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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
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 office real estate, retail real estate, multifamily real estate and mixed-use real estate. 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 retail segment primarily include rental of retail 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,
 2023202220232022
Total Office
Property revenue$51,948 $53,250 $155,137 $153,412 
Property expense(15,361)(14,551)(45,075)(41,944)
Segment profit36,587 38,699 110,062 111,468 
Total Retail
Property revenue26,143 25,694 77,671 74,873 
Property expense(7,504)(7,807)(22,763)(22,965)
Segment profit18,639 17,887 54,908 51,908 
Total Multifamily
Property revenue15,152 14,748 45,908 42,851 
Property expense(7,262)(6,871)(20,579)(19,171)
Segment profit7,890 7,877 25,329 23,680 
Total Mixed-Use
Property revenue17,955 17,331 49,957 45,512 
Property expense(11,184)(10,686)(31,828)(28,549)
Segment profit6,771 6,645 18,129 16,963 
Total segments’ profit$69,887 $71,108 $208,428 $204,019 
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,
 2023202220232022
Total segments’ profit$69,887 $71,108 $208,428 $204,019 
General and administrative(8,880)(8,376)(26,488)(23,130)
Depreciation and amortization(29,868)(31,729)(89,592)(93,228)
Interest expense, net(16,325)(14,454)(48,422)(43,667)
Other income (expense), net321 (180)7,272 (523)
Net income15,135 16,369 51,198 43,471 
Net income attributable to restricted shares(189)(155)(568)(464)
Net income attributable to unitholders in the Operating Partnership(3,168)(3,442)(10,733)(9,130)
Net income attributable to American Assets Trust, Inc. stockholders$11,778 $12,772 $39,897 $33,877 
The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
September 30, 2023December 31, 2022
Net Real Estate
Office$1,616,638 $1,615,479 
Retail567,354 579,219 
Multifamily363,750 370,993 
Mixed-Use167,527 168,865 
$2,715,269 $2,734,556 
Secured Notes Payable (1)
Office$75,000 $75,000 
$75,000 $75,000 
(1)Excludes debt issuance costs of $0.4 million and $0.4 million for each of the periods ended September 30, 2023 and December 31, 2022, respectively.
Capital expenditures for each segment for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Capital Expenditures (1)
Office$16,105 $24,107 $56,642 $80,824 
Retail1,628 2,165 5,798 9,422 
Multifamily 1,977 686 4,506 3,572 
Mixed-Use1,432 197 3,282 649 
$21,142 $27,155 $70,228 $94,467 
(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.