Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 47,222,121 | |
American Assets Trust, L.P. | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Operating real estate | $ 2,543,142 | $ 2,536,474 |
Construction in progress | 76,502 | 68,272 |
Held for development | 9,392 | 9,392 |
Total Real estate, at cost | 2,629,036 | 2,614,138 |
Accumulated depreciation | (595,042) | (537,431) |
Net real estate | 2,033,994 | 2,076,707 |
Cash and cash equivalents | 51,326 | 82,610 |
Restricted cash | 9,385 | 9,344 |
Accounts receivable, net | 7,118 | 9,869 |
Deferred rent receivables, net | 39,283 | 38,973 |
Other assets, net | 44,934 | 42,361 |
TOTAL ASSETS | 2,186,040 | 2,259,864 |
LIABILITIES AND EQUITY | ||
Secured notes payable, net | 205,155 | 279,550 |
Unsecured notes payable, net | 1,045,406 | 1,045,470 |
Unsecured line of credit, net | 20,133 | 0 |
Accounts payable and accrued expenses | 39,666 | 38,069 |
Security deposits payable | 8,712 | 6,570 |
Other liabilities and deferred credits, net | 49,333 | 46,061 |
Total liabilities | 1,368,405 | 1,415,720 |
Commitments and contingencies (Note 11) | ||
American Assets Trust, Inc. stockholders’ equity | ||
Common stock, $0.01 par value, 490,000,000 shares authorized, 47,223,809 and 47,204,588 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 473 | 473 |
Additional paid-in capital | 919,598 | 919,066 |
Accumulated dividends in excess of net income | (120,008) | (97,280) |
Accumulated other comprehensive income | 13,734 | 11,451 |
Total American Assets Trust, Inc. stockholders’ equity | 813,797 | 833,710 |
Noncontrolling interests | 3,838 | 10,434 |
Total equity | 817,635 | 844,144 |
CAPITAL: | ||
TOTAL LIABILITIES AND EQUITY | 2,186,040 | 2,259,864 |
American Assets Trust, L.P. | ||
ASSETS | ||
Operating real estate | 2,543,142 | 2,536,474 |
Construction in progress | 76,502 | 68,272 |
Held for development | 9,392 | 9,392 |
Total Real estate, at cost | 2,629,036 | 2,614,138 |
Accumulated depreciation | (595,042) | (537,431) |
Net real estate | 2,033,994 | 2,076,707 |
Cash and cash equivalents | 51,326 | 82,610 |
Restricted cash | 9,385 | 9,344 |
Accounts receivable, net | 7,118 | 9,869 |
Deferred rent receivables, net | 39,283 | 38,973 |
Other assets, net | 44,934 | 42,361 |
TOTAL ASSETS | 2,186,040 | 2,259,864 |
LIABILITIES AND EQUITY | ||
Secured notes payable, net | 205,155 | 279,550 |
Unsecured notes payable, net | 1,045,406 | 1,045,470 |
Unsecured line of credit, net | 20,133 | 0 |
Accounts payable and accrued expenses | 39,666 | 38,069 |
Security deposits payable | 8,712 | 6,570 |
Other liabilities and deferred credits, net | 49,333 | 46,061 |
Total liabilities | 1,368,405 | 1,415,720 |
Commitments and contingencies (Note 11) | ||
American Assets Trust, Inc. stockholders’ equity | ||
Accumulated other comprehensive income | 18,847 | 15,750 |
CAPITAL: | ||
Limited partners' capital, 17,177,608 and 17,194,980 units issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | (1,275) | 6,135 |
General partner's capital, 47,223,809 and 47,204,588 units issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 800,063 | 822,259 |
Total capital | 817,635 | 844,144 |
TOTAL LIABILITIES AND EQUITY | $ 2,186,040 | $ 2,259,864 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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) | 47,223,809 | 47,204,588 |
Common stock, shares issued (in shares) | 47,223,809 | 47,204,588 |
American Assets Trust, L.P. | ||
Limited partners' capital, units issued (in shares) | 17,177,608 | 17,194,980 |
Limited partners' capital, units outstanding (in shares) | 17,177,608 | 17,194,980 |
General partners' capital, units issued (in shares) | 47,223,809 | 47,204,588 |
General partners' capital, units outstanding (in shares) | 47,223,809 | 47,204,588 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
REVENUE: | |||||
Rental income | $ 76,892 | $ 72,925 | $ 153,093 | $ 142,965 | |
Other property income | 8,131 | 4,181 | 12,662 | 7,933 | |
Total revenue | 85,023 | 77,106 | 165,755 | 150,898 | |
EXPENSES: | |||||
Rental expenses | 20,882 | 19,841 | 41,302 | 39,700 | |
Real estate taxes | 8,628 | 7,904 | 17,174 | 15,440 | |
General and administrative | 5,396 | 5,131 | 10,963 | 10,213 | |
Depreciation and amortization | 32,868 | 24,182 | 66,147 | 42,168 | |
Total operating expenses | 67,774 | 57,058 | 135,586 | 107,521 | |
OPERATING INCOME | 17,249 | 20,048 | 30,169 | 43,377 | |
Interest expense | (12,688) | (12,652) | (26,508) | (25,983) | |
Other (expense) income, net | (148) | 192 | 61 | 502 | |
NET INCOME | 4,413 | 7,588 | 3,722 | 17,896 | |
Net income attributable to restricted shares | (216) | (61) | (144) | (121) | |
Net income attributable to unitholders in the Operating Partnership | (1,125) | (2,008) | (959) | (4,869) | |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 3,072 | $ 5,519 | $ 2,619 | $ 12,906 | |
EARNINGS PER COMMON SHARE | |||||
Earnings per common share, basic (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 | |
Weighted average shares of common stock outstanding-basic (in shares) | 46,939,449 | 46,871,377 | 46,937,645 | 46,524,510 | |
EARNINGS PER COMMON SHARE, DILUTED | |||||
Earnings per common share, diluted (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 | |
Weighted average shares of common stock outstanding-diluted (in shares) | 64,132,520 | 64,089,081 | 64,131,665 | 64,075,919 | |
Dividends declared per common share (in USD per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 | |
COMPREHENSIVE INCOME | |||||
Other comprehensive income (loss) - unrealized income (loss) on swap derivative during the period | $ 875 | $ (518) | $ 3,736 | $ (1,514) | |
Reclassification of amortization of forward-starting swap included in interest expense | (319) | (330) | (639) | (475) | |
Comprehensive income | 4,969 | 6,740 | 6,819 | 15,907 | |
Comprehensive income attributable to non-controlling interest | 1,271 | 1,700 | 1,773 | 4,184 | |
Comprehensive income attributable to American Assets Trust, Inc. | 3,698 | 5,040 | 5,046 | 11,723 | |
American Assets Trust, L.P. | |||||
REVENUE: | |||||
Rental income | 76,892 | 72,925 | 153,093 | 142,965 | |
Other property income | 8,131 | 4,181 | 12,662 | 7,933 | |
Total revenue | 85,023 | 77,106 | 165,755 | 150,898 | |
EXPENSES: | |||||
Rental expenses | 20,882 | 19,841 | 41,302 | 39,700 | |
Real estate taxes | 8,628 | 7,904 | 17,174 | 15,440 | |
General and administrative | 5,396 | 5,131 | 10,963 | 10,213 | |
Depreciation and amortization | 32,868 | 24,182 | 66,147 | 42,168 | |
Total operating expenses | 67,774 | 57,058 | 135,586 | 107,521 | |
OPERATING INCOME | 17,249 | 20,048 | 30,169 | 43,377 | |
Interest expense | (12,688) | (12,652) | (26,508) | (25,983) | |
Other (expense) income, net | (148) | 192 | 61 | 502 | |
NET INCOME | 4,413 | 7,588 | 3,722 | 17,896 | |
Net income attributable to restricted shares | (216) | (61) | (144) | (121) | |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 4,197 | $ 7,527 | $ 3,578 | $ 17,775 | |
EARNINGS PER COMMON SHARE | |||||
Earnings per common share, basic (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 | |
Weighted average shares of common stock outstanding-basic (in shares) | 64,132,520 | 64,089,081 | 64,131,665 | 64,075,919 | |
EARNINGS PER COMMON SHARE, DILUTED | |||||
Earnings per common share, diluted (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 | |
Weighted average shares of common stock outstanding-diluted (in shares) | 64,132,520 | 64,089,081 | 64,131,665 | 64,075,919 | |
Distributions per unit (in USD per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 | |
COMPREHENSIVE INCOME | |||||
Other comprehensive income (loss) - unrealized income (loss) on swap derivative during the period | $ 875 | $ (518) | $ 3,736 | $ (1,514) | |
Reclassification of amortization of forward-starting swap included in interest expense | (319) | (330) | (639) | (475) | |
Comprehensive income | 4,969 | 6,740 | 6,819 | 15,907 | |
Limited Partner | American Assets Trust, L.P. | |||||
EXPENSES: | |||||
NET INCOME | [1] | 959 | |||
COMPREHENSIVE INCOME | |||||
Comprehensive income attributable to American Assets Trust, Inc. | (1,271) | (1,700) | (1,773) | (4,184) | |
General Partner | American Assets Trust, L.P. | |||||
EXPENSES: | |||||
NET INCOME | [2] | 2,763 | |||
COMPREHENSIVE INCOME | |||||
Comprehensive income attributable to American Assets Trust, Inc. | $ 3,698 | $ 5,040 | $ 5,046 | $ 11,723 | |
[1] | Consists of limited partnership interests held by third parties. | ||||
[2] | Consists of general partnership interests held by American Assets Trust, Inc. |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 6 months ended Jun. 30, 2018 - 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 | Common Shares | Common SharesAmerican Assets Trust, L.P. | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests - Unitholders in the Operating Partnership | Swap | SwapAmerican Assets Trust, L.P. | SwapAmerican Assets Trust, L.P.Accumulated Other Comprehensive Income (Loss) | SwapAccumulated Other Comprehensive Income (Loss) | SwapNoncontrolling Interests - Unitholders in the Operating Partnership | ||
Beginning Balance (in shares) at Dec. 31, 2017 | 47,204,588 | ||||||||||||||||||
Beginning Balance at Dec. 31, 2017 | $ 844,144 | $ 473 | $ 919,066 | $ (97,280) | $ 11,451 | $ 10,434 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 3,722 | $ 3,722 | $ 959 | $ 2,763 | [2] | 2,763 | 959 | ||||||||||||
Issuance of restricted stock (in shares) | 5,320 | ||||||||||||||||||
Issuance of restricted shares | $ 0 | 0 | |||||||||||||||||
Forfeiture of restricted stock (in shares) | (3,312) | ||||||||||||||||||
Forfeiture of restricted stock | 0 | $ 0 | 0 | ||||||||||||||||
Conversion of operating partnership units (in shares) | 17,372 | 17,372 | |||||||||||||||||
Conversion of operating partnership units | $ 0 | (916) | 916 | ||||||||||||||||
Dividends declared and paid | (34,776) | (25,491) | |||||||||||||||||
Dividends declared and paid (noncontrolling interest) | (9,285) | ||||||||||||||||||
Stock-based compensation | 1,454 | 1,454 | |||||||||||||||||
Shares withheld for employee taxes (in shares) | (159) | [2] | (159) | ||||||||||||||||
Shares withheld for employee taxes | (6) | (6) | $ (6) | [2] | $ 0 | (6) | |||||||||||||
Other comprehensive income - change in value of interest rate swaps | 3,736 | 3,736 | $ 3,736 | $ 3,736 | $ 3,736 | $ 2,750 | $ 986 | ||||||||||||
Reclassification of amortization of forward-starting swap included in interest expense | (639) | (639) | $ (639) | (467) | (172) | ||||||||||||||
Ending Balance (in shares) at Jun. 30, 2018 | 47,223,809 | ||||||||||||||||||
Ending Balance at Jun. 30, 2018 | 817,635 | $ 473 | 919,598 | (120,008) | 13,734 | 3,838 | |||||||||||||
Beginning partners' capital account (in shares) at Dec. 31, 2017 | 17,194,980 | 47,204,588 | [2] | ||||||||||||||||
Beginning partners' capital account at Dec. 31, 2017 | 844,144 | 15,750 | $ 6,135 | $ 822,259 | [2] | ||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||
Net income | 3,722 | 3,722 | $ 959 | $ 2,763 | [2] | $ 2,763 | 959 | ||||||||||||
Conversion of operating partnership units (in shares) | 17,372 | 17,372 | [2] | ||||||||||||||||
Conversion of operating partnership units | $ 916 | $ (916) | [2] | ||||||||||||||||
Issuance of restricted units (in shares) | [2] | 5,320 | |||||||||||||||||
Forfeiture of restricted units (in shares) | [2] | (3,312) | |||||||||||||||||
Distributions | (34,776) | $ (9,285) | $ (25,491) | [2] | |||||||||||||||
Stock-based compensation | 1,454 | $ 1,454 | [2] | ||||||||||||||||
Shares withheld for employee taxes (in shares) | (159) | [2] | (159) | ||||||||||||||||
Shares withheld for employee taxes | (6) | (6) | $ (6) | [2] | $ 0 | $ (6) | |||||||||||||
Other comprehensive income (loss) - unrealized income (loss) on swap derivative during the period | 3,736 | 3,736 | $ 3,736 | $ 3,736 | $ 3,736 | $ 2,750 | $ 986 | ||||||||||||
