8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

August 9, 2011

American Assets Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-35030	27-3338708
(State or other jurisdiction of incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)
11455 El Camino Real, Suite 200 San Diego, California 92130		92130
(Address of principal executive offices)		(Zip Code)

(858) 350-2600

Registrant’s telephone number, including area code:

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 9, 2011, American Assets Trust, Inc. (the “Company”) issued a press release regarding its financial results for the period ended June 30, 2011. Also on August 9, 2011, the Company made available on its website at www.americanassetstrust.com certain supplemental information concerning the Company’s financial results and operations for the period ended June 30, 2011. Copies of the press release and supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively.

Exhibits 99.1 and 99.2, are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 7.01 Regulation FD Disclosure.

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the period ended June 30, 2011 and made available on its website certain supplement information relating thereto.

The information being furnished pursuant to Item 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(a) Financial statements of business acquired: None

(b) Pro forma financial information: None

(c) Shell company transactions: None

(d) Exhibits:

The following exhibits are furnished with this Current Report on Form 8-K:

Exhibit Number	Exhibit Description
99.1**	Press release issued by American Assets Trust, Inc. on August 9, 2011.
99.2**	American Assets Trust, Inc. Supplemental Information for the period ended June 30, 2011.

** Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

American Assets Trust, Inc.
By:	/s/    Robert F. Barton
Robert F. Barton Executive Vice President, CFO

August 9, 2011

EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1	Press release issued by American Assets Trust, Inc. on August 9, 2011.
99.2	American Assets Trust, Inc. Supplemental Information for the period ended June 30, 2011.

EX-99.1

Exhibit 99.1

American Assets Trust, Inc. Reports Second Quarter 2011 Financial Results

Company Release – 8/9/11

SAN DIEGO –American Assets Trust, Inc. (NYSE: AAT) (the “Company”) today reported financial results for its second quarter ended June 30, 2011.

Financial Results

• Funds From Operations as adjusted of $0.26 and $0.53 per diluted share/unit for the three and six months ended June 30, 2011, respectively

• $84.5 million interest-only mortgage loan secured by First & Main with a fixed rate of 3.965% closed on June 1, 2011

During the second quarter of 2011, the Company generated funds from operations as adjusted (“FFO as adjusted”) for common stockholders and unitholders of $14.6 million or $0.26 per diluted share/unit. For the six months ended June 30, 2011, the Company generated FFO as adjusted for common stockholders and unitholders of $27.4 million or $0.53 per diluted share/unit. FFO as adjusted includes adjustments to FFO for both nonoperational items and items directly related to the Company’s initial public offering (“IPO”) on January 19, 2011.

Net income attributable to common stockholders was $0.2 million or $0.01 per basic and diluted share for the three months ended June 30, 2011. For the six months ended June 30, 2011, net loss attributable to common stockholders was $(0.5) million or $(0.01) per basic and diluted share. FFO for common stockholders was $24.4 million or $0.47 per diluted share/unit for the period January 19, 2011 to June 30, 2011. FFO for common stockholders for the three months ended June 30, 2011, was the same as FFO as adjusted for common stockholders and unitholders of $14.6 million.

FFO and FFO as adjusted are non-GAAP supplemental earnings measures which the Company considers meaningful in measuring its operating performance. Reconciliations of FFO and FFO as adjusted to net income are attached to this press release.

Portfolio Results

For the second quarter 2011, same-store property operating income decreased approximately 1% on a GAAP basis compared to the second quarter 2010. The results were negatively impacted by additional accruals for property tax expense. These accruals represent the anticipated supplemental billings by the taxing authorities based on the expected reassessment of our California properties in connection with the IPO. The additional annual expense, net of revenue for amounts expected to be passed-through to

tenants, is estimated to be $1.4 million for 2011 for the entire portfolio. During the three months ended June 30, 2011, the net expense recorded on a same-store basis was approximately $0.1 million, $0.2 million and $0.3 million for the retail, office and multifamily segments, respectively, which represents the net expense for the period from IPO through June 30, 2011.

The same-store property operating income by segment, including the additional property tax expense discussed above, was as follows (in thousands):

	Three Months Ended June 30,							Six Months Ended June 30
	2011		2010		Change			2011		2010		Change
Retail	$	14,509	$	14,146		2.6	%	$	29,084	$	28,242		3.0	%
Office		4,520		4,822		(6.3	)		9,270		9,192		0.8
Multifamily		2,066		2,411		(14.3	)		4,198		4,891		(14.2	)
Mixed-Use		—		—		—			—		—		—
	$	21,095	$	21,379		(1.3	)%	$	42,552	$	42,325		0.5	%

Same-store property operating income does not include income from First & Main, which was acquired in March 2011, or from Solana Beach Town Centre, Solana Beach Corporate Centre and Waikiki Beach Walk as these properties represented noncontrolled properties that were not consolidated at June 30, 2010. Additionally, The Landmark at One Market is not included in same-store property operating income because a controlling interest in the property was not acquired until June 30, 2010 and was not included in the Company’s income for the three and six months ended June 30, 2010.

The same-store property operating income by segment, excluding the additional property tax expense discussed above, was as follows (in thousands):

	Three Months Ended June 30,							Six Months Ended June 30,
	2011		2010		Change			2011		2010		Change
Retail	$	14,550	$	14,146		2.9	%	$	29,125	$	28,242		3.1	%
Office		4,736		4,822		(1.8	)		9,486		9,192		3.2
Multifamily		2,326		2,411		(3.5	)		4,458		4,891		(8.9	)
Mixed-Use		—		—		—			—		—		—
	$	21,612	$	21,379		1.1	%	$	43,069	$	42,325		1.8	%

Same-store retail property operating income increased for the three and six months ended June 30, 2011 reflecting the impact of increased average percentage leased, which more than offset increased property tax expenses. Our same-store office portfolio experienced lower rental rates and increased operating expenses, offset by increases in the average percentage leased for the three months ended June 30, 2011, compared to the prior year period. For the six months ended June 30, 2011, the same-store office portfolio experienced an increase in the average percentage leased, which more than offset the lower rental rates and increased operating expenses. Same-store multifamily property operating income decreased for the three and six months ended June 30, 2011, due to increased property taxes, additional rent abatements given and more marketing and maintenance expenses to attract new tenants, which ultimately led to significant increases in occupancy during the quarter and at quarter end.

The overall portfolio (including the non-same store properties) leased status as of the end of the indicated quarter was as follows:

	June 30, 2011			March 31, 2011			June 30, 2010
Retail		94.0	%		94.3	%		96.6	%
Office		93.2	%		93.4	%		92.8	%
Mixed Use:
Retail		97.6	%		97.8	%		96.5	%
Hotel		89.5	%		88.2	%		88.5	%
Multifamily		97.7	%		92.1	%		93.2	%

During the second quarter of 2011, the Company signed 26 leases for approximately 125,000 square feet of retail and office space and 246 multifamily apartment leases. Renewals accounted for 67% of the comparable retail leases, 50% of the comparable office leases and 41% of the residential leases.

Retail

On a comparable space basis (i.e., leases for which there was a former tenant), the Company leased 20,260 square feet of retail space at an average cash-basis contractual rent decrease of 2% during the second quarter 2011. The average contractual rent on this comparable space for the first year of the new leases is $35.89 per square foot, compared to an average contractual rent of $36.61 per square foot for the last year of the prior leases. On a GAAP basis (including the impact of straight-line rents), average rent per square foot for the comparable retail space increased 4% for the second quarter 2011.

Office

On a comparable space basis, the Company leased 81,360 square feet of office space at an average cash-basis contractual rent decrease of 14% during the second quarter 2011. The average contractual rent on this comparable space for the first year of the new leases is $39.25 per square foot, compared to an average contractual rent of $45.54 per square foot for the last year of the prior leases. On a GAAP basis, average rent per square foot for the comparable office space decreased 1% for the second quarter 2011.

During the second quarter, a wholly owned subsidiary of the Company signed an agreement with Ancestry.com to lease 56,963 square feet of space at 160 King Street that is currently leased by DLA Piper, whose lease expires on February 28, 2012. The Ancestry.com lease has an initial term commencing on or about May 1, 2012 and expiring on or about April 30, 2019, with two five-year options to extend the lease (if properly exercised) through April 30, 2029. The base rent for the first year of the lease will be approximately $1.2 million, net of six months of rent abatements.

