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.	a2q148-k.htm
EX-99.1 - PRESS RELEASE - American Assets Trust, Inc.	a2q14earningsrelease.htm




	SECOND QUARTER 2014
	Supplemental Information






Investor and Media Contact
American Assets Trust
Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607

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

with favorable supply/demand characteristics








	Retail	Office	Multifamily		Mixed-Use
Market	Square Feet	Square Feet	Units		Square Feet	Suites
San Diego	1,217,923	688,185	922	(1)	—	—

San Francisco	35,156	519,548	—		—	—

Oahu	549,399	—	—		96,707	369

Monterey	675,678	—	—		—	—

San Antonio	589,501	—	—		—	—

Portland	—	942,021	—		—	—

Seattle	—	495,038	—		—	—

Total	3,067,657	2,644,792	922		96,707	369



		Square Feet		%
Note: Circled areas represent all markets in which American Assets Trust, Inc. (the "Company") currently owns and operates its real estate assets. Size of circle denotes approximation of square feet / units. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.	Retail	3.1	million	54%
	Office	2.6	million	46%
Data is as of June 30, 2014.	Totals	5.7	million
(1) Includes 122 RV spaces.



Second Quarter 2014 Supplemental Information	Page 2




INDEX



	SECOND QUARTER 2014 SUPPLEMENTAL INFORMATION
1.	FINANCIAL HIGHLIGHTS
	Consolidated Balance Sheets	5
	Consolidated Statements of Income	6
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution	7
	Corporate Guidance	9
	Same-Store Portfolio Net Operating Income (NOI)	10
	Same-Store Portfolio NOI Comparison excluding Redevelopment	12
	Same-Store Portfolio NOI Comparison with Redevelopment	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 Development Opportunities	21
2.	PORTFOLIO DATA
	Property Report	23
	Retail Leasing Summary	25
	Office Leasing Summary	26
	Multifamily Leasing Summary	27
	Mixed-Use Leasing Summary	28
	Lease Expirations	29
	Portfolio Leased Statistics	31
	Top Tenants - Retail	32
	Top Tenants - Office	33
3.	APPENDIX
	Glossary of Terms	35

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.



Second Quarter 2014 Supplemental Information	Page 3

FINANCIAL HIGHLIGHTS



Second Quarter 2014 Supplemental Information	Page 4




CONSOLIDATED BALANCE SHEETS



(Amounts in thousands, except shares and per share data)	June 30, 2014			December 31, 2013
	(unaudited)			(audited)
ASSETS
Real estate, at cost
Operating real estate	$	1,926,204		$	1,919,015
Construction in progress	116,498			67,389
Held for development	9,084			9,013
	2,051,786			1,995,417
Accumulated depreciation	(341,760		)	(318,581		)
Net real estate	1,710,026			1,676,836
Cash and cash equivalents	78,859			48,987
Restricted cash	10,766			9,124
Accounts receivable, net	4,940			7,295
Deferred rent receivable, net	33,956			32,531
Other assets, net	53,876			57,670
TOTAL ASSETS	$	1,892,423		$	1,832,443
LIABILITIES AND EQUITY
LIABILITIES:
Secured notes payable	$	952,847		$	952,174
Term loan	100,000			—
Line of credit	—			93,000
Accounts payable and accrued expenses	38,885			37,063
Security deposits payable	5,323			5,163
Other liabilities and deferred credits	57,675			58,465
Total liabilities	1,154,730			1,145,865
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 42,615,331 and 40,512,563 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	426			405
Additional paid in capital	759,158			692,196
Accumulated dividends in excess of net income	(54,186		)	(44,090		)
Accumulated other comprehensive loss	(1,093		)	—
Total American Assets Trust, Inc. stockholders' equity	704,305			648,511
Noncontrolling interests	33,388			38,067
Total equity	737,693			686,578
TOTAL LIABILITIES AND EQUITY	$	1,892,423		$	1,832,443



Second Quarter 2014 Supplemental Information	Page 5




CONSOLIDATED STATEMENTS OF INCOME



(Unaudited, amounts in thousands, except shares and per share data)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
REVENUE:
Rental income	$	58,793		$	59,705		$	119,275		$	118,927
Other property income	3,392			3,209			6,863			6,167
Total revenue	62,185			62,914			126,138			125,094
EXPENSES:
Rental expenses	16,500			16,686			33,120			32,972
Real estate taxes	5,129			5,476			11,155			10,276
General and administrative	4,635			4,426			9,247			8,627
Depreciation and amortization	18,209			16,953			34,550			33,966
Total operating expenses	44,473			43,541			88,072			85,841
OPERATING INCOME	17,712			19,373			38,066			39,253
Interest expense	(13,439		)	(14,744		)	(27,071		)	(29,480		)
Other income (expense), net	1,078			(65		)	1,014			(344		)
NET INCOME	5,351			4,564			12,009			9,429
Net income attributable to restricted shares	(94		)	(133		)	(164		)	(265		)
Net income attributable to unitholders in the Operating Partnership	(1,544		)	(1,354		)	(3,530		)	(2,849		)
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS	$	3,713		$	3,077		$	8,315		$	6,315

EARNINGS PER COMMON SHARE
Basic income attributable to common stockholders per share	$	0.09		$	0.08		$	0.20		$	0.16
Weighted average shares of common stock outstanding - basic	41,816,379			39,460,086			41,202,993			39,247,729
Diluted income attributable to common stockholders per share	$	0.09		$	0.08		$	0.20		$	0.16
Weighted average shares of common stock outstanding - diluted	59,721,636			57,429,837			59,110,450			57,244,174



Second Quarter 2014 Supplemental Information	Page 6




FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION



(Unaudited, amounts in thousands, except per share data)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Funds from Operations (FFO) ⁽¹⁾
Net income	$	5,351		$	4,564		$	12,009		$	9,429
Depreciation and amortization of real estate assets	18,209			16,953			34,550			33,966
FFO, as defined by NAREIT	23,560			21,517			46,559			43,395
Less: Nonforfeitable dividends on incentive stock awards	(25		)	(88		)	(71		)	(176		)
FFO attributable to common stock and common units	$	23,535		$	21,429		$	46,488		$	43,219
FFO per diluted share/unit	$	0.39		$	0.37		$	0.78		$	0.75
Weighted average number of common shares and common units, diluted ⁽²⁾	60,011,025			57,640,176			59,399,188			57,454,594

Dividends
Dividends declared and paid	$	13,313		$	12,266		$	26,453		$	24,380
Dividends declared and paid per share/unit	$	0.22		$	0.21		$	0.44		$	0.42



Second Quarter 2014 Supplemental Information	Page 7




FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)



(Unaudited, amounts in thousands, except share and per share data)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Funds Available for Distribution (FAD) ⁽¹⁾
FFO	$	23,560		$	21,517		$	46,559		$	43,395
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures	(6,679		)	(4,656		)	(12,736		)	(8,707		)
Net effect of straight-line rents ⁽³⁾	(680		)	(623		)	(1,738		)	(1,413		)
Amortization of net above (below) market rents ⁽⁴⁾	(655		)	(220		)	(1,242		)	(727		)
Net effect of other lease intangibles ⁽⁵⁾	36			53			73			110
Amortization of debt issuance costs and debt fair value adjustment	1,016			983			2,031			1,966
Non-cash compensation expense	1,007			717			1,526			1,393
Nonforfeitable dividends on incentive stock awards	(25		)	(88		)	(71		)	(176		)
FAD	$	17,580		$	17,683		$	34,402		$	35,841

Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	2,519		$	2,338		$	5,698		$	5,280
Maintenance capital expenditures	4,160			2,318			7,038			3,427
	$	6,679		$	4,656		$	12,736		$	8,707

Notes:


(1)	See Glossary of Terms.

(2)

For the three and six months ended June 30, 2014 and 2013, the weighted average common shares and common units used to compute FFO per diluted share/unit include operating partnership common units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO 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.


