American Assets Trust, Inc. - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION

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8-K - FORM 8-K - American Assets Trust, Inc.	d310953d8k.htm
EX-99.1 - PRESS RELEASE - American Assets Trust, Inc.	d310953dex991.htm

Exhibit 99.2

FOURTH QUARTER 2011

Supplemental Information

LOGO

Investor and Media Contact

American Assets Trust

Robert F. Barton

Executive Vice President and Chief Financial Officer

858-350-2607

American Asset Trust, Inc.’s Portfolio is concentrated in high-barrier-to-entry markets

with favorable supply/demand characteristics

LOGO

Market

Property
Type

No. of
Properties

Square
Feet/Units

San

Diego

Retail

1,217,919

Office

668,772

Multifamily

922 units ⁽¹⁾

San

Francisco

Office

589,920⁽²⁾

Oahu

Retail

549,695

Mixed-Use

96,569
(retail)/369
suites

Monterey

Retail

674,224

San

Antonio

Retail

589,501

Portland

Office

971,036


		Square Feet	%
Note: Circled areas represent all markets in which American Assets Trust, Inc. (the “Company”) currently owns and operates its real estate assets. Circle denotes approximation of square feet / units. Data is as of December 31, 2011. (1) Includes 122 RV spaces. (2) On January 24, 2012, the Company completed the acquisition of One Beach Street, which added an additional office property consisting of approximately 97,000 rentable square feet in San Francisco, California. The acquisition is not reflected in the tables or the map above.	Retail	3.0 million	58%
	Office	2.2 million ⁽²⁾	42%
	Totals	5.2 million


Fourth Quarter 2011 Supplemental Information		Page 2

INDEX


	FOURTH QUARTER 2011 SUPPLEMENTAL INFORMATION	PAGE
1.	FINANCIAL HIGHLIGHTS
	Consolidated Balance Sheets		5
	Consolidated Statements of Operations		7
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution		8
	2012 Guidance		10
	Same-Store Portfolio Net Operating Income (NOI)		11
	Same-Store Portfolio NOI Comparison		13
	NOI By Region		14
	NOI Breakdown		15
	Property Revenue and Operating Expenses		16
	Segment Capital Expenditures		18
	Summary of Outstanding Debt		19
	Market Capitalization		20
	Summary of Redevelopment Opportunities		21

2.	PORTFOLIO DATA
	Property Report		23
	Retail Leasing Summary		25
	Office Leasing Summary		26
	Lease Expirations		27
	Portfolio Leased Statistics		29
	Top Tenants – Retail		30
	Top Tenants – Office		31

3.	APPENDIX
	Glossary of Terms		33

This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; our failure to generate sufficient cash flows to service our outstanding indebtedness; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; difficulties in identifying properties to acquire and completing acquisitions; difficulties in completing dispositions; our failure to successfully operate acquired properties and operations; our inability to develop or redevelop our properties due to market conditions; fluctuations in interest rates and increased operating costs; risks related to joint venture arrangements; our failure to obtain necessary outside financing; on-going litigation; general economic conditions; financial market fluctuations; risks that affect the general retail, office, multifamily and mixed-use environment; the competitive environment in which we operate; decreased rental rates or increased vacancy rates; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for us to continue to qualify as a REIT for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, refer to our most recent Annual Report on Form 10-K and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission.


Fourth Quarter 2011 Supplemental Information		Page 3

FINANCIAL HIGHLIGHTS


Fourth Quarter 2011 Supplemental Information


CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)


	December 31, 2011		December 31, 2010
Assets
Real estate, at cost
Operating real estate	$	1,659,106	$	1,117,831
Construction in progress		3,495		925
Held for development		24,675		8,081

		1,687,276		1,126,837
Accumulated depreciation		(234,595)		(209,666)

Net real estate		1,452,681		917,171
Cash and cash equivalents		112,723		41,953
Restricted cash		9,216		4,481
Marketable securities		28,235		-
Accounts receivable, net		6,847		1,564
Deferred rent receivables, net		23,294		19,486
Notes receivable from affiliate		-		21,769
Investment in real estate joint ventures		-		39,816
Prepaid expenses and other assets		76,285		43,718
Assets of discontinued operations		-		27,399

Total assets	$	1,709,281	$	1,117,357


Fourth Quarter 2011 Supplemental Information		Page 5


CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands, except share data)


	December 31, 2011		December 31, 2010
Liabilities and equity
Liabilities:
Secured notes payable	$	943,479	$	828,685
Unsecured notes payable		-		38,013
Notes payable to affiliates		-		5,266
Accounts payable and accrued expenses		25,476		11,284
Security deposits payable		4,790		2,510
Other liabilities and deferred credits		55,808		38,846
Distributions in excess of earnings on real estate joint ventures		-		14,060
Liabilities of discontinued operations		-		23,572

Total liabilities		1,029,553		962,236

Commitments and contingencies

Equity:
Owners’ equity		-		121,874
American Assets Trust, Inc. stockholders’ equity
Common stock $0.01 par value, 490,000,000 shares authorized, 39,283,796 shares outstanding at December 31, 2011		393		-
Additional paid in capital		653,645		-
Accumulated dividends in excess of net income		(28,007)		-

Total American Assets Trust, Inc. stockholders’ equity		626,031		-

Noncontrolling interests
Owners in consolidated real estate entities		-		33,247
Unitholders in the Operating Partnership		53,697		-

		53,697		33,247

Total equity		679,728		155,121

Total liabilities and equity	$	1,709,281	$	1,117,357


Fourth Quarter 2011 Supplemental Information		Page 6


CONSOLIDATED STATEMENTS OF OPERATIONS


(Amounts in thousands, except shares and per share data)	Three Months Ended December 31,				Year Ended December 31,
	2011		2010		2011		2010
Revenue:
Rental income	$	52,881	$	32,536	$	199,741	$	120,749
Other property income		2,666		1,016		10,082		3,778

Total revenue		55,547		33,552		209,823		124,527
Expenses:
Rental expenses		17,217		6,792		59,937		22,150
Real estate taxes		4,755		3,280		19,555		12,488
General and administrative		3,130		3,858		13,916		8,766
Depreciation and amortization		15,723		9,642		57,639		36,356

Total operating expenses		40,825		23,572		151,047		79,760
Operating income		14,722		9,980		58,776		44,767
Interest expense		(14,696)		(12,396)		(56,487)		(45,375)
Early extinguishment of debt		-		-		(25,867)		-
Loan transfer and consent fees		-		-		(9,019)		-
Gain on acquisition		-		-		46,371		4,297
Other income (expense), net		649		(679)		470		(1,846)

Income (loss) from continuing operations		675		(3,095)		14,244		1,843
Discontinued operations
Income (loss) from discontinued operations		(20)		99		1,099		331
Gain on sale of real estate property		-		-		3,981		-

Results from discontinued operations		(20)		99		5,080		331

Net income (loss)		655		(2,996)		19,324		2,174
Net income attributable to restricted shares		(132)		-		(482)		-
Net loss attributable to Predecessor’s noncontrolling interests in consolidated real estate entities		-		264		2,458		2,205
Net (income) loss attributable to Predecessor’s controlled owners’ equity		-		2,732		(16,995)		(4,379)
Net income attributable to unitholders in the Operating Partnership		(179)		-		(1,388)		-

Net income attributable to American Assets Trust, Inc. stockholders	$	344	$	-	$	2,917	$	-

Basic net income (loss) from continuing operations attributable to common stockholders per share	$	0.01			$	(0.01)
Basic net income from discontinued operations attributable to common stockholders per share		-				0.09

Basic net income attributable to common stockholders per share	$	0.01			$	0.08

Weighted average shares of common stock outstanding – basic		38,655,084				36,748,806

Diluted net income (loss) from continuing operations attributable to common stockholders per share	$	0.01			$	(0.01)
Diluted net income from discontinued operations attributable to common stockholders per share		-				0.09

Diluted net income attributable to common stockholders per share	$	0.01			$	0.08

Weighted average shares of common stock outstanding – diluted		57,051,173				54,219,807


