x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2018 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Maryland (American Assets Trust, Inc.) | 27-3338708 (American Assets Trust, Inc.) | |
Maryland (American Assets Trust, L.P.) | 27-3338894 (American Assets Trust, L.P.) | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
11455 El Camino Real, Suite 200, San Diego, California | 92130 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant | Title of Each Class | Name Of Each Exchange On Which Registered |
American Assets Trust, Inc. | Common Stock, $.01 par value per share | New York Stock Exchange |
American Assets Trust, L.P. | None | None |
American Assets Trust, Inc. | None |
American Assets Trust, L.P. | None |
American Assets Trust, Inc. | x Yes o No |
American Assets Trust, L.P. | o Yes x No |
American Assets Trust, Inc. | o Yes x No |
American Assets Trust, L.P. | o Yes x No |
American Assets Trust, Inc. | x Yes o No |
American Assets Trust, L.P. | x Yes o No |
American Assets Trust, Inc. | x Yes o No |
American Assets Trust, L.P. | x Yes o No |
Large Accelerated Filer | x | Accelerated Filer | o | |||
Non-Accelerated Filer | o | Smaller reporting company | o | |||
Emerging Growth Company | o |
Large Accelerated Filer | o | Accelerated Filer | o | |||
Non-Accelerated Filer | x | Smaller reporting company | o | |||
Emerging Growth Company | o |
American Assets Trust, Inc. | o Yes x No |
American Assets Trust, L.P. | o Yes x No |
• | better reflects how management and the analyst community view the business as a single operating unit; |
• | enhance investors' understanding of American Assets Trust, Inc. and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management; |
• | greater efficiency for American Assets Trust, Inc. and the Operating Partnership and resulting savings in time, effort and expense; and |
• | greater efficiency for investors by reducing duplicative disclosure by providing a single document for their review. |
• | consolidated financial statements; |
• | the following notes to the consolidated financial statements: |
◦ | Debt; |
◦ | Equity/Partners' Capital; and |
◦ | Earnings Per Share/Unit; |
• | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities; and |
• | Liquidity and Capital Resources in Management's Discussion and Analysis of Financial Condition and Results of Operations. |
• | 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 American Assets Trust, Inc. to continue to qualify as a real estate investment trust, or 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. |
ITEM 1. | BUSINESS |
• | Irreplaceable Portfolio of High Quality Retail, Office and Multifamily Properties. We have acquired and developed a high quality portfolio of retail, office and multifamily properties located in affluent neighborhoods and sought-after business centers in Southern California, Northern California, Portland, Oregon, Bellevue, Washington, San Antonio, Texas and Oahu, Hawaii. Many of our properties are located in in-fill locations where developable land is scarce or where we believe current zoning, environmental and entitlement regulations significantly restrict new development. We believe that the location of many of our properties will provide us an advantage in terms of generating higher internal revenue growth on a relative basis. |
• | Experienced and Committed Senior Management Team with Strong Sponsorship. The members of our senior management team have significant experience in all aspects of the commercial real estate industry. |
• | Properties Located in High-Barrier-to-Entry Markets with Strong Real Estate Fundamentals. Our core markets currently include Southern California, Northern California, Oregon, Washington and Hawaii, which we believe have attractive long-term real estate fundamentals driven by favorable supply and demand characteristics. |
• | Extensive Market Knowledge and Long-Standing Relationships Facilitate Access to a Pipeline of Acquisition and Leasing Opportunities. We believe that our in-depth market knowledge and extensive network of long-standing relationships in the real estate industry provide us access to an ongoing pipeline of attractive acquisition and investment opportunities in and near our core markets, while also facilitating our leasing efforts and providing us with opportunities to increase occupancy rates at our properties. |
• | Internal Growth Prospects through Development, Redevelopment and Repositioning. The development and redevelopment potential at several of our properties presents compelling growth prospects and our expertise enhances our ability to capitalize on these opportunities. |
• | Broad Real Estate Expertise with Retail, Office and Multifamily Focus. Our senior management team has strong experience and capabilities across the real estate sector with significant expertise in the retail, office and multifamily asset classes, which provides for flexibility in pursuing attractive acquisition, development and repositioning opportunities. Ernest Rady, our Chairman, President and Chief Executive Officer, and Robert Barton, our Chief Financial Officer, each have over 30 years of commercial real estate experience, and the other members of senior management each have over 20 years of commercial real estate experience. |
• | Capitalizing on Acquisition Opportunities in High-Barrier-to-Entry Markets. We intend to pursue growth through the strategic acquisition of attractively priced, high quality properties that are well located in their submarkets, focusing on markets that generally are characterized by strong supply and demand characteristics, including high barriers to entry and diverse industry bases, that appeal to institutional investors. |
• | Repositioning/Redevelopment and Development of Office, Retail and Multifamily Properties. Our strategy is to selectively reposition and redevelop several of our existing or newly-acquired properties, and we will also selectively pursue ground-up development of undeveloped land where we believe we can generate attractive risk-adjusted returns. |
• | Disciplined Capital Recycling Strategy. Our strategy is to pursue an efficient asset allocation strategy that maximizes the value of our investments by selectively disposing of properties whose returns appear to have been maximized and redeploying capital into acquisition, repositioning, redevelopment and development opportunities with higher return prospects, in each case in a manner that is consistent with our qualification as a REIT. |
• | Proactive Asset and Property Management. We actively manage our properties, employ targeted leasing strategies, leverage our existing tenant relationships and focus on reducing operating expenses to increase occupancy rates at our properties, attract high quality tenants and increase property cash flows, thereby enhancing the value of our properties. |
ITEM 1A. | RISK FACTORS |
• | our cash flow may be insufficient to meet our required principal and interest payments; |
• | we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to meet operational needs; |
• | we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness; |
• | we may be forced to dispose of one or more of our properties, possibly on unfavorable terms or in violation of certain covenants to which we may be subject; |
• | we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and |
• | our default under any loan with cross default provisions could result in a default on other indebtedness. |
• | we may incur significant costs and divert management attention in connection with evaluating and negotiating potential acquisitions, including ones that we are subsequently unable to complete; |
• | even if we enter into agreements for the acquisition of properties, these agreements are subject to conditions to closing, which we may be unable to satisfy; and |
• | we may be unable to finance the acquisition on favorable terms or at all. |
• | even if we are able to acquire a desired property, competition from other potential acquirers may significantly increase the purchase price; |
• | we may acquire properties that are not accretive to our results upon acquisition, and we may not successfully manage and lease those properties to meet our expectations; |
• | our cash flow may be insufficient to meet our required principal and interest payments; |
• | we may spend more than budgeted amounts to make necessary improvements or renovations to acquired properties; |
• | we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result our results of operations and financial condition could be adversely affected; |
• | market conditions may result in higher than expected vacancy rates and lower than expected rental rates; and |
• | we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities, such as liabilities for clean-up of undisclosed environmental contamination, claims by tenants, vendors or other persons dealing with the former owners of the properties, liabilities incurred in the ordinary course of business and claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties. |
• | restrict our ability to incur additional indebtedness; |
• | restrict our ability to incur additional liens; |
• | restrict our ability to make certain investments (including certain capital expenditures); |
• | restrict our ability to merge with another company; |
• | restrict our ability to sell or dispose of assets; |
• | restrict our ability to make distributions to American Assets Trust, Inc.'s stockholders or American Assets Trust, L.P.'s unitholders; and |
• | require us to satisfy minimum financial coverage ratios, minimum tangible net worth requirements and/or maximum leverage ratios. |
• | borrowers may fail to make debt service payments or pay the principal when due, which may make it necessary for us to foreclose our mortgages or engage in costly negotiations; |
• | the value of the mortgaged property may be less than the principal amount of the mortgage note securing the property; |
• | interest rates payable on the mortgages may be lower than our cost for the funds to acquire these mortgages; and |
• | the mortgages may be or become subordinated to mechanics' or materialmen's liens or property tax liens, in which case we would need to make payments to maintain the current status of a prior lien or discharge it in its entirety to protect such mortgage investment. |
• | decreased demand for retail, office, multifamily and mixed-use space, which would cause market rental rates and property values to be negatively impacted; |
• | reduced values of our properties may limit our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of unsecured loans; |
• | our ability to obtain financing on terms and conditions that we find acceptable, or at all, may be limited, which could reduce our ability to pursue acquisition and development opportunities and refinance existing debt, reduce our returns from our acquisition and development activities and increase our future interest expense; and |
• | one or more lenders under our second amended and restated credit facility could refuse to fund their financing commitment to us or could fail and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all. |
• | competition for guests with other hospitality properties, some of which may have greater marketing and financial resources than the managers of our hospitality properties; |
• | increases in operating costs from inflation, labor costs (including the impact of unionization), workers' compensation and healthcare related costs, utility costs, insurance and other factors that the managers of our hospitality properties may not be able to offset through higher rates; |
• | the fluctuating and seasonal demands of business travelers and tourism, which seasonality may cause quarterly fluctuations in our revenues; |
• | general and local economic conditions that may affect demand for travel in general; |
• | periodic oversupply resulting from excessive new development; |
• | unforeseen events beyond our control, such as terrorist attacks, travel-related health concerns, including pandemics and epidemics, imposition of taxes or surcharges by regulatory authorities, travel-related accidents and unusual weather patterns, including natural disasters such as earthquakes or wildfires; and |
• | decreased reimbursement revenue from the licensor for traveler reward programs. |
• | unsuccessful development or redevelopment opportunities could result in direct expenses to us; |
• | construction or redevelopment costs of a project may exceed original estimates, possibly making the project less profitable than originally estimated, or unprofitable; |
• | time required to complete the construction or redevelopment of a project or to lease up the completed project may be greater than originally anticipated, thereby adversely affecting our cash flow and liquidity; |
• | contractor and subcontractor disputes, strikes, labor disputes or supply disruptions; |
• | failure to achieve expected occupancy and/or rent levels within the projected time frame, if at all; |
• | delays with respect to obtaining or the inability to obtain necessary zoning, occupancy, land use and other governmental permits, and changes in zoning and land use laws; |
• | occupancy rates and rents of a completed project may not be sufficient to make the project profitable; |
• | our ability to dispose of properties developed or redeveloped with the intent to sell could be impacted by the ability of prospective buyers to obtain financing given the current state of the credit markets; and |
• | the availability and pricing of financing to fund our development activities on favorable terms or at all. |
• | general market conditions; |
• | the market's perception of our growth potential; |
• | our current debt levels; |
• | our current and expected future earnings; |
• | our cash flow and cash distributions; and |
• | the market price per share of our common stock. |
• | local oversupply or reduction in demand for retail, office, multifamily or mixed-use space; |
• | adverse changes in financial conditions of buyers, sellers and tenants of properties; |
• | vacancies or our inability to rent space on favorable terms, including possible market pressures to offer tenants rent abatements, tenant improvements, early termination rights or below market renewal options, and the need to periodically repair, renovate and re-let space; |
• | increased operating costs, including insurance premiums, utilities, real estate taxes and state and local taxes; |
• | a favorable interest rate environment that may result in a significant number of potential residents of our multifamily apartment communities deciding to purchase homes instead of renting; |
• | rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs; |
• | civil unrest, acts of war, terrorist attacks and natural disasters, including earthquakes and floods, which may result in uninsured or underinsured losses; |
• | decreases in the underlying value of our real estate; |
• | changing submarket demographics; and |
• | changing traffic patterns. |
• | discourage a tender offer or other transactions or a change in management or of control that might involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interests; or |
• | result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of a charitable beneficiary and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares. |
• | “business combination” provisions that, subject to limitations, prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10% or more of the voting power of our shares or an affiliate thereof or an affiliate or associate of ours who was the beneficial owner, directly or indirectly, of 10% or more of the voting power of our then outstanding voting stock at any time within the two-year period immediately prior to the date in question) for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter impose fair price and/or supermajority and stockholder voting requirements on these combinations; and |
• | “control share” provisions that provide that “control shares” of our company (defined as shares that, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of issued and outstanding “control shares”) have no voting rights with respect to their control shares, except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares. |
• | redemption rights of qualifying parties; |
• | a requirement that we may not be removed as the general partner of our Operating Partnership without our consent; |
• | transfer restrictions on common units; |
• | our ability, as general partner, in some cases, to amend the partnership agreement and to cause the Operating Partnership to issue units with terms that could delay, defer or prevent a merger or other change of control of us or our Operating Partnership without the consent of the limited partners; and |
• | the right of the limited partners to consent to direct or indirect transfers of the general partnership interest, including as a result of a merger or a sale of all or substantially all of our assets, in the event that such transfer requires approval by our common stockholders. |
• | actual receipt of an improper benefit or profit in money, property or services; or |
• | a final judgment based upon a finding of active and deliberate dishonesty by the director or officer that was material to the cause of action adjudicated. |
• | wage and benefit costs; |
• | repair and maintenance expenses; |
• | energy costs; |
• | property taxes; |
• | insurance costs; and |
• | other operating expenses. |
• | we would not be allowed a deduction for distributions to American Assets Trust, Inc.'s stockholders or American Assets Trust, L.P.'s unitholders in computing our taxable income and would be subject to the regular U.S. federal corporate income tax rate; |
• | we also could be subject to increased state and local taxes; and |
• | unless we are entitled to relief under applicable statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified. |
• | temporarily reducing individual U.S. federal income tax rates on ordinary income; the highest individual U.S. federal income tax rate has been reduced from 39.6% to 37% for taxable years beginning after December 31, 2017 and before January 1, 2026; |
• | permanently eliminating the progressive corporate tax rate structure, with a maximum corporate tax rate of 35% and replacing it with a flat corporate tax rate of 21%; |
• | permitting a deduction for certain pass-through business income, including dividends received by our stockholders from us that are not designated by us as capital gain dividends or qualified dividend income, which will allow individuals, trusts, and estates to deduct up to 20% of such amounts for taxable years beginning after December 31, 2017 and before January 1, 2026; |
• | reducing the highest rate of withholding with respect to our distributions to non-U.S. stockholders that are treated as attributable to gains from the sale or exchange of U.S. real property interests from 35% to 21%; |
• | limiting our deduction for net operating losses arising in taxable years beginning after December 31, 2017 to 80% of REIT taxable income (prior to the application of the dividends paid deduction); |
• | generally limiting the deduction for net business interest expense in excess of 30% of a business’s “adjusted taxable income,” except for taxpayers that engage in certain real estate businesses and elect out of this rule (provided that such electing taxpayers must use an alternative depreciation system); and |
• | eliminating the corporate alternative minimum tax. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Property | Location | Year Built/ Renovated | Number of Buildings | Net Rentable Square Feet | Percentage Leased | Annualized Base Rent | Annualized Base Rent Per Leased Square Foot | |||||||||||||
RETAIL PROPERTIES | ||||||||||||||||||||
Carmel Country Plaza | San Diego, CA | 1991 | 9 | 78,098 | 94.6 | % | $ | 3,841,618 | $ | 52.00 | ||||||||||
Carmel Mountain Plaza (1) | San Diego, CA | 1994/2014 | 15 | 528,416 | 77.4 | 12,234,245 | 29.91 | |||||||||||||
South Bay Marketplace(1) | San Diego, CA | 1997 | 9 | 132,877 | 88.7 | 2,222,421 | 18.86 | |||||||||||||
Gateway Marketplace | San Diego, CA | 1997/2016 | 3 | 127,861 | 98.7 | 2,403,614 | 19.05 | |||||||||||||
Lomas Santa Fe Plaza | Solana Beach, CA | 1972/1997 | 9 | 208,030 | 97.0 | 5,971,638 | 29.59 | |||||||||||||
Solana Beach Towne Centre | Solana Beach, CA | 1973/2000/2004 | 12 | 246,730 | 93.5 | 5,929,000 | 25.70 | |||||||||||||
Del Monte Center (1) | Monterey, CA | 1967/1984/2006 | 16 | 673,572 | 98.3 | 11,680,190 | 17.64 | |||||||||||||
Geary Marketplace | Walnut Creek, CA | 2012 | 3 | 35,156 | 95.6 | 1,156,036 | 34.40 | |||||||||||||
The Shops at Kalakaua | Honolulu, HI | 1971/2006 | 3 | 11,671 | 100.0 | 1,981,378 | 169.77 | |||||||||||||
Waikele Center | Waipahu, HI | 1993/2008 | 9 | 418,047 | 100.0 | 10,798,380 | 25.83 | |||||||||||||
Alamo Quarry Market (1) | San Antonio, TX | 1997/1999 | 16 | 588,970 | 99.5 | 14,745,038 | 25.16 | |||||||||||||
Hassalo on Eighth - Retail (2) | Portland, OR | 2015 | 3 | 44,153 | 76.6 | 1,079,577 | 31.92 | |||||||||||||
Subtotal / Weighted Average Retail Portfolio | 107 | 3,093,581 | 93.9 | % | $ | 74,043,135 | $ | 25.49 | ||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||
Torrey Reserve Campus | San Diego, CA | 1996-2000/2014-2016 | 14 | 516,676 | 84.1 | % | $ | 18,162,561 | $ | 41.80 | ||||||||||
Torrey Point | San Diego, CA | 2017 | 2 | 92,614 | 32.2 | 983,599 | 32.98 | |||||||||||||
Solana Beach Corporate Centre | Solana Beach, CA | 1982/2005 | 4 | 212,495 | 87.8 | 7,172,493 | 38.44 | |||||||||||||
The Landmark at One Market (3) | San Francisco, CA | 1917/2000 | 1 | 419,371 | 100.0 | 26,940,554 | 64.24 | |||||||||||||
One Beach Street | San Francisco, CA | 1924/1972/1987/1992 | 1 | 97,614 | 100.0 | 4,358,102 | 44.65 | |||||||||||||
First & Main | Portland, OR | 2010 | 1 | 360,641 | 98.7 | 11,182,650 | 31.42 | |||||||||||||
Lloyd District Portfolio | Portland, OR | 1940-2015 | 2 | 459,603 | 87.6 | 10,065,764 | 25.00 | |||||||||||||
City Center Bellevue | Bellevue, WA | 1987 | 1 | 497,472 | 98.2 | 18,719,712 | 38.32 | |||||||||||||
Subtotal / Weighted Average Office Portfolio | 26 | 2,656,486 | 90.9 | % | $ | 97,585,435 | $ | 40.41 | ||||||||||||
Total / Weighted Average Retail and Office Portfolio | 133 | 5,750,067 | 92.5 | % | $ | 171,628,570 | $ | 32.27 |
Retail Portion | Location | Year Built/ Renovated | Number of Buildings | Net Rentable Square Feet | Percent Leased | Annualized Base Rent | Annualized Base Rent Per Leased Square Foot | |||||||||||||
Waikiki Beach Walk—Retail (4) | Honolulu, HI | 2006 | 3 | 96,707 | 96.1 | % | $ | 10,752,372 | $ | 115.70 |
Hotel Portion | Location | Year Built/ Renovated | Number of Buildings | Units | Average Occupancy | Average Daily Rate | Revenue per Available Room | |||||||||||||
Waikiki Beach Walk—Embassy SuitesTM | Honolulu, HI | 2008/2014 | 2 | 369 | 93.0 | % | $ | 319.58 | $ | 297.36 |
Property | Location | Year Built/ Renovated | Number of Buildings | Units | Percentage Leased | Annualized Base Rent | Average Monthly Base Rent per Leased Unit | |||||||||||||
Loma Palisades | San Diego, CA | 1958/2001-2008 | 80 | 548 | 94.3 | % | $ | 13,393,860 | $ | 2,160 | ||||||||||
Imperial Beach Gardens | Imperial Beach, CA | 1959/2008 | 26 | 160 | 90.6 | 3,507,960 | 2,017 | |||||||||||||
Mariner’s Point | Imperial Beach, CA | 1986 | 8 | 88 | 90.9 | 1,707,156 | 1,778 | |||||||||||||
Santa Fe Park RV Resort (5) | San Diego, CA | 1971/2007-2008 | 1 | 126 | 88.1 | 1,230,864 | 924 | |||||||||||||
Pacific Ridge Apartments | San Diego, CA | 2013 | 3 | 533 | 96.1 | 16,747,488 | 2,725 | |||||||||||||
Hassalo on Eighth - Multifamily (2) | Portland, OR | 2015 | 3 | 657 | 93.2 | 11,942,347 | 1,625 | |||||||||||||
Total / Weighted Average Multifamily | 121 | 2,112 | 93.6 | % | $ | 48,529,675 | $ | 2,046 |
(1) | Net rentable square feet at certain of our retail properties includes square footage leased pursuant to ground leases, as described in the following table: |
Property | Number of Ground Leases | Square Footage Leased Pursuant to Ground Leases | Aggregate Annualized Base Rent | ||||||
Carmel Mountain Plaza | 5 | 17,607 | $ | 709,740 | |||||
South Bay Marketplace | 1 | 2,824 | $ | 102,276 | |||||
Del Monte Center | 1 | 212,500 | $ | 96,000 | |||||
Alamo Quarry Market | 4 | 31,994 | $ | 509,880 |
(2) | The Hassalo on Eighth property is comprised of three multifamily buildings, each with a ground floor retail component: Velomor, Aster Tower and Elwood. |
(3) | This property contains 419,371 net rentable square feet consisting of The Landmark at One Market (375,151 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, 2021, which we have the option to extend until 2031 pursuant to two five-year extension options. |
(4) | Waikiki Beach Walk-Retail contains 96,707 net rentable square feet consisting of 94,093 net rentable square feet that we own in fee and approximately 2,614 net rentable square feet of space in which we have a subleasehold interest pursuant to a sublease from First Hawaiian Bank effective through December 31, 2021. |
(5) | The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments. |
• | 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, 2010 measurement guidelines. Net rentable square footage may be adjusted from the prior period to reflect re-measurement of leased space at the properties. |
• | Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property is calculated as square footage under leases as of December 31, 2018, divided by net rentable square feet, expressed as a percentage. The square footage under lease includes leases which may not have commenced as of December 31, 2018. Percentage leased for our multifamily properties is calculated as total units rented as of December 31, 2018, divided by total units available, expressed as a percentage. |
• | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents, before abatements) for the month ended December 31, 2018, by 12. Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of December 31, 2018. 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. Total abatements for leases in effect as of December 31, 2018 for our retail and office portfolio equaled approximately $3.8 million for the year ended December 31, 2018. There were no abatements for the retail portion of our mixed-use portfolio for the year ended December 31, 2018. Total abatements for leases in effect as of December 31, 2018 for our multifamily portfolio equaled approximately $1.0 million for the year ended December 31, 2018. |
• | Units represent the total number of units available for sale/rent at December 31, 2018. |
• | Average occupancy represents the percentage of available units that were sold during the 12-month period ended December 31, 2018, 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 12-month period ended December 31, 2018, by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the 12-month period ended December 31, 2018 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. |
• | Average monthly base rent per leased unit represents the average monthly base rent per leased units as of December 31, 2018. |
Tenant | Property(ies) | Lease Expiration | Total Leased Square Feet | Rentable Square Feet as a Percentage of Total | Annualized Base Rent (1) | Annualized Base Rent as a Percentage of Total | |||||||||||
salesforce.com, inc. | The Landmark at One Market | 12/31/2018 6/30/2019 | 254,118 | 4.3 | % | $ | 15,002,748 | 8.2 | % | ||||||||
Autodesk, Inc. | The Landmark at One Market | 12/31/2022 12/31/2023 | 114,664 | 2.0 | 9,547,099 | 5.2 | |||||||||||
Lowe's | Waikele Center | 5/31/2028 | 155,000 | 2.7 | 3,720,000 | 2.0 | |||||||||||
Veterans Benefits Administration | First & Main | 8/31/2020 | 93,572 | 1.6 | 3,006,453 | 1.6 | |||||||||||
Clearesult Operating, LLC (as successor to Portland Energy Conservation) | First & Main | 4/30/2025 | 101,848 | 1.7 | 2,735,895 | 1.5 | |||||||||||
State of Oregon: Department of Environmental Quality | Lloyd District Portfolio | 10/31/2031 | 87,787 | 1.5 | 2,607,730 | 1.4 | |||||||||||
Alliant International University | One Beach Street | 10/31/2019 | 64,161 | 1.1 | 2,510,982 | 1.4 | |||||||||||
VMware, Inc.(2) | City Center Bellevue | 11/30/2022 3/31/2025 | 72,883 | 1.2 | 2,404,668 | 1.3 | |||||||||||
Nordstrom Rack | Carmel Mountain Plaza, Alamo Quarry Market | 9/30/2022 10/31/2022 | 69,047 | 1.2 | 2,189,648 | 1.2 | |||||||||||
Treasury Call Center (3) | First & Main | 8/31/2020 | 63,648 | 1.1 | 2,184,302 | 1.2 | |||||||||||
Quiksilver | Waikiki Beach Walk | 12/31/2021 | 8,365 | 0.1 | 2,101,039 | 1.2 | |||||||||||
Sprouts Farmers Market | Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace | 6/30/2024 3/31/2025 9/30/2032 | 71,431 | 1.2 | 1,919,436 | 1.1 | |||||||||||
California Bank & Trust | Torrey Reserve Campus | 2/29/2024 | 34,731 | 0.6 | 1,807,609 | 1.0 | |||||||||||
Industrious | City Center Bellevue | 11/30/2033 | 37,166 | 0.6 | 1,728,219 | 0.9 | |||||||||||
Troutman Sanders, LLP | Torrey Reserve Campus First & Main | 11/30/2019 4/30/2025 | 33,812 | 0.6 | 1,603,658 | 0.9 | |||||||||||
Smartsheet, Inc. | City Center Bellevue | 11/30/2022 | 53,972 | 0.9 | 1,593,788 | 0.9 | |||||||||||
Eisneramper LLP | The Landmark at One Market | 12/31/2018 | 19,126 | 0.3 | 1,568,332 | 0.9 | |||||||||||
Vons | Lomas Santa Fe Plaza | 12/31/2022 | 49,895 | 0.9 | 1,399,205 | 0.8 | |||||||||||
Old Navy | Waikele Center, South Bay Marketplace, Alamo Quarry Market | 7/31/2020 4/30/2021 9/30/2022 | 59,780 | 1.0 | * | * | |||||||||||
Marshalls | Solana Beach Towne Centre, Carmel Mountain Plaza | 1/31/2025 1/31/2029 | 68,055 | 1.2 | 1,335,447 | 0.7 | |||||||||||
GE Healthcare | City Center Bellevue | 12/31/2021 | 32,304 | 0.6 | 1,324,464 | 0.7 | |||||||||||
Cisco Systems, Inc. | City Center Bellevue | 2/28/2023 | 29,415 | 0.5 | 1,264,845 | 0.7 | |||||||||||
Regal Cinemas | Alamo Quarry Market | 3/31/2023 | 72,447 | 1.2 | 1,231,599 | 0.7 | |||||||||||
Ruth's Chris Steak House | Torrey Reserve Campus, Waikiki Beach Walk | 1/31/2020 2/29/2028 | 14,741 | 0.3 | 1,228,570 | 0.7 | |||||||||||
Esterline Technologies | City Center Bellevue | 9/30/2023 | 36,870 | 0.6 | 1,220,468 | 0.7 | |||||||||||
TOTAL | 1,698,838 | 29.0 | % | $ | 67,236,204 | 36.9 | % |
* | Data withheld at tenant’s request. |
(1) | Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents before abatements) for the month ended December 31, 2018 for the applicable lease(s) by (ii) 12. |
(2) | The tenant may terminate 17,173 square feet of its lease by giving 6 month notice on or before April 30, 2021. |
(3) | The tenant may terminate its lease at any time with 90 days notice. |
Region | Number of Properties | Net Rentable Square Feet | Percentage of Net Rentable Square Feet (1) | |||||
Southern California | 9 | 2,143,797 | 36.7 | % | ||||
Northern California | 4 | 1,225,713 | 21.0 | |||||
Oregon | 3 | 864,397 | 14.8 | |||||
Washington | 1 | 497,472 | 8.5 | |||||
Texas | 1 | 588,970 | 10.1 | |||||
Hawaii (2) | 3 | 526,425 | 9.0 | |||||
Total | 21 | 5,846,774 | 100.0 | % |
(1) | Percentage of Net Rentable Square Feet is calculated based on the total net rentable square feet available in our retail portfolio, office portfolio and the retail portion of our mixed-use portfolio. |
(2) | Includes the retail portion related to the mixed-use property. |
Segment | Number of Properties | Property Operating Income | Percentage of Property Operating Income | ||||||
Retail | 12 | $ | 75,474 | 36.0 | % | ||||
Office | 8 | 78,502 | 37.5 | ||||||
Mixed-Use | 1 | 30,186 | 14.4 | ||||||
Multifamily | 6 | 25,250 | 12.1 | ||||||
Total | 27 | $ | 209,412 | 100.0 | % |
Year of Lease Expiration | Square Footage of Expiring Leases | Percentage of Portfolio Net Rentable Square Feet | Annualized Base Rent (1) | Percentage of Portfolio Annualized Base Rent | Annualized Base Rent Per Leased Square Foot (2) | ||||||||||||
Available | 434,660 | 7.4 | % | $ | — | — | % | $ | — | ||||||||
Month to Month | 42,049 | 0.7 | 783,344 | 0.4 | 18.63 | ||||||||||||
2019 | 326,002 | 5.6 | 14,350,194 | 7.9 | 44.02 | ||||||||||||
2020 | 591,945 | 10.1 | 19,568,840 | 10.7 | 33.06 | ||||||||||||
2021 | 446,021 | 7.6 | 21,405,902 | 11.7 | 47.99 | ||||||||||||
2022 | 697,099 | 11.9 | 26,447,949 | 14.5 | 37.94 | ||||||||||||
2023 | 671,492 | 11.5 | 25,225,628 | 13.8 | 37.57 | ||||||||||||
2024 | 489,759 | 8.4 | 14,843,574 | 8.1 | 30.31 | ||||||||||||
2025 | 421,536 | 7.2 | 12,307,787 | 6.7 | 29.20 | ||||||||||||
2026 | 233,098 | 4.0 | 7,542,467 | 4.1 | 32.36 | ||||||||||||
2027 | 148,677 | 2.5 | 5,053,036 | 2.8 | 33.99 | ||||||||||||
2028 | 555,573 | 9.5 | 10,511,685 | 5.8 | 18.92 | ||||||||||||
Thereafter | 571,257 | 9.8 | 24,340,533 | 13.3 | 42.61 | ||||||||||||
Signed Leases Not Commenced | 217,606 | 3.7 | — | — | — | ||||||||||||
Total: | 5,846,774 | 100.0 | % | $ | 182,380,939 | 100.0 | % | $ | 31.19 |
(1) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2018 for the leases expiring during the applicable period, by 12. |
(2) | Annualized base rent per leased square foot is calculated by dividing annualized base rent for leases expiring during the applicable period by square footage under such expiring leases. |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR OUR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Per Share Price | Dividend per Common Share | |||||||||||
Period | Low | High | ||||||||||
First Quarter 2017 | $ | 40.80 | $ | 44.57 | $ | 0.2600 | ||||||
Second Quarter 2017 | $ | 38.38 | $ | 44.53 | $ | 0.2600 | ||||||
Third Quarter 2017 | $ | 38.25 | $ | 40.95 | $ | 0.2600 | ||||||
Fourth Quarter 2017 | $ | 37.66 | $ | 41.37 | $ | 0.2700 | ||||||
First Quarter 2018 | $ | 31.72 | $ | 38.16 | $ | 0.2700 | ||||||
Second Quarter 2018 | $ | 32.45 | $ | 38.79 | $ | 0.2700 | ||||||
Third Quarter 2018 | $ | 36.75 | $ | 39.64 | $ | 0.2700 | ||||||
Fourth Quarter 2018 | $ | 35.46 | $ | 42.81 | $ | 0.2800 |
Period | Distribution per Unit | |||
First Quarter 2017 | $ | 0.26 | ||
Second Quarter 2017 | $ | 0.26 | ||
Third Quarter 2017 | $ | 0.26 | ||
Fourth Quarter 2017 | $ | 0.27 | ||
First Quarter 2018 | $ | 0.27 | ||
Second Quarter 2018 | $ | 0.27 | ||
Third Quarter 2018 | $ | 0.27 | ||
Fourth Quarter 2018 | $ | 0.28 |
ITEM 6. | SELECTED FINANCIAL DATA |
American Assets Trust, Inc. | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Statement of Operations Data: | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Rental income | $ | 309,537 | $ | 298,803 | $ | 279,498 | $ | 261,887 | $ | 246,078 | |||||||||
Other property income | 21,330 | 16,180 | 15,590 | 13,736 | 13,922 | ||||||||||||||
Total revenues | 330,867 | 314,983 | 295,088 | 275,623 | 260,000 | ||||||||||||||
Expenses: | |||||||||||||||||||
Rental expenses | 86,482 | 84,006 | 79,553 | 73,187 | 68,267 | ||||||||||||||
Real estate taxes | 34,973 | 32,671 | 28,378 | 24,819 | 22,964 | ||||||||||||||
General and administrative | 22,784 | 21,382 | 17,897 | 20,074 | 18,532 | ||||||||||||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | 63,392 | 66,568 | ||||||||||||||
Total operating expenses | 251,332 | 221,337 | 197,147 | 181,472 | 176,331 | ||||||||||||||
Operating income | 79,535 | 93,646 | 97,941 | 94,151 | 83,669 | ||||||||||||||
Interest expense | (52,248 | ) | (53,848 | ) | (51,936 | ) | (47,260 | ) | (52,965 | ) | |||||||||
Gain on sale of real estate | — | — | — | 7,121 | — | ||||||||||||||
Other income (expense), net | (85 | ) | 334 | (368 | ) | (97 | ) | 441 | |||||||||||
Net income | 27,202 | 40,132 | 45,637 | 53,915 | 31,145 | ||||||||||||||
Net income attributable to restricted shares | (311 | ) | (241 | ) | (189 | ) | (168 | ) | (374 | ) | |||||||||
Net income attributable to unitholders in the Operating Partnership | (7,205 | ) | (10,814 | ) | (12,863 | ) | (15,238 | ) | (9,015 | ) | |||||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 19,686 | $ | 29,077 | $ | 32,585 | $ | 38,509 | $ | 21,756 | |||||||||
Income from operations attributable to common stockholders per share | |||||||||||||||||||
Basic earnings (loss) per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | $ | 0.87 | $ | 0.52 | |||||||||
Diluted earnings (loss) per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | $ | 0.86 | $ | 0.51 | |||||||||
Net income attributable to common stockholders per share | |||||||||||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | $ | 0.87 | $ | 0.52 | |||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | $ | 0.86 | $ | 0.51 | |||||||||
Weighted average shares of common stock outstanding - basic | 46,950,812 | 46,715,520 | 45,332,471 | 44,439,112 | 42,041,126 | ||||||||||||||
Weighted average shares of common stock outstanding - diluted | 64,136,559 | 64,087,250 | 63,228,159 | 62,339,163 | 59,947,474 | ||||||||||||||
Dividends declared per share | $ | 1.0900 | $ | 1.0500 | $ | 1.0100 | $ | 0.9475 | $ | 0.8925 |
American Assets Trust, Inc. | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Net real estate | $ | 2,039,853 | $ | 2,076,707 | $ | 1,831,546 | $ | 1,834,862 | $ | 1,775,400 | |||||||||
Total assets | 2,198,250 | 2,259,864 | 1,986,933 | 1,974,289 | 1,936,401 | ||||||||||||||
Notes payable and line of credit | 1,290,772 | 1,325,020 | 1,061,530 | 1,055,613 | 1,057,450 | ||||||||||||||
Total liabilities | 1,395,779 | 1,415,720 | 1,148,382 | 1,145,362 | 1,169,825 | ||||||||||||||
Stockholders' equity | 802,977 | 833,710 | 809,556 | 799,562 | 735,303 | ||||||||||||||
Noncontrolling interests | (506 | ) | 10,434 | 28,995 | 29,365 | 31,273 | |||||||||||||
Total equity | 802,471 | 844,144 | 838,551 | 828,927 | 766,576 | ||||||||||||||
Total liabilities and equity | 2,198,250 | 2,259,864 | 1,986,933 | 1,974,289 | 1,936,401 | ||||||||||||||
Other Data: | |||||||||||||||||||
Funds from operations (FFO) (1) | $ | 134,295 | $ | 123,410 | $ | 116,956 | $ | 110,186 | $ | 97,713 | |||||||||
FFO attributable to common stock and units | 133,990 | 123,174 | 116,773 | 110,027 | 97,576 |
(1) | We present FFO because we consider FFO an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. 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, impairment losses, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is 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. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or service indebtedness. FFO also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP. |
Year Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | $ | 53,915 | $ | 31,145 | |||||||||
Plus: Real estate depreciation and amortization | 107,093 | 83,278 | 71,319 | 63,392 | 66,568 | ||||||||||||||
Less: Gain on sale of real estate | — | — | — | (7,121 | ) | — | |||||||||||||
Funds from operations, as defined by NAREIT | 134,295 | 123,410 | 116,956 | 110,186 | 97,713 | ||||||||||||||
Less: Nonforfeitable dividends on restricted stock awards | (305 | ) | (236 | ) | (183 | ) | (159 | ) | (137 | ) | |||||||||
FFO attributable to common stock and units | $ | 133,990 | $ | 123,174 | $ | 116,773 | $ | 110,027 | $ | 97,576 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
