Real estate taxes | 6,633 | 6,048 | |
General and administrative | 4,549 | 5,016 | |
Depreciation and amortization | 17,453 | 15,107 | |
Total operating expenses | 47,088 | 42,791 | |
OPERATING INCOME | 23,643 | 23,244 | |
Interest expense | 12,946 | 11,795 | |
Other income (expense), net | 24 | (70) | |
NET INCOME | 10,721 | 11,379 | |
Net income attributable to restricted shares | (43) | (43) | |
Net income attributable to unitholders in the Operating Partnership | (3,027) | (3,309) | |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 7,651 | $ 8,027 | |
EARNINGS PER COMMON SHARE | |||
Earnings per common share, basic (in USD per share) | $ 0.17 | $ 0.18 | |
Weighted average shares of common stock outstanding-basic (in shares) | 45,233,873 | 43,419,762 | |
EARNINGS PER COMMON SHARE, DILUTED | |||
Earnings per common share, diluted (in USD per share) | $ 0.17 | $ 0.18 | |
Weighted average shares of common stock outstanding-diluted (in shares) | 63,133,389 | 61,321,447 | |
Dividends declared per common share (in USD per share) | $ 0.25 | $ 0.2325 | |
COMPREHENSIVE INCOME | |||
Other comprehensive income (loss) - unrealized gain (loss) on swap derivative during the period | $ (3,969) | $ (943) | |
Reclassification of amortization of forward-starting swap included in interest expense | (57) | (58) | |
Comprehensive income | 6,695 | 10,378 | |
Comprehensive income attributable to non-controlling interest | (1,886) | (3,018) | |
Comprehensive income attributable to American Assets Trust, Inc. | 4,809 | 7,360 | |
American Assets Trust, L.P. | |||
REVENUE: | |||
Rental income | 67,245 | 62,753 | |
Other property income | 3,486 | 3,282 | |
Total revenue | 70,731 | 66,035 | |
EXPENSES: | |||
Rental expenses | 18,453 | 16,620 | |
Real estate taxes | 6,633 | 6,048 | |
General and administrative | 4,549 | 5,016 | |
Depreciation and amortization | 17,453 | 15,107 | |
Total operating expenses | 47,088 | 42,791 | |
OPERATING INCOME | 23,643 | 23,244 | |
Interest expense | 12,946 | 11,795 | |
Other income (expense), net | 24 | (70) | |
NET INCOME | 10,721 | 11,379 | |
Net income attributable to restricted shares | (43) | (43) | |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 10,678 | $ 11,336 | |
EARNINGS PER COMMON SHARE | |||
Earnings per common share, basic (in USD per share) | $ 0.17 | $ 0.18 | |
Weighted average shares of common stock outstanding-basic (in shares) | 63,133,389 | 61,321,447 | |
EARNINGS PER COMMON SHARE, DILUTED | |||
Earnings per common share, diluted (in USD per share) | $ 0.17 | $ 0.18 | |
Weighted average shares of common stock outstanding-diluted (in shares) | 63,133,389 | 61,321,447 | |
Distributions per unit (in USD per share) | $ 0.25 | $ 0.2325 | |
COMPREHENSIVE INCOME | |||
Other comprehensive income (loss) - unrealized gain (loss) on swap derivative during the period | $ (3,969) | $ (943) | |
Reclassification of amortization of forward-starting swap included in interest expense | (57) | (58) | |
Comprehensive income | 6,695 | 10,378 | |
Limited Partner | American Assets Trust, L.P. | |||
EXPENSES: | |||
NET INCOME | [1] | 3,027 | |
COMPREHENSIVE INCOME | |||
Comprehensive income attributable to American Assets Trust, Inc. | (1,886) | (3,018) | |
General Partner | American Assets Trust, L.P. | |||
EXPENSES: | |||
NET INCOME | [2] | 7,694 | |
COMPREHENSIVE INCOME | |||
Comprehensive income attributable to American Assets Trust, Inc. | $ 4,809 | $ 7,360 | |
[1] | Consists of limited partnership interests held by third parties. | ||
[2] | Consists of general and limited partnership interests held by American Assets Trust, Inc. |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | American Assets Trust, L.P. | American Assets Trust, L.P.Accumulated Other Comprehensive Income (Loss) | American Assets Trust, L.P.Limited Partner | [1] | American Assets Trust, L.P.General Partner | [2] | SwapAmerican Assets Trust, L.P.Accumulated Other Comprehensive Income (Loss) | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests - Unitholders in the Operating Partnership |
Beginning Balance (in shares) at Dec. 31, 2015 | 45,407,719 | ||||||||||||
Beginning Balance at Dec. 31, 2015 | $ 828,927 | $ 454 | $ 863,432 | $ (64,066) | $ (258) | $ 29,365 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 10,721 | $ 10,721 | $ 3,027 | $ 7,694 | 7,694 | 3,027 | |||||||
Dividends declared and paid | (15,827) | (11,352) | (4,475) | ||||||||||
Stock-based compensation | 618 | 618 | |||||||||||
Shares withheld for employee taxes (in shares) | (317) | (317) | |||||||||||
Shares withheld for employee taxes | (12) | (12) | $ (12) | $ 0 | (12) | ||||||||
Other comprehensive loss - change in value of interest rate swaps | (3,969) | (3,969) | $ (3,969) | (2,844) | (1,125) | ||||||||
Reclassification of amortization of forward-starting swap included in interest expense | (57) | (57) | $ (57) | (41) | (16) | ||||||||
Ending Balance (in shares) at Mar. 31, 2016 | 45,407,402 | ||||||||||||
Ending Balance at Mar. 31, 2016 | 820,401 | $ 454 | 864,038 | (67,724) | (3,143) | 26,776 | |||||||
Beginning partners' capital account (in shares) at Dec. 31, 2015 | 17,899,516 | 45,407,719 | |||||||||||
Beginning partners' capital account at Dec. 31, 2015 | 828,927 | (339) | $ 29,446 | $ 799,820 | |||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Net income | 10,721 | 10,721 | 3,027 | 7,694 | $ 7,694 | 3,027 | |||||||
Distributions | (15,827) | $ (4,475) | (11,352) | ||||||||||
Stock-based compensation | 618 | $ 618 | |||||||||||
Shares withheld for employee taxes (in shares) | (317) | (317) | |||||||||||
Shares withheld for employee taxes | (12) | (12) | $ (12) | $ 0 | $ (12) | ||||||||
Other comprehensive income (loss) - unrealized gain (loss) on swap derivative during the period | (3,969) | (3,969) | $ (3,969) | (2,844) | (1,125) | ||||||||
Reclassification of amortization of forward-starting swap included in interest expense | $ (57) | (57) | (57) | $ (41) | $ (16) | ||||||||
Ending partners' capital account (in shares) at Mar. 31, 2016 | 17,899,516 | 45,407,402 | |||||||||||
Ending partners' capital account at Mar. 31, 2016 | $ 820,401 | $ (4,365) | $ 27,998 | $ 796,768 | |||||||||
[1] | Consists of limited partnership interests held by third parties. | ||||||||||||
[2] | Consists of general and limited partnership interests held by American Assets Trust, Inc. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 10,721 | $ 11,379 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | (964) | (1,353) |
Depreciation and amortization | 17,453 | 15,107 |
Amortization of debt issuance costs and debt fair value adjustments | 1,125 | 1,045 |
Stock-based compensation expense | 618 | 890 |
Other noncash interest expense | (57) | (58) |
Other, net | (1,403) | 180 |
Changes in operating assets and liabilities | ||
Change in restricted cash | 2,471 | 943 |
Change in accounts receivable | 12 | 874 |
Change in other assets | (698) | (1,143) |
Change in accounts payable and accrued expenses | 4,718 | 4,145 |
Change in security deposits payable | 108 | 353 |
Change in other liabilities and deferred credits | 156 | 148 |
Net cash provided by operating activities | 34,260 | 32,510 |
INVESTING ACTIVITIES | ||
Capital expenditures | (17,135) | (44,125) |
Change in restricted cash | (143) | (201) |
Leasing commissions | (617) | (843) |
Net cash used in investing activities | (17,895) | (45,169) |
FINANCING ACTIVITIES | ||
Repayment of secured notes payable | (84,941) | (101,729) |
Proceeds from term loan | 100,000 | 0 |
Proceeds from unsecured line of credit | 10,000 | 20,000 |
Repayment of unsecured line of credit | (20,000) | 0 |
Proceeds from issuance of unsecured notes payable | 0 | 100,000 |
Debt issuance costs | (1,503) | (40) |
Proceeds from issuance of common stock, net | 0 | 10,272 |
Dividends paid to common stock and unitholders | (15,827) | (14,350) |
Shares withheld for employee taxes | (12) | (6,212) |
Net cash (used in) provided by financing activities | (12,283) | 7,941 |
Net increase (decrease) in cash and cash equivalents | 4,082 | (4,718) |
Cash and cash equivalents, beginning of period | 39,925 | 59,357 |
Cash and cash equivalents, end of period | 44,007 | 54,639 |
American Assets Trust, L.P. | ||
OPERATING ACTIVITIES | ||
Net income | 10,721 | 11,379 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | (964) | (1,353) |
Depreciation and amortization | 17,453 | 15,107 |
Amortization of debt issuance costs and debt fair value adjustments | 1,125 | 1,045 |
Stock-based compensation expense | 618 | 890 |
Other noncash interest expense | (57) | (58) |
Other, net | (1,403) | 180 |
Changes in operating assets and liabilities | ||
Change in restricted cash | 2,471 | 943 |
Change in accounts receivable | 12 | 874 |
Change in other assets | (698) | (1,143) |
Change in accounts payable and accrued expenses | 4,718 | 4,145 |
Change in security deposits payable | 108 | 353 |
Change in other liabilities and deferred credits | 156 | 148 |
Net cash provided by operating activities | 34,260 | 32,510 |
INVESTING ACTIVITIES | ||
Capital expenditures | (17,135) | (44,125) |
Change in restricted cash | (143) | (201) |
Leasing commissions | (617) | (843) |
Net cash used in investing activities | (17,895) | (45,169) |
FINANCING ACTIVITIES | ||
Repayment of secured notes payable | (84,941) | (101,729) |
Proceeds from term loan | 100,000 | 0 |
Proceeds from unsecured line of credit | 10,000 | 20,000 |
Repayment of unsecured line of credit | (20,000) | 0 |
Proceeds from issuance of unsecured notes payable | 0 | 100,000 |
Debt issuance costs | (1,503) | (40) |
Contributions from American Assets Trust, Inc. | 0 | 10,272 |
Dividends paid to common stock and unitholders | (15,827) | (14,350) |
Shares withheld for employee taxes | (12) | (6,212) |
Net cash (used in) provided by financing activities | (12,283) | 7,941 |
Net increase (decrease) in cash and cash equivalents | 4,082 | (4,718) |
Cash and cash equivalents, beginning of period | 39,925 | 59,357 |