Fourth Quarter 2011 Supplemental Information		Page 7

FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS

AVAILABLE FOR DISTRIBUTION


(Amounts in thousands, except share and per share data)	Three Months Ended December 31, 2011		Year Ended December 31, 2011
Funds from Operations (FFO) ⁽¹⁾
Net income	$	655	$	19,324
Depreciation and amortization of real estate assets ⁽²⁾		15,723		58,543
Depreciation and amortization on unconsolidated real estate joint ventures (pro rata)		-		688
Gain on sale of real estate		-		(3,981)

FFO, as defined by NAREIT		16,378		74,574

Less: FFO attributable to Predecessor’s controlled and noncontrolled owners’ equity		-		(16,973)
Less: Nonforfeitable dividends on incentive stock awards		(89)		(316)

FFO attributable to common stock and units	$	16,289	$	57,285

FFO per diluted share/unit	$	0.28	$	1.05

Weighted average number of common shares and units, diluted ⁽³⁾		57,258,935		54,417,123


FFO As Adjusted ⁽¹⁾
FFO	$	16,378	$	74,574
Early extinguishment of debt		-		25,867
Loan transfer and consent fees		-		9,019
Gain on acquisition of controlling interests ⁽⁴⁾		-		(46,371)

FFO As Adjusted		16,378		63,089

Less: FFO As Adjusted attributable to Predecessor’s controlled and noncontrolled owners’ equity		-		(2,462)
Less: Nonforfeitable dividends on incentive stock awards		(89)		(316)

FFO As Adjusted attributable to common stock and units	$	16,289	$	60,311

FFO As Adjusted per diluted share/unit ⁽⁵⁾	$	0.28	$	1.11

Weighted average number of common shares and units, diluted ⁽³⁾		57,258,935		54,417,123


Dividends

Dividends declared and paid	$	12,113	$	46,123
Dividends declared and paid per share/unit	$	0.21	$	0.80


Fourth Quarter 2011 Supplemental Information		Page 8

FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS

AVAILABLE FOR DISTRIBUTION (CONTINUED)


(Amounts in thousands, except share and per share data)	Three Months Ended December 31, 2011			Year Ended December 31, 2011
Funds Available for Distribution (FAD) ⁽¹⁾

FFO As Adjusted	$	16,378		$	63,089
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures		(5,232	)		(12,229	)
Net effect of straight-line rents ⁽⁶⁾		(749	)		(4,077	)
Amortization of net above (below) market rents ⁽⁷⁾		852			2,496
Net effect of other lease intangibles ⁽⁸⁾		75			1,129
Amortization of debt issuance costs and debt fair value adjustment		1,030			3,954
Non-cash compensation expense		713			2,615
Unrealized gains on marketable securities		(128	)		(125	)
Nonforfeitable dividends on incentive stock awards		(89	)		(316	)
Adjustments related to discontinued operations		-			(664	)

FAD	$	12,850		$	55,872


Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	3,196		$	7,548
Maintenance capital expenditures		2,036			4,681

	$	5,232		$	12,229

Notes:

(1)

See Glossary of Terms.

(2)

The year ended December 31, 2011 includes depreciation and amortization on Valencia Corporate Center, which sold on August 30, 2011 and is classified as discontinued operations.

(3)

For the three months and year ended December 31, 2011, the weighted average common shares and units used to compute FFO and FFO As Adjusted per diluted share/unit include operating partnership units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO and FFO As Adjusted per diluted share/unit include additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented. For the year ended December 31, 2011, the weighted average shares and units outstanding have been weighted for the full year, not the date of our initial public offering.

(4)

Represents the gain recognized upon acquisition of the outside ownership interests in the Solana Beach Centre entities and the Waikiki Beach Walk entities on January 19, 2011, in which we previously held a noncontrolling interest.

(5)

Computations of per share amounts are made independently for the three months and year ended December 31, 2011. Therefore, the sum of per share amounts from the three months ended December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011 may not agree with the per share amounts for the year ended December 31, 2011.

(6)

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

(7)

Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(8)

Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk – Retail.


Fourth Quarter 2011 Supplemental Information		Page 9


2012 GUIDANCE

(Amounts in thousands, except share and per share data)


	2012 Guidance Range ⁽¹⁾
Funds from Operations (FFO)
Net income	$	4,378	$	8,956
Depreciation and amortization of real estate assets		58,399		58,399

FFO, as defined by NAREIT		62,777		67,355

Less: Nonfortfeitable dividends on incentive stock awards		(354)		(354)

FFO attributable to common stock and units	$	62,423	$	67,001

Weighted average number of common shares and units, diluted		57,263,480		57,263,480

FFO per diluted share	$	1.09	$	1.17

Notes:

(1)

Our guidance for full year 2012 FFO per diluted share is a range of $1.09 to $1.17. Our guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financings or repayments. However, One Beach Street, which was acquired on January 24, 2012, is included in the 2012 guidance range.

These estimates are forward-looking and reflect management’s view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates and the amount and timing of acquisition and development activities. Our actual results may differ materially from these estimates.


Fourth Quarter 2011 Supplemental Information		Page 10


SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI)


(Amounts in thousands)	Three Months Ended December 31, 2011
	Retail		Office		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store portfolio	$	19,597	$	10,596	$	3,733	$	-	$	33,926
Non-same store portfolio ⁽¹⁾		1,991		7,994		-		11,636		21,621

Total		21,588		18,590		3,733		11,636		55,547

Real estate expenses
Same-store portfolio		6,709		3,407		1,604		-		11,720
Non-same store portfolio ⁽¹⁾		370		2,192		-		7,690		10,252

Total		7,079		5,599		1,604		7,690		21,972

Net Operating Income (NOI), GAAP basis
Same-store portfolio		12,888		7,189		2,129		-		22,206
Non-same store portfolio ⁽¹⁾		1,621		5,802		-		3,946		11,369

Total	$	14,509	$	12,991	$	2,129	$	3,946	$	33,575


Same-store portfolio NOI, GAAP basis	$	12,888	$	7,189	$	2,129	$	-	$	22,206
Net effect of straight-line rents ⁽²⁾		1,199		(1,512)		-		-		(313)
Amortization of net above (below) market rents ⁽³⁾		52		338		-		-		390
Net effect of other lease intangibles ⁽⁴⁾		-		84		-		-		84

Same-store portfolio NOI, cash basis	$	14,139	$	6,099	$	2,129	$	-	$	22,367

Notes:

(1)

Same-store portfolio and non-same store portfolio are determined based on properties held on December 31, 2011 and 2010. See Glossary of Terms.

(2)

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

(3)

Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4)

Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our lease of the Annex at The Landmark at One Market.


Fourth Quarter 2011 Supplemental Information		Page 11


SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI)


(Amounts in thousands)	Year Ended December 31, 2011
	Retail		Office		Multifamily		Mixed-Use		Total
Real estate rental revenue
Same-store portfolio	$	79,034	$	21,968	$	14,321	$	-	$	115,323
Non-same store portfolio ⁽¹⁾		7,477		42,389		-		44,634		94,500

Total		86,511		64,357		14,321		44,634		209,823

Real estate expenses
Same-store portfolio		22,996		6,511		5,578		-		35,085
Non-same store portfolio ⁽¹⁾		1,516		14,117		-		28,774		44,407

Total		24,512		20,628		5,578		28,774		79,492

Net Operating Income (NOI), GAAP basis
Same-store portfolio		56,038		15,457		8,743		-		80,238
Non-same store portfolio ⁽¹⁾		5,961		28,272		-		15,860		50,093

Total	$	61,999	$	43,729	$	8,743	$	15,860	$	130,331


Same-store portfolio NOI, GAAP basis	$	56,038	$	15,457	$	8,743	$	-	$	80,238
Net effect of straight-line rents ⁽²⁾		1,593		(95)		-		-		1,498
Amortization of net above (below) market rents ⁽³⁾		(207)		1,379		-		-		1,172
Net effect of other lease intangibles ⁽⁴⁾		-		370		-		-		370

Same-store portfolio NOI, cash basis	$	57,424	$	17,111	$	8,743	$	-	$	83,278

Notes:

(1)

Same-store portfolio and non-same store portfolio are determined based on properties held on December 31, 2011 and 2010. See Glossary of Terms.

(2)

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

(3)

Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4)

Represents adjustments related to amortization of lease incentives paid to tenants.


