(American Assets Trust, Inc.) | (American Assets Trust, Inc.) | ||||||||||||||||
(American Assets Trust, L.P.) | (American Assets Trust, L.P.) | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | |||||||||||
Emerging growth company |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | |||||||||||
☒ | (Do not check if a smaller reporting company) | Smaller reporting company | ||||||||||||
Emerging growth company |
☐ |
Name of Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||
American Assets Trust, Inc. | |||||||||||
American Assets Trust, L.P. | None | None | None |
PART 1. FINANCIAL INFORMATION | |||||||||||
Item 1. | Financial Statements | ||||||||||
Consolidated Financial Statements of American Assets Trust, Inc.: | |||||||||||
Consolidated Financial Statements of American Assets Trust, L.P.: | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. OTHER INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
March 31, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Real estate, at cost | |||||||||||
Operating real estate | $ | $ | |||||||||
Construction in progress | |||||||||||
Held for development | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Real estate, net | |||||||||||
Cash and cash equivalents | |||||||||||
Accounts receivable, net | |||||||||||
Deferred rent receivables, net | |||||||||||
Other assets, net | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Secured notes payable, net | $ | $ | |||||||||
Unsecured notes payable, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Security deposits payable | |||||||||||
Other liabilities and deferred credits, net | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
EQUITY: | |||||||||||
American Assets Trust, Inc. stockholders’ equity | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated dividends in excess of net income | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total American Assets Trust, Inc. stockholders’ equity | |||||||||||
Noncontrolling interests | ( | ( | |||||||||
Total equity | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
REVENUE: | |||||||||||
Rental income | $ | $ | |||||||||
Other property income | |||||||||||
Total revenue | |||||||||||
EXPENSES: | |||||||||||
Rental expenses | |||||||||||
Real estate taxes | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total operating expenses | |||||||||||
OPERATING INCOME | |||||||||||
Interest expense | ( | ( | |||||||||
Loss on early extinguishment of debt | ( | ||||||||||
Other (expense) income, net | ( | ( | |||||||||
NET INCOME | |||||||||||
Net income attributable to restricted shares | ( | ( | |||||||||
Net income attributable to unitholders in the Operating Partnership | ( | ( | |||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ | $ | |||||||||
EARNINGS PER COMMON SHARE | |||||||||||
Earnings per common share, basic | $ | $ | |||||||||
Weighted average shares of common stock outstanding - basic | |||||||||||
Earnings per common share, diluted | $ | $ | |||||||||
Weighted average shares of common stock outstanding - diluted | |||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | $ | |||||||||
COMPREHENSIVE INCOME | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income - unrealized income on swap derivatives during the period | |||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | ( | ( | |||||||||
Reclassification of amortization of forward-starting swap realized gain included in loss on early extinguishment of debt | ( | ||||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to non-controlling interests | ( | ( | |||||||||
Comprehensive income attributable to American Assets Trust, Inc. | $ | $ |
American Assets Trust, Inc. Stockholders’ Equity | Noncontrolling Interests - Unitholders in the Operating Partnership | Total | |||||||||||||||||||||||||||||||||||||||
Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends declared and paid | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Other comprehensive gain - change in value of interest rate swaps | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests - Unitholders in the Operating Partnership | Total | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends declared and paid | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive gain - change in value of interest rate swaps | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap realized gains included in loss on early extinguishment of debt | — | $ | — | $ | — | $ | — | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred rent revenue and amortization of lease intangibles | ( | ( | |||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs and debt discounts | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Provision for uncollectable rental income | |||||||||||
Stock-based compensation expense | |||||||||||
Unearned rents | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Changes in operating assets and liabilities | |||||||||||
Change in accounts receivable | ( | ( | |||||||||
Change in other assets | |||||||||||
Change in accounts payable and accrued expenses | |||||||||||
Change in security deposits payable | |||||||||||
Change in other liabilities and deferred credits | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Leasing commissions | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Repayment of unsecured line of credit | ( | ||||||||||
Proceeds from unsecured notes payable | |||||||||||
Repayment of unsecured notes payable | ( | ||||||||||
Repayment of notes payable to affiliates | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Dividends paid to common stock and unitholders | ( | ( | |||||||||
Shares withheld for employee taxes | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ |
March 31, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Real estate, at cost | |||||||||||
Operating real estate | $ | $ | |||||||||
Construction in progress | |||||||||||
Held for development | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Real estate, net | |||||||||||
Cash and cash equivalents | |||||||||||
Accounts receivable, net | |||||||||||
Deferred rent receivables, net | |||||||||||
Other assets, net | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND CAPITAL | |||||||||||
LIABILITIES: | |||||||||||
Secured notes payable, net | $ | $ | |||||||||
Unsecured notes payable, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Security deposits payable | |||||||||||
Other liabilities and deferred credits, net | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
CAPITAL: | |||||||||||
Limited partners' capital, | ( | ( | |||||||||
General partner's capital, | |||||||||||
Accumulated other comprehensive income | |||||||||||
Total capital | |||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
REVENUE: | |||||||||||
Rental income | $ | $ | |||||||||
Other property income | |||||||||||
Total revenue | |||||||||||
EXPENSES: | |||||||||||
Rental expenses | |||||||||||
Real estate taxes | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total operating expenses | |||||||||||
OPERATING INCOME | |||||||||||
Interest expense | ( | ( | |||||||||
Loss on early extinguishment of debt | ( | ||||||||||
Other (expense) income, net | ( | ( | |||||||||
NET INCOME | |||||||||||
Net income attributable to restricted shares | ( | ( | |||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, L.P. | $ | $ | |||||||||
EARNINGS PER UNIT - BASIC | |||||||||||
Earnings per unit, basic | $ | $ | |||||||||
Weighted average units outstanding - basic | |||||||||||
EARNINGS PER UNIT - DILUTED | |||||||||||
Earnings per unit, diluted | $ | $ | |||||||||
Weighted average units outstanding - diluted | |||||||||||
DISTRIBUTIONS PER UNIT | $ | $ | |||||||||
COMPREHENSIVE INCOME | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss) - unrealized income (loss) on swap derivatives during the period | |||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | ( | ( | |||||||||
Reclassification of amortization of forward-starting swap realized gain included in loss on early extinguishment of debt | ( | ||||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to Limited Partners | ( | ( | |||||||||
Comprehensive income attributable to General Partner | $ | $ |
Limited Partners' Capital (1) | General Partner's Capital (2) | Accumulated Other Comprehensive Income (Loss) | Total Capital | ||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Forfeiture of restricted units | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Distributions | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Units withheld for employee taxes | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive gain - change in value of interest rate swap | — | — | — | — | |||||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||
Limited Partners' Capital (1) | General Partner's Capital (2) | Accumulated Other Comprehensive Income (Loss) | Total Capital | ||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Forfeiture of restricted units | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Distributions | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive gain - change in value of interest rate swap | — | — | — | — | |||||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap realized gains included in interest expense | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Reclassification of amortization of forward-starting swap included in loss on early extinguishment of debt | — | $ | — | — | $ | — | $ | ( | ( | ||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred rent revenue and amortization of lease intangibles | ( | ( | |||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs and debt discounts | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Provision for uncollectable rental income | |||||||||||
Stock-based compensation expense | |||||||||||
Unearned rents | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Changes in operating assets and liabilities | |||||||||||
Change in accounts receivable | ( | ( | |||||||||
Change in other assets | |||||||||||
Change in accounts payable and accrued expenses | |||||||||||
Change in security deposits payable | |||||||||||
Change in other liabilities and deferred credits | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Leasing commissions | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Repayment of unsecured line of credit | ( | ||||||||||
Proceeds from unsecured notes payable | |||||||||||
Repayment of unsecured notes payable | ( | ||||||||||
Debt issuance costs | ( | ( | |||||||||
Distributions | ( | ( | |||||||||
Shares withheld for employee taxes | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ |
Retail | ||||||||
Carmel Country Plaza | Gateway Marketplace | Alamo Quarry Market | ||||||
Carmel Mountain Plaza | Del Monte Center | Hassalo on Eighth - Retail | ||||||
South Bay Marketplace | Geary Marketplace | |||||||
Lomas Santa Fe Plaza | The Shops at Kalakaua | |||||||
Solana Beach Towne Centre | Waikele Center | |||||||
Office | ||||||||
La Jolla Commons | One Beach Street | Corporate Campus East III | ||||||
Torrey Reserve Campus | First & Main | Bel-Spring 520 | ||||||
Torrey Point | Lloyd Portfolio | |||||||
Solana Crossing | City Center Bellevue | |||||||
The Landmark at One Market | Eastgate Office Park | |||||||
Multifamily | ||||||||
Loma Palisades | Hassalo on Eighth - Residential | |||||||
Imperial Beach Gardens | ||||||||
Mariner's Point | ||||||||
Santa Fe Park RV Resort | ||||||||
Pacific Ridge Apartments | ||||||||
Mixed-Use | ||||||||
Waikiki Beach Walk Retail and Embassy Suites™ Hotel | ||||||||
Held for Development and/or Construction in Progress | ||||||||
La Jolla Commons – Land | ||||||||
Solana Crossing – Land | ||||||||
Lloyd Portfolio – Construction in Progress |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental cash flow information | |||||||||||
Total interest costs incurred | $ | $ | |||||||||
Interest capitalized | $ | $ | |||||||||
Interest expense | $ | $ | |||||||||
Cash paid for interest, net of amounts capitalized | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Accounts payable and accrued liabilities for construction in progress | $ | $ | |||||||||
Accrued leasing commissions | $ | $ | |||||||||
Bel-Spring 520 | |||||
Land | $ | ||||
Building | |||||
Land improvements | |||||
Furniture, fixtures, and equipment | |||||
Total real estate | |||||
Lease intangibles | |||||
Prepaid expenses and other assets | |||||
Assets acquired | $ | ||||
Accounts payable and accrued expenses | $ | ( | |||
Security deposits payable | ( | ||||
Other liabilities and deferred credits | ( | ||||
Liabilities assumed | $ | ( |
Bel-Spring 520 | |||||
Revenues | $ | ||||
Operating expenses | |||||
Operating loss | ( | ||||
Net loss attributable to American Assets Trust, Inc. | $ | ( |
March 31, 2022 | December 31, 2021 | ||||||||||
In-place leases | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Above market leases | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Acquired lease intangible assets, net | $ | $ | |||||||||
Below market leases | $ | $ | |||||||||
Accumulated accretion | ( | ( | |||||||||
Acquired lease intangible liabilities, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Deferred compensation liability | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Interest rate swap asset | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Interest rate swap liability | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Secured notes payable, net | $ | $ | $ | $ | |||||||||||||||||||
Unsecured term loans, net | $ | $ | $ | $ | |||||||||||||||||||