Cash and cash equivalents, end of period | $ 44,007 | $ 54,639 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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 137 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, 2016 , 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, 2016 , 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 Lomas Santa Fe Plaza Waikele Center Solana Beach Towne Centre Alamo Quarry Market 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 Hassalo on Eighth Mixed-Use Waikiki Beach Walk Retail and Embassy Suites™ Hotel Held for Development and/or Construction in Progress Solana Beach Corporate Centre – Land Solana Beach – Highway 101 – Land Torrey Point (formerly 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 and the Operating Partnership have been prepared in accordance with the rules applicable to Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (“GAAP”) for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and notes therein included in the Company's and Operating Partnership's annual report on Form 10-K for the year ended December 31, 2015 . 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, square footage or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Consolidated Statements of Cash Flows—Supplemental Disclosures The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands): Three Months Ended March 31, 2016 2015 Supplemental cash flow information Total interest costs incurred $ 13,489 $ 14,128 Interest capitalized $ 543 $ 2,333 Interest expense $ 12,946 $ 11,795 Cash paid for interest, net of amounts capitalized $ 11,906 $ 10,459 Cash paid for income taxes $ 75 $ 50 Supplemental schedule of noncash investing and financing activities Accounts payable and accrued liabilities for construction in progress $ 171 $ 205 Accrued leasing commissions $ 251 $ (166 ) 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, 2015 . There have been no changes to our significant accounting policies during the three months ended March 31, 2016 . 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 May 2014, the FASB issued Update No. 2014-09, Revenue from Contracts with Customers. Update No. 2014-09 establishes that companies may recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period; early adoption is not permitted. We are in the process of evaluating the impact this pronouncement will have on our consolidated financial statements. In February 2015, the FASB issued an ASU that requires reporting entities to evaluate whether they should consolidate certain legal entities. The ASU modifies the evaluation of whether limited partnerships and similar legal entities are voting interest entities ("VIEs") and eliminates the presumption that a general partner should consolidate a limited partnership. This affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We adopted this standard during the first quarter of 2016. The guidance does not amend the existing disclosure requirements for variable interest entities (“VIEs”) or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, the Operating Partnership will be a variable interest entity of the Company. As the Operating Partnership is already consolidated in the balance sheets of the Company, the identification of this entity as a variable interest entity has no impact on the consolidated financial statements of the Company. There were no other legal entities qualifying under the scope of the revised guidance that were consolidated as a result of the adoption of this guidance. In addition, there were no other voting interest entities under prior existing guidance determined to be variable interest entities under the revised guidance. In April 2015, the FASB issued an ASU that requires reporting entities to present debt issuance cost related to a note as a direct deduction from the face amount of that note presented in the balance sheet. The ASU requires the amortization of debt issuance costs presented as interest expense. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU retrospectively to all prior periods. We adopted this standard during the first quarter of 2016, resulting in the presentation of current period and prior period debt issuance costs associated with our secured notes payable, unsecured notes payable and unsecured line of credit as a direct reduction from the carrying amount of the related debt instrument. These costs were previously included in other assets, net in our consolidated balance sheets. In February 2016, the FASB issued an ASU that establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this ASU is largely unchanged. Leases will be either classified as sales-type, finance or operating, with classification affecting the pattern of expense recognition in the income statement. The ASU also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are in the process of evaluating the impact this pronouncement will have on our consolidated financial statements. |
ACQUIRED IN-PLACE LEASES AND AB
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 In-place leases $ 52,098 $ 52,289 Accumulated amortization (39,267 ) (38,425 ) Above market leases 22,164 22,201 Accumulated amortization (19,169 ) (18,864 ) Acquired lease intangible assets, net $ 15,826 $ 17,201 Below market leases $ 68,829 $ 68,973 Accumulated accretion (31,835 ) (30,806 ) Acquired lease intangible liabilities, net $ 36,994 $ 38,167 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
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. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We measure the fair value of our deferred compensation liability, which is included in other liabilities and deferred credits on the consolidated balance sheet, on a recurring basis using Level 2 inputs. We measure the fair value of this liability based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. The fair value of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contract at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The fair value of our swaps at March 31, 2016 was a liability of $5.7 million and is included in "other liabilities and deferred credits" on our consolidated balance sheets. For the three months ended March 31, 2016 , the change in valuation on our interest rate swaps were losses of $4.0 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 income (loss) and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contract for the effect of non-performance risk, we considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2016 we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivative. As a result, we have determined that our derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy. A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands): March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Deferred compensation liability $ — $ 956 $ — $ 956 $ — $ 929 $ — $ 929 Interest rate swaps $ — $ 5,654 $ — $ 5,654 $ — $ 1,686 $ — $ 1,686 The fair value of our secured notes payable and unsecured senior guaranteed notes are sensitive to fluctuations in interest rates. Discounted cash flow analysis using observable market interest rates (Level 2) is generally used to estimate the fair value of our secured notes payable, using rates ranging from 3.0% to 6.3% . Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying values of our revolving line of credit and term loan set forth below are deemed to be at fair value since the outstanding debt is directly tied to monthly LIBOR contracts. A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Secured notes payable, net $ 494,883 $ 508,757 $ 579,000 $ 592,956 Unsecured term loans, net $ 198,290 $ 200,000 $ 98,383 $ 100,000 Unsecured senior guaranteed notes, net $ 347,593 $ 369,379 $ 348,230 $ 357,779 Unsecured line of credit $ 20,000 $ 20,000 $ 30,000 $ 30,000 |
DERIVATIVE AND HEDGING
DERIVATIVE AND HEDGING | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE AND HEDGING ACTIVITIES | DERIVATIVE AND HEDGING ACTIVITIES Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. On January 29, 2016, we entered into a forward-starting interest rate swap contract with U.S. Bank National Association to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective $100 million seven-year term loan. The forward-starting seven -year swap contract had a notional amount of $100 million , a termination date of March 1, 2023 , a fixed pay rate of 1.4485% , and a receive rate equal to the one-month LIBOR, with fixed rate payments due monthly commencing April 1, 2016, floating payments due monthly commencing April 1, 2016, and floating reset dates two days prior to the first day of each calculation period. The forward-starting seven-year swap contract accrual period, March 1, 2016 to March 1, 2023 , was designed to match the expected tenor of our then prospective $100 million seven -year term loan, which successfully closed on March 1, 2016. On March 23, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our prospective incremental $50 million seven-year term loan (anticipated to close on or about May 2, 2016). The forward-starting seven -year swap contract had a notional amount of $50 million , a termination date of March 1, 2023 , a fixed pay rate of 1.4410% , and a receive rate equal to the one-month LIBOR, with fixed rate payments due monthly commencing June 1, 2016, floating payments due monthly commencing June 1, 2016, and floating reset dates two days prior to the first day of each calculation period. The forward-starting seven-year swap contract accrual period, May 2, 2016 to March 1, 2023, was designed to match the expected tenor of our prospective incremental $50 million seven -year term loan. There can be no assurances that the prospective incremental $50 million term loan will close on the terms described herein, or at all. On March 29, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise) (anticipated to close on or before March 31, 2017 ). The forward-starting ten -year swap contract had a notional amount of $150 million , a termination date of March 31, 2027 , a fixed pay rate of 1.8800% , and a receive rate equal to the three-month LIBOR, with fixed rate payments due semi-annually commencing September 29, 2017, floating payments due semi-annually commencing September 29, 2017, and floating reset dates the first day of each quarterly period. The forward-starting ten-year swap contract accrual period, March 31, 2017 to March 31, 2027, was designed to match the expected tenor of our prospective new ten -year debt offering (private placement, investment grade bonds, term loan or otherwise). There can be no assurances that the prospective debt offering described above will close on the terms described herein, or at all. The forward-starting interest rate swap contracts have been deemed to be highly effective cash flow hedges and we elected to designate all the forward-starting swap contracts as accounting hedges. The following is a summary of the terms of our interest rate swaps as of March 31, 2016 (dollars in thousands): Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value Liability Bank of America, N.A. $ 100,000 1/9/2014 1/9/2019 $ 2,815 U.S. Bank N.A. $ 100,000 3/1/2016 3/1/2023 $ 1,365 Wells Fargo Bank, N.A. $ 50,000 5/2/2016 3/1/2023 $ 568 Wells Fargo Bank, N.A. $ 150,000 3/31/2017 3/31/2027 $ 906 The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following (in thousands): March 31, 2016 December 31, 2015 Leasing commissions, net of accumulated amortization of $24,332 and $23,565, respectively $ 18,825 $ 18,952 Acquired above market leases, net 2,995 3,337 Acquired in-place leases, net 12,831 13,864 Lease incentives, net of accumulated amortization of $3,439 and $3,341, respectively 411 509 Other intangible assets, net of accumulated amortization of $2,139 and $1,904, respectively 685 941 Prepaid expenses and other 5,558 4,336 Total other assets $ 41,305 $ 41,939 |
OTHER LIABILITIES AND DEFERRED
