x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (State of Organization) | 27-3338708 (IRS Employer Identification No.) | |
11455 El Camino Real, Suite 200, San Diego, California (Address of Principal Executive Offices) | 92130 (Zip Code) | |
Large Accelerated Filer | x | Accelerated Filer | o | |
Non-Accelerated Filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
PART 1. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 1,899,074 | $ | 1,891,549 | |||
Construction in progress | 49,378 | 32,183 | |||||
Held for development | 8,964 | 14,944 | |||||
1,957,416 | 1,938,676 | ||||||
Accumulated depreciation | (295,461 | ) | (270,494 | ) | |||
Net real estate | 1,661,955 | 1,668,182 | |||||
Cash and cash equivalents | 63,340 | 42,479 | |||||
Restricted cash | 9,206 | 7,421 | |||||
Accounts receivable, net | 7,338 | 6,440 | |||||
Deferred rent receivables, net | 30,918 | 29,395 | |||||
Other assets, net | 64,002 | 73,670 | |||||
TOTAL ASSETS | $ | 1,836,759 | $ | 1,827,587 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured notes payable | $ | 1,044,299 | $ | 1,044,682 | |||
Accounts payable and accrued expenses | 31,285 | 29,509 | |||||
Security deposits payable | 5,093 | 4,856 | |||||
Other liabilities and deferred credits | 59,558 | 62,811 | |||||
Total liabilities | 1,140,235 | 1,141,858 | |||||
Commitments and contingencies (Note 11) | |||||||
EQUITY: | |||||||
American Assets Trust, Inc. stockholders’ equity | |||||||
Common stock $0.01 par value, 490,000,000 shares authorized, 40,445,578 and 39,664,212 shares outstanding at June 30, 2013 (unaudited) and December 31, 2012, respectively | 405 | 397 | |||||
Additional paid-in capital | 690,507 | 663,589 | |||||
Accumulated dividends in excess of net income | (35,868 | ) | (25,625 | ) | |||
Total American Assets Trust, Inc. stockholders’ equity | 655,044 | 638,361 | |||||
Noncontrolling interests | 41,480 | 47,368 | |||||
Total equity | 696,524 | 685,729 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 1,836,759 | $ | 1,827,587 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUE: | |||||||||||||||
Rental income | $ | 59,705 | $ | 53,740 | $ | 118,927 | $ | 106,748 | |||||||
Other property income | 3,209 | 2,391 | 6,167 | 4,832 | |||||||||||
Total revenue | 62,914 | 56,131 | 125,094 | 111,580 | |||||||||||
EXPENSES: | |||||||||||||||
Rental expenses | 16,686 | 15,506 | 32,972 | 30,324 | |||||||||||
Real estate taxes | 5,476 | 5,743 | 10,276 | 10,984 | |||||||||||
General and administrative | 4,426 | 3,911 | 8,627 | 7,636 | |||||||||||
Depreciation and amortization | 16,953 | 14,329 | 33,966 | 29,183 | |||||||||||
Total operating expenses | 43,541 | 39,489 | 85,841 | 78,127 | |||||||||||
OPERATING INCOME | 19,373 | 16,642 | 39,253 | 33,453 | |||||||||||
Interest expense | (14,744 | ) | (14,028 | ) | (29,480 | ) | (27,929 | ) | |||||||
Other income (expense), net | (65 | ) | (217 | ) | (344 | ) | (363 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS | 4,564 | 2,397 | 9,429 | 5,161 | |||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||
Results from discontinued operations | — | 227 | — | 334 | |||||||||||
NET INCOME | 4,564 | 2,624 | 9,429 | 5,495 | |||||||||||
Net income attributable to restricted shares | (133 | ) | (131 | ) | (265 | ) | (263 | ) | |||||||
Net income attributable to unitholders in the Operating Partnership | (1,354 | ) | (804 | ) | (2,849 | ) | (1,687 | ) | |||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ | 3,077 | $ | 1,689 | $ | 6,315 | $ | 3,545 | |||||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.08 | |||||||
Discontinued operations | — | — | — | 0.01 | |||||||||||
Basic net income attributable to common stockholders per share | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.09 | |||||||
Weighted average shares of common stock outstanding - basic | 39,460,086 | 38,659,155 | 39,247,729 | 38,658,162 | |||||||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.08 | |||||||
Discontinued operations | — | — | — | 0.01 | |||||||||||
Diluted net income attributable to common stockholders per share | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.09 | |||||||
Weighted average shares of common stock outstanding - diluted | 57,429,837 | 57,055,244 | 57,244,174 | 57,054,509 | |||||||||||
Dividends declared per common share | $ | 0.21 | $ | 0.21 | $ | 0.42 | $ | 0.42 |
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 | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance at December 31, 2012 | 39,664,212 | $ | 397 | $ | 663,589 | $ | (25,625 | ) | $ | 47,368 | $ | 685,729 | ||||||||||
Net income | — | — | — | 6,580 | 2,849 | 9,429 | ||||||||||||||||
Common shares issued | 718,714 | 7 | 24,346 | — | — | 24,353 | ||||||||||||||||
Conversion of operating partnership units | 61,511 | 1 | 1,179 | — | (1,180 | ) | — | |||||||||||||||
Issuance of restricted stock | 5,004 | — | — | — | — | — | ||||||||||||||||
Forfeiture of restricted stock | (3,863 | ) | — | — | — | — | — | |||||||||||||||
Dividends declared | — | — | — | (16,823 | ) | (7,557 | ) | (24,380 | ) | |||||||||||||
Stock-based compensation | — | — | 1,393 | — | — | 1,393 | ||||||||||||||||
Balance at June 30, 2013 | 40,445,578 | $ | 405 | $ | 690,507 | $ | (35,868 | ) | $ | 41,480 | $ | 696,524 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 9,429 | $ | 5,495 | |||
Results from discontinued operations | — | (334 | ) | ||||
Income from continuing operations | 9,429 | 5,161 | |||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||
Deferred rent revenue and amortization of lease intangibles | (1,874 | ) | (3,071 | ) | |||
Depreciation and amortization | 33,966 | 29,183 | |||||
Amortization of debt issuance costs and debt fair value adjustments | 1,966 | 1,958 | |||||
Stock-based compensation expense | 1,393 | 1,406 | |||||
Loss from real estate joint ventures | 54 | — | |||||
Other, net | (535 | ) | 745 | ||||
Changes in operating assets and liabilities | |||||||
Change in restricted cash | (818 | ) | (1,244 | ) | |||
Change in accounts receivable | (1,073 | ) | 1,628 | ||||
Change in other assets | (38 | ) | 315 | ||||
Change in accounts payable and accrued expenses | 2,662 | (1,010 | ) | ||||
Change in security deposits payable | 238 | (204 | ) | ||||
Change in other liabilities and deferred credits | 303 | 223 | |||||
Net cash provided by operating activities of continuing operations | 45,673 | 35,090 | |||||
Net cash provided by operating activities of discontinued operations | — | 252 | |||||
Net cash provided by operating activities | 45,673 | 35,342 | |||||
INVESTING ACTIVITIES | |||||||
Acquisition of real estate, net of cash acquired | — | (32,918 | ) | ||||
Capital expenditures | (21,204 | ) | (11,951 | ) | |||
Change in restricted cash | 433 | (495 | ) | ||||
Leasing commissions | (1,344 | ) | (1,312 | ) | |||
Maturity of marketable securities | — | 3,324 | |||||
Net cash used in investing activities of continuing operations | (22,115 | ) | (43,352 | ) | |||
Net cash used in investing activities of discontinued operations | — | (203 | ) | ||||
Net cash used in investing activities | (22,115 | ) | (43,555 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in restricted cash | (1,400 | ) | — | ||||
Issuance of secured notes payable | — | 21,900 | |||||