Multifamily

At June 30, 2011, the average monthly base rent per leased unit was $1,407 compared to an average monthly base rent per leased unit of $1,318 at March 31, 2011 and $1,358 at June 30, 2010.

Financings

On June 1, 2011, a wholly owned subsidiary of the Company closed a five-year, $84.5 million non-recourse mortgage loan secured by First & Main, an approximately 360,000 square foot, 16-story LEED Platinum certified office building located at 100 SW Main Street in Portland, Oregon. PNC Bank, National Association provided the financing, which carries a fixed interest rate per annum of 3.965% and is interest only. Proceeds of the loan were used for general corporate purposes, including working capital and future acquisitions.

Acquisitions

During the second quarter of 2011, the Company entered into an agreement to purchase the Lloyd District Portfolio, consisting of approximately 600,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The Lloyd District Portfolio is comprised of six office buildings within four contiguous blocks, including (i) a condominium interest in the 20-story Lloyd Tower, (ii) the 16-story Lloyd 700 Building and (iii) four low-rise landmark buildings within Oregon Square. Approximately 92% of the Lloyd District Portfolio’s rentable square feet are leased. Major tenants include Integra Telecom Holdings, Inc., Knowledge Learning Corp., PacifiCorp, the Tri-County Metropolitan Transportation District of Oregon and the Columbia River Inter-Tribal Fish Commission.

The Company completed the acquisition on July 1, 2011 for a purchase price of approximately $91.6 million. Funds required to close the acquisition were provided from the net proceeds of the Company’s IPO and were deposited into escrow on June 30, 2011.

Balance Sheet and Liquidity

At June 30, 2011, the Company had gross real estate assets of $1.6 billion and liquidity of $373.9 million comprised of cash and cash equivalents of $92.5 million, marketable securities of $31.4 million and $250 million of availability on its line of credit. The foregoing amounts do not include the $91.6 million held in escrow for the acquisition of the Lloyd District Portfolio as of June 30, 2011.

Dividends

The Company declared dividends on its shares of common stock of $0.21 per share for the second quarter of 2011. The dividends were declared on June 2, 2011 to holders of record on June 15, 2011 and were paid on June 30, 2011. Total dividends paid on shares of the Company’s common stock for the period from and including January 19, 2011 to June 30, 2011 were $0.38.

Additionally, the Company’s Board of Directors has declared a dividend on its common stock of $0.21 per share for the quarterly period ending September 30, 2011. The dividend will be paid on September 30, 2011 to stockholders of record on September 15, 2011.

Conference Call

The Company will hold a conference call to discuss the results for the second quarter 2011 on Wednesday, August 10, 2011 at 10:00 a.m. Pacific Daylight Time (“PDT”). To participate in the event by telephone, please dial 1-866-314-4865 and use the pass code 14460422. A telephonic replay of the conference call will be available beginning at 1:00 p.m. PDT on Wednesday, August 10, 2011 through Wednesday, August 24, 2011. To access the replay, dial 1-888-286-8010 and use the pass code 94414814. A live on-demand audio webcast of the conference call will be available on the Company’s website at www.americanassetstrust.com. A replay of the call will also be available on the Company’s website.

Supplemental Information

Supplemental financial information regarding the Company’s second quarter 2011 results may be found in the “Investor Relations” section of the Company’s website at www.americanassetstrust.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Financial Information

American Assets Trust, Inc.

Consolidated Balance Sheets

(In Thousands, Except Share Data)

	June 30, 2011			December 31, 2010
	(unaudited)
Assets
Real estate, at cost
Operating real estate	$	1,633,287		$	1,156,091
Construction in progress		1,144			925
Held for development		8,756			8,081
		1,643,187			1,165,097
Accumulated depreciation		(240,603	)		(221,997	)
Net real estate		1,402,584			943,100
Cash and cash equivalents		92,535			41,953
Restricted cash		8,077			4,729
Marketable securities		31,445			—
Accounts receivable, net		4,944			1,573
Deferred rent receivables, net		21,665			20,051
Notes receivable from affiliate		—			21,769
Investment in real estate joint ventures		—			39,816
Prepaid expenses and other assets		69,915			44,366
Purchase deposit		91,600			—
Total assets	$	1,722,765		$	1,117,357
Liabilities and equity
Liabilities:
Secured notes payable	$	944,279		$	851,547
Unsecured notes payable		—			38,013
Notes payable to affiliates		—			5,266
Accounts payable and accrued expenses		20,007			11,644
Security deposits payable		4,302			2,648
Other liabilities and deferred credits		56,922			39,058
Distributions in excess of earnings on real estate joint ventures		—			14,060
Total liabilities		1,025,510			962,236
Commitments and contingencies
Equity:
Owners’ equity		—			121,874
American Assets Trust, Inc. stockholders’ equity
Common stock $0.01 par value, 490,000,000 authorized, 39,281,839 outstanding at June 30, 2011		393			—
Additional paid-in capital		652,220			—
Accumulated deficit		(15,168	)		—
Total American Assets Trust, Inc. stockholders’ equity		637,445			—
Noncontrolling interests
Owners in consolidated real estate entities		—			33,247
Unitholders in the Operating Partnership		59,810			—
		59,810			33,247
Total equity		697,255			155,121
Total liabilities and equity	$	1,722,765		$	1,117,357

American Assets Trust, Inc.

Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Shares and Per Share Data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenue:
Rental income	$	49,794		$	28,414		$	95,913		$	56,509
Other property income		2,485			873			4,402			1,710
Total revenue		52,279			29,287			100,315			58,219
Expenses:
Rental expenses		14,572			4,870			27,039			9,864
Real estate taxes		5,617			2,992			9,666			5,948
General and administrative		3,825			1,821			7,064			3,408
Depreciation and amortization		14,277			7,509			26,767			14,739
Total operating expenses		38,291			17,192			70,536			33,959
Operating income		13,988			12,095			29,779			24,260
Interest expense		(14,063	)		(10,624	)		(27,142	)		(21,278	)
Early extinguishment of debt		—			—			(25,867	)		—
Loan transfer and consent fees		—			—			(9,019	)		—
Gain on acquisition		—			4,297			46,371			4,297
Other income (expense), net		530			71			(71	)		(916	)
Net income		455			5,839			14,051			6,363
Net income attributable to restricted shares		(132	)		—			(218	)		—
Net loss attributable to Predecessor’s noncontrolling interests in consolidated real estate entities		—			469			2,458			899
Net income attributable to Predecessor’s controlled owners’ equity		—			(6,308	)		(16,995	)		(7,262	)
Net (income) loss attributable to unitholders in the Operating Partnership		(104	)		—			225			—
Net income (loss) attributable to American Assets Trust, Inc. stockholders	$	219		$	—		$	(479	)	$	—
Net income (loss) attributable to common stockholders per share - basic	$	0.01					$	(0.01	)
Net income (loss) attributable to common stockholders per share - diluted	$	0.01					$	(0.01	)
Weighted average shares of common stock outstanding - basic		38,655,084						34,810,932
Weighted average shares of common stock outstanding - diluted		57,051,173						34,810,932
Dividends declared per common share	$	0.21					$	0.38

Reconciliation of Net Income to Funds From Operations and Funds From Operations As Adjusted

The Company’s FFO attributable to common stockholders and operating partnership unitholders, FFO as adjusted available to common stockholders and operating partnership unitholders and a reconciliation of both to net income is as follows (in thousands except shares and per share data):

	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Funds from Operations (FFO)
Net income	$	455		$	14,051
Depreciation and amortization of real estate assets		14,277			26,767
Depreciation and amortization on unconsolidated real estate joint ventures (pro rata)		—			688
FFO, as defined by NAREIT		14,732			41,506
Less: FFO attributable to Predecessor’s controlled and noncontrolled owners’ equity		—			(16,973	)
Less: Nonforfeitable dividends on incentive stock awards		(89	)		(139	)
FFO attributable to common stock and units	$	14,643		$	24,394
FFO per diluted share/unit	$	0.26		$	0.47
Weighted average number of common shares and units, diluted		57,258,886			51,528,587
FFO As Adjusted
FFO	$	14,732		$	41,506
Early extinguishment of debt		—			25,867
Loan transfer and consent fees		—			9,019
Gain on acquisition of controlling interests		—			(46,371	)
FFO as adjusted		14,732			30,021
Less: FFO as adjusted attributable to Predecessor’s controlled and noncontrolled owners’ equity		—			(2,462	)
Less: Nonforfeitable dividends on incentive stock awards		(89	)		(139	)
FFO as adjusted attributable to common stock and units	$	14,643		$	27,420
FFO as adjusted per diluted share/unit	$	0.26		$	0.53
Weighted average number of common shares and units, diluted		57,258,886			51,528,587

Reported results are preliminary and not final until the filing of our Form 10-Q with the Securities and Exchange Commission and, therefore, remain subject to adjustment.