OTHER LIABILITIES AND DEFERRED CREDITS | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 December 31, 2015 Acquired below market leases, net $ 36,994 $ 38,167 Prepaid rent and deferred revenue 6,998 8,203 Interest rate swap liability 5,654 1,686 Deferred rent expense and lease intangible 468 434 Deferred compensation 956 929 Deferred tax liability 174 174 Straight-line rent liability 2,274 2,319 Other liabilities 62 60 Total other liabilities and deferred credits, net $ 53,580 $ 51,972 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, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt of American Assets Trust, Inc. American Assets Trust, Inc. does not hold any indebtedness. All debt is held directly or indirectly by the Operating Partnership; however, American Assets Trust, Inc. and certain of its subsidiaries have guaranteed the Operating Partnership's obligations under the (i) amended and restated credit facility, (ii) term loan and (iii) senior guaranteed notes. Additionally, American Assets Trust, Inc. has provided carve-out guarantees on certain property-level debt. Debt of American Assets Trust, L.P. Secured notes payable The following is a summary of our total secured notes payable outstanding as of March 31, 2016 and December 31, 2015 (in thousands): Principal Balance as of Stated Interest Rate Stated Maturity Date Description of Debt March 31, 2016 December 31, 2015 as of March 31, 2016 First & Main (1)(2) $ — 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) 35,800 35,920 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) 20,664 20,749 7.22 % June 1, 2019 Torrey Reserve—VCI, VCII, VCIII (3) 6,968 6,995 6.36 % June 1, 2020 Solana Beach Corporate Centre I-II (3) 11,072 11,119 5.91 % June 1, 2020 Solana Beach Towne Centre (3) 36,905 37,065 5.91 % June 1, 2020 City Center Bellevue (1) 111,000 111,000 3.98 % November 1, 2022 499,063 584,002 Unamortized fair value adjustment (3,531 ) (4,259 ) Debt issuance costs, net of accumulated amortization of $1,291 and $1,649, respectively (649 ) (743 ) Total Secured Notes Payable Outstanding $ 494,883 $ 579,000 (1) Interest only. (2) Loan repaid in full, without premium or penalty, on March 1, 2016. (3) Principal payments based on a 30 -year amortization schedule. Certain loans require us to comply with various financial covenants. As of March 31, 2016 , the Operating Partnership was in compliance with these financial covenants. Unsecured notes payable The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of March 31, 2016 and December 31, 2015 (in thousands): Description of Debt Principal Balance as of Stated Interest Rate Stated Maturity Date March 31, 2016 December 31, 2015 as of March 31, 2016 Term Loan A $ 100,000 $ 100,000 Variable (1) January 9, 2019 (2) Senior Guaranteed Notes, Series A 150,000 150,000 4.04 % (3) October 31, 2021 Senior Guaranteed Notes, Series B 100,000 100,000 4.45 % February 2, 2025 Senior Guaranteed Notes, Series C 100,000 100,000 4.50 % April 1, 2025 Term Loan B 100,000 — Variable (4) March 1, 2023 550,000 450,000 Debt issuance costs, net of accumulated amortization of $3,300 and $2,999, respectively (4,117 ) (3,387 ) Total Unsecured Notes Payable $ 545,883 $ 446,613 (1) The Operating Partnership has 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. (2) The Operating Partnership has an option to extend the term loan up to two 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. (3) The Operating Partnership entered into a one-month forward-starting seven -year swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million . The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum. (4) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with the term loan at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. On March 1, 2016, the Operating Partnership entered into a Term Loan Agreement with each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent (the “Term Loan Agreement”). The Term Loan Agreement provides for a new, seven -year unsecured term loan to the Operating Partnership of $100 million that matures on March 1, 2023 (“Term Loan B”). Concurrent with the closing of the Term Loan Agreement, the Operating Partnership drew down the entirety of the $100 million Term Loan B. Borrowings under the Term Loan Agreement with respect to Term Loan B bear interest at floating rates equal to, at our option, either (1) LIBOR , plus a spread which ranges from 1.70% to 2.35% based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0% , (b) the prime rate , (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on our consolidated leverage ratio. Prior to entry into the Term Loan Agreement, the Company entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. The Term Loan Agreement contains a number of customary financial covenants, including, without limitation, tangible networth thresholds, secured and unsecured leverage ratios and fixed charge coverage ratios. Subject to the terms of the Term Loan Agreement and Term Loan B, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal or interest under Term Loan B, and (ii) a default in the payment of certain other indebtedness of the Operating Partnership, the Company or their subsidiaries, the principal and accrued and unpaid interest and prepayment penalties on the outstanding Term Loan B will become due and payable at the option of the Lenders. The Operating Partnership’s obligations under the Term Loan Agreement are initially fully and unconditionally guaranteed by the Company and certain of its subsidiaries. As of March 31, 2016, the Operating Partnership was in compliance with the Term Loan Agreement's financial covenants. Credit Facility On January 9, 2014, the Operating Partnership 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 ("Revolver Loan") and a term loan of $100 million ("Term Loan A"). The Amended and Restated Credit Facility has an accordion feature that may allow the Operating Partnership to increase the availability thereunder up to an additional $250 million , subject to meeting specified requirements and obtaining additional commitments from lenders. At March 31, 2016 , $20 million was outstanding under the Revolver Loan. 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 Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate , (b) the federal funds rate plus 50 bps or (c) 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 Term Loan A), in each case based on our consolidated leverage ratio. For the quarter ended March 31, 2016 , the weighted average interest rate on the Revolver Loan was 1.75% . The Revolver Loan initially matures on January 9, 2018, subject to the Operating Partnership's option to extend the Revolver Loan up to two times, with each such extension for a six -month period. Term Loan A initially matures on January 9, 2016, subject to the Operating Partnership's option to extend Term Loan A up to three times, with each such extension for a 12 -month period. The foregoing extension options are exercisable by the Operating Partnership subject to the satisfaction of certain conditions. Effective as of January 8, 2016, the Operating Partnership exercised the first of three options to extend the maturity date of Term Loan A to January 9, 2017. As of March 31, 2016 , the Operating Partnership was in compliance with the Amended and Restated Credit Facility financial covenants. |
PARTNERS CAPITAL OF AMERICAN AS
PARTNERS CAPITAL OF AMERICAN ASSETS TRUST, L.P. | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. | PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us. Noncontrolling interests consisted of 17,899,516 common units (the “noncontrolling common units”), and represented approximately 28.3% of the ownership interests in our Operating Partnership at March 31, 2016 . 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. Earnings Per Unit of the Operating Partnership Basic earnings (loss) per unit (“EPU”) of the Operating Partnership is computed by dividing income (loss) applicable to unitholders by the weighted average Operating Partnership units outstanding, as adjusted for the effect of participating securities. Operating Partnership units granted in equity-based payment transactions that have non-forfeitable dividend equivalent rights are considered participating securities prior to vesting. The impact of unvested Operating Partnership unit awards on EPU has been calculated using the two-class method whereby earnings are allocated to the unvested Operating Partnership unit awards based on distributions and the unvested Operating Partnership units’ participation rights in undistributed earnings (losses). The calculation of diluted earnings per unit for the three month periods ended March 31, 2016 and 2015 does not include the weighted average of 173,594 and 246,672 unvested Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive to income from continuing operations and net income attributable to the unitholders. |
EQUITY OF AMERICAN ASSETS TRUST
EQUITY OF AMERICAN ASSETS TRUST, INC. | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
EQUITY OF AMERICAN ASSETS TRUST, INC. | EQUITY OF AMERICAN ASSETS TRUST, INC. Stockholders' Equity On May 27, 2015, we entered into an at-the-market ("ATM") equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million . 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. During the three months ended March 31, 2016 , no shares of common stock were sold through the ATM equity program. We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of March 31, 2016 , we had the capacity to issue up to an additional $216.6 million in shares of our common stock under our ATM equity program. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under the ATM equity program. Dividends The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the three months ended March 31, 2016 : Period Amount per Share/Unit Period Covered Dividend Paid Date First Quarter 2016 $ 0.25 January 1, 2016 to March 31, 2016 March 25, 2016 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. 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, 2016 : Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 174,744 $27.11 Granted — $0.00 Vested (1,473 ) $23.24 Forfeited — $0.00 Nonvested at March 31, 2016 173,271 $28.20 We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $0.6 million and $0.9 million , respectively, in noncash compensation expense for the three months ended March 31, 2016 and 2015 , which is included in general and administrative expense on the consolidated statements of comprehensive income. Unrecognized compensation expense was $2.8 million at March 31, 2016 . Earnings Per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings. The weighted average unvested shares outstanding, which are considered participating securities, were 173,594 and 246,672 for the three months ended March 31, 2016 and 2015 , respectively. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights. Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the three months ended March 31, 2016 and 2015 , 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, 2016 2015 NUMERATOR Net income from operations $ 10,721 $ 11,379 Less: Net income attributable to restricted shares (43 ) (43 ) Less: Income from operations attributable to unitholders in the Operating Partnership (3,027 ) (3,309 ) Net income attributable to common stockholders—basic $ 7,651 $ 8,027 Income from operations attributable to American Assets Trust, Inc. common stockholders—basic $ 7,651 $ 8,027 Plus: Income from operations attributable to unitholders in the Operating Partnership 3,027 3,309 Net income attributable to common stockholders—diluted $ 10,678 $ 11,336 DENOMINATOR Weighted average common shares outstanding—basic 45,233,873 43,419,762 Effect of dilutive securities—conversion of Operating Partnership units 17,899,516 17,901,685 Weighted average common shares outstanding—diluted 63,133,389 61,321,447 Earnings per common share, basic $ 0.17 $ 0.18 Earnings per common share, diluted $ 0.17 $ 0.18 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 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. Income tax expense is recorded in other income (expense), net in our consolidated statements of comprehensive income. For each of the three months ended March 31, 2016 and 2015 we recorded income tax expense of $0.1 million . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