Unsecured senior guaranteed notes, net | $ | $ | $ | $ | |||||||||||||||||||
Senior unsecured notes, net | $ | $ | $ | $ | |||||||||||||||||||
Swap Counterparty | Notional Amount | Effective Date | Maturity Date | Fair Value | ||||||||||||||||||||||
U.S. Bank N.A. | $ | 3/1/2016 | 3/1/2023 | $ | ||||||||||||||||||||||
Wells Fargo Bank, N.A. | $ | 5/2/2016 | 3/1/2023 | $ | ||||||||||||||||||||||
Bank of America, N.A. | $ | 1/14/2022 | 1/5/2027 | $ | ||||||||||||||||||||||
Wells Fargo Bank, N.A. | $ | 1/14/2022 | 1/5/2027 | $ | ||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Leasing commissions, net of accumulated amortization of $ | $ | $ | |||||||||
Interest rate swap asset | |||||||||||
Acquired above market leases, net | |||||||||||
Acquired in-place leases, net | |||||||||||
Lease incentives, net of accumulated amortization of $ | |||||||||||
Other intangible assets, net of accumulated amortization of $ | |||||||||||
Debt issuance costs, net of accumulated amortization of $ | |||||||||||
Right-of-use lease asset, net | |||||||||||
Prepaid expenses and other | |||||||||||
Total other assets | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Acquired below market leases, net | $ | $ | |||||||||
Prepaid rent and deferred revenue | |||||||||||
Interest rate swap liability | |||||||||||
Deferred rent expense and lease intangible | |||||||||||
Deferred compensation | |||||||||||
Deferred tax liability | |||||||||||
Straight-line rent liability | |||||||||||
Lease liability | |||||||||||
Other liabilities | |||||||||||
Total other liabilities and deferred credits, net | $ | $ |
Principal Balance as of | Stated Interest Rate | Stated Maturity Date | |||||||||||||||||||||
Description of Debt | March 31, 2022 | December 31, 2021 | as of March 31, 2022 | ||||||||||||||||||||
City Center Bellevue (1) | $ | $ | % | November 1, 2022 | |||||||||||||||||||
Debt issuance costs, net of accumulated amortization of $ | ( | ( | |||||||||||||||||||||
Total Secured Notes Payable Outstanding | $ | $ |
Description of Debt | Principal Balance as of | Stated Interest Rate | Stated Maturity Date | ||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | as of March 31, 2022 | |||||||||||||||||||||||||||
Term Loan A | $ | $ | Variable | (1) | |||||||||||||||||||||||||
Term Loan B | Variable | (2) | |||||||||||||||||||||||||||
Term Loan C | Variable | (3) | |||||||||||||||||||||||||||
Senior Guaranteed Notes, Series F | % | (4) | |||||||||||||||||||||||||||
Senior Guaranteed Notes, Series B | % | ||||||||||||||||||||||||||||
Senior Guaranteed Notes, Series C | % | ||||||||||||||||||||||||||||
Senior Guaranteed Notes, Series D | % | (5) | |||||||||||||||||||||||||||
Senior Guaranteed Notes, Series E | % | (6) | |||||||||||||||||||||||||||
Senior Guaranteed Notes, Series G | % | (7) | |||||||||||||||||||||||||||
3.375% Senior Unsecured Notes | % | ||||||||||||||||||||||||||||
Debt discount and issuance costs, net of accumulated amortization of $ | ( | ( | |||||||||||||||||||||||||||
Total Unsecured Notes Payable | $ | $ |
Period | Amount per Share/Unit | Period Covered | Dividend Paid Date | |||||||||||||||||
First Quarter 2022 | $ | January 1, 2022 to March 31, 2022 | March 24, 2022 | |||||||||||||||||
Units | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested at March 31, 2022 | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
NUMERATOR | |||||||||||
Net income | $ | $ | |||||||||
Less: Net income attributable to restricted shares | ( | ( | |||||||||
Less: Income from operations attributable to unitholders in the Operating Partnership | ( | ( | |||||||||
Net income attributable to common stockholders—basic | $ | $ | |||||||||
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | $ | |||||||||
Plus: Income from operations attributable to unitholders in the Operating Partnership | |||||||||||
Net income attributable to common stockholders—diluted | $ | $ | |||||||||
DENOMINATOR | |||||||||||
Weighted average common shares outstanding—basic | |||||||||||
Effect of dilutive securities—conversion of Operating Partnership units | |||||||||||
Weighted average common shares outstanding—diluted | |||||||||||
Earnings per common share, basic | $ | $ | |||||||||
Earnings per common share, diluted | $ | $ |
Year Ending December 31, | |||||
2022 (nine months ending December 31, 2022) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Year Ending December 31, | |||||
2022 (nine months ending December 31, 2022) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total lease payments | |||||
Imputed interest | ( | ||||
Present value of lease liability | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost | |||||||||||
Sublease income | ( | ( | |||||||||
Total lease (income) cost | $ | $ | ( | ||||||||
Weighted-average remaining lease term - operating leases (in years) | |||||||||||
Weighted-average discount rate - operating leases | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating cash flow information: | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Lease rental income | |||||||||||
Office | $ | $ | |||||||||
Retail | |||||||||||
Multifamily | |||||||||||
Mixed-use | |||||||||||
Percentage rent | |||||||||||
Hotel revenue | |||||||||||
Other | |||||||||||
Total rental income | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Rental operating | $ | $ | |||||||||
Hotel operating | |||||||||||
Repairs and maintenance | |||||||||||
Marketing | |||||||||||
Rent | |||||||||||
Hawaii excise tax | |||||||||||
Management fees | |||||||||||
Total rental expenses | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Interest and investment income | $ | $ | |||||||||
Income tax expense | ( | ( | |||||||||
Other non-operating expense | |||||||||||
Total other (expense) income, net | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Total Office | |||||||||||
Property revenue | $ | $ | |||||||||
Property expense | ( | ( | |||||||||
Segment profit | |||||||||||
Total Retail | |||||||||||
Property revenue | |||||||||||
Property expense | ( | ( | |||||||||
Segment profit | |||||||||||
Total Multifamily | |||||||||||
Property revenue | |||||||||||
Property expense | ( | ( | |||||||||
Segment profit | |||||||||||
Total Mixed-Use | |||||||||||
Property revenue | |||||||||||
Property expense | ( | ( | |||||||||
Segment profit | ( | ||||||||||
Total segments’ profit | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Total segments’ profit | $ | $ | |||||||||
General and administrative | ( | ( | |||||||||
Depreciation and amortization | ( | ( | |||||||||
Interest expense | ( | ( | |||||||||
Loss on early extinguishment of debt | ( | ||||||||||
Other income (expense), net | ( | ( | |||||||||
Net income | |||||||||||
Net income attributable to restricted shares | ( | ( | |||||||||
Net income attributable to unitholders in the Operating Partnership | ( | ( | |||||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Net Real Estate | |||||||||||
Office | $ | $ | |||||||||
Retail | |||||||||||
Multifamily | |||||||||||
Mixed-Use | |||||||||||
$ | $ | ||||||||||
Secured Notes Payable (1) | |||||||||||
Office | $ | $ | |||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Capital Expenditures (1) | |||||||||||
Office | $ | $ | |||||||||
Retail | |||||||||||
Multifamily | |||||||||||
Mixed-Use | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Same-Store | 27 | 25 | |||||||||
Non-Same-Store | 4 | 3 | |||||||||
Total Properties | 31 | 28 | |||||||||
Redevelopment Same-Store | 28 | 27 | |||||||||
Total Development Properties | 3 | 3 |
Three Months Ended March 31, | Change | % | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental income | $ | 96,986 | $ | 81,130 | $ | 15,856 | 20 | % | |||||||||||||||
Other property income | 4,484 | 2,856 | 1,628 | 57 | |||||||||||||||||||
Total property revenues | 101,470 | 83,986 | 17,484 | 21 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Rental expenses | 24,145 | 18,246 | 5,899 | 32 | |||||||||||||||||||
Real estate taxes | 11,429 | 11,354 | 75 | 1 | |||||||||||||||||||
Total property expenses | 35,574 | 29,600 | 5,974 | 20 | |||||||||||||||||||
Total property income | 65,896 | 54,386 | 11,510 | 21 | |||||||||||||||||||
General and administrative | (7,142) | (6,823) | (319) | 5 | |||||||||||||||||||
Depreciation and amortization | (30,412) | (27,501) | (2,911) | 11 | |||||||||||||||||||
Interest expense | (14,666) | (14,005) | (661) | 5 | |||||||||||||||||||
Loss on early extinguishment of debt | — | (4,271) | 4,271 | — | |||||||||||||||||||
Other (expense) income, net | (162) | (53) | (109) | 206 | |||||||||||||||||||
Net income | 13,514 | 1,733 | 11,781 | 680 | |||||||||||||||||||
Net income attributable to restricted shares | (155) | (137) | (18) | 13 | |||||||||||||||||||
Net income attributable to unitholders in the Operating Partnership | (2,836) | (339) | (2,497) | 737 | |||||||||||||||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 10,523 | $ | 1,257 | $ | 9,266 | 737 | % |
Percentage Leased(1) | |||||||||||
March 31, | |||||||||||
2022 | 2021 | ||||||||||
Office | 91.5 | % | 91.4 | % | |||||||
Retail | 92.2 | % | 90.8 | % | |||||||
Multifamily | 94.8 | % | 91.9 | % | |||||||
Mixed-Use (2) | 94.3 | % | 88.2 | % |
Total Portfolio | Same-Store Portfolio(1) | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | % | Three Months Ended March 31, | Change | % | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Office | $ | 48,411 | $ | 43,636 | $ | 4,775 | 11 | $ | 44,132 | $ | 43,418 | $ | 714 | 2 | |||||||||||||||||||||||||||||||||
Retail | 24,517 | 21,484 | 3,033 | 14 | 24,517 | 21,484 | 3,033 | 14 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 12,974 | 11,815 | 1,159 | 10 | 12,974 | 11,815 | 1,159 | 10 | |||||||||||||||||||||||||||||||||||||||
Mixed-Use | 11,084 | 4,195 | 6,889 | 164 | 11,084 | 4,195 | 6,889 | — | |||||||||||||||||||||||||||||||||||||||
$ | 96,986 | $ | 81,130 | $ | 15,856 | 20 | % | $ | 92,707 | $ | 80,912 | $ | 11,795 | 15 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | % | Three Months Ended March 31, | Change | % | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Office | $ | 1,158 | $ | 828 | $ | 330 | 40 | $ | 1,087 | $ | 803 | $ | 284 | 35 | |||||||||||||||||||||||||||||||||
Retail | 324 | 290 | 34 | 12 | 324 | 290 | 34 | 12 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 915 | 737 | 178 | 24 | 915 | 737 | 178 | 24 | |||||||||||||||||||||||||||||||||||||||
Mixed-Use | 2,087 | 1,001 | 1,086 | 108 | 2,087 | 1,001 | 1,086 | — | |||||||||||||||||||||||||||||||||||||||
$ | 4,484 | $ | 2,856 | $ | 1,628 | 57 | % | $ | 4,413 | $ | 2,831 | $ | 1,582 | 56 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | % | Three Months Ended March 31, | Change | % | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Office | $ | 8,240 | $ | 6,682 | $ | 1,558 | 23 | $ | 7,245 | $ | 6,473 | $ | 772 | 12 | |||||||||||||||||||||||||||||||||
Retail | 4,004 | 3,527 | 477 | 14 | 4,004 | 3,527 | 477 | 14 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 4,315 | 3,786 | 529 | 14 | 4,315 | 3,786 | 529 | 14 | |||||||||||||||||||||||||||||||||||||||
Mixed-Use | 7,586 | 4,251 | 3,335 | 78 | 7,586 | 4,251 | 3,335 | — | |||||||||||||||||||||||||||||||||||||||
$ | 24,145 | $ | 18,246 | $ | 5,899 | 32 | % | $ | 23,150 | $ | 18,037 | $ | 5,113 | 28 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | % | Three Months Ended March 31, | Change | % | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Office | $ | 5,090 | $ | 4,682 | $ | 408 | 9 | $ | 4,719 | $ | 4,624 | $ | 95 | 2 | |||||||||||||||||||||||||||||||||
Retail | 3,724 | 3,915 | (191) | (5) | 3,724 | 3,915 | (191) | (5) | |||||||||||||||||||||||||||||||||||||||
Multifamily | 1,764 | 1,705 | 59 | 3 | 1,764 | 1,705 | 59 | 3 | |||||||||||||||||||||||||||||||||||||||
Mixed-Use | 851 | 1,052 | (201) | (19) | 851 | 1,052 | (201) | — | |||||||||||||||||||||||||||||||||||||||
$ | 11,429 | $ | 11,354 | $ | 75 | 1 | % | $ | 11,058 | $ | 11,296 | $ | (238) | (2) | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | % | Three Months Ended March 31, | Change | % | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Office | $ | 36,239 | $ | 33,100 | $ | 3,139 | 9 | $ | 33,255 | $ | 33,124 | $ | 131 | — | |||||||||||||||||||||||||||||||||
Retail | 17,113 | 14,332 | 2,781 | 19 | 17,113 | 14,332 | 2,781 | 19 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 7,810 | 7,061 | 749 | 11 | 7,810 | 7,061 | 749 | 11 | |||||||||||||||||||||||||||||||||||||||
Mixed-Use | 4,734 | (107) | 4,841 | (4,524) | 4,734 | (107) | 4,841 | (4,524) | |||||||||||||||||||||||||||||||||||||||
$ | 65,896 | $ | 54,386 | $ | 11,510 | 21 | % | $ | 62,912 | $ | 54,410 | $ | 8,502 | 16 | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net operating income | $ | 65,896 | $ | 54,386 | |||||||
General and administrative | (7,142) | (6,823) | |||||||||
Depreciation and amortization | (30,412) | (27,501) | |||||||||
Interest expense | (14,666) | (14,005) | |||||||||
Loss on early extinguishment of debt | — | (4,271) | |||||||||
Other (expense) income, net | (162) | (53) | |||||||||
Net income | $ | 13,514 | $ | 1,733 |
Three Months Ended March 31, | |||||
2022 | |||||
Funds from Operations (FFO) | |||||
Net income | $ | 13,514 | |||
Plus: Real estate depreciation and amortization | 30,412 | ||||
Funds from operations | 43,926 | ||||
Less: Nonforfeitable dividends on incentive restricted stock awards | (153) | ||||
FFO attributable to common stock and units | $ | 43,773 | |||
FFO per diluted share/unit | $ | 0.57 | |||
