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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2024
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 office real estate, retail real estate, multifamily real estate and mixed-use real estate. 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 retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.
We evaluate the performance of our segments based on segment profit, which is defined as property revenue less property expenses. We do not use asset information as a measure to assess performance and make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.
Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.

The following table represents operating activity within our reportable segments (in thousands): 
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Total Office
Property revenue$51,310 $52,219 $102,992 $103,189 
Property expense(14,945)(14,894)(29,937)(29,714)
Segment profit36,365 37,325 73,055 73,475 
Total Retail
Property revenue26,475 25,901 52,501 51,528 
Property expense(7,820)(7,555)(16,121)(15,259)
Segment profit18,655 18,346 36,380 36,269 
Total Multifamily
Property revenue16,391 15,193 32,690 30,756 
Property expense(6,825)(6,786)(13,806)(13,317)
Segment profit9,566 8,407 18,884 17,439 
Total Mixed-Use
Property revenue16,714 16,408 33,402 32,002 
Property expense(10,758)(10,562)(21,571)(20,644)
Segment profit5,956 5,846 11,831 11,358 
Total segments’ profit$70,542 $69,924 $140,150 $138,541 
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Total segments’ profit$70,542 $69,924 $140,150 $138,541 
General and administrative(8,737)(8,609)(17,579)(17,608)
Depreciation and amortization(31,011)(29,823)(61,228)(59,724)
Interest expense, net(16,289)(16,368)(32,544)(32,097)
Other income (expense), net789 273 11,118 6,951 
Net income15,294 15,397 39,917 36,063 
Net income attributable to restricted shares(195)(190)(391)(379)
Net income attributable to unitholders in the Operating Partnership(3,195)(3,224)(8,362)(7,565)
Net income attributable to American Assets Trust, Inc. stockholders$11,904 $11,983 $31,164 $28,119 
The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
June 30, 2024December 31, 2023
Net Real Estate
Office$1,606,293 $1,614,323 
Retail556,183 563,532 
Multifamily356,494 361,233 
Mixed-Use163,498 166,227 
$2,682,468 $2,705,315 
Secured Notes Payable (1)
Office$75,000 $75,000 
$75,000 $75,000 
(1)Excludes debt issuance costs of $0.3 million and $0.3 million for each of the periods ended June 30, 2024 and December 31, 2023, respectively.
Capital expenditures for each segment for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Capital Expenditures (1)
Office$12,683 $19,812 $21,669 $40,537 
Retail2,605 1,645 5,384 4,170 
Multifamily 1,478 1,216 2,678 2,529 
Mixed-Use366 718 693 1,850 
$17,132 $23,391 $30,424 $49,086 

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