Reclassification of amortization of forward-starting swap included in interest expense | $ (639) | (639) | (639) | $ (467) | $ (172) | ||||||||||||||
Ending partners' capital account (in shares) at Jun. 30, 2018 | 17,177,608 | 47,223,809 | [2] | ||||||||||||||||
Ending partners' capital account at Jun. 30, 2018 | $ 817,635 | $ 18,847 | $ (1,275) | $ 800,063 | [2] | ||||||||||||||
[1] | Consists of limited partnership interests held by third parties. | ||||||||||||||||||
[2] | Consists of general partnership interests held by American Assets Trust, Inc. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 3,722 | $ 17,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | 2,096 | (1,397) |
Depreciation and amortization | 66,147 | 42,168 |
Amortization of debt issuance costs and debt fair value adjustments | 806 | 2,180 |
Stock-based compensation expense | 1,454 | 1,278 |
Settlement of derivative instruments | 0 | 10,667 |
Other noncash interest expense | (639) | (475) |
Other, net | 1,495 | 482 |
Changes in operating assets and liabilities | ||
Change in accounts receivable | 2,220 | 2,674 |
Change in other assets | 755 | 468 |
Change in accounts payable and accrued expenses | 1,749 | 5,869 |
Change in security deposits payable | 2,142 | 665 |
Change in other liabilities and deferred credits | 370 | 496 |
Net cash provided by operating activities | 82,317 | 82,971 |
INVESTING ACTIVITIES | ||
Acquisition of real estate | 0 | 232,061 |
Capital expenditures | (20,353) | (19,883) |
Leasing commissions | (3,057) | (2,094) |
Deposit on property acquisition | 0 | (1,000) |
Net cash used in investing activities | (23,410) | (255,038) |
FINANCING ACTIVITIES | ||
Repayment of secured notes payable | (74,476) | (166,439) |
Proceeds from unsecured line of credit | 35,000 | 130,000 |
Repayment of unsecured line of credit | (13,000) | (150,000) |
Proceeds from unsecured notes payable | 0 | 350,000 |
Debt issuance costs | (2,656) | (2,281) |
Proceeds from issuance of common stock, net | (236) | |
Proceeds from issuance of common stock, net | 30,075 | |
Dividends paid to common stock and unitholders | (34,776) | (33,448) |
Shares withheld for employee taxes | 6 | 0 |
Net cash (used in) provided by financing activities | (90,150) | 157,907 |
Net (decrease) increase in cash and cash equivalents | (31,243) | (14,160) |
Cash, cash equivalents, and restricted cash equivalents, beginning of period | 91,954 | 54,751 |
Cash, cash equivalents, and restricted cash equivalents, end of period | 60,711 | 40,591 |
Cash and cash equivalents | 51,326 | 31,380 |
Restricted cash | 9,385 | 9,211 |
American Assets Trust, L.P. | ||
OPERATING ACTIVITIES | ||
Net income | 3,722 | 17,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | 2,096 | (1,397) |
Depreciation and amortization | 66,147 | 42,168 |
Amortization of debt issuance costs and debt fair value adjustments | 806 | 2,180 |
Stock-based compensation expense | 1,454 | 1,278 |
Settlement of derivative instruments | 0 | 10,667 |
Other noncash interest expense | (639) | (475) |
Other, net | 1,495 | 482 |
Changes in operating assets and liabilities | ||
Change in accounts receivable | 2,220 | 2,674 |
Change in other assets | 755 | 468 |
Change in accounts payable and accrued expenses | 1,749 | 5,869 |
Change in security deposits payable | 2,142 | 665 |
Change in other liabilities and deferred credits | 370 | 496 |
Net cash provided by operating activities | 82,317 | 82,971 |
INVESTING ACTIVITIES | ||
Acquisition of real estate | 0 | 232,061 |
Capital expenditures | (20,353) | (19,883) |
Leasing commissions | (3,057) | (2,094) |
Deposit on property acquisition | 0 | (1,000) |
Net cash used in investing activities | (23,410) | (255,038) |
FINANCING ACTIVITIES | ||
Repayment of secured notes payable | (74,476) | (166,439) |
Proceeds from unsecured line of credit | 35,000 | 130,000 |
Repayment of unsecured line of credit | (13,000) | (150,000) |
Proceeds from unsecured notes payable | 0 | 350,000 |
Debt issuance costs | (2,656) | (2,281) |
Proceeds from issuance of common stock, net | (236) | |
Contributions from American Assets Trust, Inc. | 30,075 | |
Dividends paid to common stock and unitholders | (34,776) | (33,448) |
Shares withheld for employee taxes | 6 | 0 |
Net cash (used in) provided by financing activities | (90,150) | 157,907 |
Net (decrease) increase in cash and cash equivalents | (31,243) | (14,160) |
Cash, cash equivalents, and restricted cash equivalents, beginning of period | 91,954 | 54,751 |
Cash, cash equivalents, and restricted cash equivalents, end of period | 60,711 | 40,591 |
Cash and cash equivalents | 51,326 | 31,380 |
Restricted cash | $ 9,385 | $ 9,211 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
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 193 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. As of June 30, 2018 , we owned or had a controlling interest in 26 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of June 30, 2018 , we owned land at four of our properties that we classify as held for development and/or construction in progress. A summary of the properties owned by us is as follows: Retail Carmel Country Plaza Gateway Marketplace Alamo Quarry Market Carmel Mountain Plaza Del Monte Center Hassalo on Eighth - Retail South Bay Marketplace Geary Marketplace Lomas Santa Fe Plaza The Shops at Kalakaua Solana Beach Towne Centre Waikele Center Office 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 Hassalo on Eighth - Residential Imperial Beach Gardens Mariner's Point Santa Fe Park RV Resort Pacific Ridge Apartments Mixed-Use Waikiki Beach Walk Retail and Embassy Suites™ Hotel Held for Development and/or Construction in Progress Solana Beach Corporate Centre – Land Solana Beach – Highway 101 – Land Torrey Point – Construction in Progress Lloyd District Portfolio – Construction in Progress Basis of Presentation Our consolidated financial statements include the accounts of the Company, our Operating Partnership and our subsidiaries. The equity interests of other investors in our Operating Partnership are reflected as noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. The accompanying consolidated financial statements of the Company and the Operating Partnership have been prepared in accordance with the rules applicable to Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (“GAAP”) for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and notes therein included in the Company's and Operating Partnership's annual report on Form 10-K for the year ended December 31, 2017 . The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using our best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates. Any reference to the number of properties, number of units, square footage, employee numbers or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Consolidated Statements of Cash Flows—Supplemental Disclosures The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands): Six Months Ended June 30, 2018 2017 Supplemental cash flow information Total interest costs incurred $ 27,419 $ 26,730 Interest capitalized $ 911 $ 747 Interest expense $ 26,508 $ 25,983 Cash paid for interest, net of amounts capitalized $ 26,926 $ 21,984 Cash paid for income taxes $ 337 $ 296 Supplemental schedule of noncash investing and financing activities Accounts payable and accrued liabilities for construction in progress $ (1,192 ) $ 2,113 Accrued leasing commissions $ 1,040 $ 498 Reduction to capital for prepaid offering costs $ 236 $ 69 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, 2017 . Except for the adoption of the accounting standards during the first quarter of 2018 as discussed below, there have been no changes to our significant accounting policies during the six months ended June 30, 2018 . Segment Information Segment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369 -room all-suite hotel. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-2, Leases . This pronouncement is expected to result in the recognition of a right-to-use asset and related liability to account for future obligations under ground lease agreements for which we are the lessee. In addition, this pronouncement will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of June 30, 2018 , the remaining contractual payments under lease agreements for which we are the lessee aggregated approximately $36.7 million . As a lessor, under current accounting standards, we recognize rental revenue from our operating leases on a straight-line basis over the respective lease terms. We commence recognition of rental revenue at the date the property is ready for its intended use and the tenant takes possession of or controls the physical use of the property. Under current accounting standards, tenant recoveries related to payments of real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses are considered lease components. We recognize these tenant recoveries as revenue when services are rendered in an amount equal to the related operating expenses incurred that are recoverable under the terms of the applicable lease. Under this pronouncement, each lease agreement will be evaluated to identify the lease components and nonlease components at lease inception. The total consideration in the lease agreement will be allocated to the lease and nonlease components based on their relative standalone selling prices. Lessors will continue to recognize the lease revenue component using an approach that is substantially equivalent to existing guidance for operating leases (straight-line basis). In March 2018, the FASB approved an amendment to the lease ASU that would allow lessors to elect, as a practical expedient, not to allocate the total consideration to lease and nonlease components based on their relative standalone selling prices. This practical expedient will allow lessors to elect a combined single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and, the combined single lease component would be classified as an operating lease. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We plan to adopt the provisions of ASU No. 2016-2 effective January 1, 2019 using the modified retrospective approach. We continue to evaluate the impact this pronouncement will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards. The pronouncement is effective for reporting periods beginning after December 15, 2017. We adopted the provisions of the ASU effective January 1, 2018 using the modified retrospective approach. As discussed above, leases are specifically excluded from this and will be governed by the applicable lease codification. We evaluated the revenue recognition for all contracts within this scope under existing accounting standards and under the new revenue recognition ASU and confirmed that there were no differences in the amounts recognized or the pattern of recognition. This evaluation included revenues from the hotel portion of our mixed-use property, parking income and excise taxes charged to customers. Therefore, the adoption of this ASU did not result in an adjustment to our retained earnings on January 1, 2018. |
ACQUIRED IN-PLACE LEASES AND AB