(3)	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.


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


(5)	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.



Second Quarter 2014 Supplemental Information	Page 8




CORPORATE GUIDANCE




	Prior 2014 Guidance Range ^{(1) (2)}						Revised 2014 Guidance Range ⁽²⁾
Funds from Operations (FFO):
Net income	$	29,838		$	34,851		$	27,296		$	30,863
Depreciation and amortization of real estate assets	59,865			59,865			65,913			65,913
FFO, as defined by NAREIT	89,703			94,716			93,209			96,776
Less: Nonforfeitable dividends on incentive stock awards	(358		)	(358		)	(145		)	(145		)
FFO attributable to common stock and units	$	89,345		$	94,358		$	93,064		$	96,631
Weighted average number of common shares and units, diluted	58,155,627			58,155,627			59,659,835			59,659,835
FFO per diluted share, updated	$	1.54		$	1.62		$	1.56		$	1.62

Notes:


(1)	Prior 2014 Guidance Range as reported in the Company's Third Quarter 2013 Supplemental Information report.


(2)	The Company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financings or repayments.

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.



Second Quarter 2014 Supplemental Information	Page 9




SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI)



(Unaudited, amounts in thousands)	Three Months Ended June 30, 2014
	Retail			Office			Multifamily		Mixed-Use			Total
Real estate rental revenue
Same-store portfolio	$	23,555		$	15,511		$	4,210	$	11,972		$	55,248
Non-same store portfolio ⁽¹⁾	15			6,922			—		—			6,937
Total	23,570			22,433			4,210		11,972			62,185
Real estate expenses
Same-store portfolio	6,419			3,964			1,554		7,542			19,479
Non-same store portfolio ⁽¹⁾	29			2,121			—		—			2,150
Total	6,448			6,085			1,554		7,542			21,629
Net Operating Income (NOI), GAAP basis
Same-store portfolio	17,136			11,547			2,656		4,430			35,769
Non-same store portfolio ⁽¹⁾	(14		)	4,801			—		—			4,787
Total	$	17,122		$	16,348		$	2,656	$	4,430		$	40,556
Same-store portfolio NOI, GAAP basis	$	17,136		$	11,547		$	2,656	$	4,430		$	35,769
Net effect of straight-line rents ⁽²⁾	(65		)	(287		)	—		(40		)	(392		)
Amortization of net above (below) market rents ⁽³⁾	(373		)	(547		)	—		136			(784		)
Net effect of other lease intangibles ⁽⁴⁾	—			(30		)	—		(25		)	(55		)
Same-store portfolio NOI, cash basis	$	16,698		$	10,683		$	2,656	$	4,501		$	34,538

Notes:


(1)	Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2014 and 2013. 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 and retail space at Waikiki Beach Walk - Retail.



Second Quarter 2014 Supplemental Information	Page 10




SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) (CONTINUED)



(Unaudited, amounts in thousands)	Six Months Ended June 30, 2014
	Retail			Office			Multifamily		Mixed-Use			Total
Real estate rental revenue
Same-store portfolio	$	46,535		$	31,338		$	8,340	$	25,965		$	112,178
Non-same store portfolio ⁽¹⁾	34			13,926			—		—			13,960
Total	46,569			45,264			8,340		25,965			126,138
Real estate expenses
Same-store portfolio	12,463			8,538			2,981		15,810			39,792
Non-same store portfolio ⁽¹⁾	43			4,440			—		—			4,483
Total	12,506			12,978			2,981		15,810			44,275
Net Operating Income (NOI), GAAP basis
Same-store portfolio	34,072			22,800			5,359		10,155			72,386
Non-same store portfolio ⁽¹⁾	(9		)	9,486			—		—			9,477
Total	$	34,063		$	32,286		$	5,359	$	10,155		$	81,863
Same-store portfolio NOI, GAAP basis	$	34,072		$	22,800		$	5,359	$	10,155		$	72,386
Net effect of straight-line rents ⁽²⁾	(64		)	(959		)	—		(126		)	(1,149		)
Amortization of net above (below) market rents ⁽³⁾	(743		)	(1,103		)	—		277			(1,569		)
Net effect of other lease intangibles ⁽⁴⁾	—			(60		)	—		(50		)	(110		)
Same-store portfolio NOI, cash basis	$	33,265		$	20,678		$	5,359	$	10,256		$	69,558

Notes:


(1)	Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2014 and 2013. 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 and retail space at Waikiki Beach Walk - Retail.



Second Quarter 2014 Supplemental Information	Page 11




SAME-STORE PORTFOLIO NOI COMPARISON EXCLUDING REDEVELOPMENT



(Unaudited, amounts in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014		2013		Change		2014		2013		Change
Cash Basis:
Retail	$	16,698	$	17,494	(4.6	)%	$	33,265	$	34,624	(3.9	)%
Office	10,683		10,034		6.5		20,678		20,106		2.8
Multifamily	2,656		2,558		3.8		5,359		4,991		7.4
Mixed-Use	4,501		5,064		(11.1	)	10,256		10,635		(3.6	)
	$	34,538	$	35,150	(1.7	)%	$	69,558	$	70,356	(1.1	)%

GAAP Basis:
Retail	$	17,136	$	17,458	(1.8	)%	$	34,072	$	34,665	(1.7	)%
Office	11,547		11,573		(0.2	)	22,800		23,312		(2.2	)
Multifamily	2,656		2,558		3.8		5,359		4,991		7.4
Mixed-Use	4,430		4,829		(8.3	)	10,155		10,321		(1.6	)
	$	35,769	$	36,418	(1.8	)%	$	72,386	$	73,289	(1.2	)%



Second Quarter 2014 Supplemental Information	Page 12




SAME-STORE PORTFOLIO NOI COMPARISON WITH REDEVELOPMENT



(Unaudited, amounts in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014		2013		Change		2014		2013		Change
Cash Basis:
Retail	$	16,698	$	17,494	(4.6	)%	$	33,265	$	34,624	(3.9	)%
Office	15,414		14,854		3.8		30,082		29,565		1.7
Multifamily	2,656		2,558		3.8		5,359		4,991		7.4
Mixed-Use	4,501		5,064		(11.1	)	10,256		10,635		(3.6	)
	$	39,269	$	39,970	(1.8	)%	$	78,962	$	79,815	(1.1	)%

GAAP Basis:
Retail	$	17,136	$	17,458	(1.8	)%	$	34,072	$	34,665	(1.7	)%
Office	16,344		15,916		2.7		32,281		31,867		1.3
Multifamily	2,656		2,558		3.8		5,359		4,991		7.4
Mixed-Use	4,430		4,829		(8.3	)	10,155		10,321		(1.6	)
	$	40,566	$	40,761	(0.5	)%	$	81,867	$	81,844	—	%