Fourth Quarter 2011 Supplemental Information		Page 12


SAME-STORE PORTFOLIO NOI COMPARISON


(Amounts in thousands)	Three Months Ended December 31,				Change		Year Ended December 31,				Change
	2011		2010		Change		2011		2010		Change
Cash Basis:

Retail	$	14,139	$	14,242		(0.7) %	$	57,424	$	57,988		(1.0) %
Office		6,099		9,843		(38.0)		17,111		16,796		1.9
Multifamily		2,129		2,180		(2.3)		8,743		9,417		(7.2)
Mixed-Use		-		-		-		-		-		-

	$	22,367	$	26,265		(14.8) %	$	83,278	$	84,201		(1.1) %


GAAP Basis:

Retail	$	12,888	$	14,198		(9.2) %	$	56,038	$	58,049		(3.5) %
Office		7,189		7,076		1.6		15,457		15,856		(2.5)
Multifamily		2,129		2,180		(2.3)		8,743		9,417		(7.2)
Mixed-Use		-		-		-		-		-		-

	$	22,206	$	23,454		(5.3) %	$	80,238	$	83,322		(3.7) %


Fourth Quarter 2011 Supplemental Information		Page 13


NOI BY REGION


(Amounts in thousands)	Three Months Ended December 31, 2011
	Retail		Office		Multifamily		Mixed-Use		Total
Southern California
NOI, GAAP basis ⁽¹⁾	$	6,390	$	4,081	$	2,129	$	-	$	12,600
Net effect of straight-line rents ⁽²⁾		(51)		(140)		-		-		(191)
Amortization of net above (below) market rents ⁽³⁾		(142)		99		-		-		(43)
Net effect of other lease intangibles ⁽⁴⁾		-		92		-		-		92

NOI, cash basis		6,197		4,132		2,129		-		12,458

Northern California
NOI, GAAP basis ⁽¹⁾		2,009		4,255		-		-		6,264
Net effect of straight-line rents ⁽²⁾		42		(1,510)		-		-		(1,468)
Amortization of net above (below) market rents ⁽³⁾		(67)		338		-		-		271
Net effect of other lease intangibles ⁽⁴⁾		-		(8)		-		-		(8)

NOI, cash basis		1,984		3,075		-		-		5,059

Hawaii
NOI, GAAP basis ⁽¹⁾		3,298		-		-		3,946		7,244
Net effect of straight-line rents ⁽²⁾		1,131		-		-		(115)		1,016
Amortization of net above (below) market rents ⁽³⁾		171		-		-		313		484
Net effect of other lease intangibles ⁽⁴⁾		-		-		-		(9)		(9)

NOI, cash basis		4,600		-		-		4,135		8,735

Oregon
NOI, GAAP basis ⁽¹⁾		-		4,655		-		-		4,655
Net effect of straight-line rents ⁽²⁾		-		(105)		-		-		(105)
Amortization of net above (below) market rents ⁽³⁾		-		209		-		-		209
Net effect of other lease intangibles ⁽⁴⁾		-		-		-		-		-

NOI, cash basis		-		4,759		-		-		4,759

Texas
NOI, GAAP basis ⁽¹⁾		2,812		-		-		-		2,812
Net effect of straight-line rents ⁽²⁾		(1)		-		-		-		(1)
Amortization of net above (below) market rents ⁽³⁾		(69)		-		-		-		(69)
Net effect of other lease intangibles ⁽⁴⁾		-		-		-		-		-

NOI, cash basis		2,742		-		-		-		2,742

Total
NOI, GAAP basis ⁽¹⁾		14,509		12,991		2,129		3,946		33,575
Net effect of straight-line rents ⁽²⁾		1,121		(1,755)		-		(115)		(749)
Amortization of net above (below) market rents ⁽³⁾		(107)		646		-		313		852
Net effect of other lease intangibles ⁽⁴⁾		-		84		-		(9)		75

NOI, cash basis	$	15,523	$	11,966	$	2,129	$	4,135	$	33,753

Notes:

(1)

See Glossary of Terms.

(2)

Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.

(3)

Represents the adjustment related to the acquisition of buildings with above (below) market rents.

(4)


Fourth Quarter 2011 Supplemental Information		Page 14


NOI BREAKDOWN

Three Months Ended December 31, 2011

LOGO


Fourth Quarter 2011 Supplemental Information		Page 15


PROPERTY REVENUE AND OPERATING EXPENSES

(Amounts in thousands)


	Three Months Ended December 31, 2011
Property	Base Rent ⁽¹⁾			Additional Property Income ⁽²⁾		Billed Expense Reimbursements ⁽³⁾		Property Operating Expenses ⁽⁴⁾
*Retail Portfolio*
Carmel Country Plaza	$	797		$	22	$	198	$	(176)
Carmel Mountain Plaza		2,233			49		438		(722)
South Bay Marketplace		517			1		244		(164)
Rancho Carmel Plaza		191			8		42		(55)
Lomas Santa Fe Plaza		1,302			23		268		(376)
Solana Beach Towne Centre		1,336			17		376		(346)
Del Monte Center		2,014			427		808		(1,265)
The Shops at Kalakaua		386			20		36		(70)
Waikele Center		4,111			324		1,057		(1,264)
Alamo Quarry Market		2,893			86		1,210		(1,447)


Subtotal Retail Portfolio	$	15,780		$	977	$	4,677	$	(5,885)

*Office Portfolio*
Torrey Reserve Campus	$	3,737	⁽⁵⁾	$	81	$	390	$	(966)
Solana Beach Corporate Centre		1,520			(3)		38		(405)
160 King Street		1,473			280		240		(697)
The Landmark at One Market		4,603			17		(15)		(1,757)
First & Main		2,657			115		180		(253)
Lloyd District Portfolio ⁽⁶⁾		3,030			497		58		(1,505)

Subtotal Office Portfolio	$	17,020		$	987	$	891	$	(5,583)

*Multifamily Portfolio*
Loma Palisades	$	2,376		$	179	$	-	$	(1,036)
Imperial Beach Gardens		632			55		-		(294)
Mariner’s Point		283			26		-		(124)
Santa Fe Park RV Resort		171			17		-		(150)


Subtotal Multifamily Portfolio	$	3,462		$	277	$	-	$	(1,604)


Fourth Quarter 2011 Supplemental Information		Page 16


PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)


(Amounts in thousands)	Three Months Ended December 31, 2011
Property	Base Rent ⁽¹⁾		Additional Property Income ⁽²⁾		Billed Expense Reimbursements ⁽³⁾		Property Operating Expenses ⁽⁴⁾
*Mixed-Use Portfolio*
Waikiki Beach Walk – Retail	$	2,390	$	1,107	$	952	$	(1,756)
Waikiki Beach Walk – Embassy Suites™		6,851		523		-		(5,932)


Subtotal Mixed-Use Portfolio	$	9,241	$	1,630	$	952	$	(7,688)



Total	$	45,503	$	3,871	$	6,520	$	(20,760)

Notes:

(1)

Base rent for our retail and office portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended December 31, 2011 (before abatements) and excludes the impact of straight-line rent and above (below) market rent adjustments. Total abatements for our retail and office portfolio were $23 and $1,371, respectively, for the three months ended December 31, 2011. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended December 31, 2011. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Multifamily portfolio base rent represents base rent (including parking, before abatements) less vacancy allowance and employee rent credits and includes additional rents (additional rents include insufficient notice penalties, month-to-month charges and pet rent). Total abatements for our multifamily portfolio were $6 for the three months ended December 31, 2011. For Waikiki Beach Walk – Embassy Suites ^TM, base rent is equal to the actual room revenue for the three months ended December 31, 2011.

(2)

Represents additional property-related income for the three months ended December 31, 2011, which includes: (i) percentage rent, (ii) other rent (such as storage rent, license fees and association fees) and (iii) other property income (such as late fees, default fees, lease termination fees, parking revenue, the reimbursement of general excise taxes, laundry income and food and beverage sales).

(3)

Represents billed tenant expense reimbursements for the three months ended December 31, 2011.

(4)

Represents property operating expenses for the three months ended December 31, 2011. Property operating expenses includes all rental expenses, except non-cash rent expense and the provision for bad debt recorded for deferred rent receivables.

(5)

Base rent shown includes amounts related to American Assets Trust, L.P.’s lease at ICW Plaza. This intercompany rent is eliminated in the consolidated statement of operations. The base rent was $130 and abatements were $130 for the three months ended December 31, 2011.

(6)

Includes parking income and expenses generated from the land held for development at Lloyd District Portfolio.