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 In-place leases $ 44,500 $ 54,206 Accumulated amortization (37,269 ) (45,835 ) Above market leases 15,525 21,262 Accumulated amortization (14,733 ) (20,084 ) Acquired lease intangible assets, net $ 8,023 $ 9,549 Below market leases $ 67,348 $ 67,423 Accumulated accretion (38,991 ) (37,241 ) Acquired lease intangible liabilities, net $ 28,357 $ 30,182 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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 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. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2018 we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivative. As a result, we have determined that our derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy. A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands): June 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Deferred compensation liability $ — $ 1,287 $ — $ 1,287 $ — $ 1,156 $ — $ 1,156 Interest rate swap asset $ — $ 8,818 $ — $ 8,818 $ — $ 5,091 $ — $ 5,091 Interest rate swap liability $ — $ — $ — $ — $ — $ 10 $ — $ 10 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 3.9% to 5.0% . Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying values of our revolving line of credit and term loan set forth below are deemed to be at fair value since the outstanding debt is directly tied to monthly LIBOR contracts. A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands): June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Secured notes payable, net $ 205,155 $ 208,889 $ 279,550 $ 286,156 Unsecured term loans, net $ 248,541 $ 250,000 $ 248,839 $ 250,000 Unsecured senior guaranteed notes, net $ 796,865 $ 781,818 $ 796,631 $ 802,699 Unsecured line of credit, net $ 20,133 $ 22,000 $ — $ — |
DERIVATIVE AND HEDGING ACTIVITI
DERIVATIVE AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2018 | |
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. The following is a summary of the terms of our outstanding interest rate swaps as of June 30, 2018 (dollars in thousands): Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value Bank of America, N.A. $ 100,000 1/9/2014 1/9/2019 $ 236 U.S. Bank N.A. $ 100,000 3/1/2016 3/1/2023 $ 5,693 Wells Fargo Bank, N.A. $ 50,000 5/2/2016 3/1/2023 $ 2,889 The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings for as long as hedged cash flows remain probable. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, counter party credit risk and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Leasing commissions, net of accumulated amortization of $29,348 and $28,318, respectively $ 21,620 $ 20,633 Interest rate swap asset 8,818 5,091 Acquired above market leases, net 792 1,178 Acquired in-place leases, net 7,231 8,371 Lease incentives, net of accumulated amortization of $208 and $136, respectively 1,057 916 Other intangible assets, net of accumulated amortization of $1,100 and $1,115, respectively 202 227 Prepaid expenses and other 5,214 5,945 Total other assets $ 44,934 $ 42,361 |
OTHER LIABILITIES AND DEFERRED
OTHER LIABILITIES AND DEFERRED CREDITS | 6 Months Ended |
Jun. 30, 2018 | |
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): June 30, 2018 December 31, 2017 Acquired below market leases, net $ 28,357 $ 30,182 Prepaid rent and deferred revenue 9,545 8,429 Interest rate swap liability — 10 Deferred rent expense and lease intangible 2,017 1,670 Deferred compensation 1,287 1,156 Deferred tax liability 117 123 Straight-line rent liability 7,940 4,428 Other liabilities 70 63 Total other liabilities and deferred credits, net $ 49,333 $ 46,061 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 | 6 Months Ended |
Jun. 30, 2018 | |
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. has guaranteed the Operating Partnership's obligations under the (i) amended and restated credit facility, (ii) term loans and (iii) senior guaranteed notes. Additionally, American Assets Trust, Inc. has provided carve-out guarantees on certain property-level mortgage 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 June 30, 2018 and December 31, 2017 (in thousands): Principal Balance as of Stated Interest Rate Stated Maturity Date Description of Debt June 30, 2018 December 31, 2017 as of June 30, 2018 Loma Palisades (1)(2) — 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) 19,825 20,023 7.22 % June 1, 2019 Torrey Reserve—VCI, VCII, VCIII (3) 6,700 6,764 6.36 % June 1, 2020 Solana Beach Corporate Centre I-II (3) 10,613 10,721 5.91 % June 1, 2020 Solana Beach Towne Centre (3) 35,375 35,737 5.91 % June 1, 2020 City Center Bellevue (1) 111,000 111,000 3.98 % November 1, 2022 205,413 279,889 Debt issuance costs, net of accumulated amortization of $828 and $1,191, respectively (258 ) (339 ) Total Secured Notes Payable Outstanding $ 205,155 $ 279,550 (1) Interest only. (2) Loan repaid in full, without premium or penalty, on March 30, 2018. (3) Principal payments based on a 30 -year amortization schedule. Certain loans require us to comply with various financial covenants. As of June 30, 2018 , the Operating Partnership was in compliance with these financial covenants. Unsecured notes payable The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of June 30, 2018 and December 31, 2017 (in thousands): Description of Debt Principal Balance as of Stated Interest Rate Stated Maturity Date June 30, 2018 December 31, 2017 as of June 30, 2018 Term Loan A $ 100,000 $ 100,000 Variable (1) January 9, 2019 Senior Guaranteed Notes, Series A 150,000 150,000 4.04 % (2) October 31, 2021 Term Loan B 100,000 100,000 Variable (3) March 1, 2023 Term Loan C 50,000 50,000 Variable (4) March 1, 2023 Senior Guaranteed Notes, Series F 100,000 100,000 3.78 % (5) July 19, 2024 Senior Guaranteed Notes, Series B 100,000 100,000 4.45 % February 2, 2025 Senior Guaranteed Notes, Series C 100,000 100,000 4.50 % April 1, 2025 Senior Guaranteed Notes, Series D 250,000 250,000 4.29 % (6) March 1, 2027 Senior Guaranteed Notes, Series E 100,000 100,000 4.24 % (7) May 23, 2029 1,050,000 1,050,000 Debt issuance costs, net of accumulated amortization of $6,387 and $5,866, respectively (4,594 ) (4,530 ) Total Unsecured Notes Payable $ 1,045,406 $ 1,045,470 (1) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan A at approximately 3.08% through its maturity date and extension options, subject to adjustments based on our consolidated leverage ratio. (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. (3) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan B is approximately 2.75% , subject to adjustments based on our consolidated leverage ratio. (4) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan C is approximately 2.74% , subject to adjustments based on our consolidated leverage ratio. (5) The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million . The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum. (6) The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million . The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum. (7) The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million . The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum. Certain loans require us to comply with various financial covenants. As of June 30, 2018 , the Operating Partnership was in compliance with these financial covenants. On January 9, 2018, we entered into the Third Amendment to the Term Loan Agreement (as so amended, the "Term Loan Agreement"), which maintains the seven -year $150 million unsecured term loan (referred to herein as Term Loan B and Term Loan C) to the Operating Partnership that matures on March 1, 2023 (the “$150mm Term Loan”). Effective as of March 1, 2018, borrowings under the Term Loan Agreement with respect to the $150mm Term Loan bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) LIBOR , plus a spread which ranges from 1.20% to 1.70% based on the Operating Partnership’s consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0% , (b) the prime rate , (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on the Operating Partnership’s consolidated leverage ratio. Additionally, the Operating Partnership may elect for borrowings to bear interest based on a ratings-based pricing grid as per the Operating Partnership’s then-applicable investment grade debt ratings under the terms set forth in the Term Loan Agreement. Second Amended and Restated Credit Facility On January 9, 2018, we entered into a second amended and restated credit agreement (the "Second Amended and Restated Credit Facility"). The Second Amended and Restated Credit Facility provides for aggregate, unsecured borrowing of $450 million , consisting of a revolving line of credit of $350 million (the "Revolver Loan") and a term loan of $100 million (the "Term Loan A"). The Second Amended and Restated Credit Facility has an accordion feature that may allow us to increase the availability thereunder up to an additional $350 million , subject to meeting specified requirements and obtaining additional commitments from lenders. At June 30, 2018 , there was $22 million outstanding under the Revolver Loan with approximately $1.9 million of debt issuance costs, net. Borrowings under the Second Amended and Restated Credit Agreement initially bear interest at floating rates equal to, at our option, either (1) LIBOR , plus a spread which ranges from (a) 1.05% to 1.50% (with respect to the Revolver Loan) and (b) 1.30% to 1.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate , (b) the federal funds rate plus 50 bps or (c) LIBOR plus 100 bps, plus a spread which ranges from (i) 0.10% to 0.50% (with respect to the Revolver Loan) and (ii) 0.30% to 0.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio. For the six months ended June 30, 2018 , the weighted average interest rate on the Revolver Loan was 3.01% . The Revolver Loan initially matures on January 9, 2022, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six -month period. The Term Loan A matures on January 9, 2019 with no further extension options. The foregoing extension options are exercisable by us subject to the satisfaction of certain conditions. Additionally, the Second Amended and Restated Credit Facility includes a number of customary financial covenants, including: • A maximum leverage ratio (defined as total indebtedness net of certain cash and cash equivalents to total asset value) of 60% , • A maximum secured leverage ratio (defined as total secured debt to secured total asset value) of 40% , • A minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x, • A minimum unsecured interest coverage ratio of 1.75x, • A maximum unsecured leverage ratio of 60% , and • Recourse indebtedness at any time cannot exceed 15% of total asset value. The Second Amended and Restated Credit Facility provides that our annual distributions may not exceed the greater of (1) 95% of our funds from operation ("FFO") or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax. If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT. As of June 30, 2018 , the Operating Partnership was in compliance with the financial covenants in the Second Amended and Restated Credit Facility. |
PARTNERS CAPITAL OF AMERICAN AS
PARTNERS CAPITAL OF AMERICAN ASSETS TRUST, L.P. | 6 Months Ended |
Jun. 30, 2018 | |
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 17,177,608 common units (the “noncontrolling common units”), and represented approximately 26.8% of the ownership interests in our Operating Partnership at June 30, 2018 . Common units and shares of our common stock have essentially the same economic characteristics in that common units and shares of our common stock share equally in the total net income or loss distributions of our Operating Partnership. Investors who own common units have the right to cause our Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of our common stock, or, at our election, shares of our common stock on a one -for-one basis. During the six months ended June 30, 2018 , 17,372 common units were converted into shares of our common stock. Earnings Per Unit of the Operating Partnership Basic earnings per unit (“EPU”) of the Operating Partnership is computed by dividing income applicable to unitholders by the weighted average Operating Partnership units outstanding, as adjusted for the effect of participating securities. Operating Partnership units granted in equity-based payment transactions that have non-forfeitable dividend equivalent rights are considered participating securities prior to vesting. The impact of unvested Operating Partnership unit awards on EPU has been calculated using the two-class method whereby earnings are allocated to the unvested Operating Partnership unit awards based on distributions and the unvested Operating Partnership units’ participation rights in undistributed earnings. The calculation of diluted EPU for the three months ended June 30, 2018 and 2017 does not include the weighted average of 266,260 and 232,047 unvested Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive to income from continuing operations and net income attributable to the unitholders. The calculation of diluted EPU for the six months ended June 30, 2018 and 2017 does not include the weighted average of 267,367 and 232,073 unvested Operating Partnership units, respectively. |