Second Quarter 2014 Supplemental Information	Page 13




NOI BY REGION



(Unaudited, amounts in thousands)	Three Months Ended June 30, 2014
	Retail			Office			Multifamily		Mixed-Use			Total
Southern California
NOI, GAAP basis ⁽¹⁾	$	7,161		$	4,456		$	2,656	$	—		$	14,273
Net effect of straight-line rents ⁽²⁾	(92		)	(131		)	—		—			(223		)
Amortization of net above (below) market rents ⁽³⁾	(286		)	15			—		—			(271		)
Net effect of other lease intangibles ⁽⁴⁾	—			92			—		—			92
NOI, cash basis	6,783			4,432			2,656		—			13,871
Northern California
NOI, GAAP basis ⁽¹⁾	2,588			4,477			—		—			7,065
Net effect of straight-line rents ⁽²⁾	(1		)	(221		)	—		—			(222		)
Amortization of net above (below) market rents ⁽³⁾	(78		)	(179		)	—		—			(257		)
Net effect of other lease intangibles ⁽⁴⁾	—			(31		)	—		—			(31		)
NOI, cash basis	2,509			4,046			—		—			6,555
Hawaii
NOI, GAAP basis ⁽¹⁾	4,251			—			—		4,430			8,681
Net effect of straight-line rents ⁽²⁾	—			—			—		(40		)	(40		)
Amortization of net above (below) market rents ⁽³⁾	47			—			—		136			183
Net effect of other lease intangibles ⁽⁴⁾	—			—			—		(25		)	(25		)
NOI, cash basis	4,298			—			—		4,501			8,799
Oregon
NOI, GAAP basis ⁽¹⁾	—			3,445			—		—			3,445
Net effect of straight-line rents ⁽²⁾	—			(138		)	—		—			(138		)
Amortization of net above (below) market rents ⁽³⁾	—			55			—		—			55
NOI, cash basis	—			3,362			—		—			3,362
Texas
NOI, GAAP basis ⁽¹⁾	3,122			—			—		—			3,122
Net effect of straight-line rents ⁽²⁾	28			—			—		—			28
Amortization of net above (below) market rents ⁽³⁾	(56		)	—			—		—			(56		)
NOI, cash basis	3,094			—			—		—			3,094
Washington
NOI, GAAP basis ⁽¹⁾	—			3,970			—		—			3,970
Net effect of straight-line rents ⁽²⁾	—			(85		)	—		—			(85		)
Amortization of net above (below) market rents ⁽³⁾	—			(309		)	—		—			(309		)
NOI, cash basis	—			3,576			—		—			3,576
Total
NOI, GAAP basis ⁽¹⁾	17,122			16,348			2,656		4,430			40,556
Net effect of straight-line rents ⁽²⁾	(65		)	(575		)	—		(40		)	(680		)
Amortization of net above (below) market rents ⁽³⁾	(373		)	(418		)	—		136			(655		)
Net effect of other lease intangibles ⁽⁴⁾	—			61			—		(25		)	36
NOI, cash basis	$	16,684		$	15,416		$	2,656	$	4,501		$	39,257

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)	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.



Second Quarter 2014 Supplemental Information	Page 14




NOI BREAKDOWN



Three Months Ended June 30, 2014
Portfolio NOI, Cash Basis Breakdown

Portfolio Diversification by Geographic Region		Portfolio Diversification by Segment



Portfolio NOI, GAAP Basis Breakdown

Portfolio Diversification by Geographic Region		Portfolio Diversification by Segment



Second Quarter 2014 Supplemental Information	Page 15




PROPERTY REVENUE AND OPERATING EXPENSES



(Unaudited, amounts in thousands)	Three Months Ended June 30, 2014
			Additional						Property
			Property			Billed Expense			Operating
Property	Base Rent ⁽¹⁾		Income ⁽²⁾			Reimbursements ⁽³⁾			Expenses ⁽⁴⁾
Retail Portfolio
Carmel Country Plaza	$	873	$	20		$	194		$	(175	)
Carmel Mountain Plaza	2,791		40			743			(760		)
South Bay Marketplace	555		(1		)	192			(180		)
Rancho Carmel Plaza	170		10			50			(78		)
Lomas Santa Fe Plaza	1,156		10			224			(476		)
Solana Beach Towne Centre	1,393		19			527			(486		)
Del Monte Center	2,237		241			831			(1,088		)
Geary Marketplace	292		—			128			(132		)
The Shops at Kalakaua	425		22			37			(66		)
Waikele Center	3,902		275			1,150			(1,405		)
Alamo Quarry Market	3,259		60			1,351			(1,576		)
Subtotal Retail Portfolio	$	17,053	$	696		$	5,427		$	(6,422	)
Office Portfolio
Torrey Reserve Campus ⁽⁵⁾	$	3,800	$	543		$	96		$	(937	)
Solana Beach Corporate Centre	1,642		16			83			(455		)
The Landmark at One Market	5,065		26			(233		)	(1,291		)
One Beach Street	655		9			66			(251		)
First & Main	2,210		142			146			(706		)
Lloyd District Portfolio ⁽⁵⁾	2,405		347			34			(1,190		)
City Center Bellevue	3,898		616			340			(1,273		)
Subtotal Office Portfolio	$	19,675	$	1,699		$	532		$	(6,103	)
Multifamily Portfolio
Loma Palisades	$	2,666	$	202		$	—		$	(982	)
Imperial Beach Gardens	688		59			—			(249		)
Mariner's Point	309		35			—			(137		)
Santa Fe Park RV Resort	234		17			—			(186		)
Subtotal Multifamily Portfolio	$	3,897	$	313		$	—		$	(1,554	)



Second Quarter 2014 Supplemental Information	Page 16




PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED)



(Unaudited, amounts in thousands)	Three Months Ended June 30, 2014
			Additional				Property
			Property		Billed Expense		Operating
Property	Base Rent ⁽¹⁾		Income ⁽²⁾		Reimbursements ⁽³⁾		Expenses ⁽⁴⁾
Mixed-Use Portfolio
Waikiki Beach Walk - Retail	$	2,589	$	963	$	946	$	(1,660	)
Waikiki Beach Walk - Embassy Suites™	7,043		525		—		(5,905		)
Subtotal Mixed-Use Portfolio	$	9,632	$	1,488	$	946	$	(7,565	)
Total	$	50,257	$	4,196	$	6,905	$	(21,644	)

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 June 30, 2014 (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 approximately $55 and $387, respectively, for the three months ended June 30, 2014. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended June 30, 2014. 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). There were no abatements for our multifamily portfolio for the three months ended June 30, 2014. For Waikiki Beach Walk - Embassy Suites ^TM, base rent is equal to the actual room revenue for the three months ended June 30, 2014.


(2)	Represents additional property-related income for the three months ended June 30, 2014, 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 June 30, 2014.


(4)	Represents property operating expenses for the three months ended June 30, 2014. 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 leases at Torrey Reserve Campus and Lloyd District Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent and abatements were both $197 for the three months ended June 30, 2014.



Second Quarter 2014 Supplemental Information	Page 17




SEGMENT CAPITAL EXPENDITURES



(Unaudited, amounts in thousands)	Three Months Ended June 30, 2014
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	$	853	$	109	$	962	$	105	$	58	$	1,125
Office Portfolio	1,666		1,719		3,385		4,978		227		8,590
Multifamily Portfolio	—		217		217		—		19,546		19,763
Mixed-Use Portfolio	—		2,115		2,115		—		—		2,115
Total	$	2,519	$	4,160	$	6,679	$	5,083	$	19,831	$	31,593



	Six Months Ended June 30, 2014
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	$	1,586	$	293	$	1,879	$	676	$	76	$	2,631
Office Portfolio	4,042		3,551		7,593		7,574		514		15,681
Multifamily Portfolio	—		327		327		—		41,313		41,640
Mixed-Use Portfolio	70		2,867		2,937		—		—		2,937
Total	$	5,698	$	7,038	$	12,736	$	8,250	$	41,903	$	62,889