Fourth Quarter 2011 Supplemental Information		Page 17


SEGMENT CAPITAL EXPENDITURES


(Amounts in thousands)	Three Months Ended December 31, 2011
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Retail Portfolio	$	956	$	820	$	1,776	$	751	$	62	$	2,589
Office Portfolio		2,213		408		2,621		-		563		3,184
Multifamily Portfolio		-		143		143		-		-		143
Mixed-Use Portfolio		27		665		692		-		-		692

Total	$	3,196	$	2,036	$	5,232	$	751	$	625	$	6,608


	Year Ended December 31, 2011
Segment	Tenant Improvements and Leasing Commissions		Maintenance Capital Expenditures		Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures		Redevelopment and Expansions		New Development		Total Capital Expenditures
Retail Portfolio	$	2,296	$	1,700	$	3,996	$	1,052	$	62	$	5,110
Office Portfolio		5,203		923		6,126		-		908		7,034
Multifamily Portfolio		-		615		615		-		-		615
Mixed-Use Portfolio		49		1,443		1,492		-		-		1,492

Total	$	7,548	$	4,681	$	12,229	$	1,052	$	970	$	14,251


Fourth Quarter 2011 Supplemental Information		Page 18


SUMMARY OF OUTSTANDING DEBT


(Amounts in thousands)	Amount Outstanding at December 31, 2011		Interest Rate		Annual Debt Service		Maturity Date		Balance at Maturity
Debt	Amount Outstanding at December 31, 2011		Interest Rate		Annual Debt Service		Maturity Date		Balance at Maturity
Alamo Quarry Market ⁽¹⁾⁽²⁾	$	96,027		5.67 %	$	7,567		January 8, 2014	$	91,717
160 King Street ⁽³⁾		31,412		5.68		3,351		May 1, 2014		27,513
Waikele Center ⁽⁴⁾		140,700		5.15		7,360		November 1, 2014		140,700
The Shops at Kalakaua ⁽⁴⁾		19,000		5.45		1,053		May 1, 2015		19,000
The Landmark at One Market ⁽²⁾⁽⁴⁾		133,000		5.61		7,579		July 5, 2015		133,000
Del Monte Center ⁽⁴⁾		82,300		4.93		4,121		July 8, 2015		82,300
First & Main ⁽⁴⁾		84,500		3.97		3,406		July 1, 2016		84,500
Imperial Beach Gardens ⁽⁴⁾		20,000		6.16		1,253		September 1, 2016		20,000
Mariner’s Point ⁽⁴⁾		7,700		6.09		477		September 1, 2016		7,700
South Bay Marketplace ⁽⁴⁾		23,000		5.48		1,281		February 10, 2017		23,000
Waikiki Beach Walk - Retail ⁽⁴⁾		130,310		5.39		7,039		July 1, 2017		130,310
Solana Beach Corporate Centre III-IV ⁽⁵⁾		37,330		6.39		2,549		August 1, 2017		35,136
Loma Palisades ⁽⁴⁾		73,744		6.09		4,566		July 1, 2018		73,744
Torrey Reserve - North Court ⁽¹⁾		21,921		7.22		1,836		June 1, 2019		19,443
Torrey Reserve - VCI, VCII, VCIII ⁽¹⁾		7,380		6.36		560		June 1, 2020		6,439
Solana Beach Corporate Centre I-II ⁽¹⁾		11,788		5.91		855		June 1, 2020		10,169
Solana Beach Towne Centre ⁽¹⁾		39,293		5.91		2,849		June 1, 2020		33,898


Total / Weighted Average	$	959,405		5.45 %	$	57,702			$	938,569
Unamortized fair value adjustment		(15,926)

Debt Balance	$	943,479

Fixed Rate Debt Ratio
Fixed rate debt		100%
Variable rate debt		-

Notes:

(1)

Principal payments based on a 30-year amortization schedule.

(2)

Maturity date is the earlier of the loan maturity date under the loan agreement, or the “Anticipated Repayment Date” as specifically defined in the loan agreement, which is the date after which substantial economic penalties apply if the loan has not been paid off.

(3)

Principal payments based on a 20-year amortization schedule.

(4)

Interest only.

(5)

Loan is interest only through August 2012. Beginning in September 2012, principal payments are based on a 30-year amortization schedule.


Fourth Quarter 2011 Supplemental Information		Page 19


MARKET CAPITALIZATION


(Amounts in thousands, except per share data)	December 31, 2011
Market data
Common shares outstanding		39,284
Units outstanding		18,396

Common shares and units outstanding		57,680
Market price per common share	$	20.51

Equity market capitalization	$	1,183,017

Total debt	$	959,405

Total market capitalization	$	2,142,422

Less: Cash on hand	$	(140,958)	⁽¹⁾
Total enterprise value	$	2,001,464

Total assets, gross	$	1,943,876
Total debt/Total capitalization		44.8%
Total debt/Total enterprise value		47.9%
Net debt/Total enterprise value ⁽²⁾		40.9%
Total debt/Total assets, gross		49.4%
Total debt/Adjusted EBITDA ⁽³⁾⁽⁴⁾		7.9x
Net debt/ Adjusted EBITDA ⁽³⁾⁽⁴⁾		6.7x
Interest coverage ratio ⁽⁵⁾		2.3x
Fixed charge coverage ratio ⁽⁵⁾		2.3x

Notes:

(1)	The cash balance includes marketable trading securities of $28.2 million.

(2)	Net debt is equal to total debt less cash on hand.

(3)	See Glossary of Terms for discussion of Adjusted EBITDA.

(4)	As used here, Adjusted EBITDA represents the actual for the three months ended December 31, 2011 annualized.

(5)	Calculated as Adjusted EBITDA divided by interest expense, excluding amortization of debt issuance costs and debt fair value adjustments.

(6)

The revolving line of credit, which has a capacity of $250 million, was amended in January 2012 to extend its maturity to January 2016, but at December 31, 2011, it has no outstanding balance and is not included herein. The availability on the revolving line of credit was approximately $191.8 million at December 31, 2011, and $214.2 million after amendment on January 10, 2012.


Fourth Quarter 2011 Supplemental Information		Page 20

SUMMARY OF REDEVELOPMENT OPPORTUNITIES

LOGO

Potential Future Development/Redevelopment Pipeline

Our portfolio has numerous potential opportunities to create future shareholder value. These opportunities could be subject to government approvals, lender consents, tenant consents, market conditions, availability of debt and/or equity financing, etc. Many of these opportunities are in their preliminary stages and may not ultimately come to fruition. This schedule will update as we modify various assumptions and markets conditions change. Square footages and units set forth below are estimates only and ultimately may differ materially from actual square footages and units.

Retail – Pad Site Opportunities – Opportunity to invest in both single tenant and multi-tenant stand alone pads.


Property	Location	Estimated Square Footage
Carmel Mountain Plaza	San Diego, CA	9,000

Retail – Expansion Opportunities – Opportunity to invest in order to expand and/or convert unused square footage into additional retail square footage.


Property	Location	Estimated Square Footage
Solana Beach Corporate Centre (Building 5)	Solana Beach, CA	10,000
Lomas Santa Fe Plaza	Solana Beach, CA	45,000

Office – Expansion Opportunities – Opportunity to invest in order to expand and/or convert unused square footage into additional office square footage.


Property	Location	Estimated Square Footage
Torrey Reserve Phase III	San Diego, CA	42,000
Torrey Reserve Phase IV	San Diego, CA	40,000
Sorrento Pointe	San Diego, CA	88,000

Mixed-use – Expansion Opportunities – Opportunity to invest in additional development rights that yield higher density.


Property	Location	Estimated Square Footage ⁽¹⁾	Multifamily Units
Lloyd District Portfolio	Portland, OR	47,000	744
Solana Beach – Highway 101	Solana Beach, CA	48,000	36

Notes:

(1)

Represents commercial portion of development opportunity.