EQUITY OF AMERICAN ASSETS TRUST
EQUITY OF AMERICAN ASSETS TRUST, INC. | 6 Months Ended |
Jun. 30, 2018 | |
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 . On March 2, 2018, we amended certain of these equity programs, terminated one such program and entered into a new equity program with one new sales agent. The sales of shares of our common stock made through the ATM equity program, as amended, are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. During the six months ended June 30, 2018 , no shares of common stock were sold through the ATM equity program. We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of June 30, 2018 , we had the capacity to issue up to an additional $176.2 million in shares of our common stock under our ATM equity program. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under the ATM equity program. Dividends The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 2018 : Period Amount per Share/Unit Period Covered Dividend Paid Date First Quarter 2018 $ 0.27 January 1, 2018 to March 31, 2018 March 29, 2018 Second Quarter 2018 $ 0.27 April 1, 2018 to June 30, 2018 June 28, 2018 Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders and holders of common units, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. Stock-Based Compensation We follow the FASB guidance related to stock compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer. The guidance also defines a fair value-based method of accounting for an employee stock option or similar equity instrument. The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2018 : Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 268,768 $29.89 Granted 5,320 $37.58 Vested (6,719 ) $37.90 Forfeited (3,312 ) $29.71 Nonvested at June 30, 2018 264,057 $29.85 We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $0.7 million and $0.6 million in noncash compensation expense for the three month periods ended June 30, 2018 and 2017 , respectively, which is included in general and administrative expense on the consolidated statements of comprehensive income. We recognized $1.5 million and $1.3 million in noncash compensation expense for the six months ended June 30, 2018 and 2017 , respectively. Unrecognized compensation expense was $2.7 million at June 30, 2018 . 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 266,260 and 232,047 for the three months ended June 30, 2018 and 2017 , respectively and 267,367 and 232,073 for the six months ended June 30, 2018 and 2017 , 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 June 30, 2018 and 2017, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. Additionally, the unvested restricted stock awards subject to time vesting are anti-dilutive for all periods presented, and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS. The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 NUMERATOR Net income from operations $ 4,413 $ 7,588 $ 3,722 $ 17,896 Less: Net income attributable to restricted shares (216 ) (61 ) (144 ) (121 ) Less: Income from operations attributable to unitholders in the Operating Partnership (1,125 ) (2,008 ) (959 ) (4,869 ) Net income attributable to common stockholders—basic $ 3,072 $ 5,519 $ 2,619 $ 12,906 Income from operations attributable to American Assets Trust, Inc. common stockholders—basic $ 3,072 $ 5,519 $ 2,619 $ 12,906 Plus: Income from operations attributable to unitholders in the Operating Partnership 1,125 2,008 959 4,869 Net income attributable to common stockholders—diluted $ 4,197 $ 7,527 $ 3,578 $ 17,775 DENOMINATOR Weighted average common shares outstanding—basic 46,939,449 46,871,377 46,937,645 46,524,510 Effect of dilutive securities—conversion of Operating Partnership units 17,193,071 17,217,704 17,194,020 17,551,409 Weighted average common shares outstanding—diluted 64,132,520 64,089,081 64,131,665 64,075,919 Earnings per common share, basic $ 0.07 $ 0.12 $ 0.06 $ 0.28 Earnings per common share, diluted $ 0.07 $ 0.12 $ 0.06 $ 0.28 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
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 is included in our consolidated balance sheets of $0.1 million as of June 30, 2018 and December 31, 2017 , respectively, in relation to real estate asset basis differences of property subject to state taxes based on income and certain prepaid expenses of our TRS. Income tax expense is recorded in other (expense) income, net on our consolidated statements of comprehensive income. For the three and six months ended June 30, 2018 , we recorded income tax expense of $0.2 million and $0.1 million , respectively. For the three and six months ended June 30, 2017 , we recorded income tax benefit of $0.1 million and $0.2 million , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
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 at One Market 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 a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021. Current minimum annual payments under the leases are as follows, as of June 30, 2018 (in thousands): Year Ending December 31, 2018 (six months ending December 31, 2018) $ 1,655 2019 3,347 2020 3,422 2021 3,460 (1) 2022 2,613 Thereafter 22,210 Total $ 36,707 (1) Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the extended lease term. In the table above, 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 $7.6 million based on operating performance through June 30, 2018 . 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. 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. Thirteen 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 31.7% of total revenues for the six months ended June 30, 2018 . 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 34.9% of total revenues for the six months ended June 30, 2018 . This makes us susceptible to demand for office rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the office industry. For the six months ended June 30, 2018 and 2017 , no tenant accounted for more than 10% of our total rental revenue. |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 , 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, 2018 (six months ending December 31, 2018) $ 84,572 2019 162,912 2020 145,082 2021 122,495 2022 103,261 Thereafter 278,047 Total $ 896,369 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Minimum rents Retail $ 19,548 $ 18,544 $ 39,202 $ 37,078 Office 24,140 23,213 47,446 46,335 Multifamily 11,721 10,249 23,207 17,484 Mixed-use 2,740 2,581 5,565 5,142 Cost reimbursement 8,491 8,128 16,833 16,016 Percentage rent 355 456 791 911 Hotel revenue 9,530 9,345 19,313 19,210 Other 367 409 736 789 Total rental income $ 76,892 $ 72,925 $ 153,093 $ 142,965 Minimum rents include $(2.8) million and $(0.5) million for the three months ended June 30, 2018 and 2017 , respectively, and $(3.5) million and $(0.3) million for the six months ended June 30, 2018 and 2017 , 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 $0.7 million and $0.9 million for the three months ended June 30, 2018 and 2017 , respectively, and $1.4 million and $1.7 million for the six months ended June 30, 2018 and 2017 , respectively. The principal components of rental expenses are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Rental operating $ 8,742 $ 8,437 $ 17,402 $ 16,510 Hotel operating 5,995 5,746 12,027 12,297 Repairs and maintenance 3,389 2,984 6,390 5,515 Marketing 503 462 915 898 Rent 806 794 1,600 1,551 Hawaii excise tax 969 945 2,002 1,970 Management fees 478 473 966 959 Total rental expenses $ 20,882 $ 19,841 $ 41,302 $ 39,700 |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE, NET | OTHER INCOME, NET The principal components of other income, net, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest and investment income $ 23 $ 113 $ 163 $ 260 Income tax (expense) benefit (171 ) 79 (106 ) 242 Other non-operating income — — 4 — Total other (expense) income, net $ (148 ) $ 192 $ 61 $ 502 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Through July 1, 2018, we maintained a workers' compensation insurance policy with Insurance Company of the West, a California corporation ("ICW"), which is an insurance company majority owned and controlled by Ernest Rady, our Chief Executive Officer, President and Chairman of the Board. The workers' compensation policy was renewed on July 1, 2016 and the premium was approximately $0.2 million for the period from July 1, 2016 through July 1, 2017. We renewed this policy with ICW during the second quarter of 2017 and the premium was approximately $0.2 million for the period from July 1, 2017 through July 1, 2018. We did not renew this policy with ICW during the second quarter of 2018 and commencing July 1, 2018, we entered into a workers' compensation policy with an unaffiliated third-party insurer. During the first quarter of 2018, we signed a lease agreement with EDisability, LLC, an entity majority owned and controlled by Mr. Rady, for office space at Torrey Reserve Campus. Rent commenced on June 1, 2018 for an initial lease term of five years at an average annual rental rate of $0.2 million . Rental revenue recognized on the lease will be included in rental income on the statements of comprehensive income. The Waikiki Beach Walk entities have a 47.7% investment in WBW CHP LLC, an entity that was formed to, among other things, construct a chilled water plant to provide air conditioning to the property and other adjacent facilities. The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $0.5 million and $0.5 million for the six months ended June 30, 2018 and 2017 , respectively, are included in rental expenses on the statements of comprehensive income. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Retail Property revenue $ 26,415 $ 24,954 $ 52,572 $ 49,745 Property expense (7,138 ) (6,794 ) (13,949 ) (13,485 ) Segment profit 19,277 18,160 38,623 36,260 Total Office Property revenue 31,052 26,359 57,822 52,349 Property expense (8,342 ) (8,045 ) (16,355 ) (15,846 ) Segment profit 22,710 18,314 41,467 36,503 Total Multifamily Property revenue 12,622 11,023 25,046 18,914 Property expense (5,020 ) (4,082 ) (10,017 ) (7,293 ) Segment profit 7,602 6,941 15,029 11,621 Total Mixed-Use Property revenue 14,934 14,770 30,315 29,890 Property expense (9,010 ) (8,824 ) (18,155 ) (18,516 ) Segment profit 5,924 5,946 12,160 11,374 Total segments’ profit $ 55,513 $ 49,361 $ 107,279 $ 95,758 The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total segments’ profit $ 55,513 $ 49,361 $ 107,279 $ 95,758 General and administrative (5,396 ) (5,131 ) (10,963 ) (10,213 ) Depreciation and amortization (32,868 ) (24,182 ) (66,147 ) (42,168 ) Interest expense (12,688 ) (12,652 ) (26,508 ) (25,983 ) Other income, net (148 ) 192 61 502 Net income 4,413 7,588 3,722 17,896 Net income attributable to restricted shares (216 ) (61 ) (144 ) (121 ) Net income attributable to unitholders in the Operating Partnership (1,125 ) (2,008 ) (959 ) (4,869 ) Net income attributable to American Assets Trust, Inc. stockholders $ 3,072 $ 5,519 $ 2,619 $ 12,906 The following table shows net real estate and secured note payable balances for each of the segments (in thousands): June 30, 2018 December 31, 2017 Net Real Estate Retail $ 630,860 $ 658,654 Office 806,336 813,121 Multifamily 418,173 424,044 Mixed-Use 178,625 180,888 $ 2,033,994 $ 2,076,707 Secured Notes Payable (1) Retail $ 35,375 $ 35,737 Office 170,038 170,408 Multifamily — 73,744 Mixed-Use — — $ 205,413 $ 279,889 (1) Excludes debt issuance costs of $0.3 million for each of the periods ending June 30, 2018 and December 31, 2017 , respectively. Capital expenditures for each segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Capital Expenditures (1) Retail $ 3,228 $ 2,800 $ 5,457 $ 4,046 Office 7,513 8,800 14,886 15,160 Multifamily 875 2,109 2,484 2,568 Mixed-Use 429 113 583 203 $ 12,045 $ 13,822 $ 23,410 $ 21,977 (1) Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 193 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. As of June 30, 2018 , we owned or had a controlling interest in 26 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of June 30, 2018 , we owned land at four of our properties that we classify as held for development and/or construction in progress. A summary of the properties owned by us is as follows: Retail Carmel Country Plaza Gateway Marketplace Alamo Quarry Market Carmel Mountain Plaza Del Monte Center Hassalo on Eighth - Retail South Bay Marketplace Geary Marketplace Lomas Santa Fe Plaza The Shops at Kalakaua Solana Beach Towne Centre Waikele Center Office 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 Hassalo on Eighth - Residential Imperial Beach Gardens Mariner's Point Santa Fe Park RV Resort Pacific Ridge Apartments Mixed-Use Waikiki Beach Walk Retail and Embassy Suites™ Hotel Held for Development and/or Construction in Progress Solana Beach Corporate Centre – Land Solana Beach – Highway 101 – Land Torrey Point – Construction in Progress Lloyd District Portfolio – Construction in Progress |