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 (the "Annex Lease"), as lessee, a building adjacent to The Landmark under an operating lease effective through June 30, 2021, which we have the option to extend until 2031 by way of two five -year extension options. At Waikiki Beach Walk, we sublease (the "FHB 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 FHB Sublease will increase by approximately 3.4% annually through 2017 and, thereafter, will be equal to fair rental value, as defined in the FHB Sublease, through lease expiration. Current minimum annual payments under the leases are as follows, as of March 31, 2016 (in thousands): Year Ending December 31, 2016 (nine months ending December 31, 2016) $ 1,429 2017 3,097 (1) 2018 3,167 2019 3,240 2020 3,315 Thereafter 28,176 (2) Total $ 42,424 (1) Lease payments on the FHB Sublease 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 . (2) Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the options lease term. In the table, we have shown the option lease payments for this period based on the stated rate for the month of June 2021 of $217,744 . 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 Suites TM brand for 20 years. The franchise license agreement provides that WBW Hotel Lessee LLC must comply with certain management, operational, record keeping, accounting, reporting and marketing standards and procedures. In connection with this agreement, we are also subject to the terms of a product improvement plan pursuant to which we expect to undertake certain actions to ensure that our hotel's infrastructure is maintained in compliance with the franchisor's brand standards. In addition, we must pay to Embassy Suites Franchise LLC a monthly franchise royalty fee equal to 4.0% of the hotel's gross room revenue through December 2021 and 5.0% of the hotel's gross room revenue thereafter, as well as a monthly program fee equal to 4.0% of the hotel's gross room revenue. If the franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we may be liable to the franchisor for a termination payment, which could be as high as $6.9 million based on operating performance through March 31, 2016 . Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and remains in remediation. The final stages of the remediation will include routine, long term ground monitoring by the appropriate regulatory agency over the next five to seven years. The work performed is financed through an escrow account funded by the seller upon purchase of the Del Monte Center. We believe the funds in the escrow account are sufficient for the remaining work to be performed. However, if further work is required costing more than the remaining escrow funds, we could be required to pay such overage, although we may have a contractual claim for such costs against the prior owner or our environmental remediation consultant. 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). 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. Eleven 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 34.5% of total revenues for the three months ended March 31, 2016 . 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 35.8% of total revenues for the three months ended March 31, 2016 . 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, 2016 and 2015 , no tenant accounted for more than 10% of our total rental revenue. |
OPERATING LEASES
OPERATING LEASES | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 , 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, 2016 (nine months ending December 31, 2016) $ 126,962 2017 161,159 2018 128,065 2019 92,777 2020 70,240 Thereafter 189,931 Total $ 769,134 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 AND
COMPONENTS OF RENTAL INCOME AND EXPENSE | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Minimum rents Retail $ 18,398 $ 18,211 Office 22,468 21,187 Multifamily 5,839 4,034 Mixed-use 2,655 2,523 Cost reimbursement 7,642 7,037 Percentage rent 440 360 Hotel revenue 9,418 9,008 Other 385 393 Total rental income $ 67,245 $ 62,753 Minimum rents include $0.1 million and $0.6 million for the three months ended March 31, 2016 and 2015 , 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 $0.8 million and $0.7 million for the three months ended March 31, 2016 and 2015 , respectively. The principal components of rental expenses are as follows (in thousands): Three Months Ended March 31, 2016 2015 Rental operating $ 7,382 $ 6,281 Hotel operating 5,776 5,645 Repairs and maintenance 2,566 2,251 Marketing 485 385 Rent 750 614 Hawaii excise tax 1,019 986 Management fees 475 458 Total rental expenses $ 18,453 $ 16,620 |
OTHER INCOME (EXPENSE) , NET
OTHER INCOME (EXPENSE) , NET | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Interest and investment income $ 15 $ 14 Income tax expense (87 ) (84 ) Other non-operating income 96 — Total other income (expense), net $ 24 $ (70 ) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS At ICW Plaza, we lease space to Insurance Company of the West, a California corporation ("ICW"), which is an insurance company majority owned and controlled by Ernest Rady, our Executive Chairman of the Board. Rental revenue recognized on the leases of $0.6 million for both the three months ended March 31, 2016 and 2015 is included in rental income. Additionally, we maintain a workers' compensation insurance policy with ICW, which was renewed on July 1, 2015 and the premium is approximately $0.2 million for the period July 1, 2015 through July 1, 2016. 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 $0.2 million for both the three months ended March 31, 2016 and 2015 is included in rental expenses on the statements of comprehensive income. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Total Retail Property revenue $ 24,371 $ 24,038 Property expense (6,080 ) (6,000 ) Segment profit 18,291 18,038 Total Office Property revenue 25,320 23,577 Property expense (7,702 ) (6,821 ) Segment profit 17,618 16,756 Total Multifamily Property revenue 6,294 4,310 Property expense (2,820 ) (1,484 ) Segment profit 3,474 2,826 Total Mixed-Use Property revenue 14,746 14,110 Property expense (8,484 ) (8,363 ) Segment profit 6,262 5,747 Total segments’ profit $ 45,645 $ 43,367 The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands): Three Months Ended March 31, 2016 2015 Total segments’ profit $ 45,645 $ 43,367 General and administrative (4,549 ) (5,016 ) Depreciation and amortization (17,453 ) (15,107 ) Interest expense (12,946 ) (11,795 ) Other income (expense), net 24 (70 ) Net income 10,721 11,379 Net income attributable to restricted shares (43 ) (43 ) Net income attributable to unitholders in the Operating Partnership (3,027 ) (3,309 ) Net income attributable to American Assets Trust, Inc. stockholders $ 7,651 $ 8,027 The following table shows net real estate and secured note payable balances for each of the segments (in thousands): March 31, 2016 December 31, 2015 Net Real Estate Retail $ 639,793 $ 638,893 Office 800,358 796,773 Multifamily 207,725 208,730 Mixed-Use 189,124 190,466 $ 1,837,000 $ 1,834,862 Secured Notes Payable (1) Retail $ 59,905 $ 60,065 Office 207,404 292,183 Multifamily 101,444 101,444 Mixed-Use 130,310 130,310 $ 499,063 $ 584,002 (1) Excludes unamortized fair market value adjustments and debt issuance costs of $4.2 million and $5.0 million as of March 31, 2016 and December 31, 2015 , respectively. Capital expenditures for each segment for the three months ended March 31, 2016 and 2015 were as follows (in thousands): Three Months Ended March 31, 2016 2015 Capital Expenditures (1) Retail $ 5,414 $ 935 Office 10,929 14,714 Multifamily (2) 1,344 28,948 Mixed-Use 65 371 $ 17,752 $ 44,968 (1) Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. (2) Multifamily capital expenditures include all capital expenditures incurred for the new development project Hassalo on Eighth, which consists of 657 multifamily units and approximately 47,000 square feet of retail space. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 7, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise) (anticipated to close on or before March 31, 2017 ). The forward-starting ten -year swap contract had a notional amount of $100 million , a termination date of March 31, 2027 , a fixed pay rate of 1.748% , and a receive rate equal to the three-month LIBOR, with fixed rate payments due semi-annually commencing September 29, 2017, floating payments due semi-annually commencing September 29, 2017, and floating reset dates the first day of each quarterly period. The forward-starting ten -year swap contract accrual period, March 31, 2017 to March 31, 2027, was designed to match the expected tenor of our prospective new ten -year debt offering (private placement, investment grade bonds, term loan or otherwise). There can be no assurances that the prospective debt offering described above will close on the terms described herein, or at all. The forward-starting interest rate swap contract was deemed to be a highly effective cash flow hedge and we elected to designate the forward-starting swap contract as an accounting hedge. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 137 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, 2016 , 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, 2016 , 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 Lomas Santa Fe Plaza Waikele Center Solana Beach Towne Centre Alamo Quarry Market 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 Hassalo on Eighth Mixed-Use Waikiki Beach Walk Retail and Embassy Suites™ Hotel Held for Development and/or Construction in Progress Solana Beach Corporate Centre – Land Solana Beach – Highway 101 – Land Torrey Point (formerly 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 and the Operating Partnership have been prepared in accordance with the rules applicable to Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (“GAAP”) for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and notes therein included in the Company's and Operating Partnership's annual report on Form 10-K for the year ended December 31, 2015 . 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, square footage or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. |
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, 2015 . There have been no changes to our significant accounting policies during the three months ended March 31, 2016 . |
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 May 2014, the FASB issued Update No. 2014-09, Revenue from Contracts with Customers. Update No. 2014-09 establishes that companies may recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period; early adoption is not permitted. We are in the process of evaluating the impact this pronouncement will have on our consolidated financial statements. In February 2015, the FASB issued an ASU that requires reporting entities to evaluate whether they should consolidate certain legal entities. The ASU modifies the evaluation of whether limited partnerships and similar legal entities are voting interest entities ("VIEs") and eliminates the presumption that a general partner should consolidate a limited partnership. This affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We adopted this standard during the first quarter of 2016. The guidance does not amend the existing disclosure requirements for variable interest entities (“VIEs”) or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, the Operating Partnership will be a variable interest entity of the Company. As the Operating Partnership is already consolidated in the balance sheets of the Company, the identification of this entity as a variable interest entity has no impact on the consolidated financial statements of the Company. There were no other legal entities qualifying under the scope of the revised guidance that were consolidated as a result of the adoption of this guidance. In addition, there were no other voting interest entities under prior existing guidance determined to be variable interest entities under the revised guidance. In April 2015, the FASB issued an ASU that requires reporting entities to present debt issuance cost related to a note as a direct deduction from the face amount of that note presented in the balance sheet. The ASU requires the amortization of debt issuance costs presented as interest expense. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU retrospectively to all prior periods. We adopted this standard during the first quarter of 2016, resulting in the presentation of current period and prior period debt issuance costs associated with our secured notes payable, unsecured notes payable and unsecured line of credit as a direct reduction from the carrying amount of the related debt instrument. These costs were previously included in other assets, net in our consolidated balance sheets. In February 2016, the FASB issued an ASU that establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this ASU is largely unchanged. Leases will be either classified as sales-type, finance or operating, with classification affecting the pattern of expense recognition in the income statement. The ASU also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are in the process of evaluating the impact this pronouncement will have on our consolidated financial statements. |