Fourth Quarter 2011 Supplemental Information		Page 21

PORTFOLIO DATA


Fourth Quarter 2011 Supplemental Information


PROPERTY REPORT


As of December 31, 2011	Same - Store Retail and Office Portfolios
Property	Location	Year Built/ Renovated		Number of Buildings		Net Rentable Square Feet ⁽¹⁾		Percentage Leased ⁽²⁾		Annualized Base Rent ⁽³⁾		Annualized Base Rent per Leased Square Foot ⁽⁴⁾		Retail Anchor Tenant(s) ⁽⁵⁾	Other Principal Retail Tenants ⁽⁶⁾
Retail Properties
Carmel Country Plaza	San Diego, CA		1991		9		78,098		93.2 %	$	3,243,397	$	44.56		Sharp Healthcare, Frazee Industries Inc.
Carmel Mountain Plaza ⁽⁷⁾	San Diego, CA		1994		13		520,228		90.6		8,957,952		19.01	Sears	Sports Authority, Nordstrom Rack
South Bay Marketplace ⁽⁷⁾	San Diego, CA		1997		9		132,873		100.0		2,072,901		15.60		Ross Dress for Less, Grocery Outlet
Rancho Carmel Plaza	San Diego, CA		1993		3		30,421		81.1		761,525		30.87		Oggi’s Pizza & Brewing Co., Sprint PCS Assets
Lomas Santa Fe Plaza	Solana Beach, CA		1972/1997		9		209,569		96.9		5,219,694		25.70		Vons, Ross Dress for Less
Del Monte Center ⁽⁷⁾	Monterey, CA		1967/1984/2006		16		674,224		97.5		8,805,222		13.39	Macy’s, KLA Monterrey	Century Theatres, Macy’s Furniture Gallery
The Shops at Kalakaua	Honolulu, HI		1971/2006		3		11,671		100.0		1,556,610		133.37		Whalers General Store, Diesel U.S.A. Inc.
Waikele Center	Waipahu, HI		1993/2008		9		538,024		94.8		16,447,740		32.25	Lowe’s, Kmart, Sports	Old Navy, Officemax
														Authority, Foodland
														Super Market
Alamo Quarry Market ⁽⁷⁾	San Antonio, TX		1997/1999		16		589,501		94.1		11,611,355		20.93	Regal Cinemas	Bed Bath & Beyond, Whole Foods Market

Subtotal/Weighted Average Retail Portfolio					87		2,784,609		94.8 %	$	58,676,396	$	22.23

Office Properties
Torrey Reserve Campus	San Diego, CA		1996-2000		9		456,801		93.4 %	$	14,872,698	$	34.86
160 King Street	San Francisco, CA		2002		1		167,986		100.0		5,949,114		35.41
The Landmark at One Market ⁽⁸⁾	San Francisco, CA		1917/2000		1		421,934		100.0		18,397,224		43.60

Subtotal/Weighted Average Office Portfolio					11		1,046,721		97.1 %	$	39,219,036	$	38.59


Total/Weighted Average Retail and Office					98		3,831,330		95.4 %	$	97,895,432	$	26.78

Same - Store Multifamily Portfolio
Property	Location	Year Built/ Renovated		Number of Buildings		Units		Percentage Leased ⁽²⁾		Annualized Base Rent ⁽³⁾		Average Monthly Base Rent per Leased Unit ⁽⁴⁾
Multifamily Properties
Loma Palisades	San Diego, CA		1958/2001-2008		80		548		94.5 %	$	9,882,012	$	1,590
Imperial Beach Gardens	Imperial Beach, CA		1959/2008-present		26		160		94.4		2,510,604		1,385
Mariner’s Point	Imperial Beach, CA		1986		8		88		95.5		1,130,712		1,121
Santa Fe Park RV Resort ⁽⁹⁾	San Diego, CA		1971/2007-2008		1		126		74.0		740,124		661


Total/Weighted Average Multifamily Portfolio					115		922		91.8 %	$	14,263,452	$	1,404

Non - Same Store Retail and Office Portfolios
Property	Location	Year Built/ Renovated		Number of Buildings		Net Rentable Square Feet ⁽¹⁾		Percentage Leased ⁽²⁾		Annualized Base Rent ⁽³⁾		Annualized Base Rent per Leased Square Foot ⁽⁴⁾		Retail Anchor Tenant(s) ⁽⁵⁾	Other Principal Retail Tenants ⁽⁶⁾
Retail Property
Solana Beach Towne Centre	Solana Beach, CA		1973/2000/2004		12		246,730		97.3 %	$	5,361,639	$	22.33		Dixieline Probuild, Marshalls
Office Properties
Solana Beach Corporate Centre	Solana Beach, CA		1982/2005		4		211,971		89.7 %	$	6,114,179	$	32.16
First & Main	Portland, OR		2010		1		360,955		96.3		10,629,931		30.58
Lloyd District Portfolio	Portland, OR		1940-2011		6		610,081		90.2		12,070,105		21.93


Subtotal/Weighted Average Office Portfolio					11		1,183,007		92.0 %	$	28,814,215	$	26.47


Total/Weighted Average Retail and Office					23		1,429,737		92.9 %	$	34,175,854	$	25.73


Fourth Quarter 2011 Supplemental Information		Page 23


PROPERTY REPORT (CONTINUED)

As of December 31, 2011

Non - Same Store Mixed-Use Portfolio

Retail Portion

Location

Year Built/
Renovated

Number
of
Buildings

Net
Rentable
Square
Feet ⁽¹⁾

Percentage
Leased ⁽²⁾

Annualized Base
Rent ⁽³⁾

Annualized
Base Rent per
Leased
Square Foot ⁽⁴⁾

Retail Anchor Tenant(s) ⁽⁵⁾

Other Principal Retail Tenants ⁽⁶⁾

Waikiki Beach Walk - Retail

Honolulu, HI

2006

96,569

99.2 %

9,489,208

99.06

Yardhouse, Ruths Chris

Hotel Portion

Location

Year
Built/
Renovated

Number
of
Buildings

Units

Average
Occupancy ⁽¹⁰⁾

Average
Daily
Rate ⁽¹⁰⁾

Annualized
Revenue
per
Available
Room ⁽¹⁰⁾

Waikiki Beach Walk - Embassy Suites™

Honolulu, HI

2008

369

88.4 %

239.46

211.57

Notes:

(1)

The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines.

(2)

Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property includes square footage under leases as of December 31, 2011, including leases which may not have commenced as of December 31, 2011. Percentage leased for our multifamily properties includes total units rented as of December 31, 2011.

(3)

Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2011, by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses.

(4)

Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of December 31, 2011. Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of December 31, 2011.

(5)

Retail anchor tenants are defined as retail tenants leasing 50,000 square feet or more.

(6)

Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants.

(7)

Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the following table:


Property	Number of Ground Leases		Square Footage Leased Pursuant to Ground Leases		Aggregate Annualized Base Rent
Carmel Mountain Plaza		6		127,112	$	1,020,900
South Bay Marketplace		1		2,824	$	81,540
Del Monte Center		2		295,100	$	201,291
Alamo Quarry Market		4		31,994	$	428,250

(8)

This property contains 421,934 net rentable square feet consisting of The Landmark at One Market (377,714 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2016, which we have the option to extend until 2026 pursuant to two five-year extension options.

(9)

The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended December 31, 2011, the highest average monthly occupancy rate for this property was 96%, occurring in July 2011. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments.

(10)

Average occupancy represents the percentage of available units that were sold during the year ended December 31, 2011, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for the year ended December 31, 2011, by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the year ended December 31, 2011 and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services.