December 31, | ||||||||
2018 | 2017 | 2016 | ||||||
Same-Store | 23 | 21 | 20 | |||||
Non-Same Store | 4 | 5 | 4 | |||||
Total Properties | 27 | 26 | 24 | |||||
Redevelopment Same-Store | 24 | 22 | 22 | |||||
Total Development Properties | 3 | 4 | 4 |
Year Ended December 31, 2018 | ||||||||||||||||||||||||
Segment | Tenant Improvements and Leasing Commissions | Maintenance Capital Expenditures | Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures | Redevelopment and Expansions | New Development | Total Capital Expenditures | ||||||||||||||||||
Retail Portfolio | $ | 4,137 | $ | 7,498 | $ | 11,635 | $ | 2,584 | $ | — | $ | 14,219 | ||||||||||||
Office Portfolio | 28,645 | 8,439 | 37,084 | 6,730 | 1,378 | 45,192 | ||||||||||||||||||
Multifamily Portfolio | — | 3,659 | 3,659 | — | — | 3,659 | ||||||||||||||||||
Mixed-Use Portfolio | 336 | 941 | 1,277 | — | — | 1,277 | ||||||||||||||||||
Total | $ | 33,118 | $ | 20,537 | $ | 53,655 | $ | 9,314 | $ | 1,378 | $ | 64,347 | ||||||||||||
Year Ended December 31, 2017 | ||||||||||||||||||||||||
Segment | Tenant Improvements and Leasing Commissions | Maintenance Capital Expenditures | Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures | Redevelopment and Expansions | New Development | Total Capital Expenditures | ||||||||||||||||||
Retail Portfolio | $ | 8,416 | $ | 2,050 | $ | 10,466 | $ | — | $ | (54 | ) | $ | 10,412 | |||||||||||
Office Portfolio | 12,856 | 8,744 | 21,600 | — | 13,423 | 35,023 | ||||||||||||||||||
Multifamily Portfolio | — | 6,318 | 6,318 | — | — | 6,318 | ||||||||||||||||||
Mixed-Use Portfolio | 328 | 342 | 670 | — | — | 670 | ||||||||||||||||||
Total | $ | 21,600 | $ | 17,454 | $ | 39,054 | $ | — | $ | 13,369 | $ | 52,423 | ||||||||||||
Year Ended December 31, | ||||||||||||||
2018 | 2017 | Change | % | |||||||||||
Revenues | ||||||||||||||
Rental income | $ | 309,537 | $ | 298,803 | $ | 10,734 | 4 | % | ||||||
Other property income | 21,330 | 16,180 | 5,150 | 32 | ||||||||||
Total property revenues | 330,867 | 314,983 | 15,884 | 5 | ||||||||||
Expenses | ||||||||||||||
Rental expenses | 86,482 | 84,006 | 2,476 | 3 | ||||||||||
Real estate taxes | 34,973 | 32,671 | 2,302 | 7 | ||||||||||
Total property expenses | 121,455 | 116,677 | 4,778 | 4 | ||||||||||
Net operating income | 209,412 | 198,306 | 11,106 | 6 | ||||||||||
General and administrative | (22,784 | ) | (21,382 | ) | (1,402 | ) | 7 | |||||||
Depreciation and amortization | (107,093 | ) | (83,278 | ) | (23,815 | ) | 29 | |||||||
Interest expense | (52,248 | ) | (53,848 | ) | 1,600 | (3 | ) | |||||||
Other income (expense), net | (85 | ) | 334 | (419 | ) | (125 | ) | |||||||
Net income | 27,202 | 40,132 | (12,930 | ) | (32 | ) | ||||||||
Net income attributable to restricted shares | (311 | ) | (241 | ) | (70 | ) | 29 | |||||||
Net income attributable to unitholders in the Operating Partnership | (7,205 | ) | (10,814 | ) | 3,609 | (33 | ) | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 19,686 | $ | 29,077 | $ | (9,391 | ) | (32 | )% |
Percentage Leased (1) Year Ended December 31, | |||||
2018 | 2017 | ||||
Retail | 93.9 | % | 96.8 | % | |
Office | 90.9 | % | 88.4 | % | |
Multifamily | 93.6 | % | 91.8 | % | |
Mixed-Use (2) | 96.1 | % | 96.9 | % |
(1) | The percentage leased includes the square footage under lease, including leases which may not have commenced as of December 31, 2018 or December 31, 2017, as applicable. |
(2) | Includes the retail portion of the mixed-use property only. |
Total Portfolio | Same-Store Portfolio (1) | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | % | 2018 | 2017 | Change | % | ||||||||||||||||||||||
Retail | $ | 103,671 | $ | 102,510 | $ | 1,161 | 1 | % | $ | 83,713 | $ | 81,558 | $ | 2,155 | 3 | % | |||||||||||||
Office | 102,618 | 100,429 | 2,189 | 2 | 102,175 | 100,158 | 2,017 | 2 | |||||||||||||||||||||
Multifamily | 47,076 | 40,360 | 6,716 | 17 | 30,900 | 29,876 | 1,024 | 3 | |||||||||||||||||||||
Mixed-Use | 56,172 | 55,504 | 668 | 1 | 56,172 | 55,504 | 668 | 1 | |||||||||||||||||||||
$ | 309,537 | $ | 298,803 | $ | 10,734 | 4 | % | $ | 272,960 | $ | 267,096 | $ | 5,864 | 2 | % |
(1) | For this table and tables following, the same-store portfolio includes the Forever 21 building at Del Monte Center which we acquired on September 1, 2017 after previously owning the underlying land. The same-store portfolio excludes: (i) the Pacific Ridge Apartments as it was acquired on April 28, 2017; (ii) Gateway Marketplace as it was acquired on July 6, 2017; (iii) Waikele Center due to significant redevelopment activity; (iv) Torrey Point, which was placed into operations and became available for occupancy in August 2018 and (v) land held for development. |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | % | 2018 | 2017 | Change | % | ||||||||||||||||||||||
Retail | $ | 1,881 | $ | 1,458 | $ | 423 | 29 | % | $ | 1,021 | $ | 457 | $ | 564 | 123 | % | |||||||||||||
Office | 9,744 | 5,265 | 4,479 | 85 | 8,196 | 5,370 | 2,826 | 53 | |||||||||||||||||||||
Multifamily | 3,551 | 3,173 | 378 | 12 | 2,886 | 2,673 | 213 | 8 | |||||||||||||||||||||
Mixed-Use | 6,154 | 6,284 | (130 | ) | (2 | ) | 6,154 | 6,284 | (130 | ) | (2 | ) | |||||||||||||||||
$ | 21,330 | $ | 16,180 | $ | 5,150 | 32 | % | $ | 18,257 | $ | 14,784 | $ | 3,473 | 23 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | % | 2018 | 2017 | Change | % | ||||||||||||||||||||||
Retail | $ | 16,273 | $ | 15,049 | $ | 1,224 | 8 | % | $ | 12,392 | $ | 11,979 | $ | 413 | 3 | % | |||||||||||||
Office | 21,934 | 21,860 | 74 | — | 21,443 | 21,292 | 151 | 1 | |||||||||||||||||||||
Multifamily | 14,264 | 12,742 | 1,522 | 12 | 10,426 | 9,825 | 601 | 6 | |||||||||||||||||||||
Mixed-Use | 34,011 | 34,355 | (344 | ) | (1 | ) | 34,011 | 34,355 | (344 | ) | (1 | ) | |||||||||||||||||
$ | 86,482 | $ | 84,006 | $ | 2,476 | 3 | % | $ | 78,272 | $ | 77,451 | $ | 821 | 1 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | % | 2018 | 2017 | Change | % | ||||||||||||||||||||||
Retail | $ | 13,805 | $ | 13,475 | $ | 330 | 2 | % | $ | 10,633 | $ | 10,371 | $ | 262 | 3 | % | |||||||||||||
Office | 11,926 | 11,260 | 666 | 6 | 11,515 | 10,970 | 545 | 5 | |||||||||||||||||||||
Multifamily | 6,177 | 5,156 | 1,021 | 20 | 3,529 | 3,305 | 224 | 7 | |||||||||||||||||||||
Mixed-Use | 3,065 | 2,780 | 285 | 10 | 3,065 | 2,780 | 285 | 10 | |||||||||||||||||||||
$ | 34,973 | $ | 32,671 | $ | 2,302 | 7 | % | $ | 28,742 | $ | 27,426 | $ | 1,316 | 5 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | % | 2018 | 2017 | Change | % | ||||||||||||||||||||||
Retail | $ | 75,474 | $ | 75,444 | $ | 30 | — | % | $ | 61,709 | $ | 59,665 | $ | 2,044 | 3 | % | |||||||||||||
Office | 78,502 | 72,574 | 5,928 | 8 | 77,413 | 73,266 | 4,147 | 6 | |||||||||||||||||||||
Multifamily | 30,186 | 25,635 | 4,551 | 18 | 19,831 | 19,419 | 412 | 2 | |||||||||||||||||||||
Mixed-Use | 25,250 | 24,653 | 597 | 2 | 25,250 | 24,653 | 597 | 2 | |||||||||||||||||||||
$ | 209,412 | $ | 198,306 | $ | 11,106 | 6 | % | $ | 184,203 | $ | 177,003 | $ | 7,200 | 4 | % |
Year Ended December 31, | Change | % | ||||||||||||
2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||
Rental income | $ | 298,803 | $ | 279,498 | $ | 19,305 | 7 | % | ||||||
Other property income | 16,180 | 15,590 | 590 | 4 | ||||||||||
Total property revenues | 314,983 | 295,088 | 19,895 | 7 | ||||||||||
Expenses | ||||||||||||||
Rental expenses | 84,006 | 79,553 | 4,453 | 6 | ||||||||||
Real estate taxes | 32,671 | 28,378 | 4,293 | 15 | ||||||||||
Total property expenses | 116,677 | 107,931 | 8,746 | 8 | ||||||||||
Net operating income | 198,306 | 187,157 | 11,149 | 6 | ||||||||||
General and administrative | (21,382 | ) | (17,897 | ) | (3,485 | ) | 19 | |||||||
Depreciation and amortization | (83,278 | ) | (71,319 | ) | (11,959 | ) | 17 | |||||||
Interest expense | (53,848 | ) | (51,936 | ) | (1,912 | ) | 4 | |||||||
Other income (expense), net | 334 | (368 | ) | 702 | (191 | ) | ||||||||
Net income | 40,132 | 45,637 | (5,505 | ) | (12 | ) | ||||||||
Net income attributable to restricted shares | (241 | ) | (189 | ) | (52 | ) | 28 | |||||||
Net income attributable to unitholders in the Operating Partnership | (10,814 | ) | (12,863 | ) | 2,049 | (16 | ) | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 29,077 | $ | 32,585 | $ | (3,508 | ) | (11 | )% |
Percentage Leased (1) Year Ended December 31, | |||||
2017 | 2016 | ||||
Retail | 96.8 | % | 96.6 | % | |
Office | 88.4 | % | 90.1 | % | |
Multifamily | 91.8 | % | 90.3 | % | |
Mixed-Use (2) | 96.9 | % | 98.7 | % |
(1) | The percentage leased includes the square footage under lease, including leases which may not have commenced as of December 31, 2017 or December 31, 2016, as applicable. |
(2) | Includes the retail portion of the mixed-use property only. |
Total Portfolio | Same-Store Portfolio (1) | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | Change | % | 2017 | 2016 | Change | % | ||||||||||||||||||||||
Retail | $ | 102,510 | $ | 99,655 | $ | 2,855 | 3 | % | $ | 99,506 | $ | 99,190 | $ | 316 | — | % | |||||||||||||
Office | 100,429 | 97,396 | 3,033 | 3 | 82,823 | 80,490 | 2,333 | 3 | |||||||||||||||||||||
Multifamily | 40,360 | 26,998 | 13,362 | 49 | 18,682 | 18,100 | 582 | 3 | |||||||||||||||||||||
Mixed-Use | 55,504 | 55,449 | 55 | — | 55,504 | 55,449 | 55 | — | |||||||||||||||||||||
$ | 298,803 | $ | 279,498 | $ | 19,305 | 7 | % | $ | 256,515 | $ | 253,229 | $ | 3,286 | 1 | % |
(1) | For this table and tables following, the same-store portfolio excludes: (i) Torrey Reserve Campus due to significant redevelopment activity during the period; (ii) Hassalo on Eighth - Multifamily, which became available for occupancy in July and October of 2015; (iii) Hassalo on Eighth - Retail, which was placed in operation in April and July of 2016; (iv) the Pacific Ridge Apartments, as it was acquired on April 28, 2017; (v) Gateway Marketplace, as it was acquired on July 6, 2017; and (vi) land held for development. |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | Change | % | 2017 | 2016 | Change | % | ||||||||||||||||||||||
Retail | $ | 1,458 | $ | 1,327 | $ | 131 | 10 | % | $ | 1,270 | $ | 1,256 | $ | 14 | 1 | % | |||||||||||||
Office | 5,265 | 5,858 | (593 | ) | (10 | ) | 5,299 | 5,643 | (344 | ) | (6 | ) | |||||||||||||||||
Multifamily | 3,173 | 2,190 | 983 | 45 | 1,390 | 1,254 | 136 | 11 | |||||||||||||||||||||
Mixed-Use | 6,284 | 6,215 | 69 | 1 | 6,284 | 6,215 | 69 | 1 | |||||||||||||||||||||
$ | 16,180 | $ | 15,590 | $ | 590 | 4 | % | $ | 14,243 | $ | 14,368 | $ | (125 | ) | (1 | )% |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | Change | % | 2017 | 2016 | Change | % | ||||||||||||||||||||||
Retail | $ | 15,049 | $ | 15,564 | $ | (515 | ) | (3 | )% | $ | 14,513 | $ | 15,395 | $ | (882 | ) | (6 | )% | |||||||||||
Office | 21,860 | 21,031 | 829 | 4 | 18,355 | 17,983 | 372 | 2 | |||||||||||||||||||||
Multifamily | 12,742 | 9,878 | 2,864 | 29 | 5,192 | 4,961 | 231 | 5 | |||||||||||||||||||||
Mixed-Use | 34,355 | 33,080 | 1,275 | 4 | 34,355 | 33,080 | 1,275 | 4 | |||||||||||||||||||||
$ | 84,006 | $ | 79,553 | $ | 4,453 | 6 | % | $ | 72,415 | $ | 71,419 | $ | 996 | 1 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | Change | % | 2017 | 2016 | Change | % | ||||||||||||||||||||||
Retail | $ | 13,475 | $ | 12,370 | $ | 1,105 | 9 | % | $ | 12,991 | $ | 12,226 | $ | 765 | 6 | % | |||||||||||||
Office | 11,260 | 10,808 | 452 | 4 | 8,999 | 8,712 | 287 | 3 | |||||||||||||||||||||
Multifamily | 5,156 | 2,620 | 2,536 | 97 | 1,740 | 1,710 | 30 | 2 | |||||||||||||||||||||
Mixed-Use | 2,780 | 2,580 | 200 | 8 | 2,780 | 2,580 | 200 | 8 | |||||||||||||||||||||
$ | 32,671 | $ | 28,378 | $ | 4,293 | 15 | % | $ | 26,510 | $ | 25,228 | $ | 1,282 | 5 | % |
Total Portfolio | Same-Store Portfolio | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | Change | % | 2017 | 2016 | Change | % | ||||||||||||||||||||||
Retail | $ | 75,444 | $ | 73,048 | $ | 2,396 | 3 | % | $ | 73,272 | $ | 72,825 | $ | 447 | 1 | % | |||||||||||||
Office | 72,574 | 71,415 | 1,159 | 2 | 60,768 | 59,438 | 1,330 | 2 | |||||||||||||||||||||
Multifamily | 25,635 | 16,690 | 8,945 | 54 | 13,140 | 12,683 | 457 | 4 | |||||||||||||||||||||
Mixed-Use | 24,653 | 26,004 | (1,351 | ) | (5 | ) | 24,653 | 26,004 | (1,351 | ) | (5 | ) | |||||||||||||||||
$ | 198,306 | $ | 187,157 | $ | 11,149 | 6 | % | $ | 171,833 | $ | 170,950 | $ | 883 | 1 | % |
Payments by Period | |||||||||||||||||||||||||||
Contractual Obligations | Total | Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | More than 5 Years | ||||||||||||||||||||
Principal payments on long-term indebtedness | $ | 1,232,765 | $ | 120,762 | $ | 51,003 | $ | 150,000 | $ | 111,000 | $ | 150,000 | $ | 650,000 | |||||||||||||
Line of credit (1) | 64,000 | — | — | — | 64,000 | — | — | ||||||||||||||||||||
Interest payments | 265,894 | 46,513 | 43,915 | 41,343 | 35,925 | 28,711 | 69,487 | ||||||||||||||||||||
Operating lease | 8,922 | 3,347 | 3,422 | 2,153 | — | — | — | ||||||||||||||||||||
Tenant-related commitments | 61,068 | 60,864 | 100 | 104 | — | — | — | ||||||||||||||||||||
Construction-related commitments | 8,016 | 8,016 | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 1,640,665 | $ | 239,502 | $ | 98,440 | $ | 193,600 | $ | 210,925 | $ | 178,711 | $ | 719,487 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net operating income | $ | 209,412 | $ | 198,306 | $ | 187,157 | |||||
General and administrative | (22,784 | ) | (21,382 | ) | (17,897 | ) | |||||
Depreciation and amortization | (107,093 | ) | (83,278 | ) | (71,319 | ) | |||||
Interest expense | (52,248 | ) | (53,848 | ) | (51,936 | ) | |||||
Other income (expense), net | (85 | ) | 334 | (368 | ) | ||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Plus: Real estate depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||||
Funds from operations, as defined by NAREIT | $ | 134,295 | $ | 123,410 | $ | 116,956 | |||||
Less: Nonforfeitable dividends on restricted stock awards | (305 | ) | (236 | ) | (183 | ) | |||||
FFO attributable to common stock and units | $ | 133,990 | $ | 123,174 | $ | 116,773 | |||||
FFO per diluted share/unit | $ | 2.09 | $ | 1.92 | $ | 1.85 | |||||
Weighted average number of common shares and units, diluted (1) | 64,139,437 | 64,089,921 | 63,230,829 |
(1) | For the years ended December 31, 2018, 2017 and 2016 the weighted average common shares used to compute FFO per diluted share include unvested restricted stock awards that are subject to time vesting, as the vesting of the restricted stock awards is dilutive in the computation of FFO per diluted shares, but is anti-dilutive for the computation of diluted EPS for the periods. Diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit No. | Description |
3.1(1) | |
3.2(1) | |
3.3(2) | |
4.1(1) | |
10.1(3) | |
10.2(3) | |
10.3(1) | |
10.4(1) | |
10.5* | |
10.6(1) | |
10.7(1) | |
10.8(3) | |
10.9(1) | |
10.10(1) | |
10.11(3) | |
10.12(4) | |
10.13(5) | |
10.14(5) | |
10.15(6) | |
10.16(7) | |
10.17(7) | |
10.18(8) | |
10.19* | |
10.20(9) |
Exhibit No. | Description |
10.21(9) | |
10.22(9) | |
10.23(10) | |
10.24(11) | |
10.25(12) | |
10.26(13) | |
10.27(14) | |
10.28(15) | |
10.29(16) | |
10.30(17) | |
10.31(18) | |
10.32(18) | |
10.33(18) | |
10.34(18) | |
10.35(18) | |
10.36(19) | |
10.37(20) | |
10.38(20) | |
10.39(21) | |
10.40(21) | |
10.41(21) | |
10.42(21) | |
10.43(21) | |
10.44(22) |
Exhibit No. | Description |
21.1* | |
23.1* | |
23.2* | |
31.1* | |
31.2* | |
31.3* | |
31.4* | |
32.1* | |
32.2* | |
101* | The company's Annual Report on Form 10-K for the year ended December 31, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statement of Equity, (iv) Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements, tagged as blocks of text |
* | Filed herewith. |
(1) | Incorporated herein by reference to American Assets Trust, Inc.'s Registration Statement on Form S-11, as amended (File No. 333-169326), filed with the Securities and Exchange Commission on September 13, 2010. |
(2) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2015. |
(3) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 19, 2011. |
(4) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 20, 2011. |
(5) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 10, 2012. |
(6) | Incorporated herein by reference to American Assets Trust, Inc’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 7, 2012. |
(7) | Incorporated herein by reference to American Assets Trust, Inc’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 10, 2012. |
(8) | Incorporated herein by reference to American Assets Trust, Inc’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 9, 2014. |
(9) | Incorporated herein by reference to American Assets Trust, Inc’s Current Report on Form 10-Q filed with the Securities and Exchange Commission on May 2, 2014. |
(10) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 15, 2014. |
(11) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 17, 2014. |
(12) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 31, 2014. |
(13) | Incorporated herein by reference to American Assets Trust, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2015. |
(14) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 10-Q filed with the Securities and Exchange Commission on November 6, 2015. |
(15) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 10-Q filed with the Securities and Exchange Commission on July 29, 2016. |
(16) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 1, 2017. |
(17) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 27, 2017. |
(18) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 23, 2017. |
(19) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on July 19, 2017. |
(20) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 9, 2018. |
(21) | Incorporated herein by reference to American Assets Trust, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2018. |
(22) | Incorporated herein by reference to American Assets Trust, Inc's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 9, 2019. |
American Assets Trust, Inc. | American Assets Trust, L.P. | |
By: American Assets Trust, Inc. | ||
Its: General Partner | ||
/s/ ERNEST RADY | /s/ ERNEST RADY | |
Ernest Rady | Ernest Rady | |
Chairman, President and Chief Executive Officer | Chairman, President and Chief Executive Officer | |
(Principal Executive Officer) | (Principal Executive Officer) | |
/s/ ROBERT F. BARTON | /s/ ROBERT F. BARTON | |
Robert F. Barton Executive Vice President and Chief Financial Officer | Robert F. Barton Executive Vice President and Chief Financial Officer | |
(Principal Financial and Accounting Officer) | (Principal Financial and Accounting Officer) |
Signature | Title | Date | ||
/s/ ERNEST RADY | Chairman of the Board, President and Chief Executive Officer | February 15, 2019 | ||
Ernest Rady | ||||
/s/ ROBERT F. BARTON | Executive Vice President, Chief Financial Officer and Treasurer | February 15, 2019 | ||
Robert F. Barton | ||||
/s/ LARRY E. FINGER | Director | February 15, 2019 | ||
Larry E. Finger | ||||
/s/ DUANE A. NELLES | Director | February 15, 2019 | ||
Duane A. Nelles | ||||
/s/ THOMAS S. OLINGER | Director | February 15, 2019 | ||
Thomas S. Olinger | ||||
/s/ ROBERT S. SULLIVAN | Director | February 15, 2019 | ||
Robert S. Sullivan |
American Assets Trust, Inc. | |
Consolidated Balance Sheets as of December 31, 2018 and 2017 | |
Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Equity for the years ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 | |
American Assets Trust, L.P. | |
Consolidated Balance Sheets as of December 31, 2018 and 2017 | |
Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 | |
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 2,549,571 | $ | 2,536,474 | |||
Construction in progress | 71,228 | 68,272 | |||||
Held for development | 9,392 | 9,392 | |||||
2,630,191 | 2,614,138 | ||||||
Accumulated depreciation | (590,338 | ) | (537,431 | ) | |||
Net real estate | 2,039,853 | 2,076,707 | |||||
Cash and cash equivalents | 47,956 | 82,610 | |||||
Restricted cash | 9,316 | 9,344 | |||||
Accounts receivable, net | 9,289 | 9,869 | |||||
Deferred rent receivables, net | 39,815 | 38,973 | |||||
Other assets, net | 52,021 | 42,361 | |||||
TOTAL ASSETS | $ | 2,198,250 | $ | 2,259,864 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured notes payable | $ | 182,572 | $ | 279,550 | |||
Unsecured notes payable | 1,045,863 | 1,045,470 | |||||
Unsecured line of credit | 62,337 | — | |||||
Accounts payable and accrued expenses | 46,616 | 38,069 | |||||
Security deposits payable | 8,844 | 6,570 | |||||
Other liabilities and deferred credits | 49,547 | 46,061 | |||||
Total liabilities | 1,395,779 | 1,415,720 | |||||
Commitments and contingencies (Note 12) | |||||||
EQUITY: | |||||||
American Assets Trust, Inc. stockholders' equity | |||||||
Common stock, $0.01 par value, 490,000,000 shares authorized, 47,335,409 and 47,204,588 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 474 | 473 | |||||
Additional paid-in capital | 920,661 | 919,066 | |||||
Accumulated dividends in excess of net income | (128,778 | ) | (97,280 | ) | |||
Accumulated other comprehensive income | 10,620 | 11,451 | |||||
Total American Assets Trust, Inc. stockholders' equity | 802,977 | 833,710 | |||||
Noncontrolling interests | (506 | ) | 10,434 | ||||
Total equity | 802,471 | 844,144 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,198,250 | $ | 2,259,864 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
REVENUE: | |||||||||||
Rental income | $ | 309,537 | $ | 298,803 | $ | 279,498 | |||||
Other property income | 21,330 | 16,180 | 15,590 | ||||||||
Total revenue | 330,867 | 314,983 | 295,088 | ||||||||
EXPENSES: | |||||||||||
Rental expenses | 86,482 | 84,006 | 79,553 | ||||||||
Real estate taxes | 34,973 | 32,671 | 28,378 | ||||||||
General and administrative | 22,784 | 21,382 | 17,897 | ||||||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||||
Total operating expenses | 251,332 | 221,337 | 197,147 | ||||||||
OPERATING INCOME | 79,535 | 93,646 | 97,941 | ||||||||
Interest expense | (52,248 | ) | (53,848 | ) | (51,936 | ) | |||||
Other income (expense), net | (85 | ) | 334 | (368 | ) | ||||||
NET INCOME | 27,202 | 40,132 | 45,637 | ||||||||
Net income attributable to restricted shares | (311 | ) | (241 | ) | (189 | ) | |||||
Net income attributable to unitholders in the Operating Partnership | (7,205 | ) | (10,814 | ) | (12,863 | ) | |||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ | 19,686 | $ | 29,077 | $ | 32,585 | |||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||||
Basic income attributable to common stockholders per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | |||||
Weighted average shares of common stock outstanding - basic | 46,950,812 | 46,715,520 | 45,332,471 | ||||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||||
Diluted income attributable to common stockholders per share | $ | 0.42 | $ | 0.62 | $ | 0.72 | |||||
Weighted average shares of common stock outstanding - diluted | 64,136,559 | 64,087,250 | 63,228,159 | ||||||||
COMPREHENSIVE INCOME | |||||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 120 | 386 | 17,048 | ||||||||
Reclassification of amortization of forward starting swap included in interest expense | (1,279 | ) | (1,114 | ) | (231 | ) | |||||
Comprehensive income | 26,043 | 39,404 | 62,454 | ||||||||
Comprehensive income attributable to noncontrolling interest | (6,877 | ) | (10,433 | ) | (17,624 | ) | |||||
Comprehensive income attributable to American Assets Trust, Inc. | $ | 19,166 | $ | 28,971 | $ | 44,830 |
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 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance at December 31, 2015 | 45,407,719 | $ | 454 | $ | 863,432 | $ | (64,066 | ) | $ | (258 | ) | $ | 29,365 | $ | 828,927 | |||||||||||
Net income | — | — | — | 32,774 | — | 12,863 | 45,637 | |||||||||||||||||||
Common shares issued | 219,480 | 2 | 9,638 | — | — | — | 9,640 | |||||||||||||||||||
Issuance of restricted stock | 148,110 | 1 | (1 | ) | — | — | — | — | ||||||||||||||||||
Forfeiture of restricted stock | (33,707 | ) | — | — | — | — | — | — | ||||||||||||||||||
Conversion of operating partnership units | 10,694 | — | (79 | ) | — | — | 79 | — | ||||||||||||||||||
Dividends declared and paid | — | — | — | (46,004 | ) | — | (18,073 | ) | (64,077 | ) | ||||||||||||||||
Stock-based compensation | — | — | 2,414 | — | — | — | 2,414 | |||||||||||||||||||
Shares withheld for employee taxes | (20,187 | ) | — | (807 | ) | — | — | — | (807 | ) | ||||||||||||||||
Other comprehensive income - change in value of interest rate swap | — | — | — | — | 12,222 | 4,826 | 17,048 | |||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | — | — | — | — | (166 | ) | (65 | ) | (231 | ) | ||||||||||||||||
Balance at December 31, 2016 | 45,732,109 | 457 | 874,597 | (77,296 | ) | 11,798 | 28,995 | 838,551 | ||||||||||||||||||
Net income | — | — | — | 29,318 | — | 10,814 | 40,132 | |||||||||||||||||||
Common shares issued | 700,000 | 7 | 29,866 | — | — | — | 29,873 | |||||||||||||||||||
Issuance of restricted stock | 150,098 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||
Forfeiture of restricted stock | (48,624 | ) | — | — | — | — | — | — | ||||||||||||||||||
Conversion of operating partnership units | 693,842 | 7 | 10,752 | — | — | (10,759 | ) | — | ||||||||||||||||||
Dividends declared and paid | — | — | — | (49,302 | ) | — | (18,235 | ) | (67,537 | ) | ||||||||||||||||
Stock-based compensation | — | — | 4,735 | — | — | — | 4,735 | |||||||||||||||||||
Shares withheld for employee taxes | (22,837 | ) | — | (882 | ) | — | — | — | (882 | ) | ||||||||||||||||
Other comprehensive loss - change in value of interest rate swap | — | — | — | — | (7,310 | ) | (2,971 | ) | (10,281 | ) | ||||||||||||||||
Other comprehensive income - unrealized gain on forward-starting interest rate swaps | — | — | — | — | 7,775 | 2,892 | 10,667 | |||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | — | — | — | — | (812 | ) | (302 | ) | (1,114 | ) | ||||||||||||||||
Balance at December 31, 2017 | 47,204,588 | 473 | 919,066 | (97,280 | ) | 11,451 | 10,434 | 844,144 | ||||||||||||||||||
Net income | — | — | — | 19,997 | — | 7,205 | 27,202 | |||||||||||||||||||
Issuance of restricted stock | 205,110 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||
Forfeiture of restricted stock | (78,975 | ) | (1 | ) | 1 | — | — | — | — | |||||||||||||||||
Conversion of operating partnership units | 17,372 | — | (916 | ) | — | — | 916 | — | ||||||||||||||||||
Dividends declared and paid | — | — | — | (51,495 | ) | — | (18,733 | ) | (70,228 | ) | ||||||||||||||||
Stock-based compensation | — | — | 3,039 | — | — | — | 3,039 |
Shares withheld for employee taxes | (12,686 | ) | — | (527 | ) | — | — | — | (527 | ) | ||||||||||||||||
Other comprehensive income - change in value of interest rate swap | — | — | — | — | 105 | 15 | 120 | |||||||||||||||||||
Reclassification of amortization of forward-starting swap included in interest expense | — | — | — | — | (936 | ) | (343 | ) | (1,279 | ) | ||||||||||||||||
Balance at December 31, 2018 | 47,335,409 | $ | 474 | $ | 920,661 | $ | (128,778 | ) | $ | 10,620 | $ | (506 | ) | $ | 802,471 |
Year ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred rent revenue and amortization of lease intangibles | (1,157 | ) | (2,547 | ) | (2,637 | ) | |||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||||
Amortization of debt issuance costs and debt fair value adjustments | 1,530 | 3,058 | 4,473 | ||||||||
Stock-based compensation expense | 3,039 | 4,735 | 2,414 | ||||||||
Settlement of forward interest rate swap agreement | — | 10,667 | — | ||||||||
Other noncash interest expense | (1,279 | ) | (1,114 | ) | (231 | ) | |||||
Other, net | 383 | 901 | (769 | ) | |||||||
Changes in operating assets and liabilities | |||||||||||
Change in accounts receivable | (336 | ) | (1,116 | ) | (2,347 | ) | |||||
Change in other assets | (227 | ) | (499 | ) | (982 | ) | |||||
Change in accounts payable and accrued expenses | (3,297 | ) | 7,632 | 1,371 | |||||||
Change in security deposits payable | 2,274 | 456 | 158 | ||||||||
Change in other liabilities and deferred credits | 1,282 | 270 | 2,275 | ||||||||
Net cash provided by operating activities | 136,507 | 145,853 | 120,681 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate, net | — | (278,141 | ) | — | |||||||
Capital expenditures | (54,411 | ) | (47,496 | ) | (59,633 | ) | |||||
Leasing commissions | (9,936 | ) | (4,927 | ) | (3,572 | ) | |||||
Net cash used in investing activities | (64,347 | ) | (330,564 | ) | (63,205 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Repayment of secured notes payable | (97,124 | ) | (167,139 | ) | (136,974 | ) | |||||
Proceeds from unsecured term loan | — | — | 150,000 | ||||||||
Proceeds from unsecured line of credit | 84,000 | 173,000 | 34,000 | ||||||||
Repayment of unsecured line of credit | (20,000 | ) | (193,000 | ) | (44,000 | ) | |||||
Proceeds from issuance of unsecured notes payable | — | 450,000 | — | ||||||||
Debt issuance costs | (2,727 | ) | (2,401 | ) | (2,055 | ) | |||||
Proceeds from issuance of common stock, net | (236 | ) | 29,873 | 9,640 | |||||||
Dividends paid to common stock and unitholders | (70,228 | ) | (67,537 | ) | (64,077 | ) | |||||
Shares withheld for employee taxes | (527 | ) | (882 | ) | (807 | ) | |||||
Net cash provided by (used in) financing activities | (106,842 | ) | 221,914 | (54,273 | ) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (34,682 | ) | 37,203 | 3,203 | |||||||
Cash, cash equivalents and restricted cash, beginning of year | 91,954 | 54,751 | 51,548 | ||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 57,272 | $ | 91,954 | $ | 54,751 |
Year ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash and cash equivalents | $ | 47,956 | $ | 82,610 | $ | 44,801 | |||||
Restricted cash | 9,316 | 9,344 | 9,950 | ||||||||
Total cash, cash equivalents and restricted cash shown in Statement of Cash Flows | $ | 57,272 | $ | 91,954 | $ | 54,751 |
December 31, | December 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 2,549,571 | $ | 2,536,474 | |||
Construction in progress | 71,228 | 68,272 | |||||
Held for development | 9,392 | 9,392 | |||||
2,630,191 | 2,614,138 | ||||||
Accumulated depreciation | (590,338 | ) | (537,431 | ) | |||
Net real estate | 2,039,853 | 2,076,707 | |||||
Cash and cash equivalents | 47,956 | 82,610 | |||||
Restricted cash | 9,316 | 9,344 | |||||
Accounts receivable, net | 9,289 | 9,869 | |||||
Deferred rent receivables, net | 39,815 | 38,973 | |||||
Other assets, net | 52,021 | 42,361 | |||||
TOTAL ASSETS | $ | 2,198,250 | $ | 2,259,864 | |||
LIABILITIES AND CAPITAL | |||||||
LIABILITIES: | |||||||
Secured notes payable | $ | 182,572 | $ | 279,550 | |||
Unsecured notes payable | 1,045,863 | 1,045,470 | |||||
Unsecured line of credit | 62,337 | — | |||||
Accounts payable and accrued expenses | 46,616 | 38,069 | |||||
Security deposits payable | 8,844 | 6,570 | |||||
Other liabilities and deferred credits | 49,547 | 46,061 | |||||
Total liabilities | 1,395,779 | 1,415,720 | |||||
Commitments and contingencies (Note 12) | |||||||
CAPITAL: | |||||||
Limited partners' capital, 17,177,608 and 17,194,980 units issued and outstanding as of December 31, 2018 and December 31, 2017, respectively | (4,477 | ) | 6,135 | ||||
General partner's capital, 47,335,409 and 47,204,588 units issued and outstanding as of December 31, 2018 and December 31, 2017, respectively | 792,357 | 822,259 | |||||
Accumulated other comprehensive income | 14,591 | 15,750 | |||||
Total capital | 802,471 | 844,144 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 2,198,250 | $ | 2,259,864 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
REVENUE: | |||||||||||
Rental income | $ | 309,537 | $ | 298,803 | $ | 279,498 | |||||
Other property income | 21,330 | 16,180 | 15,590 | ||||||||
Total revenue | 330,867 | 314,983 | 295,088 | ||||||||
EXPENSES: | |||||||||||
Rental expenses | 86,482 | 84,006 | 79,553 | ||||||||
Real estate taxes | 34,973 | 32,671 | 28,378 | ||||||||
General and administrative | 22,784 | 21,382 | 17,897 | ||||||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||||
Total operating expenses | 251,332 | 221,337 | 197,147 | ||||||||
OPERATING INCOME | 79,535 | 93,646 | 97,941 | ||||||||
Interest expense | (52,248 | ) | (53,848 | ) | (51,936 | ) | |||||
Other income (expense), net | (85 | ) | 334 | (368 | ) | ||||||
NET INCOME | 27,202 | 40,132 | 45,637 | ||||||||
Net income attributable to restricted shares | (311 | ) | (241 | ) | (189 | ) | |||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, L.P. | $ | 26,891 | $ | 39,891 | $ | 45,448 | |||||
EARNINGS PER UNIT - BASIC | |||||||||||
Earnings per unit, basic | $ | 0.42 | $ | 0.62 | $ | 0.72 | |||||
Weighted average units outstanding, basic | 64,136,559 | 64,087,250 | 63,228,159 | ||||||||
EARNINGS PER UNIT - DILUTED | |||||||||||
Earnings per unit, diluted | $ | 0.42 | $ | 0.62 | $ | 0.72 | |||||
Weighted average units outstanding, diluted | 64,136,559 | 64,087,250 | 63,228,159 | ||||||||
DISTRIBUTIONS PER UNIT | $ | 1.09 | $ | 1.05 | $ | 1.01 | |||||
COMPREHENSIVE INCOME | |||||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 120 | 386 | 17,048 | ||||||||
Reclassification of amortization of forward starting swap included in interest expense | (1,279 | ) | (1,114 | ) | (231 | ) | |||||
Comprehensive income | 26,043 | 39,404 | 62,454 | ||||||||
Comprehensive income attributable to Limited Partners | (6,877 | ) | (10,433 | ) | (17,624 | ) | |||||
Comprehensive income attributable to General Partners | $ | 19,166 | $ | 28,971 | $ | 44,830 |
Limited Partners' Capital (1) | General Partners' Capital (2) | Accumulated Other Comprehensive Income (Loss) | Total Capital | ||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||
Balance at December 31, 2015 | 17,899,516 | $ | 29,446 | 45,407,719 | $ | 799,820 | $ | (339 | ) | $ | 828,927 | ||||||||||
Net income | — | 12,863 | — | 32,774 | — | 45,637 | |||||||||||||||
Contributions from American Assets Trust, Inc. | — | — | 219,480 | 9,640 | — | 9,640 | |||||||||||||||
Conversion of operating partnership units | (10,694 | ) | 79 | 10,694 | (79 | ) | — | — | |||||||||||||
Issuance of restricted units | — | — | 148,110 | — | — | — | |||||||||||||||
Forfeiture of restricted units | — | — | (33,707 | ) | — | — | — | ||||||||||||||
Distributions | — | (18,073 | ) | — | (46,004 | ) | — | (64,077 | ) | ||||||||||||
Stock-based compensation | — | — | — | 2,414 | — | 2,414 | |||||||||||||||
Units withheld for employee taxes | — | — | (20,187 | ) | (807 | ) | — | (807 | ) | ||||||||||||
Other comprehensive loss - change in value of interest rate swap | — | — | — | — | 17,048 | 17,048 | |||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | — | — | — | — | (231 | ) | (231 | ) | |||||||||||||
Balance at December 31, 2016 | 17,888,822 | 24,315 | 45,732,109 | 797,758 | 16,478 | 838,551 | |||||||||||||||
Net income | — | 10,814 | — | 29,318 | — | 40,132 | |||||||||||||||
Contributions from American Assets Trust, Inc. | — | — | 700,000 | 29,873 | — | 29,873 | |||||||||||||||
Conversion of operating partnership units | (693,842 | ) | (10,759 | ) | 693,842 | 10,759 | — | — | |||||||||||||
Issuance of restricted units | — | — | 150,098 | — | — | — | |||||||||||||||
Forfeiture of restricted units | — | — | (48,624 | ) | — | — | — | ||||||||||||||
Distributions | — | (18,235 | ) | — | (49,302 | ) | — | (67,537 | ) | ||||||||||||
Stock-based compensation | — | — | — | 4,735 | — | 4,735 | |||||||||||||||
Units withheld for employee taxes | — | — | (22,837 | ) | (882 | ) | — | (882 | ) | ||||||||||||
Other comprehensive loss - change in value of interest rate swap | — | — | — | — | (10,281 | ) | (10,281 | ) | |||||||||||||
Reclassification of amortization of forward-starting swap included in interest expense | — | — | — | — | 10,667 | 10,667 | |||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | — | — | — | — | (1,114 | ) | (1,114 | ) | |||||||||||||
Balance at December 31, 2017 | 17,194,980 | 6,135 | 47,204,588 | 822,259 | 15,750 | 844,144 | |||||||||||||||
Net income | — | 7,205 | — | 19,997 | — | 27,202 | |||||||||||||||
Conversion of operating partnership units | (17,372 | ) | 916 | 17,372 | (916 | ) | — | — | |||||||||||||
Issuance of restricted units | — | — | 205,110 | — | — | — | |||||||||||||||
Forfeiture of restricted units | — | — | (78,975 | ) | — | — | — | ||||||||||||||
Distributions | — | (18,733 | ) | — | (51,495 | ) | — | (70,228 | ) | ||||||||||||
Stock-based compensation | — | — | — | 3,039 | — | 3,039 | |||||||||||||||
Units withheld for employee taxes | — | — | (12,686 | ) | (527 | ) | — | (527 | ) |
Other comprehensive loss - change in value of interest rate swap | — | — | — | — | 120 | 120 | |||||||||||||||
Reclassification of amortization of forward-starting swap included in interest expense | — | — | — | — | (1,279 | ) | (1,279 | ) | |||||||||||||
Balance at December 31, 2018 | 17,177,608 | $ | (4,477 | ) | 47,335,409 | $ | 792,357 | $ | 14,591 | $ | 802,471 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred rent revenue and amortization of lease intangibles | (1,157 | ) | (2,547 | ) | (2,637 | ) | |||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||||
Amortization of debt issuance costs and debt fair value adjustments | 1,530 | 3,058 | 4,473 | ||||||||
Stock-based compensation expense | 3,039 | 4,735 | 2,414 | ||||||||
Settlement of forward interest rate swap agreement | — | 10,667 | — | ||||||||
Other noncash interest expense | (1,279 | ) | (1,114 | ) | (231 | ) | |||||
Other, net | 383 | 901 | (769 | ) | |||||||
Changes in operating assets and liabilities | |||||||||||
Change in accounts receivable | (336 | ) | (1,116 | ) | (2,347 | ) | |||||
Change in other assets | (227 | ) | (499 | ) | (982 | ) | |||||
Change in accounts payable and accrued expenses | (3,297 | ) | 7,632 | 1,371 | |||||||
Change in security deposits payable | 2,274 | 456 | 158 | ||||||||
Change in other liabilities and deferred credits | 1,282 | 270 | 2,275 | ||||||||
Net cash provided by operating activities | 136,507 | 145,853 | 120,681 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate, net | — | (278,141 | ) | — | |||||||
Capital expenditures | (54,411 | ) | (47,496 | ) | (59,633 | ) | |||||
Leasing commissions | (9,936 | ) | (4,927 | ) | (3,572 | ) | |||||
Net cash used in investing activities | (64,347 | ) | (330,564 | ) | (63,205 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Repayment of secured notes payable | (97,124 | ) | (167,139 | ) | (136,974 | ) | |||||
Proceeds from unsecured term loan | — | — | 150,000 | ||||||||
Proceeds from unsecured line of credit | 84,000 | 173,000 | 34,000 | ||||||||
Repayment of unsecured line of credit | (20,000 | ) | (193,000 | ) | (44,000 | ) | |||||
Proceeds from issuance of unsecured notes payable | — | 450,000 | — | ||||||||
Debt issuance costs | (2,727 | ) | (2,401 | ) | (2,055 | ) | |||||
Contributions from American Assets Trust, Inc. | (236 | ) | 29,873 | 9,640 | |||||||