Weighted average number of common shares and units, diluted (1) | 76,224,367 |
Exhibit No. | Description | |||||||
10.1 (1) | ||||||||
31.1* | ||||||||
31.2* | ||||||||
31.3* | ||||||||
31.4* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
American Assets Trust, Inc. | American Assets Trust, L.P. | |||||||||||||
By: American Assets Trust, Inc. | ||||||||||||||
Its: General Partner | ||||||||||||||
/s/ ERNEST RADY | /s/ ERNEST RADY | |||||||||||||
Ernest Rady | Ernest Rady | |||||||||||||
Chairman and Chief Executive Officer | Chairman and Chief Executive Officer | |||||||||||||
(Principal Executive Officer) | (Principal Executive Officer) | |||||||||||||
/s/ ROBERT F. BARTON | /s/ ROBERT F. BARTON | |||||||||||||
Robert F. Barton | Robert F. Barton | |||||||||||||
Executive Vice President, Chief Financial Officer | Executive Vice President, Chief Financial Officer | |||||||||||||
(Principal Financial and Accounting Officer) | (Principal Financial and Accounting Officer) | |||||||||||||
Date: | April 29, 2022 | Date: | April 29, 2022 |
Date: | April 29, 2022 | /s/ ERNEST RADY | ||||||
Ernest Rady | ||||||||
Chairman and Chief Executive Officer |
Date: | April 29, 2022 | /s/ ERNEST RADY | ||||||
Ernest Rady | ||||||||
Chairman and Chief Executive Officer |
Date: | April 29, 2022 | /s/ ROBERT F. BARTON | ||||||
Robert F. Barton | ||||||||
EVP and Chief Financial Officer |
Date: | April 29, 2022 | /s/ ROBERT F. BARTON | ||||||
Robert F. Barton | ||||||||
EVP and Chief Financial Officer |
/s/ ERNEST RADY | ||
Ernest Rady | ||
Chairman and Chief Executive Officer | ||
/s/ ROBERT F. BARTON | ||
Robert F. Barton | ||
EVP and Chief Financial Officer |
/s/ ERNEST RADY | ||
Ernest Rady | ||
Chairman and Chief Executive Officer | ||
/s/ ROBERT F. BARTON | ||
Robert F. Barton | ||
EVP and Chief Financial Officer |
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Consolidated Statement of Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Interest Expense |
Early Extinguishment of Debt |
Common Shares |
Additional Paid-in Capital |
Accumulated Dividends in Excess of Net Income |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Interest Expense
|
Accumulated Other Comprehensive Income (Loss)
Early Extinguishment of Debt
|
Noncontrolling Interests - Unitholders in the Operating Partnership |
Noncontrolling Interests - Unitholders in the Operating Partnership
Interest Expense
|
Noncontrolling Interests - Unitholders in the Operating Partnership
Early Extinguishment of Debt
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance (shares) at Dec. 31, 2020 | 60,476,292 | |||||||||||
Beginning Balance at Dec. 31, 2020 | $ 1,253,406 | $ 605 | $ 1,445,644 | $ (176,560) | $ 1,753 | $ (18,036) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,733 | 1,394 | 339 | |||||||||
Forfeiture of restricted stock (shares) | (4,006) | |||||||||||
Dividends declared and paid | (21,463) | (16,932) | ||||||||||
Dividends declared and paid (noncontrolling interest) | (4,531) | |||||||||||
Stock-based compensation | 1,484 | 1,484 | ||||||||||
Other comprehensive gain - change in value of interest rate swaps | 747 | 579 | 168 | |||||||||
Reclassification of amortization of forward-starting swap realized gain | $ (275) | $ (193) | $ (216) | $ (152) | $ (59) | $ (41) | ||||||
Ending Balance (shares) at Mar. 31, 2021 | 60,472,286 | |||||||||||
Ending Balance at Mar. 31, 2021 | $ 1,235,439 | $ 605 | 1,447,128 | (192,098) | 1,964 | (22,160) | ||||||
Beginning Balance (shares) at Dec. 31, 2021 | 60,525,580 | 60,525,580 | ||||||||||
Beginning Balance at Dec. 31, 2021 | $ 1,210,123 | $ 605 | 1,453,272 | (217,785) | 2,872 | (28,841) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 13,514 | 10,678 | 2,836 | |||||||||
Forfeiture of restricted stock (shares) | (3,121) | |||||||||||
Dividends declared and paid | (24,545) | (19,367) | ||||||||||
Dividends declared and paid (noncontrolling interest) | (5,178) | |||||||||||
Stock-based compensation | 1,489 | 1,489 | ||||||||||
Shares withheld for employee taxes (shares) | (416) | |||||||||||
Shares withheld for employee taxes | (15) | $ 0 | (15) | |||||||||
Other comprehensive gain - change in value of interest rate swaps | $ 5,596 | 4,408 | 1,188 | |||||||||
Reclassification of amortization of forward-starting swap realized gain | $ (275) | $ 0 | $ (217) | $ (58) | ||||||||
Ending Balance (shares) at Mar. 31, 2022 | 60,522,043 | 60,522,043 | ||||||||||
Ending Balance at Mar. 31, 2022 | $ 1,205,887 | $ 605 | $ 1,454,746 | $ (226,474) | $ 7,063 | $ (30,053) |
Consolidated Statement of Partners' Capital (Unaudited) - LP - USD ($) $ in Thousands |
Total |
Interest Expense |
Early Extinguishment of Debt |
American Assets Trust, L.P. |
American Assets Trust, L.P.
Interest Expense
|
American Assets Trust, L.P.
Early Extinguishment of Debt
|
American Assets Trust, L.P.
Accumulated Other Comprehensive Income (Loss)
|
American Assets Trust, L.P.
Accumulated Other Comprehensive Income (Loss)
Interest Expense
|
American Assets Trust, L.P.
Accumulated Other Comprehensive Income (Loss)
Early Extinguishment of Debt
|
American Assets Trust, L.P.
Limited Partner
|
[1] |
American Assets Trust, L.P.
General Partner
|
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning partners' capital account (shares) at Dec. 31, 2020 | 16,181,537 | 60,476,292 | [2] | ||||||||||||||
Beginning partners' capital account at Dec. 31, 2020 | $ 1,253,406 | $ 2,737 | $ (19,020) | $ 1,269,689 | [2] | ||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||
Net income | $ 1,733 | 1,733 | 339 | $ 1,394 | [2] | ||||||||||||
Forfeiture of restricted units (in shares) | [2] | (4,006) | |||||||||||||||
Distributions | (21,463) | $ (4,531) | $ (16,932) | [2] | |||||||||||||
Stock-based compensation | 1,484 | $ 1,484 | [2] | ||||||||||||||
Other comprehensive gain - change in value of interest rate swaps | 747 | 747 | 747 | ||||||||||||||
Reclassification of amortization of forward-starting swap realized gain | $ (275) | $ (193) | $ (275) | $ (193) | $ (275) | $ (193) | |||||||||||
Ending partners' capital account (shares) at Mar. 31, 2021 | 16,181,537 | 60,472,286 | [2] | ||||||||||||||
Ending partners' capital account at Mar. 31, 2021 | 1,235,439 | 3,016 | $ (23,212) | $ 1,255,635 | [2] | ||||||||||||
Beginning partners' capital account (shares) at Dec. 31, 2021 | 16,181,537 | 60,525,580 | [2] | ||||||||||||||
Beginning partners' capital account at Dec. 31, 2021 | 1,210,123 | 4,169 | $ (30,138) | $ 1,236,092 | [2] | ||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||
Net income | 13,514 | 13,514 | 2,836 | $ 10,678 | [2] | ||||||||||||
Forfeiture of restricted units (in shares) | [2] | (3,121) | |||||||||||||||
Distributions | (24,545) | $ (5,178) | $ (19,367) | [2] | |||||||||||||
Stock-based compensation | 1,489 | $ 1,489 | [2] | ||||||||||||||
Shares withheld for employee taxes (shares) | [2] | (416) | |||||||||||||||
Shares withheld for employee taxes | (15) | (15) | $ (15) | [2] | |||||||||||||
Other comprehensive gain - change in value of interest rate swaps | $ 5,596 | 5,596 | 5,596 | ||||||||||||||
Reclassification of amortization of forward-starting swap realized gain | $ (275) | $ 0 | $ (275) | $ 0 | $ (275) | ||||||||||||
Ending partners' capital account (shares) at Mar. 31, 2022 | 16,181,537 | 60,522,043 | [2] | ||||||||||||||
Ending partners' capital account at Mar. 31, 2022 | $ 1,205,887 | $ 9,490 | $ (32,480) | $ 1,228,877 | [2] | ||||||||||||
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Consolidated Statements of Cash Flows (Unaudited) - LP $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022
USD ($)
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Mar. 31, 2021
USD ($)
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OPERATING ACTIVITIES | ||
Net income | $ 13,514 | $ 1,733 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | (4,508) | (6,292) |
Depreciation and amortization | 30,412 | 27,501 |
Amortization of debt issuance costs and debt discounts | 640 | 577 |
Loss on early extinguishment of debt | 0 | 4,271 |
Provision for uncollectable rental income | 92 | 3,213 |
Stock-based compensation expense | 1,489 | 1,484 |
Unearned rents | (3,758) | (193) |
Other, net | (280) | (50) |
Changes in operating assets and liabilities | ||
Change in accounts receivable | (517) | (1,841) |
Change in other assets | 50 | 651 |
Change in accounts payable and accrued expenses | 1,776 | 11,098 |
Change in security deposits payable | 237 | 39 |
Change in other liabilities and deferred credits | 2 | 314 |
Net cash provided by operating activities | 39,149 | 42,505 |
INVESTING ACTIVITIES | ||
Acquisition of real estate | (45,167) | 0 |
Capital expenditures | (29,829) | (11,372) |
Leasing commissions | (2,299) | (844) |
Net cash used in investing activities | (77,295) | (12,216) |
FINANCING ACTIVITIES | ||
Repayment of unsecured line of credit | 0 | (100,000) |
Proceeds from unsecured notes payable | 0 | 494,675 |
Repayment of unsecured notes payable | 0 | (155,375) |
Debt issuance costs | (3,245) | (5,025) |
Dividends paid to common stock and unitholders | (24,545) | (21,463) |
Shares withheld for employee taxes | (15) | 0 |
Net cash (used in) provided by financing activities | (27,805) | 212,812 |
Net (decrease) increase in cash and cash equivalents | (65,951) | 243,101 |
Cash, cash equivalents and restricted cash, beginning of period | 139,524 | 139,049 |
Cash, cash equivalents and restricted cash, end of period | 73,573 | 382,150 |
Cash and cash equivalents | 73,573 | 380,434 |
Restricted cash | 0 | 1,716 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 73,573 | 382,150 |
American Assets Trust, L.P. | ||
OPERATING ACTIVITIES | ||
Net income | 13,514 | 1,733 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred rent revenue and amortization of lease intangibles | (4,508) | (6,292) |
Depreciation and amortization | 30,412 | 27,501 |
Amortization of debt issuance costs and debt discounts | 640 | 577 |
Loss on early extinguishment of debt | 0 | 4,271 |
Provision for uncollectable rental income | 92 | 3,213 |
Stock-based compensation expense | 1,489 | 1,484 |
Unearned rents | (3,758) | (193) |
Other, net | (280) | (50) |
Changes in operating assets and liabilities | ||
Change in accounts receivable | (517) | (1,841) |
Change in other assets | 50 | 651 |
Change in accounts payable and accrued expenses | 1,776 | 11,098 |
Change in security deposits payable | 237 | 39 |
Change in other liabilities and deferred credits | 2 | 314 |
Net cash provided by operating activities | 39,149 | 42,505 |
INVESTING ACTIVITIES | ||
Acquisition of real estate | (45,167) | 0 |
Capital expenditures | (29,829) | (11,372) |
Leasing commissions | (2,299) | (844) |
Net cash used in investing activities | (77,295) | (12,216) |
FINANCING ACTIVITIES | ||
Repayment of unsecured line of credit | 0 | (100,000) |
Proceeds from unsecured notes payable | 0 | 494,675 |
Repayment of unsecured notes payable | 0 | (155,375) |
Debt issuance costs | (3,245) | (5,025) |
Dividends paid to common stock and unitholders | (24,545) | (21,463) |
Shares withheld for employee taxes | (15) | 0 |
Net cash (used in) provided by financing activities | (27,805) | 212,812 |
Net (decrease) increase in cash and cash equivalents | (65,951) | 243,101 |
Cash, cash equivalents and restricted cash, beginning of period | 139,524 | 139,049 |
Cash, cash equivalents and restricted cash, end of period | 73,573 | 382,150 |
Cash and cash equivalents | 73,573 | 380,434 |
Restricted cash | 0 | 1,716 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 73,573 | $ 382,150 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Statement of Financial Position [Abstract] | ||
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 (shares) | 60,522,043 | 60,525,580 |
Common stock, shares issued (in shares) | 60,522,043 | 60,525,580 |
Consolidated Balance Sheets - LP (Parenthetical) - American Assets Trust, L.P. - shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Limited partners' capital, units outstanding (in shares) | 16,181,537 | 16,181,537 |
Limited partners' capital, units issued (in shares) | 16,181,537 | 16,181,537 |
General partners' capital, units issued (in shares) | 60,522,043 | 60,525,580 |
General partners' capital, units outstanding (in shares) | 60,522,043 | 60,525,580 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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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 207 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. As of March 31, 2022, we owned or had a controlling interest in 31 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of March 31, 2022, we owned land at three of our properties that we classify as held for development and/or construction in progress. A summary of the properties owned by us is as follows:
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. The Company follows the Financial Accounting Standards Board (the "FASB") guidance for determining whether an entity is a variable interest entity (“VIE”) and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. American Assets Trust, Inc. has concluded that the Operating Partnership is a VIE, and because American Assets Trust, Inc. has both the power and the rights to control the Operating Partnership, American Assets Trust, Inc. is the primary beneficiary and is required to continue to consolidate the Operating Partnership. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. All 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, 2021. 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):