Use of Non-GAAP Information

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. We also present FFO as adjusted, which represents FFO adjusted for certain identified items.

FFO and FFO as adjusted are supplemental non-GAAP financial measures. Management uses FFO and FFO as adjusted as supplemental performance measures because it believes that FFO and FFO as adjusted are beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and

amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO as adjusted reflects certain additional adjustments for items that management believes do not reflect the operational performance of our properties. Accordingly, FFO and FFO as adjusted should be considered only as supplements to net income as measures of our performance. FFO and FFO as adjusted should not be used as measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or service indebtedness. FFO and FFO as adjusted also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

About American Assets Trust, Inc.

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, that owns, operates, acquires and develops high quality retail and office properties in attractive, high-barrier-to-entry markets primarily in Southern California, Northern California, Hawaii and Oregon. The Company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes. The Company’s retail portfolio comprises approximately 3.0 million rentable square feet, and its office portfolio comprises approximately 2.4 million square feet. In addition the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and over 900 multifamily units. The Company intends to elect to be treated as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2011. For additional information, visit www.americanassetstrust.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s annual report on Form 10-K filed

on March 30, 2011, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Source: American Assets Trust, Inc.

Investor and Media Contact:

American Assets Trust

Robert F. Barton

Executive Vice President and Chief Financial Officer

858-350-2607

EX-99.2

SECOND QUARTER 2011

Supplemental Information

Investor and Media Contact:

American Assets Trust

Robert F. Barton

Executive Vice President and Chief Financial Officer

858-350-2607

Exhibit 99.2

Second Quarter 2011 Supplemental Information

Page 2

AAT’s portfolio is concentrated in high-barrier-to-entry markets

with favorable supply/demand characteristics

Market

Property

Type

No. of

Properties

Square

Feet/Units

San

Diego

Retail

Office

Multifamily

6

2

4

1,217,634

668,772

922 units

(1)

San

Francisco

Office

2

589,920

Oahu

Retail

Mixed-Use

2

1

549,695

96,569

(retail)/369

suites

Monterey

Retail

1

674,224

Los

Angeles

Office

1

194,268

San

Antonio

Retail

1

589,479

Portland

Office

1

363,763

(2)

Note:

Circled

areas

represent

all

markets

in

which

the

Company

currently

owns

and

operates

its

real

estate

assets. 

Circle

size

denotes

square

feet

/

units.

Square Feet

%

Retail

3.0 million

63%

Office

1.8 million

37%

Totals

4.8 million

(1)

Includes 122 RV spaces.

(2)

On July 1, 2011, the Company completed the acquisition of the Lloyd District Portfolio, which added an

additional office property consisting of approximately 600,000 rentable square feet in Portland, Oregon.

Such acquisition is not reflected in the map above.

Second Quarter 2011 Supplemental Information

Page 3

PAGE

1.

SECOND QUARTER 2011 EARNINGS PRESS RELEASE

2.

FINANCIAL HIGHLIGHTS

Consolidated Balance Sheets

5

Consolidated Statements of Operations

7

Funds From Operations (FFO), FFO As Adjusted & Funds Available For Distribution

8

Same-Store Portfolio Net Operating Income (NOI)

10

Same-Store Portfolio NOI Comparison

12

NOI By Region

13

NOI Breakdown

14

Property Revenue and Operating Expenses

15

Segment Capital Expenditures

17

Summary of Outstanding Debt

18

Market Capitalization

19

Summary of Redevelopment Opportunities

20

3.

PORTFOLIO DATA

Property Report

22

Retail Leasing Summary

24

Office Leasing Summary

25    

Lease Expirations

26

Portfolio Leased Statistics

28

Top Tenants – Retail

29

Top Tenants – Office

30

4.

APPENDIX

Glossary of Terms

32

INDEX

This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended,

or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely

on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not

guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ

materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; our failure to generate sufficient cash flows to service our

outstanding indebtedness; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; difficulties in identifying properties to acquire and completing acquisitions; our

failure to successfully operate acquired properties and operations; fluctuations in interest rates and increased operating costs; risks related to joint venture arrangements; our failure to obtain necessary outside

financing; on-going litigation; general economic conditions; financial market fluctuations; risks that affect the general retail environment; the competitive environment in which we operate; decreased rental rates

or increased vacancy rates; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural

disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for us to continue to qualify as a REIT for U.S. federal

income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect

changes in underlying assumptions or factors, or new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, refer

to our Annual Report on Form 10-K filed and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission.

Second Quarter 2011 Supplemental Information

FINANCIAL HIGHLIGHTS

Page 5

CONSOLIDATED BALANCE SHEETS

Assets

Real estate, at cost

   Operating real estate

$

1,633,287

$

1,156,091

   Construction in progress

1,144

925

   Held for development

8,756

8,081

1,643,187

1,165,097

   Accumulated depreciation

(240,603)

(221,997)

Net real estate

1,402,584

943,100

Cash and cash equivalents

92,535

41,953

Restricted cash

8,077

4,729

Marketable securities

31,445

-

Accounts receivable, net

4,944

1,573

Deferred rent receivables, net

21,665

20,051

Notes receivable from affiliate

-

21,769

Investment in real estate joint ventures

-

39,816

Prepaid expenses and other assets

69,915

44,366

Purchase deposit

91,600

-

Total assets

$

1,722,765

$

1,117,357

June 30,

December 31,

2011

2010

(Amounts in thousands, except share data)

Second Quarter 2011 Supplemental Information   

Second Quarter 2011 Supplemental Information

Page 6

Liabilities and equity

Liabilities:

Secured notes payable

$

944,279

$

851,547

Unsecured notes payable

-

38,013

Notes payable to affiliates

-

5,266

Accounts payable and accrued expenses

20,007

11,644

Security deposits payable

4,302

2,648

Other liabilities and deferred credits

56,922

39,058

Distributions in excess of earnings on real estate joint ventures

-

14,060

Total liabilities

1,025,510

962,236

Commitments and contingencies

Equity:

Owners' equity

-

121,874

American Assets Trust, Inc. stockholders' equity

Common stock $0.01 par value, 490,000,000 authorized, 39,281,839 outstanding at June 30,

2011

393

-

Additional paid-in capital

652,220

-

Accumulated deficit

(15,168)

-

Total American Assets Trust, Inc. stockholders' equity

637,445

-

Noncontrolling interests

Owners in consolidated real estate entities

-

33,247

Unitholders in the Operating Partnership

59,810

-

59,810

33,247

Total equity

697,255

155,121

Total liabilities and equity

$

1,722,765

$

1,117,357

June 30,

December 31,

2011

2010

CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands, except share data)

Second Quarter 2011 Supplemental Information

Page 7

CONSOLIDATED STATEMENTS OF OPERATIONS

June 30,

June 30,

Revenue:

Rental income

$

49,794

$

28,414

$

95,913

$

56,509

Other property income

2,485

873

4,402

1,710

        Total revenue

52,279

29,287

100,315

58,219

Expenses:

Rental expenses

14,572

4,870

27,039

9,864

Real estate taxes

5,617

2,992

9,666

5,948

General and administrative

3,825

1,821

7,064

3,408

Depreciation and amortization

14,277

7,509

26,767

14,739

        Total operating expenses

38,291

17,192

70,536

33,959

Operating income

13,988

12,095

29,779

24,260

Interest expense

(14,063)

(10,624)

(27,142)

(21,278)

Early extinguishment of debt

-

-

(25,867)

-

Loan transfer and consent fees

-

-

(9,019)

-

Gain on acquisition

-

4,297

46,371

4,297

Other income (expense), net

530

71

(71)

(916)

Net income

455

5,839

14,051

6,363

Net income attributable to restricted shares

(132)

-

(218)

-

Net loss attributable to Predecessor's noncontrolling interests in consolidated real

     estate entities

-

469

2,458

899

Net income attributable to Predecessor's controlled owners' equity

-

(6,308)