Distributions | (70,228 | ) | (67,537 | ) | (64,077 | ) | |||||
Shares withheld for employee taxes | (527 | ) | (882 | ) | (807 | ) | |||||
Net cash provided by (used in) financing activities | (106,842 | ) | 221,914 | (54,273 | ) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (34,682 | ) | 37,203 | 3,203 | |||||||
Cash, cash equivalents and restricted cash, beginning of year | 91,954 | 54,751 | 51,548 | ||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 57,272 | $ | 91,954 | $ | 54,751 |
Year ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash and cash equivalents | $ | 47,956 | $ | 82,610 | $ | 44,801 | |||||
Restricted cash | 9,316 | 9,344 | 9,950 | ||||||||
Total cash, cash equivalents and restricted cash shown in Statement of Cash Flows | $ | 57,272 | $ | 91,954 | $ | 54,751 |
Retail | ||
Carmel Country Plaza | Gateway Marketplace | Alamo Quarry Market |
Carmel Mountain Plaza | Del Monte Center | Hassalo on Eighth - Retail |
South Bay Marketplace | Geary Marketplace | |
Lomas Santa Fe Plaza | The Shops at Kalakaua | |
Solana Beach Towne Centre | Waikele Center |
Office | ||
Torrey Reserve Campus | First & Main | |
Torrey Point | Lloyd District Portfolio | |
Solana Beach Corporate Centre | City Center Bellevue | |
The Landmark at One Market | ||
One Beach Street |
Multifamily | ||
Loma Palisades | Hassalo on Eighth - Multifamily | |
Imperial Beach Gardens | ||
Mariner's Point | ||
Santa Fe Park RV Resort | ||
Pacific Ridge Apartments |
Mixed-Use | ||
Waikiki Beach Walk Retail and Embassy Suites™ Hotel |
Held for Development and Construction in Progress | ||
Solana Beach Corporate Centre – Land | ||
Solana Beach – Highway 101 – Land | ||
Lloyd District Portfolio – Construction in Progress |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Supplemental cash flow information | |||||||||||
Total interest costs incurred | $ | 53,736 | $ | 55,418 | $ | 53,487 | |||||
Interest capitalized | $ | 1,488 | $ | 1,570 | $ | 1,551 | |||||
Interest expense | $ | 52,248 | $ | 53,848 | $ | 51,936 | |||||
Cash paid for interest, net of amounts capitalized | $ | 52,632 | $ | 47,473 | $ | 47,793 | |||||
Cash paid for income taxes | $ | 462 | $ | 461 | $ | 641 | |||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Increase (decrease) in accounts payable and accrued liabilities for construction in progress | $ | 8,379 | $ | (2,746 | ) | $ | (435 | ) | |||
Increase (decrease) in accrued leasing commissions | $ | 3,534 | $ | 726 | $ | (355 | ) | ||||
Reduction to capital for prepaid equity financing costs | $ | 241 | $ | — | $ | — |
Retail | Office | Multifamily | Mixed-Use | Total | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Land | $ | 262,860 | $ | 143,467 | $ | 72,668 | $ | 76,635 | $ | 555,630 | ||||||||||
Buildings | 516,566 | 743,474 | 389,831 | 125,859 | 1,775,730 | |||||||||||||||
Land improvements | 43,412 | 8,825 | 6,778 | 2,606 | 61,621 | |||||||||||||||
Tenant improvements | 70,210 | 91,612 | — | 1,918 | 163,740 | |||||||||||||||
Furniture, fixtures, and equipment | 570 | 2,671 | 13,844 | 6,826 | 23,911 | |||||||||||||||
Construction in progress | 8,598 | 39,511 | 854 | 596 | 49,559 | (1) | ||||||||||||||
902,216 | 1,029,560 | 483,975 | 214,440 | 2,630,191 | ||||||||||||||||
Accumulated depreciation | (273,482 | ) | (206,986 | ) | (71,933 | ) | (37,937 | ) | (590,338 | ) | ||||||||||
Net real estate | $ | 628,734 | $ | 822,574 | $ | 412,042 | $ | 176,503 | $ | 2,039,853 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Land | $ | 262,860 | $ | 143,575 | $ | 72,668 | $ | 76,635 | $ | 555,738 | ||||||||||
Buildings | 548,062 | 705,999 | 383,210 | 125,859 | 1,763,130 | |||||||||||||||
Land improvements | 42,401 | 9,313 | 6,758 | 2,606 | 61,078 | |||||||||||||||
Tenant improvements | 67,879 | 80,968 | — | 1,955 | 150,802 | |||||||||||||||
Furniture, fixtures, and equipment | 372 | 2,085 | 12,377 | 6,429 | 21,263 | |||||||||||||||
Construction in progress | 3,086 | 52,512 | 6,505 | 24 | 62,127 | (1) | ||||||||||||||
924,660 | 994,452 | 481,518 | 213,508 | 2,614,138 | ||||||||||||||||
Accumulated depreciation | (266,006 | ) | (181,331 | ) | (57,474 | ) | (32,620 | ) | (537,431 | ) | ||||||||||
Net real estate | $ | 658,654 | $ | 813,121 | $ | 424,044 | $ | 180,888 | $ | 2,076,707 |
Pacific Ridge Apartments | Gateway Marketplace | |||||
Land | $ | 47,971 | $ | 17,363 | ||
Building | 171,813 | 19,192 | ||||
Land improvements | 3,403 | 1,522 | ||||
Furniture, fixtures, and equipment | 3,281 | 930 | ||||
Total real estate | 226,468 | 39,007 | ||||
Lease intangibles | 5,592 | 2,920 | ||||
Prepaid expenses and other assets | 424 | — | ||||
Assets acquired | $ | 232,484 | $ | 41,927 | ||
Accounts payable and accrued expenses | $ | 74 | $ | 203 | ||
Security deposits payable | 673 | 22 | ||||
Other liabilities and deferred credits | 49 | 1,034 | ||||
Liabilities assumed | $ | 796 | $ | 1,259 |
Pacific Ridge Apartments | Gateway Marketplace | Total | |||||||
Revenues | $ | 10,983 | $ | 1,667 | $ | 12,650 | |||
Operating expenses | $ | 15,238 | $ | 1,082 | $ | 16,320 | |||
Operating (loss) income | $ | (4,255 | ) | $ | 585 | $ | (3,670 | ) | |
Net (loss) income attributable to American Assets Trust, Inc. | $ | (4,255 | ) | $ | 585 | $ | (3,670 | ) |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | ||||||||||||||
As Reported | ProForma | As Reported | ProForma | ||||||||||||
Total revenue | $ | 314,983 | $ | 322,050 | $ | 295,088 | $ | 312,414 | |||||||
Total operating expenses | $ | 221,337 | $ | 230,796 | $ | 197,147 | $ | 215,631 | |||||||
Operating income | $ | 93,646 | $ | 91,255 | $ | 97,941 | $ | 96,783 | |||||||
Net income | $ | 40,132 | $ | 36,433 | $ | 45,637 | $ | 41,916 |
December 31, 2018 | December 31, 2017 | ||||||
In-place leases | $ | 40,884 | $ | 54,206 | |||
Accumulated amortization | (34,603 | ) | (45,835 | ) | |||
Above market leases | 11,963 | 21,262 | |||||
Accumulated amortization | (11,445 | ) | (20,084 | ) | |||
Acquired lease intangible assets, net | $ | 6,799 | $ | 9,549 | |||
Below market leases | $ | 63,172 | $ | 67,423 | |||
Accumulated accretion | (37,220 | ) | (37,241 | ) | |||
Acquired lease intangible liabilities, net | $ | 25,952 | $ | 30,182 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Amortization of in-place leases | $ | (2,090 | ) | $ | (8,769 | ) | $ | (4,029 | ) | ||
Amortization of above market leases | (660 | ) | (934 | ) | (1,248 | ) | |||||
Amortization of below market leases | 4,230 | 4,239 | 4,719 | ||||||||
Net income (loss) | $ | 1,480 | $ | (5,464 | ) | $ | (558 | ) |
In-Place Leases | Above Market Leases | Below Market Leases | |||||||||
Year Ending December 31, | |||||||||||
2019 | $ | 1,620 | $ | 339 | $ | 3,478 | |||||
2020 | 1,053 | 58 | 2,647 | ||||||||
2021 | 719 | 28 | 2,414 | ||||||||
2022 | 632 | 28 | 2,242 | ||||||||
2023 | 539 | 27 | 2,073 | ||||||||
Thereafter | 1,718 | 38 | 13,098 | ||||||||
$ | 6,281 | $ | 518 | $ | 25,952 |
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 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Deferred compensation liability | $ | — | $ | 1,424 | $ | — | $ | 1,424 | $ | — | $ | 1,156 | $ | — | $ | 1,156 | |||||||||
Interest rate swap asset | $ | — | $ | 6,002 | $ | — | $ | 6,002 | $ | — | $ | 5,091 | $ | — | $ | 5,091 | |||||||||
Interest rate swap liability | $ | — | $ | 801 | $ | — | $ | 801 | $ | — | $ | 10 | $ | — | $ | 10 |
December 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Secured notes payable | $ | 182,572 | $ | 183,253 | $ | 279,550 | $ | 286,156 | |||||||
Unsecured term loan | $ | 248,765 | $ | 250,000 | $ | 248,839 | $ | 250,000 | |||||||
Unsecured senior guaranteed notes | $ | 797,098 | $ | 790,267 | $ | 796,631 | $ | 802,699 | |||||||
Unsecured line of credit | $ | 62,337 | $ | 64,000 | $ | — | $ | — |
December 31, 2018 | December 31, 2017 | ||||||
Leasing commissions, net of accumulated amortization of $28,597 and $28,318, respectively | $ | 28,796 | $ | 20,633 | |||
Interest rate swap asset | 6,002 | 5,091 | |||||
Acquired above market leases, net | 518 | 1,178 | |||||
Acquired in-place leases, net | 6,281 | 8,371 | |||||
Lease incentives, net of accumulated amortization of $299 and $136, respectively | 747 | 916 | |||||
Other intangible assets, net of accumulated amortization of $981 and $1,115, respectively | 2,994 | 227 | |||||
Prepaid expenses, deposits and other | 6,683 | 5,945 | |||||
Total other assets | $ | 52,021 | $ | 42,361 |
December 31, 2018 | December 31, 2017 | ||||||
Acquired below market leases, net | $ | 25,952 | $ | 30,182 | |||
Prepaid rent and deferred revenue | 11,634 | 8,429 | |||||
Interest rate swap liability | 801 | 10 | |||||
Straight-line rent liability | 7,393 | 4,428 | |||||
Deferred rent expense and lease intangible | 2,210 | 1,670 | |||||
Deferred compensation | 1,424 | 1,156 | |||||
Deferred tax liability | 93 | 123 | |||||
Other liabilities | 40 | 63 | |||||
Total other liabilities and deferred credits, net | $ | 49,547 | $ | 46,061 |
Description of Debt | Principal Balance as of | Stated Interest Rate | Stated Maturity Date | |||||||||
December 31, 2018 | December 31, 2017 | as of December 31, 2018 | ||||||||||
Loma Palisades (1)(2) | — | 73,744 | 6.09 | % | July 1, 2018 | |||||||
One Beach Street (1)(3) | — | 21,900 | 3.94 | % | April 1, 2019 | |||||||
Torrey Reserve—North Court (4) | 19,620 | 20,023 | 7.22 | % | June 1, 2019 | |||||||
Torrey Reserve—VCI, VCII, VCIII (4) | 6,635 | 6,764 | 6.36 | % | June 1, 2020 | |||||||
Solana Beach Corporate Centre I-II (4) | 10,502 | 10,721 | 5.91 | % | June 1, 2020 | |||||||
Solana Beach Towne Centre (4) | 35,008 | 35,737 | 5.91 | % | June 1, 2020 | |||||||
City Center Bellevue (1) | 111,000 | 111,000 | 3.98 | % | November 1, 2022 | |||||||
182,765 | 279,889 | |||||||||||
Debt issuance costs, net of accumulated amortization of $671 and $1,191, respectively | (193 | ) | (339 | ) | ||||||||
Total Secured Notes Payable | $ | 182,572 | $ | 279,550 |
(1) | Interest only. |
(2) | Loan repaid in full, without premium or penalty, on March 30, 2018. |
(3) | Loan repaid in full, without premium or penalty, on November 30, 2018. |
(4) | Principal payments based on a 30-year amortization schedule. |
Description of Debt | Principal Balance as of | Stated Interest Rate | Stated Maturity Date | ||||||||||
December 31, 2018 | December 31, 2017 | as of December 31, 2018 | |||||||||||
Term Loan A | $ | 100,000 | $ | 100,000 | Variable | (1) | January 9, 2019 | (2) | |||||
Senior Guaranteed Notes, Series A | 150,000 | 150,000 | 4.04 | % | (3) | October 31, 2021 | |||||||
Term Loan B | 100,000 | 100,000 | Variable | (4) | March 1, 2023 | ||||||||
Term Loan C | 50,000 | 50,000 | Variable | (5) | March 1, 2023 | ||||||||
Senior Guaranteed Notes, Series F | 100,000 | 100,000 | 3.78 | % | (6) | July 19, 2024 | |||||||
Senior Guaranteed Notes, Series B | 100,000 | 100,000 | 4.45 | % | February 2, 2025 | ||||||||
Senior Guaranteed Notes, Series C | 100,000 | 100,000 | 4.50 | % | April 1, 2025 | ||||||||
Senior Guaranteed Notes, Series D | 250,000 | 250,000 | 4.29 | % | (7) | March 1, 2027 | |||||||
Senior Guaranteed Notes, Series E | 100,000 | 100,000 | 4.24 | % | (8) | May 23, 2029 | |||||||
1,050,000 | 1,050,000 | ||||||||||||
Debt issuance costs, net of accumulated amortization of $6,844 and $5,866, respectively | (4,137 | ) | (4,530 | ) | |||||||||
Total Unsecured Notes Payable | $ | 1,045,863 | $ | 1,045,470 |
(1) | The company has entered into an interest rate swap agreement that is intended to fix the interest rate associated with the Term Loan at approximately 3.08% through its maturity date and extension options, subject to adjustments based on the Operating Partnership's consolidated leverage ratio. |
(2) | The Operating Partnership's Term Loan A had a maturity date of January 9, 2019 with no options to extend Term Loan A. However, on January 9, 2019, we extended Term Loan A to a maturity date of January 9, 2021 with an option to extend Term Loan A up to three times, with each such extension for a 12-month period. The foregoing extension options are exercisable by the Operating Partnership subject to the satisfaction of certain conditions. |
(3) | The company entered into a one-month forward-starting seven-year swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million (see Note 8). The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum. |
(4) | The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio. |
(5) | The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio. |
(6) | The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum. |
(7) | The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million. The forward-starting interest swap rate contracts were deemed to be highly effective cash flow hedges, accordingly, the effective interest rate is approximately 3.87% per annum. |
(8) | The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum. |
2019 | $ | 120,762 | |
2020 | 51,003 | ||
2021 | 150,000 | ||
2022 | 111,000 | ||
2023 | 150,000 | ||
Thereafter | 650,000 | ||
$ | 1,232,765 |
• | A maximum leverage ratio (defined as total indebtedness net of certain cash and cash equivalents to total asset value) of 60%, |
• | A maximum secured leverage ratio (defined as total secured debt to secured total asset value) of 40%, |
• | A minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x, |
• | A minimum unsecured interest coverage ratio of 1.75x, |
• | A maximum unsecured leverage ratio of 60%, |
• | A minimum tangible net worth of $721.16 million, and 75% of the net proceeds of any additional equity issuances (other than additional equity issuances in connection with any dividend reinvestment program), and |
• | Recourse indebtedness at any time cannot exceed 15% of total asset value. |
• | A maximum leverage ratio (defined as total indebtedness net of certain cash and cash equivalents to total asset value) of 60%, |
• | A maximum secured leverage ratio (defined as total secured debt to secured total asset value) of 40%, |
• | A minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x, |
• | A minimum unsecured interest coverage ratio of 1.75x, |
• | A maximum unsecured leverage ratio of 60%, and |
• | Recourse indebtedness at any time cannot exceed 15% of total asset value. |
Swap Counterparty | Notional Amount | Effective Date | Maturity Date | Fair Value | ||||||||
Bank of America, N.A. | $ | 100,000 | 1/9/2014 | 1/9/2019 | $ | 18 | ||||||
U.S. Bank N.A. | $ | 100,000 | 3/1/2016 | 3/1/2023 | $ | 3,976 | ||||||
Wells Fargo Bank, N.A. | $ | 50,000 | 5/2/2016 | 3/1/2023 | $ | 2,008 | ||||||
Bank of America, N.A. | $ | 100,000 | 1/9/2019 | 1/9/2021 | $ | (801 | ) |
Period | Amount per Share/Unit | Period Covered | Dividend Paid Date | |||||
First Quarter 2016 | $ | 0.25 | January 1, 2016 to March 31, 2016 | March 25, 2016 | ||||
Second Quarter 2016 | $ | 0.25 | April 1, 2016 to June 30, 2016 | June 24, 2016 | ||||
Third Quarter 2016 | $ | 0.25 | July 1, 2016 to September 30, 2016 | September 29, 2016 | ||||
Fourth Quarter 2016 | $ | 0.26 | October 1, 2016 to December 31, 2016 | December 22, 2016 | ||||
First Quarter 2017 | $ | 0.26 | January 1, 2017 to March 31, 2017 | March 30, 2017 | ||||
Second Quarter 2017 | $ | 0.26 | April 1, 2017 to June 30, 2017 | June 29, 2017 | ||||
Third Quarter 2017 | $ | 0.26 | July 1, 2017 to September 30, 2017 | September 28, 2017 | ||||
Fourth Quarter 2017 | $ | 0.27 | October 1, 2017 to December 31, 2017 | December 21, 2017 | ||||
First Quarter 2018 | $ | 0.27 | January 1, 2018 to March 31, 2018 | March 19, 2018 | ||||
Second Quarter 2018 | $ | 0.27 | April 1, 2018 to June 30, 2018 | June 28, 2018 | ||||
Third Quarter 2018 | $ | 0.27 | July 1, 2018 to September 30, 2018 | September 27, 2018 | ||||
Fourth Quarter 2018 | $ | 0.28 | October 1, 2018 to December 31, 2018 | December 27, 2018 |
Year Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
Per Share | % | Per Share | % | Per Share | % | ||||||||||||||||
Ordinary income | $ | 1.05 | 96.3 | % | $ | 1.05 | 100.0 | % | $ | 1.01 | 100.0 | % | |||||||||
Capital gain | — | — | % | — | — | % | — | — | % | ||||||||||||
Return of capital | 0.04 | 3.7 | % | — | — | % | — | — | % | ||||||||||||
Total | $ | 1.09 | 100.0 | % | $ | 1.05 | 100.0 | % | $ | 1.01 | 100.0 | % |
Grant | Fair Value at Grant Date | Number | |
June 14, 2016(1) | $40.81 | 4,900 | |
December 1, 2016 (2) | $28.24 - $35.71 | 143,210 | |
June 13, 2017(1) | $40.99 | 4,880 | |
December 15, 2017 (3) | $27.27 | 145,218 | |
June 12, 2018(1) | $37.58 | 5,320 | |
December 6, 2018 (4) | $25.68 - $28.18 | 199,790 |
(1) | Restricted common stock issued to members of the company's non-employee directors. These awards of restricted stock will vest subject to the director's continued service on the Board of Directors on the earlier of (i) the one year anniversary of the date of grant or (ii) the date of the next annual meeting of our stockholders, if such non-employee director continues his or her service on the Board of Directors until the next annual meeting of stockholders, but not thereafter, pursuant to our independent director compensation policy. |
(2) | Restricted common stock issued to certain of the company's senior management and other employees, which are subject to pre-defined market specific performance criteria based vesting. Up to one-third of the shares of restricted stock may vest based on performance calculations determined as of November 30, 2017, 2018 and 2019, subject to the employee's continued employment on those dates. |
(3) | Restricted common stock issued to certain of the company's senior management and other employees, which are subject to pre-defined market specific performance criteria based vesting. Shares of restricted stock may vest based on performance calculations determined as of November 30, 2018, subject to the employee's continued employment on that date. |
(4) | Restricted common stock issued to certain of the company's senior management and other employees, which are subject to quantitative and qualitative performance criteria based vesting. Up to one-third of the shares of restricted stock may vest based on such performance criteria determined as of November 30, 2019, 2020 and 2021, subject to the employee's continued employment on those dates. |
2018 | ||||||
Units | Weighted Average Grant Date Fair Value | |||||
Balance at beginning of year | 268,768 | $ | 29.89 | |||
Granted | 205,110 | 27.25 | ||||
Vested | (52,810 | ) | 30.04 | |||
Forfeited | (78,975 | ) | 29.70 | |||
Balance at end of year | 342,093 | $ | 28.33 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
NUMERATOR | |||||||||||
Net income from operations | $ | 27,202 | $ | 40,132 | $ | 45,637 | |||||
Less: Net income attributable to restricted shares | (311 | ) | (241 | ) | (189 | ) | |||||
Less: Income from operations attributable to unitholders in the Operating Partnership | (7,205 | ) | (10,814 | ) | (12,863 | ) | |||||
Net income attributable to common stockholders—basic | $ | 19,686 | $ | 29,077 | $ | 32,585 | |||||
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | 19,686 | $ | 29,077 | $ | 32,585 | |||||
Plus: Income from operations attributable to unitholders in the Operating Partnership | 7,205 | 10,814 | 12,863 | ||||||||
Net income attributable to common stockholders—diluted | $ | 26,891 | $ | 39,891 | $ | 45,448 | |||||
DENOMINATOR | |||||||||||
Weighted average common shares outstanding—basic | 46,950,812 | 46,715,520 | 45,332,471 | ||||||||
Effect of dilutive securities—conversion of Operating Partnership units | 17,185,747 | 17,371,730 | 17,895,688 | ||||||||
Weighted average common shares outstanding—diluted | 64,136,559 | 64,087,250 | 63,228,159 | ||||||||
Earnings per common share, basic | $ | 0.42 | $ | 0.62 | $ | 0.72 | |||||
Earnings per common share, diluted | $ | 0.42 | $ | 0.62 | $ | 0.72 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||
Current: | |||||||||||
Federal | $ | 60 | $ | — | $ | 132 | |||||
State | 465 | 422 | 341 | ||||||||
Deferred: | |||||||||||
Federal | $ | (6 | ) | $ | — | $ | — | ||||
State | (192 | ) | (208 | ) | 93 | ||||||
Provision for income taxes | $ | 327 | $ | 214 | $ | 566 |
2019 | $ | 3,347 | ||
2020 | 3,422 | |||
2021 | 2,153 | |||
2022 | — | |||
2023 | — | |||
Thereafter | — | |||
Total | $ | 8,922 |
2019 | $ | 177,144 | |
2020 | 172,821 | ||
2021 | 157,611 | ||
2022 | 138,787 | ||
2023 | 116,985 | ||
Thereafter | 412,934 | ||
Total | $ | 1,176,282 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Minimum rents | |||||||||||
Retail | $ | 77,147 | $ | 76,201 | $ | 74,050 | |||||
Office | 95,081 | 93,128 | 90,281 | ||||||||
Multifamily | 46,897 | 40,217 | 26,962 | ||||||||
Mixed-Use | 11,019 | 10,564 | 10,616 | ||||||||
Cost reimbursement | 34,584 | 34,267 | 33,610 | ||||||||
Percentage rent | 3,149 | 3,214 | 3,096 | ||||||||
Hotel revenue | 40,049 | 39,545 | 39,371 | ||||||||
Other | 1,611 | 1,667 | 1,512 | ||||||||
Total rental income | $ | 309,537 | $ | 298,803 | $ | 279,498 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Rental operating | $ | 37,322 | $ | 34,944 | $ | 31,709 | |||||
Hotel operating | 24,030 | 24,254 | 23,607 | ||||||||
Repairs and maintenance | 13,486 | 13,136 | 12,705 | ||||||||
Marketing | 2,108 | 2,053 | 2,117 | ||||||||
Rent | 3,216 | 3,119 | 2,925 | ||||||||
Hawaii excise tax | 4,333 | 4,454 | 4,511 | ||||||||
Management fees | 1,987 | 2,046 | 1,979 | ||||||||
Total rental expenses | $ | 86,482 | $ | 84,006 | $ | 79,553 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest and investment income | $ | 238 | $ | 548 | $ | 72 | |||||
Income tax expense | (327 | ) | (214 | ) | (566 | ) | |||||
Other non-operating income | 4 | — | 126 | ||||||||
Total other income (expense) | $ | (85 | ) | $ | 334 | $ | (368 | ) |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total Retail | |||||||||||
Property revenue | $ | 105,552 | $ | 103,968 | $ | 100,982 | |||||
Property expense | (30,078 | ) | (28,524 | ) | (27,934 | ) | |||||
Segment profit | 75,474 | 75,444 | 73,048 | ||||||||
Total Office | |||||||||||
Property revenue | 112,362 | 105,694 | 103,254 | ||||||||
Property expense | (33,860 | ) | (33,120 | ) | (31,839 | ) | |||||
Segment profit | 78,502 | 72,574 | 71,415 | ||||||||
Total Multifamily | |||||||||||
Property revenue | 50,627 | 43,533 | 29,188 | ||||||||
Property expense | (20,441 | ) | (17,898 | ) | (12,498 | ) | |||||
Segment profit | 30,186 | 25,635 | 16,690 | ||||||||
Total Mixed-Use | |||||||||||
Property revenue | 62,326 | 61,788 | 61,664 | ||||||||
Property expense | (37,076 | ) | (37,135 | ) | (35,660 | ) | |||||
Segment profit | 25,250 | 24,653 | 26,004 | ||||||||
Total segments’ profit | $ | 209,412 | $ | 198,306 | $ | 187,157 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total segments' profit | $ | 209,412 | $ | 198,306 | $ | 187,157 | |||||
General and administrative | (22,784 | ) | (21,382 | ) | (17,897 | ) | |||||
Depreciation and amortization | (107,093 | ) | (83,278 | ) | (71,319 | ) | |||||
Interest expense | (52,248 | ) | (53,848 | ) | (51,936 | ) | |||||
Other income (expense), net | (85 | ) | 334 | (368 | ) | ||||||
Net income | 27,202 | 40,132 | 45,637 | ||||||||
Net income attributable to restricted shares | (311 | ) | (241 | ) | (189 | ) | |||||
Net income attributable to unitholders in the Operating Partnership | (7,205 | ) | (10,814 | ) | (12,863 | ) | |||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 19,686 | $ | 29,077 | $ | 32,585 |
December 31, 2018 | December 31, 2017 | ||||||
Net real estate | |||||||
Retail | $ | 628,734 | $ | 658,654 | |||
Office | 822,574 | 813,121 | |||||
Multifamily | 412,042 | 424,044 | |||||
Mixed-Use | 176,503 | 180,888 | |||||
$ | 2,039,853 | $ | 2,076,707 | ||||
Secured Notes Payable (1) | |||||||
Retail | $ | 35,008 | $ | 35,737 | |||
Office | 147,757 | 170,408 | |||||
Multifamily | — | 73,744 | |||||
Mixed-Use | — | — | |||||
$ | 182,765 | $ | 279,889 | ||||
Capital Expenditures (2) | |||||||
Retail | $ | 14,219 | $ | 10,412 | |||
Office | 45,192 | 35,023 | |||||
Multifamily | 3,659 | 6,318 | |||||
Mixed-Use | 1,277 | 670 | |||||
$ | 64,347 | $ | 52,423 |
(1) | Excludes unamortized debt issuance costs of $0.2 million and $0.3 million as of December 31, 2018 and 2017, respectively. |
(2) | Capital expenditures represent cash paid for capital expenditures during the year and includes leasing commissions paid. |
Three Months Ended | |||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||
Total revenue | $ | 82,605 | $ | 82,507 | $ | 85,023 | $ | 80,732 | |||||||
Operating income | 22,091 | 27,275 | 17,249 | 12,920 | |||||||||||
Net income (loss) | 9,209 | 14,271 | 4,413 | (691 | ) | ||||||||||
Net (income) loss attributable to restricted shares | (96 | ) | (71 | ) | (216 | ) | 72 | ||||||||
Net (income) loss attributable to unitholders in the Operating Partnership | (2,440 | ) | (3,806 | ) | (1,125 | ) | 166 | ||||||||
Net income (loss) attributable to American Assets Trust, Inc. stockholders | $ | 6,673 | $ | 10,394 | $ | 3,072 | $ | (453 | ) | ||||||
Net income (loss) per share attributable to common stockholders - basic and diluted | $ | 0.14 | $ | 0.22 | $ | 0.07 | $ | (0.01 | ) | ||||||
Three Months Ended | |||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||
Total revenue | $ | 81,746 | $ | 82,339 | $ | 77,106 | $ | 73,792 | |||||||
Operating income | 23,792 | 26,477 | 20,048 | 23,329 | |||||||||||
Net income | 9,731 | 12,505 | 7,588 | 10,308 | |||||||||||
Net income attributable to restricted shares | (60 | ) | (60 | ) | (61 | ) | (60 | ) | |||||||
Net income attributable to unitholders in the Operating Partnership | (2,594 | ) | (3,351 | ) | (2,008 | ) | (2,861 | ) | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 7,077 | $ | 9,094 | $ | 5,519 | $ | 7,387 | |||||||
Net income per share attributable to common stockholders - basic and diluted | $ | 0.15 | $ | 0.19 | $ | 0.12 | $ | 0.16 |
Three Months Ended | |||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||
Total revenue | $ | 82,605 | $ | 82,507 | $ | 85,023 | $ | 80,732 | |||||||
Operating income | 22,091 | 27,275 | 17,249 | 12,920 | |||||||||||
Net income | 9,209 | 14,271 | 4,413 | (691 | ) | ||||||||||
Net income attributable to restricted shares | (96 | ) | (71 | ) | (216 | ) | 72 | ||||||||
Net income attributable to American Assets Trust, L.P. unit holders | $ | 9,113 | $ | 14,200 | $ | 4,197 | $ | (619 | ) | ||||||
Net income per unit attributable to unit holders - basic and diluted | $ | 0.14 | $ | 0.22 | $ | 0.07 | $ | (0.01 | ) | ||||||
Three Months Ended | |||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||
Total revenue | $ | 81,746 | $ | 82,339 | $ | 77,106 | $ | 73,792 | |||||||
Operating income | 23,792 | 26,477 | 20,048 | 23,329 | |||||||||||
Net income | 9,731 | 12,505 | 7,588 | 10,308 | |||||||||||
Net income attributable to restricted shares | (60 | ) | (60 | ) | (61 | ) | (60 | ) | |||||||
Net income attributable to American Assets Trust, L.P. unit holders | $ | 9,671 | $ | 12,445 | $ | 7,527 | $ | 10,248 | |||||||
Net income per unit attributable to common unit holders - basic and diluted | $ | 0.15 | $ | 0.19 | $ | 0.12 | $ | 0.16 |
Encumbrance as of December 31, 2018 | Initial Cost | Cost Capitalized Subsequent to Acquisition | Gross Carrying Amount at December 31, 2018 | Accumulated Depreciation and Amortization | Year Built/ Renovated | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||
Description | Land | Building and Improvements | Land | Building and Improvements | |||||||||||||||||||||||||||||
Alamo Quarry Market | $ | — | $ | 26,396 | $ | 109,294 | $ | 17,370 | $ | 26,816 | $ | 126,244 | $ | (57,885 | ) | 1997/1999 | 12/9/2003 | 35 years | |||||||||||||||
Carmel Country Plaza | — | 4,200 | — | 12,806 | 4,200 | 12,806 | (8,251 | ) | 1991 | 1/10/1989 | 35 years | ||||||||||||||||||||||
Carmel Mountain Plaza | — | 22,477 | 65,217 | 29,434 | 31,035 | 86,093 | (41,264 | ) | 1994/2014 | 3/28/2003 | 35 years | ||||||||||||||||||||||
Del Monte Center | — | 27,412 | 87,570 | 32,894 | 27,117 | 120,759 | (62,170 | ) | 1967/1984/2006 | 4/8/2004 | 35 years | ||||||||||||||||||||||
Gateway Marketplace | — | 17,363 | 21,644 | 1,097 | 17,363 | 22,741 | (1,199 | ) | 1997/2016 | 7/6/2017 | 35 years | ||||||||||||||||||||||
Geary Marketplace | — | 8,239 | 12,353 | 167 | 8,238 | 12,521 | (2,396 | ) | 2012 | 12/19/2012 | 35 years | ||||||||||||||||||||||
Hassalo on Eighth - Retail | — | — | — | 28,364 | 597 | 27,767 | (3,668 | ) | 2015 | 7/1/2011 | 35 years | ||||||||||||||||||||||
Lomas Santa Fe Plaza | — | 8,600 | 11,282 | 13,421 | 8,620 | 24,683 | (16,348 | ) | 1972/1997 | 6/12/1995 | 35 years | ||||||||||||||||||||||
The Shops at Kalakaua | — | 13,993 | 10,817 | (6 | ) | 14,006 | 10,798 | (4,366 | ) | 1971/2006 | 3/31/2005 | 35 years | |||||||||||||||||||||
Solana Beach Towne Centre | 35,008 | 40,980 | 38,842 | 3,158 | 40,980 | 42,000 | (10,827 | ) | 1973/2000/2004 | 1/19/2011 | 35 years | ||||||||||||||||||||||
South Bay Marketplace | — | 4,401 | — | 11,931 | 4,401 | 11,931 | (7,311 | ) | 1997 | 9/16/1995 | 35 years | ||||||||||||||||||||||
Waikele Center | — | 55,593 | 126,858 | 29,202 | 70,643 | 141,010 | (57,608 | ) | 1993/2008 | 9/16/2004 | 35 years | ||||||||||||||||||||||
City Center Bellevue | 111,000 | 25,135 | 190,998 | 36,074 | 25,135 | 227,072 | (43,740 | ) | 1987 | 8/21/2012 | 40 years | ||||||||||||||||||||||
First & Main | — | 14,697 | 109,739 | 7,690 | 14,697 | 117,429 | (28,457 | ) | 2010 | 3/11/2011 | 40 years | ||||||||||||||||||||||
The Landmark at One Market | — | 34,575 | 141,196 | 6,800 | 34,575 | 147,996 | (37,857 | ) | 1917/2000 | 6/30/2010 | 40 years | ||||||||||||||||||||||
Lloyd District Portfolio | — | 18,660 | 61,401 | 69,444 | 11,845 | 137,660 | (28,415 | ) | 1940-2015 | 7/1/2011 | 40 years | ||||||||||||||||||||||
One Beach Street | — | 15,332 | 18,017 | 2,723 | 15,332 | 20,740 | (4,965 | ) | 1924/1972/1987/1992 | 1/24/2012 | 40 years | ||||||||||||||||||||||
Solana Beach Corporate Centre: | |||||||||||||||||||||||||||||||||
Solana Beach Corporate Centre I-II | 10,502 | 7,111 | 17,100 | 6,076 | 7,111 | 23,176 | (5,563 | ) | 1982/2005 | 1/19/2011 | 40 years | ||||||||||||||||||||||
Solana Beach Corporate Centre III-IV | — | 7,298 | 27,887 | 3,199 | 7,298 | 31,086 | (7,516 | ) | 1982/2005 | 1/19/2011 | 40 years | ||||||||||||||||||||||
Solana Beach Corporate Centre Land | — | 487 | — | 60 | 547 | — | — | N/A | 1/19/2011 | N/A | |||||||||||||||||||||||
Torrey Reserve Campus: | |||||||||||||||||||||||||||||||||
Torrey Plaza | — | 4,095 | — | 49,281 | 5,408 | 47,968 | (16,524 | ) | 1996-1997/2014 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Pacific North Court | 19,620 | 3,263 | — | 24,116 | 4,309 | 23,070 | (11,740 | ) | 1997-1998 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Pacific South Court | — | 3,285 | — | 37,800 | 4,226 | 36,859 | (13,105 | ) | 1996-1997 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Pacific VC | 6,635 | 1,413 | — | 9,736 | 2,148 | 9,001 | (4,901 | ) | 1998/2000 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Pacific Torrey Daycare | — | 715 | — | 1,843 | 911 | 1,647 | (902 | ) | 1996-1997 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Torrey Reserve Building 6 | — | — | — | 7,992 | 682 | 7,310 | (1,485 | ) | 2013 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Torrey Reserve Building 5 | — | — | — | 3,937 | 1,017 | 2,920 | (214 | ) | 2014 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Torrey Reserve Building 13 & 14 | — | — | — | 15,587 | 2,188 | 13,399 | (1,207 | ) | 2015 | 6/6/1989 | 40 years | ||||||||||||||||||||||
Torrey Point | — | 2,073 | 741 | 41,985 | 6,037 | 38,762 | (395 | ) | 2018 | 5/9/1997 | 40 years | ||||||||||||||||||||||
Imperial Beach Gardens | — | 1,281 | 4,820 | 4,894 | 1,281 | 9,714 | (8,054 | ) | 1959/2008 | 7/31/1985 | 30 years | ||||||||||||||||||||||
Loma Palisades | — | 14,000 | 16,570 | 25,982 | 14,051 | 42,501 | (27,988 | ) | 1958/2001-2008 | 7/20/1990 | 30 years | ||||||||||||||||||||||
Mariner’s Point | — | 2,744 | 4,540 | 1,553 | 2,744 | 6,093 | (3,430 | ) | 1986 | 5/9/2001 | 30 years | ||||||||||||||||||||||
Santa Fe Park RV Resort | — | 401 | 928 | 841 | 401 | 1,769 | (1,483 | ) | 1971/2007-2008 | 6/1/1979 | 30 years | ||||||||||||||||||||||
Pacific Ridge Apartments | — | 47,971 | 178,497 | 1,094 | 47,971 | 179,591 | (11,329 | ) | 2013 | 4/28/2017 | 30 years | ||||||||||||||||||||||
Hassalo on Eighth - Multifamily | — | — | — | 177,859 | 6,220 | 171,639 | (19,649 | ) | 2015 | 7/1/2011 | 30 years | ||||||||||||||||||||||
Waikiki Beach Walk: | |||||||||||||||||||||||||||||||||
Retail | — | 45,995 | 74,943 | 430 | 45,995 | 75,373 | (18,753 | ) | 2006 | 1/19/2011 | 35 years | ||||||||||||||||||||||
Hotel | — | 30,640 | 60,029 | 2,404 | 30,640 | 62,433 | (19,184 | ) | 2008/2014 | 1/19/2011 | 35 years | ||||||||||||||||||||||
Solana Beach - Highway 101 Land | — | 7,847 | 202 | 796 | 8,845 | — | (189 | ) | N/A | 9/20/2011 | N/A |
Encumbrance as of December 31, 2018 | Initial Cost | Cost Capitalized Subsequent to Acquisition | Gross Carrying Amount at December 31, 2018 | Accumulated Depreciation and Amortization | Year Built/ Renovated | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||
Description | Land | Building and Improvements | Land | Building and Improvements | |||||||||||||||||||||||||||||
$ | 182,765 | $ | 518,672 | $ | 1,391,485 | $ | 720,034 | $ | 555,630 | $ | 2,074,561 | $ | (590,338 | ) |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Real estate assets | |||||||||||
Balance, beginning of period | $ | 2,614,138 | 2,301,006 | 2,246,028 | |||||||
Additions: | |||||||||||
Property acquisitions | — | 270,602 | — | ||||||||
Improvements | 62,790 | 44,755 | 59,199 | ||||||||
Deductions: | |||||||||||
Cost of Real Estate Sold | — | — | — | ||||||||
Other (1) | (46,737 | ) | (2,225 | ) | (4,221 | ) | |||||
Balance, end of period | $ | 2,630,191 | $ | 2,614,138 | $ | 2,301,006 | |||||
Accumulated depreciation | |||||||||||
Balance, beginning of period | $ | 537,431 | $ | 469,460 | $ | 411,166 | |||||
Additions—depreciation | 99,644 | 70,196 | 62,515 | ||||||||
Deductions: | |||||||||||
Cost of Real Estate Sold | — | — | — | ||||||||
Other (1) | (46,737 | ) | (2,225 | ) | (4,221 | ) | |||||
Balance, end of period | $ | 590,338 | $ | 537,431 | $ | 469,460 |
(1) | Other deductions for the years ended December 31, 2018, 2017 and 2016 represent the write-off of fully depreciated assets. |
Participant: | [__________] |
Grant Date: | [__________] |
Grant Number: | [__________] |
Maximum Number of Shares of Restricted Stock (“Maximum Shares”): | [__________] |
Target Number of Shares of Restricted Stock (“Target Shares”): | [__________] |
Vesting Schedule: | This Award shall vest in accordance with the vesting schedule set forth on Exhibit C attached hereto. |
AMERICAN ASSETS TRUST, INC. | PARTICIPANT | |||||
By: | By: | |||||
Adam Wyll, SVP 11455 El Camino Real, #200 San Diego, CA 92130 | [__________] 11455 El Camino Real, #200 San Diego, CA 92130 |
Relative TSR Performance Relative to the Bloomberg Shopping Center REIT Index for the Performance Period | TSR Performance Multiplier |
+500 bps and above | 150% |
+400 bps | 140% |
+300 bps | 130% |
+200 bps | 120% |
+100 bps | 110% |
0 bps | 100% |
-100 bps | 90% |
-200 bps | 80% |
-300 bps | 70% |
-400 bps | 60% |
-499 bps | 50% |
-500 bps and below | Up to 50% as determined by the Administrator in its reasonable discretion based on the Administrator's qualitative assessment of overall Company and Participant performance during the Performance Period |
(h) | “Final Measurement Date” means November 30, 2021. |
Position | Target Bonus Percentage (as % of Base Salary) | |
Executive Vice President and Chief Financial Officer | 100% | |
Senior Vice President, General Counsel and Secretary | 75% | |
Vice President of Construction and Development | 50% |
Name | ||
Jurisdiction of Formation/Incorporation | ||
AAT CC Bellevue, LLC | Delaware | |
AAT Geary Marketplace, LLC | Delaware | |
AAT Lloyd District, LLC | Delaware | |
AAT One Beach, LLC | Delaware | |
AAT Oregon Office I, LLC | Delaware | |
AAT Solana 101, LLC | Delaware | |
AAT Torrey Point, LLC | Delaware | |
AAT Torrey Reserve 5, LLC | Delaware | |
AAT Torrey Reserve 6, LLC | Delaware | |
AAT Torrey 13-14, LLC | Delaware | |
AAT Alamo Quarry, LLC | Delaware | |
AAT Del Monte, LLC | Delaware | |
AAT Del Monte 2, LLC | Delaware | |
AAT Waikele Center, LLC | Delaware | |
AAT Pacific Ridge, LLC | Delaware | |
AAT Gateway Marketplace, LLC | Delaware | |
ABW 2181 Holdings, LLC | Hawaii | |
ABW Holdings, LLC | Delaware | |
ABW Lewers, LLC | Hawaii | |
American Assets Services, Inc. | Delaware | |
American Assets Trust Management, LLC | Delaware | |
American Assets Trust, LP | Maryland | |
Beach Walk Holdings, LLC | Delaware | |
Broadway 225 Sorrento Holdings, LLC | Delaware | |
Broadway 225 Stonecrest Holdings, LLC | Delaware | |
Carmel County Plaza, LP | California | |
Carmel Mountain Pad, LLC | California | |
EBW Hotel, LLC | Hawaii | |
ICW Café Lessee, LLC | Delaware | |
AAT Torrey Plaza, LLC | Delaware | |
ICW Plaza Merger Sub, LLC | Delaware | |
Imperial Strand Holdings, LLC | Delaware | |
Landmark FireHill Holdings, LLC | Delaware | |
Landmark Venture Holdings, LLC | Delaware | |
Landmark Venture JV, LLC | Delaware | |
Lloyd District TRS, LLC | Delaware | |
Lomas Palisades CA general partnership | California | |
Lomas Palisades GP LLC | Delaware | |
Mariner's Point Holdings, LLC | Delaware | |
Pacific Carmel Mountain Assets, LLC | Delaware | |
Pacific Carmel Mountain Holdings, LP | California | |
Pacific Del Mar Assets, LLC | Delaware | |
Pacific Firecreek Holdings, LLC | Delaware |
Name | ||
Jurisdiction of Formation/Incorporation | ||
Pacific North Court GP, LLC | Delaware | |
Pacific North Court Holdings, LP | California | |
Pacific Santa Fe Assets, LLC | Delaware | |
Pacific Santa Fe Holdings, LP | California | |
Pacific Solana Beach Assets, LLC | Delaware | |
Pacific Solana Beach Holdings, LP | California | |
Pacific South Court Assets, LLC | Delaware | |
Pacific South Court Holdings, LP | California | |
Pacific Torrey Daycare Assets, LLC | Delaware | |
Pacific Torrey Daycare Holdings, LP | California | |
Pacific VC Holdings, LLC | Delaware | |
Pacific Waikiki Assets, LLC | Delaware | |
Pacific Waikiki Holdings, LP. | California | |
SB Corporate Centre III-IV, LLC | Delaware | |
SB Corporate Centre, LLC | California | |
SB Towne Centre, LLC | California | |
SBCC Holdings, LLC | Delaware | |
SBTC Holdings, LLC | Delaware | |
Southbay Marketplace Holding, LLC | Delaware | |
Waikele Venture Holdings, LLC | Delaware | |
WBW Hotel Lessee, LLC | Delaware |
(1) | Registration Statement (Form S-3ASR No. 333-222876) of American Assets Trust, Inc., |
(2) | Registration Statement (Form S-3ASR No. 333-222882) of American Assets Trust, Inc. and American Assets Trust, LP, and |
(3) | Registration Statement (Form S-8 No. 333-171752) pertaining to the American Assets Trust, Inc. and American Assets Trust, L.P. 2011 Equity Incentive Award Plan; |
1. | I have reviewed this annual report on Form 10-K 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: | February 15, 2019 | /s/ ERNEST RADY |