Repayment of secured notes payable | (1,839 | ) | (2,315 | ) | |||
Debt issuance costs | — | (924 | ) | ||||
Proceeds from issuance of common stock, net | 24,922 | — | |||||
Dividends paid to common stock and unitholders | (24,380 | ) | (24,226 | ) | |||
Deferred offering costs | — | (361 | ) | ||||
Net cash used in financing activities | (2,697 | ) | (5,926 | ) | |||
Net increase (decrease) in cash and cash equivalents | 20,861 | (14,139 | ) | ||||
Cash and cash equivalents, beginning of period | 42,479 | 112,723 | |||||
Cash and cash equivalents, end of period | $ | 63,340 | $ | 98,584 |
Carmel Country Plaza | Del Monte Center | |
Carmel Mountain Plaza | Geary Marketplace | |
South Bay Marketplace | The Shops at Kalakaua | |
Rancho Carmel Plaza | Waikele Center | |
Lomas Santa Fe Plaza | Alamo Quarry Market | |
Solana Beach Towne Centre |
Torrey Reserve Campus | Lloyd District Portfolio | |
Solana Beach Corporate Centre | City Center Bellevue | |
The Landmark at One Market | ||
One Beach Street | ||
First & Main |
Loma Palisades | ||
Imperial Beach Gardens | ||
Mariner's Point | ||
Santa Fe Park RV Resort |
Waikiki Beach Walk Retail and Embassy Suites™ Hotel |
Solana Beach Corporate Centre – Land | ||
Solana Beach – Highway 101 – Land | ||
Sorrento Pointe – Land | ||
Torrey Reserve – Land | ||
Lloyd District Portfolio – Land |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Supplemental cash flow information | |||||||
Total interest costs incurred | $ | 30,326 | $ | 28,136 | |||
Interest capitalized | $ | 846 | $ | 207 | |||
Interest expense | $ | 29,480 | $ | 27,929 | |||
Cash paid for interest, net of amounts capitalized (including discontinued operations) | $ | 27,021 | $ | 27,113 | |||
Cash paid for income taxes | $ | 585 | $ | 954 | |||
Supplemental schedule of noncash investing and financing activities | |||||||
Accounts payable and accrued liabilities for construction in progress | $ | (1,407 | ) | $ | 3,203 | ||
Acquisition of working capital deficit, net of cash | $ | — | $ | (190 | ) | ||
Reduction to capital for prepaid offering costs | $ | 437 | $ | — | |||
Accrued leasing commissions | $ | 389 | $ | — |
June 30, 2013 | December 31, 2012 | ||||||
In-place leases | $ | 70,336 | $ | 72,598 | |||
Accumulated amortization | (41,445 | ) | (38,290 | ) | |||
Above market leases | 29,974 | 32,846 | |||||
Accumulated amortization | (20,799 | ) | (21,363 | ) | |||
Acquired lease intangible assets, net | $ | 38,066 | $ | 45,791 | |||
Below market leases | $ | 79,706 | $ | 80,071 | |||
Accumulated accretion | (28,360 | ) | (25,721 | ) | |||
Acquired lease intangible liabilities, net | $ | 51,346 | $ | 54,350 |
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 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Deferred compensation liability | $ | — | $ | 689 | $ | — | $ | 689 | $ | — | $ | 637 | $ | — | $ | 637 |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Secured notes payable | $ | 1,044,299 | $ | 1,095,170 | $ | 1,044,682 | $ | 1,116,162 |
June 30, 2013 | December 31, 2012 | ||||||
Leasing commissions, net of accumulated amortization of $18,767 and $16,829, respectively | $ | 17,710 | $ | 18,329 | |||
Acquired above market leases, net | 9,175 | 11,483 | |||||
Acquired in-place leases, net | 28,891 | 34,308 | |||||
Lease incentives, net of accumulated amortization of $2,405 and $2,220, respectively | 1,295 | 1,480 | |||||
Other intangible assets, net of accumulated amortization of $1,846 and $4,239, respectively | 785 | 960 | |||||
Debt issuance costs, net of accumulated amortization of $2,884 and $2,374, respectively | 3,142 | 3,651 | |||||
Prepaid expenses and other | 3,004 | 3,459 | |||||
Total other assets | $ | 64,002 | $ | 73,670 |
June 30, 2013 | December 31, 2012 | ||||||
Acquired below market leases, net | $ | 51,346 | $ | 54,350 | |||
Prepaid rent and deferred revenue | 5,972 | 6,383 | |||||
Deferred rent expense and lease intangible | 930 | 1,008 | |||||
Deferred compensation | 689 | 637 | |||||
Deferred tax liability | 320 | 320 | |||||
Straight-line rent liability | 249 | 63 | |||||
Other liabilities | 52 | 50 | |||||
Total other liabilities and deferred credits | $ | 59,558 | $ | 62,811 |
Principal Balance as of | Stated Interest Rate as of June 30, 2013 | Stated Maturity Date | ||||||||||
Description of Debt | June 30, 2013 | December 31, 2012 | ||||||||||
Alamo Quarry Market (1)(2) | $ | 92,838 | $ | 93,942 | 5.67 | % | January 8, 2014 | |||||
Waikele Center (3) | 140,700 | 140,700 | 5.15 | % | November 1, 2014 | |||||||
The Shops at Kalakaua (3) | 19,000 | 19,000 | 5.45 | % | May 1, 2015 | |||||||
The Landmark at One Market (2)(3) | 133,000 | 133,000 | 5.61 | % | July 5, 2015 | |||||||
Del Monte Center (3) | 82,300 | 82,300 | 4.93 | % | July 8, 2015 | |||||||
First & Main (3) | 84,500 | 84,500 | 3.97 | % | July 1, 2016 | |||||||
Imperial Beach Gardens (3) | 20,000 | 20,000 | 6.16 | % | September 1, 2016 | |||||||
Mariner’s Point (3) | 7,700 | 7,700 | 6.09 | % | September 1, 2016 | |||||||
South Bay Marketplace (3) | 23,000 | 23,000 | 5.48 | % | February 10, 2017 | |||||||
Waikiki Beach Walk—Retail (3) | 130,310 | 130,310 | 5.39 | % | July 1, 2017 | |||||||
Solana Beach Corporate Centre III-IV (4) | 37,004 | 37,204 | 6.39 | % | August 1, 2017 | |||||||
Loma Palisades (3) | 73,744 | 73,744 | 6.09 | % | July 1, 2018 | |||||||
One Beach Street (3) | 21,900 | 21,900 | 3.94 | % | April 1, 2019 | |||||||
Torrey Reserve—North Court (1) | 21,521 | 21,659 | 7.22 | % | June 1, 2019 | |||||||
Torrey Reserve—VCI, VCII, VCIII (1) | 7,247 | 7,294 | 6.36 | % | June 1, 2020 | |||||||
Solana Beach Corporate Centre I-II (1) | 11,556 | 11,637 | 5.91 | % | June 1, 2020 | |||||||
Solana Beach Towne Centre (1) | 38,520 | 38,790 | 5.91 | % | June 1, 2020 | |||||||
City Center Bellevue (3) | 111,000 | 111,000 | 3.98 | % | November 1, 2022 | |||||||
1,055,840 | 1,057,680 | |||||||||||
Unamortized fair value adjustment | (11,541 | ) | (12,998 | ) | ||||||||
Total Secured Notes Payable Outstanding | $ | 1,044,299 | $ | 1,044,682 |
(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) | Interest only. |
(4) | Loan was interest only through August 2012. Beginning in September 2012, principal payments are based on a 30-year amortization schedule. |
• | a maximum leverage ratio (defined as total indebtedness net of certain unrestricted cash and cash equivalents to total asset value) of 60%, |
• | a minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x, |
• | a maximum secured leverage ratio (defined as total secured indebtedness to secured total asset value) of up to 55% in certain circumstances, |
• | a minimum tangible net worth equal to at least 75% of our tangible net worth at January 19, 2011, plus 85% of the net proceeds of any additional equity issuances (other than additional equity issuances in connection with any dividend reinvestment program), and |
• | a $35.0 million limit on the maximum principal amount of recourse indebtedness we may have outstanding at any time, other than under the credit facility. |
Period | Amount per Share/Unit | Period Covered | Dividend Paid Date | |||||
First Quarter 2013 | $ | 0.21 | January 1, 2013 to March 31, 2013 | March 29, 2013 | ||||
Second Quarter 2013 | $ | 0.21 | April 1, 2013 to June 30, 2013 | June 28, 2013 |