Second Quarter 2014 Supplemental Information	Page 18




SUMMARY OF OUTSTANDING DEBT



(Unaudited, amounts in thousands)	Amount
	Outstanding at					Annual Debt			Balance at
Debt	June 30, 2014			Interest Rate		Service		Maturity Date	Maturity
Waikele Center ⁽¹⁾	$	140,700		5.15	%	$	143,777	November 1, 2014	$	140,700
The Shops at Kalakaua ⁽¹⁾	19,000			5.45	%	19,966		May 1, 2015	19,000
The Landmark at One Market ⁽¹⁾⁽²⁾	133,000			5.61	%	7,558		July 5, 2015	133,000
Del Monte Center ⁽¹⁾	82,300			4.93	%	4,121		July 8, 2015	82,300
First & Main⁽¹⁾	84,500			3.97	%	3,397		July 1, 2016	84,500
Imperial Beach Gardens ⁽¹⁾	20,000			6.16	%	1,250		September 1, 2016	20,000
Mariner's Point ⁽¹⁾	7,700			6.09	%	476		September 1, 2016	7,700
South Bay Marketplace ⁽¹⁾	23,000			5.48	%	1,281		February 10, 2017	23,000
Waikiki Beach Walk - Retail ⁽¹⁾	130,310			5.39	%	7,117		July 1, 2017	130,310
Solana Beach Corporate Centre III-IV ⁽³⁾	36,590			6.39	%	2,798		August 1, 2017	35,136
Loma Palisades ⁽¹⁾	73,744			6.09	%	4,553		July 1, 2018	73,744
One Beach Street ⁽¹⁾	21,900			3.94	%	875		April 1, 2019	21,900
Torrey Reserve - North Court ⁽³⁾	21,228			7.22	%	1,836		June 1, 2019	19,443
Torrey Reserve - VCI, VCII, VCIII⁽³⁾	7,151			6.36	%	560		June 1, 2020	6,439
Solana Beach Corporate Centre I-II ⁽³⁾	11,389			5.91	%	855		June 1, 2020	10,169
Solana Beach Towne Centre ⁽³⁾	37,963			5.91	%	2,849		June 1, 2020	33,898
City Center Bellevue ⁽¹⁾	111,000			3.98	%	4,479		November 1, 2022	111,000
Total / Weighted Average	$	961,475		5.22	%	$	207,748		$	952,239
Unamortized fair value adjustment	(8,628		)
Secured Notes Payable	$	952,847

Term Loan ⁽⁴⁾	$	100,000

Notes:


(1)	Interest only.


(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 30-year amortization schedule.


(4)	The term loan matures in January 2016 and we have three 12-month options to extend its maturity to 2019. At June 30, 2014, the all-in interest rate (including interest rate swap costs) on our outstanding term loan was 3.08%.



Second Quarter 2014 Supplemental Information	Page 19




MARKET CAPITALIZATION



(Unaudited, amounts in thousands, except per share data)

Market data	June 30, 2014
Common shares outstanding	42,615
Common units outstanding	17,905
Common shares and common units outstanding	60,520
Market price per common share	$	34.55
Equity market capitalization	$	2,090,966
Total debt	$	1,061,475
Total market capitalization	$	3,152,441
Less: Cash on hand	$	(78,859	)
Total enterprise value	$	3,073,582
Total assets, gross	$	2,234,183
Total unencumbered assets, gross	$	616,575

Total debt/Total capitalization	33.7		%
Total debt/Total enterprise value	34.5		%
Net debt/Total enterprise value⁽¹⁾	32.0		%
Total debt/Total assets, gross	47.5		%
Net debt/Total assets, gross ⁽¹⁾	44.0		%
Total unencumbered assets, gross/Unsecured debt	616.6		%

Total debt/EBITDA ⁽²⁾⁽³⁾	7.2		x
Net debt/EBITDA ^(1)(2)(3)	6.7		x
Interest coverage ratio ⁽⁴⁾	2.7		x
Fixed charge coverage ratio ⁽⁴⁾	2.7		x

Notes:


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


(2)	See Glossary of Terms for discussion of EBITDA.


(3)	As used here, EBITDA represents the actual for the three months ended June 30, 2014 annualized.


(4)	Calculated as EBITDA divided by interest on borrowed funds, including capitalized interest and excluding debt fair value adjustments and loan fee amortization.



Second Quarter 2014 Supplemental Information	Page 20




SUMMARY OF DEVELOPMENT OPPORTUNITIES



Our portfolio has numerous potential opportunities to create future shareholder value. These opportunities could be subject to government approvals, lender consents, tenant consents, market c 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.

In-Process Development Projects

							Project Costs (in thousands) ⁽²⁾
		Start Date	Estimated Completion Date	Estimated Stabilization Date ⁽¹⁾	Estimated Rentable Square Feet	Multifamily Units	Three Months	Six Months	Cost Incurred to Date	Total Estimated Investment	Estimated Stabilized Yield⁽³⁾
							Ended	Ended
Property	Location						June 30, 2014	June 30, 2014
Office Property:
Torrey Reserve III & IV	San Diego, CA	2012	2014	2015	81,500	N/A	$3,772	$4,687	$24,488	$34,100	8.60%
Sorrento Pointe	San Diego, CA	2014	2016	2017	88,000	N/A	$108	$286	$6,901	$46,231	8.25% - 9.25%

Mixed Use Property:
Lloyd District Portfolio	Portland, OR	2013	2015	2017	47,000	657	$19,022	$40,968	$71,888	$191,828	6.25% - 7.25%



Development/Redevelopment Pipeline
Property	Property Type	Location	Estimated Square Footage	Multifamily Units
Solana Beach Corporate Centre (Building 5)	Retail	Solana Beach, CA	10,000	N/A
Lomas Santa Fe Plaza	Retail	Solana Beach, CA	45,000	N/A
Solana Beach - Highway 101 ⁽⁴⁾	Mixed Use	Solana Beach, CA	48,000	36

Notes:


(1)	Based on management's estimation of stabilized occupancy (90%).


(2)	For all properties, project costs exclude capitalized interest cost which is calculated in accordance with Accounting Standards Codification 835-20-50-1. In addition, for Torrey Reserve III & IV and Lloyd District Portfolio, project costs exclude allocated land costs.


(3)	The estimated stabilized yield is calculated based on total estimated project costs, as defined above, when the project has reached stabilized occupancy.


(4)	Represents commercial portion of development opportunity for Solana Beach - Highway 101.



Second Quarter 2014 Supplemental Information	Page 21

PORTFOLIO DATA



Second Quarter 2014 Supplemental Information	Page 22




PROPERTY REPORT



As of June 30, 2014				Retail and Office Portfolios
				Net				Annualized
			Number	Rentable				Base Rent
		Year Built/	of	Square	Percentage	Annualized		per Leased
Property	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾	Base Rent ⁽³⁾		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	96.2%	$	3,499,533	$46.58		Sharp Healthcare, San Diego County Credit Union
Carmel Mountain Plaza ⁽⁷⁾	San Diego, CA	1994	13	520,228	99.5	11,702,701		22.61	Sears	Sports Authority, Saks Fifth Avenue Off 5th
South Bay Marketplace ⁽⁷⁾	San Diego, CA	1997	9	132,877	100.0	2,219,472		16.70		Ross Dress for Less, Grocery Outlet
Rancho Carmel Plaza	San Diego, CA	1993	3	30,421	78.0	683,961		28.82		Oggi's Pizza & Brewing Co., Saloncentric
Lomas Santa Fe Plaza	Solana Beach, CA	1972/1997	9	209,569	97.2	4,630,663		22.73		Vons, Home Goods
Solana Beach Towne Centre	Solana Beach, CA	1973/2000/2004	12	246,730	97.9	5,536,243		22.92		Dixieline Probuild, Marshalls
Del Monte Center ⁽⁷⁾	Monterey, CA	1967/1984/2006	16	675,678	99.2	9,596,656		14.32	Macy's, KLA Monterrey	Century Theatres, Macy's Furniture Gallery
Geary Marketplace	Walnut Creek, CA	2012	3	35,156	100.0	1,167,310		33.20		Sprouts Farmer Market, Freebirds Wild Burrito
The Shops at Kalakaua	Honolulu, HI	1971/2006	3	11,671	100.0	1,819,860		155.93		Hawaii Beachware & Fashion, Diesel U.S.A. Inc.
Waikele Center	Waipahu, HI	1993/2008	9	537,728	99.2	15,668,165		29.37	Lowe's, Kmart, Sports Authority	UFC Gym, Old Navy
Alamo Quarry Market ⁽⁷⁾	San Antonio, TX	1997/1999	16	589,501	99.5	13,053,151		22.25	Regal Cinemas	Bed Bath & Beyond, Whole Foods Market
Subtotal/Weighted Average Retail Portfolio			102	3,067,657	98.8%	$	69,577,715	$22.96
Office Properties
Torrey Reserve Campus	San Diego, CA	1996-2000	10	476,020	89.4%	$	15,674,846	$36.83
Solana Beach Corporate Centre	Solana Beach, CA	1982/2005	4	212,165	90.2	6,597,292		34.47
The Landmark at One Market ⁽⁸⁾	San Francisco, CA	1917/2000	1	421,934	100.0	20,425,297		48.41
One Beach Street	San Francisco, CA	1924/1972/1987/1992	1	97,614	84.2	2,618,097		31.85
First & Main	Portland, OR	2010	1	360,813	80.4	8,751,722		30.17
Lloyd District Portfolio	Portland, OR	1940-2011	6	581,208	76.6	9,217,697		20.70
City Center Bellevue	Bellevue, WA	1987	1	495,038	97.6	15,706,079		32.51
Subtotal/Weighted Average Office Portfolio			24	2,644,792	88.5%	$	78,991,030	$33.75
Total/Weighted Average Retail and Office Portfolio			126	5,712,449	94.0%	$	148,568,745	$27.67



