Segment Reporting (Notes)

12 Months Ended

Dec. 31, 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 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,
	2020		2019		2018
Total Office
Property revenue	177,554		144,683		112,362
Property expense	(47,424)		(42,234)		(33,860)
Segment profit	130,130		102,449		78,502
Total Retail
Property revenue	$	88,280	$	107,604	$	105,552
Property expense	(27,374)		(30,633)		(30,078)
Segment profit	60,906		76,971		75,474
Total Multifamily
Property revenue	50,327		51,066		50,627
Property expense	(22,074)		(20,863)		(20,441)
Segment profit	28,253		30,203		30,186
Total Mixed-Use
Property revenue	28,412		63,388		62,326
Property expense	(24,247)		(38,250)		(37,076)
Segment profit	4,165		25,138		25,250
Total segments’ profit	$	223,454	$	234,761	$	209,412

 The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):

	Year Ended December 31,
	2020		2019		2018
Total segments' profit	$	223,454	$	234,761	$	209,412
General and administrative	(26,581)		(24,871)		(22,784)
Depreciation and amortization	(108,292)		(96,205)		(107,093)
Interest expense	(53,440)		(54,008)		(52,248)
Gain on sale of real estate	—		633		—
Other income (expense), net	447		(122)		(85)
Net income	35,588		60,188		27,202
Net income attributable to restricted shares	(383)		(381)		(311)
Net income attributable to unitholders in the Operating Partnership	(7,545)		(14,089)		(7,205)
Net income attributable to American Assets Trust, Inc. stockholders	$	27,660	$	45,718	$	19,686

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, 2020		December 31, 2019
Net real estate
Office	$	1,317,107	$	1,317,854
Retail	607,918		624,912
Multifamily	389,804		401,152
Mixed-Use	177,905		179,557
	$	2,492,734	$	2,523,475
Secured Notes Payable (1)
Office	$	111,000	$	127,768
Retail	—		34,235
	$	111,000	$	162,003
Capital Expenditures (2)
Office	$	52,882	$	64,549
Retail	8,596		22,844
Multifamily	3,897		3,711
Mixed-Use	3,702		8,490
	$	69,077	$	99,594

(1)Excludes unamortized debt issuance costs of $0.1 million and $0.1 million as of December 31, 2020 and 2019, respectively.

(2)Capital expenditures represent cash paid for capital expenditures during the year and includes leasing commissions paid.