Fourth Quarter 2011 Supplemental Information		Page 24


RETAIL LEASING SUMMARY

As of December 31, 2011


Total Lease Summary - Comparable ⁽¹⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		24		100 %		77,770	$	30.37	$	29.59	$	61,134		2.7 %		8.9 %		6.3	$	537,420	$	6.91
3rd Quarter 2011		11		100		44,296		24.03		23.01		45,098		4.4		10.1		6.9		264,000		5.96
2nd Quarter 2011		12		100		20,260		35.89		36.61		(14,534)		(2.0)		4.2		5.0		72,000		3.55
1st Quarter 2011		11		100		29,165		26.14		27.04		(26,428)		(3.4)		8.9		2.7		16,800		0.58

Total 12 months		58		100 %		171,491	$	28.67	$	28.29	$	65,270		1.3 %		8.4 %		5.7	$	890,220	$	5.19

New Lease Summary – Comparable ⁽¹⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		5		21 %		34,973	$	27.11	$	22.89	$	147,340		18.4 %		24.6 %		10.1	$	508,420	$	14.54
3rd Quarter 2011		1		9		5,280		23.00		16.48		34,407		39.5		34.0		10.0		264,000		50.00
2nd Quarter 2011		4		33		7,912		30.58		30.82		(1,918)		(0.8)		4.9		6.8		72,000		9.10
1st Quarter 2011		1		9		1,200		48.00		51.92		(4,700)		(7.5)		2.2		5.0		-		-

Total 12 months		11		19 %		49,365	$	27.73	$	24.18	$	175,129		14.7 %		20.1 %		9.4	$	844,420	$	17.11

Renewal Lease Summary – Comparable ⁽¹⁾⁽⁵⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		19		79 %		42,797	$	33.04	$	35.05	$	(86,206)		(5.7) %		0.4 %		3.2	$	29,000	$	0.68
3rd Quarter 2011		10		91		39,016		24.17		23.90		10,691		1.1		7.8		6.5		-		-
2nd Quarter 2011		8		67		12,348		39.30		40.32		(12,616)		(2.5)		3.8		3.8		-		-
1st Quarter 2011		10		91		27,965		25.20		25.98		(21,728)		(3.0)		9.5		2.6		16,800		0.60

Total 12 months		47		81 %		122,126	$	29.04	$	29.94	$	(109,859)		(3.0) %		4.5 %		4.2	$	45,800	$	0.38


Total Lease Summary – Comparable and Non-Comparable
Quarter	Number of Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		26		136,417	$	27.34		7.9	$	3,595,900	$	26.36
3rd Quarter 2011		14		49,542		24.35		6.7		361,904		7.30
2nd Quarter 2011		17		30,212		33.27		6.2		472,535		15.64
1st Quarter 2011		12		31,389		26.20		2.7		36,800		1.17

Total 12 months		69		247,560	$	27.32		6.8	$	4,467,139	$	18.04

Notes:

(1) Comparable leases represent those leases signed on spaces for which there was a previous lease.

(2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.

(3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.

(4) Weighted average is calculated on the basis of square footage.

(5) Excludes renewals at fixed contractual rates specified in the lease.


Fourth Quarter 2011 Supplemental Information		Page 25


OFFICE LEASING SUMMARY


As of December 31, 2011 Total Lease Summary - Comparable ⁽¹⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		14		100 %		40,587	$	27.70	$	27.35	$	14,415		1.3 %		2.9 %		5.1	$	84,057	$	2.07
3rd Quarter 2011		11		100		34,602		34.09		38.18		(141,785)		(10.7)		(8.8)		3.3		249,118		7.20
2nd Quarter 2011		6		100		81,360		39.25		45.54		(512,187)		(13.8)		(0.9)		5.8		231,840		2.85
1st Quarter 2011		10		100		31,298		32.88		37.54		(145,946)		(12.4)		(2.3)		2.5		57,520		1.84

Total 12 months		41		100 %		187,847	$	34.74	$	38.92	$	(785,503)		(10.7) %		(1.9) %		4.6	$	622,535	$	3.31

New Lease Summary - Comparable ⁽¹⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		-		- %		-	$	-	$	-	$	-		- %		- %		-	$	-	$	-
3rd Quarter 2011		5		45		20,109		38.11		42.28		(83,753)		(9.9)		(7.9)		3.7		229,004		11.39
2nd Quarter 2011		3		50		68,085		40.69		46.47		(393,958)		(12.5)		1.1		6.5		212,691		3.12
1st Quarter 2011		2		20		5,066		33.90		42.78		(44,982)		(20.8)		(14.0)		4.2		5,938		1.17

Total 12 months		10		24 %		93,260	$	39.76	$	45.37	$	(522,693)		(12.4) %		(1.5) %		5.8	$	447,633	$	4.80

Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
Quarter	Number of Leases Signed		% of Comparable Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Prior Rent Per Sq. Ft. ⁽³⁾		Annual Change in Rent		Cash Basis % Change Over Prior Rent		Straight-Line Basis % Change Over Prior Rent		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		14		100 %		40,587	$	27.70	$	27.35	$	14,415		1.3 %		2.9 %		5.1	$	84,057	$	2.07
3rd Quarter 2011		6		55		14,493		28.50		32.50		(58,032)		(12.3)		(10.3)		2.8		20,114		1.39
2nd Quarter 2011		3		50		13,275		31.86		40.76		(118,229)		(21.8)		(12.8)		1.7		19,149		1.44
1st Quarter 2011		8		80		26,232		32.68		36.53		(100,964)		(10.5)		0.5		2.2		51,582		1.97

Total 12 months		31		76 %		94,587	$	29.79	$	32.57	$	(262,810)		(8.5) %		(2.5) %		3.5	$	174,902	$	1.85


Total Lease Summary - Comparable and Non-Comparable
Quarter	Number of Leases Signed		Net Rentable Square Feet Signed		Contractual Rent Per Sq. Ft. ⁽²⁾		Weighted Average Lease Term ⁽⁴⁾		Tenant Improvement & Incentives		Tenant Improvement & Incentives Per Sq. Ft.
4th Quarter 2011		18		50,490	$	28.24		4.8	$	174,545	$	3.46
3rd Quarter 2011		15		44,370		33.22		3.3		387,163		8.73
2nd Quarter 2011		9		94,851		38.25		5.8		711,785		7.50
1st Quarter 2011		14		43,502		32.44		2.7		141,420		3.25

Total 12 months		56		233,213	$	34.04		4.5	$	1,414,913	$	6.07

Notes:

(1) Comparable leases represent those leases signed on spaces for which there was a previous lease.

(2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term.

(3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term.

(4) Weighted average is calculated on the basis of square footage.

(5) Excludes renewals at fixed contractual rates specified in the lease.


Fourth Quarter 2011 Supplemental Information		Page 26


LEASE EXPIRATIONS


As of December 31, 2011 Assumes no exercise of lease options
	Office										Retail								Mixed-Use (Retail Portion Only)								Total
Year	Expiring Sq. Ft.				% of Office Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Retail Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Mixed-Use Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾
Month to Month		29,244				1.3 %		0.5 %	$	7.67		11,599		0.4 %		0.2 %	$	24.96		7,639		7.9 %		0.1 %	$	36.53		48,482		0.9 %	$	16.36
2012		197,409				8.9		3.7		30.21		274,297		9.0		5.1		23.28		5,157		5.3		0.1		156.59		476,863		8.9		27.59
2013		208,966				9.4		3.9		32.16		512,063		16.9		9.6		24.40		7,735		8.0		0.1		151.78		728,764		13.6		27.98
2014		195,975				8.8		3.7		29.85		399,595		13.2		7.5		28.40		2,850		3.0		0.1		145.00		598,420		11.2		29.43
2015		371,193	⁽²⁾			16.6		6.9		29.56		221,011		7.3		4.1		25.48		11,597		12.0		0.2		152.51		603,801		11.3		30.43
2016		226,801				10.2		4.2		27.81		169,856		5.6		3.2		36.44		11,562		12.0		0.2		152.95		408,219		7.6		34.94
2017		110,028	⁽³⁾	⁽⁴⁾		4.9		2.1		42.61		139,879		4.6		2.6		25.96		5,655		5.9		0.1		149.67		255,562		4.8		35.87
2018		78,112				3.5		1.5		34.16		738,906		24.4		13.8		15.54		4,673		4.8		0.1		139.02		821,691		15.3		18.02
2019		209,206	⁽⁵⁾			9.4		3.9		46.95		70,197		2.3		1.3		27.08		11,690		12.1		0.2		51.73		291,093		5.4		42.35
2020		225,108				10.1		4.2		35.14		118,506		3.9		2.2		8.86		17,843		18.5		0.3		41.70		361,457		6.7		26.85
2021		148,278				6.7		2.8		35.51		41,170		1.4		0.8		38.15		-		-		-		-		189,448		3.5		36.09
Thereafter		63,919				2.8		1.2		25.62		95,988		3.2		1.8		21.44		9,382		9.7		0.2		46.20		169,289		3.2		24.39
Signed Leases		40,425				1.8		0.8		-		85,765		2.8		1.6		-		-		-		-		-		126,190		2.4		-
Not Commenced
Available		125,064				5.6		2.3		-		152,507		5.0		2.8		-		786		0.8		-		-		278,357		5.2		-


Total		2,229,728				100.0 %		41.7 %	$	30.51		3,031,339		100.0 %		56.6 %	$	21.13		96,569		100.0 %		1.7 %	$	98.26		5,357,636		100.0 %	$	26.42