Second Quarter 2014 Supplemental Information	Page 23




PROPERTY REPORT (CONTINUED)



As of June 30, 2014
									Average
			Number						Monthly
		Year Built/	of		Percentage		Annualized		Base Rent per
Property	Location	Renovated	Buildings	Units	Leased ⁽²⁾		Base Rent ⁽³⁾		Leased Unit ⁽⁴⁾
Loma Palisades	San Diego, CA	1958/2001-2008	80	548	100.0%		$	10,604,556	$	1,613
Imperial Beach Gardens	Imperial Beach, CA	1959/2008-present	26	160	100.0		2,769,432		$	1,442
Mariner's Point	Imperial Beach, CA	1986	8	88	100.0		1,279,980		$	1,212
Santa Fe Park RV Resort ⁽⁹⁾	San Diego, CA	1971/2007-2008	1	126	91.0		1,063,188		$	773
Total/Weighted Average Multifamily Portfolio			115	922	98.8%		$	15,717,156	$	1,438

Mixed-Use Portfolio
				Net					Annualized
			Number	Rentable					Base Rent
		Year Built/	of	Square	Percentage		Annualized		per Leased		Retail
Retail Portion	Location	Renovated	Buildings	Feet ⁽¹⁾	Leased ⁽²⁾		Base Rent ⁽³⁾		Square Foot ⁽⁴⁾		Anchor Tenant(s) ⁽⁵⁾	Other Principal Retail Tenants ⁽⁶⁾
Waikiki Beach Walk - Retail	Honolulu, HI	2006	3	96,707	99.5	%	$	10,461,500	$	108.72		Yard House, Roy's

									Annualized
			Number						Revenue per
		Year Built/	of		Average		Average		Available
Hotel Portion	Location	Renovated	Buildings	Units	Occupancy ⁽¹⁰⁾		Daily Rate⁽¹⁰⁾		Room ⁽¹⁰⁾
Waikiki Beach Walk - Embassy Suites™	Honolulu, HI	2008	2	369	71.3	%	$	294.07	$	262.16

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. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.


(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 June 30, 2014, including leases which may not have commenced as of June 30, 2014. Percentage leased for our multifamily properties includes total units rented as of June 30, 2014.


(3)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2014 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 June 30, 2014. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of June 30, 2014.


(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	7	132,112	$	1,275,846
South Bay Marketplace	1	2,824	$	91,320
Del Monte Center	2	295,100	$	201,291
Alamo Quarry Market	4	31,994	$	470,075

(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 June 30, 2014, the highest average monthly occupancy rate for this property was 99%, occurring in July 2013. 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 three months ended June 30, 2014, 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 three months ended June 30, 2014 by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the three months ended June 30, 2014 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. Offline rooms in connection with the room refresh at Embassy Suites Hotel is adjusted for in calculating annualized revenue per available room for the second quarter of 2014.



Second Quarter 2014 Supplemental Information	Page 24




RETAIL LEASING SUMMARY



As of June 30, 2014
Total Lease Summary - Comparable ⁽¹⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	18	100%	81,909	$31.80	$27.78		$	329,242		14.5	%	25.0	%	8.3	$	2,799,260	$34.18
1st Quarter 2014	15	100%	62,667	$29.15	$26.55		$	162,804		9.8	%	20.9	%	5.8	$	529,318	$8.45
4th Quarter 2013	14	100%	79,122	$36.61	$36.60		$	373		—	%	6.4	%	6.6	$	240,100	$3.03
3rd Quarter 2013	23	100%	53,709	$33.68	$34.08		$	(21,357	)	(1.2	)%	4.5	%	3.7	$	333,800	$6.21
Total 12 months	70	100%	277,407	$32.94	$31.24		$	471,062		5.4	%	13.7	%	6.4	$	3,902,478	$14.07

New Lease Summary - Comparable ⁽¹⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	5	28%	10,424	$36.55	$28.23		$	86,749		29.5	%	37.3	%	7.6	$	669,260	$64.20
1st Quarter 2014	1	7%	1,609	$42.00	$40.76		$	1,996		3.0	%	3.0	%	5.0	$	16,090	$10.00
4th Quarter 2013	4	29%	12,377	$77.23	$58.46		$	232,378		32.1	%	36.3	%	8.0	$	240,100	$19.40
3rd Quarter 2013	3	13%	5,790	$38.49	$44.97		$	(37,565	)	(14.4	)%	(14.5	)%	3.2	$	313,800	$54.20
Total 12 months	13	19%	30,200	$53.88	$44.50		$	283,558		21.1	%	25.5	%	6.8	$	1,239,250	$41.03

Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	13	72%	71,485	$31.11	$27.71		$	242,493		12.2	%	23.2	%	8.4	$	2,130,000	$29.80
1st Quarter 2014	14	93%	61,058	$28.81	$26.18		$	160,808		10.1	%	21.6	%	5.9	$	513,228	$8.41
4th Quarter 2013	10	71%	66,745	$29.07	$32.55		$	(232,005	)	(10.7	)%	(4.4	)%	6.3	$	—	$0.00
3rd Quarter 2013	20	87%	47,919	$33.10	$32.76		$	16,208		1.0	%	7.7	%	3.7	$	20,000	$0.42
Total 12 months	57	81%	247,207	$30.38	$29.62		$	187,504		2.6	%	11.4	%	6.3	$	2,663,228	$10.78

Total Lease Summary - Comparable and Non-Comparable
	Number of Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	25	148,960	$26.52	8.9	$	4,712,117	$31.63
1st Quarter 2014	15	62,667	$29.15	5.8	$	529,318	$8.45
4th Quarter 2013	21	128,422	$32.37	7.6	$	1,704,715	$13.27
3rd Quarter 2013	26	59,433	$34.49	4.1	$	448,940	$7.55
Total 12 months	87	399,482	$30.00	7.3	$	7,395,090	$18.51

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.