Ernest Rady | ||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of American Assets Trust, L.P.; |
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: | February 15, 2019 | /s/ ERNEST RADY |
Ernest Rady | ||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K 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: | February 15, 2019 | /s/ ROBERT F. BARTON |
Robert F. Barton | ||
EVP and Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of American Assets Trust, L.P.; |
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: | February 15, 2019 | /s/ ROBERT F. BARTON |
Robert F. Barton | ||
EVP and Chief Financial Officer |
/s/ ERNEST RADY |
Ernest Rady |
Chairman, President and Chief Executive Officer |
/s/ ROBERT F. BARTON |
Robert F. Barton |
EVP and Chief Financial Officer |
/s/ ERNEST RADY |
Ernest Rady |
Chairman, President and Chief Executive Officer |
/s/ ROBERT F. BARTON |
Robert F. Barton |
EVP and Chief Financial Officer |
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Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
American Assets Trust, L.P. | ||
Limited Partners' Capital Account, Units Issued | 17,177,608 | 17,194,980 |
Limited Partners' Capital Account, Units Outstanding | 17,177,608 | 17,194,980 |
General Partners' Capital Account, Units Issued | 47,335,409 | 47,204,588 |
General Partners' Capital Account, Units Outstanding | 47,335,409 | 47,204,588 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares issued | 47,335,409 | 47,204,588 |
Common stock, shares outstanding | 47,335,409 | 47,204,588 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||
REVENUE: | |||||||||
Rental income | $ 309,537 | $ 298,803 | $ 279,498 | ||||||
Other property income | 21,330 | 16,180 | 15,590 | ||||||
Total revenue | 330,867 | 314,983 | 295,088 | ||||||
EXPENSES: | |||||||||
Rental expenses | 86,482 | 84,006 | 79,553 | ||||||
Real estate taxes | 34,973 | 32,671 | 28,378 | ||||||
General and administrative | 22,784 | 21,382 | 17,897 | ||||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||
Total operating expenses | 251,332 | 221,337 | 197,147 | ||||||
Operating income (loss) | 79,535 | 93,646 | 97,941 | ||||||
Interest expense | (52,248) | (53,848) | (51,936) | ||||||
Other income (expense), net | (85) | 334 | (368) | ||||||
Net income | 27,202 | 40,132 | 45,637 | ||||||
Net income attributable to restricted shares | (311) | (241) | (189) | ||||||
Net income attributable to unitholders in the Operating Partnership | (7,205) | (10,814) | (12,863) | ||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 19,686 | $ 29,077 | $ 32,585 | ||||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||
Basic net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 | ||||||
Weighted average shares of common stock outstanding-basic (in shares) | 46,950,812 | 46,715,520 | 45,332,471 | ||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||
Diluted net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 | ||||||
Weighted average shares of common stock outstanding-diluted (in shares) | 64,136,559 | 64,087,250 | 63,228,159 | ||||||
COMPREHENSIVE INCOME | |||||||||
Net income | $ 27,202 | $ 40,132 | $ 45,637 | ||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 120 | 386 | 17,048 | ||||||
Reclassification of amortization of forward starting swap included in interest expense | (1,279) | (1,114) | (231) | ||||||
Comprehensive income | 26,043 | 39,404 | 62,454 | ||||||
Comprehensive income attributable to noncontrolling interest | (6,877) | (10,433) | (17,624) | ||||||
Comprehensive income attributable to American Assets Trust, Inc. | 19,166 | 28,971 | 44,830 | ||||||
American Assets Trust, L.P. | |||||||||
REVENUE: | |||||||||
Rental income | 309,537 | 298,803 | 279,498 | ||||||
Other property income | 21,330 | 16,180 | 15,590 | ||||||
Total revenue | 330,867 | 314,983 | 295,088 | ||||||
EXPENSES: | |||||||||
Rental expenses | 86,482 | 84,006 | 79,553 | ||||||
Real estate taxes | 34,973 | 32,671 | 28,378 | ||||||
General and administrative | 22,784 | 21,382 | 17,897 | ||||||
Depreciation and amortization | 107,093 | 83,278 | 71,319 | ||||||
Total operating expenses | 251,332 | 221,337 | 197,147 | ||||||
Operating income (loss) | 79,535 | 93,646 | 97,941 | ||||||
Interest expense | (52,248) | (53,848) | (51,936) | ||||||
Other income (expense), net | (85) | 334 | (368) | ||||||
Net income | 27,202 | 40,132 | 45,637 | ||||||
Net income attributable to restricted shares | (311) | (241) | (189) | ||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 26,891 | $ 39,891 | $ 45,448 | ||||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||
Basic net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 | ||||||
Weighted average shares of common stock outstanding-basic (in shares) | 64,136,559 | 64,087,250 | 63,228,159 | ||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||
Diluted net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 | ||||||
Weighted average shares of common stock outstanding-diluted (in shares) | 64,136,559 | 64,087,250 | 63,228,159 | ||||||
DISTRIBUTIONS PER UNIT (in dollars per share) | $ 1.09 | $ 1.05 | $ 1.01 | ||||||
COMPREHENSIVE INCOME | |||||||||
Net income | $ 27,202 | $ 40,132 | $ 45,637 | ||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 120 | 386 | 17,048 | ||||||
Reclassification of amortization of forward starting swap included in interest expense | (1,279) | (1,114) | (231) | ||||||
Comprehensive income | 26,043 | 39,404 | 62,454 | ||||||
American Assets Trust, L.P. | Limited Partner | |||||||||
EXPENSES: | |||||||||
Net income | 7,205 | 10,814 | [1] | 12,863 | [1] | ||||
COMPREHENSIVE INCOME | |||||||||
Net income | 7,205 | 10,814 | [1] | 12,863 | [1] | ||||
Comprehensive income attributable to American Assets Trust, Inc. | (6,877) | (10,433) | (17,624) | ||||||
American Assets Trust, L.P. | General Partner | |||||||||
EXPENSES: | |||||||||
Net income | 19,997 | 29,318 | [2] | 32,774 | [2] | ||||
COMPREHENSIVE INCOME | |||||||||
Net income | 19,997 | 29,318 | [2] | 32,774 | [2] | ||||
Comprehensive income attributable to American Assets Trust, Inc. | 19,166 | 28,971 | 44,830 | ||||||
Swap | |||||||||
COMPREHENSIVE INCOME | |||||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 120 | (10,281) | 17,048 | ||||||
Swap | American Assets Trust, L.P. | |||||||||
COMPREHENSIVE INCOME | |||||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | $ 120 | (10,281) | $ 17,048 | ||||||
Forward Contracts | |||||||||
COMPREHENSIVE INCOME | |||||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | 10,667 | ||||||||
Forward Contracts | American Assets Trust, L.P. | |||||||||
COMPREHENSIVE INCOME | |||||||||
Other comprehensive gain - unrealized gain on swap derivative during the period | $ 10,667 | ||||||||
|
Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
American Assets Trust, L.P. |
Limited Partner
American Assets Trust, L.P.
|
General Partner
American Assets Trust, L.P.
|
Accumulated Other Comprehensive Income (Loss)
American Assets Trust, L.P.
|
Swap |
Swap
American Assets Trust, L.P.
|
Swap
Accumulated Other Comprehensive Income (Loss)
American Assets Trust, L.P.
|
Forward Contracts |
Forward Contracts
American Assets Trust, L.P.
|
Forward Contracts
Accumulated Other Comprehensive Income (Loss)
American Assets Trust, L.P.
|
Common Stock |
Common Stock
American Assets Trust, L.P.
|
Additional Paid-in Capital |
Accumulated dividends in excess of net income |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Swap
|
Accumulated Other Comprehensive Income (Loss)
Forward Contracts
|
Noncontrolling Interests - Unitholders in the Operating Partnership |
Noncontrolling Interests - Unitholders in the Operating Partnership
Swap
|
Noncontrolling Interests - Unitholders in the Operating Partnership
Forward Contracts
|
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2015 | 45,407,719 | |||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2015 | $ 828,927 | $ 454 | $ 863,432 | $ (64,066) | $ (258) | $ 29,365 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 45,637 | $ 45,637 | $ 12,863 | [1] | $ 32,774 | [2] | 32,774 | 12,863 | ||||||||||||||||||||
Common shares issued (in shares) | 219,480 | |||||||||||||||||||||||||||
Common shares issued | 9,640 | $ 2 | 9,638 | |||||||||||||||||||||||||
Issuance of restricted stock (in shares) | 148,110 | |||||||||||||||||||||||||||
Issuance of restricted stock | 0 | $ 1 | (1) | |||||||||||||||||||||||||
Forfeiture of restricted stock (in shares) | (33,707) | |||||||||||||||||||||||||||
Forfeiture of restricted stock | 0 | $ 0 | 0 | |||||||||||||||||||||||||
Conversion of operating partnership units (in shares) | 10,694 | 10,694 | ||||||||||||||||||||||||||
Conversion of operating partnership units | 0 | (79) | 79 | |||||||||||||||||||||||||
Dividends declared and paid | (64,077) | (46,004) | ||||||||||||||||||||||||||
Dividends declared and paid (noncontrolling interest) | 18,073 | |||||||||||||||||||||||||||
Stock-based compensation | 2,414 | 2,414 | ||||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (20,187) | [2] | (20,187) | |||||||||||||||||||||||||
Shares withheld for employee taxes | (807) | (807) | $ (807) | [2] | $ 0 | (807) | ||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 17,048 | 17,048 | $ 17,048 | $ 17,048 | $ 17,048 | $ 12,222 | $ 4,826 | |||||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | 231 | 231 | $ 231 | 166 | 65 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2016 | 45,732,109 | |||||||||||||||||||||||||||
Ending balance at Dec. 31, 2016 | 838,551 | $ 457 | 874,597 | (77,296) | 11,798 | 28,995 | ||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2015 | 17,899,516 | [1] | 45,407,719 | [2] | ||||||||||||||||||||||||
Beginning balance at Dec. 31, 2015 | 828,927 | $ 29,446 | [1] | $ 799,820 | [2] | (339) | ||||||||||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 45,637 | 45,637 | $ 12,863 | [1] | $ 32,774 | [2] | 32,774 | 12,863 | ||||||||||||||||||||
Contributions from American Assets Trust, Inc. (in shares) | [2] | 219,480 | ||||||||||||||||||||||||||
Contributions from American Assets Trust, Inc. | 9,640 | $ 9,640 | [2] | |||||||||||||||||||||||||
Conversion of operating partnership units (in shares) | (10,694) | [1] | 10,694 | [2] | ||||||||||||||||||||||||
Conversion of operating partnership units | $ 79 | [1] | $ (79) | [2] | ||||||||||||||||||||||||
Issuance of restricted units (in shares) | [2] | 148,110 | ||||||||||||||||||||||||||
Forfeiture of restricted units (in shares) | [2] | (33,707) | ||||||||||||||||||||||||||
Distributions | (64,077) | $ (18,073) | [1] | $ (46,004) | [2] | |||||||||||||||||||||||
Stock-based compensation | 2,414 | $ 2,414 | [2] | |||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (20,187) | [2] | (20,187) | |||||||||||||||||||||||||
Units withheld for employee taxes | (807) | (807) | $ (807) | [2] | $ 0 | (807) | ||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 17,048 | 17,048 | 17,048 | 17,048 | 17,048 | 12,222 | 4,826 | |||||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | 231 | 231 | 231 | 166 | 65 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2016 | 17,888,822 | [1] | 45,732,109 | [2] | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2016 | 838,551 | $ 24,315 | [1] | $ 797,758 | [2] | 16,478 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 40,132 | 40,132 | 10,814 | [1] | $ 29,318 | [2] | 29,318 | 10,814 | ||||||||||||||||||||
Common shares issued (in shares) | 700,000 | |||||||||||||||||||||||||||
Common shares issued | 29,873 | $ 7 | 29,866 | |||||||||||||||||||||||||
Issuance of restricted stock (in shares) | 150,098 | |||||||||||||||||||||||||||
Issuance of restricted stock | 0 | $ 2 | (2) | |||||||||||||||||||||||||
Forfeiture of restricted stock (in shares) | (48,624) | |||||||||||||||||||||||||||
Forfeiture of restricted stock | 0 | $ 0 | 0 | |||||||||||||||||||||||||
Conversion of operating partnership units (in shares) | 693,842 | 693,842 | ||||||||||||||||||||||||||
Conversion of operating partnership units | 0 | $ 7 | 10,752 | (10,759) | ||||||||||||||||||||||||
Dividends declared and paid | (67,537) | (49,302) | ||||||||||||||||||||||||||
Dividends declared and paid (noncontrolling interest) | 18,235 | |||||||||||||||||||||||||||
Stock-based compensation | 4,735 | 4,735 | ||||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (22,837) | [2] | (22,837) | |||||||||||||||||||||||||
Shares withheld for employee taxes | (882) | (882) | $ (882) | [2] | $ 0 | (882) | ||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 386 | 386 | (10,281) | (10,281) | (10,281) | $ 10,667 | $ 10,667 | $ 10,667 | (7,310) | $ 7,775 | (2,971) | $ 2,892 | ||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | 1,114 | 1,114 | 1,114 | 812 | 302 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 47,204,588 | |||||||||||||||||||||||||||
Ending balance at Dec. 31, 2017 | 844,144 | $ 473 | 919,066 | (97,280) | 11,451 | 10,434 | ||||||||||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 40,132 | 40,132 | $ 10,814 | [1] | $ 29,318 | [2] | 29,318 | 10,814 | ||||||||||||||||||||
Contributions from American Assets Trust, Inc. (in shares) | [2] | 700,000 | ||||||||||||||||||||||||||
Contributions from American Assets Trust, Inc. | 29,873 | $ 29,873 | [2] | |||||||||||||||||||||||||
Conversion of operating partnership units (in shares) | (693,842) | [1] | 693,842 | [2] | ||||||||||||||||||||||||
Conversion of operating partnership units | $ (10,759) | [1] | $ 10,759 | [2] | ||||||||||||||||||||||||
Issuance of restricted units (in shares) | [2] | 150,098 | ||||||||||||||||||||||||||
Forfeiture of restricted units (in shares) | [2] | (48,624) | ||||||||||||||||||||||||||
Distributions | (67,537) | $ (18,235) | [1] | $ (49,302) | [2] | |||||||||||||||||||||||
Stock-based compensation | 4,735 | $ 4,735 | [2] | |||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (22,837) | [2] | (22,837) | |||||||||||||||||||||||||
Units withheld for employee taxes | (882) | (882) | $ (882) | [2] | $ 0 | (882) | ||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 386 | 386 | (10,281) | (10,281) | (10,281) | $ 10,667 | $ 10,667 | $ 10,667 | (7,310) | $ 7,775 | (2,971) | $ 2,892 | ||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | 1,114 | 1,114 | 1,114 | 812 | 302 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 17,194,980 | [1] | 47,204,588 | [2] | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2017 | 844,144 | $ 6,135 | [1] | $ 822,259 | [2] | 15,750 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 27,202 | 27,202 | 7,205 | $ 19,997 | 19,997 | 7,205 | ||||||||||||||||||||||
Issuance of restricted stock (in shares) | 205,110 | |||||||||||||||||||||||||||
Issuance of restricted stock | 0 | $ 2 | (2) | |||||||||||||||||||||||||
Forfeiture of restricted stock (in shares) | (78,975) | |||||||||||||||||||||||||||
Forfeiture of restricted stock | 0 | $ (1) | 1 | |||||||||||||||||||||||||
Conversion of operating partnership units (in shares) | 17,372 | 17,372 | ||||||||||||||||||||||||||
Conversion of operating partnership units | 0 | $ 0 | (916) | 916 | ||||||||||||||||||||||||
Dividends declared and paid | (70,228) | (51,495) | ||||||||||||||||||||||||||
Dividends declared and paid (noncontrolling interest) | 18,733 | |||||||||||||||||||||||||||
Stock-based compensation | 3,039 | 3,039 | ||||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (12,686) | (12,686) | ||||||||||||||||||||||||||
Shares withheld for employee taxes | (527) | (527) | $ (527) | $ 0 | (527) | |||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 120 | 120 | 120 | 120 | 120 | 105 | 15 | |||||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | 1,279 | 1,279 | 1,279 | 936 | 343 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 47,335,409 | |||||||||||||||||||||||||||
Ending balance at Dec. 31, 2018 | 802,471 | $ 474 | 920,661 | (128,778) | 10,620 | (506) | ||||||||||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 27,202 | 27,202 | $ 7,205 | $ 19,997 | $ 19,997 | 7,205 | ||||||||||||||||||||||
Conversion of operating partnership units (in shares) | (17,372) | 17,372 | ||||||||||||||||||||||||||
Conversion of operating partnership units | $ 916 | $ (916) | ||||||||||||||||||||||||||
Issuance of restricted units (in shares) | 205,110 | |||||||||||||||||||||||||||
Forfeiture of restricted units (in shares) | (78,975) | |||||||||||||||||||||||||||
Distributions | (70,228) | $ (18,733) | $ (51,495) | |||||||||||||||||||||||||
Stock-based compensation | 3,039 | $ 3,039 | ||||||||||||||||||||||||||
Shares withheld for employee taxes (in shares) | (12,686) | (12,686) | ||||||||||||||||||||||||||
Units withheld for employee taxes | (527) | (527) | $ (527) | $ 0 | $ (527) | |||||||||||||||||||||||
Other comprehensive income (loss) unrealized gain (loss) on derivatives | 120 | 120 | $ 120 | $ 120 | $ 120 | $ 105 | $ 15 | |||||||||||||||||||||
Reclassification of amortization of forward starting swap included in interest expense | $ 1,279 | 1,279 | 1,279 | $ 936 | $ 343 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 17,177,608 | [1] | 47,335,409 | [2] | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2018 | $ 802,471 | $ (4,477) | [1] | $ 792,357 | [2] | $ 14,591 | ||||||||||||||||||||||
|
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
OPERATING ACTIVITIES | |||
Net income | $ 27,202 | $ 40,132 | $ 45,637 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred rent revenue and amortization of lease intangibles | (1,157) | (2,547) | (2,637) |
Depreciation and amortization | 107,093 | 83,278 | 71,319 |
Amortization of debt issuance costs and debt fair value adjustments | 1,530 | 3,058 | 4,473 |
Stock-based compensation expense | 3,039 | 4,735 | 2,414 |
Settlement of forward interest rate swap agreement | 0 | 10,667 | 0 |
Other noncash interest expense | (1,279) | (1,114) | (231) |
Other, net | 383 | 901 | (769) |
Changes in operating assets and liabilities | |||
Change in accounts receivable | (336) | (1,116) | (2,347) |
Change in other assets | (227) | (499) | (982) |
Change in accounts payable and accrued expenses | (3,297) | 7,632 | 1,371 |
Change in security deposits payable | 2,274 | 456 | 158 |
Change in other liabilities and deferred credits | 1,282 | 270 | 2,275 |
Net cash provided by operating activities | 136,507 | 145,853 | 120,681 |
INVESTING ACTIVITIES | |||
Acquisition of real estate, net | 0 | 278,141 | 0 |
Capital expenditures | (54,411) | (47,496) | (59,633) |
Leasing commissions | (9,936) | (4,927) | (3,572) |
Net cash used in investing activities | (64,347) | (330,564) | (63,205) |
FINANCING ACTIVITIES | |||
Repayment of secured notes payable | (97,124) | (167,139) | (136,974) |
Proceeds from unsecured term loan | 0 | 0 | 150,000 |
Proceeds from unsecured line of credit | 84,000 | 173,000 | 34,000 |
Repayment of unsecured line of credit | 20,000 | 193,000 | 44,000 |
Proceeds from issuance of unsecured notes payable | 0 | 450,000 | 0 |
Debt issuance costs | (2,727) | (2,401) | (2,055) |
Proceeds from issuance of common stock, net | (236) | ||
Proceeds from issuance of common stock, net | 29,873 | 9,640 | |
Dividends paid to common stock and unitholders | (70,228) | (67,537) | (64,077) |
Shares withheld for employee taxes | (527) | (882) | (807) |
Net cash provided by (used in) financing activities | (106,842) | 221,914 | (54,273) |
Net (decrease) increase in cash and cash equivalents | (34,682) | 37,203 | 3,203 |
Cash, cash equivalents and restricted cash, beginning of year | 91,954 | 54,751 | 51,548 |
Cash, cash equivalents and restricted cash, end of year | 57,272 | 91,954 | 54,751 |
Cash and cash equivalents | 47,956 | 82,610 | 44,801 |
Restricted cash | 9,316 | 9,344 | 9,950 |
American Assets Trust, L.P. | |||
OPERATING ACTIVITIES | |||
Net income | 27,202 | 40,132 | 45,637 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred rent revenue and amortization of lease intangibles | (1,157) | (2,547) | (2,637) |
Depreciation and amortization | 107,093 | 83,278 | 71,319 |
Amortization of debt issuance costs and debt fair value adjustments | 1,530 | 3,058 | 4,473 |
Stock-based compensation expense | 3,039 | 4,735 | 2,414 |
Settlement of forward interest rate swap agreement | 0 | 10,667 | 0 |
Other noncash interest expense | (1,279) | (1,114) | (231) |
Other, net | 383 | 901 | (769) |
Changes in operating assets and liabilities | |||
Change in accounts receivable | (336) | (1,116) | (2,347) |
Change in other assets | (227) | (499) | (982) |
Change in accounts payable and accrued expenses | (3,297) | 7,632 | 1,371 |
Change in security deposits payable | 2,274 | 456 | 158 |
Change in other liabilities and deferred credits | 1,282 | 270 | 2,275 |
Net cash provided by operating activities | 136,507 | 145,853 | 120,681 |
INVESTING ACTIVITIES | |||
Acquisition of real estate, net | 0 | 278,141 | 0 |
Capital expenditures | (54,411) | (47,496) | (59,633) |
Leasing commissions | (9,936) | (4,927) | (3,572) |
Net cash used in investing activities | (64,347) | (330,564) | (63,205) |
FINANCING ACTIVITIES | |||
Repayment of secured notes payable | (97,124) | (167,139) | (136,974) |
Proceeds from unsecured term loan | 0 | 0 | 150,000 |
Proceeds from unsecured line of credit | 84,000 | 173,000 | 34,000 |
Repayment of unsecured line of credit | 20,000 | 193,000 | 44,000 |
Proceeds from issuance of unsecured notes payable | 0 | 450,000 | 0 |
Debt issuance costs | (2,727) | (2,401) | (2,055) |
Proceeds from issuance of common stock, net | (236) | ||
Contributions from American Assets Trust, Inc. | 29,873 | 9,640 | |
Dividends paid to common stock and unitholders | (70,228) | (67,537) | (64,077) |
Shares withheld for employee taxes | (527) | (882) | (807) |
Net cash provided by (used in) financing activities | (106,842) | 221,914 | (54,273) |
Net (decrease) increase in cash and cash equivalents | (34,682) | 37,203 | 3,203 |
Cash, cash equivalents and restricted cash, beginning of year | 91,954 | 54,751 | 51,548 |
Cash, cash equivalents and restricted cash, end of year | 57,272 | 91,954 | 54,751 |
Cash and cash equivalents | 47,956 | 82,610 | 44,801 |
Restricted cash | $ 9,316 | $ 9,344 | $ 9,950 |
Summary of Significant Accounting Policies (Notes) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Organization American Assets Trust, Inc. (which may be referred to in these financial statements as the “company,” “we,” “us,” or “our”) is a Maryland corporation formed on July 16, 2010 that did not have any operating activity until the consummation of our initial public offering (the “Offering”) and the related acquisition on January 19, 2011 of certain assets of a combination of entities whose assets included entities owned and/or controlled by Ernest S. Rady and his affiliates, including the Rady Trust, which in turn owned (1) controlling interests in entities owning 17 properties and the property management business of American Assets, Inc. and (2) noncontrolling interests in entities owning four properties. The company is the sole general partner of American Assets Trust, L.P., a Maryland limited partnership formed on July 16, 2010 (the “Operating Partnership”). The company's operations are carried on through our Operating Partnership and its subsidiaries, including our taxable REIT subsidiary. Since the formation of our Operating Partnership, the company has controlled our Operating Partnership as its general partner and has consolidated its assets, liabilities and results of operations. We are a vertically integrated and self-administered REIT with 189 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. Any reference to the number of properties or units, square footage or acres, employees; or references to beneficial ownership interests, are unaudited and outside the scope of our independent registered public accounting firm's audit of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. As of December 31, 2018, we owned or had a controlling interest in 27 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of December 31, 2018, we owned land at three of our properties that we classify as held for development and construction in progress. A summary of the properties owned by us is as follows:
Basis of Presentation Our consolidated financial statements include the accounts of the company, our Operating Partnership and our subsidiaries. The equity interests of other investors in our Operating Partnership are reflected as noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates. Consolidated Statements of Cash Flows-Supplemental Disclosures The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):
Revenue Recognition and Accounts Receivable Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks. When we determine that we are the owner of tenant improvements and the tenant has reimbursed us for a portion or all of the tenant improvement costs, we consider the amount paid to be additional rent, which is recognized on a straight-line basis over the term of the related lease. For first generation tenants, in instances in which we fund tenant improvements and the improvements are deemed to be owned by us, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When we determine that the tenant is the owner of tenant improvements, tenant allowances are recorded as lease incentives and we commence revenue recognition and lease incentive amortization when possession or control of the space is turned over to the tenant for tenant work to begin. Percentage rents, which represent additional rents based upon the level of sales achieved by certain tenants, are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved and the percentage rents are collectible. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. Other property income includes parking income, general excise tax billed to tenants and fees charged to tenants at our multifamily properties. Other property income is recognized when we satisfy performance obligations as evidenced by the transfer of control of our services to customers. We measure other property income based on the amount of consideration we expect to be entitled to in exchange for the services provided. We recognize general excise tax gross, with the amounts billed to tenants and customers recorded in other property income and the related taxes paid as rental expense. The general excise tax included in other income was $3.6 million, $3.7 million and $3.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees for which the tenant has relinquished control of the space are generally recognized on the later of the termination date or the satisfaction of all conditions precedent to the lease termination, including, without limitation, payment of all lease termination fees. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement. We recognize revenue on the hotel portion of our mixed-use property from the rental of hotel rooms and guest services when we satisfy performance obligations as evidenced by the transfer of control when the rooms are occupied and services have been provided. Food and beverage sales are recognized when the customer has been served or at the time the transaction occurs. Revenue from room rental is included in rental revenue on the statement of income. Revenue from other sales and services provided is included in other property income on the statement of income. We make estimates of the collectability of our accounts receivable related to minimum rents, straight-line rents, expense reimbursements and other revenue. Accounts receivable and deferred rent receivable are carried net of this allowance for doubtful accounts. We generally do not require collateral or other security from our tenants, other than letters of credit or security deposits. Our determination as to the collectability of accounts receivable and correspondingly, the adequacy of this allowance, is based primarily upon evaluations of individual receivables, current economic conditions, historical experience and other relevant factors. The allowance for doubtful accounts is increased or decreased through bad debt expense. In some cases, primarily relating to straight-line rents, the collection of these amounts extends beyond one year. Our experience relative to unbilled straight-line rents is that a portion of the amounts otherwise recognizable as revenue is never billed to or collected from tenants due to early lease terminations, lease modifications, bankruptcies and other factors. Accordingly, the extended collection period for straight-line rents along with our evaluation of tenant credit risk may result in the nonrecognition of a portion of straight-line rental income until the collection of such income is reasonably assured. If our evaluation of tenant credit risk changes indicating more straight-line revenue is reasonably collectible than previously estimated and realized, the additional straight-line rental income is recognized as revenue. If our evaluation of tenant credit risk changes indicating a portion of realized straight-line rental income is no longer collectible, a reserve and bad debt expense is recorded. At December 31, 2018 and December 31, 2017, our allowance for doubtful accounts was $0.6 million and $0.4 million, respectively. Our allowance for deferred rent receivables at December 31, 2018 and December 31, 2017 was $0.3 million and $1.4 million, respectively. Total bad debt expense was $0.8 million, $0.8 million and $0.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. We recognize gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized when we satisfy performance obligations as evidenced when (1) the collectability of the sales price is reasonably assured, (2) we are not obligated to perform significant activities after the sale, (3) the initial investment from the buyer is sufficient and (4) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred until the requirements for gain recognition have been met. Real Estate Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 30 years to a maximum of 40 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 3 years to 15 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to the contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. For the years ended December 31, 2018, 2017 and 2016, real estate depreciation expense was $99.6 million, $70.2 million and $62.5 million, respectively. Acquisitions of properties are accounted for in accordance with the authoritative accounting guidance on acquisitions and business combinations. Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and appraised values. When we acquire operating real estate properties, the purchase price is allocated to land and buildings, intangibles such as in-place leases, and to current assets and liabilities acquired, if any. Such valuations include a consideration of the noncancelable terms of the respective leases as well as any applicable renewal periods. The fair values associated with below market renewal options are determined based on a review of several qualitative and quantitative factors on a lease-by-lease basis at acquisition to determine whether it is probable that the tenant would exercise its option to renew the lease agreement. These factors include: (1) the type of tenant in relation to the property it occupies, (2) the quality of the tenant, including the tenant's long term business prospects and (3) whether the fixed rate renewal option was sufficiently lower than the fair rental of the property at the date the option becomes exercisable such that it would appear to be reasonably assured that the tenant would exercise the option to renew. The value allocated to in-place leases is amortized over the related lease term and reflected as depreciation and amortization in the statement of income. The value of above and below market leases associated with the original noncancelable lease terms are amortized to rental income over the terms of the respective noncancelable lease periods and are reflected as either an increase (for below market leases) or a decrease (for above market leases) to rental income in the statement of income. The value of the leases associated with below market lease renewal options that are likely to be exercised are amortized to rental income over the respective renewal periods. If a tenant vacates its space prior to contractual termination of its lease or the lease is not renewed, the unamortized balance of any in-place lease value is written off to rental income and amortization expense. Transaction costs related to the acquisition of a business, such as broker fees, transfer taxes, legal, accounting, valuation, and other professional and consulting fees, are expensed as incurred and included in “general and administrative expenses” in our consolidated statements of comprehensive income. For asset acquisitions not meeting the definition of a business, transaction costs are capitalized as part of the acquisition cost. Capitalized Costs We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance and construction costs and salaries and related costs of personnel directly involved. Additionally, we capitalize interest costs related to development and significant redevelopment activities. Capitalization of these costs begins when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use, at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine that the completion of development or redevelopment is no longer probable, we expense all capitalized costs which are not recoverable. Impairment of Long Lived Assets We review for impairment on a property by property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. There were no impairment charges during the years ended December 31, 2018, 2017 and 2016. Financial Instruments The estimated fair values of financial instruments are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair values. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. Derivative Instruments At times, we may use derivative instruments to manage exposure to variable interest rate risk. We may enter into interest rate swaps to manage our exposure to variable interest rate risk. If and when we enter into derivative instruments, we ensure that such instruments qualify as cash flow hedges and would not enter into derivative instruments for speculative purposes. Any interest rate swaps associated with our cash flow hedges are recorded at fair value on a recurring basis. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into interest expense as interest is incurred on the related variable rate debt. Our cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and LIBOR rate. In addition, we evaluate the default risk of the counterparty by monitoring the credit worthiness of the counterparty. When ineffectiveness exists, the ineffective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recognized in earnings in the period affected. See the discussion under Note 8 for certain quantitative details related to interest rate swaps and for a discussion on how we value derivative financial instruments. Cash and Cash Equivalents We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity of less than 3 months. Cash balances in individual banks may exceed the federally insured limit of $250,000 by the Federal Deposit Insurance Corporation (the "FDIC"). No losses have been experienced related to such accounts. At December 31, 2018 and December 31, 2017, we had $42.4 million and $45.7 million, respectively, in excess of the FDIC insured limit. At December 31, 2018 and December 31, 2017, we had $0.2 million and $29.4 million, respectively, in money market funds that are not FDIC insured. Restricted Cash Restricted cash consists of amounts held by lenders to provide for future real estate tax expenditures, insurance expenditures and reserves for capital improvements. At December 31, 2018 and 2017, we had $9.3 million and $9.3 million, respectively, in restricted cash. Other Assets Other assets consist primarily of lease costs, lease incentives, acquired in-place leases and acquired above market leases. Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place and include third party commissions related to obtaining a lease. Capitalized lease costs are amortized over the life of the related lease and included in depreciation and amortization expense on the statement of income. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any lease costs are written off. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow. Therefore, we classify cash outflows for lease costs as an investing activity in our consolidated statements of cash flows. Variable Interest Entities Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as variable interest entities (“VIEs”). VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is the party that has a controlling interest in the VIE. Identifying the party with the controlling interest requires a focus on which entity has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (1) the obligation to absorb the expected losses of the VIE or (2) the right to receive the benefits from the VIE. At December 31, 2018 and December 31, 2017 we had no investments in real estate joint ventures, and accordingly we had no VIEs which needed to be consolidated. Stock-Based Compensation We grant stock-based compensation awards to our employees and directors typically in the form of restricted shares of common stock, options to purchase common stock and/or shares of common stock. We measure stock-based compensation expense based on the fair value of the award on the grant date and recognize the expense ratably over the vesting period. Modifications of stock-based compensation awards are treated as an exchange of the original award for a new award with the resulting total compensation cost equal to the grant-date fair value of the original award plus the incremental value of the modification to the award. The calculation of the incremental value is based on the excess of the fair value of the new (modified) award based on current circumstances over the fair value of the original option measured immediately before its terms are modified. For the year ended December 31, 2017, we incurred incremental compensation cost of approximately $2.2 million related to the discretionary vesting of previously granted restricted stock awards that did not meet the original vesting criteria. For the years ended December 31, 2018 and 2016, there were no modifications of stock-based compensation awards. Deferred Compensation Our Operating Partnership has adopted the American Assets Trust Executive Deferral Plan V (“EDP V”) and the American Assets Trust Executive Deferral Plan VI (“EDP VI”). These plans were adopted by our Operating Partnership as successor plans to those deferred compensation plans maintained by American Assets Inc. ("AAI") in which certain employees of AAI, who were transferred to us in connection with the Offering (the “Transferred Participants”), participated prior to the Offering. EDP V and EDP VI contain substantially the same terms and conditions as these predecessor plans. AAI transferred to our Operating Partnership the Transferred Participants' account balances under the predecessor plans. These transferred account balances represent amounts deferred by the Transferred Participants prior to the Offering while they were employed by AAI. At the time eligible participants defer compensation, we record compensation cost and a corresponding deferred compensation plan liability, which is included in other liabilities and deferred credits on our consolidated balance sheets. This liability is adjusted to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each participant, and the impact of adjusting the liability to fair value is recorded as an increase or decrease to compensation cost. Income Taxes We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with the taxable year ending December 31, 2011. To maintain our qualification as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we maintain our qualification for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to maintain our qualification as a REIT in any taxable year, and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to regular U.S. federal income tax. We are subject to certain state and local income taxes. We, together with one of our subsidiaries, have elected to treat such subsidiary as a taxable REIT subsidiary (a “TRS”) for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes. Segment Information Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in four reportable 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. Recent Accounting Pronouncements In August 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The pronouncement was issued to simplify the on-going assessment of hedge effectiveness and increase transparency related to hedge accounting. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The company early adopted the provisions of ASU No. 2017-12 effective October 1, 2017 using the modified retrospective approach. The company determined there is no impact to the company’s historical results as a result of adoption of the new standard and therefore no adjustment to retained earnings from application of the ASU. In January 2017, the FASB issued ASU 2017-1, Business Combinations: Clarifying the Definition of a Business. The pronouncement changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The pronouncement requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The company early adopted this ASU effective January 1, 2017. For the period from January 1, 2017 through December 31, 2017, the company acquired three properties for which we concluded that substantially all of the fair value of the assets acquired were concentrated in a single identifiable asset and that the assets therefore did not meet the definition of a business under ASU 2017-01. Acquisition transaction costs associated with these property acquisitions were approximately $0.2 million and were capitalized to real estate investments. In November 2016, the FASB issued ASU 2016-18, Restricted Cash. This pronouncement requires companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement also requires a disclosure of a reconciliation between the statement of financial position and the statement of cash flows when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Entities with material restricted cash and restricted cash equivalents balances will be required to disclose the nature of the restrictions. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. The company adopted this ASU effective December 31, 2017. The adoption of this ASU impacted the presentation of cash flows with inclusion of restricted cash flows for each of the presented periods. As of December 31, 2018 and 2017, we had $9.3 million and $9.3 million of restricted cash, respectively, on our consolidated balance sheets. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The company adopted this ASU effective January 1, 2017 and the adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842), which provides the principles for the recognition, measurement, presentation and disclosure of leases. This ASU significantly changes the accounting for leases by requiring lessees to recognize assets and liabilities for leases greater than 12 months on their balance sheet. The lessor model stays substantially the same; however, there were modifications to conform lessor accounting with the lessee model, eliminate real estate specific guidance, further define certain lease and non-lease components, and change the definition of initial direct costs of leases requiring significantly more leasing related costs to be expensed upfront. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. We will adopt ASU No. 2016-2 in the first quarter of 2019 using the modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows lessors to elect a practical expedient by class of underlying assets to not separate non-lease components from the lease component if certain conditions are met. The lessor’s practical expedient election would be limited to circumstances in which the non-lease components otherwise would be accounted for under the new revenue guidance and both (i) the timing and pattern of transfer are the same for the nonlease component and the related lease component and (ii) the lease component would be classified as an operating lease. The company will elect the practical expedient which would allow the company the ability to combine the lease and non-lease components if the underlying asset meets the criteria above. ASU 2018-11 also includes an optional transition method in addition to the existing requirements for transition to the new standard by recognizing a cumulative effect adjustment to the opening balance sheet of retained earnings in the period of adoption. Consequently, a company’s reporting for the comparative periods presented in the financial statements would continue to be in accordance with current GAAP (Topic 840). The company will elect this practical expedient as well. While we continue to evaluate the impact this pronouncement will have on our consolidated financial statements, we expect that the real estate leases designated as operating leases in Note 12 - Commitments and Contingencies, will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets upon adoption. As of December 31, 2018, the remaining contractual payments under lease agreements for which the company is the lessee aggregated approximately $8.9 million. The company estimates the adoption of this standard will result in a right-of-use asset and lease liability of between $5.0 million and $10.0 million. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards. The pronouncement is effective for reporting periods beginning after December 15, 2017. We adopted the provisions of the ASU effective January 1, 2018 using the modified retrospective approach. As discussed above, lease are specifically excluded from this and will be governed by the applicable lease codification. We evaluated the revenue recognition for all contracts within this scope under existing accounting standards and under the new revenue recognition ASU and confirmed that there were no differences in the amounts recognized or the pattern of recognition. This evaluation included revenues from the hotel portion of our mixed-use property, parking income and excise taxes charged to customers. Therefore, the adoption of this ASU did not result in an adjustment to the company’s retained earnings on January 1, 2018. |
Real Estate (Notes) |
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Real Estate [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | REAL ESTATE A summary of our real estate investments is as follows (in thousands):
(1) Land related to held for development and construction in progress is included in the Held for Development and Construction in Progress classifications on the consolidated balance sheets. 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. On July 6, 2017, we acquired Gateway Marketplace, an approximately 128,000 square feet dual-grocery anchored shopping center located in Chula Vista, California. The purchase price was approximately $42 million, excluding closing costs of approximately $0.1 million. The properties were acquired with cash on hand and borrowings under our Amended and Restated Credit Agreement (as defined herein). The financial information set forth below summarizes the company’s purchase price allocations for the Pacific Ridge Apartments and Gateway Marketplace during the year ended December 31, 2017 (in thousands):
The following table summarizes the operating results for the Pacific Ridge Apartments and Gateway Marketplace included in the company’s historical consolidated statement of operations for the period of acquisition through December 31, 2017 (in thousands):
Pro Forma Financial Information The unaudited financial information in the table below summarizes the combined results of operations of the Pacific Ridge Apartments and Gateway Marketplace with the company’s historical consolidated statements of operations as though the entities were acquired on January 1, 2016. The pro forma financial information includes adjustments to depreciation expense for acquired property and equipment and adjustments to amortization charges for acquired intangible assets and liabilities. 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).
Dispositions None. |
Acquired In-Place Leases and Above/Below Market Leases (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES | ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES The following summarizes our acquired lease intangibles, which are included in other assets and other liabilities and deferred credits (in thousands):
The value allocated to in-place leases is amortized over the related lease term as depreciation and amortization expense in the statement of income. Above and below market leases are amortized over the related lease term as additional rental income for below market leases or a reduction of rental income for above market leases in the statement of income. Rental income (loss) includes net amortization from acquired above and below market leases of $3.6 million, $3.3 million and $3.5 million in 2018, 2017 and 2016, respectively. The remaining weighted-average amortization period as of December 31, 2018, is 7.8 years, 1.2 years and 5.9 years for in-place leases, above market leases and below market leases, respectively. Below market leases include $14.6 million related to below market renewal options, and the weighted-average period prior to the commencement of the renewal options is 8.5 years. Increases (decreases) in net income as a result of amortization of our in-place leases, above market leases and below market leases are as follows (in thousands):
As of December 31, 2018, the amortization for acquired leases during the next five years and thereafter, assuming no early lease terminations, is as follows (in thousands):
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Fair Value of Financial Instruments (Notes) |
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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:
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. Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. Financial assets and liabilities whose fair values we measure on a recurring basis using Level 2 inputs consist of our deferred compensation liability and interest rate swap liability. We measure the fair values of these liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques provided by third parties using proprietary valuation models and analytical tools as of December 31, 2018 and 2017. These valuation models and analytical tools use market pricing or similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. 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 and unsecured notes payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable, using rates ranging from 4.3% to 4.8%. 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. The carrying values of our line of credit and term loan set forth below are deemed to be at fair value since the outstanding debt is directly tied to monthly LIBOR contracts. A summary of the carrying amount and fair value of our financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):
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Other Assets (Notes) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | OTHER ASSETS Other assets consist of the following (in thousands):
Lease incentives are amortized over the term of the related lease and included as a reduction of rental income in the statement of income. |
Other Liabilities and Deferred Credits (Notes) |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES AND DEFERRED CREDITS | OTHER LIABILITIES AND DEFERRED CREDITS Other liabilities and deferred credits consist of the following (in thousands):
Straight-line rent liability relates to leases which have rental payments that decrease over time or one-time upfront payments for which the rental revenue is deferred and recognized on a straight-line basis. |
Debt (Notes) |
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DEBT | DEBT Debt of American Assets Trust, Inc. American Assets Trust, Inc. does not hold any indebtedness. All debt is held directly or indirectly by the Operating Partnership; however, American Assets Trust, Inc. has guaranteed the Operating Partnership's second amended and restated credit facility, term loan and carve-out guarantees on property-level debt. Debt of American Assets Trust, L.P. Secured notes payable The following is a summary of the Operating Partnership's total secured notes payable outstanding as of December 31, 2018 and December 31, 2017 (in thousands):
Certain loans require us to comply with various financial covenants, including the maintenance of minimum debt coverage ratios. As of December 31, 2018, we were in compliance with all loan covenants. Unsecured notes payable The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of December 31, 2018 and December 31, 2017 (in thousands):
On March 1, 2016, the Operating Partnership entered into a Term Loan Agreement with each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent (as amended, the “Term Loan Agreement”). The Term Loan Agreement provides for a new, seven-year unsecured term loan to the Operating Partnership of $100 million that matures on March 1, 2023 (“Term Loan B”). Concurrent with the closing of the Term Loan Agreement, the Operating Partnership drew down the entirety of Term Loan B. On May 2, 2016, the Operating Partnership entered into a Joinder and First Amendment to the Term Loan Agreement to provide for a new lender to fund an incremental term loan. The Joinder and First Amendment provides for a new, seven-year unsecured term loan to the Operating Partnership of $50 million that matures on March 1, 2023 ("Term Loan C"). Term Loan C has the same borrowing terms as the Term Loan Agreement noted below. Concurrent with the closing of the Joinder and First Amendment, the Operating Partnership drew down the entirety of Term Loan C. Borrowings under the Term Loan Agreement with respect to Term Loan B and Term Loan C bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from 1.70% to 2.35% based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0%, (b) the prime rate, (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on our consolidated leverage ratio. The company entered into interest rate swap agreements intended to fix the interest rates associated with Term Loan B and Term Loan C at approximately 3.15% and 3.14%, respectively, through the maturity dates, subject to adjustments based on our consolidated leverage ratio. The Term Loan Agreement contains a number of customary financial covenants, including, without limitation, tangible net worth thresholds, secured and unsecured leverage ratios and fixed charge coverage ratios. Subject to the terms of the Term Loan Agreement, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal or interest under Term Loan B or Term Loan C, and (ii) a default in the payment of certain other indebtedness of the Operating Partnership, the company or their subsidiaries, the principal and accrued and unpaid interest and prepayment penalties on the outstanding Term Loan B or Term Loan C will become due and payable at the option of the lenders. On January 9, 2018, we entered into the Third Amendment (“Third Amendment”) to the Term Loan Agreement, which maintains the seven-year $150 million unsecured term loan (Term Loan B and Term Loan C) to the Operating Partnership that matures on March 1, 2023 (the “$150mm Term Loan”). Effective as of March 1, 2018, borrowings under the Term Loan Agreement with respect to the $150mm Term Loan bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on the Operating Partnership’s consolidated leverage ratio, or (2) a base rate equal to the highest of (a) 0%, (b) the prime rate, (c) the federal funds rate plus 50 bps or (d) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.70% to 1.35% based on the Operating Partnership’s consolidated leverage ratio. The foregoing rates are intended to be more favorable than previously contained in the Term Loan Agreement. Additionally, the Operating Partnership may elect for borrowings to bear interest based on a ratings-based pricing grid as per the Operating Partnership’s then-applicable investment grade debt ratings under the terms set forth in the Term Loan Agreement. On October 31, 2014, the Operating Partnership entered into a note purchase agreement (the "Note Purchase Agreement") with a group of institutional purchasers that provided for the private placement of an aggregate of $350 million of senior guaranteed notes, of which (i) $150 million are designated as 4.04% Senior Guaranteed Notes, Series A, due October 31, 2021 (the “Series A Notes”), (ii) $100 million are designated as 4.45% Senior Guaranteed Notes, Series B, due February 2, 2025 (the “Series B Notes”) and (iii) $100 million are designated as 4.50% Senior Guaranteed Notes, Series C, due April 1, 2025 (the “Series C Notes”). The Series A Notes were issued on October 31, 2014, the Series B Notes were issued on February 2, 2015 and the Series C Notes were issued on April 2, 2015. The Series A Notes, the Series B Notes and the Series C Notes will pay interest quarterly on the last day of January, April, July and October until their respective maturities. On March 1, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027 (the "Series D Notes"). The Series D Notes were issued on March 1, 2017 and will pay interest quarterly on the last day of January, April, July and October until their respective maturities. On May 23, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029 (the "Series E Notes"). The Series E Notes were issued on May 23, 2017 and will pay interest semi-annually on the 23rd of May and November until their respective maturities. On July 19, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024 (the "Series F Notes," and collectively with the Series A Notes, Series B Notes, Series C Notes, Series D Notes and Series E Notes are referred to herein as, the “Notes".). The Series F Notes were issued on July 19, 2017 and will pay interest semi-annually on the 31st of January and July until their respective maturities. The Operating Partnership may prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 5% of the aggregate principal amount of any series of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a Make-Whole Amount (as defined in the Note Purchase Agreement). The Note Purchase Agreement contains a number of customary financial covenants, including, without limitation, tangible net worth thresholds, secured and unsecured leverage ratios and fixed charge coverage ratios. Subject to the terms of the Note Purchase Agreement and the Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, Make-Whole Amount or interest under the Notes, and (ii) a default in the payment of certain other indebtedness by us or our subsidiaries, the principal, accrued and unpaid interest, and the Make-Whole Amount on the outstanding Notes will become due and payable at the option of the purchasers. The Operating Partnership's obligations under the Notes are fully and unconditionally guaranteed by the Operating Partnership and certain of the Operating Partnership's subsidiaries. Certain loans require the Operating Partnership to comply with various financial covenants, including the maintenance of minimum debt coverage ratios. As of December 31, 2018, the Operating Partnership was in compliance with all loan covenants. Scheduled principal payments on secured and unsecured notes payable as of December 31, 2018 are as follows (in thousands):
Credit Facility On January 9, 2014, the company and the Operating Partnership entered into an amended and restated credit agreement (the "Prior Credit Facility"), or the amended and restated credit facility, which amended and restated the then in-place credit facility. The amended and restated credit facility provides for aggregate, unsecured borrowing of $350 million, consisting of a revolving line of credit of $250 million (the "Prior Revolver Loan") and a term loan of $100 million (the "Term Loan A"). The Prior Credit Facility had an accordion feature that allowed the Operating Partnership to increase the availability thereunder up to an additional $250 million, subject to meeting specified requirements and obtaining additional commitments from lenders. On October 16, 2014, we entered into a first amendment to the Prior Credit Agreement that amended provisions of the Prior Credit Agreement to, among other things, (1) describe the treatment of our pari passu obligations under the amended and restated credit agreement and (2) remove the material acquisition provisions previously set forth in the Prior Credit Agreement. Borrowings under the Prior Credit Facility initially bore interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from (a) 1.35%-1.95% (with respect to the Prior Revolver Loan) and (b) 1.30% to 1.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) the Eurodollar rate plus 100 bps, plus a spread which ranges from (i) 0.35%-0.95% (with respect to the Prior Revolver Loan) and (ii) 0.30% to 0.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio. The foregoing rates were more favorable than previously contained in the credit agreement in place as of December 31, 2013. If American Assets Trust, Inc. obtained an investment grade debt rating, under the terms set forth in the Prior Credit Facility, the spreads would further improve. The Prior Revolver Loan initially matured on January 9, 2018, subject to the Operating Partnership's option to extend the Prior Revolver Loan up to two times, with each such extension for a six-month period. The Term Loan initially matured on January 9, 2016, subject to our option to extend the Term Loan A up to three times, with each such extension for a 12-month period. The foregoing extension options are exercisable by us subject to the satisfaction of certain conditions. Effective as of January 8, 2018, the Operating Partnership exercised the third of three options to extend the maturity date of Term Loan A to January 9, 2019. Concurrent with the closing of the Prior Credit Facility, the Operating Partnership drew down on the entirety of the $100 million Term Loan, which remains outstanding and is included in unsecured notes payable as discussed above. Additionally, the Prior Credit Facility included a number of financial covenants, including:
The Prior Credit Facility provided that American Assets Trust, Inc.'s annual distributions may not exceed the greater of (1) 95% of our funds from operations (“FFO”) or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax. If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT. American Assets Trust, Inc. and certain of its subsidiaries guaranteed the obligations under the Prior Credit Agreement, and certain of its subsidiaries pledged specified equity interests in our subsidiaries as collateral for our obligations under the Prior Credit Facility. On January 9, 2018, we entered into a second amended and restated credit agreement (the "Second Amended and Restated Credit Facility"), which amended and restated the Prior Credit Agreement. The Second Amended and Restated Credit Facility provides for aggregate, unsecured borrowing of $450 million, consisting of a revolving line of credit of $350 million (the "Revolver Loan") and a term loan of $100 million (the "Term Loan A"). The Second Amended and Restated Credit Facility has an accordion feature that may allow us to increase the availability thereunder up to an additional $350 million, subject to meeting specified requirements and obtaining additional commitments from lenders. At December 31, 2018, there was $64.0 million outstanding balance under the Revolver Loan. Borrowings under the Second Amended and Restated Credit Facility initially bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from (a) 1.05% to 1.50% (with respect to the Revolver Loan) and (b) 1.30% to 1.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) LIBOR plus 100 bps, plus a spread which ranges from (i) 0.10% to 0.50% (with respect to the Revolver Loan) and (ii) 0.30% to 0.90% (with respect to Term Loan A), in each case based on our consolidated leverage ratio. The foregoing rates are more favorable than previously contained in the Prior Credit Facility in place as of December 31, 2017. For the year-ended December 31, 2018, the weighted average interest rate on the Revolver Loan was 3.20%. The Revolver Loan initially matures on January 9, 2022, subject to our option to extend the Revolver Loan up to two times, with each such extension for a six-month period. The Term Loan A matures on January 9, 2019. The foregoing extension options are exercisable by us subject to the satisfaction of certain conditions. On January 9, 2019, we entered into the first amendment (“First Amendment”) to the Second Amended and Restated Credit Facility, which extended the maturity date of Term Loan A to January 9, 2021, subject to three, one-year extension options. Additionally, in connection with the First Amendment, borrowings under the Second Amended and Restated Credit Facility with respect to Term Loan bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on our consolidated total leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.20% to 0.70% based on our consolidated total leverage ratio. The foregoing rates are more favorable than previously contained in the Second Amended and Restated Credit Facility (prior to entry into the First Amendment) with respect to Term Loan A. Additionally, the Second Amended and Restated Credit Facility includes a number of customary financial covenants, including:
The Second Amended and Restated Credit Facility provides that our annual distributions may not exceed the greater of (1) 95% of our FFO or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax. If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT. As of December 31, 2018, the Operating Partnership was in compliance with all then in-place Second Amended and Restated Credit Facility covenants. |
Derivative and Hedging (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE AND HEDGING ACTIVITIES | DERIVATIVE AND HEDGING ACTIVITIES Our objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movement. To accomplish these objectives, we use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Concurrent with the closing of our amended and restated credit facility, we entered into an interest rate swap agreement that is intended to fix the interest rate associated with our term loan of $100 million at approximately 3.08% through its maturity date and extension options, subject to adjustments based on our consolidated leverage ratio. On January 29, 2016, we entered into a forward-starting interest rate swap contract with U.S. Bank National Association to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective $100 million seven-year term loan. The forward-starting seven-year swap contract had a notional amount of $100 million, a termination date of March 1, 2023, a fixed pay rate of 1.4485%, and a receive rate equal to the one-month LIBOR, with fixed rate payments due monthly commencing April 1, 2016, floating payments due monthly commencing April 1, 2016, and floating reset dates two days prior to the first day of each calculation period. The forward-starting seven-year swap contract accrual period, March 1, 2016 to March 1, 2023, was designed to match the expected tenor of our then prospective $100 million seven-year term loan, which successfully closed on March 1, 2016. On March 23, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective incremental $50 million seven-year term loan. The forward-starting seven-year swap contract had a notional amount of $50 million, a termination date of March 1, 2023, a fixed pay rate of 1.4410%, and a receive rate equal to the one-month LIBOR, with fixed rate payments due monthly commencing June 1, 2016, floating payments due monthly commencing June 1, 2016, and floating reset dates two days prior to the first day of each calculation period. The forward-starting seven-year swap contract accrual period, May 2, 2016 to March 1, 2023, was designed to match the expected tenor of our then prospective incremental $50 million seven-year term loan, which successfully closed on May 2, 2016. On March 29, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise) (anticipated to close on or before March 31, 2017). The forward-starting ten-year swap contract had a notional amount of $150 million, a termination date of March 31, 2027, a fixed pay rate of 1.8800%, and a receive rate equal to the three-month LIBOR, with fixed rate payments due semi-annually commencing September 29, 2017, floating payments due semi-annually commencing September 29, 2017, and floating reset dates the first day of each quarterly period. The forward-starting ten-year swap contract accrual period, March 31, 2017 to March 31, 2027, was designed to match the expected tenor of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise). On April 7, 2016, we entered into a forward-starting interest rate swap contract with Wells Fargo Bank, National Association to reduce the interest rate variability exposure of the projected interest cash flows of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise) (anticipated to close on or before March 31, 2017). The forward-starting ten-year swap contract had a notional amount of $100 million, a termination date of March 31, 2027, a fixed pay rate of 1.7480%, and a receive rate equal to the three-month LIBOR, with fixed rate payments due semi-annually commencing September 29, 2017, floating payments due semi-annually commencing September 29, 2017, and floating reset dates the first day of each quarterly period. The forward-starting ten-year swap contract accrual period, March 31, 2017 to March 31, 2027, was designed to match the expected tenor of our prospective new ten-year debt offering (private placement, investment grade bonds, term loan or otherwise). On January 18, 2017, we settled the March 29, 2016 $150 million and April 7, 2016 $100 million ten-year forward-starting interest rate swaps resulting in an aggregate gain of approximately $10.4 million. This gain is included in accumulated other comprehensive income and will be amortized to interest expense over the life of the Series D Notes. The forward-starting interest rate swap contracts have been deemed to be highly effective cash flow hedges and we elected to designate all the forward-starting swap contracts as accounting hedges. On April 25, 2017, we entered into a treasury lock contract (the "April 2017 Treasury Lock") with Bank of America, National Association, to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective new twelve-year private placement. The April 2017 Treasury Lock had a notional amount of $100 million, termination date of May 18, 2017, a fixed pay rate of 2.313%, and a receive rate equal to the ten-year treasury rate on the settlement date. On May 11, 2017, we settled the April 2017 Treasury Lock, resulting in a gain of approximately $0.7 million. This gain is included in accumulated other comprehensive income and will be amortized to interest expense over ten years. The April 2017 Treasury Lock has been deemed to be a highly effective cash flow hedge and we elected to designate the April 2017 Treasury Lock as an accounting hedge. On May 31, 2017, we entered into a treasury lock contract (the "May 2017 Treasury Lock") with Bank of America, National Association, to reduce the interest rate variability exposure of the projected interest cash flows of our then prospective new seven-year private placement. The May 2017 Treasury Lock had a notional amount of $100 million, termination date of July 26, 2017, a fixed pay rate of 2.064%, and a receive rate equal to the seven-year treasury rate on the settlement date. On June 23, 2017, we settled the May 2017 Treasury Lock, resulting in a loss of approximately $0.5 million. This loss is included in accumulated other comprehensive income and will be amortized to interest expense over seven years. The May 2017 Treasury Lock has been deemed to be a highly effective cash flow hedge and we elected to designate the May 2017 Treasury Lock as an accounting hedge. On November 26, 2018, we entered into an interest rate swap agreement with Bank of America, National Association, to fix the interest rate associated with Term Loan A associated with our then prospective First Amendment at approximately 4.13% through its maturity date of January 9, 2021, subject to adjustments based on our consolidated leverage ratio. The forward-starting interest rate swap contracts have been deemed to be highly effective cash flow hedges and we elected to designate all the forward-starting swap contracts as accounting hedges. The following is a summary of the terms of the interest rate swap as of December 31, 2018 (dollars in thousands):
The effective portion of changes in the fair value of the derivatives that are designated as cash flow hedges are being recorded as accumulated other comprehensive income and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair value of the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. |
Partners Capital of American Assets Trust, L.P. (Notes) |
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Equity [Abstract] | |
PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. | PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P. As of December 31, 2018, the Operating Partnership had 17,177,608 common units (the “Noncontrolling Common Units”) outstanding. American Assets Trust, Inc. owned 73.2% of the Operating Partnership at December 31, 2018. The remaining 26.8% 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, 2018, 2017 and 2016, approximately 17,372, 693,842 and 10,694, respectively, common units were converted into shares of the company's common stock. |
Equity of American Assets Trust, Inc. (Notes) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY OF AMERICAN ASSETS TRUST, INC. | EQUITY OF AMERICAN ASSETS TRUST, INC. Stockholders' Equity On May 6, 2013, we entered into an at-the-market (“ATM”) equity program with four sales agents pursuant to which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $150.0 million. We completed $150.0 million of issuances under such ATM program on May 21, 2015. On May 27, 2015, we entered into a new ATM equity program with five sales agents under which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million. The sales of shares of our common stock made through the ATM equity program are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. For the year ended December 31, 2018, no shares of common stock were sold through the ATM equity program. As of December 31, 2018, we had the capacity to issue up to an additional $176.2 million in shares of our common stock under our active ATM equity program. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under the active ATM equity program. Preferred Stock Authorized Shares We have been authorized to issue 10,000,000 shares of preferred stock with a par value of $0.01, of which no shares were outstanding at December 31, 2018. Upon issuance, our board of directors has the ability to define the terms of the preferred shares, including voting rights, liquidation preferences, conversion and redemption provisions and dividend rates. Dividends The following table lists the dividends declared and paid on our shares of common stock and Noncontrolling Common Units for the years ended December 31, 2018, 2017 and 2016:
Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders and holders of common units, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. A summary of the income tax status of dividends per share paid is as follows:
Stock-Based Compensation The company has established the 2011 Equity Incentive Award Plan (the "2011 Plan"), which provides for grants to directors, employees and consultants of the company and the Operating Partnership of stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of 4,054,411 shares of our common stock are authorized for issuance under awards granted pursuant to the 2011 Plan, and as of December 31, 2018, 2,595,189 shares of common stock remain available for future issuance. The following shares of restricted common stock have been issued as of December 31, 2018:
For the performance-based stock awards, the fair value of the awards was estimated using a Monte Carlo Simulation model. Our stock price, along with the stock prices of the group of peer REITs, is assumed to follow the Multivariate Geometric Brownian Motion Process. Multivariate Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on the stock price of the company and the group REITs were estimated based on a three year look-back period. The expected growth rate of the stock prices over the “derived service period” of the employee is determined with consideration of the risk free rate as of the grant date. For the restricted stock grants that are time-vesting, we estimate the stock compensation expense based on the fair value of the stock at the grant date. The following table summarizes the activity of non-vested restricted stock awards during the year ended December 31, 2018:
