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EQUITY OF AMERICAN ASSETS TRUST, INC.
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
EQUITY OF AMERICAN ASSETS TRUST, INC. EQUITY OF AMERICAN ASSETS TRUST, INC.
Stockholders' Equity
On December 3, 2021, we entered into an at-the-market ("ATM") equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250 million. The sales of shares of our common stock made through the ATM equity program, as amended, are made in "at-the-market" offerings as defined in Rule 415 of the Securities Act of 1933, as amended. For the six months ended June 30, 2022, no shares of common stock were sold through the ATM equity program.

We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of June 30, 2022, we had the capacity to issue up to $250 million in shares of our common stock under our current 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. As of June 30, 2022, we have no obligation to sell the remaining shares available for sale under the ATM equity program.
Dividends
The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 2022:
PeriodAmount per
Share/Unit		Period CoveredDividend Paid Date
First Quarter 2022$0.32 January 1, 2022 to March 31, 2022March 24, 2022
Second Quarter 2022$0.32 April 1, 2022 to June 30, 2022June 23, 2022
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 revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation.
Stock-Based Compensation

We follow the FASB guidance related to stock-based compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer.  The guidance also defines a fair value-based method of accounting for an employee stock award or similar equity instrument.
The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2022:
UnitsWeighted Average Grant Date Fair Value
Nonvested at January 1, 2022487,397 $23.78 
Granted6,072 32.94 
Vested(6,350)35.66 
Forfeited(3,121)23.18 
Nonvested at June 30, 2022483,998 $23.74 
We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $2.0 million and $1.5 million in noncash compensation expense for the three months ended June 30, 2022 and 2021, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income. We recognized $3.5 million and $3.0 million in noncash compensation expense for the six months ended June 30, 2022 and 2021, respectively. Unrecognized compensation expense was $7.2 million at June 30, 2022.
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. The weighted average unvested shares outstanding, which are considered participating securities, were 483,110 and 486,035 for the three months ended June 30, 2022 and 2021, respectively, and 484,295 and 487,895 for the six months ended June 30, 2022 and 2021, respectively. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights.
Diluted EPS is calculated by dividing the net income applicable 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 three and six months ended June 30, 2022 and 2021, 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.
The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts): 
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
NUMERATOR
Net income$13,588 $11,487 $27,102 $13,220 
Less: Net income attributable to restricted shares(154)(135)(309)(272)
Less: Income from operations attributable to unitholders in the Operating Partnership
(2,852)(2,411)(5,688)(2,750)
Net income attributable to common stockholders—basic
$10,582 $8,941 $21,105 $10,198 
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic
$10,582 $8,941 $21,105 $10,198 
Plus: Income from operations attributable to unitholders in the Operating Partnership
2,852 2,411 5,688 2,750 
Net income attributable to common stockholders—diluted
$13,434 $11,352 $26,793 $12,948 
DENOMINATOR
Weighted average common shares outstanding—basic60,040,243 59,985,787 60,039,467 59,985,065 
Effect of dilutive securities—conversion of Operating Partnership units
16,181,537 16,181,537 16,181,537 16,181,537 
Weighted average common shares outstanding—diluted76,221,780 76,167,324 76,221,004 76,166,602 
Earnings per common share, basic$0.18 $0.15 $0.35 $0.17 
Earnings per common share, diluted$0.18 $0.15 $0.35 $0.17