Second Quarter 2014 Supplemental Information	Page 25




OFFICE LEASING SUMMARY



As of June 30, 2014
Total Lease Summary - Comparable ⁽¹⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	9	100%	33,680	$36.35	$38.93		$	(87,152	)	(6.6	)%	(4.8	)%	3.4	$	203,965	$6.06
1st Quarter 2014	4	100%	4,406	$36.88	$33.19		$	16,274		11.1	%	13.8	%	3.3	$	30,626	$6.95
4th Quarter 2013	16	100%	163,157	$28.76	$28.89		$	(21,093	)	(0.4	)%	12.3	%	7.2	$	2,693,623	$16.51
3rd Quarter 2013	11	100%	52,805	$31.44	$31.32		$	5,875		0.4	%	3.7	%	5.8	$	412,943	$7.82
Total 12 months	40	100%	254,048	$30.46	$30.80		$	(86,096	)	(1.1	)%	7.5	%	6.3	$	3,341,157	$13.15

New Lease Summary - Comparable ⁽¹⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	4	44%	14,459	$37.94	$46.10		$	(117,911	)	(17.7	)%	(20.0	)%	4.7	$	156,430	$10.82
1st Quarter 2014	2	50%	2,469	$35.58	$32.67		$	7,192		8.9	%	10.3	%	4.3	$	30,626	$12.40
4th Quarter 2013	5	31%	68,796	$25.81	$27.57		$	(120,948	)	(6.4	)%	12.3	%	9.8	$	1,981,147	$28.80
3rd Quarter 2013	2	18%	14,930	$35.74	$32.28		$	51,693		10.7	%	12.8	%	9.1	$	134,327	$9.00
Total 12 months	13	33%	100,654	$29.27	$31.06		$	(179,974	)	(5.8	)%	4.7	%	8.8	$	2,302,530	$22.88

Renewal Lease Summary - Comparable ⁽¹⁾⁽⁵⁾
	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 Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	5	56%	19,221	$35.15	$33.55		$	30,759		4.8	%	11.9	%	2.3	$	47,535	$2.47
1st Quarter 2014	2	50%	1,937	$38.54	$33.86		$	9,082		13.8	%	18.3	%	2.0	$	—	$0.00
4th Quarter 2013	11	69%	94,361	$30.91	$29.85		$	99,855		3.5	%	12.3	%	5.4	$	712,476	$7.55
3rd Quarter 2013	9	82%	37,875	$29.74	$30.95		$	(45,818	)	(3.9	)%	—	%	4.5	$	278,616	$7.36
Total 12 months	27	68%	153,394	$31.25	$30.64		$	93,878		2.0	%	9.3	%	4.7	$	1,038,627	$6.77

Total Lease Summary - Comparable and Non-Comparable
	Number of Leases Signed	Net Rentable Square Feet Signed	Contractual Rent Per Sq. Ft. ⁽²⁾	Weighted Average Lease Term ⁽⁴⁾	Tenant Improvements & Incentives		Tenant Improvements & Incentives Per Sq. Ft.


Quarter
2nd Quarter 2014	16	76,843	$37.23	3.2	$	1,225,844	$15.95
1st Quarter 2014	9	28,773	$40.57	5.5	$	930,102	$32.33
4th Quarter 2013	23	198,307	$29.35	7.1	$	4,207,999	$21.22
3rd Quarter 2013	19	79,317	$32.87	4.7	$	910,994	$11.49
Total 12 months	67	383,240	$32.50	5.7	$	7,274,939	$18.98

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.



Second Quarter 2014 Supplemental Information	Page 26




MULTIFAMILY LEASING SUMMARY



As of June 30, 2014

Lease Summary - Loma Palisades
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
2nd Quarter 2014	548	100.0%	$10,604,556	$1,613
1st Quarter 2014	548	100.0%	$10,600,776	$1,612
4th Quarter 2013	539	98.4%	$10,439,364	$1,613
3rd Quarter 2013	546	99.6%	$10,306,416	$1,574

Lease Summary - Imperial Beach Gardens
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
2nd Quarter 2014	160	100.0%	$2,769,432	$1,442
1st Quarter 2014	160	100.0%	$2,737,956	$1,426
4th Quarter 2013	156	97.5%	$2,692,248	$1,438
3rd Quarter 2013	160	100.0%	$2,758,512	$1,437

Lease Summary - Mariner's Point
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
2nd Quarter 2014	88	100.0%	$1,279,980	$1,212
1st Quarter 2014	87	98.9%	$1,246,392	$1,193
4th Quarter 2013	88	100.0%	$1,203,624	$1,140
3rd Quarter 2013	88	100.0%	$1,231,584	$1,166

Lease Summary - Santa Fe Park RV Resort
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
2nd Quarter 2014	115	91.0%	$1,063,188	$773
1st Quarter 2014	93	74.0%	$813,420	$727
4th Quarter 2013	106	84.0%	$828,720	$652
3rd Quarter 2013	98	77.8%	$789,708	$671

Total Multifamily Lease Summary
	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
Quarter	Number of Leased Units	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Average Monthly Base Rent per Leased Unit ⁽³⁾
2nd Quarter 2014	911	98.8%	$15,717,156	$1,438
1st Quarter 2014	888	96.3%	$15,398,544	$1,445
4th Quarter 2013	889	96.4%	$15,163,956	$1,422
3rd Quarter 2013	892	96.7%	$15,086,220	$1,410

Notes:


(1)	Percentage leased for our multifamily properties includes total units rented as of each respective quarter end date.


(2)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) as of each respective quarter end date.


(3)	Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of each respective quarter end date.



Second Quarter 2014 Supplemental Information	Page 27




MIXED-USE LEASING SUMMARY



As of June 30, 2014

Lease Summary - Retail Portion
	Number of Leased Square Feet	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Annualized base Rent per Leased Square Foot ⁽³⁾
Quarter	Number of Leased Square Feet	Percentage leased ⁽¹⁾	Annualized Base Rent ⁽²⁾	Annualized base Rent per Leased Square Foot ⁽³⁾
2nd Quarter 2014	96,179	99.5%	$10,461,500	$109
1st Quarter 2014	95,682	98.9%	$10,163,129	$106
4th Quarter 2013	94,623	97.8%	$10,235,236	$108
3rd Quarter 2013	94,692	97.9%	$10,130,130	$107

Lease Summary - Hotel Portion
	Number of Leased Units	Average Occupancy ⁽⁴⁾	Average Daily Rate ⁽⁴⁾	Annualized Revenue per Available Room ⁽⁴⁾
Quarter	Number of Leased Units	Average Occupancy ⁽⁴⁾	Average Daily Rate ⁽⁴⁾	Annualized Revenue per Available Room ⁽⁴⁾
2nd Quarter 2014	263	71.3%	$294	$262
1st Quarter 2014	333	90.2%	$300	$271
4th Quarter 2013	305	82.6%	$290	$239
3rd Quarter 2013	328	88.9%	$331	$294

Notes:


(1)	Percentage leased for mixed-use property includes square footage under leases as of June 30, 2014, including leases which may not have commenced as of June 30, 2014.


(2)	Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2014 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.


(3)	Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of June 30, 2014.

(4)

Average occupancy represents the percentage of available units that were sold during the three months ended June 30, 2014, 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 each respective quarter period by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for each respective quarter period 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. Offline rooms in connection with the room refresh at Embassy Suites Hotel is adjusted for in calculating annualized revenue per available room for the second quarter of 2014.



