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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2019
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 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): 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Total Retail
 
 
 
 
 
 
 
Property revenue
$
25,871

 
$
26,415

 
$
55,308

 
$
52,572

Property expense
(7,731
)
 
(7,138
)
 
(14,885
)
 
(13,949
)
Segment profit
18,140

 
19,277

 
40,423

 
38,623

Total Office
 
 
 
 
 
 
 
Property revenue
30,200

 
31,052

 
58,006

 
57,822

Property expense
(9,269
)
 
(8,342
)
 
(17,758
)
 
(16,355
)
Segment profit
20,931

 
22,710

 
40,248

 
41,467

Total Multifamily
 
 
 
 
 
 
 
Property revenue
12,897

 
12,622

 
25,796

 
25,046

Property expense
(4,883
)
 
(5,020
)
 
(9,956
)
 
(10,017
)
Segment profit
8,014

 
7,602

 
15,840

 
15,029

Total Mixed-Use
 
 
 
 
 
 
 
Property revenue
15,145

 
14,934

 
30,322

 
30,315

Property expense
(9,218
)
 
(9,010
)
 
(18,344
)
 
(18,155
)
Segment profit
5,927

 
5,924

 
11,978

 
12,160

Total segments’ profit
$
53,012

 
$
55,513

 
$
108,489

 
$
107,279


The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Total segments’ profit
$
53,012

 
$
55,513

 
$
108,489

 
$
107,279

General and administrative
(5,943
)
 
(5,396
)
 
(12,016
)
 
(10,963
)
Depreciation and amortization
(22,582
)
 
(32,868
)
 
(43,165
)
 
(66,147
)
Interest expense
(13,129
)
 
(12,688
)
 
(26,478
)
 
(26,508
)
Gain on sale of real estate
633

 
—

 
633

 
—

Other (expense) income, net
(50
)
 
(148
)
 
(279
)
 
61

Net income
11,941

 
4,413

 
27,184

 
3,722

Net income attributable to restricted shares
(92
)
 
(216
)
 
(185
)
 
(144
)
Net income attributable to unitholders in the Operating Partnership
(2,933
)
 
(1,125
)
 
(6,988
)
 
(959
)
Net income attributable to American Assets Trust, Inc. stockholders
$
8,916

 
$
3,072

 
$
20,011

 
$
2,619


The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
 
June 30, 2019
 
December 31, 2018
Net Real Estate
 
 
 
Retail
$
627,988

 
$
628,734

Office
1,307,106

 
822,574

Multifamily
406,378

 
412,042

Mixed-Use
177,451

 
176,503

 
$
2,518,923

 
$
2,039,853

Secured Notes Payable (1)
 
 
 
Retail
$
34,625

 
$
35,008

Office
127,954

 
147,757

Multifamily
—

 
—

Mixed-Use
—

 
—

 
$
162,579

 
$
182,765

(1)
Excludes debt issuance costs of $0.2 million and $0.2 million for each of the periods ending June 30, 2019 and December 31, 2018, respectively.

Capital expenditures for each segment for the three and six months ended June 30, 2019 and 2018 were as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Capital Expenditures (1)
 
 
 
 
 
 
 
Retail
$
6,650

 
$
3,228

 
$
11,441

 
$
5,457

Office
17,418

 
7,513

 
33,901

 
14,886

Multifamily
685

 
875

 
1,456

 
2,484

Mixed-Use
3,271

 
429

 
3,663

 
583

 
$
28,024

 
$
12,045

 
$
50,461

 
$
23,410

(1)
Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.