Partners Capital of American Assets Trust, L.P. (Notes)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.

PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.

As of December 31, 2016, the Operating Partnership had 17,888,822 common units (the “Noncontrolling Common Units”) outstanding. American Assets Trust, Inc. owned 71.8% of the Operating Partnership at December 31, 2016. The remaining 28.2% of the partnership interests are owned by non-affiliated investors and certain of our directors and executive officers. Common units and shares of the company's common stock have essentially the same economic characteristics in that common units and shares of the company's common stock share equally in the total net income or loss distributions of the Operating Partnership.

American Assets Trust, Inc. is the Operating Partnership’s general partner and is responsible for the management of the Operating Partnership’s business. As the general partner of the Operating Partnership, the company effectively controls the ability to issue common stock of American Assets Trust, Inc. upon a limited partner’s notice of redemption. Investors who own common units have the right to cause the Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of the company's common stock, or, at the company's election, shares of the company's common stock on a one-for-one basis. In addition, American Assets Trust, Inc. has generally acquired common units upon a limited partner’s notice of redemption in exchange for shares of the company's common stock. The redemption provisions of common units owned by limited partners that permit the Operating Partnership to settle in either cash or common stock at the option of the company are further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Operating Partnership evaluated this guidance, including the requirement to settle in unregistered shares, and determined that these common units meet the requirements to qualify for presentation as permanent equity.

During the years ended December 31, 2016, 2015 and 2014, approximately 10,694, 5,741 and 11,852, respectively, common units were converted into shares of the company's common stock.