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, 2021. There have been no changes to our significant accounting policies during the three months ended March 31, 2022. Segment Information Segment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel. Revenue Recognition and Accounts Receivable Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks. We make estimates of the collectability of our current accounts receivable and straight-line rents receivable which require significant judgment by management. The collectability of receivables is affected by numerous different factors including current economic conditions, the impact of tenant bankruptcies, the status of collectability of current cash rents receivable, tenants' recent and historical financial and operating results, changes in our tenants' credit ratings, communications between our operating personnel and tenants, the extent of security deposits and letters of credit held with respect to tenants, and the ability of tenants to perform under the terms of their lease agreement. The provision for doubtful accounts at March 31, 2022 and December 31, 2021 was approximately $4.4 million and $4.6 million, respectively. Rent Concessions – COVID-19 In 2021, we provided lease concessions to certain tenants, primarily within the retail segment, as a result of the COVID-19 pandemic, in the form of rent deferrals and abatements. These lease concessions generally included an increase in our rights as a lessor. We assess each lease concession and determine whether it represents a lease modifications under Accounting Standards Codification Topic 842, Leases ("ASC 842"). During the first quarter of 2022, we provided an immaterial amount of lease concessions to certain tenants that continued being impacted by the Covid-19 pandemic. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides companies with optional practical expedients to ease the accounting burden for contract modifications associated with transitioning away from LIBOR and other interbank offered rates that are expected to be discontinued as part of reference rate reform. For hedges, the guidance generally allows changes to the reference rate and other critical terms without having to de-designate the hedging relationship, and permits the shortcut method to continue to be applied. For contract modifications, changes in the reference rate or other critical terms will be treated as a continuation of the prior contract. This guidance can be applied immediately, however, it is generally only available through December 31, 2022. We are still evaluating the impact of reference rate reform and whether we will apply any of these practical expedients.
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REAL ESTATE |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | REAL ESTATE Property Asset Acquisitions On March 8, 2022, we acquired Bel-Spring 520 in Bellevue, Washington, consisting of an approximately 93,000 square feet, multi-tenant office campus. The purchase price was $45.5 million, less seller credits of approximately $0.1 million of future rent abatement, and approximately $0.6 million of contractual tenant improvements. Additionally, closing costs were approximately $0.1 million. The property was acquired with cash on hand. The financial information set forth below summarizes the Company’s purchase price allocation for Bel-Spring 520 during the three months ended March 31, 2022 (in thousands):
The value allocated to lease intangibles is amortized over the related lease term as depreciation and amortization expense in the statement of income. The remaining weighted average amortization period as of March 31, 2022, is 3.8. The following table summarizes the operating results for Bel-Spring 520 included in the Company's historical consolidated statement of operations for the period of acquisition through March 31, 2022 (in thousands):
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ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of March 31, 2022 and December 31, 2021 (in thousands):
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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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 The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We measure the fair value of our deferred compensation liability, which is included in other liabilities and deferred credits on the consolidated balance sheet, on a recurring basis using Level 2 inputs. We measure the fair value of this liability based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. The fair value of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contract at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income (loss) and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2022 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):
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 3.5% to 4.5%. 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):
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DERIVATIVE AND HEDGING ACTIVITIES |
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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 March 31, 2022 (dollars in thousands):
The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings for as long as hedged cash flows remain probable. During the next twelve months, we estimate the cash flow hedges in place will reduce interest expense by approximately $1.1 million.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.
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OTHER ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | OTHER ASSETS Other assets consist of the following (in thousands):
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OTHER LIABILITIES AND DEFERRED CREDITS |
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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):
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.
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DEBT |
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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, (iii) senior guaranteed notes, and (iv) senior unsecured notes. Additionally, American Assets Trust, Inc. has provided a carve-out guarantee on the property-level mortgage debt at City Center Bellevue. Debt of American Assets Trust, L.P. Secured notes payable The following table is a summary of our total secured notes payable outstanding as of March 31, 2022 and December 31, 2021 (in thousands):
(1)Interest only. Certain loans require the Operating Partnership to comply with various financial covenants. As of March 31, 2022, the Operating Partnership was in compliance with these financial covenants. Unsecured notes payable The following table is a summary of the Operating Partnership's total unsecured notes payable outstanding as of March 31, 2022 and December 31, 2021 (in thousands):
(1)The Operating Partnership has entered into two interest rate swap agreements that are intended to fix the interest rate associated with Term Loan A at approximately 2.70% through its maturity date, subject to adjustments based on our consolidated leverage ratio. (2)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan B is approximately 2.65%, subject to adjustments based on our consolidated leverage ratio. (3)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan C is approximately 2.64%, subject to adjustments based on our consolidated leverage ratio. (4)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. (5)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. Each of 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. (6)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. (7)The Operating Partnership entered into a treasury lock contract on June 20, 2019, which was settled on July 17, 2019 at a gain of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge; accordingly, the effective interest rate is approximately 3.88% per annum. On January 26, 2021, the Operating Partnership issued $500 million of senior unsecured notes (the "3.375% Senior Notes") that mature February 1, 2031 and bear interest at 3.375% per annum. The 3.375% Senior Notes were priced at 98.935% of the principal amount with a yield to maturity of 3.502%. The net proceeds of the 3.375% Senior Notes, after the issuance discount, underwriting fees, and other costs were approximately $489.7 million, which were primarily used to (i) prepay our $150 million Senior Guaranteed Notes, Series A, with a make-whole payment (as defined in the Note Purchase Agreement for the Series A Notes) thereon of approximately $3.9 million, on January 26, 2021, (ii) repay our $100 million then outstanding balance under our Revolver Loan on January 26, 2021, (iii) fund the development of the La Jolla Commons III office building and (iv) for general corporate purposes. Certain unsecured loans and notes require the Operating Partnership to comply with various financial covenants. As of March 31, 2022, the Operating Partnership was in compliance with these financial covenants. Amended Term Loan Agreement On January 9, 2018, we entered into the Third Amendment to the Term Loan Agreement (as so amended, the "Term Loan Agreement"), which maintains the seven years $150 million unsecured term loan (referred to herein as Term Loan B and Term Loan C) to the Operating Partnership that matures on March 1, 2023 (the “$150mm Term Loan”). Effective as of March 1, 2018, borrowings under the Term Loan Agreement with respect to the $150mm Term Loan bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on the Operating Partnership’s consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0%, (b) the prime rate, (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on the Operating Partnership’s consolidated leverage ratio. Additionally, the Operating Partnership may elect for borrowings to bear interest based on a ratings-based pricing grid as per the Operating Partnership’s then-applicable investment grade debt ratings under the terms set forth in the Term Loan Agreement. Third 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 had an accordion feature that allowed us to increase the availability thereunder up to an additional $250 million, subject to meeting specified requirements and obtaining additional commitments from lenders. Borrowings under the Second Amended and Restated Credit Agreement initially bore 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. On January 9, 2019, we entered into the first amendment (“First Amendment”) to the Second Amended and Restated Credit Facility, which extended the maturity date of Term Loan A to January 9, 2021, subject to three, one year extension options. In October 2020, we exercised an option to extend the maturity date of Term Loan A to January 9, 2022, subject to certain conditions. Additionally, in connection with the First Amendment, borrowings under the Second Amended and Restated Credit Facility with respect to Term Loan A bore interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on our consolidated total leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.20% to 0.70% based on our consolidated total leverage ratio. The foregoing rates were intended to be more favorable than previously contained in the Second Amended and Restated Credit Facility (prior to entry into the First Amendment) with respect to Term Loan A. On January 5, 2022, we entered into the Third Amended and Restated Credit Facility, which provides for aggregate, unsecured borrowings of up to $500 million, consisting of a revolving line of credit of $400 million (the “2022 Revolver Loan”) and a term loan of $100 million (the “2022 Term Loan A”). The 2022 Revolver Loan initially matures on January 5, 2026, subject to two, six-month extension options. The 2022 Term Loan A matures on January 5, 2027, with no further extension options. Borrowings under the Third Amended and Restated Credit Agreement bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) the applicable Secured Overnight Financing Rate (“SOFR”), plus the applicable SOFR Adjustment, and a spread which ranges from (a) 1.05% to 1.50% (with respect to the 2022 Revolver Loans) and (b) 1.20% to 1.70% (with respect to the 2022 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, (c) the Term SOFR Screen Rate with a term of one month plus 100 bps and (d) 1.00%, plus a spread which ranges from (i) 0.10% to 0.50% (with respect to the 2022 Revolver Loan) and (ii) 0.20% to 0.70% (with respect to the 2022 Term Loan A), in each case based on our consolidated leverage ratio. On January 14, 2022, the Operating Partnership entered into two interest rate swap agreements that are intended to fix the interest rate associated with the 2022 Term Loan A at approximately 2.70% through January 5, 2027, subject to adjustments based on our consolidated leverage ratio. At March 31, 2022, there were no amounts outstanding under the 2022 Revolver Loan and we had incurred approximately $2.4 million of debt issuance costs, net, which are recorded in other assets, net on the consolidated balance sheets. For the three months ended March 31, 2022, the weighted average interest rate on the 2022 Revolver Loan was 1.24% Additionally, the Third 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 Third 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 March 31, 2022, the Operating Partnership was in compliance with the financial covenants in the Third Amended and Restated Credit Facility.