Units | Weighted Average Grant Date Fair Value | |||||
Nonvested at January 1, 2013 | 633,222 | $ | 15.64 | |||
Granted | 5,004 | 31.97 | ||||
Vested | (2,601 | ) | 20.50 | |||
Forfeited | (3,863 | ) | 20.39 | |||
Nonvested at June 30, 2013 | 631,762 | $ | 15.61 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
NUMERATOR | |||||||||||||||
Income from continuing operations | $ | 4,564 | $ | 2,397 | $ | 9,429 | $ | 5,161 | |||||||
Less: Net income attributable to restricted shares | (133 | ) | (131 | ) | (265 | ) | (263 | ) | |||||||
Less: Income from continuing operations attributable to unitholders in the Operating Partnership | (1,354 | ) | (804 | ) | (2,849 | ) | (1,687 | ) | |||||||
Income from continuing operations attributable to American Assets Trust, Inc. common stockholders—basic | 3,077 | 1,462 | 6,315 | 3,211 | |||||||||||
Plus: Results from discontinued operations attributable to American Assets Trust, Inc. common stockholders | — | 154 | — | 226 | |||||||||||
Net income attributable to common stockholders—basic | $ | 3,077 | $ | 1,616 | $ | 6,315 | $ | 3,437 | |||||||
Income from continuing operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | 3,077 | $ | 1,462 | $ | 6,315 | $ | 3,211 | |||||||
Plus: Income from continuing operations attributable to unitholders in the Operating Partnership | 1,354 | 804 | 2,849 | 1,687 | |||||||||||
Income from continuing operations attributable to common stockholders—diluted | 4,431 | 2,266 | 9,164 | 4,898 | |||||||||||
Plus: Results from discontinued operations attributable to American Assets Trust, Inc. common stockholders | — | 154 | — | 226 | |||||||||||
Plus: Results from discontinued operations attributable to unitholders in the Operating Partnership | — | 73 | — | 108 | |||||||||||
Net income attributable to common stockholders—diluted | $ | 4,431 | $ | 2,493 | $ | 9,164 | $ | 5,232 | |||||||
DENOMINATOR | |||||||||||||||
Weighted average common shares outstanding—basic | 39,460,086 | 38,659,155 | 39,247,729 | 38,658,162 | |||||||||||
Effect of dilutive securities—conversion of Operating Partnership units | 17,969,751 | 18,396,089 | 17,996,445 | 18,396,347 | |||||||||||
Weighted average common shares outstanding—diluted | 57,429,837 | 57,055,244 | 57,244,174 | 57,054,509 | |||||||||||
EARNINGS PER COMMON SHARE-BASIC | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.08 | |||||||
Discontinued operations | — | — | — | 0.01 | |||||||||||
$ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.09 | ||||||||
EARNINGS PER COMMON SHARE-DILUTED | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.08 | |||||||
Discontinued operations | — | — | — | 0.01 | |||||||||||
$ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.09 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net revenue from discontinued operations | — | $ | 1,678 | $ | — | $ | 3,267 | ||||||||
Net property expenses from discontinued operations | — | 647 | — | 1,275 | |||||||||||
Depreciation and amortization | — | 342 | — | 741 | |||||||||||
Results from discontinued operations | |||||||||||||||
Income from discontinued operations | — | 227 | — | 334 | |||||||||||
Total income from discontinued operations | $ | — | $ | 227 | $ | — | $ | 334 |
Year Ending December 31, | ||||
2013 (six months ending December 31, 2013) | $ | 1,264 | ||
2014 | 2,569 | |||
2015 | 2,636 | |||
2016 | 1,709 | |||
2017 | 736 | (1) | ||
Thereafter | 2,961 | |||
Total | $ | 11,875 |
(1) | Lease payments on the Waikiki Beach Walk lease will be equal to fair rental value from March 2017 through the end of the lease term. In the table, we have shown the lease payments for this period based on the stated rate for the month of February 2017 of $61,690. |
Year Ending December 31, | |||
2013 (six months ending December 31, 2013) | $ | 76,398 | |
2014 | 143,328 | ||
2015 | 132,080 | ||
2016 | 112,365 | ||
2017 | 96,662 | ||
Thereafter | 173,231 | ||
Total | $ | 734,064 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Minimum rents | |||||||||||||||
Retail | $ | 17,236 | $ | 16,772 | $ | 34,587 | $ | 32,847 | |||||||
Office | 20,298 | 16,508 | 40,798 | 32,755 | |||||||||||
Multifamily | 3,687 | 3,252 | 7,270 | 6,527 | |||||||||||
Mixed-use | 2,257 | 2,252 | 4,677 | 4,535 | |||||||||||
Cost reimbursement | 7,242 | 6,688 | 12,913 | 13,421 | |||||||||||
Percentage rent | 402 | 434 | 820 | 726 | |||||||||||
Hotel revenue | 8,178 | 7,461 | 17,026 | 15,125 | |||||||||||
Other | 405 | 373 | 836 | 812 | |||||||||||
Total rental income | $ | 59,705 | $ | 53,740 | $ | 118,927 | $ | 106,748 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Rental operating | $ | 6,430 | $ | 5,799 | $ | 12,744 | $ | 11,382 | |||||||
Hotel operating | 5,438 | 5,156 | 10,920 | 10,112 | |||||||||||
Repairs and maintenance | 2,489 | 2,281 | 4,603 | 4,285 | |||||||||||
Marketing | 344 | 264 | 696 | 570 | |||||||||||
Rent | 611 | 625 | 1,224 | 1,236 | |||||||||||
Hawaii excise tax | 952 | 895 | 1,891 | 1,757 | |||||||||||
Management fees | 422 | 486 | 894 | 982 | |||||||||||
Total rental expenses | $ | 16,686 | $ | 15,506 | $ | 32,972 | $ | 30,324 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest and investment income | $ | 26 | $ | 65 | $ | 34 | $ | 152 | |||||||
Income tax expense | (91 | ) | (282 | ) | (388 | ) | (500 | ) | |||||||
Acquisition related expenses | — | — | — | (15 | ) | ||||||||||
Other non-operating income | — | — | 10 | — | |||||||||||
Total other income (expense), net | $ | (65 | ) | $ | (217 | ) | $ | (344 | ) | $ | (363 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total Retail | |||||||||||||||
Property revenue | $ | 23,497 | $ | 22,452 | $ | 45,651 | $ | 44,143 | |||||||
Property expense | (6,060 | ) | (6,094 | ) | (11,031 | ) | (11,820 | ) | |||||||
Segment profit | 17,437 | 16,358 | 34,620 | 32,323 | |||||||||||
Total Office | |||||||||||||||
Property revenue | 22,512 | 18,027 | 44,934 | 35,914 | |||||||||||
Property expense | (6,584 | ) | (5,858 | ) | (13,020 | ) | (11,376 | ) | |||||||
Segment profit | 15,928 | 12,169 | 31,914 | 24,538 | |||||||||||
Total Multifamily | |||||||||||||||
Property revenue | 3,974 | 3,509 | 7,849 | 7,051 | |||||||||||
Property expense | (1,416 | ) | (1,565 | ) | (2,858 | ) | (2,879 | ) | |||||||
Segment profit | 2,558 | 1,944 | 4,991 | 4,172 | |||||||||||
Total Mixed-Use | |||||||||||||||
Property revenue | 12,931 | 12,143 | 26,660 | 24,472 | |||||||||||
Property expense | (8,102 | ) | (7,732 | ) | (16,339 | ) | (15,233 | ) | |||||||
Segment profit | 4,829 | 4,411 | 10,321 | 9,239 | |||||||||||
Total segments’ profit | $ | 40,752 | $ | 34,882 | $ | 81,846 | $ | 70,272 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total segments’ profit | $ | 40,752 | $ | 34,882 | $ | 81,846 | $ | 70,272 | |||||||
General and administrative | (4,426 | ) | (3,911 | ) | (8,627 | ) | (7,636 | ) | |||||||
Depreciation and amortization | (16,953 | ) | (14,329 | ) | (33,966 | ) | (29,183 | ) | |||||||
Interest expense | (14,744 | ) | (14,028 | ) | (29,480 | ) | (27,929 | ) | |||||||
Other income (expense), net | (65 | ) | (217 | ) | (344 | ) | (363 | ) | |||||||
Income from continuing operations | 4,564 | 2,397 | 9,429 | 5,161 | |||||||||||
Discontinued operations | |||||||||||||||
Results from discontinued operations | — | 227 | — | 334 | |||||||||||