(16,995)

(7,262)

Net (income) loss attributable to unitholders in the Operating Partnership

(104)

-

225

-

Net income (loss) attributable to American Assets Trust, Inc. stockholders

$

219

$

-

$

(479)

$

-

Net income (loss) attributable to common stockholders per share - basic

$

0.01

$

(0.01)

Net income (loss) attributable to common stockholders per share - diluted

$

0.01

$

(0.01)

Weighted average shares of common stock outstanding - basic

Weighted average shares of common stock outstanding - diluted

Dividends declared per common share

$

0.21

$

0.38

38,655,084

34,810,932

57,051,173

34,810,932

Three Months Ended

Six Months Ended

2011

2010

2011

2010

(Amounts in thousands, except share and per share data)

Second Quarter 2011 Supplemental Information

Page 8

FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION

(Amounts in thousands, except share and per share data)

Page 9

FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION

(CONTINUED)

(Amounts in thousands, except shares and per share data)

(1)

(4)

(5)

(6)

Second Quarter 2011 Supplemental Information  

FFO as adjusted

$

14,732

$

30,021

Adjustments:

Tenant

improvements,

leasing

commissions

and

maintenance

capital

expenditures

(2,046)

(3,491)

Net effect of straight-line rents

(1,111)

(1,465)

Amortization of net above (below) market rents

386

781

Net effect of other lease intangibles

266

536

Amortization of debt issuance costs and debt fair value adjustment

1,030

1,895

Non-cash compensation expense

699

1,190

Unrealized gains on marketable securities

(318)

(53)

Nonforfeitable dividends on incentive stock awards

(89)

(139)

FAD

$

13,549

$

29,275

Summary of Capital Expenditures

Tenant improvements and leasing commissions

$

1,684

$

2,832

Maintenance capital expenditures

362

659

$

2,046

$

3,491

June 30, 2011

June 30, 2011

Three Months Ended

Six Months Ended

   Notes:

(1)

See Glossary of Terms.

(2)

For the three and six months ended June 30, 2011, the weighted average common shares and units used to compute FFO and FFO as adjusted per diluted share/unit include operating 

partnership units and unvested restricted stock awards that are subject to time vesting.  The shares/units used to compute FFO and FFO as adjusted per diluted share/unit include 

additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented.  For the six months ended June 30, 2011, 

the weighted average shares and units outstanding have been weighted for the full six months, not the date of our initial public offering.

(3)

Represents the gain recognized upon acquisition of the outside ownership interests in the Solana Beach Centre entities and the Waikiki Beach Walk entities on January 19, 2011, in 

which we previously held a noncontrolling interest.

(4)

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable 

balances. 

(5)

Represents the adjustment related to the acquisition of buildings with above (below ) market rents.

(6)

Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at 

The Landmark at One Market and retail space at Waikiki Beach Walk - Retail.

(7)

Computations of per share amounts are made independently for the three and six months ended June 30, 2011.  Therefore, the sum of per share amounts from the three months ended 

June 30 and March 31, 2011 may not agree with the per share amounts for the six months ended June 30, 2011.

Funds Available for Distribution (FAD)

Second Quarter 2011 Supplemental Information

Page 10

SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI)

Notes:

(1)   Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2011 and 2010.  See Glossary of Terms.

(2)   Represents

the

straight-line

rent

income

recognized

during

the

period

offset

by

cash

received

during

the

period

and

the

provision

for

bad

debts

recorded

for

deferred

rent

receivable

balances.

(3)   Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4)   Represents adjustments related to amortization of lease incentives paid to tenants.

Second Quarter 2011 Supplemental Information

Page 11

SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI)

Real estate rental revenue

Same-store portfolio

$

39,865

$

13,203

$

6,785

$

-

$

59,853

Non-same store portfolio

3,564

16,561

-

20,337

40,462

Total

43,429

29,764

6,785

20,337

100,315

Real estate expenses

Same-store portfolio

10,781

3,933

2,587

-

17,301

Non-same store portfolio

671

5,649

-

13,084

19,404

Total

11,452

9,582

2,587

13,084

36,705

Net Operating Income (NOI), GAAP basis

Same-store portfolio

29,084

9,270

4,198

-

42,552

Non-same store portfolio

2,893

10,912

-

7,253

21,058

Total

$

31,977

$

20,182

$

4,198

$

7,253

$

63,610

Same-store portfolio NOI, GAAP basis

$

29,084

$

9,270

$

4,198

$

-

$

42,552

Net effect of straight-line rents

311

(148)

-

-

163

Amortization of net above (below) market rents

(357)

686

-

-

329

Net effect of other lease intangibles

-

185

-

-

185

Same-store portfolio NOI, cash basis

$

29,038

$

9,993

$

4,198

$

-

$

43,229

Notes:

(1)

(2)

(3)

Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4)

Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2011 and 2010.  See Glossary of Terms.

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

Represents adjustments related to amortization of lease incentives paid to tenants.

Six Months Ended June 30, 2011

Retail

Office

Multifamily

Mixed-Use

Total

(Amounts in thousands)

(1)

(1)

(1)

(2)

(4)

(3)

Second Quarter 2011 Supplemental Information

Page 12

SAME-STORE PORTFOLIO NOI COMPARISON

Cash Basis:

Retail

$

14,499

$

14,189

2.2

%

Office

4,984

5,095

(2.2)

Multifamily

2,066

2,410

(14.3)

Mixed-Use

-

-

-

$

21,549

$

21,694

(0.7)

%

GAAP Basis:

Retail

$

14,509

$

14,146

2.6

%

Office

4,520

4,822

(6.3)

Multifamily

2,066

2,411

(14.3)

Mixed-Use

-

-

-

$

21,095

$

21,379

(1.3)

%

Cash Basis:

Retail

$

29,038

$

28,165

3.1

%

Office

9,993

9,708

2.9

Multifamily

4,198

4,891

(14.2)

Mixed-Use

-

-

-

$

43,229

$

42,764

1.1

%

GAAP Basis:

Retail

$

29,084

$

28,242

3.0

%

Office

9,270

9,192

0.8

Multifamily

4,198

4,891

(14.2)

Mixed-Use

-

-

-

$

42,552

$

42,325

0.5

%

Six Months Ended June 30,

2011

2010

Change

2011

2010

Change

Three Months Ended June 30,

(Amounts in thousands)

Second Quarter 2011 Supplemental Information

Page 13

NOI BY REGION

Southern California

NOI, GAAP basis

(1)

$

6,517

$

4,521

$

2,066

$

-

$

13,104

Net effect of straight-line rents

(2)

(85)

(71)

-

-

(156)

Amortization of net above (below) market rents

(3)

(140)

122

-

-

(18)

Net effect of other lease intangibles

(4)

-

92

-

-

92

NOI, cash basis

6,292

4,664

2,066

-

13,022

Northern California

NOI, GAAP basis

(1)

2,210

3,457

-

-

5,667

Net effect of straight-line rents

(2)

(50)

(652)

-

-

(702)

Amortization of net above (below) market rents

(3)

(67)

399

-

-

332

Net effect of other lease intangibles

(4)

-

184

-

-

184

NOI, cash basis

2,093

3,388

-

-

5,481

Hawaii

NOI, GAAP basis

(1)

4,462

-

-

4,131

8,593

Net effect of straight-line rents

(2)

126

-

-

(114)

12

Amortization of net above (below) market rents

(3)

(68)

-

-

220

152

Net effect of other lease intangibles

(4)

-

-

-

(10)

(10)

NOI, cash basis

4,520

-

-

4,227

8,747

Oregon

NOI, GAAP basis

(1)

-

1,845

-

-

1,845

Net effect of straight-line rents

(2)

-

(344)

-

-

(344)

Amortization of net above (below) market rents

(3)

-

(22)

-

-

(22)

Net effect of other lease intangibles

(4)

-

-

-

-

-

NOI, cash basis

-

1,479

-

-

1,479

Texas

NOI, GAAP basis

(1)

2,881

-

-

-

2,881

Net effect of straight-line rents

(2)

79

-

-

-

79

Amortization of net above (below) market rents

(3)

(58)

-

-

-

(58)

Net effect of other lease intangibles

(4)

-

-

-

-

-

NOI, cash basis

2,902

-

-

-

2,902

Total

NOI, GAAP basis

(1)

16,070

9,823

2,066

4,131

32,090

Net effect of straight-line rents

(2)

70

(1,067)

-

(114)

(1,111)

Amortization of net above (below) market rents

(3)

(333)

499

-

220

386

Net effect of other lease intangibles

(4)

-

276

-

(10)

266

NOI, cash basis

$

15,807

$

9,531

$

2,066

$

4,227

$

31,631

Notes:

Three Months Ended June 30, 2011

Retail

Office

Multifamily

Mixed-Use

Total

(Amounts in thousands)

(1) See Glossary of Terms.