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PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. |
3 Months Ended |
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Mar. 31, 2022 | |
Equity [Abstract] | |
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. | PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us. Noncontrolling interests consisted of 16,181,537 common units (the “noncontrolling common units”), and represented approximately 21.2% of the ownership interests in our Operating Partnership at March 31, 2022. Common units and shares of our common stock have essentially the same economic characteristics in that common units and shares of our common stock share equally in the total net income or loss distributions of our Operating Partnership. Investors who own common units have the right to cause our Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of our common stock, or, at our election, shares of our common stock on a one-for-one basis. During the three months ended March 31, 2022, no 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 March 31, 2022 and 2021 does not include the weighted average of 485,493 and 489,775 unvested outstanding 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.
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EQUITY OF AMERICAN ASSETS TRUST, INC. |
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EQUITY OF AMERICAN ASSETS TRUST, INC. | EQUITY OF AMERICAN ASSETS TRUST, INC. Stockholders' Equity On December 3, 2021, we entered into an at-the-market ("ATM") equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million. The sales of shares of our common stock made through the ATM equity program, as amended, are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. For the three months ended March 31, 2022, no shares of common stock were sold through the ATM equity program. We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of March 31, 2022, we had the capacity to issue up to $250.0 million in shares of our common stock under our current 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. As of March 31, 2022, we have no obligation to sell the remaining shares available for sale under the ATM equity program. Dividends The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the three months ended March 31, 2022:
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-based 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 award or similar equity instrument. The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2022:
We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $1.5 million and $1.5 million in noncash compensation expense for the three months ended March 31, 2022 and 2021, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income. 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 485,493 and 489,775 for the three months ended March 31, 2022 and 2021, respectively. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights. Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the three months ended March 31, 2022 and 2021, 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):
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2022 | |
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 the other liabilities and deferred credits, net on our consolidated balance sheets of $1.0 million and $1.0 million as of March 31, 2022 and December 31, 2021, 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 months ended March 31, 2022, we recorded income tax expense of $0.2 million. For the three months ended March 31, 2021, we recorded income tax expense of $0.1 million.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal We are sometimes involved in various disputes, lawsuits, warranty claims, environmental, and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also, under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Commitments See Footnote 13 for description of our leases, as a lessee. We have management agreements with Outrigger Hotels & Resorts or an affiliate thereof (“Outrigger”) pursuant to which Outrigger manages each of the retail and hotel portions of the Waikiki Beach Walk property. Under the management agreement with Outrigger relating to the retail portion of Waikiki Beach Walk (the “retail management agreement”), we pay Outrigger a monthly management fee of 3.0% of net revenues from the retail portion of Waikiki Beach Walk. Pursuant to the terms of the retail management agreement, if the agreement is terminated in certain instances, including our election not to repair damage or destruction at the property, a condemnation or our failure to make required working capital infusions, we would be obligated to pay Outrigger a termination fee equal to the sum of the management fees paid for the two months immediately preceding the termination date. The retail management agreement may not be terminated by us or by Outrigger without cause. Under our management agreement with Outrigger relating to the hotel portion of Waikiki Beach Walk (the “hotel management agreement”), we pay Outrigger a monthly management fee of 6.0% of the hotel's gross operating profit, as well as 3.0% of the hotel's gross revenues; provided that the aggregate management fee payable to Outrigger for any year shall not exceed 3.5% of the hotel's gross revenues for such fiscal year. Pursuant to the terms of the hotel management agreement, if the agreement is terminated in certain instances, including upon a transfer by us of the hotel or upon a default by us under the hotel management agreement, we would be required to pay a cancellation fee calculated by multiplying (1) the management fees for the previous 12 months by (2) (a) eight, if the agreement is terminated in the first 11 years of its term, or (b) four, three, two or one, if the agreement is terminated in the twelfth, thirteenth, fourteenth or fifteenth year, respectively, of its term. The hotel management agreement may not be terminated by us or by Outrigger without cause. Additionally, we have a management agreement with Outrigger pursuant to which Outrigger manages our Waikele Center and Shops at Kalakaua. In connection with such management agreement, we pay Outrigger a fixed management fee of $12,000 per month in the aggregate plus additional amounts for any lease renewal services provided by Outrigger at our request. This management agreement can be terminated by us at any time and for any reason on 30 days' notice without any cancellation or termination fees. A wholly owned subsidiary of our Operating Partnership, WBW Hotel Lessee LLC, entered into a franchise license agreement with Embassy Suites Franchise LLC, the franchisor of the brand “Embassy Suites™,” to obtain the non-exclusive right to operate the hotel under the Embassy SuitesTM brand for 20 years. The franchise license agreement provides that WBW Hotel Lessee LLC must comply with certain management, operational, record keeping, accounting, reporting and marketing standards and procedures. In connection with this agreement, we are also subject to the terms of a product improvement plan pursuant to which we expect to undertake certain actions to ensure that our hotel's infrastructure is maintained in compliance with the franchisor's brand standards. In addition, we must pay to Embassy Suites Franchise LLC a monthly franchise royalty fee equal to 4.0% of the hotel's gross room revenue through December 2022 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 $4.0 million based on operating performance through March 31, 2022. Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and remains in remediation. The final stages of the remediation will include routine, long term ground monitoring by the appropriate regulatory agency over the next five years to seven years. The work performed is financed through an escrow account funded by the seller upon purchase of the Del Monte Center. We believe the funds in the escrow account are sufficient for the remaining work to be performed. However, if further work is required costing more than the remaining escrow funds, we could be required to pay such overage, although we may have a contractual claim for such costs against the prior owner or our environmental remediation consultant. Concentrations of Credit Risk Our properties are located in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory, social, and health factors affecting the markets in which the tenants operate including, without limitation, the impact the COVID-19 pandemic has had on our tenants. Fifteen 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 24.5% of total revenues for the three months ended March 31, 2022. 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 48.9% of total revenues for the three months ended March 31, 2022. This makes us susceptible to demand for office rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the office industry. For the three months ended March 31, 2022 and 2021, no tenant accounted for more than 10% of our total rental revenue.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES Lessor Operating Leases We determine if an arrangement is a lease at inception. Our lease agreements are generally for real estate, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. We lease real estate under operating leases. Our leases with office, retail, mixed-use and residential tenants are classified as operating leases. Leases at our office and retail properties and the retail portion of our mixed-use property generally range from three years to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, usually provide for cost recoveries for the tenant’s share of certain operating costs. Our leases may also include variable lease payments in the form of percentage rents based on the tenant’s level of sales achieved in excess of a breakpoint threshold. Leases on apartments generally range from 7 to 15 months, with a majority having 12-month lease terms. Rooms at the hotel portion of our mixed-use property are rented on a nightly basis. Leases at our office and retail properties and the retail portion of our mixed-use property may contain lease extension options, at our lessee's discretion. The extension options are generally for 3 to 10 years and contain primarily rent at fixed rates or the prevailing market rent. The extension options are generally exercisable 6 to 12 months prior to the expiration of the lease and require the lessee to not be in default of the lease terms. We attempt to maximize the amount we expect to derive from the underlying real estate property following the end of a lease, to the extent it is not extended. We maintain a proactive leasing and capital improvement program that, combined with the quality and locations of our properties, has made our properties attractive to tenants. However, the residual value of a real estate property is still subject to various market-specific, asset-specific, and tenant-specific risks and characteristics. As of March 31, 2022, 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):
The above future minimum rentals exclude residential leases, which typically have a term of 12 months or less, and exclude the hotel, as rooms are rented on a nightly basis. Lessee Operating Leases We determine if an arrangement is a lease at inception. Our lease agreements are generally for real estate, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. We lease real estate under operating leases. At the Landmark at One Market, we lease, as lessee, a building adjacent to the Landmark at One Market under an operating lease effective through June 30, 2026, which we have the option to extend until 2031 by way of the remaining five years extension option (the "Annex Lease"). The lease payments under the extension option provided for under the Annex Lease will be equal to the fair rental value at the time the extension option is exercised. The extension option is included in the calculation of the right-of-use asset and lease liability as we are reasonably certain of exercising the extension option. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. Current annual payments under the operating leases are as follows, as of March 31, 2022 (in thousands):
Lease costs under the operating leases are as follows (in thousands):
Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):
Subleases At the Landmark at One Market, we (as sublandlord) sublease the Annex Lease building under operating leases effective through December 31, 2029. The subleases contain extension options, subject to our ability to extend the Annex Lease, that can extend the subleases through December 31, 2039 at the fair rental value at the time the extension option is exercised.
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LEASES | LEASES Lessor Operating Leases We determine if an arrangement is a lease at inception. Our lease agreements are generally for real estate, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. We lease real estate under operating leases. Our leases with office, retail, mixed-use and residential tenants are classified as operating leases. Leases at our office and retail properties and the retail portion of our mixed-use property generally range from three years to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, usually provide for cost recoveries for the tenant’s share of certain operating costs. Our leases may also include variable lease payments in the form of percentage rents based on the tenant’s level of sales achieved in excess of a breakpoint threshold. Leases on apartments generally range from 7 to 15 months, with a majority having 12-month lease terms. Rooms at the hotel portion of our mixed-use property are rented on a nightly basis. Leases at our office and retail properties and the retail portion of our mixed-use property may contain lease extension options, at our lessee's discretion. The extension options are generally for 3 to 10 years and contain primarily rent at fixed rates or the prevailing market rent. The extension options are generally exercisable 6 to 12 months prior to the expiration of the lease and require the lessee to not be in default of the lease terms. We attempt to maximize the amount we expect to derive from the underlying real estate property following the end of a lease, to the extent it is not extended. We maintain a proactive leasing and capital improvement program that, combined with the quality and locations of our properties, has made our properties attractive to tenants. However, the residual value of a real estate property is still subject to various market-specific, asset-specific, and tenant-specific risks and characteristics. As of March 31, 2022, 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):
The above future minimum rentals exclude residential leases, which typically have a term of 12 months or less, and exclude the hotel, as rooms are rented on a nightly basis. Lessee Operating Leases We determine if an arrangement is a lease at inception. Our lease agreements are generally for real estate, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. We lease real estate under operating leases. At the Landmark at One Market, we lease, as lessee, a building adjacent to the Landmark at One Market under an operating lease effective through June 30, 2026, which we have the option to extend until 2031 by way of the remaining five years extension option (the "Annex Lease"). The lease payments under the extension option provided for under the Annex Lease will be equal to the fair rental value at the time the extension option is exercised. The extension option is included in the calculation of the right-of-use asset and lease liability as we are reasonably certain of exercising the extension option. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. Current annual payments under the operating leases are as follows, as of March 31, 2022 (in thousands):
Lease costs under the operating leases are as follows (in thousands):
Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):
Subleases At the Landmark at One Market, we (as sublandlord) sublease the Annex Lease building under operating leases effective through December 31, 2029. The subleases contain extension options, subject to our ability to extend the Annex Lease, that can extend the subleases through December 31, 2039 at the fair rental value at the time the extension option is exercised.
