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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2024
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 March 31,
 20242023
Total Office
Property revenue$51,682 $50,970 
Property expense(14,992)(14,821)
Segment profit36,690 36,149 
Total Retail
Property revenue26,026 25,627 
Property expense(8,301)(7,704)
Segment profit17,725 17,923 
Total Multifamily
Property revenue16,299 15,563 
Property expense(6,981)(6,531)
Segment profit9,318 9,032 
Total Mixed-Use
Property revenue16,688 15,594 
Property expense(10,813)(10,082)
Segment profit5,875 5,512 
Total segments’ profit$69,608 $68,616 
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 Three Months Ended March 31,
 20242023
Total segments’ profit$69,608 $68,616 
General and administrative(8,842)(8,999)
Depreciation and amortization(30,217)(29,901)
Interest expense, net(16,255)(15,729)
Other income (expense), net10,329 6,679 
Net income24,623 20,666 
Net income attributable to restricted shares(196)(189)
Net income attributable to unitholders in the Operating Partnership(5,167)(4,341)
Net income attributable to American Assets Trust, Inc. stockholders$19,260 $16,136 
The following table shows net real estate and secured note payable balances for each of the segments (in thousands):
March 31, 2024December 31, 2023
Net Real Estate
Office$1,608,519 $1,614,323 
Retail558,801 563,532 
Multifamily358,743 361,233 
Mixed-Use164,827 166,227 
$2,690,890 $2,705,315 
Secured Notes Payable (1)
Office$75,000 $75,000 
$75,000 $75,000 
(1)Excludes debt issuance costs of $0.3 million and $0.3 million for each of the periods ended March 31, 2024 and December 31, 2023, respectively.
Capital expenditures for each segment for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Three Months Ended March 31,
20242023
Capital Expenditures (1)
Office$8,986 $20,725 
Retail2,779 2,525 
Multifamily 1,200 1,313 
Mixed-Use327 1,132 
$13,292 $25,695 

(1)Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.