Assumes all lease options are exercised
	Office										Retail								Mixed-Use (Retail Portion Only)								Total
Year	Expiring Sq. Ft.				% of Office Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Retail Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Mixed-Use Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾		Expiring Sq. Ft.		% of Total Sq. Ft.		Annualized Base Rent Per Sq. Ft. ⁽¹⁾
Month to Month		29,244				1.3 %		0.5 %	$	7.67		11,599		0.4 %		0.2 %	$	24.96		7,639		7.9 %		0.1 %	$	36.53		48,482		0.9 %	$	16.36
2012		133,470				6.0		2.6		32.54		142,537		4.7		2.7		25.80		5,157		5.3		0.1		156.59		281,164		5.2		31.40
2013		130,245				5.8		2.4		32.22		95,731		3.2		1.8		38.21		7,735		8.0		0.1		151.78		233,711		4.4		38.63
2014		35,616				1.6		0.7		31.47		166,823		5.5		3.1		35.07		2,850		3.0		0.1		145.00		205,289		3.8		35.97
2015		170,726	⁽²⁾			7.7		3.2		30.49		41,612		1.4		0.8		37.47		11,597		12.0		0.2		152.51		223,935		4.2		38.11
2016		193,229				8.7		3.6		25.96		71,706		2.4		1.3		29.88		11,562		12.0		0.2		152.95		276,497		5.2		32.29
2017		44,155	⁽⁴⁾			2.0		0.8		37.89		51,405		1.7		1.0		33.88		5,655		5.9		0.1		149.67		101,215		1.9		42.10
2018		90,445				4.1		1.7		30.82		116,441		3.8		2.2		24.15		4,673		4.8		0.1		139.02		211,559		3.9		29.54
2019		75,416				3.4		1.4		33.14		115,960		3.8		2.2		26.54		11,690		12.1		0.2		51.73		203,066		3.8		30.44
2020		175,123				7.9		3.3		26.85		301,936		10.0		5.6		15.84		17,843		18.5		0.3		41.70		494,902		9.2		20.67
2021		31,260				1.4		0.6		32.89		53,778		1.8		1.0		47.34		-		-		-		-		85,038		1.6		42.03
Thereafter		955,310	⁽³⁾	⁽⁵⁾		42.7		17.8		36.88		1,623,539		53.5		30.3		19.65		9,382		9.7		0.2		46.20		2,588,231		48.3		26.11
Signed Leases		40,425				1.8		0.8		-		85,765		2.8		1.6		-		-		-		-		-		126,190		2.4		-
Not Commenced
Available		125,064				5.6		2.3		-		152,507		5.0		2.8		-		786		0.8		-		-		278,357		5.2		-


Total		2,229,728				100.0 %		41.7 %	$	30.51		3,031,339		100.0 %		56.6 %	$	21.13		96,569		100.0 %		1.7 %	$	98.26		5,357,636		100.0 %	$	26.42


Fourth Quarter 2011 Supplemental Information		Page 27


LEASE EXPIRATIONS (CONTINUED)

As of December 31, 2011

Notes:

(1)

Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent for leases expiring during the applicable period, by (ii) square footage under such expiring leases. Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2011 for the leases expiring during the applicable period, by (ii) 12.

(2)	The expirations include 9,123 square feet leased by DLA Piper at 160 King Street with a lease termination of February 28, 2012, for which Osterhout Group has signed an agreement to lease the space through June 30, 2015.

(3)

The expirations include 45,795 square feet currently leased by Microsoft at The Landmark at One Market, for which Autodesk has signed an agreement to lease the space upon Microsoft’s lease termination from December 31, 2012 through December 31, 2017 with an option to extend the lease through December 31, 2024.

(4)	The expirations include 4,421 square feet currently leased by Teleca USA Inc. at Solana Beach Corporate Centre with a lease termination of December 31, 2011, for which Sims Software has signed an agreement to lease the space through February 28, 2017.

(5)

The expirations include 56,963 square feet currently leased by DLA Piper at 160 King Street with a lease termination of February 28, 2012, for which Ancestry.com Operations, Inc. has signed an agreement to lease the space upon lease termination from May 1, 2012 through April 30, 2019 with an option to extend the lease through April 30, 2029.


Fourth Quarter 2011 Supplemental Information		Page 28


PORTFOLIO LEASED STATISTICS


	At December 31, 2011							At December 31, 2010
Type	Size		Leased ⁽¹⁾		Leased %			Size		Leased ⁽¹⁾		Leased %

Overall Portfolio Statistics
Retail Properties (square feet)		3,031,339		2,878,832		95.0	%		2,784,243		2,622,433		94.2	%
Office Properties (square feet) ⁽³⁾		2,229,728		2,104,664		94.4	%		1,046,721		1,003,526		95.9	%
Multifamily Properties (units)		922		846		91.8	%		922		806		87.4	%
Mixed-Used Properties (square feet)		96,569		95,783		99.2	%		-		-		-
Mixed-Used Properties (units)		369		326 ⁽⁴⁾		88.4	%		-		-		-

Same-Store⁽²⁾Statistics
Retail Properties (square feet)		2,784,609 ⁽⁵⁾		2,638,754		94.8	%		2,784,243		2,622,433		94.2	%
Office Properties (square feet)		1,046,721 ⁽⁶⁾		1,016,541		97.1	%		1,046,721		1,003,526		95.9	%
Multifamily Properties (units)		922		846		91.8	%		922		806		87.4	%
Mixed-Used Properties (square feet)		- ⁽⁷⁾		-		-			-		-		-
Mixed-Used Properties (units)		- ⁽⁷⁾		-		-			-		-		-

Notes:

(1)

Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date.

(2)

See Glossary of Terms.

(3)

Excludes Valencia Corporate Center, which was sold on August 30, 2011.

(4)

Represents average occupancy for the year ended December 31, 2011.

(5)

Excludes Solana Beach Towne Centre as the controlling interest in this entity was acquired on January 19, 2011.

(6)

Excludes Solana Beach Corporate Centre as the controlling interest in this entity was acquired on January 19, 2011. First & Main is excluded as it was acquired on March 11, 2011. Lloyd District Portfolio is excluded as it was acquired on July 1, 2011.

(7)

Excludes the Waikiki Beach Walk property as the controlling interest in this entity was acquired on January 19, 2011.


Fourth Quarter 2011 Supplemental Information		Page 29


TOP TENANTS – RETAIL

As of December 31, 2011


	Tenant	Property(ies)	Lease Expiration	Total Leased Square Feet		Rentable Square Feet as a Percentage of Total Retail		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Retail		Annualized Base Rent as a Percentage of Total
1	Lowe’s	Waikele Center	5/31/18		155,000		5.1 %		2.9 %	$	4,059,585		6.3 %		2.9 %
2	Kmart	Waikele Center	6/30/18		119,590		3.9		2.2		3,826,880		6.0		2.7
3	Foodland Super Market	Waikele Center	1/25/14		50,000		1.6		0.9		2,337,481		3.7		1.7
4	Sports Authority	Carmel Mountain Plaza,	11/30/13		90,722		3.0		1.7		2,076,602		3.2		1.5
		Waikele Center	7/18/13
5	Ross Dress for Less	South Bay Marketplace,	1/31/13		81,125		2.7		1.5		1,595,826		2.5		1.1
		Lomas Santa Fe Plaza,	1/31/14
		Carmel Mountain Plaza
6	Old Navy	Alamo Quarry Market,	9/30/12		59,780		2.0		*		*		*		*
		Waikele Center, South	7/31/12
		Bay Marketplace	4/30/13
7	Officemax	Waikele Center, Alamo	1/31/14		47,962		1.6		0.9		1,164,761		1.8		0.8
		Quarry Market	11/30/12
8	Marshalls	Solana Beach Towne	1/13/15		68,055		2.2		1.3		1,106,146		1.7		0.8
		Centre, Carmel Mountain Plaza	1/31/19
9	Vons	Lomas Santa Fe Plaza	12/31/17		49,895		1.6		0.9		1,058,000		1.7		0.7
10	Sprouts Farmers Market	Carmel Mountain Plaza, Solana Beach Towne Centre	3/31/25		45,959		1.5		0.9		1,037,824		1.6		0.7
			6/30/14



