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Segment Reporting (Notes)
 12 Months Ended
Dec. 31, 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 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):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Total Office
 
 
 
 
 
Property revenue
144,683

 
112,362

 
105,694

Property expense
(42,234
)
 
(33,860
)
 
(33,120
)
Segment profit
102,449

 
78,502

 
72,574

Total Retail
 
 
 
 
 
Property revenue
$
107,604

 
$
105,552

 
$
103,968

Property expense
(30,633
)
 
(30,078
)
 
(28,524
)
Segment profit
76,971

 
75,474

 
75,444

Total Multifamily
 
 
 
 
 
Property revenue
51,066

 
50,627

 
43,533

Property expense
(20,863
)
 
(20,441
)
 
(17,898
)
Segment profit
30,203

 
30,186

 
25,635

Total Mixed-Use
 
 
 
 
 
Property revenue
63,388

 
62,326

 
61,788

Property expense
(38,250
)
 
(37,076
)
 
(37,135
)
Segment profit
25,138

 
25,250

 
24,653

Total segments’ profit
$
234,761

 
$
209,412

 
$
198,306


 The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Total segments' profit
$
234,761

 
$
209,412

 
$
198,306

General and administrative
(24,871
)
 
(22,784
)
 
(21,382
)
Depreciation and amortization
(96,205
)
 
(107,093
)
 
(83,278
)
Interest expense
(54,008
)
 
(52,248
)
 
(53,848
)
Gain on sale of real estate
633

 
—

 
—

Other income (expense), net
(122
)
 
(85
)
 
334

Net income
60,188

 
27,202

 
40,132

Net income attributable to restricted shares
(381
)
 
(311
)
 
(241
)
Net income attributable to unitholders in the Operating Partnership
(14,089
)
 
(7,205
)
 
(10,814
)
Net income attributable to American Assets Trust, Inc. stockholders
$
45,718

 
$
19,686

 
$
29,077


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):
 
December 31, 2019
 
December 31, 2018
Net real estate
 
 
 
Office
$
1,317,854

 
$
822,574

Retail
624,912

 
628,734

Multifamily
401,152

 
412,042

Mixed-Use
179,557

 
176,503

 
$
2,523,475

 
$
2,039,853

Secured Notes Payable (1)
 
 
 
Office
$
127,768

 
$
147,757

Retail
34,235

 
35,008

 
$
162,003

 
$
182,765

Capital Expenditures (2)
 
 
 
Office
$
64,549

 
$
45,192

Retail
22,844

 
14,219

Multifamily
3,711

 
3,659

Mixed-Use
8,490

 
1,277

 
$
99,594

 
$
64,347


(1)
Excludes unamortized debt issuance costs of $0.1 million and $0.2 million as of December 31, 2019 and 2018, respectively.
(2)
Capital expenditures represent cash paid for capital expenditures during the year and includes leasing commissions paid.