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COMPONENTS OF RENTAL INCOME AND EXPENSE |
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COMPONENTS OF RENTAL INCOME AND EXPENSE | COMPONENTS OF RENTAL INCOME AND EXPENSE The principal components of rental income are as follows (in thousands):
Lease rental income includes $3.7 million and $5.5 million for the three months ended March 31, 2022 and 2021, respectively, to recognize lease rental income on a straight-line basis. In addition, net amortization of above and below market leases included in lease rental income was $0.8 million and $0.8 million for the three months ended March 31, 2022 and 2021, respectively. The principal components of rental expenses are as follows (in thousands):
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OTHER (EXPENSE) INCOME, NET |
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OTHER (EXPENSE) INCOME, NET | OTHER (EXPENSE) INCOME, NET The principal components of other expense, net, are as follows (in thousands):
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RELATED PARTY TRANSACTIONS |
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Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the first quarter of 2019, we terminated a lease agreement with American Assets, Inc. ("AAI"), an entity owned and controlled by Ernest Rady, our Chief Executive Officer and Chairman of the Board, and entered into a new lease agreement with AAI for office space at Torrey Reserve Campus. Rents commenced on March 1, 2019 for an initial lease term of three years at an average annual rental rate of $0.2 million. During the third quarter of 2020, we entered into a new lease with AAI for office space at Torrey Point to replace its existing lease at Torrey Reserve Campus. Rents commenced on March 1, 2021 for an initial lease term of ten years at an average annual rental rate of $0.2 million. Rental revenue recognized on the AAI leases of $0.1 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively, is 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 $0.3 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively, are included in rental expenses on the consolidated statements of comprehensive income.
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SEGMENT REPORTING |
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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):
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
(1)Excludes debt issuance costs of $0.02 million and $0.04 million for each of the periods ended March 31, 2022 and December 31, 2021, respectively. Capital expenditures for each segment for the three months ended March 31, 2022 and 2021 were as follows (in thousands):
(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.
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SUBSEQUENT EVENT |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn April 25, 2022, we entered into a rate lock agreement with J.P. Morgan Investment Management Inc. to reduce the interest rate variability exposure of a prospective ten-year non-recourse mortgage of our Lomas Santa Fe Plaza in an original principal amount not to exceed $63 million and a fixed interest rate of 4.639% that we expect to close in the third quarter of 2022, subject to customary closing conditions. We intend for the proceeds from this prospective mortgage to be applied to the payoff of our City Center Bellevue mortgage. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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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 207 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. As of March 31, 2022, we owned or had a controlling interest in 31 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of March 31, 2022, we owned land at three of our properties that we classify as held for development and/or construction in progress. A summary of the properties owned by us is as follows:
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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. The Company follows the Financial Accounting Standards Board (the "FASB") guidance for determining whether an entity is a variable interest entity (“VIE”) and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. American Assets Trust, Inc. has concluded that the Operating Partnership is a VIE, and because American Assets Trust, Inc. has both the power and the rights to control the Operating Partnership, American Assets Trust, Inc. is the primary beneficiary and is required to continue to consolidate the Operating Partnership. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. All 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, 2021. 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.
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Significant Accounting Policies | Significant Accounting PoliciesWe describe our significant accounting policies in Note 1 to the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021. There have been no changes to our significant accounting policies during the three months ended March 31, 2022. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment InformationSegment information is prepared on the same basis that our chief operating decision maker reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks. We make estimates of the collectability of our current accounts receivable and straight-line rents receivable which require significant judgment by management. The collectability of receivables is affected by numerous different factors including current economic conditions, the impact of tenant bankruptcies, the status of collectability of current cash rents receivable, tenants' recent and historical financial and operating results, changes in our tenants' credit ratings, communications between our operating personnel and tenants, the extent of security deposits and letters of credit held with respect to tenants, and the ability of tenants to perform under the terms of their lease agreement. The provision for doubtful accounts at March 31, 2022 and December 31, 2021 was approximately $4.4 million and $4.6 million, respectively. Rent Concessions – COVID-19 In 2021, we provided lease concessions to certain tenants, primarily within the retail segment, as a result of the COVID-19 pandemic, in the form of rent deferrals and abatements. These lease concessions generally included an increase in our rights as a lessor. We assess each lease concession and determine whether it represents a lease modifications under Accounting Standards Codification Topic 842, Leases ("ASC 842"). During the first quarter of 2022, we provided an immaterial amount of lease concessions to certain tenants that continued being impacted by the Covid-19 pandemic.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides companies with optional practical expedients to ease the accounting burden for contract modifications associated with transitioning away from LIBOR and other interbank offered rates that are expected to be discontinued as part of reference rate reform. For hedges, the guidance generally allows changes to the reference rate and other critical terms without having to de-designate the hedging relationship, and permits the shortcut method to continue to be applied. For contract modifications, changes in the reference rate or other critical terms will be treated as a continuation of the prior contract. This guidance can be applied immediately, however, it is generally only available through December 31, 2022. We are still evaluating the impact of reference rate reform and whether we will apply any of these practical expedients.
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Fair Value Measurement | A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows: 1.Level 1 Inputs—quoted prices in active markets for identical assets or liabilities 2.Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities 3.Level 3 Inputs—unobservable inputs The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We measure the fair value of our deferred compensation liability, which is included in other liabilities and deferred credits on the consolidated balance sheet, on a recurring basis using Level 2 inputs. We measure the fair value of this liability based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. The fair value of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contract at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income (loss) and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2022 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.
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Derivatives | The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings for as long as hedged cash flows remain probable. During the next twelve months, we estimate the cash flow hedges in place will reduce interest expense by approximately $1.1 million.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. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Properties Owned | A summary of the properties owned by us is as follows:
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Consolidated Statements of Cash Flows-Supplemental Disclosures | The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):
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REAL ESTATE (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The financial information set forth below summarizes the Company’s purchase price allocation for Bel-Spring 520 during the three months ended March 31, 2022 (in thousands):
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Schedule of Acquiree Operating Results since Acquisition Date | The following table summarizes the operating results for Bel-Spring 520 included in the Company's historical consolidated statement of operations for the period of acquisition through March 31, 2022 (in thousands):
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ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquired lease intangibles included in other assets and other liabilities | The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of March 31, 2022 and December 31, 2021 (in thousands):
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
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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):
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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):
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DERIVATIVE AND HEDGING ACTIVITIES (Tables) |
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Schedule of Interest Rate Derivatives | The following is a summary of the terms of our outstanding interest rate swaps as of March 31, 2022 (dollars in thousands):
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OTHER ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Assets | Other assets consist of the following (in thousands):
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OTHER LIABILITIES AND DEFERRED CREDITS (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities and deferred credits | Other liabilities and deferred credits consist of the following (in thousands):
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DEBT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of total secured notes payable outstanding | The following table is a summary of our total secured notes payable outstanding as of March 31, 2022 and December 31, 2021 (in thousands):
(1)Interest only. The following table is a summary of the Operating Partnership's total unsecured notes payable outstanding as of March 31, 2022 and December 31, 2021 (in thousands):
(1)The Operating Partnership has entered into two interest rate swap agreements that are intended to fix the interest rate associated with Term Loan A at approximately 2.70% through its maturity date, subject to adjustments based on our consolidated leverage ratio. (2)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan B is approximately 2.65%, subject to adjustments based on our consolidated leverage ratio. (3)The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. Effective March 1, 2018, the effective interest rate associated with Term Loan C is approximately 2.64%, subject to adjustments based on our consolidated leverage ratio. (4)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. (5)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. Each of 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. (6)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. (7)The Operating Partnership entered into a treasury lock contract on June 20, 2019, which was settled on July 17, 2019 at a gain of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge; accordingly, the effective interest rate is approximately 3.88% per annum.
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EQUITY OF AMERICAN ASSETS TRUST, INC. (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid on shares of common stock and noncontrolling common units | The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the three months ended March 31, 2022:
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Activity of restricted stock awards | The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2022:
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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):
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current minimum future rentals under the leases | As of March 31, 2022, 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):
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Current minimum annual payments under the leases | Current annual payments under the operating leases are as follows, as of March 31, 2022 (in thousands):
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Lease costs under operating leases and supplemental cash flow information of leases | Lease costs under the operating leases are as follows (in thousands):
Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):
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COMPONENTS OF RENTAL INCOME AND EXPENSE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal components of rental income | The principal components of rental income are as follows (in thousands):
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Principal components of rental expenses | The principal components of rental expenses are as follows (in thousands):
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OTHER (EXPENSE) INCOME, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal components of other expense, net | The principal components of other expense, net, are as follows (in thousands):
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SEGMENT REPORTING (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segments operating activity | The following table represents operating activity within our reportable segments (in thousands):
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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):
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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):
(1)Excludes debt issuance costs of $0.02 million and $0.04 million for each of the periods ended March 31, 2022 and December 31, 2021, respectively.