We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $3.0 million, $4.7 million and $2.4 million in noncash compensation expense for the years ended December 31, 2018, 2017 and 2016, respectively, each of which is included in general and administrative expense on the statement of income. Unrecognized compensation expense was $6.5 million at December 31, 2018, which will be recognized over a weighted-average period of 1.6 years. Earnings Per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings. For the years ended December 31, 2018, 2017 and 2016, we had a weighted average of approximately 271,905 shares, 230,602 shares and 176,408 unvested shares outstanding, respectively, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares. Diluted EPS is calculated by dividing the net income attributable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the year ended December 31, 2018, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. Additionally, the unvested restricted stock awards subject to time vesting are anti-dilutive for all periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS. Earnings Per Unit of the Operating Partnership Basic earnings (loss) per unit (“EPU”) of the Operating Partnership is computed by dividing income (loss) applicable to unitholders by the weighted average Operating Partnership units outstanding, as adjusted for the effect of participating securities. Operating Partnership units granted in equity-based payment transactions are considered participating securities prior to vesting. The impact of unvested Operating Partnership unit awards on EPU has been calculated using the two-class method whereby earnings are allocated to the unvested Operating Partnership unit awards based on distributions and the unvested Operating Partnership units’ participation rights in undistributed earnings (losses). The calculation of diluted earnings per unit for the year ended December 31, 2018, 2017 and 2016 does not include 271,905 units, 230,602 units, and 176,408 unvested weighted average Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive. The computation of basic and diluted EPS for American Assets Trust, Inc. is presented below (dollars in thousands, except share and per share amounts):
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Income Taxes (Notes) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES We elected to be taxed as a REIT and operate in a manner that allows us to qualify as a REIT, for federal income tax purposes commencing with our taxable year ending December 31, 2011. As a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. Taxable income from non-REIT activities managed through our TRS is subject to federal and state income taxes. We lease our hotel property to a wholly owned TRS that is subject to federal and state income taxes. We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between GAAP carrying amounts and their respective tax bases. Additionally, we classify certain state taxes as income taxes for financial reporting purposes in accordance with ASC Topic 740, Income Taxes. A deferred tax liability is included in our consolidated balance sheets of $0.1 million and $0.1 million as of December 31, 2018 and 2017, respectively, in relation to real estate asset basis differences and prepaid expenses for our TRS. The income tax provision included in other income (expense) on the consolidated statement of income is as follows (in thousands):
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Commitments and Contingencies (Notes) |
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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, 2021, which we have the option to extend until 2031 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. Current minimum annual payments under the leases are as follows, as of December 31, 2018 (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 Suites 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 $7.6 million based on operating performance through December 31, 2018. Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and is currently in the final stages of remediation. The final stages of the remediation will include routine, long term ground monitoring by the appropriate regulatory agency over the next five to seven years. The work performed is financed through an escrow account funded by the seller upon our purchase of the Del Monte Center. 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. As of December 31, 2018, the company accrued approximately $6.6 million for transfer taxes in connection with its Offering. The company believes that it has filed all necessary forms with the requisite taxing authorities. 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. Fourteen of our consolidated properties, representing 33.6% of our total revenue for the year ended December 31, 2018, are located in Southern California, which exposes us to greater economic risks than if we owned a more geographically diverse portfolio. Our mixed-use property located in Honolulu, Hawaii accounted for 18.8% of total revenues for the year ended December 31, 2018. Tenants in the retail industry accounted for 31.9% and 33.0% of total revenues for the years December 31, 2018 and 2017, respectively. 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. Two retail properties, Alamo Quarry Market and Waikele Center, accounted for 11.7% and 13.2% of total revenues for the years ended December 31, 2018 and 2017, respectively. Tenants in the office industry accounted for 34.0% and 33.6% of total revenues for the years December 31, 2018 and 2017, respectively. This makes us susceptible to demand for office rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the office industry. For the years ended December 31, 2018 and 2017, no tenant accounted for more than 10.0% of our total rental revenue. At December 31, 2018, salesforce.com, inc. at The Landmark at One Market accounted for 8.2% of total annualized base rent. Three other tenants (Autodesk, Inc., Lowe's, and Veterans Benefits Administration) comprise 8.8% of our total annualized base rent at December 31, 2018, in the aggregate. No other tenants represent greater than 2.0% of our total annualized base rent. Total annualized base rent used for the percentage calculations includes the annualized base rent as of December 31, 2018 for our office properties, retail properties and the retail portion of our mixed-use property. |
Operating Leases (Notes) |
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Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||
OPERATING LEASES | OPERATING LEASES At December 31, 2018, our retail, office and mixed-use properties are located in five states: California, Oregon, Hawaii, Washington and Texas. At December 31, 2018, we had approximately 811 leases with office and retail tenants, including the retail portion of our mixed-use property. Our multifamily properties are located in Southern California, and we had approximately 1,866 leases with residential tenants at December 31, 2018, excluding Santa Fe Park RV Resort. 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 seven to fifteen 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 December 31, 2018, 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 for the years ended December 31 (in thousands):
The above future minimum rentals exclude residential leases, which are typically range from seven to fifteen months, and exclude the hotel, as rooms are rented on a nightly basis. |
Component of Rental Income and Expense (Notes) |
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Operating Leases, Income Statement, Lease Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPONENTS OF RENTAL INCOME AND EXPENSE | COMPONENTS OF RENTAL INCOME AND EXPENSE The principal components of rental income are as follows (in thousands):
Minimum rents include $2.4 million, $0.8 million and $0.8 million for the years ended December 31, 2018, 2017 and 2016, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $3.6 million, $3.3 million and $3.5 million for the years ended December 31, 2018, 2017 and 2016, respectively, to recognize the amortization of above and below market leases. The principal components of rental expenses are as follows (in thousands):
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Other Income (Expenses) (Notes) |
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OTHER INCOME (EXPENSE) | OTHER INCOME (EXPENSE) The principal components of other income (expense), net are as follows (in thousands):
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Related Party Transactions (Notes) |
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS At Torrey Reserve Campus, we previously leased space to ICW, an entity owned and controlled by Ernest Rady. Rental revenue recognized on the leases of $0.1 million, $0.1 million and $2.2 million for the years ended December 31, 2018, 2017 and 2016, respectively, is included in rental income. Additionally, on July 1, 2014, we entered into a workers' compensation insurance policy with ICW. The policy premium was approximately $0.4 million for the period July 1, 2014 through July 1, 2015. We renewed this policy with ICW on July 1, 2015 and the premium was approximately $0.2 million for the period July 1, 2015 through July 1, 2016. We renewed this policy with ICW on July 1, 2016 and the premium was approximately $0.2 million for the period July 1, 2016 through July 1, 2017. We renewed this policy with ICW on June 30, 2017 and the premium is approximately $0.2 million for the period July 1, 2017 through July 1, 2018. We did not renew this policy with ICW during the second quarter of 2018 and commencing July 1, 2018, we entered into a workers' compensation policy with an unaffiliated third-party insurer. At Torrey Reserve Campus, we lease space to American Assets, Inc., an entity owned and controlled by Ernest Rady. Rental revenue recognized on the lease of $0.1 million for both the years ended December 31, 2018 and 2017 is included in rental income. At Torrey Reserve Campus, we lease space to EDisability, LLC, an entity majority owned and controlled by Ernest Rady. Rent revenue recognized on the lease of $0.1 million for the year ended December 31, 2018 is included in rental income. On occasion, the company utilizes aircraft services provided by AAI Aviation, Inc. ("AAIA"), an entity owned and controlled by Ernest Rady. For the years ending December 31, 2018, 2017 and 2016, we incurred approximately $0.1 million, $0.1 million and $0.2 million, respectively, of expenses related to aircraft services of AAIA or reimbursement to Mr. Rady (or his trust) for use of the aircraft owned by AAIA. These expenses are recorded as general and administrative expenses in our consolidated statements of comprehensive income. As of December 31, 2018, Mr. Rady and his affiliates owned approximately 14.0% of our outstanding common stock and 23.1% of our outstanding common units, which together represent an approximate 37% beneficial interest in our company on a fully diluted basis. The Waikiki Beach Walk entities have a 47.7% investment in WBW CHP LLC, an entity that was formed to, among other things, construct a chilled water plant to provide air conditioning to the property and other adjacent facilities. The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $1.1 million, $1.0 million and $0.9 million were made for the years ended December 31, 2018, 2017 and 2016, respectively, and included in rental expenses on the statements of income. |
Segment Reporting (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. However, we have aggregated our properties into reportable segments as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies. 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. We evaluate the performance of our segments based on segment profit which is defined as property revenue less property expenses. We do not use asset information as a 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):
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
The following table shows net real estate and secured note payable balances for each of the segments, along with their capital expenditures for each year (in thousands):
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Quarterly Financial Information (Unaudited) (Notes) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The tables below reflect selected American Assets Trust, Inc. quarterly information for 2018 and 2017 (in thousands, except per shares data):
The tables below reflect selected American Assets Trust, L.P. quarterly information for 2018 and 2017 (in thousands, except per shares data):
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Subsequent Events (Notes) |
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Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 9, 2019, we entered into the first amendment (“First Amendment”) to the Second Amended and Restated Credit Facility, which extended the maturity date of Term Loan A to January 9, 2021, subject to three, one-year extension options. Additionally, in connection with the First Amendment, borrowings under the Second Amended and Restated Credit Facility with respect to Term Loan bear interest at floating rates equal to, at our option, either (1) LIBOR, plus a spread which ranges from 1.20% to 1.70% based on our consolidated total leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps or (c) the Eurodollar rate plus 100 bps, in each case plus a spread which ranges from 0.20% to 0.70% based on our consolidated total leverage ratio. The foregoing rates are more favorable than previously contained in the Second Amended and Restated Credit Facility (prior to entry into the First Amendment) with respect to Term Loan A. On January 23, 2019, we recorded the deed to the former Sears building at Carmel Mountain Plaza in connection with a ground lease termination agreement with the former ground lessee. In connection therewith, we recognized approximately $4.4 million of lease termination fees in January 2019. |
SCHEDULE III-Consolidated Real Estate and Accumulated Depreciation (Notes) |
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SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE III-Consolidated Real Estate and Accumulated Depreciation |
(1) For Federal tax purposes, the aggregate tax basis is approximately $1.9 billion as of December 31, 2018.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business and Organization | Business and Organization American Assets Trust, Inc. (which may be referred to in these financial statements as the “company,” “we,” “us,” or “our”) is a Maryland corporation formed on July 16, 2010 that did not have any operating activity until the consummation of our initial public offering (the “Offering”) and the related acquisition on January 19, 2011 of certain assets of a combination of entities whose assets included entities owned and/or controlled by Ernest S. Rady and his affiliates, including the Rady Trust, which in turn owned (1) controlling interests in entities owning 17 properties and the property management business of American Assets, Inc. and (2) noncontrolling interests in entities owning four properties. The company is the sole general partner of American Assets Trust, L.P., a Maryland limited partnership formed on July 16, 2010 (the “Operating Partnership”). The company's operations are carried on through our Operating Partnership and its subsidiaries, including our taxable REIT subsidiary. Since the formation of our Operating Partnership, the company has controlled our Operating Partnership as its general partner and has consolidated its assets, liabilities and results of operations. We are a vertically integrated and self-administered REIT with 189 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing. Any reference to the number of properties or units, square footage or acres, employees; or references to beneficial ownership interests, are unaudited and outside the scope of our independent registered public accounting firm's audit of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. As of December 31, 2018, we owned or had a controlling interest in 27 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of December 31, 2018, we owned land at three of our properties that we classify as held for development and construction in progress. A summary of the properties owned by us is as follows:
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Basis of Presentation | Basis of Presentation Our consolidated financial statements include the accounts of the company, our Operating Partnership and our subsidiaries. The equity interests of other investors in our Operating Partnership are reflected as noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates. |
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Consolidated Statements of Cash Flows-Supplemental Disclosures | 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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Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks. When we determine that we are the owner of tenant improvements and the tenant has reimbursed us for a portion or all of the tenant improvement costs, we consider the amount paid to be additional rent, which is recognized on a straight-line basis over the term of the related lease. For first generation tenants, in instances in which we fund tenant improvements and the improvements are deemed to be owned by us, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When we determine that the tenant is the owner of tenant improvements, tenant allowances are recorded as lease incentives and we commence revenue recognition and lease incentive amortization when possession or control of the space is turned over to the tenant for tenant work to begin. Percentage rents, which represent additional rents based upon the level of sales achieved by certain tenants, are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved and the percentage rents are collectible. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. Other property income includes parking income, general excise tax billed to tenants and fees charged to tenants at our multifamily properties. Other property income is recognized when we satisfy performance obligations as evidenced by the transfer of control of our services to customers. We measure other property income based on the amount of consideration we expect to be entitled to in exchange for the services provided. We recognize general excise tax gross, with the amounts billed to tenants and customers recorded in other property income and the related taxes paid as rental expense. The general excise tax included in other income was $3.6 million, $3.7 million and $3.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees for which the tenant has relinquished control of the space are generally recognized on the later of the termination date or the satisfaction of all conditions precedent to the lease termination, including, without limitation, payment of all lease termination fees. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement. We recognize revenue on the hotel portion of our mixed-use property from the rental of hotel rooms and guest services when we satisfy performance obligations as evidenced by the transfer of control when the rooms are occupied and services have been provided. Food and beverage sales are recognized when the customer has been served or at the time the transaction occurs. Revenue from room rental is included in rental revenue on the statement of income. Revenue from other sales and services provided is included in other property income on the statement of income. We make estimates of the collectability of our accounts receivable related to minimum rents, straight-line rents, expense reimbursements and other revenue. Accounts receivable and deferred rent receivable are carried net of this allowance for doubtful accounts. We generally do not require collateral or other security from our tenants, other than letters of credit or security deposits. Our determination as to the collectability of accounts receivable and correspondingly, the adequacy of this allowance, is based primarily upon evaluations of individual receivables, current economic conditions, historical experience and other relevant factors. The allowance for doubtful accounts is increased or decreased through bad debt expense. In some cases, primarily relating to straight-line rents, the collection of these amounts extends beyond one year. Our experience relative to unbilled straight-line rents is that a portion of the amounts otherwise recognizable as revenue is never billed to or collected from tenants due to early lease terminations, lease modifications, bankruptcies and other factors. Accordingly, the extended collection period for straight-line rents along with our evaluation of tenant credit risk may result in the nonrecognition of a portion of straight-line rental income until the collection of such income is reasonably assured. If our evaluation of tenant credit risk changes indicating more straight-line revenue is reasonably collectible than previously estimated and realized, the additional straight-line rental income is recognized as revenue. If our evaluation of tenant credit risk changes indicating a portion of realized straight-line rental income is no longer collectible, a reserve and bad debt expense is recorded. At December 31, 2018 and December 31, 2017, our allowance for doubtful accounts was $0.6 million and $0.4 million, respectively. Our allowance for deferred rent receivables at December 31, 2018 and December 31, 2017 was $0.3 million and $1.4 million, respectively. Total bad debt expense was $0.8 million, $0.8 million and $0.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. We recognize gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized when we satisfy performance obligations as evidenced when (1) the collectability of the sales price is reasonably assured, (2) we are not obligated to perform significant activities after the sale, (3) the initial investment from the buyer is sufficient and (4) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred until the requirements for gain recognition have been met. |
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Real Estate | Real Estate Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 30 years to a maximum of 40 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 3 years to 15 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to the contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. For the years ended December 31, 2018, 2017 and 2016, real estate depreciation expense was $99.6 million, $70.2 million and $62.5 million, respectively. Acquisitions of properties are accounted for in accordance with the authoritative accounting guidance on acquisitions and business combinations. Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and appraised values. When we acquire operating real estate properties, the purchase price is allocated to land and buildings, intangibles such as in-place leases, and to current assets and liabilities acquired, if any. Such valuations include a consideration of the noncancelable terms of the respective leases as well as any applicable renewal periods. The fair values associated with below market renewal options are determined based on a review of several qualitative and quantitative factors on a lease-by-lease basis at acquisition to determine whether it is probable that the tenant would exercise its option to renew the lease agreement. These factors include: (1) the type of tenant in relation to the property it occupies, (2) the quality of the tenant, including the tenant's long term business prospects and (3) whether the fixed rate renewal option was sufficiently lower than the fair rental of the property at the date the option becomes exercisable such that it would appear to be reasonably assured that the tenant would exercise the option to renew. The value allocated to in-place leases is amortized over the related lease term and reflected as depreciation and amortization in the statement of income. The value of above and below market leases associated with the original noncancelable lease terms are amortized to rental income over the terms of the respective noncancelable lease periods and are reflected as either an increase (for below market leases) or a decrease (for above market leases) to rental income in the statement of income. The value of the leases associated with below market lease renewal options that are likely to be exercised are amortized to rental income over the respective renewal periods. If a tenant vacates its space prior to contractual termination of its lease or the lease is not renewed, the unamortized balance of any in-place lease value is written off to rental income and amortization expense. |
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Capitalized Costs | Capitalized Costs We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance and construction costs and salaries and related costs of personnel directly involved. Additionally, we capitalize interest costs related to development and significant redevelopment activities. Capitalization of these costs begins when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use, at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine that the completion of development or redevelopment is no longer probable, we expense all capitalized costs which are not recoverable. |
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Impairment of Long Lived Assets | Impairment of Long Lived Assets We review for impairment on a property by property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. |
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Financial Instruments | Financial Instruments The estimated fair values of financial instruments are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair values. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. |
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Derivative Instruments | Derivative Instruments At times, we may use derivative instruments to manage exposure to variable interest rate risk. We may enter into interest rate swaps to manage our exposure to variable interest rate risk. If and when we enter into derivative instruments, we ensure that such instruments qualify as cash flow hedges and would not enter into derivative instruments for speculative purposes. Any interest rate swaps associated with our cash flow hedges are recorded at fair value on a recurring basis. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into interest expense as interest is incurred on the related variable rate debt. Our cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and LIBOR rate. In addition, we evaluate the default risk of the counterparty by monitoring the credit worthiness of the counterparty. When ineffectiveness exists, the ineffective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recognized in earnings in the period affected. |
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Cash and Cash Equivalents | Cash and Cash Equivalents We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity of less than 3 months. Cash balances in individual banks may exceed the federally insured limit of $250,000 by the Federal Deposit Insurance Corporation (the "FDIC"). No losses have been experienced related to such accounts. |
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Restricted Cash | Restricted Cash Restricted cash consists of amounts held by lenders to provide for future real estate tax expenditures, insurance expenditures and reserves for capital improvements. |
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Other Assets | Other Assets Other assets consist primarily of lease costs, lease incentives, acquired in-place leases and acquired above market leases. Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place and include third party commissions related to obtaining a lease. Capitalized lease costs are amortized over the life of the related lease and included in depreciation and amortization expense on the statement of income. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any lease costs are written off. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow. Therefore, we classify cash outflows for lease costs as an investing activity in our consolidated statements of cash flows. |
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Variable Interest Entities | Variable Interest Entities Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as variable interest entities (“VIEs”). VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is the party that has a controlling interest in the VIE. Identifying the party with the controlling interest requires a focus on which entity has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (1) the obligation to absorb the expected losses of the VIE or (2) the right to receive the benefits from the VIE. |
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Stock-Based Compensation | Stock-Based Compensation We grant stock-based compensation awards to our employees and directors typically in the form of restricted shares of common stock, options to purchase common stock and/or shares of common stock. We measure stock-based compensation expense based on the fair value of the award on the grant date and recognize the expense ratably over the vesting period. |
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Deferred Compensation | Deferred Compensation Our Operating Partnership has adopted the American Assets Trust Executive Deferral Plan V (“EDP V”) and the American Assets Trust Executive Deferral Plan VI (“EDP VI”). These plans were adopted by our Operating Partnership as successor plans to those deferred compensation plans maintained by American Assets Inc. ("AAI") in which certain employees of AAI, who were transferred to us in connection with the Offering (the “Transferred Participants”), participated prior to the Offering. EDP V and EDP VI contain substantially the same terms and conditions as these predecessor plans. AAI transferred to our Operating Partnership the Transferred Participants' account balances under the predecessor plans. These transferred account balances represent amounts deferred by the Transferred Participants prior to the Offering while they were employed by AAI. At the time eligible participants defer compensation, we record compensation cost and a corresponding deferred compensation plan liability, which is included in other liabilities and deferred credits on our consolidated balance sheets. This liability is adjusted to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each participant, and the impact of adjusting the liability to fair value is recorded as an increase or decrease to compensation cost. |
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Income Taxes | Income Taxes We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with the taxable year ending December 31, 2011. To maintain our qualification as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we maintain our qualification for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to maintain our qualification as a REIT in any taxable year, and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to regular U.S. federal income tax. We are subject to certain state and local income taxes. We, together with one of our subsidiaries, have elected to treat such subsidiary as a taxable REIT subsidiary (a “TRS”) for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes. |
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Segment Information | Segment Information Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in four reportable 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. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The pronouncement was issued to simplify the on-going assessment of hedge effectiveness and increase transparency related to hedge accounting. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The company early adopted the provisions of ASU No. 2017-12 effective October 1, 2017 using the modified retrospective approach. The company determined there is no impact to the company’s historical results as a result of adoption of the new standard and therefore no adjustment to retained earnings from application of the ASU. In January 2017, the FASB issued ASU 2017-1, Business Combinations: Clarifying the Definition of a Business. The pronouncement changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The pronouncement requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The company early adopted this ASU effective January 1, 2017. For the period from January 1, 2017 through December 31, 2017, the company acquired three properties for which we concluded that substantially all of the fair value of the assets acquired were concentrated in a single identifiable asset and that the assets therefore did not meet the definition of a business under ASU 2017-01. Acquisition transaction costs associated with these property acquisitions were approximately $0.2 million and were capitalized to real estate investments. In November 2016, the FASB issued ASU 2016-18, Restricted Cash. This pronouncement requires companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement also requires a disclosure of a reconciliation between the statement of financial position and the statement of cash flows when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Entities with material restricted cash and restricted cash equivalents balances will be required to disclose the nature of the restrictions. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. The company adopted this ASU effective December 31, 2017. The adoption of this ASU impacted the presentation of cash flows with inclusion of restricted cash flows for each of the presented periods. As of December 31, 2018 and 2017, we had $9.3 million and $9.3 million of restricted cash, respectively, on our consolidated balance sheets. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The company adopted this ASU effective January 1, 2017 and the adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842), which provides the principles for the recognition, measurement, presentation and disclosure of leases. This ASU significantly changes the accounting for leases by requiring lessees to recognize assets and liabilities for leases greater than 12 months on their balance sheet. The lessor model stays substantially the same; however, there were modifications to conform lessor accounting with the lessee model, eliminate real estate specific guidance, further define certain lease and non-lease components, and change the definition of initial direct costs of leases requiring significantly more leasing related costs to be expensed upfront. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. We will adopt ASU No. 2016-2 in the first quarter of 2019 using the modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows lessors to elect a practical expedient by class of underlying assets to not separate non-lease components from the lease component if certain conditions are met. The lessor’s practical expedient election would be limited to circumstances in which the non-lease components otherwise would be accounted for under the new revenue guidance and both (i) the timing and pattern of transfer are the same for the nonlease component and the related lease component and (ii) the lease component would be classified as an operating lease. The company will elect the practical expedient which would allow the company the ability to combine the lease and non-lease components if the underlying asset meets the criteria above. ASU 2018-11 also includes an optional transition method in addition to the existing requirements for transition to the new standard by recognizing a cumulative effect adjustment to the opening balance sheet of retained earnings in the period of adoption. Consequently, a company’s reporting for the comparative periods presented in the financial statements would continue to be in accordance with current GAAP (Topic 840). The company will elect this practical expedient as well. While we continue to evaluate the impact this pronouncement will have on our consolidated financial statements, we expect that the real estate leases designated as operating leases in Note 12 - Commitments and Contingencies, will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets upon adoption. As of December 31, 2018, the remaining contractual payments under lease agreements for which the company is the lessee aggregated approximately $8.9 million. The company estimates the adoption of this standard will result in a right-of-use asset and lease liability of between $5.0 million and $10.0 million. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards. The pronouncement is effective for reporting periods beginning after December 15, 2017. We adopted the provisions of the ASU effective January 1, 2018 using the modified retrospective approach. As discussed above, lease are specifically excluded from this and will be governed by the applicable lease codification. We evaluated the revenue recognition for all contracts within this scope under existing accounting standards and under the new revenue recognition ASU and confirmed that there were no differences in the amounts recognized or the pattern of recognition. This evaluation included revenues from the hotel portion of our mixed-use property, parking income and excise taxes charged to customers. Therefore, the adoption of this ASU did not result in an adjustment to the company’s retained earnings on January 1, 2018. |
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Fair Value Measurements | 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:
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. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Properties Owned | A summary of the properties owned by us is as follows:
A summary of our real estate investments is as follows (in thousands):
(1) Land related to held for development and construction in progress is included in the Held for Development and Construction in Progress classifications on the consolidated balance sheets. |
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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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Real Estate (Tables) |
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Real Estate Investments | A summary of the properties owned by us is as follows:
A summary of our real estate investments is as follows (in thousands):
(1) Land related to held for development and construction in progress is included in the Held for Development and Construction in Progress classifications on the consolidated balance sheets. |
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Schedule of Purchase Price Allocations | The financial information set forth below summarizes the company’s purchase price allocations for the Pacific Ridge Apartments and Gateway Marketplace during the year ended December 31, 2017 (in thousands):
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Schedule of Operating Results | The following table summarizes the operating results for the Pacific Ridge Apartments and Gateway Marketplace included in the company’s historical consolidated statement of operations for the period of acquisition through December 31, 2017 (in thousands):
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Schedule of Pro Forma Financial Information | 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).