(2) Represents

the

straight-line

rent

income

recognized

during

the

period

offset

by

cash

received

during

the

period

and

the

provision

for

bad

debts

recorded

for

deferred

rent

receivable

balances.

(3) Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4) Represents

adjustments

related

to

amortization

of

lease

incentives

paid

to

tenants

and

amortization

of

lease

intangibles

and

straight-line

rent

expense

for

our

leases

of

the

Annex

at

The

Landmark

at

One

Market

and

retail

space

at

Waikiki

Beach

Walk

-

Retail.

Second Quarter 2011 Supplemental Information

Page 14

NOI BREAKDOWN

Portfolio Cash NOI Breakdown

Portfolio GAAP NOI Breakdown

Portfolio Diversification by Geographic Region

Portfolio Diversification by Segment

Portfolio Diversification by Geographic Region

Portfolio Diversification by Segment

Southern

California

41%

Northern

California

17%

Hawaii

28%

Oregon

5%

Texas

9%

Retail

50%

Office

30%

Multifamily

7%

Mixed-Use

13%

Southern

California

41%

Northern

California

17%

Hawaii

27%

Oregon

6%

Texas

9%

Retail

50%

Office

31%

Multifamily

6%

Mixed-Use

13%

Second Quarter 2011 Supplemental Information

Page 15

PROPERTY REVENUE AND OPERATING EXPENSES

Retail Portfolio

Carmel Country Plaza

$

1,744

$

42

$

384

$

(361)

Carmel Mountain Plaza

4,429

113

1,278

(1,433)

South Bay Marketplace

1,024

23

316

(374)

Rancho Carmel Plaza

360

36

97

(120)

Lomas Santa Fe Plaza

2,592

76

514

(650)

Solana Beach Towne Centre

2,656

36

732

(698)

Del Monte Center

4,088

423

1,695

(2,059)

The Shops at Kalakaua

769

40

79

(134)

Waikele Center

8,401

628

2,075

(2,756)

Alamo Quarry Market

5,944

124

2,565

(2,891)

Subtotal Retail Portfolio

$

32,007

$

1,541

$

9,735

$

(11,476)

Office Portfolio

Torrey Reserve Campus

$

7,378

$

295

$

252

$

(1,814)

Solana Beach Corporate Centre

3,043

15

61

(756)

Valencia Corporate Center

2,239

1

19

(755)

160 King Street

2,722

663

522

(1,205)

The Landmark at One Market

9,820

123

449

(3,566)

First & Main

3,233

54

-

(984)

Subtotal Office Portfolio

$

28,435

$

1,151

$

1,303

$

(9,080)

Multifamily Portfolio

Loma Palisades

$

4,784

$

334

$

-

$

(1,763)

Imperial Beach Gardens

1,189

83

-

(402)

Mariner's Point

551

50

-

(208)

Santa Fe Park RV Resort

372

30

-

(214)

Subtotal Multifamily Portfolio

$

6,896

$

497

$

-

$

(2,587)

Expenses  

Property

Base Rent

Income

Reimbursements

Six Months Ended June 30, 2011

Additional

Property

Property

Billed Expense

Operating

(Amounts in thousands)

(5)

(5)

(6)

(7)

(8)

(9)

(10)

(1)

(2)

(3)

(4)

Second Quarter 2011 Supplemental Information

Page 16

PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)

(Amounts in thousands)

Second Quarter 2011 Supplemental Information

Page 17

SEGMENT CAPITAL EXPENDITURES

Retail Portfolio

$

280

$

203

$

483

$

12

$

-

$

495

Office Portfolio

1,404

41

1,445

-

87

1,532

Multifamily Portfolio

-

83

83

-

-

83

Mixed-Use Portfolio

-

35

35

-

-

35

Total

$

1,684

$

362

$

2,046

$

12

$

87

$

2,145

Retail Portfolio

$

658

$

277

$

935

$

12

$

-

$

947

Office Portfolio

2,174

115

2,289

-

182

2,471

Multifamily Portfolio

-

137

137

-

-

137

Mixed-Use Portfolio

-

130

130

-

-

130

Total

$

2,832

$

659

$

3,491

$

12

$

182

$

3,685

Total Capital

Expenditures

Segment

Tenant

Improvements

and Leasing

Commissions

Maintenance

Capital

Expenditures

Total Capital

Expenditures

Segment

Tenant

Improvements

and Leasing

Commissions

Maintenance

Capital

Expenditures

Redevelopment

and Expansions

New

Development

Redevelopment

and Expansions

New

Development

Total Tenant

Improvements,

Leasing

Commissions and

Maintenance

Expenditures

Total Tenant

Improvements,

Leasing

Commissions and

Maintenance

Expenditures

Three Months Ended June 30, 2011

Six Months Ended June 30, 2011

(Amounts in thousands)

Second Quarter 2011 Supplemental Information

Page 18

Maturity Date

Alamo Quarry Market

(1)(2)

$

97,026

5.67

%

$

7,567

January 8, 2014

$

91,717

160 King Street

(3)

32,182

5.68

3,350

May 1, 2014

27,513

Waikele Center

(4)

140,700

5.15

7,360

November 1, 2014

140,700

The Shops at Kalakaua

(4)

19,000

5.45

1,053

May 1, 2015

19,000

The Landmark at One Market

(2)(4)

133,000

5.61

7,558

July 5, 2015

133,000

Del Monte Center

(4)

82,300

4.93

4,121

July 8, 2015

82,300

First & Main

(4)

84,500

3.97

3,397

July 1, 2016

84,500

Imperial Beach Gardens

(4)

20,000

6.16

1,250

September 1, 2016

20,000

Mariner's Point

(4)

7,700

6.09

476

September 1, 2016

7,700

South Bay Marketplace

(4)

23,000

5.48

1,281

February 10, 2017

23,000

Waikiki Beach Walk - Retail

(4)

130,310

5.39

7,020

July 1, 2017

130,310

Solana Beach Corporate Centre III-IV

(5)

37,330

6.39

2,418

August 1, 2017

35,136

Loma Palisades

(4)

73,744

6.09

4,553

July 1, 2018

73,744

Torrey Reserve - North Court

(1)

22,046

7.22

1,836

June 1, 2019

19,443

Torrey Reserve - VCI, VCII, VCIII

(1)

7,421

6.36

560

June 1, 2020

6,439

Solana Beach Corporate Centre I-II

(1)

11,860

5.91

855

June 1, 2020

10,169

Solana  Beach Towne Centre

(1)

39,533

5.91

2,849

June 1, 2020

33,898

Total / Weighted Average

$

961,652

5.45

%

$

57,504

$

938,569

Unamortized fair value adjustment

(17,373)

Debt Balance

$

944,279

Fixed Rate Debt Ratio

Fixed rate debt

100%

Variable rate debt

-

Notes:

(1)

Principal payments based on a 30-year amortization schedule.

(2)

Maturity date is the earlier of the loan maturity date under the loan agreement, or the "Anticipated Repayment Date" as specifically defined in the loan agreement, which is the date after which substantial

economic penalties apply if the loan has not been paid off.

(3)

Principal payments based on a 20-year amortization schedule.

(4)

Interest only.

(5)

Loan is interest only through August 2012.  Beginning in September 2012, principal payments are based on a 30-year amortization schedule.