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, 2017 . The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using our best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates. Any reference to the number of properties, number of units, square footage, employee numbers or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. |
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, 2017 . Except for the adoption of the accounting standards during the first quarter of 2018 as discussed below, there have been no changes to our significant accounting policies during the six months ended June 30, 2018 . |
Segment Information | Segment Information Segment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369 -room all-suite hotel. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-2, Leases . This pronouncement is expected to result in the recognition of a right-to-use asset and related liability to account for future obligations under ground lease agreements for which we are the lessee. In addition, this pronouncement will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of June 30, 2018 , the remaining contractual payments under lease agreements for which we are the lessee aggregated approximately $36.7 million . As a lessor, under current accounting standards, we recognize rental revenue from our operating leases on a straight-line basis over the respective lease terms. We commence recognition of rental revenue at the date the property is ready for its intended use and the tenant takes possession of or controls the physical use of the property. Under current accounting standards, tenant recoveries related to payments of real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses are considered lease components. We recognize these tenant recoveries as revenue when services are rendered in an amount equal to the related operating expenses incurred that are recoverable under the terms of the applicable lease. Under this pronouncement, each lease agreement will be evaluated to identify the lease components and nonlease components at lease inception. The total consideration in the lease agreement will be allocated to the lease and nonlease components based on their relative standalone selling prices. Lessors will continue to recognize the lease revenue component using an approach that is substantially equivalent to existing guidance for operating leases (straight-line basis). In March 2018, the FASB approved an amendment to the lease ASU that would allow lessors to elect, as a practical expedient, not to allocate the total consideration to lease and nonlease components based on their relative standalone selling prices. This practical expedient will allow lessors to elect a combined single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and, the combined single lease component would be classified as an operating lease. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We plan to adopt the provisions of ASU No. 2016-2 effective January 1, 2019 using the modified retrospective approach. We continue to evaluate the impact this pronouncement will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards. The pronouncement is effective for reporting periods beginning after December 15, 2017. We adopted the provisions of the ASU effective January 1, 2018 using the modified retrospective approach. As discussed above, leases are specifically excluded from this and will be governed by the applicable lease codification. We evaluated the revenue recognition for all contracts within this scope under existing accounting standards and under the new revenue recognition ASU and confirmed that there were no differences in the amounts recognized or the pattern of recognition. This evaluation included revenues from the hotel portion of our mixed-use property, parking income and excise taxes charged to customers. Therefore, the adoption of this ASU did not result in an adjustment to our retained earnings on January 1, 2018. |
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 ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidated Statements of Cash Flows-Supplemental Disclosures | The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands): Six Months Ended June 30, 2018 2017 Supplemental cash flow information Total interest costs incurred $ 27,419 $ 26,730 Interest capitalized $ 911 $ 747 Interest expense $ 26,508 $ 25,983 Cash paid for interest, net of amounts capitalized $ 26,926 $ 21,984 Cash paid for income taxes $ 337 $ 296 Supplemental schedule of noncash investing and financing activities Accounts payable and accrued liabilities for construction in progress $ (1,192 ) $ 2,113 Accrued leasing commissions $ 1,040 $ 498 Reduction to capital for prepaid offering costs $ 236 $ 69 |
ACQUIRED IN-PLACE LEASES AND 25
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 In-place leases $ 44,500 $ 54,206 Accumulated amortization (37,269 ) (45,835 ) Above market leases 15,525 21,262 Accumulated amortization (14,733 ) (20,084 ) Acquired lease intangible assets, net $ 8,023 $ 9,549 Below market leases $ 67,348 $ 67,423 Accumulated accretion (38,991 ) (37,241 ) Acquired lease intangible liabilities, net $ 28,357 $ 30,182 |
FAIR VALUE OF FINANCIAL INSTR26
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial liabilities measured at fair value on recurring basis | A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands): June 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Deferred compensation liability $ — $ 1,287 $ — $ 1,287 $ — $ 1,156 $ — $ 1,156 Interest rate swap asset $ — $ 8,818 $ — $ 8,818 $ — $ 5,091 $ — $ 5,091 Interest rate swap liability $ — $ — $ — $ — $ — $ 10 $ — $ 10 |
Carrying amount and fair value of financial instruments | A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands): June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Secured notes payable, net $ 205,155 $ 208,889 $ 279,550 $ 286,156 Unsecured term loans, net $ 248,541 $ 250,000 $ 248,839 $ 250,000 Unsecured senior guaranteed notes, net $ 796,865 $ 781,818 $ 796,631 $ 802,699 Unsecured line of credit, net $ 20,133 $ 22,000 $ — $ — |
DERIVATIVE AND HEDGING ACTIVI27
DERIVATIVE AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following is a summary of the terms of our outstanding interest rate swaps as of June 30, 2018 (dollars in thousands): Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value Bank of America, N.A. $ 100,000 1/9/2014 1/9/2019 $ 236 U.S. Bank N.A. $ 100,000 3/1/2016 3/1/2023 $ 5,693 Wells Fargo Bank, N.A. $ 50,000 5/2/2016 3/1/2023 $ 2,889 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | Other assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Leasing commissions, net of accumulated amortization of $29,348 and $28,318, respectively $ 21,620 $ 20,633 Interest rate swap asset 8,818 5,091 Acquired above market leases, net 792 1,178 Acquired in-place leases, net 7,231 8,371 Lease incentives, net of accumulated amortization of $208 and $136, respectively 1,057 916 Other intangible assets, net of accumulated amortization of $1,100 and $1,115, respectively 202 227 Prepaid expenses and other 5,214 5,945 Total other assets $ 44,934 $ 42,361 |
OTHER LIABILITIES AND DEFERRE29
OTHER LIABILITIES AND DEFERRED CREDITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities and deferred credits | Other liabilities and deferred credits consist of the following (in thousands): June 30, 2018 December 31, 2017 Acquired below market leases, net $ 28,357 $ 30,182 Prepaid rent and deferred revenue 9,545 8,429 Interest rate swap liability — 10 Deferred rent expense and lease intangible 2,017 1,670 Deferred compensation 1,287 1,156 Deferred tax liability 117 123 Straight-line rent liability 7,940 4,428 Other liabilities 70 63 Total other liabilities and deferred credits, net $ 49,333 $ 46,061 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of total secured notes payable outstanding | The following is a summary of our total secured notes payable outstanding as of June 30, 2018 and December 31, 2017 (in thousands): Principal Balance as of Stated Interest Rate Stated Maturity Date Description of Debt June 30, 2018 December 31, 2017 as of June 30, 2018 Loma Palisades (1)(2) — 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) 19,825 20,023 7.22 % June 1, 2019 Torrey Reserve—VCI, VCII, VCIII (3) 6,700 6,764 6.36 % June 1, 2020 Solana Beach Corporate Centre I-II (3) 10,613 10,721 5.91 % June 1, 2020 Solana Beach Towne Centre (3) 35,375 35,737 5.91 % June 1, 2020 City Center Bellevue (1) 111,000 111,000 3.98 % November 1, 2022 205,413 279,889 Debt issuance costs, net of accumulated amortization of $828 and $1,191, respectively (258 ) (339 ) Total Secured Notes Payable Outstanding $ 205,155 $ 279,550 (1) Interest only. (2) Loan repaid in full, without premium or penalty, on March 30, 2018. (3) Principal payments based on a 30 -year amortization schedule. The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of June 30, 2018 and December 31, 2017 (in thousands): Description of Debt Principal Balance as of Stated Interest Rate Stated Maturity Date June 30, 2018 December 31, 2017 as of June 30, 2018 Term Loan A $ 100,000 $ 100,000 Variable (1) January 9, 2019 Senior Guaranteed Notes, Series A 150,000 150,000 4.04 % (2) October 31, 2021 Term Loan B 100,000 100,000 Variable (3) March 1, 2023 Term Loan C 50,000 50,000 Variable (4) March 1, 2023 Senior Guaranteed Notes, Series F 100,000 100,000 3.78 % (5) July 19, 2024 Senior Guaranteed Notes, Series B 100,000 100,000 4.45 % February 2, 2025 Senior Guaranteed Notes, Series C 100,000 100,000 4.50 % April 1, 2025 Senior Guaranteed Notes, Series D 250,000 250,000 4.29 % (6) March 1, 2027 Senior Guaranteed Notes, Series E 100,000 100,000 4.24 % (7) May 23, 2029 1,050,000 1,050,000 Debt issuance costs, net of accumulated amortization of $6,387 and $5,866, respectively (4,594 ) (4,530 ) Total Unsecured Notes Payable $ 1,045,406 $ 1,045,470 (1) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan A at approximately 3.08% through its maturity date and extension options, subject to adjustments based on our consolidated leverage ratio. (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. (3) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan B is approximately 2.75% , subject to adjustments based on our consolidated leverage ratio. (4) The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan C is approximately 2.74% , subject to adjustments based on our consolidated leverage ratio. (5) The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million . The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum. (6) The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million . The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum. (7) The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million . The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum. |