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Acquired In-Place Leases and Above/Below Market Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquired lease intangibles included in other assets and other liabilities | Increases (decreases) in net income as a result of amortization of our in-place leases, above market leases and below market leases are as follows (in thousands):
The following summarizes our acquired lease intangibles, which are included in other assets and other liabilities and deferred credits (in thousands):
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Future Amortization for Acquired In-Place Leases | As of December 31, 2018, the amortization for acquired leases during the next five years and thereafter, assuming no early lease terminations, is as follows (in thousands):
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Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities measured at fair value on recurring basis | 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):
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Carrying amount and fair value of financial instruments | A summary of the carrying amount and fair value of our financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):
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Other Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Prepaid Expenses and Other Assets | Other assets consist of the following (in thousands):
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Other Liabilities and Deferred Credits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities and deferred credits | Other liabilities and deferred credits consist of the following (in thousands):
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of total secured notes payable outstanding | The following is a summary of the Operating Partnership's total secured notes payable outstanding as of December 31, 2018 and December 31, 2017 (in thousands):
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Scheduled principal payments on notes payable | Scheduled principal payments on secured and unsecured notes payable as of December 31, 2018 are as follows (in thousands):
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Derivative and Hedging (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The following is a summary of the terms of the interest rate swap as of December 31, 2018 (dollars in thousands):
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Equity of American Assets Trust, Inc. (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid on shares of common stock and noncontrolling common units | The following table lists the dividends declared and paid on our shares of common stock and Noncontrolling Common Units for the years ended December 31, 2018, 2017 and 2016:
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Summary of income tax status of dividends per share paid | A summary of the income tax status of dividends per share paid is as follows:
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Schedule of restricted common stock | The following shares of restricted common stock have been issued as of December 31, 2018:
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Activity of restricted stock awards | The following table summarizes the activity of non-vested restricted stock awards during the year ended December 31, 2018:
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Computation of basic and diluted EPS | The computation of basic and diluted EPS for American Assets Trust, Inc. is presented below (dollars in thousands, except share and per share amounts):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | The income tax provision included in other income (expense) on the consolidated statement of income is as follows (in thousands):
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Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current minimum annual payments under the leases | Current minimum annual payments under the leases are as follows, as of December 31, 2018 (in thousands):
As of December 31, 2018, 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 for the years ended December 31 (in thousands):
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Operating Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases, Operating [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current minimum future rentals under the leases | Current minimum annual payments under the leases are as follows, as of December 31, 2018 (in thousands):
As of December 31, 2018, 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 for the years ended December 31 (in thousands):
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Component of Rental Income and Expense (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases, Income Statement, Lease Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal components of rental income | The principal components of rental income are as follows (in thousands):
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Principal components of rental expenses | The principal components of rental expenses are as follows (in thousands):
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Other Income (Expenses) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal components of other income (expense), net | The principal components of other income (expense), net are as follows (in thousands):
|
Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segments operating activity | The following table represents operating activity within our reportable segments (in thousands):
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Reconciliation of segment profit to net income attributable to stockholders | The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
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Net Real Estate and Secured note payable balances by Segments | The following table shows net real estate and secured note payable balances for each of the segments, along with their capital expenditures for each year (in thousands):
|
Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Information | The tables below reflect selected American Assets Trust, Inc. quarterly information for 2018 and 2017 (in thousands, except per shares data):
The tables below reflect selected American Assets Trust, L.P. quarterly information for 2018 and 2017 (in thousands, except per shares data):
|
Summary of Significant Accounting Policies (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018
USD ($)
Employee
Segment
Room
Property
|
Dec. 31, 2017
USD ($)
Property
|
Dec. 31, 2016
USD ($)
|
Jan. 01, 2019
USD ($)
|
|
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of Properties Acquired, Asset Acquisition | Property | 3 | |||
Acquisition cost capitalized | $ 200,000 | |||
Document Period End Date | Dec. 31, 2018 | |||
Number of employees | Employee | 189 | |||
Number of office, retail, multifamily and mixed-use operating properties | Property | 27 | |||
Properties held for development | Property | 3 | |||
Allowance for doubtful accounts | $ (600,000) | (400,000) | ||
Total bad debt expense | 800,000 | 800,000 | $ 800,000 | |
Real estate depreciation expense | $ 99,600,000 | 70,200,000 | 62,500,000 | |
Short term liquid investments, initial maturity | 3 months | |||
Cash balance at banks, federally insured amount | $ 250,000 | |||
Cash balance at banks, excess of FDIC insured limit | 42,400,000 | 45,700,000 | ||
Restricted cash | 9,316,000 | 9,344,000 | 9,950,000 | |
Incremental stock compensation cost from modification | $ 0 | 2,200,000 | 0 | |
Number of operating segments | Segment | 4 | |||
Rooms in mixed-use segment all-suite hotel | Room | 369 | |||
Future minimum lease payments due | $ 8,922,000 | |||
Money Market Funds | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash balance at banks, excess of FDIC insured limit | $ 200,000 | 29,400,000 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of taxable income required to distribute to qualify as real estate investment trust (REIT) | 90.00% | |||
Building And Improvement | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Real Estate, estimated useful lives | 30 years | |||
Building And Improvement | Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Real Estate, estimated useful lives | 40 years | |||
Furniture And Equipment | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Real Estate, estimated useful lives | 3 years | |||
Furniture And Equipment | Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Real Estate, estimated useful lives | 15 years | |||
Deferred Rent Receivables | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts | $ (300,000) | (1,400,000) | ||
Other Income | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
General excise tax recognized, gross | $ 3,600,000 | $ 3,700,000 | $ 3,800,000 | |
Accounting Standards Update 2014-09 | Scenario, Forecast | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | $ 5,000,000 | |||
Lease liability | 5,000,000 | |||
Accounting Standards Update 2014-09 | Scenario, Forecast | Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | 10,000,000 | |||
Lease liability | $ 10,000,000 |
Summary of Significant Accounting Policies Supplemental Disclosures Related to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Supplemental cash flow information | |||
Total interest costs incurred | $ 53,736 | $ 55,418 | $ 53,487 |
Interest capitalized | 1,488 | 1,570 | 1,551 |
Interest expense | 52,248 | 53,848 | 51,936 |
Cash paid for interest, net of amounts capitalized | 52,632 | 47,473 | 47,793 |
Cash paid for income taxes | 462 | 461 | 641 |
Supplemental schedule of noncash investing and financing activities | |||
Increase (decrease) in accounts payable and accrued liabilities for construction in progress | 8,379 | (2,746) | (435) |
Increase (decrease) in accrued leasing commissions | 3,534 | 726 | (355) |
Reduction to capital for prepaid equity financing costs | $ 241 | $ 0 | $ 0 |
Real Estate (Details) $ in Millions |
6 Months Ended | 8 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jul. 06, 2017
USD ($)
ft²
|
Apr. 28, 2017
USD ($)
unit
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Real Estate [Line Items] | |||||
Acquisition cost capitalized | $ 0.2 | ||||
Pacific Ridge Apartments | |||||
Real Estate [Line Items] | |||||
Number of units in real estate property | unit | 533 | ||||
Purchase price consideration | $ 232.0 | ||||
Acquisition cost capitalized | $ 0.1 | ||||
Gateway Marketplace | |||||
Real Estate [Line Items] | |||||
Purchase price consideration | $ 42.0 | ||||
Acquisition cost capitalized | $ 0.1 | ||||
Area of real estate property | ft² | 128,000 |
Real Estate Summary of Real Estate Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Real Estate Properties [Line Items] | ||||
Construction in progress | $ 71,228 | $ 68,272 | ||
Total Real estate, at cost | 2,630,191 | 2,614,138 | ||
Accumulated depreciation | (590,338) | (537,431) | ||
Net real estate | 2,039,853 | 2,076,707 | ||
Total Retail | ||||
Real Estate Properties [Line Items] | ||||
Net real estate | 628,734 | 658,654 | ||
Total Office | ||||
Real Estate Properties [Line Items] | ||||
Net real estate | 822,574 | 813,121 | ||
Real Estate Investment | ||||
Real Estate Properties [Line Items] | ||||
Land | 555,630 | 555,738 | ||
Buildings | 1,775,730 | 1,763,130 | ||
Land improvements | 61,621 | 61,078 | ||
Tenant improvements | 163,740 | 150,802 | ||
Furniture, fixtures, and equipment | 23,911 | 21,263 | ||
Construction in progress | [1] | 49,559 | 62,127 | |
Total Real estate, at cost | 2,630,191 | 2,614,138 | ||
Accumulated depreciation | (590,338) | (537,431) | ||
Net real estate | 2,039,853 | 2,076,707 | ||
Real Estate Investment | Total Retail | ||||
Real Estate Properties [Line Items] | ||||
Land | 262,860 | 262,860 | ||
Buildings | 516,566 | 548,062 | ||
Land improvements | 43,412 | 42,401 | ||
Tenant improvements | 70,210 | 67,879 | ||
Furniture, fixtures, and equipment | 570 | 372 | ||
Construction in progress | 8,598 | 3,086 | ||
Total Real estate, at cost | 902,216 | 924,660 | ||
Accumulated depreciation | (273,482) | (266,006) | ||
Net real estate | 628,734 | 658,654 | ||
Real Estate Investment | Total Office | ||||
Real Estate Properties [Line Items] | ||||
Land | 143,467 | 143,575 | ||
Buildings | 743,474 | 705,999 | ||
Land improvements | 8,825 | 9,313 | ||
Tenant improvements | 91,612 | 80,968 | ||
Furniture, fixtures, and equipment | 2,671 | 2,085 | ||
Construction in progress | 39,511 | 52,512 | ||
Total Real estate, at cost | 1,029,560 | 994,452 | ||
Accumulated depreciation | (206,986) | (181,331) | ||
Net real estate | 822,574 | 813,121 | ||
Real Estate Investment | Total Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Land | 72,668 | 72,668 | ||
Buildings | 389,831 | 383,210 | ||
Land improvements | 6,778 | 6,758 | ||
Tenant improvements | 0 | 0 | ||
Furniture, fixtures, and equipment | 13,844 | 12,377 | ||
Construction in progress | 854 | 6,505 | ||
Total Real estate, at cost | 483,975 | 481,518 | ||
Accumulated depreciation | (71,933) | (57,474) | ||
Net real estate | 412,042 | 424,044 | ||
Real Estate Investment | Total Mixed-Use | ||||
Real Estate Properties [Line Items] | ||||
Land | 76,635 | 76,635 | ||
Buildings | 125,859 | 125,859 | ||
Land improvements | 2,606 | 2,606 | ||
Tenant improvements | 1,918 | 1,955 | ||
Furniture, fixtures, and equipment | 6,826 | 6,429 | ||
Construction in progress | 596 | 24 | ||
Total Real estate, at cost | 214,440 | 213,508 | ||
Accumulated depreciation | (37,937) | (32,620) | ||
Net real estate | $ 176,503 | $ 180,888 | ||
|
Real Estate Pacific Ridge & Gateway Marketplace Financial Results (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Real Estate [Line Items] | |||||||||||||
Total revenue | $ 82,605 | $ 82,507 | $ 85,023 | $ 80,732 | $ 81,746 | $ 82,339 | $ 77,106 | $ 73,792 | $ 12,650 | $ 330,867 | $ 314,983 | $ 295,088 | |
Operating Expenses | 16,320 | 251,332 | 221,337 | 197,147 | |||||||||
Operating income (loss) | 22,091 | 27,275 | 17,249 | 12,920 | 23,792 | 26,477 | 20,048 | 23,329 | (3,670) | 79,535 | 93,646 | 97,941 | |
Net income | $ 9,209 | $ 14,271 | $ 4,413 | $ (691) | $ 9,731 | $ 12,505 | $ 7,588 | $ 10,308 | (3,670) | $ 27,202 | $ 40,132 | $ 45,637 | |
Pacific Ridge Apartments | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Total revenue | 10,983 | ||||||||||||
Operating Expenses | 15,238 | ||||||||||||
Operating income (loss) | (4,255) | ||||||||||||
Net income | $ (4,255) | ||||||||||||
Gateway Marketplace | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Total revenue | $ 1,667 | ||||||||||||
Operating Expenses | 1,082 | ||||||||||||
Operating income (loss) | 585 | ||||||||||||
Net income | $ 585 |
Real Estate Property Asset Acquisitions (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Real Estate [Line Items] | ||
Acquired in-place leases, net | $ 6,281 | $ 8,371 |
Prepaid expenses, deposits and other | 6,683 | 5,945 |
TOTAL ASSETS | 2,198,250 | 2,259,864 |
Accounts payable and accrued expenses | 46,616 | 38,069 |
Security deposits payable | 8,844 | 6,570 |
Other liabilities and deferred credits | 49,547 | 46,061 |
Liabilities | $ 1,395,779 | 1,415,720 |
Gateway Marketplace | ||
Real Estate [Line Items] | ||
Land | 17,363 | |
Buildings | 19,192 | |
Land improvements | 1,522 | |
Furniture, fixtures, and equipment | 930 | |
Total real estate | 39,007 | |
Acquired in-place leases, net | 2,920 | |
Prepaid expenses, deposits and other | 0 | |
TOTAL ASSETS | 41,927 | |
Accounts payable and accrued expenses | 203 | |
Security deposits payable | 22 | |
Other liabilities and deferred credits | 1,034 | |
Liabilities | 1,259 | |
Pacific Ridge Apartments | ||
Real Estate [Line Items] | ||
Land | 47,971 | |
Buildings | 171,813 | |
Land improvements | 3,403 | |
Furniture, fixtures, and equipment | 3,281 | |
Total real estate | 226,468 | |
Acquired in-place leases, net | 5,592 | |
Prepaid expenses, deposits and other | 424 | |
TOTAL ASSETS | 232,484 | |
Accounts payable and accrued expenses | 74 | |
Security deposits payable | 673 | |
Other liabilities and deferred credits | 49 | |
Liabilities | $ 796 |
Real Estate Pro Forma Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Real Estate [Line Items] | ||||||||||||
Total revenue | $ 82,605 | $ 82,507 | $ 85,023 | $ 80,732 | $ 81,746 | $ 82,339 | $ 77,106 | $ 73,792 | $ 12,650 | $ 330,867 | $ 314,983 | $ 295,088 |
Operating Expenses | 16,320 | 251,332 | 221,337 | 197,147 | ||||||||
Operating income (loss) | 22,091 | 27,275 | 17,249 | 12,920 | 23,792 | 26,477 | 20,048 | 23,329 | (3,670) | 79,535 | 93,646 | 97,941 |
Net income | $ 9,209 | $ 14,271 | $ 4,413 | $ (691) | $ 9,731 | $ 12,505 | $ 7,588 | $ 10,308 | $ (3,670) | $ 27,202 | 40,132 | 45,637 |
Pro Forma | ||||||||||||
Real Estate [Line Items] | ||||||||||||
Total revenue | 322,050 | 312,414 | ||||||||||
Operating Expenses | 230,796 | 215,631 | ||||||||||
Operating income (loss) | 91,255 | 96,783 | ||||||||||
Net income | $ 36,433 | $ 41,916 |
Acquired In-Place Leases and Above/Below Market Leases Summary of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Acquired lease intangible assets | $ 518 | $ 1,178 |
Net of accumulated amortization of other intangible assets | (981) | (1,115) |
Below Market Lease [Abstract] | ||
Below market leases | 63,172 | 67,423 |
Accumulated accretion | (37,220) | (37,241) |
Acquired lease intangible liabilities, net | 25,952 | 30,182 |
In-place leases | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Acquired lease intangible assets | 40,884 | 54,206 |
Net of accumulated amortization of other intangible assets | (34,603) | (45,835) |
Acquired lease intangible assets, net | 6,281 | |
Above market leases | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Acquired lease intangible assets | 11,963 | 21,262 |
Net of accumulated amortization of other intangible assets | (11,445) | (20,084) |
Acquired lease intangible assets, net | 518 | |
Acquired lease intangible assets | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Acquired lease intangible assets, net | $ 6,799 | $ 9,549 |
Acquired In-Place Leases and Above/Below Market Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired above and below market leases | $ 3.6 | $ 3.3 | $ 3.5 |
Weighted-average amortization period of below market leases | 5 years 11 months | ||
Acquired lease, below market renewal options | $ 14.6 | ||
Weighted-average amortization period of acquired leases prior to the commencement of renewal option | 8 years 6 months | ||
In-place leases | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period of acquired leases | 7 years 10 months | ||
Above market leases | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period of acquired leases | 1 year 2 months |
Acquired In-Place Leases and Above/Below Market Leases Increases (Decreases) in Net Income as Result of Amortization of In-Place Leases Above Market Leases and Below Market Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of leases | $ (1,480) | $ (5,464) | $ (558) |
Amortization of below market leases | 4,230 | 4,239 | 4,719 |
In-place leases | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of leases | (2,090) | (8,769) | (4,029) |
Above market leases | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of leases | $ (660) | $ (934) | $ (1,248) |
Acquired In-Place Leases and Above/Below Market Leases Amortization for Acquired In-Place Leases During Next Five Years and Thereafter Assuming No Early Lease Terminations (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | ||
2019 | $ 3,478 | |
2020 | 2,647 | |
2021 | 2,414 | |
2022 | 2,242 | |
2023 | 2,073 | |
Thereafter | 13,098 | |
Acquired lease intangible liabilities, net | 25,952 | $ 30,182 |
In-place leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2019 | 1,620 | |
2020 | 1,053 | |
2021 | 719 | |
2022 | 632 | |
2023 | 539 | |
Thereafter | 1,718 | |
Acquired lease intangible assets, net | 6,281 | |
Above market leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2019 | 339 | |
2020 | 58 | |
2021 | 28 | |
2022 | 28 | |
2023 | 27 | |
Thereafter | 38 | |
Acquired lease intangible assets, net | $ 518 |
Fair Value of Financial Instruments Liabilities Fair Value Measurement on a Recurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | $ 1,424 | $ 1,156 |
Interest rate swap asset | 6,002 | 5,091 |
Interest rate swap liability | 801 | 10 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liability | 1,424 | 1,156 |
Interest rate swap asset | 6,002 | 5,091 |
Interest rate swap liability | $ 801 | $ 10 |
Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 2 |
Dec. 31, 2018 |
---|---|
Minimum | |
Fair Value Inputs Disclosures | |
Fair value assumptions, interest rate | 0.0434 |
Maximum | |
Fair Value Inputs Disclosures | |
Fair value assumptions, interest rate | 0.0484 |
Fair Value of Financial Instruments Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Secured notes payable | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 182,572 | $ 279,550 |
Secured notes payable | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 183,253 | 286,156 |
Unsecured debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 248,765 | 248,839 |
Unsecured debt | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 250,000 | 250,000 |
Unsecured senior guaranteed notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 797,098 | 796,631 |
Unsecured senior guaranteed notes | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 790,267 | 802,699 |
Unsecured line of credit | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 62,337 | 0 |
Unsecured line of credit | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 64,000 | $ 0 |
Other Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Leasing commissions, net of accumulated amortization of $28,597 and $28,318, respectively | $ 28,796 | $ 20,633 |
Interest rate swap asset | 6,002 | 5,091 |
Acquired above market leases, net | 518 | 1,178 |
Acquired in-place leases, net | 6,281 | 8,371 |
Lease incentives, net of accumulated amortization of $299 and $136, respectively | 747 | 916 |
Other intangible assets, net of accumulated amortization of $981 and $1,115, respectively | 2,994 | 227 |
Prepaid expenses, deposits and other | 6,683 | 5,945 |
Total other assets | 52,021 | 42,361 |
Leasing commissions, accumulative amortization | 28,597 | 28,318 |
Lease incentives, accumulated amortization | 299 | 136 |
Other intangible assets, accumulated amortization | $ 981 | $ 1,115 |
Other Liabilities and Deferred Credits (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Acquired below market leases, net | $ 25,952 | $ 30,182 |
Prepaid rent and deferred revenue | 11,634 | 8,429 |
Interest rate swap liability | 801 | 10 |
Straight-line rent liability | 7,393 | 4,428 |
Deferred rent expense and lease intangible | 2,210 | 1,670 |
Deferred compensation | 1,424 | 1,156 |
Deferred tax liability | 93 | 123 |
Other liabilities | 40 | 63 |
Total other liabilities and deferred credits, net | $ 49,547 | $ 46,061 |
Debt Summary of Total Secured Notes Payable Outstanding (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | ||
Notes payable, total | $ 1,232,765 | |
Secured notes payable | American Assets Trust, L.P. | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | 182,765 | $ 279,889 |
Debt issuance costs, net | (193) | (339) |
Notes payable, total | $ 182,572 | 279,550 |
Number of year amortization schedule | 30 years | |
Debt issuance costs, accumulated amortization | $ 671 | 1,191 |
Secured notes payable | American Assets Trust, L.P. | Loma Palisades | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 0 | 73,744 |
Stated Interest Rate | 6.09% | |
Stated Maturity Date | Jul. 01, 2018 | |
Secured notes payable | American Assets Trust, L.P. | One Beach Street | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 0 | 21,900 |
Stated Interest Rate | 3.94% | |
Stated Maturity Date | Apr. 01, 2019 | |
Secured notes payable | American Assets Trust, L.P. | Torrey Reserve - North Court | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 19,620 | 20,023 |
Stated Interest Rate | 7.22% | |
Stated Maturity Date | Jun. 01, 2019 | |
Secured notes payable | American Assets Trust, L.P. | Torrey Reserve-VCI, VCII, VCIII | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 6,635 | 6,764 |
Stated Interest Rate | 6.36% | |
Stated Maturity Date | Jun. 01, 2020 | |
Secured notes payable | American Assets Trust, L.P. | Solana Beach Corporate Centre I-II | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 10,502 | 10,721 |
Stated Interest Rate | 5.91% | |
Stated Maturity Date | Jun. 01, 2020 | |
Secured notes payable | American Assets Trust, L.P. | Solana Beach Towne Centre | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 35,008 | 35,737 |
Stated Interest Rate | 5.91% | |
Stated Maturity Date | Jun. 01, 2020 | |
Secured notes payable | American Assets Trust, L.P. | City Center Bellevue | ||
Debt Instrument [Line Items] | ||
Secured notes payable, Principal Balance | $ 111,000 | $ 111,000 |
Stated Interest Rate | 3.98% | |
Stated Maturity Date | Nov. 01, 2022 |
Debt Summary of Total Unsecured Notes Payable Outstanding (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 23, 2017 |
May 31, 2017 |
May 11, 2017 |
Apr. 25, 2017 |
Jan. 18, 2017 |
May 02, 2016 |
Apr. 07, 2016 |
Mar. 29, 2016 |
Mar. 23, 2016 |
Mar. 01, 2016 |
Jan. 29, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Jul. 19, 2017 |
May 23, 2017 |
Mar. 01, 2017 |
Jan. 09, 2014 |
||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Unsecured notes payable | $ 1,045,863 | $ 1,045,470 | ||||||||||||||||||||
American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Unsecured notes payable | $ 1,045,863 | 1,045,470 | ||||||||||||||||||||
American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fixed interest rate on derivative | 3.08% | |||||||||||||||||||||
Term of derivative contract | 7 years | 10 years | 10 years | 10 years | 7 years | |||||||||||||||||
American Assets Trust, L.P. | Forward Contracts | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Term of derivative contract | 1 month | |||||||||||||||||||||
Gain on derivatives | $ 700 | $ 10,400 | $ 1,600 | |||||||||||||||||||
Loss on derivatives | $ 500 | |||||||||||||||||||||
Effective interest rate (percent) | 3.88% | |||||||||||||||||||||
Term Loan A | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Unsecured notes payable | $ 100,000 | |||||||||||||||||||||
Term Loan A | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fixed interest rate on derivative | 4.13% | |||||||||||||||||||||
Term Loan B | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | ||||||||||||||||||||
Term Loan B | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fixed interest rate on derivative | 3.15% | |||||||||||||||||||||
Term Loan C | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | ||||||||||||||||||||
Term Loan C | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fixed interest rate on derivative | 3.14% | |||||||||||||||||||||
Senior Guaranteed Notes, Series F | American Assets Trust, L.P. | Forward Contracts | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Effective interest rate (percent) | 3.85% | |||||||||||||||||||||
Senior Guaranteed Notes, Series D | American Assets Trust, L.P. | Forward Contracts | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Effective interest rate (percent) | 3.87% | |||||||||||||||||||||
Senior Guaranteed Notes, Series E | American Assets Trust, L.P. | Forward Contracts | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Effective interest rate (percent) | 4.18% | |||||||||||||||||||||
Unsecured debt | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 1,050,000 | 1,050,000 | ||||||||||||||||||||
Debt issuance costs, net | (4,137) | (4,530) | ||||||||||||||||||||
Unsecured notes payable | 1,045,863 | 1,045,470 | ||||||||||||||||||||
Debt issuance costs, accumulated amortization | 6,844 | 5,866 | ||||||||||||||||||||
Unsecured debt | Term Loan A | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Stated Maturity Date | Jan. 09, 2019 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series A | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 150,000 | 150,000 | ||||||||||||||||||||
Stated Interest Rate | [1] | 4.04% | ||||||||||||||||||||
Stated Maturity Date | Oct. 31, 2021 | |||||||||||||||||||||
Unsecured debt | Term Loan B | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||||||||||||||||
Unsecured debt | Term Loan C | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 50,000 | 50,000 | ||||||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series F | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Stated Interest Rate | 3.78% | 3.78% | ||||||||||||||||||||
Stated Maturity Date | Jul. 19, 2024 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series B | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Stated Interest Rate | 4.45% | |||||||||||||||||||||
Stated Maturity Date | Feb. 02, 2025 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series C | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Stated Interest Rate | 4.50% | |||||||||||||||||||||
Stated Maturity Date | Apr. 01, 2025 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series D | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 250,000 | 250,000 | ||||||||||||||||||||
Stated Interest Rate | 4.29% | 4.29% | ||||||||||||||||||||
Stated Maturity Date | Mar. 01, 2027 | |||||||||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series E | American Assets Trust, L.P. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt | $ 100,000 | $ 100,000 | ||||||||||||||||||||
Stated Interest Rate | 4.24% | [2] | 4.24% | |||||||||||||||||||
Stated Maturity Date | May 23, 2029 | |||||||||||||||||||||
|
Debt Scheduled Principal Payments on Notes Payable (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2019 | $ 120,762 |
2020 | 51,003 |
2021 | 150,000 |
2022 | 111,000 |
2023 | 150,000 |
Thereafter | 650,000 |
Notes payable, total | $ 1,232,765 |
Debt (Details) |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 09, 2019
Extension_Option
|
Jan. 09, 2018
USD ($)
Extension_Option
|
Apr. 25, 2017 |
May 02, 2016
USD ($)
|
Mar. 23, 2016 |
Mar. 01, 2016
USD ($)
|
Jan. 29, 2016 |
Oct. 31, 2014
USD ($)
|
Jan. 09, 2014
USD ($)
Extension_Option
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jul. 19, 2017
USD ($)
|
May 23, 2017
USD ($)
|
Mar. 01, 2017
USD ($)
|
||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Interest Rate During Period | 3.20% | ||||||||||||||||
Unsecured line of credit | $ 62,337,000 | $ 0 | |||||||||||||||
Unsecured notes payable | 1,045,863,000 | 1,045,470,000 | |||||||||||||||
Unsecured line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum leverage ratio of revolving credit facility | 60.00% | ||||||||||||||||
Maximum secured leverage ratio on revolving credit facility | 40.00% | ||||||||||||||||
Minimum fixed charge coverage ratio covenant threshold | 1.5 | 1.5 | |||||||||||||||
Minimum interest coverage ratio covenant threshold | 175.00% | 175.00% | |||||||||||||||
Maximum unsecured leverage ratio (in percents) | 60.00% | ||||||||||||||||
Minimum tangible net worth | $ 721,160,000.00 | ||||||||||||||||
Percent of net proceeds of any additional equity issuances in relation to net proceeds as of Offering | 75.00% | ||||||||||||||||
Maximum recourse indebtedness of total asset value (in percents) | 15.00% | ||||||||||||||||
Percentage annual distributions cannot exceed funds from operations | 95.00% | ||||||||||||||||
Unsecured line of credit | Federal Funds Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.50% | 0.50% | |||||||||||||||
Unsecured line of credit | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.00% | 1.00% | |||||||||||||||
Term Loan B | Unsecured debt | Federal Funds Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on federal funds rate | 0.50% | 0.50% | |||||||||||||||
Term Loan B | Unsecured debt | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on Eurodollar rate | 0.10% | 1.00% | |||||||||||||||
Term Loan C | Unsecured debt | Federal Funds Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on federal funds rate | 0.50% | ||||||||||||||||
Term Loan C | Unsecured debt | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on Eurodollar rate | 0.10% | ||||||||||||||||
American Assets Trust, L.P. | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured line of credit | 62,337,000 | 0 | |||||||||||||||
Unsecured notes payable | 1,045,863,000 | 1,045,470,000 | |||||||||||||||
American Assets Trust, L.P. | Unsecured line of credit | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | base rate | ||||||||||||||||
American Assets Trust, L.P. | Unsecured line of credit | Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of extensions available | Extension_Option | 2 | ||||||||||||||||
Extension term (in months) | 6 months | ||||||||||||||||
American Assets Trust, L.P. | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured notes payable | $ 1,045,863,000 | $ 1,045,470,000 | |||||||||||||||
American Assets Trust, L.P. | Term Loan A | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured notes payable | $ 100,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Term Loan A | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated Maturity Date | Jan. 09, 2019 | ||||||||||||||||
American Assets Trust, L.P. | Term Loan B | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of year amortization schedule | 7 years | 7 years | |||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Minimum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.70% | 0.70% | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Maximum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.35% | 1.35% | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | ||||||||||||||||
American Assets Trust, L.P. | Term Loan B | Unsecured debt | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | LIBOR | LIBOR | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Unsecured debt | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Minimum base rate | 0.00% | 0.00% | |||||||||||||||
Prime rate | prime rate | prime rate | |||||||||||||||
Federal funds rate | federal funds rate | federal funds rate | |||||||||||||||
Eurodollar | Eurodollar | Eurodollar | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Unsecured debt | Minimum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.20% | 1.70% | |||||||||||||||
American Assets Trust, L.P. | Term Loan B | Unsecured debt | Maximum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.70% | 2.35% | |||||||||||||||
American Assets Trust, L.P. | Term Loan B & Term Loan C | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 150,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Term Loan C | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of year amortization schedule | 7 years | 7 years | |||||||||||||||
Face amount of debt | $ 50,000,000 | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Minimum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.70% | 0.70% | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Maximum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.35% | 1.35% | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 50,000,000 | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | ||||||||||||||||
American Assets Trust, L.P. | Term Loan C | Unsecured debt | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | LIBOR | LIBOR | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Unsecured debt | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Minimum base rate | 0.00% | 0.00% | |||||||||||||||
Prime rate | prime rate | prime rate | |||||||||||||||
Federal funds rate | federal funds rate | federal funds rate | |||||||||||||||
Eurodollar | Eurodollar | Eurodollar | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Unsecured debt | Minimum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.20% | 1.70% | |||||||||||||||
American Assets Trust, L.P. | Term Loan C | Unsecured debt | Maximum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.70% | 2.35% | |||||||||||||||
American Assets Trust, L.P. | Note Purchase Agreement | Senior Guaranteed Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 350,000,000 | ||||||||||||||||
Partial debt repayment, minimum percentage of principal (in percent) | 5.00% | ||||||||||||||||
Full debt repayment percentage of principal plus a Make-Whole Amount (in percent) | 100.00% | ||||||||||||||||
American Assets Trust, L.P. | Note Purchase Agreement | Senior Guaranteed Notes, Series A | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 150,000,000 | ||||||||||||||||
Stated Interest Rate | 4.04% | ||||||||||||||||
American Assets Trust, L.P. | Note Purchase Agreement | Senior Guaranteed Notes, Series B | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Interest Rate | 4.45% | ||||||||||||||||
American Assets Trust, L.P. | Note Purchase Agreement | Senior Guaranteed Notes, Series C | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Interest Rate | 4.50% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | 350,000,000 | ||||||||||||||||
Allowable additional borrowing capacity | $ 250,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Minimum | Revolving Credit Facility | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.35% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Maximum | Revolving Credit Facility | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.95% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured line of credit | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Prime rate | prime rate | ||||||||||||||||
Federal funds rate | federal funds rate | ||||||||||||||||
Eurodollar | Eurodollar | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured line of credit | Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 250,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured line of credit | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | LIBOR | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured line of credit | Minimum | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.35% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured line of credit | Maximum | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.95% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||
Number of extensions available | Extension_Option | 3 | ||||||||||||||||
Extension term (in months) | 12 months | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured debt | Minimum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.30% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured debt | Minimum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.30% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured debt | Maximum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.90% | ||||||||||||||||
American Assets Trust, L.P. | Amended and Restated Credit Facility | Unsecured debt | Maximum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.90% | ||||||||||||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series D | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 250,000,000 | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2027 | ||||||||||||||||
Stated Interest Rate | 4.29% | 4.29% | |||||||||||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series E | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of year amortization schedule | 12 years | ||||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Maturity Date | May 23, 2029 | ||||||||||||||||
Stated Interest Rate | 4.24% | [1] | 4.24% | ||||||||||||||
American Assets Trust, L.P. | Senior Guaranteed Notes, Series F | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||||
Stated Maturity Date | Jul. 19, 2024 | ||||||||||||||||
Stated Interest Rate | 3.78% | 3.78% | |||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 450,000,000 | ||||||||||||||||
Allowable additional borrowing capacity | $ 350,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured line of credit | $ 64,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Prime rate | prime rate | ||||||||||||||||
Federal funds rate | federal funds rate | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 350,000,000 | ||||||||||||||||
Number of extensions available | Extension_Option | 2 | ||||||||||||||||
Extension term (in months) | 6 months | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | LIBOR | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Minimum | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.05% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Minimum | Revolving Credit Facility | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.10% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Maximum | Revolving Credit Facility | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.50% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured line of credit | Maximum | Revolving Credit Facility | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.50% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility borrowing limit, maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured debt | Minimum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.30% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured debt | Minimum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.30% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured debt | Maximum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.90% | ||||||||||||||||
American Assets Trust, L.P. | Second Amended and Restated Credit Facility | Unsecured debt | Maximum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.90% | ||||||||||||||||
Interest Rate Swap | American Assets Trust, L.P. | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fixed interest rate on derivative | 3.08% | ||||||||||||||||
Interest Rate Swap | American Assets Trust, L.P. | Term Loan A | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fixed interest rate on derivative | 4.13% | ||||||||||||||||
Interest Rate Swap | American Assets Trust, L.P. | Term Loan B | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fixed interest rate on derivative | 3.15% | ||||||||||||||||
Interest Rate Swap | American Assets Trust, L.P. | Term Loan C | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fixed interest rate on derivative | 3.14% | ||||||||||||||||
Subsequent Event | Term Loan A | Unsecured debt | Federal Funds Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on federal funds rate | 0.50% | ||||||||||||||||
Subsequent Event | Term Loan A | Unsecured debt | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on Eurodollar rate | 1.00% | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Minimum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.20% | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Maximum | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 0.70% | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Unsecured debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of extensions available | Extension_Option | 3 | ||||||||||||||||
Extension term (in months) | 1 year | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Unsecured debt | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate basis | LIBOR | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Unsecured debt | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Prime rate | prime rate | ||||||||||||||||
Federal funds rate | federal funds rate | ||||||||||||||||
Eurodollar | Eurodollar | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Unsecured debt | Minimum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.20% | ||||||||||||||||
Subsequent Event | American Assets Trust, L.P. | Term Loan A | Unsecured debt | Maximum | LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate (in percents) | 1.70% | ||||||||||||||||
|
Derivative and Hedging (Details) - USD ($) |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 09, 2018 |
Jun. 23, 2017 |
May 31, 2017 |
May 11, 2017 |
Apr. 25, 2017 |
Mar. 31, 2017 |
Jan. 18, 2017 |
May 02, 2016 |
Apr. 07, 2016 |
Mar. 29, 2016 |
Mar. 23, 2016 |
Mar. 01, 2016 |
Jan. 29, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
May 23, 2017 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Derivative liabilities at fair value | $ (801,000) | $ (10,000) | ||||||||||||||
Interest rate swap asset | $ 6,002,000 | $ 5,091,000 | ||||||||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | $ 150,000,000 | ||||||||||||||
Fixed interest rate on derivative | 1.748% | 1.88% | ||||||||||||||
American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Fixed interest rate on derivative | 3.08% | |||||||||||||||
Term of derivative contract | 7 years | 10 years | 10 years | 10 years | 7 years | |||||||||||
American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 50,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||||||||
Fixed interest rate on derivative | 1.441% | 1.4485% | 3.08% | |||||||||||||
Term of derivative contract | 7 years | 7 years | ||||||||||||||
Maturity date | Mar. 31, 2027 | Mar. 31, 2027 | Mar. 01, 2023 | Mar. 01, 2023 | ||||||||||||
Effective date | Mar. 31, 2017 | Mar. 31, 2017 | May 02, 2016 | Mar. 01, 2016 | ||||||||||||
Loss recognized in other comprehensive income (loss) | $ 10,400,000 | |||||||||||||||
American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Treasury Lock | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | $ 100,000,000 | ||||||||||||||
Fixed interest rate on derivative | 2.064% | 2.313% | ||||||||||||||
Maturity date | Jul. 26, 2017 | |||||||||||||||
Loss recognized in other comprehensive income (loss) | $ 500,000 | $ 700,000 | ||||||||||||||
Bank of America, N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 1/9/2019 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | |||||||||||||||
Maturity date | Jan. 09, 2019 | |||||||||||||||
Effective date | Jan. 09, 2014 | |||||||||||||||
Interest rate swap asset | $ 18,000 | |||||||||||||||
Bank of America, N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 1/9/2021 [Member] | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | |||||||||||||||
Maturity date | Jan. 09, 2021 | |||||||||||||||
Effective date | Jan. 09, 2019 | |||||||||||||||
Derivative liabilities at fair value | $ (801,000) | |||||||||||||||
U.S. Bank N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 3/1/2023 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | |||||||||||||||
Maturity date | Mar. 01, 2023 | |||||||||||||||
Effective date | Mar. 01, 2016 | |||||||||||||||