Second Quarter 2014 Supplemental Information	Page 28




LEASE EXPIRATIONS



As of June 30, 2014
Assumes no exercise of lease options
	Office							Retail							Mixed-Use (Retail Portion Only)						Total
			% of		% of		Annualized			% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring		Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	32,780		1.2	%	0.6	%	$10.05	17,129		0.6	%	0.3	%	$7.05	2,699	2.8	%	—	%	—	52,608	0.9	%	$8.56
2014	70,815		2.7		1.2		$26.76	61,826		2.0		1.1		$29.73	3,122	3.2		0.1		$166.80	135,763	2.3		$31.33
2015	268,680		10.2		4.6		$34.68	233,454		7.6		4.0		$27.18	10,665	11.0		0.2		$229.63	512,799	8.8		$35.32
2016	279,173		10.6		4.8		$31.44	195,458		6.4		3.4		$34.71	12,750	13.2		0.2		$139.95	487,381	8.4		$35.59
2017	369,794		14.0		6.4		$35.78	376,420		12.3		6.5		$24.91	8,548	8.8		0.1		$148.90	754,762	13.0		$31.64
2018	210,012	⁽²⁾	7.9		3.6		$37.26	1,046,913		34.1		18.0		$19.34	10,767	11.1		0.2		$123.84	1,267,692	21.8		$23.20
2019	291,313	^{(3) (4)}	11.0		5.0		$38.57	332,839		10.8		5.7		$25.65	15,279	15.8		0.3		$77.65	639,431	11.0		$32.78
2020	278,001		10.5		4.8		$39.75	158,899		5.2		2.7		$12.58	19,265	19.9		0.3		$44.83	456,165	7.9		$30.50
2021	215,469		8.1		3.7		$37.27	45,011		1.5		0.8		$50.95	—	—		—		—	260,480	4.5		$39.63
2022	9,364		0.4		0.2		$20.00	150,468		4.9		2.6		$30.81	11,464	11.9		0.2		$72.56	171,296	2.9		$33.01
2023	96,281		3.6		1.7		$26.91	57,170		1.9		1.0		$24.60	—	—		—		—	153,451	2.6		$26.05
Thereafter	147,303	⁽⁵⁾	5.6		2.5		$30.71	278,161	⁽⁶⁾	9.1		4.8		$21.54	1,260	1.3		—		$174.00	426,724	7.3		$25.16
Signed Leases Not Commenced	70,523		2.7		1.2		—	78,594		2.6		1.4		—	360	0.4		—		—	149,477	2.6		—
Available	305,284		11.5		5.3		—	35,315		1.2		0.6		—	528	0.5		—		—	341,127	5.9		—
Total ⁽⁷⁾	2,644,792		100.0	%	45.5	%	$29.87	3,067,657		100.0	%	52.8	%	$22.68	96,707	100.0	%	1.7	%	$108.18	5,809,156	100.0	%	$27.38

Assumes all lease options are exercised
	Office							Retail							Mixed-Use (Retail Portion Only)						Total
			% of		% of		Annualized			% of		% of		Annualized		% of		% of		Annualized		% of		Annualized
	Expiring		Office		Total		Base Rent	Expiring		Retail		Total		Base Rent	Expiring	Mixed-Use		Total		Base Rent	Expiring	Total		Base Rent
Year	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.		Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Sq. Ft.		Per Sq. Ft.⁽¹⁾	Sq. Ft.	Sq. Ft.		Per Sq. Ft.⁽¹⁾
Month to Month	32,780		1.2	%	0.6	%	$10.05	17,129		0.6	%	0.3	%	$7.05	2,699	2.8	%	—	%	—	52,608	0.9	%	$8.56
2014	57,576		2.2		1.0		$29.70	45,422		1.5		0.8		$29.36	3,122	3.2		0.1		$166.80	106,120	1.8		$33.59
2015	142,581		5.4		2.5		$31.16	77,238		2.5		1.3		$32.51	4,451	4.6		0.1		$194.22	224,270	3.9		$34.86
2016	196,461		7.4		3.4		$30.10	63,309		2.1		1.1		$30.83	8,722	9.0		0.2		$145.98	268,492	4.6		$34.04
2017	57,003		2.2		1.0		$37.29	129,497		4.2		2.2		$28.63	7,508	7.8		0.1		$143.86	194,008	3.3		$35.63
2018	91,857		3.5		1.6		$32.85	92,374		3.0		1.6		$29.86	10,767	11.1		0.2		$123.84	194,998	3.4		$36.46
2019	72,275	⁽⁴⁾	2.7		1.2		$38.60	91,012		3.0		1.6		$30.89	3,589	3.7		0.1		$147.48	166,876	2.9		$36.74
2020	152,774		5.8		2.6		$32.81	171,500		5.6		3.0		$23.30	3,373	3.5		0.1		$97.84	327,647	5.6		$28.50
2021	94,447	⁽²⁾	3.6		1.6		$35.31	58,908		1.9		1.0		$55.75	10,242	10.6		0.2		$204.62	163,597	2.8		$53.27
2022	336,915		12.7		5.8		$36.09	87,098		2.8		1.5		$35.41	11,464	11.9		0.2		$72.56	435,477	7.5		$36.91
2023	142,146		5.4		2.4		$41.89	144,194		4.7		2.5		$32.41	—	—		—		—	286,340	4.9		$37.12
Thereafter	892,170	^{(3) (5)}	33.7		15.4		$36.09	1,976,067	⁽⁶⁾	64.4		34.0		$19.91	29,882	30.9		0.5		$53.63	2,898,119	49.9		$25.24
Signed Leases Not Commenced	70,523		2.7		1.2		—	78,594		2.6		1.4		—	360	0.4		—		—	149,477	2.6		—
Available	305,284		11.5		5.3		—	35,315		1.2		0.6		—	528	0.5		—		—	341,127	5.9		—
Total ⁽⁷⁾	2,644,792		100.0	%	45.5	%	$29.87	3,067,657		100.0	%	52.8	%	$22.68	96,707	100.0	%	1.7	%	$108.18	5,809,156	100.0	%	$27.38



Second Quarter 2014 Supplemental Information	Page 29




LEASE EXPIRATIONS (CONTINUED)



As of June 30, 2014

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 June 30, 2014 for the leases expiring during the applicable period by (ii) 12 months.


(2)	The expirations include 8,957 square feet currently leased by McDermott Will & Emery at Torrey Reserve Campus through November 30, 2014, for which Adamis Pharmaceuticals Corp. has signed an agreement to lease such space beginning December 1, 2014 through November 30, 2018 with an option to extend the lease through November 30, 2021.


(3)	The expirations include 16,087 square feet currently leased by McDermott Will & Emery at Torrey Reserve Campus through November 30, 2014, for which Troutman Sanders LP has signed an agreement to lease such space beginning December 1, 2014 through November 30, 2019 with options to extend the lease through November 30, 2024.


(4)	The expirations include 2,387 square feet currently leased to Tailored Mail at City Center Bellevue through July 31, 2014, for which N&M Management LLC has signed an agreement to lease such space beginning September 1, 2014 through August 31, 2019.


(5)	The expirations include 3,130 square feet currently leased to TICOR Title Insurance Company at Lloyd District Portfolio through May 31, 2017, for which Familycare, Inc. has signed an agreement to lease such space beginning August 1, 2017 through September 30, 2024.


(6)	The expirations include 1,200 square feet currently leased to TOGO's Eatery at Solana Beach Towne Centre through August 31, 2014 for which Which Wich Superior Sandwiches has signed an agreement to lease such space beginning January 15, 2015 through January 31, 2025 with an option to extend the lease through January 31, 2035.


(7)	Individual items may not add up to total due to rounding.



Second Quarter 2014 Supplemental Information	Page 30




PORTFOLIO LEASED STATISTICS



	At June 30, 2014						At June 30, 2013
Type	Size		Leased ⁽¹⁾		Leased %		Size		Leased ⁽¹⁾		Leased %
Overall Portfolio ⁽²⁾Statistics
Retail Properties (square feet)	3,067,657		3,032,342		98.8	%	3,068,645		2,963,511		96.6	%
Office Properties (square feet)	2,644,792		2,339,508		88.5	%	2,645,567		2,456,596		92.9	%
Multifamily Properties (units)	922		911		98.8	%	922		901		97.7	%
Mixed-Use Properties (square feet)	96,707		96,179		99.5	%	96,707		90,664		93.8	%
Mixed-Use Properties (units)	369		298	⁽³⁾	80.7	%	369		327	⁽³⁾	88.6	%

Same-Store⁽²⁾ Statistics
Retail Properties (square feet)	3,067,657		3,032,342		98.8	%	3,033,489		2,928,355		96.5	%
Office Properties (square feet)	1,587,564	⁽⁴⁾	1,468,814		92.5	%	1,092,796	⁽⁴⁾	1,062,930		97.3	%
Multifamily Properties (units)	922		911		98.8	%	922		901		97.7	%
Mixed-Use Properties (square feet)	96,707		96,179		99.5	%	96,707		90,664		93.8	%
Mixed-Use Properties (units)	369		298	⁽³⁾	80.7	%	369		327	⁽³⁾	88.6	%

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)	Represents average occupancy for the six months ended June 30, 2014 and 2013.


(4)	The same-store portfolio excludes Torrey Reserve Campus and Lloyd District Portfolio due to significant redevelopment activity.



Second Quarter 2014 Supplemental Information	Page 31




TOP TENANTS - RETAIL



As of June 30, 2014
	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	5/31/2018	155,000	5.1	%	2.7	%	$	4,381,887	6.3	%	2.8	%
2	Kmart	Waikele Center	6/30/2018	119,590	3.9		2.1		4,185,650		6.0		2.6
3	Sports Authority	Waikele Center, Carmel Mountain Plaza,	7/18/2018 11/30/2018	90,722	3.0		1.6		2,133,950		3.1		1.3
4	Nordstrom Rack	Carmel Mountain Plaza, Alamo Quarry Market	9/30/2022 10/31/2022	69,047	2.3		1.2		1,990,316		2.9		1.3
5	Sprouts Farmers Market	Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace	6/30/2019 3/31/2025 9/30/2032	71,431	2.3		1.2		1,789,248		2.6		1.1
6	Old Navy	South Bay Marketplace, Waikele Center, Alamo Quarry Market	4/30/2016 7/31/2016 9/30/2017	59,780	1.9		1.0		*		*		*
7	Vons	Lomas Santa Fe Plaza	12/31/2017	49,895	1.6		0.9		1,216,700		1.7		0.8
8	Marshalls	Solana Beach Towne Centre, Carmel Mountain Plaza	1/31/2015 1/31/2019	68,055	2.2		1.2		1,175,170		1.7		0.7
9	Regal Cinemas	Alamo Quarry Market	3/31/2018	72,447	2.4		1.2		1,122,929		1.6		0.7
10	Gap	Del Monte Center, Waikele Center, Alamo Quarry Market	9/20/2020 2/28/2022 4/30/2024	36,614	1.2		0.6		982,039		1.4		0.6
	Top 10 Retail Tenants Total			792,581	25.9	%	13.7	%	$	18,977,889	27.3	%	11.9	%



*	Data withheld at tenant's request.



Second Quarter 2014 Supplemental Information	Page 32




TOP TENANTS - OFFICE



As of June 30, 2014
	Tenant	Property	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	6/30/2019 4/30/2020 5/31/2021	254,118	9.6	%	4.4	%	$	12,766,040	16.2	%	8.0	%
2	Autodesk, Inc.	The Landmark at One Market	12/31/2015 12/31/2017	114,664	4.3		2.0		5,504,269		7.0		3.5
3	Veterans Benefits Administration	First & Main	8/31/2020	93,572	3.5		1.6		3,006,453		3.8		1.9
4	Insurance Company of the West	Torrey Reserve Campus	12/31/2016	81,040	3.1		1.4		2,598,814		3.3		1.6
5	Treasury Call Center	First & Main	8/31/2020	63,648	2.4		1.1		2,184,302		2.8		1.4
6	Caradigm USA LLC	City Center Bellevue	8/14/2017	68,956	2.6		1.2		2,166,598		2.7		1.4
7	HDR Engineering, Inc.	City Center Bellevue	12/31/2017	56,024	2.1		1.0		1,988,852		2.5		1.3
8	Alliant International University	One Beach Street	10/31/2019	64,161	2.4		1.1		1,796,968		2.3		1.1
9	Portland Energy Conservation	First & Main	1/31/2021	73,422	2.8		1.3		1,684,998		2.1		1.1
10	California Bank & Trust	Torrey Reserve Campus	2/29/2024	34,731	1.3		0.6		1,606,037		2.0		1.0
	Top 10 Office Tenants Total			904,336	34.1	%	15.7	%	$	35,303,331	44.7	%	22.3	%



Second Quarter 2014 Supplemental Information	Page 33

APPENDIX



Second Quarter 2014 Supplemental Information	Page 34




GLOSSARY OF TERMS

Earnings Before Interest, Taxes, Depreciation, and Amortization (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 and six months ended June 30, 2014 and 2013 is as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net income	$	5,351		$	4,564		$	12,009		$	9,429
Depreciation and amortization	18,209			16,953			34,550			33,966
Interest expense	13,439			14,744			27,071			29,480
Interest income	(50		)	(26		)	(98		)	(34		)
Income tax expense	(283		)	91			(171		)	388
EBITDA	$	36,666		$	36,326		$	73,361		$	73,229

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.



Second Quarter 2014 Supplemental Information	Page 35




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, lease termination fees, ground lease rental income and other property income) less property and related expenses (property expenses, ground lease expense, property marketing costs, real estate taxes and insurance). NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expense, other nonproperty income and losses, gains and losses from property dispositions, extraordinary items, tenant improvements and leasing commissions. 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						Six Months Ended
	June 30,						June 30,
Reconciliation of NOI to net income	2014			2013			2014			2013
Total NOI	$	40,556		$	40,752		$	81,863		$	81,846
General and administrative	(4,635		)	(4,426		)	(9,247		)	(8,627		)
Depreciation and amortization	(18,209		)	(16,953		)	(34,550		)	(33,966		)
Interest expense	(13,439		)	(14,744		)	(27,071		)	(29,480		)
Other income (expense), net	1,078			(65		)	1,014			(344		)
Net income	5,351			4,564			12,009			9,429
Net income attributable to restricted shares	(94		)	(133		)	(164		)	(265		)
Net loss attributable to unitholders in the Operating Partnership	(1,544		)	(1,354		)	(3,530		)	(2,849		)
Net income attributable to American Assets Trust, Inc. stockholders	$	3,713		$	3,077		$	8,315		$	6,315

Overall Portfolio: Includes all operating properties owned by us as of June 30, 2014.



Second Quarter 2014 Supplemental Information	Page 36




GLOSSARY OF TERMS (CONTINUED)

Same-Store Portfolio, Non-Same Store Portfolio and Redevelopment Same-Store: Information provided on a same-store basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, properties under development, properties classified as held for development and properties classified as discontinued operations. Information provided on a redevelopment same-store basis includes the results of properties undergoing significant redevelopment for the entirety or portion of both periods being compared. The following table shows the properties included in the same-store, non-same store and redevelopment same-store portfolio for the comparative periods presented.



	Comparison of Three Months Ended			Comparison of Six Months Ended
	June 30, 2014 to 2013			June 30, 2014 to 2013
	Same-Store	Non Same-Store	Redevelopment Same-Store	Same-Store	Non Same-Store	Redevelopment Same-Store
Retail Properties
Carmel Country Plaza	X		X	X		X
Carmel Mountain Plaza	X		X	X		X
South Bay Marketplace	X		X	X		X
Rancho Carmel Plaza	X		X	X		X
Lomas Santa Fe Plaza	X		X	X		X
Solana Beach Towne Centre	X		X	X		X
Del Monte Center	X		X	X		X
Geary Marketplace	X		X	X		X
The Shops at Kalakaua	X		X	X		X
Waikele Center	X		X	X		X
Alamo Quarry Market	X		X	X		X
Office Properties
Torrey Reserve Campus		X	X		X	X
Solana Beach Corporate Centre	X		X	X		X
The Landmark at One Market	X		X	X		X
One Beach Street	X		X	X		X
First & Main	X		X	X		X
Lloyd District Portfolio		X	X		X	X
City Center Bellevue	X		X	X		X
Multifamily Properties
Loma Palisades	X		X	X		X
Imperial Beach Gardens	X		X	X		X
Mariner's Point	X		X	X		X
Santa Fe Park RV Resort	X		X	X		X
Mixed-Use Properties
Waikiki Beach Walk - Retail	X		X	X		X
Waikiki Beach Walk - Embassy Suites™	X		X	X		X
Development Properties
Sorrento Pointe - Land		X			X
Torrey Reserve - Land		X			X
Solana Beach Corporate Centre - Land		X			X
Solana Beach - Highway 101 - Land		X			X
Lloyd District Portfolio - Land		X			X

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.



Second Quarter 2014 Supplemental Information	Page 37

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American Assets Trust, Inc. Reports

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