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Capital expenditures for each segment | Capital expenditures for each segment for the three months ended March 31, 2022 and 2021 were as follows (in thousands):
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
employee
segment
property
room
|
Dec. 31, 2021
USD ($)
|
|
Accounting Policies [Abstract] | ||
Number of employees | employee | 207 | |
Office, retail, multifamily, and mixed-use operating properties | 31 | |
Properties held for development | 3 | |
Number of operating segments | segment | 4 | |
Room in mixed-use segment all-suite hotel | room | 369 | |
Allowance for doubtful accounts | $ | $ 4.4 | $ 4.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplement Disclosures Related to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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Accounting Policies [Abstract] | ||
Total interest costs incurred | $ 15,847 | $ 14,564 |
Interest capitalized | 1,181 | 559 |
Interest expense | 14,666 | 14,005 |
Cash paid for interest, net of amounts capitalized | 19,722 | 13,069 |
Cash paid for income taxes | 127 | 71 |
Accounts payable and accrued liabilities for construction in progress | 19,677 | 7,109 |
Accrued leasing commissions | $ 3,389 | $ 631 |
REAL ESTATE (Details) - Office Building - Bel-Spring 520 ft² in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 08, 2022
USD ($)
ft²
|
Mar. 31, 2022 |
|
Real Estate [Line Items] | ||
Area of real estate property | ft² | 93 | |
Payments to acquire productive assets | $ 45.5 | |
Purchase price seller credits, future rent abatement | 0.1 | |
Purchase price seller credits, contractual tenant improvements | 0.6 | |
Acquisition cost capitalized | $ 0.1 | |
Leases | ||
Real Estate [Line Items] | ||
Weighted average useful life (in years) | 3 years 9 months 18 days |
REAL ESTATE - Purchase Price Allocation (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Real Estate [Line Items] | ||
Acquired in-place leases, net | $ 28,414 | $ 29,085 |
Prepaid expenses and other | 9,004 | 9,136 |
Assets acquired | 3,011,134 | 3,017,927 |
Accounts payable and accrued expenses | (68,797) | (64,531) |
Security deposits payable | (8,280) | (7,855) |
Other liabilities and deferred credits | (79,142) | (86,215) |
Liabilities assumed | (1,805,247) | $ (1,807,804) |
Office Building | Bel-Spring 520 | ||
Real Estate [Line Items] | ||
Land | 13,744 | |
Building | 27,793 | |
Land improvements | 713 | |
Furniture, fixtures, and equipment | 1,833 | |
Total real estate | 44,083 | |
Acquired in-place leases, net | 2,036 | |
Prepaid expenses and other | 10 | |
Assets acquired | 46,129 | |
Accounts payable and accrued expenses | (14) | |
Security deposits payable | (189) | |
Other liabilities and deferred credits | (641) | |
Liabilities assumed | $ (844) |
REAL ESTATE - Operating Results for Acquisition (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
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Real Estate [Line Items] | |||
Revenues | $ 101,470 | $ 83,986 | |
Operating income (loss) | 28,342 | 20,062 | |
Net income | $ 13,514 | $ 1,733 | |
Office Building | Bel-Spring 520 | |||
Real Estate [Line Items] | |||
Revenues | $ 201 | ||
Operating expenses | 212 | ||
Operating income (loss) | (11) | ||
Net income | $ (11) |
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES Acquired Lease Intangibles and Leasing Costs Included in Other Assets and Other Liabilities and Deferred Credits (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (1,477) | $ (1,382) |
Below market leases | 59,266 | 58,655 |
Accumulated accretion | (37,093) | (36,253) |
Acquired lease intangible liabilities, net | 22,173 | 22,402 |
Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | 28,552 | 29,234 |
In-place leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Leases, gross | 68,803 | 67,215 |
Accumulated amortization | (40,389) | (38,130) |
Above market leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Leases, gross | 2,532 | 2,532 |
Accumulated amortization | $ (2,394) | $ (2,383) |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Liabilities Fair Value Measurement on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | $ 2,193 | $ 2,503 |
Interest rate swap asset | 3,789 | 0 |
Interest rate swap liability | 0 | 1,807 |
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 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 2,193 | 2,503 |
Interest rate swap asset | 3,789 | 0 |
Interest rate swap liability | 0 | 1,807 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Level 2 |
Mar. 31, 2022 |
---|---|
Minimum | |
Fair Value Inputs Disclosures | |
Fair value assumptions, interest rate (as a percent) | 0.035 |
Maximum | |
Fair Value Inputs Disclosures | |
Fair value assumptions, interest rate (as a percent) | 0.045 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Secured notes payable, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 110,976 | $ 110,965 |
Unsecured term loans, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 249,107 | 249,654 |
Unsecured senior guaranteed notes, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 798,055 | 797,953 |
Senior unsecured notes, net | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 490,890 | 490,631 |
Level 2 | Secured notes payable, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 111,900 | 113,207 |
Level 2 | Unsecured term loans, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 250,000 | 250,000 |
Level 2 | Unsecured senior guaranteed notes, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 805,048 | 832,795 |
Level 2 | Senior unsecured notes, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 470,150 | $ 503,000 |
DERIVATIVE AND HEDGING ACTIVITIES (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Estimated derivative reclassification from Accumulated OCI to Income | $ 1,100,000 |
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 3/1/2023 | U.S. Bank N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | 100,000,000 |
Fair Value | 125,000 |
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 3/1/2023 | Wells Fargo Bank, N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | 50,000,000 |
Fair Value | 55,000 |
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 1/5/2027 | Wells Fargo Bank, N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | 50,000,000 |
Fair Value | 1,802,000 |
Designated as Hedging Instrument | Cash Flow Hedging | American Assets Trust, L.P. | Interest Rate Swap, 1/5/2027 | Bank of America, N.A. | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | 50,000,000 |
Fair Value | $ 1,807,000 |
OTHER ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Leasing commissions, net of accumulated amortization of $41,291 and $40,595, respectively | $ 40,110 | $ 38,589 |
Interest rate swap asset | 3,789 | 0 |
Acquired above market leases, net | 138 | 149 |
Acquired in-place leases, net | 28,414 | 29,085 |
Lease incentives, net of accumulated amortization of $928 and $913, respectively | 662 | 595 |
Other intangible assets, net of accumulated amortization of $1,477 and $1,382, respectively | 2,452 | 2,445 |
Debt issuance costs, net of accumulated amortization of $2,232 and $2,070, respectively | 2,430 | 0 |
Right-of-use lease asset, net | 25,678 | 26,254 |
Prepaid expenses and other | 9,004 | 9,136 |
Total other assets | 112,677 | 106,253 |
Leasing commissions, accumulative amortization | (41,291) | (40,595) |
Lease incentives, accumulated amortization | (928) | (913) |
Other intangible assets, accumulated amortization | 1,477 | 1,382 |
Debt issuance costs, accumulated amortization | $ (2,232) | $ (2,070) |
OTHER LIABILITIES AND DEFERRED CREDITS (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Acquired below market leases, net | $ 22,173 | $ 22,402 |
Prepaid rent and deferred revenue | 12,964 | 16,309 |
Interest rate swap liability | 0 | 1,807 |
Deferred rent expense and lease intangible | 0 | 3 |
Deferred compensation | 2,193 | 2,503 |
Deferred tax liability | 967 | 967 |
Straight-line rent liability | 13,420 | 14,274 |
Lease liability | 27,378 | 27,917 |
Other liabilities | 47 | 33 |
Total other liabilities and deferred credits, net | $ 79,142 | $ 86,215 |
DEBT - Summary of Total Secured Notes Payable Outstanding (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ (2,430) | $ 0 |
Debt issuance costs, accumulated amortization | 2,232 | 2,070 |
American Assets Trust, L.P. | Secured notes payable, net | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal balance | 111,000 | 111,000 |
Debt issuance costs, net | (24) | (35) |
Total Debt Outstanding | 110,976 | 110,965 |
Debt issuance costs, accumulated amortization | 397 | 387 |
American Assets Trust, L.P. | City Center Bellevue | Secured notes payable, net | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal balance | $ 111,000 | $ 111,000 |
Stated Interest Rate | 3.98% |
DEBT - Summary of Total Unsecured Notes Payable Outstanding (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jul. 17, 2019 |
Jun. 23, 2017 |
May 11, 2017 |
Jan. 18, 2017 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jan. 26, 2021 |
Mar. 01, 2018 |
|
Debt Instrument [Line Items] | ||||||||
Debt issuance costs, net | $ (2,430) | $ 0 | ||||||
Debt issuance costs, accumulated amortization | 2,232 | 2,070 | ||||||
American Assets Trust, L.P. | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on derivative settlement | $ 500 | |||||||
Gain on derivative settlement | $ 500 | $ 700 | $ 10,400 | |||||
American Assets Trust, L.P. | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | 1,550,000 | 1,550,000 | ||||||
Debt issuance costs, net | (11,948) | (11,762) | ||||||
Total Debt Outstanding | 1,538,052 | 1,538,238 | ||||||
Debt issuance costs, accumulated amortization | $ 9,798 | 9,462 | ||||||
American Assets Trust, L.P. | Term Loan A | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 2.70% | |||||||
American Assets Trust, L.P. | Term Loan A | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Maturity Date | Jan. 05, 2027 | |||||||
American Assets Trust, L.P. | Term Loan B | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 3.15% | 2.65% | ||||||
American Assets Trust, L.P. | Term Loan B | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||
American Assets Trust, L.P. | Term Loan C | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 3.14% | 2.64% | ||||||
American Assets Trust, L.P. | Term Loan C | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 50,000 | 50,000 | ||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series F | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.85% | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series F | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Interest Rate | 3.78% | |||||||
Stated Maturity Date | Jul. 19, 2024 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series B | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Interest Rate | 4.45% | |||||||
Stated Maturity Date | Feb. 02, 2025 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series C | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Interest Rate | 4.50% | |||||||
Stated Maturity Date | Apr. 01, 2025 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series D | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.87% | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series D | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 250,000 | 250,000 | ||||||
Stated Interest Rate | 4.29% | |||||||
Stated Maturity Date | Mar. 01, 2027 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series E | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 4.18% | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series E | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 100,000 | 100,000 | ||||||
Stated Interest Rate | 4.24% | |||||||
Stated Maturity Date | May 23, 2029 | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series G | Forward Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective rate of debt instrument (in percent) | 3.88% | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series G | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 150,000 | 150,000 | ||||||
Stated Interest Rate | 3.91% | |||||||
Stated Maturity Date | Jul. 30, 2030 | |||||||
American Assets Trust, L.P. | 3.375% Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | 3.375% | |||||||
American Assets Trust, L.P. | 3.375% Senior Unsecured Notes | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, principal balance | $ 500,000 | $ 500,000 | ||||||
Stated Interest Rate | 3.38% | |||||||
Stated Maturity Date | Feb. 01, 2031 |
DEBT - Narrative (Details) |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jan. 05, 2022
USD ($)
extension
|
Jan. 26, 2021
USD ($)
|
Jan. 09, 2019
extension
|
Jan. 09, 2018
USD ($)
|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Jan. 14, 2022 |
Mar. 01, 2018 |
|
Debt Instrument [Line Items] | ||||||||
Repayments of unsecured debt | $ 0 | $ 155,375,000 | ||||||
Loss on early extinguishment of debt | 0 | (4,271,000) | ||||||
Repayments of line of credit | 0 | 100,000,000 | ||||||
Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
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% | |||||||
Minimum fixed charge coverage ratio covenant threshold | 1.50 | |||||||
Minimum unsecured leverage ratio | 175.00% | |||||||
American Assets Trust, L.P. | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of unsecured debt | 0 | 155,375,000 | ||||||
Loss on early extinguishment of debt | 0 | (4,271,000) | ||||||
Repayments of line of credit | $ 0 | $ 100,000,000 | ||||||
American Assets Trust, L.P. | Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.05% | |||||||
American Assets Trust, L.P. | Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
American Assets Trust, L.P. | 3.375% Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate | 3.375% | |||||||
Note offering percent | 0.98935 | |||||||
Weighted average yield of investment (as a percent) | 3.502% | |||||||
Proceeds from debt, net of issuance costs | $ 489,700,000 | |||||||
American Assets Trust, L.P. | 3.375% Senior Unsecured Notes | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 500,000,000 | |||||||
Stated Interest Rate | 3.38% | |||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series A | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of unsecured debt | 150,000,000 | |||||||
Loss on early extinguishment of debt | 3,900,000 | |||||||
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 | 250,000,000 | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | 100,000,000 | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of line of credit | $ 100,000,000 | |||||||
Debt issuance costs, net, revolving credit facility | $ (2,400,000) | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 350,000,000 | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Federal Funds Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | 0.50% | ||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.30% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.05% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Minimum | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.30% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Minimum | Base Rate | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.10% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.90% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Maximum | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.90% | |||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Maximum | Base Rate | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