Interest rate swap asset | $ 3,976,000 | |||||||||||||||
Wells Fargo Bank, N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 3/31/2027 $150M | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 150,000,000 | |||||||||||||||
Wells Fargo Bank, N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 3/31/2027 $100M | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 100,000,000 | |||||||||||||||
Wells Fargo Bank, N.A. | American Assets Trust, L.P. | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap, 3/1/2023 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Notional amount | $ 50,000,000 | |||||||||||||||
Maturity date | Mar. 01, 2023 | |||||||||||||||
Effective date | May 02, 2016 | |||||||||||||||
Interest rate swap asset | $ 2,008,000 | |||||||||||||||
Term Loan B | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | ||||||||||||||
Face amount of debt | $ 100,000,000 | |||||||||||||||
Number of year amortization schedule | 7 years | 7 years | ||||||||||||||
Term Loan B | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Fixed interest rate on derivative | 3.15% | |||||||||||||||
Term Loan C | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | Mar. 01, 2023 | ||||||||||||||
Face amount of debt | $ 50,000,000 | |||||||||||||||
Number of year amortization schedule | 7 years | 7 years | ||||||||||||||
Term Loan C | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Fixed interest rate on derivative | 3.14% | |||||||||||||||
Unsecured debt | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Number of year amortization schedule | 10 years | |||||||||||||||
Term Loan A | American Assets Trust, L.P. | Interest Rate Swap | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Fixed interest rate on derivative | 4.13% | |||||||||||||||
Unsecured debt | Term Loan B | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||||||||||
Face amount of debt | $ 100,000,000 | |||||||||||||||
Unsecured debt | Term Loan C | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | Mar. 01, 2023 | |||||||||||||||
Face amount of debt | $ 50,000,000 | |||||||||||||||
Unsecured debt | Senior Guaranteed Notes, Series E | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | May 23, 2029 | |||||||||||||||
Face amount of debt | $ 100,000,000 | |||||||||||||||
Number of year amortization schedule | 12 years | |||||||||||||||
Unsecured debt | Term Loan A | American Assets Trust, L.P. | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||
Stated Maturity Date | Jan. 09, 2019 |
Partners Capital of American Assets Trust, L.P. (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Capital Unit [Line Items] | |||
Ownership percent by parent | 73.20% | ||
Common Stock | |||
Capital Unit [Line Items] | |||
Conversion of operating partnership units (in shares) | 17,372 | 693,842 | 10,694 |
American Assets Trust, L.P. | |||
Capital Unit [Line Items] | |||
Noncontrolling common units (in shares) | 17,177,608 | ||
Percentage of ownership interests classified as noncontrolling | 26.80% | ||
American Assets Trust, L.P. | Common Stock | |||
Capital Unit [Line Items] | |||
Conversion of operating partnership units (in shares) | 17,372 | 693,842 | 10,694 |
Equity of American Assets Trust, Inc. (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
May 27, 2015
USD ($)
Agent
|
May 06, 2013
USD ($)
Agent
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Dec. 31, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
|
Equity [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 10,000,000 | ||||
Preferred stock, par-value (in dollars per share) | $ / shares | $ 0.01 | ||||
Preferred stock, shares issued (in shares) | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | ||||
Equity incentive award plan, common stock authorized for issuance (in shares) | 4,054,411 | ||||
Equity incentive award plan, common stock available for future issuance (in shares) | 2,595,189 | ||||
Noncash compensation expense | $ | $ 3,000,000 | $ 4,700,000 | $ 2,400,000 | ||
Unrecognized compensation expense | $ | $ 6,500,000 | ||||
Weighted average unvested shares outstanding (in shares) | 271,905 | 230,602 | 176,408 | ||
American Assets Trust, L.P. | |||||
Equity [Line Items] | |||||
Antidilutive securities excluded from computation of EPS (in shares) | 271,905 | 230,602 | 176,408 | ||
Restricted Stock | |||||
Equity [Line Items] | |||||
Unrecognized compensation expense, weighted-average recognition period (in years) | 1 year 7 months 10 days | ||||
At The Market Equity Program | |||||
Equity [Line Items] | |||||
Aggregate offering price of common share | $ | $ 250,000,000.0 | $ 150,000,000.0 | |||
Common shares issued (in shares) | 0 | ||||
Remaining capacity available for issuance | $ | $ 176,200,000 | ||||
$150.0 Million ATM | At The Market Equity Program | |||||
Equity [Line Items] | |||||
Number of sales agents | Agent | 4 | ||||
$250.0 Million ATM | At The Market Equity Program | |||||
Equity [Line Items] | |||||
Number of sales agents | Agent | 5 |
Equity of American Assets Trust, Inc. Dividends Declared and Paid on Shares of Common Stock and Noncontrolling Common Units (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Equity [Abstract] | |||||||||||||||
Dividends period | Fourth Quarter 2018 | Third Quarter 2018 | Second Quarter 2018 | First Quarter 2018 | Fourth Quarter 2017 | Third Quarter 2017 | Second Quarter 2017 | First Quarter 2017 | Fourth Quarter 2016 | Third Quarter 2016 | Second Quarter 2016 | First Quarter 2016 | |||
Amount per Share/Unit (in USD per unit) | $ 0.28 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1.09 | $ 1.05 | $ 1.01 |
Date dividend to be paid | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 19, 2018 | Dec. 21, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 24, 2016 | Mar. 25, 2016 |
Equity of American Assets Trust, Inc. Summary of Income Tax Status of Dividends Per Share Paid (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Equity [Abstract] | |||||||||||||||
Ordinary income (in USD per share) | $ 1.05 | $ 1.05 | $ 1.01 | ||||||||||||
Capital gain (in USD per share) | 0.00 | 0.00 | 0.00 | ||||||||||||
Return of capital (in USD per share) | 0.04 | 0.00 | 0.00 | ||||||||||||
Total (in USD per share) | $ 0.28 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1.09 | $ 1.05 | $ 1.01 |
Ordinary income | 96.30% | 100.00% | 100.00% | ||||||||||||
Capital gain | 0.00% | 0.00% | 0.00% | ||||||||||||
Return of capital | 3.70% | 0.00% | 0.00% | ||||||||||||
Total | 100.00% | 100.00% | 100.00% |
Equity of American Assets Trust, Inc. Restricted Common Stock Issued (Details) - Restricted Stock - $ / shares |
Dec. 06, 2018 |
Jun. 12, 2018 |
[1] | Dec. 15, 2017 |
Jun. 13, 2017 |
[1] | Dec. 01, 2016 |
Jun. 14, 2016 |
[1] | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Award vesting percentage | 33.30% | 33.30% | |||||||||||||||||
Granted, Weighted Average Grant Date Fair Value (in USD per share) | $ 37.58 | $ 27.27 | $ 40.99 | $ 40.81 | |||||||||||||||
Granted, Shares | 199,790 | [2] | 5,320 | 145,218 | [2] | 4,880 | 143,210 | [3] | 4,900 | ||||||||||
Minimum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted, Weighted Average Grant Date Fair Value (in USD per share) | [2] | $ 25.68 | $ 28.24 | ||||||||||||||||
Maximum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted, Weighted Average Grant Date Fair Value (in USD per share) | [2] | $ 28.18 | $ 35.71 | ||||||||||||||||
|
Equity of American Assets Trust, Inc. Summary of Activity of Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) |
12 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
shares
| |
Nonvested, Number of Shares | |
Nonvested, Beginning, Shares | shares | 268,768 |
Granted, Shares | shares | 205,110 |
Vested, Shares | shares | (52,810) |
Forfeited, Shares | shares | (78,975) |
Nonvested, Ending, Shares | shares | 342,093 |
Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested, Beginning, Weighted Average Grant Date Fair Value (in USD per Share) | $ / shares | $ 29.89 |
Granted, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 27.25 |
Vested, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 30.04 |
Forfeited, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | 29.70 |
Nonvested, End of Year, Weighted Average Grant Date Fair Value (in USD per Share) | $ / shares | $ 28.33 |
Equity of American Assets Trust, Inc. Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
NUMERATOR | |||||||||||
Net income from operations | $ 27,202 | $ 40,132 | $ 45,637 | ||||||||
Less: Net income attributable to restricted shares | $ (96) | $ (71) | $ (216) | $ 72 | $ (60) | $ (60) | $ (61) | $ (60) | (311) | (241) | (189) |
Less: Income from operations attributable to unitholders in the Operating Partnership | 7,205 | 10,814 | 12,863 | ||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ 6,673 | $ 10,394 | $ 3,072 | $ (453) | $ 7,077 | $ 9,094 | $ 5,519 | $ 7,387 | 19,686 | 29,077 | 32,585 |
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | 19,686 | 29,077 | 32,585 | ||||||||
Plus: Income from operations attributable to unitholders in the Operating Partnership | (7,205) | (10,814) | (12,863) | ||||||||
Net income attributable to common stockholders-diluted | $ 26,891 | $ 39,891 | $ 45,448 | ||||||||
DENOMINATOR | |||||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 46,950,812 | 46,715,520 | 45,332,471 | ||||||||
Effect of dilutive securities-conversion of Operating Partnership units (in shares) | 17,185,747 | 17,371,730 | 17,895,688 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 64,136,559 | 64,087,250 | 63,228,159 | ||||||||
Earnings (loss) per common share-basic | |||||||||||
Basic net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 | ||||||||
Earnings (loss) per common share-diluted | |||||||||||
Diluted net income attributable to common stockholders per share (in dollars per share) | $ 0.42 | $ 0.62 | $ 0.72 |
Income Taxes (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax liabilities | $ 93 | $ 123 |
Income Taxes Income Tax Provision Included in Other Income Expense on Consolidated Statement of Operations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Statement [Abstract] | |||
Federal | $ 60 | $ 0 | $ 132 |
State | 465 | 422 | 341 |
Federal | (6) | 0 | 0 |
State | (192) | (208) | 93 |
Provision for income taxes | $ 327 | $ 214 | $ 566 |
Commitments and Contingencies (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
Property
mo
Customer
OptionPlan
|
Dec. 31, 2017 |
|
Commitment And Contingencies [Line Items] | ||
Termination payment, as high as | $ | $ 7.6 | |
Transfer taxes accrued in connection with the Offering | $ | $ 6.6 | |
Maximum percentage of total revenue provided by any single tenant | 10.00% | 10.00% |
Southern California | ||
Commitment And Contingencies [Line Items] | ||
Number of consolidated properties located in Southern California | Property | 14 | |
Total Revenue | Southern California | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 33.60% | |
Total Revenue | Hawaii | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 18.80% | |
Rental Income | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 8.80% | |
Number of tenants that comprise 9.7% of total annualized based rent | Customer | 3 | |
Total Revenues | Retail industry | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 31.90% | 33.00% |
Total Revenues | Office industry | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 34.00% | 33.60% |
Base Rent | salesforce.com, inc. | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 8.20% | |
Alamo Quarry Market and Waikele Center | Total Revenue | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 11.70% | 13.20% |
Maximum | Tenants | ||
Commitment And Contingencies [Line Items] | ||
Percentage of total revenue provided by properties | 2.00% | |
Maximum | Del Monte Center | Ground Water Contamination | ||
Commitment And Contingencies [Line Items] | ||
Environmental remediation monitoring period | 7 years | |
Minimum | Del Monte Center | Ground Water Contamination | ||
Commitment And Contingencies [Line Items] | ||
Environmental remediation monitoring period | 5 years | |
The Land Mark at One Market | ||
Commitment And Contingencies [Line Items] | ||
Number of lease extension options | OptionPlan | 2 | |
Years, lease extension options length | 5 years | |
Waikiki Beach Walk - Retail | ||
Commitment And Contingencies [Line Items] | ||
Property management fee, percent | 3.00% | |
Outrigger Hotels | ||
Commitment And Contingencies [Line Items] | ||
Property management fee, percent | 6.00% | |
Number of calendar months termination fee is based | 2 months | |
Maximum percentage of hotel's fiscal year gross revenues paid for aggregate yearly management fee | 3.50% | |
Previous months of management fees | 12 months | |
Hotel management agreement default penalty factor of previous twelve months of management fees in first 11 years of term | 8 | |
Years in hotel management agreement term | 11 years | |
Hotel management agreement default penalty factor of previous twelve months of management fees in twelfth year of term | 4 | |
Hotel management agreement default penalty factor of previous twelve months of management fees in thirteenth year of term | 3 | |
Hotel management agreement default penalty factor of previous twelve months of management fees in fourteenth year of term | 2 | |
Hotel management agreement default penalty factor of previous twelve months of management fees in fifteenth year of term | 1 | |
Outrigger Hotels | Year of Agreement, 12th | ||
Commitment And Contingencies [Line Items] | ||
Years in hotel management agreement term | 15 years | |
Outrigger Hotels | Year of Agreement, 13th | ||
Commitment And Contingencies [Line Items] | ||
Years in hotel management agreement term | 14 years | |
Outrigger Hotels | Year of Agreement, 14th | ||
Commitment And Contingencies [Line Items] | ||
Years in hotel management agreement term | 13 years | |
Outrigger Hotels | Year of Agreement, 15th | ||
Commitment And Contingencies [Line Items] | ||
Years in hotel management agreement term | 12 years | |
Outrigger Hotels | Maximum | ||
Commitment And Contingencies [Line Items] | ||
Property management fee, percent | 3.00% | |
Wbw Hotel Lessee Llc | ||
Commitment And Contingencies [Line Items] | ||
Years of contract | 20 years | |
Percentage of hotel occupancy gross revenue paid for program fee | 4.00% | |
Wbw Hotel Lessee Llc | Future Time Period Prior to 12-31-2021 | ||
Commitment And Contingencies [Line Items] | ||
Percentage of hotel occupancy gross revenue paid for franchise royalty fee | 4.00% | |
Wbw Hotel Lessee Llc | Future Time Period After 12-31-2021 | ||
Commitment And Contingencies [Line Items] | ||
Percentage of hotel occupancy gross revenue paid for franchise royalty fee | 5.00% |
Commitments and Contingencies Current Minimum Annual Payments under Leases (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2018 |
---|---|---|
Operating Leased Assets [Line Items] | ||
2019 | $ 3,347,000 | |
2020 | 3,422,000 | |
2021 | 2,153,000 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | $ 8,922,000 | |
Scenario, Forecast | The Land Mark at One Market | ||
Operating Leased Assets [Line Items] | ||
Stated monthly lease rate | $ 217,744 |
Operating Leases (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
State
Property
mo
| |
Operating Leased Assets [Line Items] | |
Number of states where retail, office and mixed-use properties are located | State | 5 |
Number of office, retail, and multifamily operating leases | 27 |
Years, minimum term range of office and retail leases | 3 years |
Years, maximum term range of office and retail leases | 10 years |
Months, minimum term of apartment leases | 7 months |
Months, maximum term of apartment leases | 15 months |
Future minimum rentals term, maximum | mo | 12 |
Retail Or Office | |
Operating Leased Assets [Line Items] | |
Number of office, retail, and multifamily operating leases | 811 |
Residential Property | |
Operating Leased Assets [Line Items] | |
Number of office, retail, and multifamily operating leases | 1,866 |
Operating Leases Minimum Future Rentals from Noncancelable Operating Leases (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Leases, Operating [Abstract] | |
2019 | $ 177,144 |
2020 | 172,821 |
2021 | 157,611 |
2022 | 138,787 |
2023 | 116,985 |
Thereafter | 412,934 |
Total | $ 1,176,282 |
Component of Rental Income and Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Leases, Income Statement, Lease Revenue [Abstract] | |||
Recognition of straight-line rents | $ (2.4) | $ (0.8) | $ (0.8) |
Recognition of amortization of above and below market leases | $ 3.6 | $ 3.3 | $ 3.5 |
Component of Rental Income and Expense Components of Rental Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Rental Income [Line Items] | |||
Cost reimbursement | $ 34,584 | $ 34,267 | $ 33,610 |
Percentage rent | 3,149 | 3,214 | 3,096 |
Hotel revenue | 40,049 | 39,545 | 39,371 |
Other | 1,611 | 1,667 | 1,512 |
Total rental income | 309,537 | 298,803 | 279,498 |
Total Retail | |||
Rental Income [Line Items] | |||
Minimum rents | 77,147 | 76,201 | 74,050 |
Total Office | |||
Rental Income [Line Items] | |||
Minimum rents | 95,081 | 93,128 | 90,281 |
Total Multifamily | |||
Rental Income [Line Items] | |||
Minimum rents | 46,897 | 40,217 | 26,962 |
Total Mixed-Use | |||
Rental Income [Line Items] | |||
Minimum rents | $ 11,019 | $ 10,564 | $ 10,616 |
Component of Rental Income and Expense Components of Rental Expenses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Leases, Income Statement, Lease Revenue [Abstract] | |||
Rental operating | $ 37,322 | $ 34,944 | $ 31,709 |
Hotel operating | 24,030 | 24,254 | 23,607 |
Repairs and maintenance | 13,486 | 13,136 | 12,705 |
Marketing | 2,108 | 2,053 | 2,117 |
Rent | 3,216 | 3,119 | 2,925 |
Hawaii excise tax | 4,333 | 4,454 | 4,511 |
Management fees | 1,987 | 2,046 | 1,979 |
Total rental expenses | $ 86,482 | $ 84,006 | $ 79,553 |
Other Income (Expenses) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Other Income and Expenses [Abstract] | |||
Interest and investment income | $ 238 | $ 548 | $ 72 |
Income tax expense | (327) | (214) | (566) |
Other non-operating income | 4 | 0 | 126 |
Total other income (expense) | $ (85) | $ 334 | $ (368) |
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jul. 01, 2017 |
Jul. 01, 2016 |
Jul. 01, 2015 |
Jul. 01, 2014 |
|
Related Party Transaction [Line Items] | |||||||
Total rental income | $ 309,537 | $ 298,803 | $ 279,498 | ||||
Investment in WBW CHP LLC, in percentage | 47.70% | ||||||
WBW CHP LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Recovered reimbursements of operating expenses of WBW CHP LLC | $ 1,100 | $ 1,000 | $ 900 | ||||
Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Common shares issued (in shares) | 700,000 | 219,480 | |||||
Insurance Company of the West, Inc. | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Total rental income | $ 100 | $ 100 | $ 2,200 | ||||
Prepaid insurance | $ 200 | $ 200 | $ 200 | $ 400 | |||
Percentage of ownership interests classified as noncontrolling | 37.00% | ||||||
Insurance Company of the West, Inc. | Common Stock | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership interests classified as noncontrolling | 14.00% | ||||||
Insurance Company of the West, Inc. | Member Units | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership interests classified as noncontrolling | 23.10% | ||||||
American Assets, Inc. | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Total rental income | $ 100 | ||||||
EDisability, LLC | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Total rental income | 100 | ||||||
AAI Aviation, Inc. | Board of Directors Chairman | |||||||
Related Party Transaction [Line Items] | |||||||
Aviation expense | $ 100 | $ 100 | $ 200 |
Segment Reporting (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
Segment
Room
| |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 4 |
Rooms in mixed-use segment all-suite hotel | Room | 369 |
Segment Reporting Operating Activity Within Reportable Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||||||||||||
Operating income (loss) | $ 22,091 | $ 27,275 | $ 17,249 | $ 12,920 | $ 23,792 | $ 26,477 | $ 20,048 | $ 23,329 | $ (3,670) | $ 79,535 | $ 93,646 | $ 97,941 |
Total segments' profit | 209,412 | 198,306 | 187,157 | |||||||||
Total Retail | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 105,552 | 103,968 | 100,982 | |||||||||
Property expense | (30,078) | (28,524) | (27,934) | |||||||||
Operating income (loss) | 75,474 | 75,444 | 73,048 | |||||||||
Total Office | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 112,362 | 105,694 | 103,254 | |||||||||
Property expense | (33,860) | (33,120) | (31,839) | |||||||||
Operating income (loss) | 78,502 | 72,574 | 71,415 | |||||||||
Total Multifamily | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 50,627 | 43,533 | 29,188 | |||||||||
Property expense | (20,441) | (17,898) | (12,498) | |||||||||
Operating income (loss) | 30,186 | 25,635 | 16,690 | |||||||||
Total Mixed-Use | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 62,326 | 61,788 | 61,664 | |||||||||
Property expense | (37,076) | (37,135) | (35,660) | |||||||||
Operating income (loss) | $ 25,250 | $ 24,653 | $ 26,004 |
Segment Reporting Reconciliation of Segment Profit to Net Income Attributable to Stockholders (Details) - USD ($) $ in Thousands |
3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting [Abstract] | ||||||||||||
Total segments' profit | $ 209,412 | $ 198,306 | $ 187,157 | |||||||||
General and administrative | (22,784) | (21,382) | (17,897) | |||||||||
Depreciation and amortization | (107,093) | (83,278) | (71,319) | |||||||||
Interest expense | 52,248 | 53,848 | 51,936 | |||||||||
Other income (expense), net | (85) | 334 | (368) | |||||||||
Net income | $ 9,209 | $ 14,271 | $ 4,413 | $ (691) | $ 9,731 | $ 12,505 | $ 7,588 | $ 10,308 | $ (3,670) | 27,202 | 40,132 | 45,637 |
Net income attributable to restricted shares | (96) | (71) | (216) | 72 | (60) | (60) | (61) | (60) | (311) | (241) | (189) | |
Net income attributable to unitholders in the Operating Partnership | (2,440) | (3,806) | (1,125) | 166 | (2,594) | (3,351) | (2,008) | (2,861) | (7,205) | (10,814) | (12,863) | |
Net income attributable to American Assets Trust, Inc. stockholders | $ 6,673 | $ 10,394 | $ 3,072 | $ (453) | $ 7,077 | $ 9,094 | $ 5,519 | $ 7,387 | $ 19,686 | $ 29,077 | $ 32,585 |
Segment Reporting Net Real Estate and Secured Note Payable Balances for Each Segment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | $ 2,039,853 | $ 2,076,707 | |||||
Secured Notes Payable | [1] | 182,765 | 279,889 | ||||
Capital Expenditures and Leasing Commissions | [2] | 64,347 | 52,423 | ||||
Total Retail | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | 628,734 | 658,654 | |||||
Secured Notes Payable | 35,008 | 35,737 | |||||
Capital Expenditures and Leasing Commissions | 14,219 | 10,412 | |||||
Total Office | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | 822,574 | 813,121 | |||||
Secured Notes Payable | 147,757 | 170,408 | |||||
Capital Expenditures and Leasing Commissions | 45,192 | 35,023 | |||||
Total Multifamily | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | 412,042 | 424,044 | |||||
Secured Notes Payable | 0 | 73,744 | |||||
Capital Expenditures and Leasing Commissions | 3,659 | 6,318 | |||||
Total Mixed-Use | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | 176,503 | 180,888 | |||||
Secured Notes Payable | 0 | 0 | |||||
Capital Expenditures and Leasing Commissions | 1,277 | 670 | |||||
American Assets Trust, L.P. | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Real Estate | 2,039,853 | 2,076,707 | |||||
Secured notes payable | American Assets Trust, L.P. | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt Issuance Costs, Net | $ 193 | $ 339 | |||||
|
Quarterly Financial Information (Unaudited) Selected Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information [Line Items] | ||||||||||||
Total revenue | $ 82,605 | $ 82,507 | $ 85,023 | $ 80,732 | $ 81,746 | $ 82,339 | $ 77,106 | $ 73,792 | $ 12,650 | $ 330,867 | $ 314,983 | $ 295,088 |
Operating income (loss) | 22,091 | 27,275 | 17,249 | 12,920 | 23,792 | 26,477 | 20,048 | 23,329 | (3,670) | 79,535 | 93,646 | 97,941 |
Net income | 9,209 | 14,271 | 4,413 | (691) | 9,731 | 12,505 | 7,588 | 10,308 | $ (3,670) | 27,202 | 40,132 | 45,637 |
Net income attributable to restricted shares | (96) | (71) | (216) | 72 | (60) | (60) | (61) | (60) | (311) | (241) | (189) | |
Net income attributable to unitholders in the Operating Partnership | (2,440) | (3,806) | (1,125) | 166 | (2,594) | (3,351) | (2,008) | (2,861) | (7,205) | (10,814) | (12,863) | |
Net income attributable to American Assets Trust, Inc. stockholders | $ 6,673 | $ 10,394 | $ 3,072 | $ (453) | $ 7,077 | $ 9,094 | $ 5,519 | $ 7,387 | 19,686 | 29,077 | 32,585 | |
Net income attributable to common stockholders - basic and diluted (in dollars per share) | $ 0.14 | $ 0.22 | $ 0.07 | $ (0.01) | $ 0.15 | $ 0.19 | $ 0.12 | $ 0.16 | ||||
American Assets Trust, L.P. | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Total revenue | $ 82,605 | $ 82,507 | $ 85,023 | $ 80,732 | $ 81,746 | $ 82,339 | $ 77,106 | $ 73,792 | 330,867 | 314,983 | 295,088 | |
Operating income (loss) | 22,091 | 27,275 | 17,249 | 12,920 | 23,792 | 26,477 | 20,048 | 23,329 | 79,535 | 93,646 | 97,941 | |
Net income | 9,209 | 14,271 | 4,413 | (691) | 9,731 | 12,505 | 7,588 | 10,308 | 27,202 | 40,132 | 45,637 | |
Net income attributable to restricted shares | (96) | (71) | (216) | 72 | (60) | (60) | (61) | (60) | (311) | (241) | (189) | |
Net income attributable to American Assets Trust, Inc. stockholders | $ 26,891 | $ 39,891 | $ 45,448 | |||||||||
Net income attributable to American Assets Trust, L.P. unit holders | $ 9,113 | $ 14,200 | $ 4,197 | $ (619) | $ 9,671 | $ 12,445 | $ 7,527 | $ 10,248 | ||||
Net income attributable to common stockholders - basic and diluted (in dollars per share) | $ 0.14 | $ 0.22 | $ 0.07 | $ (0.01) | $ 0.15 | $ 0.19 | $ 0.12 | $ 0.16 |
Subsequent Events (Details) - Subsequent Event $ in Millions |
Jan. 23, 2019
USD ($)
|
Jan. 09, 2019
Extension_Option
|
---|---|---|
Subsequent Event [Line Items] | ||
Lease termination fee | $ | $ 4.4 | |
Unsecured debt | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Number of extensions available | Extension_Option | 3 | |
Extension term (in months) | 1 year | |
LIBOR | Unsecured debt | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Variable rate basis | LIBOR | |
Base Rate | Unsecured debt | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Prime rate | prime rate | |
Federal funds rate | federal funds rate | |
Eurodollar | Eurodollar | |
Federal Funds Rate | Unsecured debt | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on federal funds rate | 0.50% | |
Eurodollar | Unsecured debt | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on Eurodollar rate | 1.00% | |
Minimum | LIBOR | Unsecured debt | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (in percents) | 1.20% | |
Minimum | Base Rate | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (in percents) | 0.20% | |
Maximum | LIBOR | Unsecured debt | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (in percents) | 1.70% | |
Maximum | Base Rate | American Assets Trust, L.P. | Term Loan A | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (in percents) | 0.70% |
SCHEDULE III-Consolidated Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 182,765 | |||
Initial Cost, Land | 518,672 | |||
Initial Cost, Building and Improvements | 1,391,485 | |||
Cost Capitalized Subsequent to Acquisition | 720,034 | |||
Gross Carrying Amount, Land | 555,630 | |||
Gross Carrying Amount, Building and Improvements | 2,074,561 | |||
Accumulated Depreciation and Amortization | (590,338) | $ (537,431) | $ (469,460) | $ (411,166) |
The aggregate tax basis for Federal tax purposes | 1,900,000 | |||
Alamo Quarry Market | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | 0 | |||
Initial Cost, Land | 26,396 | |||
Initial Cost, Building and Improvements | 109,294 | |||
Cost Capitalized Subsequent to Acquisition | 17,370 | |||
Gross Carrying Amount, Land | 26,816 | |||
Gross Carrying Amount, Building and Improvements | 126,244 | |||
Accumulated Depreciation and Amortization | $ (57,885) | |||
Year Built/ Renovated | 1997/1999 | |||
Date Acquired | Dec. 09, 2003 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Carmel Country Plaza | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 4,200 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 12,806 | |||
Gross Carrying Amount, Land | 4,200 | |||
Gross Carrying Amount, Building and Improvements | 12,806 | |||
Accumulated Depreciation and Amortization | $ (8,251) | |||
Year Built/ Renovated | 1991 | |||
Date Acquired | Jan. 10, 1989 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Carmel Mountain Plaza | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 22,477 | |||
Initial Cost, Building and Improvements | 65,217 | |||
Cost Capitalized Subsequent to Acquisition | 29,434 | |||
Gross Carrying Amount, Land | 31,035 | |||
Gross Carrying Amount, Building and Improvements | 86,093 | |||
Accumulated Depreciation and Amortization | $ (41,264) | |||
Year Built/ Renovated | 1994/2014 | |||
Date Acquired | Mar. 28, 2003 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Del Monte Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 27,412 | |||
Initial Cost, Building and Improvements | 87,570 | |||
Cost Capitalized Subsequent to Acquisition | 32,894 | |||
Gross Carrying Amount, Land | 27,117 | |||
Gross Carrying Amount, Building and Improvements | 120,759 | |||
Accumulated Depreciation and Amortization | $ (62,170) | |||
Year Built/ Renovated | 1967/1984/2006 | |||
Date Acquired | Apr. 08, 2004 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Gateway Marketplace | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 17,363 | |||
Initial Cost, Building and Improvements | 21,644 | |||
Cost Capitalized Subsequent to Acquisition | 1,097 | |||
Gross Carrying Amount, Land | 17,363 | |||
Gross Carrying Amount, Building and Improvements | 22,741 | |||
Accumulated Depreciation and Amortization | $ (1,199) | |||
Year Built/ Renovated | 1997/2016 | |||
Date Acquired | Jul. 06, 2017 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Geary Marketplace | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 8,239 | |||
Initial Cost, Building and Improvements | 12,353 | |||
Cost Capitalized Subsequent to Acquisition | 167 | |||
Gross Carrying Amount, Land | 8,238 | |||
Gross Carrying Amount, Building and Improvements | 12,521 | |||
Accumulated Depreciation and Amortization | $ (2,396) | |||
Year Built/ Renovated | 2012 | |||
Date Acquired | Dec. 19, 2012 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Hassalo on Eighth - Retail | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 0 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 28,364 | |||
Gross Carrying Amount, Land | 597 | |||
Gross Carrying Amount, Building and Improvements | 27,767 | |||
Accumulated Depreciation and Amortization | $ (3,668) | |||
Year Built/ Renovated | 2015 | |||
Date Acquired | Jul. 01, 2011 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Lomas Santa Fe Plaza | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 8,600 | |||
Initial Cost, Building and Improvements | 11,282 | |||
Cost Capitalized Subsequent to Acquisition | 13,421 | |||
Gross Carrying Amount, Land | 8,620 | |||
Gross Carrying Amount, Building and Improvements | 24,683 | |||
Accumulated Depreciation and Amortization | $ (16,348) | |||
Year Built/ Renovated | 1972/1997 | |||
Date Acquired | Jun. 12, 1995 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
The Shops at Kalakaua | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 13,993 | |||
Initial Cost, Building and Improvements | 10,817 | |||
Cost Capitalized Subsequent to Acquisition | (6) | |||
Gross Carrying Amount, Land | 14,006 | |||
Gross Carrying Amount, Building and Improvements | 10,798 | |||
Accumulated Depreciation and Amortization | $ (4,366) | |||
Year Built/ Renovated | 1971/2006 | |||
Date Acquired | Mar. 31, 2005 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Solana Beach Towne Centre | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 35,008 | |||
Initial Cost, Land | 40,980 | |||
Initial Cost, Building and Improvements | 38,842 | |||
Cost Capitalized Subsequent to Acquisition | 3,158 | |||
Gross Carrying Amount, Land | 40,980 | |||
Gross Carrying Amount, Building and Improvements | 42,000 | |||
Accumulated Depreciation and Amortization | $ (10,827) | |||
Year Built/ Renovated | 1973/2000/2004 | |||
Date Acquired | Jan. 19, 2011 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
South Bay Marketplace | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 4,401 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 11,931 | |||
Gross Carrying Amount, Land | 4,401 | |||
Gross Carrying Amount, Building and Improvements | 11,931 | |||
Accumulated Depreciation and Amortization | $ (7,311) | |||
Year Built/ Renovated | 1997 | |||
Date Acquired | Sep. 16, 1995 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Waikele Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 55,593 | |||
Initial Cost, Building and Improvements | 126,858 | |||
Cost Capitalized Subsequent to Acquisition | 29,202 | |||
Gross Carrying Amount, Land | 70,643 | |||
Gross Carrying Amount, Building and Improvements | 141,010 | |||
Accumulated Depreciation and Amortization | $ (57,608) | |||
Year Built/ Renovated | 1993/2008 | |||
Date Acquired | Sep. 16, 2004 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
City Center Bellevue | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 111,000 | |||
Initial Cost, Land | 25,135 | |||
Initial Cost, Building and Improvements | 190,998 | |||
Cost Capitalized Subsequent to Acquisition | 36,074 | |||
Gross Carrying Amount, Land | 25,135 | |||
Gross Carrying Amount, Building and Improvements | 227,072 | |||
Accumulated Depreciation and Amortization | $ (43,740) | |||
Year Built/ Renovated | 1987 | |||
Date Acquired | Aug. 21, 2012 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
First & Main | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 14,697 | |||
Initial Cost, Building and Improvements | 109,739 | |||
Cost Capitalized Subsequent to Acquisition | 7,690 | |||
Gross Carrying Amount, Land | 14,697 | |||
Gross Carrying Amount, Building and Improvements | 117,429 | |||
Accumulated Depreciation and Amortization | $ (28,457) | |||
Year Built/ Renovated | 2010 | |||
Date Acquired | Mar. 11, 2011 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
The Land Mark at One Market | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 34,575 | |||
Initial Cost, Building and Improvements | 141,196 | |||
Cost Capitalized Subsequent to Acquisition | 6,800 | |||
Gross Carrying Amount, Land | 34,575 | |||
Gross Carrying Amount, Building and Improvements | 147,996 | |||
Accumulated Depreciation and Amortization | $ (37,857) | |||
Year Built/ Renovated | 1917/2000 | |||
Date Acquired | Jun. 30, 2010 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Lloyd District Portfolio | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 18,660 | |||
Initial Cost, Building and Improvements | 61,401 | |||
Cost Capitalized Subsequent to Acquisition | 69,444 | |||
Gross Carrying Amount, Land | 11,845 | |||
Gross Carrying Amount, Building and Improvements | 137,660 | |||
Accumulated Depreciation and Amortization | $ (28,415) | |||
Year Built/ Renovated | 1940-2015 | |||
Date Acquired | Jul. 01, 2011 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
One Beach Street | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 15,332 | |||
Initial Cost, Building and Improvements | 18,017 | |||
Cost Capitalized Subsequent to Acquisition | 2,723 | |||
Gross Carrying Amount, Land | 15,332 | |||
Gross Carrying Amount, Building and Improvements | 20,740 | |||
Accumulated Depreciation and Amortization | $ (4,965) | |||
Year Built/ Renovated | 1924/1972/1987/1992 | |||
Date Acquired | Jan. 24, 2012 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Solana Beach Corporate Centre I-II | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 10,502 | |||
Initial Cost, Land | 7,111 | |||
Initial Cost, Building and Improvements | 17,100 | |||
Cost Capitalized Subsequent to Acquisition | 6,076 | |||
Gross Carrying Amount, Land | 7,111 | |||
Gross Carrying Amount, Building and Improvements | 23,176 | |||
Accumulated Depreciation and Amortization | $ (5,563) | |||
Year Built/ Renovated | 1982/2005 | |||
Date Acquired | Jan. 19, 2011 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Solana Beach Corporate Centre III-IV | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 7,298 | |||
Initial Cost, Building and Improvements | 27,887 | |||
Cost Capitalized Subsequent to Acquisition | 3,199 | |||
Gross Carrying Amount, Land | 7,298 | |||
Gross Carrying Amount, Building and Improvements | 31,086 | |||
Accumulated Depreciation and Amortization | $ (7,516) | |||
Year Built/ Renovated | 1982/2005 | |||
Date Acquired | Jan. 19, 2011 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Solana Beach Corporate Centre Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 487 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 60 | |||
Gross Carrying Amount, Land | 547 | |||
Gross Carrying Amount, Building and Improvements | 0 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Year Built/ Renovated | N/A | |||
Date Acquired | Jan. 19, 2011 | |||
Torrey Plaza | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 4,095 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 49,281 | |||
Gross Carrying Amount, Land | 5,408 | |||
Gross Carrying Amount, Building and Improvements | 47,968 | |||
Accumulated Depreciation and Amortization | $ (16,524) | |||
Year Built/ Renovated | 1996-1997/2014 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Pacific North Court | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 19,620 | |||
Initial Cost, Land | 3,263 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 24,116 | |||
Gross Carrying Amount, Land | 4,309 | |||
Gross Carrying Amount, Building and Improvements | 23,070 | |||
Accumulated Depreciation and Amortization | $ (11,740) | |||
Year Built/ Renovated | 1997-1998 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Pacific South Court | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 3,285 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 37,800 | |||
Gross Carrying Amount, Land | 4,226 | |||
Gross Carrying Amount, Building and Improvements | 36,859 | |||
Accumulated Depreciation and Amortization | $ (13,105) | |||
Year Built/ Renovated | 1996-1997 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Pacific VC | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 6,635 | |||
Initial Cost, Land | 1,413 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 9,736 | |||
Gross Carrying Amount, Land | 2,148 | |||
Gross Carrying Amount, Building and Improvements | 9,001 | |||
Accumulated Depreciation and Amortization | $ (4,901) | |||
Year Built/ Renovated | 1998/2000 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Pacific Torrey Daycare | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 715 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 1,843 | |||
Gross Carrying Amount, Land | 911 | |||
Gross Carrying Amount, Building and Improvements | 1,647 | |||
Accumulated Depreciation and Amortization | $ (902) | |||
Year Built/ Renovated | 1996-1997 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Torrey Reserve Building 6 | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 0 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 7,992 | |||
Gross Carrying Amount, Land | 682 | |||
Gross Carrying Amount, Building and Improvements | 7,310 | |||
Accumulated Depreciation and Amortization | $ (1,485) | |||
Year Built/ Renovated | 2013 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Torrey Reserve Building 5 | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 0 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 3,937 | |||
Gross Carrying Amount, Land | 1,017 | |||
Gross Carrying Amount, Building and Improvements | 2,920 | |||
Accumulated Depreciation and Amortization | $ (214) | |||
Year Built/ Renovated | 2014 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Torrey Reserve Building 13 & 14 | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 0 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 15,587 | |||
Gross Carrying Amount, Land | 2,188 | |||
Gross Carrying Amount, Building and Improvements | 13,399 | |||
Accumulated Depreciation and Amortization | $ (1,207) | |||
Year Built/ Renovated | 2015 | |||
Date Acquired | Jun. 06, 1989 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Torrey Point | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 2,073 | |||
Initial Cost, Building and Improvements | 741 | |||
Cost Capitalized Subsequent to Acquisition | 41,985 | |||
Gross Carrying Amount, Land | 6,037 | |||
Gross Carrying Amount, Building and Improvements | 38,762 | |||
Accumulated Depreciation and Amortization | $ (395) | |||
Year Built/ Renovated | 2018 | |||
Date Acquired | May 09, 1997 | |||
Life on which depreciation in latest income statements is computed | 40 years | |||
Imperial Beach Gardens | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 1,281 | |||
Initial Cost, Building and Improvements | 4,820 | |||
Cost Capitalized Subsequent to Acquisition | 4,894 | |||
Gross Carrying Amount, Land | 1,281 | |||
Gross Carrying Amount, Building and Improvements | 9,714 | |||
Accumulated Depreciation and Amortization | $ (8,054) | |||
Year Built/ Renovated | 1959/2008 | |||
Date Acquired | Jul. 31, 1985 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Loma Palisades | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 14,000 | |||
Initial Cost, Building and Improvements | 16,570 | |||
Cost Capitalized Subsequent to Acquisition | 25,982 | |||
Gross Carrying Amount, Land | 14,051 | |||
Gross Carrying Amount, Building and Improvements | 42,501 | |||
Accumulated Depreciation and Amortization | $ (27,988) | |||
Year Built/ Renovated | 1958/2001-2008 | |||
Date Acquired | Jul. 20, 1990 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Mariner's Point | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 2,744 | |||
Initial Cost, Building and Improvements | 4,540 | |||
Cost Capitalized Subsequent to Acquisition | 1,553 | |||
Gross Carrying Amount, Land | 2,744 | |||
Gross Carrying Amount, Building and Improvements | 6,093 | |||
Accumulated Depreciation and Amortization | $ (3,430) | |||
Year Built/ Renovated | 1986 | |||
Date Acquired | May 09, 2001 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Santa Fe Park Rv Resort | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 401 | |||
Initial Cost, Building and Improvements | 928 | |||
Cost Capitalized Subsequent to Acquisition | 841 | |||
Gross Carrying Amount, Land | 401 | |||
Gross Carrying Amount, Building and Improvements | 1,769 | |||
Accumulated Depreciation and Amortization | $ (1,483) | |||
Year Built/ Renovated | 1971/2007-2008 | |||
Date Acquired | Jun. 01, 1979 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Pacific Ridge Apartments | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 47,971 | |||
Initial Cost, Building and Improvements | 178,497 | |||
Cost Capitalized Subsequent to Acquisition | 1,094 | |||
Gross Carrying Amount, Land | 47,971 | |||
Gross Carrying Amount, Building and Improvements | 179,591 | |||
Accumulated Depreciation and Amortization | $ (11,329) | |||
Year Built/ Renovated | 2013 | |||
Date Acquired | Apr. 28, 2017 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Hassalo on Eighth - Residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 0 | |||
Initial Cost, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 177,859 | |||
Gross Carrying Amount, Land | 6,220 | |||
Gross Carrying Amount, Building and Improvements | 171,639 | |||
Accumulated Depreciation and Amortization | $ (19,649) | |||
Year Built/ Renovated | 2015 | |||
Date Acquired | Jul. 01, 2011 | |||
Life on which depreciation in latest income statements is computed | 30 years | |||
Waikiki Beach Walk - Retail | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 45,995 | |||
Initial Cost, Building and Improvements | 74,943 | |||
Cost Capitalized Subsequent to Acquisition | 430 | |||
Gross Carrying Amount, Land | 45,995 | |||
Gross Carrying Amount, Building and Improvements | 75,373 | |||
Accumulated Depreciation and Amortization | $ (18,753) | |||
Year Built/ Renovated | 2006 | |||
Date Acquired | Jan. 19, 2011 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Waikiki Beach Walk Hotel | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 30,640 | |||
Initial Cost, Building and Improvements | 60,029 | |||
Cost Capitalized Subsequent to Acquisition | 2,404 | |||
Gross Carrying Amount, Land | 30,640 | |||
Gross Carrying Amount, Building and Improvements | 62,433 | |||
Accumulated Depreciation and Amortization | $ (19,184) | |||
Year Built/ Renovated | 2008/2014 | |||
Date Acquired | Jan. 19, 2011 | |||
Life on which depreciation in latest income statements is computed | 35 years | |||
Solana Beach Highway 101 Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrance as of December 31, 2018 | $ 0 | |||
Initial Cost, Land | 7,847 | |||
Initial Cost, Building and Improvements | 202 | |||
Cost Capitalized Subsequent to Acquisition | 796 | |||
Gross Carrying Amount, Land | 8,845 | |||
Gross Carrying Amount, Building and Improvements | 0 | |||
Accumulated Depreciation and Amortization | $ (189) | |||
Year Built/ Renovated | N/A | |||
Date Acquired | Sep. 20, 2011 |
SCHEDULE III-Consolidated Real Estate and Accumulated Depreciation Rollforward (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Real estate assets | ||||||
Balance, beginning of period | $ 2,614,138 | $ 2,301,006 | $ 2,246,028 | |||
Property acquisitions | 0 | 270,602 | 0 | |||
Improvements | 62,790 | 44,755 | 59,199 | |||
Cost of Real Estate Sold | 0 | 0 | 0 | |||
Other | [1] | (46,737) | (2,225) | (4,221) | ||
Balance, end of period | 2,630,191 | 2,614,138 | 2,301,006 | |||
Accumulated depreciation | ||||||
Balance, beginning of period | 537,431 | 469,460 | 411,166 | |||
Additions-depreciation | 99,644 | 70,196 | 62,515 | |||
Cost of Real Estate Sold | 0 | 0 | 0 | |||
Other | [1] | (46,737) | (2,225) | (4,221) | ||
Balance, end of period | $ 590,338 | $ 537,431 | $ 469,460 | |||
|
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