Net income | 4,564 | 2,624 | 9,429 | 5,495 | |||||||||||
Net income attributable to restricted shares | (133 | ) | (131 | ) | (265 | ) | (263 | ) | |||||||
Net income attributable to unitholders in the Operating Partnership | (1,354 | ) | (804 | ) | (2,849 | ) | (1,687 | ) | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 3,077 | $ | 1,689 | $ | 6,315 | $ | 3,545 |
June 30, 2013 | December 31, 2012 | ||||||
Net Real Estate | |||||||
Retail | $ | 659,496 | $ | 669,177 | |||
Office | 765,552 | 759,203 | |||||
Multifamily | 35,937 | 36,391 | |||||
Mixed-Use | 200,970 | 203,411 | |||||
$ | 1,661,955 | $ | 1,668,182 | ||||
Secured Notes Payable (1) | |||||||
Retail | $ | 396,358 | $ | 397,732 | |||
Office | 427,728 | 428,194 | |||||
Multifamily | 101,444 | 101,444 | |||||
Mixed-Use | 130,310 | 130,310 | |||||
$ | 1,055,840 | $ | 1,057,680 |
(1) | Excludes unamortized fair market value adjustments of $11.5 million and $13.0 million as of June 30, 2013 and December 31, 2012, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Capital Expenditures (1) | |||||||||||||||
Retail | $ | 580 | $ | 4,012 | $ | 2,527 | $ | 7,442 | |||||||
Office | 11,439 | 2,441 | 19,301 | 5,153 | |||||||||||
Multifamily | 206 | 285 | 349 | 523 | |||||||||||
Mixed-Use | 83 | 68 | 371 | 145 | |||||||||||
$ | 12,308 | $ | 6,806 | $ | 22,548 | $ | 13,263 |
(1) | Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid. |
• | 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; |
• | difficulties in completing dispositions |
• | our failure to successfully operate acquired properties and operations; |
• | our inability to develop or redevelop our properties due to market conditions; |
• | 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, office, multifamily and mixed-use 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. |
Three Months Ended June 30, | Change | % | ||||||||||||
2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||
Rental income | $ | 59,705 | $ | 53,740 | $ | 5,965 | 11 | % | ||||||
Other property income | 3,209 | 2,391 | 818 | 34 | ||||||||||
Total property revenues | 62,914 | 56,131 | 6,783 | 12 | ||||||||||
Expenses | ||||||||||||||
Rental expenses | 16,686 | 15,506 | 1,180 | 8 | ||||||||||
Real estate taxes | 5,476 | 5,743 | (267 | ) | (5 | ) | ||||||||
Total property expenses | 22,162 | 21,249 | 913 | 4 | ||||||||||
Total property income | 40,752 | 34,882 | 5,870 | 17 | ||||||||||
General and administrative | (4,426 | ) | (3,911 | ) | (515 | ) | 13 | |||||||
Depreciation and amortization | (16,953 | ) | (14,329 | ) | (2,624 | ) | 18 | |||||||
Interest expense | (14,744 | ) | (14,028 | ) | (716 | ) | 5 | |||||||
Other income (expense), net | (65 | ) | (217 | ) | 152 | (70 | ) | |||||||
Total other, net | (36,188 | ) | (32,485 | ) | (3,703 | ) | 11 | |||||||
Income from continuing operations | 4,564 | 2,397 | 2,167 | 90 | ||||||||||
Discontinued operations | ||||||||||||||
Results from discontinued operations | — | 227 | (227 | ) | (100 | ) | ||||||||
Net income | 4,564 | 2,624 | 1,940 | 74 | ||||||||||
Net income attributable to restricted shares | (133 | ) | (131 | ) | (2 | ) | 2 | |||||||
Net income attributable to unitholders in the Operating Partnership | (1,354 | ) | (804 | ) | (550 | ) | 68 | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 3,077 | $ | 1,689 | $ | 1,388 | 82 | % |
Percentage Leased (1) June 30, | ||||||
2013 | 2012 | |||||
Retail | 96.6 | % | 96.2 | % | ||
Office | 92.9 | % | 94.7 | % | (2) | |
Multifamily | 97.7 | % | 97.7 | % | ||
Mixed-Use (3) | 93.8 | % | 93.9 | % |
(1) | The percentage leased includes the square footage under lease, including leases which may not have commenced as of June 30, 2013 or June 30, 2012, as applicable. |
(2) | Excludes 160 King Street, which was sold on December 4, 2012. |
(3) | Includes the retail portion of the mixed-use property only. |
Total Portfolio | Same-Store Portfolio(1) | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | % | Three Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 23,073 | $ | 22,135 | $ | 938 | 4 | % | $ | 22,593 | $ | 22,121 | $ | 472 | 2 | % | |||||||||||||
Office | 21,442 | 17,516 | 3,926 | 22 | 17,066 | 17,459 | (393 | ) | (2 | ) | |||||||||||||||||||
Multifamily | 3,688 | 3,254 | 434 | 13 | 3,688 | 3,254 | 434 | 13 | |||||||||||||||||||||
Mixed-Use | 11,502 | 10,835 | 667 | 6 | 11,502 | 10,835 | 667 | 6 | |||||||||||||||||||||
$ | 59,705 | $ | 53,740 | $ | 5,965 | 11 | % | $ | 54,849 | $ | 53,669 | $ | 1,180 | 2 | % |
(1) | For this table and tables following, the same-store portfolio excludes: City Center Bellevue acquired on August 21, 2012; Geary Marketplace acquired on December 19, 2012 and land held for development. |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | % | Three Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 424 | $ | 317 | $ | 107 | 34 | % | $ | 424 | $ | 316 | $ | 108 | 34 | % | |||||||||||||
Office | 1,070 | 511 | 559 | 109 | 388 | 393 | (5 | ) | (1 | ) | |||||||||||||||||||
Multifamily | 286 | 255 | 31 | 12 | 286 | 255 | 31 | 12 | |||||||||||||||||||||
Mixed-Use | 1,429 | 1,308 | 121 | 9 | 1,429 | 1,308 | 121 | 9 | |||||||||||||||||||||
$ | 3,209 | $ | 2,391 | $ | 818 | 34 | % | $ | 2,527 | $ | 2,272 | $ | 255 | 11 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | % | Three Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 3,401 | $ | 3,298 | $ | 103 | 3 | % | $ | 3,301 | $ | 3,298 | $ | 3 | — | % | |||||||||||||
Office | 4,621 | 3,862 | 759 | 20 | 3,842 | 3,791 | 51 | 1 | |||||||||||||||||||||
Multifamily | 1,014 | 1,064 | (50 | ) | (5 | ) | 1,014 | 1,064 | (50 | ) | (5 | ) | |||||||||||||||||
Mixed-Use | 7,650 | 7,282 | 368 | 5 | 7,650 | 7,282 | 368 | 5 | |||||||||||||||||||||
$ | 16,686 | $ | 15,506 | $ | 1,180 | 8 | % | $ | 15,807 | $ | 15,435 | $ | 372 | 2 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | % | Three Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 2,659 | $ | 2,796 | $ | (137 | ) | (5 | )% | $ | 2,570 | $ | 2,773 | $ | (203 | ) | (7 | )% | |||||||||||
Office | 1,963 | 1,996 | (33 | ) | (2 | ) | 1,682 | 1,926 | (244 | ) | (13 | ) | |||||||||||||||||
Multifamily | 402 | 501 | (99 | ) | (20 | ) | 402 | 501 | (99 | ) | (20 | ) | |||||||||||||||||
Mixed-Use | 452 | 450 | 2 | — | 452 | 450 | 2 | — | |||||||||||||||||||||
$ | 5,476 | $ | 5,743 | $ | (267 | ) | (5 | )% | $ | 5,106 | $ | 5,650 | $ | (544 | ) | (10 | )% |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | % | Three Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 17,437 | $ | 16,358 | $ | 1,079 | 7 | % | $ | 17,146 | $ | 16,366 | $ | 780 | 5 | % | |||||||||||||
Office | 15,928 | 12,169 | 3,759 | 31 | 11,930 | 12,135 | (205 | ) | (2 | ) | |||||||||||||||||||
Multifamily | 2,558 | 1,944 | 614 | 32 | 2,558 | 1,944 | 614 | 32 | |||||||||||||||||||||
Mixed-Use | 4,829 | 4,411 | 418 | 9 | 4,829 | 4,411 | 418 | 9 | |||||||||||||||||||||
$ | 40,752 | $ | 34,882 | $ | 5,870 | 17 | % | $ | 36,463 | $ | 34,856 | $ | 1,607 | 5 | % |
Six Months Ended June 30, | Change | % | ||||||||||||
2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||
Rental income | $ | 118,927 | $ | 106,748 | $ | 12,179 | 11 | % | ||||||
Other property income | 6,167 | 4,832 | 1,335 | 28 | ||||||||||
Total property revenues | 125,094 | 111,580 | 13,514 | 12 | ||||||||||
