REAL ESTATE

Property Asset Acquisitions

On April 28, 2017, we acquired the Pacific Ridge Apartments, a 533 unit luxury apartment community located in San Diego, California. The purchase price was approximately $232 million, excluding closing costs of approximately $0.1 million. The property was acquired with available cash from operations and borrowings under the Company's Amended and Restated Credit Facility (as defined herein).

The financial information set forth below summarizes the Company’s purchase price allocation for the Pacific Ridge Apartments during the six months ended June 30, 2017 (in thousands):



	Pacific Ridge Apartments
Land	$	47,972
Building	171,813
Land improvements	3,403
Furniture, fixtures, and equipment	3,281
Total real estate	226,469
Lease intangibles	5,592
Prepaid expenses and other assets	424
Assets acquired	$	232,485
Accounts payable and accrued expenses	$	74
Security deposits payable	673
Other liabilities and deferred credits	49
Liabilities assumed	$	796

Pro Forma Financial Information

The pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the three and six months ended June 30, 2017 and 2016, adjusted to give effect to the acquisition of the Pacific Ridge Apartments, described above, as if such transaction had been completed at the beginning of 2016. The pro forma financial information set forth below is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2016, nor does it purport to represent the results of future operations (in thousands).



	Six Months Ended June 30, 2017				Six Months Ended June 30, 2016
	As Reported		ProForma		As Reported		ProForma
Total revenue	$	150,898	$	156,281	$	142,550	$	149,935
Total operating expenses	$	107,521	$	110,971	$	95,203	$	106,831
Operating income	$	43,377	$	45,310	$	47,347	$	43,104
Net income	$	17,896	$	19,010	$	21,371	$	16,251

The following table summarizes the operating results for the Pacific Ridge Apartments included in the Company’s historical consolidated statement of operations for the period of acquisition through June 30, 2017 (in thousands):



	April 28, 2017 through June 30, 2017
Revenues	$	2,909
Operating expenses	$	6,877
Operating (loss)	$	(3,968	)
Net (loss) attributable to American Assets Trust, Inc.	$	(3,968	)