EQUITY OF AMERICAN ASSETS TRU31
EQUITY OF AMERICAN ASSETS TRUST, INC. (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Dividends declared and paid on shares of common stock and noncontrolling common units | The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 2018 : Period Amount per Share/Unit Period Covered Dividend Paid Date First Quarter 2018 $ 0.27 January 1, 2018 to March 31, 2018 March 29, 2018 Second Quarter 2018 $ 0.27 April 1, 2018 to June 30, 2018 June 28, 2018 |
Activity of restricted stock awards | The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2018 : Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 268,768 $29.89 Granted 5,320 $37.58 Vested (6,719 ) $37.90 Forfeited (3,312 ) $29.71 Nonvested at June 30, 2018 264,057 $29.85 |
Computation of basic and diluted EPS | The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 NUMERATOR Net income from operations $ 4,413 $ 7,588 $ 3,722 $ 17,896 Less: Net income attributable to restricted shares (216 ) (61 ) (144 ) (121 ) Less: Income from operations attributable to unitholders in the Operating Partnership (1,125 ) (2,008 ) (959 ) (4,869 ) Net income attributable to common stockholders—basic $ 3,072 $ 5,519 $ 2,619 $ 12,906 Income from operations attributable to American Assets Trust, Inc. common stockholders—basic $ 3,072 $ 5,519 $ 2,619 $ 12,906 Plus: Income from operations attributable to unitholders in the Operating Partnership 1,125 2,008 959 4,869 Net income attributable to common stockholders—diluted $ 4,197 $ 7,527 $ 3,578 $ 17,775 DENOMINATOR Weighted average common shares outstanding—basic 46,939,449 46,871,377 46,937,645 46,524,510 Effect of dilutive securities—conversion of Operating Partnership units 17,193,071 17,217,704 17,194,020 17,551,409 Weighted average common shares outstanding—diluted 64,132,520 64,089,081 64,131,665 64,075,919 Earnings per common share, basic $ 0.07 $ 0.12 $ 0.06 $ 0.28 Earnings per common share, diluted $ 0.07 $ 0.12 $ 0.06 $ 0.28 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Current minimum annual payments under the leases | Current minimum annual payments under the leases are as follows, as of June 30, 2018 (in thousands): Year Ending December 31, 2018 (six months ending December 31, 2018) $ 1,655 2019 3,347 2020 3,422 2021 3,460 (1) 2022 2,613 Thereafter 22,210 Total $ 36,707 (1) Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the extended lease term. In the table above, 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) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Current minimum future rentals under the leases | As of June 30, 2018 , 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, 2018 (six months ending December 31, 2018) $ 84,572 2019 162,912 2020 145,082 2021 122,495 2022 103,261 Thereafter 278,047 Total $ 896,369 |
COMPONENTS OF RENTAL INCOME A34
COMPONENTS OF RENTAL INCOME AND EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Minimum rents Retail $ 19,548 $ 18,544 $ 39,202 $ 37,078 Office 24,140 23,213 47,446 46,335 Multifamily 11,721 10,249 23,207 17,484 Mixed-use 2,740 2,581 5,565 5,142 Cost reimbursement 8,491 8,128 16,833 16,016 Percentage rent 355 456 791 911 Hotel revenue 9,530 9,345 19,313 19,210 Other 367 409 736 789 Total rental income $ 76,892 $ 72,925 $ 153,093 $ 142,965 |
Principal components of rental expenses | The principal components of rental expenses are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Rental operating $ 8,742 $ 8,437 $ 17,402 $ 16,510 Hotel operating 5,995 5,746 12,027 12,297 Repairs and maintenance 3,389 2,984 6,390 5,515 Marketing 503 462 915 898 Rent 806 794 1,600 1,551 Hawaii excise tax 969 945 2,002 1,970 Management fees 478 473 966 959 Total rental expenses $ 20,882 $ 19,841 $ 41,302 $ 39,700 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Principal components of other expense, net | The principal components of other income, net, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest and investment income $ 23 $ 113 $ 163 $ 260 Income tax (expense) benefit (171 ) 79 (106 ) 242 Other non-operating income — — 4 — Total other (expense) income, net $ (148 ) $ 192 $ 61 $ 502 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segments operating activity | The following table represents operating activity within our reportable segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Retail Property revenue $ 26,415 $ 24,954 $ 52,572 $ 49,745 Property expense (7,138 ) (6,794 ) (13,949 ) (13,485 ) Segment profit 19,277 18,160 38,623 36,260 Total Office Property revenue 31,052 26,359 57,822 52,349 Property expense (8,342 ) (8,045 ) (16,355 ) (15,846 ) Segment profit 22,710 18,314 41,467 36,503 Total Multifamily Property revenue 12,622 11,023 25,046 18,914 Property expense (5,020 ) (4,082 ) (10,017 ) (7,293 ) Segment profit 7,602 6,941 15,029 11,621 Total Mixed-Use Property revenue 14,934 14,770 30,315 29,890 Property expense (9,010 ) (8,824 ) (18,155 ) (18,516 ) Segment profit 5,924 5,946 12,160 11,374 Total segments’ profit $ 55,513 $ 49,361 $ 107,279 $ 95,758 |
Reconciliation of segment profit to net income attributable to stockholders | The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total segments’ profit $ 55,513 $ 49,361 $ 107,279 $ 95,758 General and administrative (5,396 ) (5,131 ) (10,963 ) (10,213 ) Depreciation and amortization (32,868 ) (24,182 ) (66,147 ) (42,168 ) Interest expense (12,688 ) (12,652 ) (26,508 ) (25,983 ) Other income, net (148 ) 192 61 502 Net income 4,413 7,588 3,722 17,896 Net income attributable to restricted shares (216 ) (61 ) (144 ) (121 ) Net income attributable to unitholders in the Operating Partnership (1,125 ) (2,008 ) (959 ) (4,869 ) Net income attributable to American Assets Trust, Inc. stockholders $ 3,072 $ 5,519 $ 2,619 $ 12,906 |
Net real estate and secured note payable balances by segments | The following table shows net real estate and secured note payable balances for each of the segments (in thousands): June 30, 2018 December 31, 2017 Net Real Estate Retail $ 630,860 $ 658,654 Office 806,336 813,121 Multifamily 418,173 424,044 Mixed-Use 178,625 180,888 $ 2,033,994 $ 2,076,707 Secured Notes Payable (1) Retail $ 35,375 $ 35,737 Office 170,038 170,408 Multifamily — 73,744 Mixed-Use — — $ 205,413 $ 279,889 (1) Excludes debt issuance costs of $0.3 million for each of the periods ending June 30, 2018 and December 31, 2017 , respectively. |
Capital expenditures for each segment | Capital expenditures for each segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Capital Expenditures (1) Retail $ 3,228 $ 2,800 $ 5,457 $ 4,046 Office 7,513 8,800 14,886 15,160 Multifamily 875 2,109 2,484 2,568 Mixed-Use 429 113 583 203 $ 12,045 $ 13,822 $ 23,410 $ 21,977 (1) Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)EmployeeSegmentRoomProperty | |
Accounting Policies [Abstract] | |
Number of employees | Employee | 193 |
Office, retail, multifamily, and mixed-use operating properties | 26 |
Properties held for development | 4 |
Number of operating segments | Segment | 4 |
Room in mixed-use segment all-suite hotel | Room | 369 |
Future minimum lease obligations | $ | $ 36,707 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplement Disclosures Related to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Total interest costs incurred | $ 27,419 | $ 26,730 | ||
Interest capitalized | 911 | 747 | ||
Interest expense | $ 12,688 | $ 12,652 | 26,508 | 25,983 |
Cash paid for interest, net of amounts capitalized | 26,926 | 21,984 | ||
Cash paid for income taxes | 337 | 296 | ||
Accounts payable and accrued liabilities for construction in progress | (1,192) | 2,113 | ||
Accrued leasing commissions | 1,040 | 498 | ||
Reduction to capital for prepaid offering costs | $ 236 | $ 69 |
ACQUIRED IN-PLACE LEASES AND 39
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES Acquired Lease Intangibles and Leasing Costs Included in Other Assets and Other Liabilities and Deferred Credits (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | $ 792 | $ 1,178 |
Other intangible assets, accumulated amortization | (1,100) | (1,115) |
Below market leases | 67,348 | 67,423 |
Below market leases, accumulated amortization | (38,991) | (37,241) |
Acquired lease intangible liabilities, net | 28,357 | 30,182 |
Leases, Acquired-in-Place | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | 44,500 | 54,206 |
Other intangible assets, accumulated amortization | (37,269) | (45,835) |
Above Market Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired above market leases, net | 15,525 | 21,262 |
Other intangible assets, accumulated amortization | (14,733) | (20,084) |
Lease Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | $ 8,023 | $ 9,549 |
FAIR VALUE OF FINANCIAL INSTR40
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Inputs, Level 2 | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value assumptions, interest rate | 3.90% |
Maximum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value assumptions, interest rate | 5.00% |
FAIR VALUE OF FINANCIAL INSTR41
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Liabilities Fair Value Measurement on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | $ 1,287 | $ 1,156 |
Interest rate swap asset | 8,818 | 5,091 |
Interest rate swap liability | 0 | 10 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 1,287 | 1,156 |
Interest rate swap asset | 8,818 | 5,091 |
Interest rate swap liability | 0 | 10 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR42
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Secured notes payable, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 205,155 | $ 279,550 |
Unsecured term loans, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 248,541 | 248,839 |
Unsecured term loans, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 250,000 | 250,000 |
Unsecured senior guaranteed notes, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 796,865 | 796,631 |
Unsecured line of credit, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 20,133 | 0 |
Unsecured line of credit, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 22,000 | 0 |
Fair Value, Inputs, Level 2 | Secured notes payable, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 208,889 | 286,156 |
Fair Value, Inputs, Level 2 | Unsecured senior guaranteed notes, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 781,818 | $ 802,699 |
DERIVATIVE AND HEDGING ACTIVI43
DERIVATIVE AND HEDGING ACTIVITIES (Details) - Designated as Hedging Instrument - Cash Flow Hedging - American Assets Trust, L.P. | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Interest Rate Swap, 1/9/2019 | Bank of America, N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 100,000,000 |
Effective Date | Jan. 9, 2014 |
Maturity Date | Jan. 9, 2019 |
Interest rate swap asset | $ 236,000 |
Interest Rate Swap, 3/1/2023 | U.S. Bank N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 100,000,000 |
Effective Date | Mar. 1, 2016 |
Maturity Date | Mar. 1, 2023 |
Interest rate swap asset | $ 5,693,000 |
Interest Rate Swap, 3/1/2023 | Wells Fargo Bank, N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 50,000,000 |
Effective Date | May 2, 2016 |
Maturity Date | Mar. 1, 2023 |