Expenses | ||||||||||||||
Rental expenses | 32,972 | 30,324 | 2,648 | 9 | ||||||||||
Real estate taxes | 10,276 | 10,984 | (708 | ) | (6 | ) | ||||||||
Total property expenses | 43,248 | 41,308 | 1,940 | 5 | ||||||||||
Total property income | 81,846 | 70,272 | 11,574 | 16 | ||||||||||
General and administrative | (8,627 | ) | (7,636 | ) | (991 | ) | 13 | |||||||
Depreciation and amortization | (33,966 | ) | (29,183 | ) | (4,783 | ) | 16 | |||||||
Interest expense | (29,480 | ) | (27,929 | ) | (1,551 | ) | 6 | |||||||
Other income (expense), net | (344 | ) | (363 | ) | 19 | (5 | ) | |||||||
Total other, net | (72,417 | ) | (65,111 | ) | (7,306 | ) | 11 | |||||||
Income from continuing operations | 9,429 | 5,161 | 4,268 | 83 | ||||||||||
Discontinued operations | ||||||||||||||
Results from discontinued operations | — | 334 | (334 | ) | (100 | ) | ||||||||
Net income | 9,429 | 5,495 | 3,934 | 72 | ||||||||||
Net income attributable to restricted shares | (265 | ) | (263 | ) | (2 | ) | 1 | |||||||
Net income attributable to unitholders in the Operating Partnership | (2,849 | ) | (1,687 | ) | (1,162 | ) | 69 | |||||||
Net income (loss) attributable to American Assets Trust, Inc. stockholders | $ | 6,315 | $ | 3,545 | $ | 2,770 | 78 | % |
Percentage Leased (1) June 30, | ||||||
2013 | 2012 | |||||
Retail | 96.6 | % | 96.2 | % | ||
Office | 92.9 | % | 94.7 | % | (2) | |
Multifamily | 97.7 | % | 97.7 | % | ||
Mixed-Use (3) | 93.8 | % | 93.9 | % |
(1) | The percentage leased includes the square footage under lease, including leases which may not have commenced as of June 30, 2013 or June 30, 2012, as applicable. |
(2) | Excludes 160 King Street, which was sold on December 4, 2012. |
(3) | Includes the retail portion of the mixed-use property only. |
Total Portfolio | Same-Store Portfolio(1) | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | % | Six Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 44,932 | $ | 43,519 | $ | 1,413 | 3 | % | $ | 43,982 | $ | 43,490 | $ | 492 | 1 | % | |||||||||||||
Office | 42,861 | 34,786 | 8,075 | 23 | 32,156 | 32,808 | (652 | ) | (2 | ) | |||||||||||||||||||
Multifamily | 7,273 | 6,532 | 741 | 11 | 7,273 | 6,532 | 741 | 11 | |||||||||||||||||||||
Mixed-Use | 23,861 | 21,911 | 1,950 | 9 | 23,861 | 21,911 | 1,950 | 9 | |||||||||||||||||||||
$ | 118,927 | $ | 106,748 | $ | 12,179 | 11 | % | $ | 107,272 | $ | 104,741 | $ | 2,531 | 2 | % |
(1) | For this table and tables following, the same-store portfolio excludes: One Beach Street acquired on January 24, 2012; City Center Bellevue acquired on August 21, 2012; Geary Marketplace acquired on December 19, 2012 and land held for development. |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | % | Six Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 719 | $ | 624 | $ | 95 | 15 | % | $ | 719 | $ | 622 | $ | 97 | 16 | % | |||||||||||||
Office | 2,073 | 1,128 | 945 | 84 | 759 | 742 | 17 | 2 | |||||||||||||||||||||
Multifamily | 576 | 519 | 57 | 11 | 576 | 519 | 57 | 11 | |||||||||||||||||||||
Mixed-Use | 2,799 | 2,561 | 238 | 9 | 2,799 | 2,561 | 238 | 9 | |||||||||||||||||||||
$ | 6,167 | $ | 4,832 | $ | 1,335 | 28 | % | $ | 4,853 | $ | 4,444 | $ | 409 | 9 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | % | Six Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 6,488 | $ | 6,447 | $ | 41 | 1 | % | $ | 6,281 | $ | 6,444 | $ | (163 | ) | (3 | )% | ||||||||||||
Office | 8,996 | 7,520 | 1,476 | 20 | 6,986 | 7,036 | (50 | ) | (1 | ) | |||||||||||||||||||
Multifamily | 2,054 | 2,024 | 30 | 1 | 2,054 | 2,024 | 30 | 1 | |||||||||||||||||||||
Mixed-Use | 15,434 | 14,333 | 1,101 | 8 | 15,434 | 14,333 | 1,101 | 8 | |||||||||||||||||||||
$ | 32,972 | $ | 30,324 | $ | 2,648 | 9 | % | $ | 30,755 | $ | 29,837 | $ | 918 | 3 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | % | Six Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 4,543 | $ | 5,373 | $ | (830 | ) | (15 | )% | $ | 4,372 | $ | 5,324 | $ | (952 | ) | (18 | )% | |||||||||||
Office | 4,024 | 3,856 | 168 | 4 | 3,353 | 3,600 | (247 | ) | (7 | ) | |||||||||||||||||||
Multifamily | 804 | 855 | (51 | ) | (6 | ) | 804 | 855 | (51 | ) | (6 | ) | |||||||||||||||||
Mixed-Use | 905 | 900 | 5 | 1 | 905 | 900 | 5 | 1 | |||||||||||||||||||||
$ | 10,276 | $ | 10,984 | $ | (708 | ) | (6 | )% | $ | 9,434 | $ | 10,679 | $ | (1,245 | ) | (12 | )% |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | % | Six Months Ended June 30, | Change | % | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail | $ | 34,620 | $ | 32,323 | $ | 2,297 | 7 | % | $ | 34,048 | $ | 32,344 | $ | 1,704 | 5 | % | |||||||||||||
Office | 31,914 | 24,538 | 7,376 | 30 | 22,576 | 22,914 | (338 | ) | (1 | ) | |||||||||||||||||||
Multifamily | 4,991 | 4,172 | 819 | 20 | 4,991 | 4,172 | 819 | 20 | |||||||||||||||||||||
Mixed-Use | 10,321 | 9,239 | 1,082 | 12 | 10,321 | 9,239 | 1,082 | 12 | |||||||||||||||||||||
$ | 81,846 | $ | 70,272 | $ | 11,574 | 16 | % | $ | 71,936 | $ | 68,669 | $ | 3,267 | 5 | % |
Debt | Principal Balance at June 30, 2013 | Interest Rate | Annual Debt Service | Maturity Date | Balance at Maturity | ||||||||||||
Alamo Quarry Market (1)(2) | $ | 92,838 | 5.67 | % | $ | 95,948 | January 8, 2014 | $ | 91,717 | ||||||||
Waikele Center (3) | 140,700 | 5.15 | % | 7,360 | November 1, 2014 | 140,700 | |||||||||||
The Shops at Kalakaua (3) | 19,000 | 5.45 | % | 1,053 | May 1, 2015 | 19,000 | |||||||||||
The Landmark at One Market (2)(3) | 133,000 | 5.61 | % | 7,558 | July 5, 2015 | 133,000 | |||||||||||
Del Monte Center (3) | 82,300 | 4.93 | % | 4,121 | July 8, 2015 | 82,300 | |||||||||||
First & Main (3) | 84,500 | 3.97 | % | 3,397 | July 1, 2016 | 84,500 | |||||||||||
Imperial Beach Gardens (3) | 20,000 | 6.16 | % | 1,250 | September 1, 2016 | 20,000 | |||||||||||
Mariner’s Point (3) | 7,700 | 6.09 | % | 476 | September 1, 2016 | 7,700 | |||||||||||
South Bay Marketplace (3) | 23,000 | 5.48 | % | 1,281 | February 10, 2017 | 23,000 | |||||||||||
Waikiki Beach Walk—Retail (3) | 130,310 | 5.39 | % | 7,020 | July 1, 2017 | 130,310 | |||||||||||
Solana Beach Corporate Centre III-IV (4) | 37,004 | 6.39 | % | 2,798 | August 1, 2017 | 35,136 | |||||||||||
Loma Palisades (3) | 73,744 | 6.09 | % | 4,553 | July 1, 2018 | 73,744 | |||||||||||
One Beach Street (3) | 21,900 | 3.94 | % | 875 | April 1, 2019 | 21,900 | |||||||||||
Torrey Reserve—North Court (1) | 21,521 | 7.22 | % | 1,836 | June 1, 2019 | 19,443 | |||||||||||
Torrey Reserve—VCI, VCII, VCIII (1) | 7,247 | 6.36 | % | 560 | June 1, 2020 | 6,439 | |||||||||||
Solana Beach Corporate Centre I-II (1) | 11,556 | 5.91 | % | 855 | June 1, 2020 | 10,169 | |||||||||||
Solana Beach Towne Centre (1) | 38,520 | 5.91 | % | 2,849 | June 1, 2020 | 33,898 | |||||||||||
City Center Bellevue (3) | 111,000 | 3.98 | % | 4,479 | November 1, 2022 | 111,000 | |||||||||||
Total | 1,055,840 | $ | 148,269 | $ | 1,043,956 | ||||||||||||
Unamortized fair value adjustment | (11,541 | ) | |||||||||||||||
Total Secured Notes Payable Balance | $ | 1,044,299 |
(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) | Interest only. |
(4) | Loan was interest only through August 2012. Beginning in September 2012, principal payments are based on a 30-year amortization schedule. Annual debt service is for the period October 1, 2012 through September 30, 2013. |