Fair Value Measurement, Policy | A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows: 1. Level 1 Inputs—quoted prices in active markets for identical assets or liabilities 2. Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities 3. Level 3 Inputs—unobservable inputs Except as disclosed below, the carrying amounts of our financial instruments approximate their fair value. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Supplemental cash flow information Total interest costs incurred $ 13,489 $ 14,128 Interest capitalized $ 543 $ 2,333 Interest expense $ 12,946 $ 11,795 Cash paid for interest, net of amounts capitalized $ 11,906 $ 10,459 Cash paid for income taxes $ 75 $ 50 Supplemental schedule of noncash investing and financing activities Accounts payable and accrued liabilities for construction in progress $ 171 $ 205 Accrued leasing commissions $ 251 $ (166 ) |
ACQUIRED IN-PLACE LEASES AND 26
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 In-place leases $ 52,098 $ 52,289 Accumulated amortization (39,267 ) (38,425 ) Above market leases 22,164 22,201 Accumulated amortization (19,169 ) (18,864 ) Acquired lease intangible assets, net $ 15,826 $ 17,201 Below market leases $ 68,829 $ 68,973 Accumulated accretion (31,835 ) (30,806 ) Acquired lease intangible liabilities, net $ 36,994 $ 38,167 |
FAIR VALUE OF FINANCIAL INSTR27
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Deferred compensation liability $ — $ 956 $ — $ 956 $ — $ 929 $ — $ 929 Interest rate swaps $ — $ 5,654 $ — $ 5,654 $ — $ 1,686 $ — $ 1,686 |
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, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Secured notes payable, net $ 494,883 $ 508,757 $ 579,000 $ 592,956 Unsecured term loans, net $ 198,290 $ 200,000 $ 98,383 $ 100,000 Unsecured senior guaranteed notes, net $ 347,593 $ 369,379 $ 348,230 $ 357,779 Unsecured line of credit $ 20,000 $ 20,000 $ 30,000 $ 30,000 |
DERIVATIVE AND HEDGING (Tables)
DERIVATIVE AND HEDGING (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following is a summary of the terms of our interest rate swaps as of March 31, 2016 (dollars in thousands): Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value Liability Bank of America, N.A. $ 100,000 1/9/2014 1/9/2019 $ 2,815 U.S. Bank N.A. $ 100,000 3/1/2016 3/1/2023 $ 1,365 Wells Fargo Bank, N.A. $ 50,000 5/2/2016 3/1/2023 $ 568 Wells Fargo Bank, N.A. $ 150,000 3/31/2017 3/31/2027 $ 906 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | Other assets consist of the following (in thousands): March 31, 2016 December 31, 2015 Leasing commissions, net of accumulated amortization of $24,332 and $23,565, respectively $ 18,825 $ 18,952 Acquired above market leases, net 2,995 3,337 Acquired in-place leases, net 12,831 13,864 Lease incentives, net of accumulated amortization of $3,439 and $3,341, respectively 411 509 Other intangible assets, net of accumulated amortization of $2,139 and $1,904, respectively 685 941 Prepaid expenses and other 5,558 4,336 Total other assets $ 41,305 $ 41,939 |
OTHER LIABILITIES AND DEFERRE30
OTHER LIABILITIES AND DEFERRED CREDITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities and deferred credits | Other liabilities and deferred credits consist of the following (in thousands): March 31, 2016 December 31, 2015 Acquired below market leases, net $ 36,994 $ 38,167 Prepaid rent and deferred revenue 6,998 8,203 Interest rate swap liability 5,654 1,686 Deferred rent expense and lease intangible 468 434 Deferred compensation 956 929 Deferred tax liability 174 174 Straight-line rent liability 2,274 2,319 Other liabilities 62 60 Total other liabilities and deferred credits, net $ 53,580 $ 51,972 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of total secured notes payable outstanding | The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of March 31, 2016 and December 31, 2015 (in thousands): Description of Debt Principal Balance as of Stated Interest Rate Stated Maturity Date March 31, 2016 December 31, 2015 as of March 31, 2016 Term Loan A $ 100,000 $ 100,000 Variable (1) January 9, 2019 (2) Senior Guaranteed Notes, Series A 150,000 150,000 4.04 % (3) October 31, 2021 Senior Guaranteed Notes, Series B 100,000 100,000 4.45 % February 2, 2025 Senior Guaranteed Notes, Series C 100,000 100,000 4.50 % April 1, 2025 Term Loan B 100,000 — Variable (4) March 1, 2023 550,000 450,000 Debt issuance costs, net of accumulated amortization of $3,300 and $2,999, respectively (4,117 ) (3,387 ) Total Unsecured Notes Payable $ 545,883 $ 446,613 (1) The Operating Partnership has 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. (2) The Operating Partnership has an option to extend the term loan up to two 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. (3) The Operating Partnership entered into a one-month forward-starting seven -year swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million . The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum. (4) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with the term loan at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. The following is a summary of our total secured notes payable outstanding as of March 31, 2016 and December 31, 2015 (in thousands): Principal Balance as of Stated Interest Rate Stated Maturity Date Description of Debt March 31, 2016 December 31, 2015 as of March 31, 2016 First & Main (1)(2) $ — 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) 35,800 35,920 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) 20,664 20,749 7.22 % June 1, 2019 Torrey Reserve—VCI, VCII, VCIII (3) 6,968 6,995 6.36 % June 1, 2020 Solana Beach Corporate Centre I-II (3) 11,072 11,119 5.91 % June 1, 2020 Solana Beach Towne Centre (3) 36,905 37,065 5.91 % June 1, 2020 City Center Bellevue (1) 111,000 111,000 3.98 % November 1, 2022 499,063 584,002 Unamortized fair value adjustment (3,531 ) (4,259 ) Debt issuance costs, net of accumulated amortization of $1,291 and $1,649, respectively (649 ) (743 ) Total Secured Notes Payable Outstanding $ 494,883 $ 579,000 (1) Interest only. (2) Loan repaid in full, without premium or penalty, on March 1, 2016. (3) Principal payments based on a 30 -year amortization schedule. |
EQUITY OF AMERICAN ASSETS TRU32
EQUITY OF AMERICAN ASSETS TRUST, INC. (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 : Period Amount per Share/Unit Period Covered Dividend Paid Date First Quarter 2016 $ 0.25 January 1, 2016 to March 31, 2016 March 25, 2016 |
Activity of restricted stock awards | The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2016 : Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 174,744 $27.11 Granted — $0.00 Vested (1,473 ) $23.24 Forfeited — $0.00 Nonvested at March 31, 2016 173,271 $28.20 |
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, 2016 2015 NUMERATOR Net income from operations $ 10,721 $ 11,379 Less: Net income attributable to restricted shares (43 ) (43 ) Less: Income from operations attributable to unitholders in the Operating Partnership (3,027 ) (3,309 ) Net income attributable to common stockholders—basic $ 7,651 $ 8,027 Income from operations attributable to American Assets Trust, Inc. common stockholders—basic $ 7,651 $ 8,027 Plus: Income from operations attributable to unitholders in the Operating Partnership 3,027 3,309 Net income attributable to common stockholders—diluted $ 10,678 $ 11,336 DENOMINATOR Weighted average common shares outstanding—basic 45,233,873 43,419,762 Effect of dilutive securities—conversion of Operating Partnership units 17,899,516 17,901,685 Weighted average common shares outstanding—diluted 63,133,389 61,321,447 Earnings per common share, basic $ 0.17 $ 0.18 Earnings per common share, diluted $ 0.17 $ 0.18 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 (in thousands): Year Ending December 31, 2016 (nine months ending December 31, 2016) $ 1,429 2017 3,097 (1) 2018 3,167 2019 3,240 2020 3,315 Thereafter 28,176 (2) Total $ 42,424 (1) Lease payments on the FHB Sublease 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 . (2) Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the options lease term. In the table, we have shown the option lease payments for this period based on the stated rate for the month of June 2021 of $217,744 . |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Current minimum future rentals under the leases | As of March 31, 2016 , 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, 2016 (nine months ending December 31, 2016) $ 126,962 2017 161,159 2018 128,065 2019 92,777 2020 70,240 Thereafter 189,931 Total $ 769,134 |
COMPONENTS OF RENTAL INCOME A35
COMPONENTS OF RENTAL INCOME AND EXPENSE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Minimum rents Retail $ 18,398 $ 18,211 Office 22,468 21,187 Multifamily 5,839 4,034 Mixed-use 2,655 2,523 Cost reimbursement 7,642 7,037 Percentage rent 440 360 Hotel revenue 9,418 9,008 Other 385 393 Total rental income $ 67,245 $ 62,753 |
Principal components of rental expenses | The principal components of rental expenses are as follows (in thousands): Three Months Ended March 31, 2016 2015 Rental operating $ 7,382 $ 6,281 Hotel operating 5,776 5,645 Repairs and maintenance 2,566 2,251 Marketing 485 385 Rent 750 614 Hawaii excise tax 1,019 986 Management fees 475 458 Total rental expenses $ 18,453 $ 16,620 |
OTHER INCOME (EXPENSE) , NET (T
OTHER INCOME (EXPENSE) , NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Interest and investment income $ 15 $ 14 Income tax expense (87 ) (84 ) Other non-operating income 96 — Total other income (expense), net $ 24 $ (70 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Total Retail Property revenue $ 24,371 $ 24,038 Property expense (6,080 ) (6,000 ) Segment profit 18,291 18,038 Total Office Property revenue 25,320 23,577 Property expense (7,702 ) (6,821 ) Segment profit 17,618 16,756 Total Multifamily Property revenue 6,294 4,310 Property expense (2,820 ) (1,484 ) Segment profit 3,474 2,826 Total Mixed-Use Property revenue 14,746 14,110 Property expense (8,484 ) (8,363 ) Segment profit 6,262 5,747 Total segments’ profit $ 45,645 $ 43,367 |
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, 2016 2015 Total segments’ profit $ 45,645 $ 43,367 General and administrative (4,549 ) (5,016 ) Depreciation and amortization (17,453 ) (15,107 ) Interest expense (12,946 ) (11,795 ) Other income (expense), net 24 (70 ) Net income 10,721 11,379 Net income attributable to restricted shares (43 ) (43 ) Net income attributable to unitholders in the Operating Partnership (3,027 ) (3,309 ) Net income attributable to American Assets Trust, Inc. stockholders $ 7,651 $ 8,027 |