Interest rate swap asset | $ 2,889,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Leasing commissions, net of accumulated amortization of $29,348 and $28,318, respectively | $ 21,620 | $ 20,633 |
Interest rate swap asset | 8,818 | 5,091 |
Acquired above market leases, net | 792 | 1,178 |
Acquired in-place leases, net | 7,231 | 8,371 |
Lease incentives, net of accumulated amortization of $208 and $136, respectively | 1,057 | 916 |
Other intangible assets, net of accumulated amortization of $1,100 and $1,115, respectively | 202 | 227 |
Prepaid expenses and other | 5,214 | 5,945 |
Total other assets | 44,934 | 42,361 |
Leasing commissions, accumulative amortization | 29,348 | 28,318 |
Lease incentives, accumulated amortization | 208 | 136 |
Other intangible assets, accumulated amortization | $ 1,100 | $ 1,115 |
OTHER LIABILITIES AND DEFERRE45
OTHER LIABILITIES AND DEFERRED CREDITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Acquired below market leases, net | $ 28,357 | $ 30,182 |
Prepaid rent and deferred revenue | 9,545 | 8,429 |
Interest rate swap liability | 0 | 10 |
Deferred rent expense and lease intangible | 2,017 | 1,670 |
Deferred compensation | 1,287 | 1,156 |
Deferred tax liability | 117 | 123 |
Straight-line rent liability | 7,940 | 4,428 |
Other liabilities | 70 | 63 |
Total other liabilities and deferred credits, net | $ 49,333 | $ 46,061 |
DEBT - Summary of Total Secured
DEBT - Summary of Total Secured Notes Payable Outstanding (Details) - American Assets Trust, L.P. - Secured notes payable, net - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | $ 205,413 | $ 279,889 | |
Debt issuance costs, net | (258) | (339) | |
Total Debt Outstanding | $ 205,155 | 279,550 | |
Period of amortization schedule (in years) | 30 years | ||
Debt issuance costs, accumulated amortization | $ 828 | 1,191 | |
Loma Palisades | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [1],[2] | $ 0 | 73,744 |
Stated Interest Rate | [1],[2] | 6.09% | |
Stated Maturity Date | [1],[2] | Jul. 1, 2018 | |
One Beach Street | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [1] | $ 21,900 | 21,900 |
Stated Interest Rate | [1] | 3.94% | |
Stated Maturity Date | [1] | Apr. 1, 2019 | |
Torrey Reserve North Court | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [3] | $ 19,825 | 20,023 |
Stated Interest Rate | [3] | 7.22% | |
Stated Maturity Date | [3] | Jun. 1, 2019 | |
Torrey Reserve | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [3] | $ 6,700 | 6,764 |
Stated Interest Rate | [3] | 6.36% | |
Stated Maturity Date | [3] | Jun. 1, 2020 | |
Solana Beach Corporate Centre One To Two | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [3] | $ 10,613 | 10,721 |
Stated Interest Rate | [3] | 5.91% | |
Stated Maturity Date | [3] | Jun. 1, 2020 | |
Solana Beach Towne Centre | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [3] | $ 35,375 | 35,737 |
Stated Interest Rate | [3] | 5.91% | |
Stated Maturity Date | [3] | Jun. 1, 2020 | |
City Center Bellevue | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Principal Balance | [1] | $ 111,000 | $ 111,000 |
Stated Interest Rate | [1] | 3.98% | |
Stated Maturity Date | [1] | Nov. 1, 2022 | |
[1] | Interest only. | ||
[2] | Loan repaid in full, without premium or penalty, on March 30, 2018. | ||
[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. - USD ($) $ in Thousands | Jun. 23, 2017 | May 11, 2017 | Jan. 18, 2017 | Sep. 19, 2014 | Aug. 19, 2014 | Jun. 30, 2018 | Dec. 31, 2017 | |
Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative contract term | 7 years | |||||||
Gain on derivative settlement | $ 700 | $ 10,400 | $ 1,600 | |||||
Loss on derivative settlement | $ 500 | |||||||
Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Principal Balance | $ 1,050,000 | $ 1,050,000 | ||||||
Debt issuance costs, net | (4,594) | (4,530) | ||||||
Total Debt Outstanding | 1,045,406 | 1,045,470 | ||||||
Debt issuance costs, accumulated amortization | $ 6,387 | 5,866 | ||||||
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 | Jan. 9, 2019 | |||||||
Long-term Debt, Principal Balance | $ 100,000 | 100,000 | ||||||
Senior Guaranteed Notes, Series A | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.88% | |||||||
Senior Guaranteed Notes, Series A | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | [1] | 4.04% | ||||||
Stated Maturity Date | Oct. 31, 2021 | |||||||
Long-term Debt, Principal Balance | $ 150,000 | $ 150,000 | ||||||
Term Loan B | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 2.75% | 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 | $ 100,000 | ||||||
Term Loan C | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 2.74% | 3.14% | ||||||
Term Loan C | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Maturity Date | Mar. 1, 2023 | |||||||
Long-term Debt, Principal Balance | $ 50,000 | $ 50,000 | ||||||
Senior Guaranteed Notes, Series F | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.85% | |||||||
Senior Guaranteed Notes, Series F | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | [2] | 3.78% | ||||||
Stated Maturity Date | Jul. 19, 2024 | |||||||
Long-term Debt, Principal Balance | $ 100,000 | 100,000 | ||||||
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 | ||||||
Senior Guaranteed Notes, Series D | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.87% | |||||||
Senior Guaranteed Notes, Series D | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | [3] | 4.29% | ||||||
Stated Maturity Date | Mar. 1, 2027 | |||||||
Long-term Debt, Principal Balance | $ 250,000 | 250,000 | ||||||
Senior Guaranteed Notes, Series E | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 4.18% | |||||||
Senior Guaranteed Notes, Series E | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | [4] | 4.24% | ||||||
Stated Maturity Date | May 23, 2029 | |||||||
Long-term Debt, Principal Balance | $ 100,000 | $ 100,000 | ||||||
[1] | 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. | |||||||
[2] | The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum. | |||||||
[3] | The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million. The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum. | |||||||
[4] | The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum. |
DEBT (Details)
DEBT (Details) | Jan. 09, 2018USD ($)Extension_Option | Mar. 01, 2016 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Unsecured line of credit, net | $ 20,133,000 | $ 0 | ||
Weighted average interest rate, revolving credit facility | 3.01% | |||
Unsecured term loans, net | Term Loan B | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on federal funds rate | 0.50% | |||
Unsecured term loans, net | Term Loan B | Eurodollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on Eurodollar rate | 1.00% | |||
Unsecured term loans, net | Term Loan C | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on federal funds rate | 0.50% | |||
Unsecured term loans, net | Term Loan C | Eurodollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on Eurodollar rate | 1.00% | |||
Unsecured term loans, net | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
Unsecured line of credit, net | ||||
Debt Instrument [Line Items] | ||||
Minimum fixed charge coverage ratio covenant threshold | 1.5 | |||
Minimum unsecured leverage ratio | 175.00% | |||
Maximum leverage ratio of revolving credit facility | 60.00% | |||
Maximum secured leverage ratio on revolving credit facility | 40.00% | |||
Maximum unsecured leverage ratio | 60.00% | |||
Maximum recourse indebtedness of total asset value | 15.00% | |||
Unsecured line of credit, net | Second Amended and Restated Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on federal funds rate | 0.50% | |||
American Assets Trust, L.P. | ||||
Debt Instrument [Line Items] | ||||
Unsecured line of credit, net | $ 20,133,000 | $ 0 | ||
American Assets Trust, L.P. | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 7 years | |||
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. | Term Loan C | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 7 years | |||
American Assets Trust, L.P. | Term Loan C | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.70% | |||
American Assets Trust, L.P. | Term Loan C | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.35% | |||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 450,000,000 | |||
Additional borrowing capacity | $ 350,000,000 | |||
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] | ||||
Minimum base rate | 0.00% | |||
Prime rate | prime rate | |||
Federal funds rate | federal funds rate | |||
Eurodollar rate | Eurodollar | |||
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 | 1.20% | |||
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 | 1.70% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | 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 C | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Minimum base rate | 0.00% | |||
Prime rate | prime rate | |||
Federal funds rate | federal funds rate | |||
Eurodollar rate | Eurodollar | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.20% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Term Loan C | Maximum | 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 & Term Loan C | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 150,000,000 | |||
American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 100,000,000 | |||
American Assets Trust, L.P. | Unsecured term loans, net | Second Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.30% | |||
American Assets Trust, L.P. | Unsecured term loans, net | Second 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 | Second 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 | Second Amended and Restated Credit Facility | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.90% | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Unsecured line of credit, net | 22,000,000 | |||
Debt issuance costs, net, revolving credit facility | $ (1,900,000) | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 350,000,000 | |||
Debt extension options | Extension_Option | 2 | |||
Extension term | 6 months | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Prime rate | prime rate | |||
Federal funds rate | federal funds rate | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.05% | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Minimum | Base Rate | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.10% | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
American Assets Trust, L.P. | Unsecured line of credit, net | Second Amended and Restated Credit Facility | Maximum | Base Rate | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% |
PARTNERS CAPITAL OF AMERICAN 49
PARTNERS CAPITAL OF AMERICAN ASSETS TRUST, L.P. (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018shares | Jun. 30, 2017shares | Jun. 30, 2018shares | Jun. 30, 2017shares | |
Operating Partnership Units | ||||
Capital Unit [Line Items] | ||||
Antidilutive securities excluded from computation of EPS (in shares) | 266,260 | 232,047 | 267,367 | 232,073 |
American Assets Trust, L.P. | ||||
Capital Unit [Line Items] | ||||
Noncontrolling common units (in shares) | 17,177,608 | 17,177,608 | ||
Percentage of ownership interests classified as noncontrolling | 26.80% | 26.80% | ||
American Assets Trust, L.P. | Operating Partnership Units | ||||
Capital Unit [Line Items] | ||||
Antidilutive securities excluded from computation of EPS (in shares) | 266,260 | 232,047 | 267,367 | 232,073 |
Limited Partner | American Assets Trust, L.P. | ||||
Capital Unit [Line Items] | ||||
Common unit conversion ratio | 1 | |||
Common Shares | ||||
Capital Unit [Line Items] | ||||
Conversion of operating partnership units (in shares) | 17,372 | |||
Common Shares | American Assets Trust, L.P. | ||||
Capital Unit [Line Items] | ||||
Conversion of operating partnership units (in shares) | 17,372 |
EQUITY OF AMERICAN ASSETS TRU50
