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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2020
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 September 30,Nine Months Ended September 30,
 2020201920202019
Total Office
Property revenue44,821 42,810 $133,210 $100,816 
Property expense(11,595)(11,627)(34,989)(29,385)
Segment profit33,226 31,183 98,221 71,431 
Total Retail
Property revenue$20,621 $25,848 67,939 81,156 
Property expense(7,795)(7,806)(20,033)(22,691)
Segment profit12,826 18,042 47,906 58,465 
Total Multifamily
Property revenue12,564 12,655 37,852 38,451 
Property expense(5,603)(5,367)(16,426)(15,323)
Segment profit6,961 7,288 21,426 23,128 
Total Mixed-Use
Property revenue6,368 17,049 24,225 47,371 
Property expense(5,706)(10,131)(18,806)(28,475)
Segment profit662 6,918 5,419 18,896 
Total segments’ profit$53,675 $63,431 $172,972 $171,920 
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Total segments’ profit$53,675 $63,431 $172,972 $171,920 
General and administrative(6,438)(6,479)(19,937)(18,495)
Depreciation and amortization(26,914)(26,568)(80,869)(69,733)
Interest expense(13,302)(13,734)(40,105)(40,212)
Gain on sale of real estate— — — 633 
Other income (expense), net(531)(131)(261)(410)
Net income6,490 16,519 31,800 43,703 
Net income attributable to restricted shares(87)(92)(260)(277)
Net income attributable to unitholders in the Operating Partnership(1,365)(3,565)(6,778)(10,553)
Net income attributable to American Assets Trust, Inc. stockholders$5,038 $12,862 $24,762 $32,873 
The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
September 30, 2020December 31, 2019
Net Real Estate
Office$1,313,885 $1,317,854 
Retail612,718 624,912 
Multifamily392,506 401,152 
Mixed-Use179,455 179,557 
$2,498,564 $2,523,475 
Secured Notes Payable (1)
Office$111,000 $127,768 
Retail— 34,235 
$111,000 $162,003 
(1)Excludes debt issuance costs of $0.1 million and $0.1 million for each of the periods ended September 30, 2020 and December 31, 2019, respectively.

Capital expenditures for each segment for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Capital Expenditures (1)
Office$12,572 $16,548 $40,053 $50,449 
Retail747 5,290 7,110 16,731 
Multifamily 800 1,297 2,944 2,753 
Mixed-Use322 845 3,467 4,508 
$14,441 $23,980 $53,574 $74,441 
(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.