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, 2016 December 31, 2015 Net Real Estate Retail $ 639,793 $ 638,893 Office 800,358 796,773 Multifamily 207,725 208,730 Mixed-Use 189,124 190,466 $ 1,837,000 $ 1,834,862 Secured Notes Payable (1) Retail $ 59,905 $ 60,065 Office 207,404 292,183 Multifamily 101,444 101,444 Mixed-Use 130,310 130,310 $ 499,063 $ 584,002 (1) Excludes unamortized fair market value adjustments and debt issuance costs of $4.2 million and $5.0 million as of March 31, 2016 and December 31, 2015 , respectively. |
Capital expenditures for each segment | Capital expenditures for each segment for the three months ended March 31, 2016 and 2015 were as follows (in thousands): Three Months Ended March 31, 2016 2015 Capital Expenditures (1) Retail $ 5,414 $ 935 Office 10,929 14,714 Multifamily (2) 1,344 28,948 Mixed-Use 65 371 $ 17,752 $ 44,968 (1) Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. (2) Multifamily capital expenditures include all capital expenditures incurred for the new development project Hassalo on Eighth, which consists of 657 multifamily units and approximately 47,000 square feet of retail space. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2016EmployeeSegmentRoomProperty | |
Accounting Policies [Abstract] | |
Number of employees | Employee | 137 |
Office, retail, multifamily, and mixed-use Operating properties | 23 |
Properties held for development | 5 |
Number of operating segments | Segment | 4 |
Room in mixed-use segment all-suite hotel | Room | 369 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplement Disclosures Related to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | ||
Total interest costs incurred | $ 13,489 | $ 14,128 |
Interest capitalized | 543 | 2,333 |
Interest expense | 12,946 | 11,795 |
Cash paid for interest, net of amounts capitalized | 11,906 | 10,459 |
Cash paid for income taxes | 75 | 50 |
Accounts payable and accrued liabilities for construction in progress | 171 | 205 |
Accrued leasing commissions | $ 251 | $ (166) |
ACQUIRED IN-PLACE LEASES AND 40
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES Acquired Lease Intangibles and Leasing Costs Included in Other Assets and Other Liabilities and Deferred Credits (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | $ 2,995 | $ 3,337 |
Other intangible assets, accumulated amortization | (2,139) | (1,904) |
Below market leases | 68,829 | 68,973 |
Below market leases, accumulated amortization | (31,835) | (30,806) |
Acquired lease intangible liabilities, net | 36,994 | 38,167 |
Leases, Acquired-in-Place | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | 52,098 | 52,289 |
Other intangible assets, accumulated amortization | (39,267) | (38,425) |
Above Market Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | 22,164 | 22,201 |
Other intangible assets, accumulated amortization | (19,169) | (18,864) |
Lease Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | $ 15,826 | $ 17,201 |
FAIR VALUE OF FINANCIAL INSTR41
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of interest rate swap | $ 5,654 | $ 1,686 |
Fair Value, Inputs, Level 2 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of interest rate swap | $ 5,654 | $ 1,686 |
Fair Value, Inputs, Level 2 | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assumptions, interest rate | 3.00% | |
Fair Value, Inputs, Level 2 | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assumptions, interest rate | 6.30% | |
Interest Rate Swap | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unrealized gain (loss) on derivatives | $ (4,000) | |
Deferred Credits and Other Liabilities | Interest Rate Swap | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of interest rate swap | $ 5,700 |
FAIR VALUE OF FINANCIAL INSTR42
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Liabilities Fair Value Measurement on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | $ 956 | $ 929 |
Fair value of interest rate swap | 5,654 | 1,686 |
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 | 956 | 929 |
Fair value of interest rate swap | 5,654 | 1,686 |
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 INSTR43
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Secured notes payable, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 494,883 | $ 579,000 |
Secured notes payable, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 508,757 | 592,956 |
Unsecured term loans, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 198,290 | 98,383 |
Unsecured term loans, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 200,000 | 100,000 |
Unsecured senior guaranteed notes, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 347,593 | 348,230 |
Unsecured senior guaranteed notes, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 369,379 | 357,779 |
Unsecured line of credit | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 20,000 | 30,000 |
Unsecured line of credit | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 20,000 | $ 30,000 |
DERIVATIVE AND HEDGING (Details
DERIVATIVE AND HEDGING (Details) - USD ($) | Mar. 31, 2017 | May. 02, 2016 | Mar. 29, 2016 | Mar. 23, 2016 | Mar. 01, 2016 | Jan. 29, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Fair Value Liability | $ 5,654,000 | $ 1,686,000 | ||||||
American Assets Trust, L.P. | Term Loan B | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Stated Maturity Date | Mar. 1, 2023 | |||||||
Face amount of debt | $ 100,000,000 | |||||||
Term of debt instrument | 7 years | |||||||
American Assets Trust, L.P. | Term Loan B | Unsecured term loans, net | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Stated Maturity Date | Mar. 1, 2023 | |||||||
Face amount of debt | $ 100,000,000 | |||||||
American Assets Trust, L.P. | Term Loan | Scenario, Forecast | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Face amount of debt | $ 50,000,000 | |||||||
Term of debt instrument | 7 years | |||||||
American Assets Trust, L.P. | Unsecured term loans, net | Scenario, Forecast | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Term of debt instrument | 10 years | |||||||
American Assets Trust, L.P. | Interest Rate Swap | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative contract term | 10 years | |||||||
American Assets Trust, L.P. | Interest Rate Swap | Term Loan B | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 3.15% | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional Amount | $ 150,000,000 | |||||||
Derivative fixed interest rate (in percent) | 1.88% | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap, 1/9/2019 | Bank of America, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Maturity Date | Jan. 9, 2019 | |||||||
Effective Date | Jan. 9, 2014 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap, 3/1/2023 | U.S. Bank N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Maturity Date | Mar. 1, 2023 | |||||||
Effective Date | Mar. 1, 2016 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap, 3/1/2023 | Wells Fargo Bank, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Maturity Date | Mar. 1, 2023 | |||||||
Effective Date | May 2, 2016 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap, 3/31/2027 | Wells Fargo Bank, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Maturity Date | Mar. 31, 2027 | |||||||
Effective Date | Mar. 31, 2017 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative contract term | 7 years | 7 years | ||||||
Notional Amount | $ 50,000,000 | $ 100,000,000 | ||||||
Maturity Date | Mar. 31, 2027 | Mar. 1, 2023 | Mar. 1, 2023 | |||||
Derivative fixed interest rate (in percent) | 1.441% | 1.4485% | ||||||
Effective Date | Mar. 31, 2017 | May 2, 2016 | Mar. 1, 2016 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 1/9/2019 | Bank of America, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional Amount | $ 100,000,000 | |||||||
Fair Value Liability | 2,815,000 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 3/1/2023 | U.S. Bank N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional Amount | 100,000,000 | |||||||
Fair Value Liability | 1,365,000 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 3/1/2023 | Wells Fargo Bank, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional Amount | 50,000,000 | |||||||
Fair Value Liability | 568,000 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 3/31/2027 | Wells Fargo Bank, N.A. | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional Amount | 150,000,000 | |||||||
Fair Value Liability | $ 906,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Leasing commissions, net of accumulated amortization of $24,332 and $23,565, respectively | $ 18,825 | $ 18,952 |
Acquired above market leases, net | 2,995 | 3,337 |
Acquired in-place leases, net | 12,831 | 13,864 |
Lease incentives, net of accumulated amortization of $3,439 and $3,341, respectively | 411 | 509 |
Other intangible assets, net of accumulated amortization of $2,139 and $1,904, respectively | 685 | 941 |
Prepaid expenses and other | 5,558 | 4,336 |
Total other assets | 41,305 | 41,939 |
Leasing commissions, accumulative amortization | 24,332 | 23,565 |
Lease incentives, accumulated amortization | 3,439 | 3,341 |
Other intangible assets, accumulated amortization | $ 2,139 | $ 1,904 |
OTHER LIABILITIES AND DEFERRE46
OTHER LIABILITIES AND DEFERRED CREDITS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Acquired below market leases, net | $ 36,994 | $ 38,167 |
Prepaid rent and deferred revenue | 6,998 | 8,203 |
Interest rate swap liability | 5,654 | 1,686 |
Deferred rent expense and lease intangible | 468 | 434 |
Deferred compensation | 956 | 929 |
Deferred tax liability | 174 | 174 |
Straight-line rent liability | 2,274 | 2,319 |
Other liabilities | 62 | 60 |
Total other liabilities and deferred credits, net | $ 53,580 | $ 51,972 |
DEBT - Summary of Total Secured
DEBT - Summary of Total Secured Notes Payable Outstanding (Details) - American Assets Trust, L.P. - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | ||||
First And Main | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1],[2] | 3.97% | |||
Stated Maturity Date | [1],[2] | Jul. 1, 2016 | |||
Imperial Beach Gardens | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 6.16% | |||
Stated Maturity Date | [1] | Sep. 1, 2016 | |||
Mariners Point | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 6.09% | |||
Stated Maturity Date | [1] | Sep. 1, 2016 | |||
South Bay Marketplace | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 5.48% | |||
Stated Maturity Date | [1] | Feb. 10, 2017 | |||
Waikiki Beach Walk - Retail | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 5.39% | |||
Stated Maturity Date | [1] | Jul. 1, 2017 | |||
Solana Beach Corporate Centre Three To Four | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [3] | 6.39% | |||
Stated Maturity Date | [3] | Aug. 1, 2017 | |||
Loma Palisades | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 6.09% | |||
Stated Maturity Date | [1] | Jul. 1, 2018 | |||
One Beach Street | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 3.94% | |||
Stated Maturity Date | [1] | Apr. 1, 2019 | |||
Torrey Reserve North Court | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [3] | 7.22% | |||
Stated Maturity Date | [3] | Jun. 1, 2019 | |||
Torrey Reserve | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [3] | 6.36% | |||
Stated Maturity Date | [3] | Jun. 1, 2020 | |||
Solana Beach Corporate Centre One To Two | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [3] | 5.91% | |||
Stated Maturity Date | [3] | Jun. 1, 2020 | |||
Solana Beach Towne Centre | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [3] | 5.91% | |||
Stated Maturity Date | [3] | Jun. 1, 2020 | |||
City Center Bellevue | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | [1] | 3.98% | |||
Stated Maturity Date | [1] | Nov. 1, 2022 | |||