EQUITY OF AMERICAN ASSETS TRUST, INC. (Details) | Mar. 02, 2018Agent | May 27, 2015USD ($)Agent | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)shares |
Equity [Line Items] | ||||||
Noncash compensation expense | $ 700,000 | $ 600,000 | $ 1,500,000 | $ 1,300,000 | ||
Unrecognized compensation expense | $ 2,700,000 | $ 2,700,000 | ||||
Weighted average unvested shares outstanding (in shares) | shares | 266,260 | 232,047 | 267,367 | 232,073 | ||
At The Market Equity Program | ||||||
Equity [Line Items] | ||||||
Number of sales agents | Agent | 1 | 5 | ||||
Common shares issued (in shares) | shares | 0 | |||||
Aggregate offering price of common share | $ 250,000,000 | |||||
Remaining capacity to issue | $ 176,200,000 | $ 176,200,000 | ||||
Operating Partnership Units | ||||||
Equity [Line Items] | ||||||
Antidilutive securities excluded from computation of EPS (in shares) | shares | 266,260 | 232,047 | 267,367 | 232,073 |
EQUITY OF AMERICAN ASSETS TRU51
EQUITY OF AMERICAN ASSETS TRUST, INC. - Dividends Declare and Paid on Shares on Common Stock and Noncontrolling Common Units (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Dividends period | Second Quarter 2018 | First Quarter 2018 |
Amount per Share/Unit (in USD per unit) | $ 0.27 | $ 0.27 |
Date dividend to be paid | Jun. 28, 2018 | Mar. 29, 2018 |
EQUITY OF AMERICAN ASSETS TRU52
EQUITY OF AMERICAN ASSETS TRUST, INC. - Summary of Activity of Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2018$ / 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 | 268,768 |
Granted, Shares | shares | 5,320 |
Vested, Shares | shares | (6,719) |
Forfeited, Shares | shares | (3,312) |
Nonvested, End of year, shares | shares | 264,057 |
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 | $ 29.89 |
Granted, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 37.58 |
Vested, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 37.90 |
Forfeited, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 29.71 |
Nonvested, End of Year, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | $ 29.85 |
EQUITY OF AMERICAN ASSETS TRU53
EQUITY OF AMERICAN ASSETS TRUST, INC. - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Net income from operations | $ 4,413 | $ 7,588 | $ 3,722 | $ 17,896 |
Less: Net income attributable to restricted shares | (216) | (61) | (144) | (121) |
Less: Income from operations attributable to unitholders in the Operating Partnership | (1,125) | (2,008) | (959) | (4,869) |
Net income attributable to common stockholders—basic | 3,072 | 5,519 | 2,619 | 12,906 |
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | 3,072 | 5,519 | 2,619 | 12,906 |
Plus: Income from operations attributable to unitholders in the Operating Partnership | 1,125 | 2,008 | 959 | 4,869 |
Plus: Income from operations attributable to unitholders in the Operating Partnership-diluted | (1,125) | (2,008) | (959) | (4,869) |
Net income attributable to common stockholders-diluted | $ 4,197 | $ 7,527 | $ 3,578 | $ 17,775 |
Weighted average common shares outstanding-basic (in shares) | 46,939,449 | 46,871,377 | 46,937,645 | 46,524,510 |
Effect of dilutive securities-conversion of Operating Partnership units (in shares) | 17,193,071 | 17,217,704 | 17,194,020 | 17,551,409 |
Weighted average common shares outstanding - diluted (in shares) | 64,132,520 | 64,089,081 | 64,131,665 | 64,075,919 |
Earnings per common share, basic (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 |
Earnings per common share, diluted (in USD per share) | $ 0.07 | $ 0.12 | $ 0.06 | $ 0.28 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Deferred tax liability | $ 117 | $ 117 | $ 123 | ||
Income tax benefit (expense) | $ (171) | $ 79 | $ (106) | $ 242 |
COMMITMENTS AND CONTINGENCIES55
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)Extension_OptionPropertymo | Jun. 30, 2017 | |
Commitment And Contingencies [Line Items] | ||
Termination payment | $ | $ 7.6 | |
Number of consolidated properties located in Southern California | Property | 13 | |
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 | 31.70% | |
Total Revenues | Office | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by retail tenants | 34.90% | |
The Land Mark at One Market | ||
Commitment And Contingencies [Line Items] | ||
Number of lease extension options | Extension_Option | 2 | |
Years, lease extension options length (in years) | 5 years | |
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 | Jun. 30, 2018 | |
Operating Leased Assets [Line Items] | |||
2018 (six months ending December 31, 2018) | $ 1,655,000 | ||
2,019 | 3,347,000 | ||
2,020 | 3,422,000 | ||
2,021 | [1] | 3,460,000 | |
2,022 | 2,613,000 | ||
Thereafter | 22,210,000 | ||
Total | $ 36,707,000 | ||
Scenario, Forecast | The Land Mark at One Market | |||
Operating Leased Assets [Line Items] | |||
Stated future monthly lease rate | $ 217,744 | ||
[1] | Lease payments on the Annex Lease will be equal to fair rental value from July 2021 through the end of the extended lease term. In the table above, 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) | 6 Months Ended |
Jun. 30, 2018 | |
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 |
Operating leases rental period terms | 12 months |
OPERATING LEASES - Minimum Futu
OPERATING LEASES - Minimum Future Rentals from Noncancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
2018 (six months ending December 31, 2018) | $ 84,572 |
2,019 | 162,912 |
2,020 | 145,082 |
2,021 | 122,495 |
2,022 | 103,261 |
Thereafter | 278,047 |
Total | $ 896,369 |
COMPONENTS OF RENTAL INCOME A59
COMPONENTS OF RENTAL INCOME AND EXPENSE - Component of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Rental Income [Line Items] | ||||
Cost reimbursement | $ 8,491 | $ 8,128 | $ 16,833 | $ 16,016 |
Percentage rent | 355 | 456 | 791 | 911 |
Hotel revenue | 9,530 | 9,345 | 19,313 | 19,210 |
Other | 367 | 409 | 736 | 789 |
Total rental income | 76,892 | 72,925 | 153,093 | 142,965 |
Total Retail | ||||
Rental Income [Line Items] | ||||
Minimum rents | 19,548 | 18,544 | 39,202 | 37,078 |
Total Office | ||||
Rental Income [Line Items] | ||||
Minimum rents | 24,140 | 23,213 | 47,446 | 46,335 |
Total Multifamily | ||||
Rental Income [Line Items] | ||||
Minimum rents | 11,721 | 10,249 | 23,207 | 17,484 |
Total Mixed-Use | ||||
Rental Income [Line Items] | ||||
Minimum rents | $ 2,740 | $ 2,581 | $ 5,565 | $ 5,142 |
COMPONENTS OF RENTAL INCOME A60
COMPONENTS OF RENTAL INCOME AND EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ||||
Recognition of straight-line rents | $ (2.8) | $ (0.5) | $ (3.5) | $ (0.3) |
Recognition of amortization of above and below market leases | $ 0.7 | $ 0.9 | $ 1.4 | $ 1.7 |
COMPONENTS OF RENTAL INCOME A61
COMPONENTS OF RENTAL INCOME AND EXPENSE - Components of Rental Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | ||||
Rental operating | $ 8,742 | $ 8,437 | $ 17,402 | $ 16,510 |
Hotel operating | 5,995 | 5,746 | 12,027 | 12,297 |
Repairs and maintenance | 3,389 | 2,984 | 6,390 | 5,515 |
Marketing | 503 | 462 | 915 | 898 |
Rent | 806 | 794 | 1,600 | 1,551 |
Hawaii excise tax | 969 | 945 | 2,002 | 1,970 |
Management fees | 478 | 473 | 966 | 959 |
Total rental expenses | $ 20,882 | $ 19,841 | $ 41,302 | $ 39,700 |
OTHER INCOME, NET Components of
OTHER INCOME, NET Components of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Interest and investment income | $ 23 | $ 113 | $ 163 | $ 260 |
Income tax (expense) benefit | (171) | 79 | (106) | 242 |
Other non-operating income | 0 | 0 | 4 | 0 |
Total other income (expense), net | $ (148) | $ 192 | $ 61 | $ 502 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Jul. 01, 2017 | Jul. 01, 2016 | |
Related Party Transaction [Line Items] | |||||||
Total rental income | $ 76,892 | $ 72,925 | $ 153,093 | $ 142,965 | |||
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 | $ 500 | $ 500 | |||||
ICW Inc | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Prepaid Insurance | $ 200 | $ 200 | |||||
EDisability, LLC | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Lease term | 5 years | ||||||
Scenario, Forecast | EDisability, LLC | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Total rental income | $ 200 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 6 Months Ended |
Jun. 30, 2018SegmentRoom | |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
OPERATING INCOME | $ 17,249 | $ 20,048 | $ 30,169 | $ 43,377 |
Total Segments' profit | 55,513 | 49,361 | 107,279 | 95,758 |
Total Retail | ||||
Segment Reporting Information [Line Items] | ||||
Property revenue | 26,415 | 24,954 | 52,572 | 49,745 |
Property expense | (7,138) | (6,794) | (13,949) | (13,485) |
OPERATING INCOME | 19,277 | 18,160 | 38,623 | 36,260 |
Total Office | ||||
Segment Reporting Information [Line Items] | ||||
Property revenue | 31,052 | 26,359 | 57,822 | 52,349 |
Property expense | (8,342) | (8,045) | (16,355) | (15,846) |
OPERATING INCOME | 22,710 | 18,314 | 41,467 | 36,503 |
Total Multifamily | ||||
Segment Reporting Information [Line Items] | ||||
Property revenue | 12,622 | 11,023 | 25,046 | 18,914 |
Property expense | (5,020) | (4,082) | (10,017) | (7,293) |
OPERATING INCOME | 7,602 | 6,941 | 15,029 | 11,621 |
Total Mixed-Use | ||||
Segment Reporting Information [Line Items] | ||||
Property revenue | 14,934 | 14,770 | 30,315 | 29,890 |
Property expense | (9,010) | (8,824) | (18,155) | (18,516) |
OPERATING INCOME | $ 5,924 | $ 5,946 | $ 12,160 | $ 11,374 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Total Segments' profit | $ 55,513 | $ 49,361 | $ 107,279 | $ 95,758 |
General and administrative | (5,396) | (5,131) | (10,963) | (10,213) |
Depreciation and amortization | (32,868) | (24,182) | (66,147) | (42,168) |
Interest expense | 12,688 | 12,652 | 26,508 | 25,983 |
Other (expense) income, net | (148) | 192 | 61 | 502 |
NET INCOME | 4,413 | 7,588 | 3,722 | 17,896 |
Net income attributable to restricted shares | (216) | (61) | (144) | (121) |
Net income attributable to unitholders in the Operating Partnership | 1,125 | 2,008 | 959 | 4,869 |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 3,072 | $ 5,519 | $ 2,619 | $ 12,906 |
SEGMENT REPORTING - Net Real Es
SEGMENT REPORTING - Net Real Estate and Secured Note Payable Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net Real Estate | $ 2,033,994 | $ 2,076,707 | |
Secured Notes Payable | [1] | 205,413 | 279,889 |
American Assets Trust, L.P. | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 2,033,994 | 2,076,707 | |
Secured notes payable, net | American Assets Trust, L.P. | |||
Segment Reporting Information [Line Items] | |||
Debt issuance costs, net | 300 | 300 | |
Total Retail | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 630,860 | 658,654 | |
Secured Notes Payable | [1] | 35,375 | 35,737 |
Total Office | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 806,336 | 813,121 | |
Secured Notes Payable | [1] | 170,038 | 170,408 |
Total Multifamily | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 418,173 | 424,044 | |
Secured Notes Payable | [1] | 0 | 73,744 |
Total Mixed-Use | |||
Segment Reporting Information [Line Items] | |||
Net Real Estate | 178,625 | 180,888 | |
Secured Notes Payable | [1] | $ 0 | $ 0 |
[1] | Excludes debt issuance costs of $0.3 million for each of the periods ending June 30, 2018 and December 31, 2017, respectively. |
SEGMENT REPORTING - Capital Exp
SEGMENT REPORTING - Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | [1] | $ 12,045 | $ 13,822 | $ 23,410 | $ 21,977 |
Retail | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | [1] | 3,228 | 2,800 | 5,457 | 4,046 |
Office | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | [1] | 7,513 | 8,800 | 14,886 | 15,160 |
Multifamily | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | [1] | 875 | 2,109 | 2,484 | 2,568 |
Mixed-Use | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | [1] | $ 429 | $ 113 | $ 583 | $ 203 |
[1] | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid |