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Segment Reporting
9 Months Ended
Sep. 30, 2011
Segment Reporting [Abstract] 
Segment Reporting

16. 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.

Asset information by segment is not reported because we do not use this 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
September 30,		     Nine Months Ended
September 30,		  
     2011     2010     2011     2010  

Total Retail

         

Property revenue

    $ 21,494      $ 20,464      $ 64,923      $ 58,706   

Property expense

      (5,981 )      (4,855 )      (17,433 )      (14,855 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Segment profit

      15,513        15,609        47,490        43,851   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Office

         

Property revenue

      18,335        10,898        45,767        21,577   

Property expense

      (6,209 )      (3,309 )      (15,029 )      (6,256 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Segment profit

      12,126        7,589        30,738        15,321   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Multifamily

         

Property revenue

      3,803        3,601        10,588        10,692   

Property expense

      (1,387 )      (1,255 )      (3,974 )      (3,455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Segment profit

      2,416        2,346        6,614        7,237   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Mixed-Use

         

Property revenue

      12,661        —          32,998        —     

Property expense

      (8,000 )      —          (21,084 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Segment profit

      4,661        —          11,914        —     
  

 

 

    

 

 

    

 

 

    

 

 

  
        
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segments' profit

    $ 34,716      $ 25,544      $ 96,756      $ 66,409   
  

 

 

    

 

 

    

 

 

    

 

 

  

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2011     2010     2011     2010  

Total segments' profit

    $ 34,716      $ 25,544      $ 96,756      $ 66,409   

General and administrative

      (3,733 )      (1,515 )      (10,786 )      (4,908 ) 

Depreciation and amortization

      (15,827 )      (12,599 )      (41,916 )      (26,714 ) 

Interest expense

      (14,738 )      (12,416 )      (41,791 )      (32,979 ) 

Early extinguishment of debt

      —          —          (25,867 )      —     

Loan transfer and consent fees

      —          —          (9,019 )      —     

Gain on acquisition

      —          —          46,371        4,297   

Other income (expense), net

      (108 )      (251 )      (179 )      (1,167 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations

      310        (1,237 )      13,569        4,938   

Discontinued operations

         

Income from discontinued operations

      327        44        1,119        232   

Gain on sale of real estate property

      3,981        —          3,981        —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Results from discontinued operations

      4,308        44        5,100        232   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      4,618        (1,193 )      18,669        5,170   

Net income attributable to restricted shares

      (132 )      —          (350 )      —     

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

      —          1,042        2,458        1,941   

Net (income) loss attributable to Predecessor's controlled owners' equity

      —          151        (16,995 )      (7,111 ) 

Net income attributable to unitholders in the Operating Partnership

      (1,434 )      —          (1,209 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to American Assets Trust, Inc. stockholders

    $ 3,052      $ —        $ 2,573      $ —