Secured notes payable, net | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | $ 499,063 | $ 584,002 | |||
Unamortized fair value adjustment | (3,531) | (4,259) | |||
Debt issuance costs, net | (649) | (743) | |||
Total Debt Outstanding | $ 494,883 | 579,000 | |||
Period of amortization schedule (in years) | 30 years | ||||
Secured notes payable, net | First And Main | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | $ 0 | [3] | 84,500 | [2] |
Secured notes payable, net | Imperial Beach Gardens | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 20,000 | 20,000 | ||
Secured notes payable, net | Mariners Point | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 7,700 | 7,700 | ||
Secured notes payable, net | South Bay Marketplace | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 23,000 | 23,000 | ||
Secured notes payable, net | Waikiki Beach Walk - Retail | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 130,310 | 130,310 | ||
Secured notes payable, net | Solana Beach Corporate Centre Three To Four | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [3] | 35,800 | 35,920 | ||
Secured notes payable, net | Loma Palisades | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 73,744 | 73,744 | ||
Secured notes payable, net | One Beach Street | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | 21,900 | 21,900 | ||
Secured notes payable, net | Torrey Reserve North Court | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [3] | 20,664 | 20,749 | ||
Secured notes payable, net | Torrey Reserve | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [3] | 6,968 | 6,995 | ||
Secured notes payable, net | Solana Beach Corporate Centre One To Two | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [3] | 11,072 | 11,119 | ||
Secured notes payable, net | Solana Beach Towne Centre | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [3] | 36,905 | 37,065 | ||
Secured notes payable, net | City Center Bellevue | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Principal Balance | [1] | $ 111,000 | $ 111,000 | ||
[1] | Interest only. | ||||
[2] | Loan repaid in full, without premium or penalty, on March 1, 2016. | ||||
[3] | Principal payments based on a 30-year amortization schedule. |
DEBT - Summary of Total Unsecur
DEBT - Summary of Total Unsecured Notes Payable Outstanding (Details) - American Assets Trust, L.P. $ in Thousands | Mar. 29, 2016 | Mar. 01, 2016 | Sep. 19, 2014USD ($) | Aug. 19, 2014 | Mar. 31, 2016USD ($)Extension_Option | Dec. 31, 2015USD ($) | |
Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Derivative contract term | 10 years | ||||||
Forward Contracts | |||||||
Debt Instrument [Line Items] | |||||||
Derivative contract term | 7 years | ||||||
Gain on derivative settlement | $ 1,600 | ||||||
Effective rate of debt instrument (in percent) | 3.88% | ||||||
Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Principal Balance | $ 550,000 | $ 450,000 | |||||
Debt issuance costs, net | (4,117) | (3,387) | |||||
Total Debt Outstanding | $ 545,883 | 446,613 | |||||
Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Debt extension options | Extension_Option | 2 | ||||||
Term Loan A | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Derivative fixed interest rate (in percent) | 3.08% | ||||||
Term Loan A | Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Stated Maturity Date | [1] | Jan. 9, 2019 | |||||
Long-term Debt, Principal Balance | $ 100,000 | 100,000 | |||||
Senior Guaranteed Notes, Series A | Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Stated Interest Rate | [2] | 4.04% | |||||
Stated Maturity Date | Oct. 31, 2021 | ||||||
Long-term Debt, Principal Balance | $ 150,000 | 150,000 | |||||
Senior Guaranteed Notes, Series B | Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Stated Interest Rate | 4.45% | ||||||
Stated Maturity Date | Feb. 2, 2025 | ||||||
Long-term Debt, Principal Balance | $ 100,000 | 100,000 | |||||
Senior Guaranteed Notes, Series C | Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Stated Interest Rate | 4.50% | ||||||
Stated Maturity Date | Apr. 1, 2025 | ||||||
Long-term Debt, Principal Balance | $ 100,000 | 100,000 | |||||
Term Loan B | |||||||
Debt Instrument [Line Items] | |||||||
Stated Maturity Date | Mar. 1, 2023 | ||||||
Term Loan B | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Derivative fixed interest rate (in percent) | 3.15% | ||||||
Term Loan B | Unsecured term loans, net | |||||||
Debt Instrument [Line Items] | |||||||
Stated Maturity Date | Mar. 1, 2023 | ||||||
Long-term Debt, Principal Balance | $ 100,000 | $ 0 | |||||
[1] | The Operating Partnership has an option to extend the term loan up to two 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. | ||||||
[2] | The Operating Partnership entered into a one-month forward-starting seven-year swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million. The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum. |
DEBT (Details)
DEBT (Details) | Mar. 01, 2016USD ($) | Jan. 09, 2014USD ($)Extension_Option | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Unsecured line of credit | $ 20,000,000 | $ 30,000,000 | ||
Unsecured line of credit | Amended and Restated Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on federal funds rate | 0.50% | |||
Basis spread on Eurodollar rate | 1.00% | |||
Unsecured term loans, net | Term Loan B | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on federal funds rate | 0.50% | |||
Basis spread on Eurodollar rate | 1.00% | |||
Unsecured term loans, net | Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
American Assets Trust, L.P. | ||||
Debt Instrument [Line Items] | ||||
Unsecured line of credit | $ 20,000,000 | 30,000,000 | ||
American Assets Trust, L.P. | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 7 years | |||
Face amount of debt | $ 100,000,000 | |||
Stated Maturity Date | Mar. 1, 2023 | |||
American Assets Trust, L.P. | Term Loan B | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.70% | |||
American Assets Trust, L.P. | Term Loan B | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.35% | |||
American Assets Trust, L.P. | Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 350,000,000 | |||
Additional borrowing capacity | $ 250,000,000 | |||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Minimum | Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.35% | |||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Maximum | Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.95% | |||
American Assets Trust, L.P. | Interest Rate Swap | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Derivative fixed interest rate (in percent) | 3.15% | |||
American Assets Trust, L.P. | Secured notes payable, net | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Principal Balance | $ 499,063,000 | 584,002,000 | ||
Debt issuance costs, accumulated amortization | 1,291,000 | 1,649,000 | ||
American Assets Trust, L.P. | Unsecured line of credit | Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Unsecured line of credit | $ 20,000,000 | |||
Debt Instrument, Interest Rate During Period | 1.75% | |||
American Assets Trust, L.P. | Unsecured line of credit | Amended and Restated Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | base rate | |||
Prime rate | prime rate | |||
Federal funds rate | federal funds rate | |||
Eurodollar rate | Eurodollar | |||
American Assets Trust, L.P. | Unsecured 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 extension options | Extension_Option | 2 | |||
Extension term | 6 months | |||
American Assets Trust, L.P. | Unsecured line of credit | Amended and Restated Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
American Assets Trust, L.P. | Unsecured line of credit | Amended and Restated Credit Facility | Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.35% | |||
American Assets Trust, L.P. | Unsecured line of credit | Amended and Restated Credit Facility | Maximum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.95% | |||
American Assets Trust, L.P. | Unsecured term loans, net | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Principal Balance | $ 550,000,000 | 450,000,000 | ||
Debt issuance costs, accumulated amortization | 3,300,000 | 2,999,000 | ||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated Maturity Date | Mar. 1, 2023 | |||
Long-term Debt, Principal Balance | $ 100,000,000 | $ 0 | ||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Prime rate | prime rate | |||
Federal funds rate | federal funds rate | |||
Eurodollar rate | Eurodollar | |||
0% rate | 0 | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.70% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan B | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.35% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 100,000,000 | |||
Debt extension options | Extension_Option | 3 | |||
Extension term | 12 months | |||
American Assets Trust, L.P. | Unsecured term loans, net | Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.30% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Amended and Restated Credit Facility | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.30% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Amended and Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.90% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Amended and Restated Credit Facility | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.90% |
PARTNERS CAPITAL OF AMERICAN 50
PARTNERS CAPITAL OF AMERICAN ASSETS TRUST, L.P. (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Partnership Units | ||
Capital Unit [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 173,594 | 246,672 |
American Assets Trust, L.P. | ||
Capital Unit [Line Items] | ||
Noncontrolling common units | 17,899,516 | |
Percentage of ownership interests classified as noncontrolling | 28.30% | |
American Assets Trust, L.P. | Operating Partnership Units | ||
Capital Unit [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 173,594 | 246,672 |
EQUITY OF AMERICAN ASSETS TRU51
EQUITY OF AMERICAN ASSETS TRUST, INC. (Details) | May. 27, 2015USD ($)Agent | Mar. 31, 2016USD ($)shares | Mar. 31, 2015USD ($)shares |
Equity [Line Items] | |||
Noncash compensation expense | $ 600,000 | $ 900,000 | |
Unrecognized compensation expense | $ 2,800,000 | ||
Weighted average unvested shares outstanding | shares | 173,594 | 246,672 | |
At The Market Equity Program | |||
Equity [Line Items] | |||
Number of sales agents | Agent | 5 | ||
Aggregate offering price of common share | $ 250,000,000 | ||
Remaining capacity to issue | $ 216,600,000 |
EQUITY OF AMERICAN ASSETS TRU52
EQUITY OF AMERICAN ASSETS TRUST, INC. - Dividends Declare and Paid on Shares on Common Stock and Noncontrolling Common Units (Details) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Equity [Abstract] | |
Dividends period | First Quarter 2016 |
Amount per Share/Unit (in USD per unit) | $ 0.25 |
Date dividend to be paid | Mar. 25, 2016 |
EQUITY OF AMERICAN ASSETS TRU53
EQUITY OF AMERICAN ASSETS TRUST, INC. - Summary of Activity of Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, Beginning, Shares | shares | 174,744 |
Granted, Shares | shares | 0 |
Vested, Shares | shares | (1,473) |
Forfeited, Shares | shares | 0 |
Nonvested, End of year, shares | shares | 173,271 |
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 (in USD per share) | $ / shares | $ 27.11 |
Granted, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 0 |
Vested, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 23.24 |
Forfeited, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 0 |
Nonvested, End of Year, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | $ 28.20 |
EQUITY OF AMERICAN ASSETS TRU54