• | a maximum leverage ratio (defined as total indebtedness net of certain unrestricted cash and cash equivalents to total asset value) of 60.0%, |
• | a minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x, |
• | a maximum secured leverage ratio (defined as total secured indebtedness to secured total asset value) of up to 55% in certain circumstances, |
• | a minimum tangible net worth equal to at least 75.0% of our tangible net worth at January, 19, 2011, the closing date of our initial public offering, plus 85.0% of the net proceeds of any additional equity issuances (other than additional equity issuances in connection with any dividend reinvestment program), and |
• | a $35.0 million limit on the maximum principal amount of recourse indebtedness we may have outstanding at any time, other than under credit facility. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net operating income | $ | 40,752 | $ | 34,882 | $ | 81,846 | $ | 70,272 | |||||||
General and administrative | (4,426 | ) | (3,911 | ) | (8,627 | ) | (7,636 | ) | |||||||
Depreciation and amortization | (16,953 | ) | (14,329 | ) | (33,966 | ) | (29,183 | ) | |||||||
Interest expense | (14,744 | ) | (14,028 | ) | (29,480 | ) | (27,929 | ) | |||||||
Other income (expense), net | (65 | ) | (217 | ) | (344 | ) | (363 | ) | |||||||
Income from continuing operations | 4,564 | 2,397 | 9,429 | 5,161 | |||||||||||
Discontinued operations: | |||||||||||||||
Results from discontinued operations | — | 227 | — | 334 | |||||||||||
Net income | $ | 4,564 | $ | 2,624 | $ | 9,429 | $ | 5,495 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2013 | 2013 | ||||||
Funds from Operations (FFO) | |||||||
Net income | $ | 4,564 | $ | 9,429 | |||
Plus: Real estate depreciation and amortization | 16,953 | 33,966 | |||||
Funds from operations | 21,517 | 43,395 | |||||
Less: Nonforfeitable dividends on incentive restricted stock awards | (88 | ) | (176 | ) | |||
FFO attributable to common stock and units | $ | 21,429 | $ | 43,219 | |||
FFO per diluted share/unit | $ | 0.37 | $ | 0.75 | |||
Weighted average number of common shares and units, diluted (1) | 57,640,176 | 57,454,594 |
(1) | The weighted average common shares used to compute FFO per diluted share include unvested restricted stock awards that are subject to time vesting, which were excluded from the computation of diluted EPS, as the vesting of the restricted stock awards is dilutive in the computation of FFO per diluted share but is anti-dilutive for the computation of diluted EPS for the period. Diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. |
Exhibit No. | Description | |
31.1* | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1* | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101* | The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statement of Equity, (iv) Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements that have been detail tagged. |
* | Filed herewith. |
American Assets Trust, Inc. | |
August 2, 2013 | /s/ JOHN W. CHAMBERLAIN |
John W. Chamberlain | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
August 2, 2013 | /s/ ROBERT F. BARTON |
Robert F. Barton | |
Executive Vice President, Chief Financial Officer and Treasurer | |
(Principal Financial and Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of American Assets Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ JOHN W. CHAMBERLAIN |
John W. Chamberlain | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of American Assets Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ ROBERT F. BARTON |
Robert F. Barton | ||
EVP and Chief Financial Officer |
/s/ JOHN W. CHAMBERLAIN |
John W. Chamberlain |
President and Chief Executive Officer |
/s/ ROBERT F. BARTON |
Robert F. Barton |
EVP and Chief Financial Officer |
COMMITMENTS AND CONTINGENCIES
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal We are sometimes involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also, under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Commitments At The Landmark at One Market, we lease, as lessee, a building adjacent to The Landmark under an operating lease effective through June 30, 2016, which we have the option to extend until 2026 by way of two five-year extension options. At Waikiki Beach Walk, we sublease a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021, which we have the option to extend at fair rental value in the event the sublessor extends its lease for the space with the master landlord. The lease payments under the lease will increase by approximately 3.4% annually through 2017 and, thereafter, will be equal to fair rental value, as defined in the lease, through lease expiration. Current minimum annual payments under the leases are as follows, as of June 30, 2013 (in thousands):
We have management agreements with Outrigger Hotels & Resorts or an affiliate thereof (“Outrigger”) pursuant to which Outrigger manages each of the retail and hotel portions of the Waikiki Beach Walk property. Under the management agreement with Outrigger relating to the retail portion of Waikiki Beach Walk (the “retail management agreement”), we pay Outrigger a monthly management fee of 3.0% of net revenues from the retail portion of Waikiki Beach Walk. Pursuant to the terms of the retail management agreement, if the agreement is terminated in certain instances, including our election not to repair damage or destruction at the property, a condemnation or our failure to make required working capital infusions, we would be obligated to pay Outrigger a termination fee equal to the sum of the management fees paid for the two calendar months immediately preceding the termination date. The retail management agreement may not be terminated by us or by Outrigger without cause. Under our management agreement with Outrigger relating to the hotel portion of Waikiki Beach Walk (the “hotel management agreement”), we pay Outrigger a monthly management fee of 6.0% of the hotel's gross operating profit, as well as 3.0% of the hotel's gross revenues; provided that the aggregate management fee payable to Outrigger for any year shall not exceed 3.5% of the hotel's gross revenues for such fiscal year. Pursuant to the terms of the hotel management agreement, if the agreement is terminated in certain instances, including upon a transfer by us of the hotel or upon a default by us under the hotel management agreement, we would be required to pay a cancellation fee calculated by multiplying (1) the management fees for the previous 12 months by (2) (a) eight, if the agreement is terminated in the first 11 years of its term, or (b) four, three, two or one, if the agreement is terminated in the twelfth, thirteenth, fourteenth or fifteenth year, respectively, of its term. The hotel management agreement may not be terminated by us or by Outrigger without cause. A wholly owned subsidiary of our Operating Partnership, WBW Hotel Lessee LLC, entered into a franchise license agreement with Embassy Suites Franchise LLC, the franchisor of the brand “Embassy Suites™,” to obtain the non-exclusive right to operate the hotel under the Embassy 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 2021 and 5.0% of the hotel's gross room revenue thereafter, as well as a monthly program fee equal to 4.0% of the hotel's gross room revenue. If the franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we may be liable to the franchisor for a termination payment, which could be as high as $6.0 million based on operating performance through June 30, 2013. We had a property management agreement with Langley Investment Properties, Inc. (“Langley”) pursuant to which Langley managed and operated Lloyd District Portfolio, and we paid Langley a monthly management fee of 3.5% of “gross receipts,” as defined in the property management agreement, as well as leasing commissions and construction oversight fees in certain situations. The property management agreement was terminated on February 1, 2013 by mutual consent of both parties. Langley continued to provide development consulting services to us until June 30, 2013 and will continue to provide leasing services to us through December 31, 2013 pursuant to a development, consulting, leasing and transition services and management termination agreement. Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and remediation is expected to conclude within the next two years. The work performed is financed through an escrow account funded by the seller upon purchase of the property. 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. In connection with our initial public offering, we entered into tax protection agreements with certain limited partners of our Operating Partnership. These agreements provide that if we dispose of any interest with respect to Carmel Country Plaza, Carmel Mountain Plaza, Del Monte Center, Loma Palisades, Lomas Santa Fe Plaza, Waikele Center or the ICW Plaza portion of Torrey Reserve Campus, in a taxable transaction during the period from the closing of our initial public offering through January 19, 2018, we will indemnify such limited partners for their tax liabilities attributable to their share of the built-in gain that existed with respect to such property interest as of the time of our initial public offering and tax liabilities incurred as a result of the reimbursement payment. Subject to certain exceptions and limitations, the indemnification rights will terminate for any such protected partner that sells, exchanges or otherwise disposes of more than 50% of his or her common units. We have no present intention to sell or otherwise dispose of the properties or interest therein in taxable transactions during the restriction period. If we were to trigger the tax protection provisions under these agreements, we would be required to pay damages in the amount of the taxes owed by these limited partners (plus additional damages in the amount of the taxes incurred as a result of such payment). As of June 30, 2013, the Company has accrued approximately $6.6 million for transfer taxes that the Company expected to incur on its California properties in connection with its initial public offering. The Company believes that it has filed all necessary forms with the requisite taxing authorities, but can offer no assurances that the taxing authorities will agree with the Company's estimate above. Concentrations of Credit Risk Our properties are located in Southern California, Northern California, Hawaii, Oregon, Texas, and Washington. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate. Twelve 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. Further, tenants in the retail industry accounted for 36.5% of total revenues for the six months ended June 30, 2013. 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. For the six months ended June 30, 2013 and 2012, no tenant accounted for more than 10% of our total rental revenue. |
DISCONTINUED OPERATIONS (Detail) (USD $)
In Millions, unless otherwise specified |
1 Months Ended |
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Dec. 31, 2012
|
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Discontinued Operations and Disposal Groups [Abstract] | |
Proceeds from sale of real estate | $ 93.8 |
Consolidated Statements of Income (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
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REVENUE: | ||||
Rental income | $ 59,705 | $ 53,740 | $ 118,927 | $ 106,748 |
Other property income | 3,209 | 2,391 | 6,167 | 4,832 |
Total revenue | 62,914 | 56,131 | 125,094 | 111,580 |
EXPENSES: | ||||
Rental expenses | 16,686 | 15,506 | 32,972 | 30,324 |
Real estate taxes | 5,476 | 5,743 | 10,276 | 10,984 |
General and administrative | 4,426 | 3,911 | 8,627 | 7,636 |
Depreciation and amortization | 16,953 | 14,329 | 33,966 | 29,183 |
Total operating expenses | 43,541 | 39,489 | 85,841 | 78,127 |
OPERATING INCOME | 19,373 | 16,642 | 39,253 | 33,453 |
Interest expense | (14,744) | (14,028) | (29,480) | (27,929) |
Other income (expense), net | (65) | (217) | (344) | (363) |
INCOME FROM CONTINUING OPERATIONS | 4,564 | 2,397 | 9,429 | 5,161 |
Discontinued operations | ||||
Results from discontinued operations | 0 | 227 | 0 | 334 |
NET INCOME | 4,564 | 2,624 | 9,429 | 5,495 |
Net income attributable to restricted shares | (133) | (131) | (265) | (263) |
Net income attributable to unitholders in the Operating Partnership | (1,354) | (804) | (2,849) | (1,687) |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 3,077 | $ 1,689 | $ 6,315 | $ 3,545 |
EARNINGS PER COMMON SHARE, BASIC | ||||
Continuing operations | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.08 |
Discontinued operations | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.01 |
Basic net income attributable to common stockholders per share | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.09 |
Weighted average shares of common stock outstanding-basic | 39,460,086 | 38,659,155 | 39,247,729 | 38,658,162 |
EARNINGS PER COMMON SHARE, DILUTED | ||||
Continuing operations | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.08 |
Discontinued operations | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.01 |
Diluted net income attributable to common stockholders per share | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.09 |
Weighted average shares of common stock outstanding-diluted | 57,429,837 | 57,055,244 | 57,244,174 | 57,054,509 |
Dividends declared per common share | $ 0.21 | $ 0.21 | $ 0.42 | $ 0.42 |
FAIR VALUE OF FINANCIAL INSTRUMENTS
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Jun. 30, 2013
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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:
Except as disclosed below, the carrying amounts of our financial instruments approximate their fair value. The financial liability whose fair value we measure on a recurring basis using Level 2 inputs is our deferred compensation liability included in other liabilities and deferred credits on the consolidated balance sheet. 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. 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. 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 is sensitive to fluctuations in interest rates. Discounted cash flow analysis using observable market interest rates (Level 2) is generally used to estimate the fair value of our secured notes payable, using rates ranging from 3.9% to 5.0%. Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. 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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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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Jun. 30, 2013