	Top 10 Retail Tenants Total				768,088		25.2 %		13.2 %	$	18,263,105		28.5 %		12.9 %

* Data withheld at tenant’s request


Fourth Quarter 2011 Supplemental Information		Page 30


TOP TENANTS – OFFICE

As of December 31, 2011


	Tenant	Property(ies)	Lease Expiration	Total Leased Square Feet		Rentable Square Feet as a Percentage of Total Office		Rentable Square Feet as a Percentage of Total		Annualized Base Rent		Annualized Base Rent as a Percentage of Total Office		Annualized Base Rent as a Percentage of Total
1	salesforce.com	The Landmark at One Market	6/30/19 4/30/20 5/31/21		226,892		10.2 %		4.2 %	$	10,254,426		15.1 %		7.2 %
2	DLA Piper	160 King Street	2/28/12		69,656		3.1		1.3		3,260,545		4.8		2.3
3	Veterans Benefits Administration	First & Main	8/31/20		93,572		4.2		1.7		3,006,453		4.4		2.1
4	Microsoft	The Landmark at One Market	2/28/13 2/28/15		45,795		2.1		0.9		2,930,880		4.3		2.1
5	Autodesk	The Landmark at One Market	12/31/15 12/31/17		68,869		3.2		1.3		2,847,100		4.2		2.0
6	Treasury Tax Administration	First & Main	8/31/15		70,660		3.2		1.3		2,583,330		3.8		1.8
7	Insurance Company Of The West	Torrey Reserve Campus	12/31/16		81,040		3.6		1.5		2,378,284		3.5		1.7
8	Treasury Call Center	First & Main	8/31/20		63,648		2.9		1.2		2,184,302		3.2		1.5
9	Integra Telecom Holdings, Inc.	Lloyd District Portfolio	1/31/14 5/31/14 3/31/16 12/31/20		62,640		2.8		1.2		1,460,651		2.1		1.0
10	California Bank & Trust	Torrey Reserve Campus	5/31/19 10/31/19		29,985		1.3		0.6		1,362,918		2.0		1.0


	Top 10 Office Tenants Total				812,757		36.6 %		15.2 %	$	32,268,889		47.4 %		22.7 %


Fourth Quarter 2011 Supplemental Information		Page 31

APPENDIX


Fourth Quarter 2011 Supplemental Information


GLOSSARY OF TERMS

EBITDA: EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA for the three months and year ended December 31, 2011 is as follows:


	Three Months Ended December 31, 2011		Year Ended December 31, 2011
Net income	$	655	$	19,324
Depreciation and amortization		15,723		57,639
Interest expense		14,696		56,487
Interest income		(535)		(1,621)
Income tax expense		(117)		573
Gain on sale of real estate		-		(3,981)

EBITDA	$	30,422	$	128,421

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that begins with EBITDA and includes adjustments for certain items that we believe are not representative of ongoing operating performance. We use Adjusted EBITDA as a supplemental performance measure because losses from early extinguishment of debt, loan transfer and consent fees and gains on acquisitions of controlling interests create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential. The adjustments noted resulted from our initial public offering and formations transactions.


	Three Months Ended December 31, 2011		Year Ended December 31, 2011
EBITDA	$	30,422	$	128,421
Early extinguishment of debt		-		25,867
Loan transfer and consent fees		-		9,019
Gain on acquisition		-		(46,371)

Adjusted EBITDA	$	30,422	$	116,936

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies’ operating performances. The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as follows: net income, computed in accordance with GAAP plus depreciation and amortization of real estate assets and excluding extraordinary items, gains and losses on sale of real estate and impairment losses. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Funds From Operations As Adjusted (FFO As Adjusted): FFO As Adjusted is a supplemental measure of real estate companies’ operating performances. We use FFO As Adjusted as a supplemental performance measure because losses from early extinguishment of debt, loan transfer and consent fees and gains on acquisitions of controlling interests create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential. The adjustments noted resulted from our initial public offering and formation transactions. However, other REITs may use different methodologies for defining adjustments and, accordingly, our FFO As Adjusted may not be comparable to other REITs.


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GLOSSARY OF TERMS (CONTINUED)

Funds Available for Distribution (FAD): FAD is a supplemental measure of our liquidity. We compute FAD by subtracting from FFO As Adjusted tenant improvements, leasing commissions and maintenance capital expenditures, eliminating the net effect of straight-line rents, amortization of above (below) market rents for acquisition properties, the effects of other lease intangibles, adding noncash amortization of deferred financing costs and debt fair value adjustments, adding noncash compensation expense, and adding (subtracting) unrealized losses (gains) on marketable securities. FAD provides an additional perspective on our ability to fund cash needs and make distributions by adjusting FFO for the impact of certain cash and noncash items, as well as adjusting FFO for recurring capital expenditures and leasing costs. However, other REITs may use different methodologies for calculating FAD and, accordingly, our FAD may not be comparable to other REITs.

Net Operating Income (NOI): We define NOI as operating revenues (rental income, tenant reimbursements and other property income) less property and related expenses (property expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. Since NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. However, NOI should not be viewed as an alternative measure of our financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations.


	Three Months Ended December 31,				Year Ended December 31,
Reconciliation of NOI to net income (loss)	2011		2010		2011		2010
Total NOI	$	33,575	$	23,480	$	130,331	$	89,889
General and administrative		(3,130)		(3,858)		(13,916)		(8,766)
Depreciation and amortization		(15,723)		(9,642)		(57,639)		(36,356)
Interest expense		(14,696)		(12,396)		(56,487)		(45,375)
Early extinguishment of debt		-		-		(25,867)		-
Loan transfer and consent fees		-		-		(9,019)		-
Gain on acquisition		-		-		46,371		4,297
Other income (expense), net		649		(679)		470		(1,846)

Income (loss) from continuing operations		675		(3,095)		14,244		1,843
Discontinued operations
Income (loss) from discontinued operations		(20)		99		1,099		331
Gain on sale of real estate property		-		-		3,981		-

Results from discontinued operations		(20)		99		5,080		331

Net income (loss)		655		(2,996)		19,324		2,174
Net income attributable to restricted shares		(132)		-		(482)		-
Net loss attributable to Predecessor’s noncontrolling interests in consolidated real estate entities		-		264		2,458		2,205
Net (income) loss attributable to Predecessor’s controlled owners’ equity		-		2,732		(16,995)		(4,379)
Net income attributable to unitholders in the Operating Partnership		(179)		-		(1,388)		-

Net income attributable to American Assets Trust, Inc. stockholders	$	344	$	-	$	2,917	$	-

Overall Portfolio: Includes all operating properties owned by us as of December 31, 2011.


Fourth Quarter 2011 Supplemental Information		Page 34


GLOSSARY OF TERMS (CONTINUED)

Same-Store Portfolio and Non-Same Store Portfolio: Information provided on a same-store basis is provided for only those properties that were owned and operated for the entirety of both periods being compared and excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared. The following table shows the properties included in the same-store and non-same store portfolio for the comparative periods presented.

Comparison of Three Months Ended
December 31, 2011 to 2010

Comparison of Year Ended
December 31, 2011 to 2010

Same-Store

Non-Same Store

Same-Store

Non-Same Store

Retail Properties

Carmel Country Plaza

Carmel Mountain Plaza

South Bay Marketplace

Rancho Carmel Plaza

Lomas Santa Fe Plaza

Solana Beach Towne Centre

Del Monte Center

The Shops at Kalakaua

Waikele Center

Alamo Quarry Market

Office Properties

Torrey Reserve Campus

Solana Beach Corporate Centre

160 King Street

The Landmark at One Market

First & Main

Lloyd District Portfolio

Multifamily Properties

Loma Palisades

Imperial Beach Gardens

Mariner’s Point

Santa Fe Park RV Resort

Mixed-Use Properties

Waikiki Beach Walk - Retail

Waikiki Beach Walk - Embassy Suites™

Development Properties

Sorrento Pointe - Land

Torrey Reserve - Land

Solana Beach Corporate Centre - Land

Solana Beach - Highway 101 - Land

Lloyd District Portfolio - Land

Valencia Corporate Center has been excluded from both the same-store and non-same store portfolio due to the sale of the property on August 30, 2011.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators, new entrances, etc.) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.


Fourth Quarter 2011 Supplemental Information		Page 35

Attached files

American Assets Trust, Inc. Reports

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