EQUITY OF AMERICAN ASSETS TRUST, INC. - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Net income from operations | $ 10,721 | $ 11,379 |
Less: Net income attributable to restricted shares | (43) | (43) |
Less: Income from continuing operations attributable to unitholders in the Operating Partnership | (3,027) | (3,309) |
Net income attributable to common stockholders—basic | 7,651 | 8,027 |
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | 7,651 | 8,027 |
Net income attributable to common stockholders-diluted | $ 10,678 | $ 11,336 |
Weighted average common shares outstanding-basic | 45,233,873 | 43,419,762 |
Effect of dilutive securities-conversion of Operating Partnership units | 17,899,516 | 17,901,685 |
Weighted average common shares outstanding - diluted | 63,133,389 | 61,321,447 |
Earnings per common share, basic (in USD per share) | $ 0.17 | $ 0.18 |
Earnings per common share, diluted (in USD per share) | $ 0.17 | $ 0.18 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax liability | $ 174 | $ 174 | |
Income tax expense (benefit) | $ 87 | $ 84 |
COMMITMENTS AND CONTINGENCIES56
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)PropertymoOptionPlan | Mar. 31, 2015 | |
Commitment And Contingencies [Line Items] | ||
Termination payment | $ | $ 6.9 | |
Percentage, partner's common units | 50.00% | |
Number of consolidated properties located in Southern California | Property | 11 | |
Maximum percentage of total revenue provided by any single tenant | 10.00% | 10.00% |
Total Revenues | Retail | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by retail tenants | 34.50% | |
Total Revenues | Office | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by retail tenants | 35.80% | |
The Land Mark at One Market | ||
Commitment And Contingencies [Line Items] | ||
Number of lease extension options | OptionPlan | 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 | Maximum | ||
Commitment And Contingencies [Line Items] | ||
Property management fee, percent (in percent) | 3.00% | |
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 | |
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% | |
Del Monte Center | Maximum | ||
Commitment And Contingencies [Line Items] | ||
Years, environmental remediation length | 7 years | |
Del Monte Center | Minimum | ||
Commitment And Contingencies [Line Items] | ||
Years, environmental remediation length | 5 years |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Current Minimum Annual Payments under Leases (Details) - USD ($) | Jun. 30, 2021 | Feb. 28, 2017 | Mar. 31, 2016 | |
Operating Leased Assets [Line Items] | ||||
2016 (nine months ending December 31, 2016) | $ 1,429,000 | |||
2,017 | [1] | 3,097,000 | ||
2,018 | 3,167,000 | |||
2,019 | 3,240,000 | |||
2,020 | 3,315,000 | |||
Thereafter | [2] | 28,176,000 | ||
Total | $ 42,424,000 | |||
Scenario, Forecast | Waikiki Beach Walk | ||||
Operating Leased Assets [Line Items] | ||||
Stated monthly lease rate | $ 61,690 | |||
Scenario, Forecast | The Land Mark at One Market | ||||
Operating Leased Assets [Line Items] | ||||
Stated monthly lease rate | $ 217,744 | |||
[1] | Lease payments on the FHB Sublease 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. | |||
[2] | Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the options lease term. In the table, we have shown the option lease payments for this period based on the stated rate for the month of June 2021 of $217,744. |
OPERATING LEASES (Details)
OPERATING LEASES (Details) | 3 Months Ended |
Mar. 31, 2016mo | |
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 Futu
OPERATING LEASES - Minimum Future Rentals from Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
2016 (nine months ending December 31, 2016) | $ 126,962 |
2,017 | 161,159 |
2,018 | 128,065 |
2,019 | 92,777 |
2,020 | 70,240 |
Thereafter | 189,931 |
Total | $ 769,134 |
COMPONENTS OF RENTAL INCOME A60
COMPONENTS OF RENTAL INCOME AND EXPENSE - Component of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Rental Income [Line Items] | ||
Cost reimbursement | $ 7,642 | $ 7,037 |
Percentage rent | 440 | 360 |
Hotel revenue | 9,418 | 9,008 |
Other | 385 | 393 |
Total rental income | 67,245 | 62,753 |
Total Retail | ||
Rental Income [Line Items] | ||
Minimum rents | 18,398 | 18,211 |
Total Office | ||
Rental Income [Line Items] | ||
Minimum rents | 22,468 | 21,187 |
Total Multifamily | ||
Rental Income [Line Items] | ||
Minimum rents | 5,839 | 4,034 |
Total Mixed-Use | ||
Rental Income [Line Items] | ||
Minimum rents | $ 2,655 | $ 2,523 |
COMPONENTS OF RENTAL INCOME A61
COMPONENTS OF RENTAL INCOME AND EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ||
Recognition of straight-line rents | $ 0.1 | $ 0.6 |
Recognition of amortization of above and below market leases | $ 0.8 | $ 0.7 |
COMPONENTS OF RENTAL INCOME A62
COMPONENTS OF RENTAL INCOME AND EXPENSE - Components of Rental Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ||
Rental operating | $ 7,382 | $ 6,281 |
Hotel operating | 5,776 | 5,645 |
Repairs and maintenance | 2,566 | 2,251 |
Marketing | 485 | 385 |
Rent | 750 | 614 |
Hawaii excise tax | 1,019 | 986 |
Management fees | 475 | 458 |
Total rental expenses | $ 18,453 | $ 16,620 |
OTHER INCOME (EXPENSE) , NET Co
OTHER INCOME (EXPENSE) , NET Components of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Interest and investment income | $ 15 | $ 14 |
Income tax expense | (87) | (84) |
Other non-operating income | 96 | 0 |
Total other income (expense), net | $ 24 | $ (70) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jul. 01, 2015 | |
Related Party Transaction [Line Items] | |||
Total rental income | $ 67,245 | $ 62,753 | |
Investment in WBW CHP LLC (in percent) | 47.70% | ||
WBW CHP LLC | |||
Related Party Transaction [Line Items] | |||
Amount Recovered For Reimbursements Of Operating Expense For Related Party | $ 200 | 200 | |
ICW Inc | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Total rental income | $ 600 | $ 600 | |
Prepaid Insurance | $ 200 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 3 Months Ended |
Mar. 31, 2016SegmentRoom | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 4 |
Room in mixed-use segment all-suite hotel | Room | 369 |
SEGMENT REPORTING - Operating A
SEGMENT REPORTING - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
OPERATING INCOME | $ 23,643 | $ 23,244 |
Total Segments' profit | 45,645 | 43,367 |
Total Retail | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 24,371 | 24,038 |
Property expense | (6,080) | (6,000) |
OPERATING INCOME | 18,291 | 18,038 |
Total Office | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 25,320 | 23,577 |
Property expense | (7,702) | (6,821) |
OPERATING INCOME | 17,618 | 16,756 |
Total Multifamily | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 6,294 | 4,310 |
Property expense | (2,820) | (1,484) |
OPERATING INCOME | 3,474 | 2,826 |
Total Mixed-Use | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 14,746 | 14,110 |
Property expense | (8,484) | (8,363) |
OPERATING INCOME | $ 6,262 | $ 5,747 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Abstract] | ||
Total Segments' profit | $ 45,645 | $ 43,367 |
General and administrative | (4,549) | (5,016) |
Depreciation and amortization | (17,453) | (15,107) |
Interest expense | 12,946 | 11,795 |
Other income (expense), net | 24 | (70) |
NET INCOME | 10,721 | 11,379 |
Net income attributable to restricted shares | (43) | (43) |
Net income attributable to unitholders in the Operating Partnership | 3,027 | 3,309 |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 7,651 | $ 8,027 |
SEGMENT REPORTING - Net Real Es
SEGMENT REPORTING - Net Real Estate and Secured Note Payable Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net Real Estate | $ 1,837,000 | $ 1,834,862 | |
Secured Notes Payable | [1] | 499,063 | 584,002 |
American Assets Trust, L.P. | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 1,837,000 | 1,834,862 | |
Secured notes payable, net | American Assets Trust, L.P. | |||
Segment Reporting Information [Line Items] | |||
Unamortized fair value adjustment and debt issuance costs | 4,180 | 5,002 | |
Total Retail | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 639,793 | 638,893 | |
Secured Notes Payable | [1] | 59,905 | 60,065 |
Total Office | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 800,358 | 796,773 | |
Secured Notes Payable | [1] | 207,404 | 292,183 |
Total Multifamily | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 207,725 | 208,730 | |
Secured Notes Payable | [1] | 101,444 | 101,444 |
Total Mixed-Use | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 189,124 | 190,466 | |
Secured Notes Payable | [1] | $ 130,310 | $ 130,310 |
[1] | Excludes unamortized fair market value adjustments and debt issuance costs of $4.2 million and $5.0 million as of March 31, 2016 and December 31, 2015, respectively. |
SEGMENT REPORTING - Capital Exp
SEGMENT REPORTING - Capital Expenditures (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)ft²unit | Mar. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1] | $ 17,752 | $ 44,968 |
Hassalo on Eighth - Residential [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of units in real estate property | unit | 657 | ||
Hassalo on Eighth - Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net rentable area | ft² | 47 | ||
Retail | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1] | $ 5,414 | 935 |
Office | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1] | 10,929 | 14,714 |
Multifamily | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1],[2] | 1,344 | 28,948 |
Mixed-Use | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1] | $ 65 | $ 371 |
[1] | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. | ||
[2] | Multifamily capital expenditures include all capital expenditures incurred for the new development project Hassalo on Eighth, which consists of 657 multifamily units and approximately 47,000 square feet of retail space. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Mar. 31, 2017 | Apr. 07, 2016 | Mar. 29, 2016 | Mar. 23, 2016 | Jan. 29, 2016 |
American Assets Trust, L.P. | Scenario, Forecast | Unsecured term loans, net | |||||
Subsequent Event [Line Items] | |||||
Term of debt instrument | 10 years | ||||
Interest Rate Swap | American Assets Trust, L.P. | |||||
Subsequent Event [Line Items] | |||||
Derivative contract term | 10 years | ||||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | |||||
Subsequent Event [Line Items] | |||||
Notional Amount | $ 150,000,000 | ||||
Derivative fixed interest rate (in percent) | 1.88% | ||||
Designated as Hedging Instrument | Interest Rate Swap | American Assets Trust, L.P. | Cash Flow Hedging | |||||
Subsequent Event [Line Items] | |||||
Effective Date | Mar. 31, 2017 | May 2, 2016 | Mar. 1, 2016 | ||
Derivative contract term | 7 years | 7 years | |||
Notional Amount | $ 50,000,000 | $ 100,000,000 | |||
Maturity Date | Mar. 31, 2027 | Mar. 1, 2023 | Mar. 1, 2023 | ||
Derivative fixed interest rate (in percent) | 1.441% | 1.4485% | |||
Subsequent Event | American Assets Trust, L.P. | Scenario, Forecast | Unsecured term loans, net | |||||
Subsequent Event [Line Items] | |||||
Derivative contract term | 10 years | ||||
Term of debt instrument | 10 years | ||||
Subsequent Event | Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | |||||
Subsequent Event [Line Items] | |||||
Notional Amount | $ 100,000,000 | ||||
Derivative fixed interest rate (in percent) | 1.748% | ||||
Subsequent Event | Designated as Hedging Instrument | Interest Rate Swap | American Assets Trust, L.P. | Cash Flow Hedging | |||||
Subsequent Event [Line Items] | |||||
Effective Date | Mar. 31, 2017 | ||||
Maturity Date | Mar. 31, 2027 |