Balance at

Debt

June 30, 2011

Interest Rate

Service

Maturity

Amount

Outstanding at

Annual Debt

SUMMARY OF OUTSTANDING DEBT

(Amounts in thousands)

Second Quarter 2011 Supplemental Information

Page 19

MARKET CAPITALIZATION

Second Quarter 2011 Supplemental Information

Page 20

SUMMARY OF REDEVELOPMENT OPPORTUNITIES

Potential Future Development/Redevelopment Pipeline

Property

Location

Opportunity

Solana Beach Corporate Centre (Building 5)

Solana Beach, CA

$

5,800

$

-

Lomas Santa Fe Plaza Expansion

Solana Beach, CA

17,000

-

Torrey Reserve Phase III

San Diego, CA

17,200

-

Torrey Reserve Phase IV

San Diego, CA

17,000

-

Sorrento Pointe

San Diego, CA

30,300

-

Solana Beach Towne Centre II

Solana Beach, CA

1,000

12

Total

$

88,300

$

12

Complete the facade improvements to the Solana

Beach Towne Centre.

to Date

Construction of a new 10,300 square foot building

and structured parking for retail/restaurant use

oriented toward the Solana Beach Towne Centre.

Expansion of 30,700 square feet and the renovation

of 14,787 square feet for a combined project of

45,487 square feet, plus structured parking.

Construction of three additional commercial

buildings (retail, restaurant, office and medical) for

a total of 41,692 square feet, and a 34,603 square

foot underground parking structure.

Estimated

Cost

Construction Cost

Construction of two 20,000 square foot commercial

buildings (restaurant and office) for a total of 40,000

square feet atop subterranean parking.

Construction of two class "A" office buildings for a

total of 79,053 square feet with subterranean

parking.

(Dollar amounts in thousands)

Note: The Lloyd District Portfolio development pipeline is not included as the property was not acquired until July 1, 2011.

Second Quarter 2011 Supplemental Information

PORTFOLIO DATA

Second Quarter 2011 Supplemental Information

Page 22

PROPERTY REPORT

As of June 30, 2011

Net

Number

Rentable

Year Built/

of

Square

Location

Renovated

Buildings

Feet

(1)

Retail Properties

Carmel Country Plaza

San Diego, CA

1991

9

77,813

100.0

%

$

3,515,846

$

45.18

Sharp Healthcare, Frazee Industries Inc.

Carmel Mountain Plaza

(7)

San Diego, CA

1994

13

520,228

82.9

8,686,016

20.14

Sears

Sports Authority, Reading Cinemas

South Bay Marketplace

(7)

San Diego, CA

1997

9

132,873

100.0

2,067,796

15.56

Office Depot Inc., Ross Dress for Less

Rancho Carmel Plaza

San Diego, CA

1993

3

30,421

74.5

713,589

31.47

Oggi's

Pizza & Brewing Co., Sprint PCS Assets

Lomas Santa Fe Plaza

Solana Beach, CA

1972/1997

9

209,569

97.6

5,257,257

25.71

Vons, Ross Dress for Less

Del Monte Center

(7)

Monterey, CA

1967/1984/2006

16

674,224

97.2

8,789,864

13.41

Macy's, KLA Monterey

Century Theatres, Macy's Furniture Gallery

The Shops at Kalakaua

Honolulu, HI

1971/2006

3

11,671

100.0

1,535,028

131.52

Whalers General Store, Diesel U.S.A. Inc.

Waikele

Center

Waipahu, HI

1993/2008

9

538,024

90.9

17,014,540

34.81

Old Navy, Officemax

Alamo Quarry Market

(7)

San Antonio, TX

1997/1999

16

589,479

98.9

11,808,839

20.26

Regal Cinemas

Bed Bath & Beyond, Whole Foods Market

Subtotal/Weighted Average Retail Portfolio

87

2,784,302

93.7

%

$

59,388,775

$

22.77

Office Properties

Torrey Reserve Campus

San Diego, CA

1996-2000

9

456,801

93.1

%

$

14,795,889

$

34.78

Valencia Corporate Center

Santa Clarita, CA

1999-2007

3

194,268

80.9

4,493,083

28.58

160 King Street

San Francisco, CA

2002

1

167,986

95.2

5,467,207

34.18

Subtotal/Weighted Average Office Portfolio

13

819,055

90.7

%

$

24,756,179

$

33.34

Total/Weighted Average Retail and Office Portfolio

100

3,603,357

93.0

%

$

84,144,954

$

25.11

Number

Year Built/

of

Location

Renovated

Buildings

Units

Loma Palisades

San Diego, CA

1958/2001-2008

80

548

100.0

%

$

10,392,072

$

1,580

Imperial Beach Gardens

Imperial Beach, CA

1959/2008-present

26

160

96.9

2,674,296

1,437

Mariner's Point

Imperial Beach, CA

1986

8

88

98.9

1,173,900

1,124

Santa Fe Park RV Resort

(8)

San Diego, CA

1971/2007-2008

1

126

88.0

968,388

728

Total/Weighted Average Multifamily Portfolio

115

922

97.7

%

$

15,208,656

$

1,407

Net

Number

Rentable

Year Built/

of

Square

Location

Renovated

Buildings

Feet

(1)

Retail Property

Solana Beach Towne Centre

Solana Beach, CA

1973/2000/2004

12

246,730

97.7

%

$

5,306,176

$

22.01

Dixieline Probuild, Marshalls

Office Properties

Solana Beach Corporate Centre

Solana Beach, CA

1982/2005

4

211,971

84.1

$

5,691,424

$

31.94

The Landmark at One Market

(9)

San Francisco, CA

1917/2000

1

421,934

100.0

18,289,232

43.35

First & Main

Portland, OR

2010

1

363,763

96.5

10,548,509

30.04

Subtotal/Weighted Average Office Portfolio

6

997,668

95.4

%

$

34,529,165

$

36.30

Total/Weighted Average Retail and Office Portfolio

18

1,244,398

95.8

%

$

39,835,341

$

33.41

Lowe's, Kmart, Sports Authority,

Foodland Super Martket

Square Foot

(4)

Property

Leased

(2)

Base Rent

(3)

Leased Unit

(4)

Non -

Same Store Retail and Office Portfolios

Same -

Store Multifamily Portfolio

Average

Monthly

Percentage

Annualized

Base Rent per

Same -

Store Retail and Office Portfolios

Annualized

Base Rent

Retail Anchor Tenant(s)

(5)

Other Principal Retail Tenants

(6)

Percentage

Annualized

per Leased

Property

Leased

(2)

Base Rent

(3)

Square Foot

(4)

Annualized

Base Rent

Property

Retail Anchor Tenant(s)

(5)

Other Principal Retail Tenants

(6)

Percentage

Annualized

per Leased

Leased

(2)

Base Rent

(3)

Second Quarter 2011 Supplemental Information

Page 23

PROPERTY REPORT (CONTINUED)

Net

Number

Rentable

Year Built/

of

Square

Location

Renovated

Buildings

Feet

(1)

Waikiki Beach Walk - Retail

Honolulu, HI

2006

3

96,569

97.6

%

$

9,388,624

$

99.57

Yardhouse, Ruths Chris

Number

Year Built/

of

Location

Renovated

Buildings

Units

Waikiki Beach Walk - Embassy Suites™

Honolulu, HI

2008

2

369

87.3

%

$

233.94

$

204.23

Notes:

(1)

(2)

(3)

(4)

(5)

Retail anchor tenants are defined as retail tenants leasing 50,000 square feet or more.

(6)

Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants.

(7)

Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the following table:

Square Footage

Aggregate

Number of

Leased Pursuant

Annualized

Property

Ground Leases

to Ground Leases

Base Rent

Carmel Mountain Plaza

6

127,112

1,020,900

$    

South Bay Marketplace

1

2,824

81,540

$         

Del Monte Center

2

295,100

201,291

$       

Alamo Quarry Market

4

31,994

428,250

$       

(8)

(9)

(10)

The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended June 30, 2011, the highest average monthly occupancy rate for this property was 98.0%, occurring in July

2010, and the lowest average monthly occupancy rate for this property was 60.0%, occurring in November 2010. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments.

This property contains 421,934 net rentable square feet consisting of The Landmark at One Market (377,714 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent

six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2016, which we have the option to extend until 2031 pursuant to three five-year

extension options.

Average occupancy represents the percentage of available units that were sold during the 6-month period ended June 30, 2011, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the

period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for

the 6-month period ended June 30, 2011, by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the 6-month period ended June 30, 2011 and is calculated by multiplying average occupancy by

the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services.

Hotel Portion

Occupancy

(10)

Daily Rate

(10)

Room

(10)

The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each

of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally

determined consistently with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines.

Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property includes square footage under leases as of June 30, 2011, including leases which may not have commenced as of June 30, 2011. Percentage leased for our

multifamily properties includes total units rented as of June 30, 2011.

Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2011, by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant

reimbursements for real estate taxes, insurance, common area or other operating expenses.

Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of June 30, 2011. Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of June 30,

2011.

Non - Same Store Mixed-Use Portfolio

Annualized

Base Rent

Retail Anchor

Tenant(s)

(5)

Other Principal Retail

Tenants

(6)

Percentage

Annualized

per Leased

Retail Portion

Leased

(2)

Base Rent

(3)

Square Foot

(4)

Annualized

Revenue per

Average

Average

Available

As of June 30, 2011

Second Quarter 2011 Supplemental Information

Page 24

RETAIL LEASING SUMMARY

As of June 30, 2011

Second Quarter 2011 Supplemental Information

Page 25

OFFICE LEASING SUMMARY

As of June 30, 2011

Total Lease Summary -

Comparable

(1)

Number of

Quarter

Leases Signed

Lease Term

(4)

2nd Quarter 2011

6

100

%

81,360

$

39.25

$

45.54

$

(512,187)

(13.8)

%

(0.9)

%

5.8

$

231,839

$

2.85

1st Quarter 2011

10

100

31,298

32.88

37.54

(145,946)

(12.4)

(2.3)

2.5

57,520

1.84

Total 6 months

16

100

%

112,658

$

37.48

$

43.32

$

(658,133)

(13.5)

%

(1.2)

%

4.9

$

289,359

$

2.57

New

Lease

Summary

-

Comparable

(1)

Number of

Quarter

Leases Signed

Lease Term

(4)

2nd Quarter 2011

3

50

%

68,085

$

40.69

$

46.47

$

(393,958)

(12.5)

%

1.1

%

6.5

$

212,691

$

3.12

1st Quarter 2011

2

20

5,066

33.90

42.78

(44,982)

(20.8)

(14.0)

4.2

5,938

1.17

Total 6 months

5

31

%

73,151

$

40.22

$

46.22

$

(438,940)

(13.0)

%

0.1

%

6.4

$

218,629

$

2.99

Renewal

Lease

Summary

-

Comparable

(1)(5)

Number of

Quarter

Leases Signed

Lease Term

(4)

2nd Quarter 2011

3

50

%

13,275

$

31.86

$

40.76

$

(118,229)

(21.8)

%

(12.8)

%

1.7

$

19,149

$

1.44

1st Quarter 2011

8

80

26,232

32.68

36.53

(100,964)

(10.5)

0.5

2.2

51,582

1.97

Total 6 months

11

69

%

39,507

$

32.40

$

37.95

$

(219,193)

(14.6)

%

(4.3)

%

2.0

$

70,731

$

1.79

Total Lease Summary -

Comparable and Non-Comparable

Number of

Quarter

Leases Signed

Signed

2nd Quarter 2011

9

94,851

$

38.25

5.8

$

711,785

$

7.50

1st Quarter 2011

14

43,502

32.44

2.7

141,420

3.25

Total 6 months

23

138,353

$

36.42

4.8

$

853,205

$

6.17

(1) Comparable leases represent those leases signed on spaces for which there was a previous lease.

(2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.

(3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.

(4) Weighted average is calculated on the basis of square footage.

(5) Excludes renewals at fixed contractual rates specified in the lease.

Tenant

Net Rentable

Contractual

Annual

Change

Cash Basis

Straight-Line

Weighted

Average

Tenant

Improvements

Improvements

& Incentives

Basis % Change

Leases Signed

Signed

Per Sq. Ft.

(2)

Per Sq. Ft.

(3)

in Rent

% of Comparable

Square Feet

Rent

Prior Rent

% Change

Rent

Over Prior Rent

Over Prior Rent

& Incentives

Per Sq. Ft.

in Rent

Tenant

Net Rentable

Contractual

Annual

Change

Cash Basis

Straight-Line

Weighted

Average

Tenant

Improvements

Improvements

& Incentives

Basis % Change

% of Comparable

Square Feet

Prior Rent

% Change

Per Sq. Ft.

Tenant

Net Rentable

Contractual

Annual

Change

Cash Basis

Straight-Line

Weighted

Average

Tenant

Improvements

Improvements

& Incentives

Over Prior Rent

Over Prior Rent

& Incentives

Basis % Change

Leases Signed

Signed

Per Sq. Ft.

(2)

Per Sq. Ft.

(3)

in Rent

% of Comparable

Square Feet

Rent

Prior Rent

% Change

Leases Signed

Signed

Per Sq. Ft.

(2)

Per Sq. Ft.

(3)

Net Rentable

Contractual

Weighted

Average

Tenant

Improvements

Square Feet

Rent

Improvements

& Incentives

Per Sq. Ft.

(2)

Lease Term

(4)

& Incentives

Per Sq. Ft.

Per Sq. Ft.

Tenant

Over Prior Rent

Over Prior Rent

& Incentives

Second Quarter 2011 Supplemental Information

Page 26

LEASE EXPIRATIONS

Assumes no exercise of lease options

Office

Retail

Mixed-Use (Retail Portion Only)

Total

Expiring

Expiring

Expiring

Expiring

Sq. Ft.

Sq. Ft.

Sq. Ft.

Sq. Ft.

21,028

1.2

%

0.4

%

$

12.17

11,129

0.4

%

0.2

%

$

23.76

7,615

7.9

%

0.2

%

$

40.76

39,772

0.8

%

$

20.89

39,287

2.2

0.8

28.90

55,920

1.8

1.1

31.69

360

0.4

0.0

194.88

95,567

1.9

31.16

154,530

8.5

3.1

33.10

329,256

10.9

6.7

24.05

6,184

6.4

0.1

163.76

489,970

9.9

28.67

188,542

10.4

3.8

33.55

519,415

17.1

10.5

24.17

7,065

7.3

0.1

145.95

715,022

14.5

27.84

90,514

5.0

1.8

34.69

427,246

14.1

8.6

26.03

1,959

2.0

0.0

116.83

519,719

10.5

27.88

207,619

11.4

4.2

37.39

221,132

7.3

4.5

25.37

12,697

13.1

0.3

153.03

441,448

8.9

34.70

151,668

8.3

3.1

29.72

122,640

(4)(5)

4.0

2.5

37.21

10,191

10.6

0.2

171.11

284,499

5.8

38.01

120,901

(2)

6.7

2.4

38.74

111,249

3.7

2.3

25.00

4,628

4.8

0.1

134.78

236,778

4.8

34.16

36,226

2.0

0.7

45.50

737,758

24.3

14.9

15.51

4,673

4.8

0.1

139.02

778,657

15.7

17.64

225,679

(3)

12.4

4.6

44.25

70,197

2.3

1.4

26.80

11,690

12.1

0.2

51.73

307,566

6.2

40.55

225,108

12.4

4.6

35.12

118,506

3.9

2.4

8.79

17,843

18.5

0.4

41.30

361,457

7.3

26.79

Thereafter

208,215

11.4

4.2

32.74

120,381

4.1

2.4

25.71

9,382

9.7

0.2

46.20

337,978

6.9

30.61

Signed Leases

38,437

2.1

0.8

-

19,537

0.6

0.4

-

-

-

-

-

57,974

1.2

-

Not Commenced

Available

108,969

6.0

2.2

-

166,666

5.5

3.4

-

2,282

2.4

0.0

-

277,917

5.6

-

Total

1,816,723

100.0

%

36.7

%

$

32.63

3,031,032

100.0

%

61.3

%

$

21.13

96,569

100.0

%

1.9

%

$

97.22

4,944,324

100.0

%

$

26.84

Assumes all lease options are exercised

Office

Retail

Mixed-Use (Retail Portion Only)

Total

Expiring

Expiring

Expiring

Expiring

Sq. Ft.

Sq. Ft.

Sq. Ft.

Sq. Ft.