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Cash Flows-Supplemental Disclosures | The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):
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SEGMENT REPORTING Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Segment Reporting [Abstract] | ||||
Total Segments' profit | $ 40,752 | $ 34,882 | $ 81,846 | $ 70,272 |
General and administrative | (4,426) | (3,911) | (8,627) | (7,636) |
Depreciation and amortization | (16,953) | (14,329) | (33,966) | (29,183) |
Interest expense | (14,744) | (14,028) | (29,480) | (27,929) |
Other income (expense), net | (65) | (217) | (344) | (363) |
INCOME FROM CONTINUING OPERATIONS | 4,564 | 2,397 | 9,429 | 5,161 |
Results from discontinued operations | 0 | 227 | 0 | 334 |
NET INCOME | 4,564 | 2,624 | 9,429 | 5,495 |
Net income attributable to restricted shares | (133) | (131) | (265) | (263) |
Net income attributable to unitholders in the Operating Partnership | (1,354) | (804) | (2,849) | (1,687) |
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 3,077 | $ 1,689 | $ 6,315 | $ 3,545 |
OPERATING LEASES
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
OPERATING LEASES | OPERATING LEASES Our leases with office, retail, mixed-use and residential tenants are classified as operating leases. Leases at our office and retail properties and the retail portion of our mixed-use property generally range from three to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, usually provide for cost recoveries for the tenant’s share of certain operating costs and also may include percentage rents based on the tenant’s level of sales achieved. Leases on apartments generally range from 7 to 15 months, with a majority having 12-month lease terms. Rooms at the hotel portion of our mixed-use property are rented on a nightly basis. As of June 30, 2013, 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. |
DEBT Summary of Total Secured Notes Payable Outstanding (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2013
Alamo Quarry Market [Member]
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Dec. 31, 2012
Alamo Quarry Market [Member]
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Jun. 30, 2013
Waikele Center [Member]
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Dec. 31, 2012
Waikele Center [Member]
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Jun. 30, 2013
Shops At Kalakaua [Member]
|
Dec. 31, 2012
Shops At Kalakaua [Member]
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Jun. 30, 2013
The Land Mark at One Market
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Dec. 31, 2012
The Land Mark at One Market
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Jun. 30, 2013
Del Monte Center [Member]
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Dec. 31, 2012
Del Monte Center [Member]
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Jun. 30, 2013
First And Main [Member]
|
Dec. 31, 2012
First And Main [Member]
|
Jun. 30, 2013
Imperial Beach Gardens [Member]
|
Dec. 31, 2012
Imperial Beach Gardens [Member]
|
Jun. 30, 2013
Mariners Point [Member]
|
Dec. 31, 2012
Mariners Point [Member]
|
Jun. 30, 2013
South Bay Marketplace [Member]
|
Dec. 31, 2012
South Bay Marketplace [Member]
|
Jun. 30, 2013
Waikiki Beach Walk - Retail
|
Dec. 31, 2012
Waikiki Beach Walk - Retail
|
Jun. 30, 2013
Solana Beach Corporate Centre Three To Four [Member]
|
Dec. 31, 2012
Solana Beach Corporate Centre Three To Four [Member]
|
Jun. 30, 2013
Loma Palisades [Member]
|
Dec. 31, 2012
Loma Palisades [Member]
|
Jun. 30, 2013
One Beach Street [Member]
|
Dec. 31, 2012
One Beach Street [Member]
|
Jun. 30, 2013
Torrey Reserve North Court [Member]
|
Dec. 31, 2012
Torrey Reserve North Court [Member]
|
Jun. 30, 2013
Torrey Reserve [Member]
|
Dec. 31, 2012
Torrey Reserve [Member]
|
Jun. 30, 2013
Solana Beach Corporate Centre One To Two [Member]
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Dec. 31, 2012
Solana Beach Corporate Centre One To Two [Member]
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Jun. 30, 2013
Solana Beach Towne Centre [Member]
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Dec. 31, 2012
Solana Beach Towne Centre [Member]
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Jun. 30, 2013
City Center Bellevue [Member]
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Dec. 31, 2012
City Center Bellevue [Member]
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Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured notes payable, Principal Balance | $ 92,838 | [1],[2] | $ 93,942 | [1],[2] | $ 140,700 | [3] | $ 140,700 | [3] | $ 19,000 | [3] | $ 19,000 | [3] | $ 133,000 | [2],[3] | $ 133,000 | [2],[3] | $ 82,300 | [3] | $ 82,300 | [3] | $ 84,500 | [3] | $ 84,500 | [3] | $ 20,000 | [3] | $ 20,000 | [3] | $ 7,700 | [3] | $ 7,700 | [3] | $ 23,000 | [3] | $ 23,000 | [3] | $ 130,310 | [3] | $ 130,310 | [3] | $ 37,004 | [4] | $ 37,204 | [4] | $ 73,744 | [3] | $ 73,744 | [3] | $ 21,900 | [3] | $ 21,900 | [3] | $ 21,521 | [1] | $ 21,659 | [1] | $ 7,247 | [1] | $ 7,294 | [1] | $ 11,556 | [1] | $ 11,637 | [1] | $ 38,520 | [1] | $ 38,790 | [1] | $ 111,000 | [3] | $ 111,000 | [3] | ||||||||||
Stated Interest Rate (in percent) | 5.67% | [1],[2] | 5.15% | [3] | 5.45% | [3] | 5.61% | [2],[3] | 4.93% | [3] | 3.97% | [3] | 6.16% | [3] | 6.09% | [3] | 5.48% | [3] | 5.39% | [3] | 6.39% | [4] | 6.09% | [3] | 3.94% | [3] | 7.22% | [1] | 6.36% | [1] | 5.91% | [1] | 5.91% | [1] | 3.98% | [3] | ||||||||||||||||||||||||||||||||||||||||||||||
Stated Maturity Date | Jan. 08, 2014 | [1],[2] | Nov. 01, 2014 | [3] | May 01, 2015 | [3] | Jul. 05, 2015 | [2],[3] | Jul. 08, 2015 | [3] | Jul. 01, 2016 | [3] | Sep. 01, 2016 | [3] | Sep. 01, 2016 | [3] | Feb. 10, 2017 | [3] | Jul. 01, 2017 | [3] | Aug. 01, 2017 | [4] | Jul. 01, 2018 | [3] | Apr. 01, 2019 | [3] | Jun. 01, 2019 | [1] | Jun. 01, 2020 | [1] | Jun. 01, 2020 | [1] | Jun. 01, 2020 | [1] | Nov. 01, 2022 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,055,840 | 1,057,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized fair value adjustment | (11,541) | (12,998) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt Outstanding | $ 1,044,299 | $ 1,044,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of amortization schedule (in years) | 30 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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COMMITMENTS AND CONTINGENCIES Current Minimum Annual Payments under Leases (Details) (USD $)
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Jun. 30, 2013
|
|||
---|---|---|---|---|
Operating Leased Assets [Line Items] | ||||
Stated monthly lease rate for February 2017 | $ 61,690 | |||
Landmark At One Market Waikiki Beach Walk
|
||||
Operating Leased Assets [Line Items] | ||||
2013 (six months ending December 31, 2013) | 1,264,000 | |||
2014 | 2,569,000 | |||
2015 | 2,636,000 | |||
2016 | 1,709,000 | |||
2017 | 736,000 | [1] | ||
Thereafter | 2,961,000 | |||
Total | $ 11,875,000 | |||
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