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 | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum base rate | 0.00% | |||||||
American Assets Trust, L.P. | Term Loan B | Federal Funds Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
American Assets Trust, L.P. | Term Loan B | Eurodollar | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
American Assets Trust, L.P. | Term Loan B | Minimum | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
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 | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
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 B | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 3.15% | 2.65% | ||||||
American Assets Trust, L.P. | Term Loan B & Term Loan C | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 150,000,000 | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt extension options | extension | 3 | |||||||
Extension term | 1 year | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Federal Funds Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Eurodollar | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.20% | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
American Assets Trust, L.P. | First Amendment To Second Amended And Restated Credit Facility | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.70% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 500,000,000 | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 100,000,000 | |||||||
Debt extension options | extension | 2 | |||||||
Extension term | 6 months | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate, revolving credit facility | 1.24% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 400,000,000 | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum base rate | 1.00% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Minimum | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.20% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Minimum | Base Rate | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.10% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Maximum | Base Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.70% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Maximum | Base Rate | Revolving Credit Facility | Unsecured line of credit, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured term loans, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
American Assets Trust, L.P. | Third Amended and Restated Credit Facility | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative fixed interest rate (in percent) | 2.70% |
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
shares
|
Mar. 31, 2021
shares
|
|
American Assets Trust, L.P. | ||
Capital Unit [Line Items] | ||
Percentage of ownership interests classified as noncontrolling | 21.20% | |
American Assets Trust, L.P. | ||
Capital Unit [Line Items] | ||
Noncontrolling common units (in shares) | 16,181,537 | |
American Assets Trust, L.P. | Operating Partnership Units | ||
Capital Unit [Line Items] | ||
Antidilutive securities excluded from computation of EPS (in shares) | 485,493 | 489,775 |
Limited Partner | American Assets Trust, L.P. | ||
Capital Unit [Line Items] | ||
Common unit conversion ratio | 1 | |
Common Shares | American Assets Trust, L.P. | ||
Capital Unit [Line Items] | ||
Conversion of operating partnership units (in shares) | 0 |
EQUITY OF AMERICAN ASSETS TRUST, INC. - Narrative (Details) |
3 Months Ended | ||
---|---|---|---|
Dec. 03, 2021
USD ($)
salesAgent
|
Mar. 31, 2022
USD ($)
shares
|
Mar. 31, 2021
USD ($)
shares
|
|
Equity [Line Items] | |||
Noncash compensation expense | $ 1,500,000 | $ 1,500,000 | |
American Assets Trust, L.P. | Operating Partnership Units | |||
Equity [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | shares | 485,493 | 489,775 | |
At The Market Equity Program | |||
Equity [Line Items] | |||
Number of sales agents | salesAgent | 5 | ||
Aggregate offering price of common share | $ 250,000,000 | ||
Remaining capacity to issue | $ 250,000,000 |
EQUITY OF AMERICAN ASSETS TRUST, INC. - Dividends Declare and Paid on Shares on Common Stock and Noncontrolling Common Units (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
| |
Equity [Abstract] | |
Amount per Share/Unit (in USD per unit) | $ 0.32 |
EQUITY OF AMERICAN ASSETS TRUST, INC. - Summary of Activity of Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Units | |
Nonvested, Beginning, Shares | shares | 487,397 |
Granted, Shares | shares | 0 |
Vested, Shares | shares | (1,166) |
Forfeited, Shares | shares | (3,121) |
Nonvested, End of year, shares | shares | 483,110 |
Weighted Average Grant Date Fair Value | |
Nonvested, Beginning, USD per share | $ / shares | $ 23.78 |
Granted, USD per share | $ / shares | 0 |
Vested, USD per share | $ / shares | 22.66 |
Forfeited, USD per share | $ / shares | 23.18 |
Nonvested, End of year, USD per share | $ / shares | $ 23.78 |
EQUITY OF AMERICAN ASSETS TRUST, INC. - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
NUMERATOR | ||
Net income | $ 13,514 | $ 1,733 |
Less: Net income attributable to restricted shares | (155) | (137) |
Less: Income from operations attributable to unitholders in the Operating Partnership | (2,836) | (339) |
Net income attributable to American Assets Trust, Inc. stockholders | 10,523 | 1,257 |
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | 10,523 | 1,257 |
Plus: Income from operations attributable to unitholders in the Operating Partnership | 2,836 | 339 |
Net income attributable to common stockholders—diluted | $ 13,359 | $ 1,596 |
DENOMINATOR | ||
Weighted average common shares outstanding-basic (in shares) | 60,038,683 | 59,984,335 |
Effect of dilutive securities-conversion of Operating Partnership units (in shares) | 16,181,537 | 16,181,537 |
Weighted average common shares outstanding - diluted (in shares) | 76,220,220 | 76,165,872 |
Earnings (loss) per common share - basic | ||
Earnings per common share, basic (in USD per share) | $ 0.18 | $ 0.02 |
Earnings (loss) per common share - diluted | ||
Earnings per common share, diluted (in USD per share) | $ 0.18 | $ 0.02 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Deferred tax liability | $ 967 | $ 967 | |
Income tax benefit (expense) | $ 198 | $ 127 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
mo
property
|
Mar. 31, 2021 |
|
Commitment And Contingencies [Line Items] | ||
Termination payment | $ | $ 4,000 | |
Number of consolidated properties located in Southern California | property | 15 | |
Maximum proportion of total revenue provided by any single tenant (as a percent) | 10.00% | 10.00% |
Total Revenues | Industry Concentration Risk | Retail | ||
Commitment And Contingencies [Line Items] | ||
Proportion of total revenue provided by retail or office tenants (as a percent) | 24.50% | |
Total Revenues | Industry Concentration Risk | Office | ||
Commitment And Contingencies [Line Items] | ||
Proportion of total revenue provided by retail or office tenants (as a percent) | 48.90% | |
Waikiki Beach Walk - Retail | ||
Commitment And Contingencies [Line Items] | ||
Property management fee (as a percent) | 3.00% | |
Outrigger Hotels | ||
Commitment And Contingencies [Line Items] | ||
Property management fee (as a percent) | 6.00% | |
Number of calendar months termination fee is based | 2 months | |
Maximum proportion of hotel's fiscal year gross revenues paid for aggregate yearly management fee (as a percent) | 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 | |
Payment for management fee | $ | $ 12 | |
Outrigger Hotels | Maximum | ||
Commitment And Contingencies [Line Items] | ||
Property management fee (as a 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 | |
Proportion of hotel occupancy gross revenue paid for program fee (as a percent) | 4.00% | |
Wbw Hotel Lessee Llc | Future Time Period Prior to 12-31-2021 | ||
Commitment And Contingencies [Line Items] | ||
Proportion of hotel occupancy gross revenue paid for franchise royalty fee (as a percent) | 4.00% | |
Wbw Hotel Lessee Llc | Future Time Period After 12-31-2021 | ||
Commitment And Contingencies [Line Items] | ||
Proportion of hotel occupancy gross revenue paid for franchise royalty fee (as a percent) | 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 |
LEASES - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Lessor, Lease, Description [Line Items] | |
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 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lease extension option period | 3 years |
Lease extension options exercise period | 6 months |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lease extension option period | 10 years |
Lease extension options exercise period | 12 months |
Landmark at One Market | |
Lessor, Lease, Description [Line Items] | |
Lease extension option exercise period | 5 years |
LEASES - Minimum Future Rentals from Noncancelable Operating Leases (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
2022 (nine months ending December 31, 2022) | $ 239,547 |
2023 | 234,623 |
2024 | 205,630 |
2025 | 181,665 |
2026 | 166,468 |
Thereafter | 409,675 |
Total | $ 1,437,608 |
LEASES - Lease Obligations - Minimum Future Rental Payments from Operating Leases (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
2022 (nine months ending December 31, 2022) | $ 2,436 | |
2023 | 3,328 | |
2024 | 3,428 | |
2025 | 3,531 | |
2026 | 3,584 | |
Thereafter | 16,126 | |
Total lease payments | 32,433 | |
Imputed interest | (5,055) | |
Present value of lease liability | $ 27,378 | $ 27,917 |
LEASES - Lease Costs & Additional Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating lease cost | $ 844 | $ 1,132 |
Variable lease cost | 0 | 0 |
Sublease income | (763) | (1,194) |
Lease cost | $ 81 | |
Lease income | $ (62) | |
Weighted-average remaining lease term - operating leases (in years) | 9 years 3 months 18 days | |
Weighted-average discount rate - operating leases (as a percent) | 3.19% |
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Operating cash flow information: | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 796 | $ 865 |
COMPONENTS OF RENTAL INCOME AND EXPENSE - Component of Rental Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Rental Income [Line Items] | ||
Percentage rent | $ 482 | $ 526 |
Hotel revenue | 8,055 | 3,271 |
Other | 642 | 571 |
Total rental income | 96,986 | 81,130 |
Office | ||
Rental Income [Line Items] | ||
Lease rental income | 48,050 | 43,362 |
Retail | ||
Rental Income [Line Items] | ||
Lease rental income | 24,041 | 20,853 |
Multifamily | ||
Rental Income [Line Items] | ||
Lease rental income | 12,916 | 11,752 |
Mixed-use | ||
Rental Income [Line Items] | ||
Lease rental income | $ 2,800 | $ 795 |
COMPONENTS OF RENTAL INCOME AND EXPENSE - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Recognition of straight-line rents | $ 3.7 | $ 5.5 |
Recognition of amortization of above and below market leases | $ 0.8 | $ 0.8 |
COMPONENTS OF RENTAL INCOME AND EXPENSE - Components of Rental Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Rental operating | $ 11,144 | $ 9,496 |
Hotel operating | 5,648 | 2,724 |
Repairs and maintenance | 4,760 | 3,742 |
Marketing | 519 | 393 |
Rent | 809 | 1,152 |
Hawaii excise tax | 809 | 532 |
Management fees | 456 | 207 |
Total rental expenses | $ 24,145 | $ 18,246 |
OTHER (EXPENSE) INCOME, NET - Components of Other (Expense) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Other Income and Expenses [Abstract] | ||
Interest and investment income | $ 36 | $ 74 |
Income tax expense | (198) | (127) |
Other non-operating expense | 0 | 0 |
Total other (expense) income, net | $ (162) | $ (53) |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 01, 2021 |
Mar. 01, 2019 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Related Party Transaction [Line Items] | ||||
Rental income | $ 96,986 | $ 81,130 | ||
Investment in WBW CHP LLC (as a percent) | 47.70% | |||
WBW CHP LLC | ||||
Related Party Transaction [Line Items] | ||||
Amount recovered for reimbursements of operating expense for related party | $ 300 | 300 | ||
American Assets, Inc. | Board of Directors Chairman | ||||
Related Party Transaction [Line Items] | ||||
Term of contract (in years) | 10 years | 3 years | ||
Rental income | $ 200 | $ 200 | $ 100 | $ 100 |
SEGMENT REPORTING - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
segment
room
| |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 4 |
Room in mixed-use segment all-suite hotel | room | 369 |
SEGMENT REPORTING - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Segment profit | $ 28,342 | $ 20,062 |
Total segments’ profit | 65,896 | 54,386 |
Office | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 49,569 | 44,464 |
Property expense | (13,330) | (11,364) |
Segment profit | 36,239 | 33,100 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 24,841 | 21,774 |
Property expense | (7,728) | (7,442) |
Segment profit | 17,113 | 14,332 |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 13,889 | 12,552 |
Property expense | (6,079) | (5,491) |
Segment profit | 7,810 | 7,061 |
Mixed-use | ||
Segment Reporting Information [Line Items] | ||
Property revenue | 13,171 | 5,196 |
Property expense | (8,437) | (5,303) |
Segment profit | $ 4,734 | $ (107) |
SEGMENT REPORTING - Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting [Abstract] | ||
Total segments’ profit | $ 65,896 | $ 54,386 |
General and administrative | (7,142) | (6,823) |
Depreciation and amortization | (30,412) | (27,501) |
Interest expense | (14,666) | (14,005) |
Loss on early extinguishment of debt | 0 | (4,271) |
Other (expense) income, net | (162) | (53) |
NET INCOME | 13,514 | 1,733 |
Net income attributable to restricted shares | (155) | (137) |
Net income attributable to unitholders in the Operating Partnership | (2,836) | (339) |
Net income attributable to American Assets Trust, Inc. stockholders | $ 10,523 | $ 1,257 |
SEGMENT REPORTING - Net Real Estate and Secured Note Payable Balances (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Real estate, net | $ 2,731,457 | $ 2,681,981 |
Secured Notes Payable | 111,000 | 111,000 |
Debt issuance costs, net of accumulated amortization of $2,232 and $2,070, respectively | 2,430 | 0 |
American Assets Trust, L.P. | ||
Segment Reporting Information [Line Items] | ||
Real estate, net | 2,731,457 | 2,681,981 |
Secured notes payable, net | American Assets Trust, L.P. | ||
Segment Reporting Information [Line Items] | ||
Debt issuance costs, net of accumulated amortization of $2,232 and $2,070, respectively | 24 | 35 |
Office | ||
Segment Reporting Information [Line Items] | ||
Real estate, net | 1,590,488 | 1,536,212 |
Secured Notes Payable | 111,000 | 111,000 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Real estate, net | 590,113 | 591,107 |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Real estate, net | 378,887 | 381,315 |
Mixed-use | ||
Segment Reporting Information [Line Items] | ||
Real estate, net | $ 171,969 | $ 173,347 |
SEGMENT REPORTING - Capital Expenditures (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 32,128 | $ 12,216 |
Office | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 26,666 | 9,527 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 3,560 | 1,722 |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 1,571 | 963 |
Mixed-use | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 331 | $ 4 |
SUBSEQUENT EVENT (Details) - Mortgages - Nonrecourse - Scenario, Forecast $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Subsequent Event [Line Items] | |
Term of debt instrument | 10 years |
Face amount of debt | $ 63 |
Stated Interest Rate | 4.639% |
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