21,028

1.2

%

0.4

%

$

12.17

11,129

0.4

%

0.2

%

$

23.76

7,615

7.9

%

0.2

%

$

40.76

39,772

0.8

%

$

20.89

28,549

1.6

0.6

25.14

47,522

1.6

1.0

30.59

360

0.4

0.0

194.88

76,431

1.5

29.33

87,482

4.8

1.8

35.87

111,839

3.7

2.3

29.77

6,184

6.4

0.1

163.76

205,505

4.2

36.40

87,648

4.8

1.8

36.00

104,912

3.5

2.1

36.19

7,065

7.3

0.1

145.95

199,625

4.0

39.99

19,184

1.1

0.4

32.81

179,978

5.9

3.6

35.58

1,959

2.0

0.0

116.83

201,121

4.1

36.11

107,157

5.9

2.2

36.64

44,830

1.5

0.9

39.24

12,697

13.1

0.3

153.03

164,684

3.3

46.32

133,920

7.4

2.7

29.50

66,344

(4)

2.2

1.3

33.32

10,191

10.6

0.2

171.11

210,455

4.3

37.56

74,500

4.1

1.5

29.71

84,432

2.8

1.7

30.71

4,628

4.8

0.1

134.78

163,560

3.3

33.20

96,210

5.3

1.9

31.49

186,879

6.2

3.8

23.38

4,673

4.8

0.1

139.02

287,762

5.8

27.97

55,454

3.1

1.1

35.58

142,792

4.7

2.9

22.08

11,690

12.1

0.2

51.73

209,936

4.2

27.29

88,652

4.9

1.8

33.24

299,889

9.9

6.1

15.58

17,843

18.5

0.4

41.30

406,384

8.2

20.56

Thereafter

869,533

(2)(3)

47.7

17.6

38.35

1,564,283

(5)

51.5

31.6

19.20

9,382

9.7

0.2

46.20

2,443,198

49.5

26.12

Signed Leases

38,437

2.1

0.8

-

19,537

0.6

0.4

-

-

-

-

-

57,974

1.2

-

Not Commenced

Available

108,969

6.0

2.2

-

166,666

5.5

3.4

-

2,282

2.4

0.0

-

277,917

5.6

-

Total

1,816,723

100.0

%

36.8

%

$

32.63

3,031,032

100.0

%

61.3

%

$

21.13

96,569

100.0

%

1.9

%

$

97.22

4,944,324

100.0

%

$

26.84

Per Sq. Ft.

(1)

2017

2018

2019

2020

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

Sq. Ft.

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

Annualized

Office

Total

Base Rent

Retail

Total

Base Rent

Mixed-Use

Total

Base Rent

Total

Base Rent

Annualized

% of

% of

Annualized

% of

% of

% of

Annualized

% of

% of

Per Sq. Ft.

(1)

2017

2018

2019

2020

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

Sq. Ft.

Per Sq. Ft.

(1)

Sq. Ft.

Sq. Ft.

2016

Annualized

Office

Total

Base Rent

Retail

Total

Base Rent

Mixed-Use

Total

Base Rent

Total

Base Rent

Annualized

% of

% of

Annualized

% of

% of

% of

Annualized

% of

% of

Year

Month to Month

2011

2012

2013

2014

2015

2016

Year

Month to Month

2011

2012

2013

2014

2015

As of June 30, 2011

Second Quarter 2011 Supplemental Information

Page 27

LEASE EXPIRATIONS (CONTINUED)

Notes:

(1)

(2)

(3)

(4)

(5)

Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent for leases expiring during the applicable period, by (ii) square footage

under such expiring leases. Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the

month ended June 30, 2011 for the leases expiring during the applicable period, by (ii) 12.

The expirations include 45,795 square feet currently leased by Microsoft at The Landmark at One Market, for which Autodesk has signed an agreement to lease the

space upon Microsoft's lease termination from December 31, 2012 through December 31, 2017 with an option to extend the lease through December 31, 2024.

The expirations include 56,963 square feet currently leased by DLA Piper at 160 King Street with a lease termination of February 28, 2012, for which Ancestry.com

has signed an agreement to lease the space upon lease termination from May 1, 2012 through April 30, 2019 with an option to extend the lease through April 30,

2029.

The expirations include 2,024 square feet leased by Ocean Breeze Realty through June 30, 2011 at Lomas Santa Fe Plaza , for which JP Morgan has signed an

agreement to lease the space from July 18, 2011 through September 30, 2016 with an option to extend the lease through September 30, 2026.

The expirations include 1,200 square feet leased by San Diego Wireless through October 31, 2011 at Carmel Mountain Plaza, for which T-Mobile has signed an

agreement to lease the space from November 1, 2011 through October 31, 2016.

Second

Quarter

2011

Supplemental

Information

Page 28

PORTFOLIO LEASED STATISTICS

Size

Leased

(1)

Leased %

Size

Leased

(1)

Leased %

Overall Portfolio Statistics

Retail Properties (square feet)

3,031,032

2,849,270

94.0%

2,704,243

2,605,819

96.4%

Office Properties (square feet)

1,816,723

1,693,833

93.2%

1,240,989

1,159,627

93.4%

Multifamily Properties (units)

922

901

97.7%

922

859

93.2%

Mixed-Used Properties (square feet)

96,569

94,287

97.6%

-

-

-

Mixed-Used Properties (units)

369

322

(6)

87.3%

-

-

-

Same-Store

(2)

Statistics

Retail Properties (square feet)

2,704,302

(3)

2,608,205

96.4%

2,704,243

2,605,819

96.4%

Office Properties (square feet)

1,240,989

(4)

1,164,533

93.8%

1,240,989

(7)

1,159,627

93.4%

Multifamily Properties (units)

922

901

97.7%

922

859

93.2%

Mixed-Used Properties (square feet)

-

(5)

-

-

-

-

-

Mixed-Used Properties (units)

-

(5)

-

-

-

-

-

Notes:

(2) See Glossary of Terms.

(4) Excludes

Solana

Beach

Corporate

Centre

as

the

controlling

interest

in

this

entity

was

acquired

on

January

19,

2011.

First

&

Main

is

excluded

as

it

was

acquired

on

March

11,

2011.

(5) Excludes the Waikiki Beach Walk property as the controlling interest in this entity was acquired on January 19, 2011.

(6) Represents average occupancy for the six months ended June 30, 2011.

(7) Includes The Landmark at One Market as the controlling interest in this entity was acquired on June 30, 2010.

At June 30, 2011

At June 30, 2010

Type

(1) Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties

include total units rented as of that date.

(3) Excludes

Solana

Beach

Towne

Centre

as

the

controlling

interest

in

this

entity

was

acquired

on

January

19,

2011.

Also

excludes

80,000

square

building

at

Carmel

Mountain

Plaza

acquired on November 10, 2010.

Second Quarter 2011 Supplemental Information

Page 29

TOP TENANTS -

RETAIL

As of June 30, 2011

Second Quarter 2011 Supplemental Information

Page 30

TOP TENANTS -

OFFICE

As of June 30, 2011

Second Quarter 2011 Supplemental Information

APPENDIX

Second Quarter 2011 Supplemental Information

Page 32

GLOSSARY OF TERMS

Second Quarter 2011 Supplemental Information

Page 33

GLOSSARY OF TERMS (CONTINUED)

Second Quarter 2011 Supplemental Information

Page 34

GLOSSARY OF TERMS (CONTINUED)

Overall Portfolio:

Includes all operating properties owned by us as of June 30, 2011.

Retail Properties

Carmel Country Plaza

Carmel Mountain

South Bay Marketplace

Rancho Carmel Plaza

Lomas Santa Fe Plaza

Solana Beach Towne Centre

Del Monte Center

The Shops at Kalakaua

Waikele Center

Alamo Quarry Market

Office Properties

Torrey Reserve

Solana Beach Corporate Centre

Valencia Corporate Center

160 King Street

The Landmark at One Market

First & Main

Multifamily Properties

Loma Palisades

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Mixed-Use Properties

Waikiki Beach Walk -

Retail

Waikiki Beach Walk -

Embassy Suites™

Development Properties

Sorrento Pointe -

Land

Torrey Reserve -

Land

Solana Beach -

Land

Comparison of Q2 2011 to Q2 2010

Same-Store

Non-Same Store

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

operated for the entirety of both periods being compared and excludes properties that were redeveloped, expanded or under development and properties purchased or 

sold at any time during the periods being compared. The following table shows the properties included in the same-store and non-same store portfolio for the 

comparative periods presented.

Same-Store Portfolio and Non-Same Store Portfolio:

Information provided on a same-store basis is provided for only those properties that were owned and  

Tenant

Improvements

and

Incentives:

Represents

not

only

the

total

dollars

committed

for

the

improvement

(fit-out)

of

a

space

as

it

relates

to

a

specific

lease

but

may

also

include

base building

costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid  to tenants as an inducement to sign a lease that do not represent

building improvements.