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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
For the three and nine months ended September 30, 2025, the CODM for the company was comprised of our President and Chief Executive Officer and our Chief Financial Officer.
Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. However, we have aggregated our properties into reportable segments as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies.
We operate in four reportable business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.
Regular reportable segment updates are provided directly to the CODM. These updates include the performance of our segments based on segment profit which is defined as property revenue less property expenses, and this serves as the profit or loss measure used by the CODM for performance assessment and resource allocation. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and the CODM in understanding the core operations of our properties. Segment profit 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.
Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.
A significant segment expense is a category of expenses and amounts regularly provided to the CODM that is included in the calculation of each reported measure of segment profit or loss. Further, the CODM will use this measure to assess segment performance in deciding how to allocate resources. Significant expenses included in the reportable segment profit or loss measure are presented by rental expenses and real estate taxes for each reportable segment. Rental expenses includes facilities service expense, utilities expense, repairs and maintenance expense, insurance expense and other costs.
The following table represents the significant segment expenses and operating activity within our reportable segments (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Total Office
Property revenue$52,293 $61,058 $153,992 $164,050 
Rental expenses11,813 11,014 33,091 31,273 
Real estate taxes5,380 4,500 15,415 14,178 
Property expense17,193 15,514 48,506 45,451 
Segment profit35,100 45,544 105,486 118,599 
Total Retail
Property revenue23,131 27,695 70,787 80,196 
Rental expenses3,422 4,275 10,964 13,470 
Real estate taxes3,102 3,613 8,899 10,539 
Property expense6,524 7,888 19,863 24,009 
Segment profit16,607 19,807 50,924 56,187 
Total Multifamily
Property revenue17,404 16,330 51,663 49,020 
Rental expenses6,490 5,634 17,741 15,925 
Real estate taxes1,981 1,889 5,714 5,404 
Property expense8,471 7,523 23,455 21,329 
Segment profit8,933 8,807 28,208 27,691 
Total Mixed-Use
Property revenue16,750 17,727 49,676 51,129 
Rental expenses10,043 10,438 29,950 30,039 
Real estate taxes1,066 1,042 3,151 3,012 
Property expense11,109 11,480 33,101 33,051 
Segment profit5,641 6,247 16,575 18,078 
Total segments’ profit$66,281 $80,405 $201,193 $220,555 
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Total segments’ profit$66,281 $80,405 $201,193 $220,555 
General and administrative(9,500)(9,068)(27,662)(26,647)
Depreciation and amortization(32,014)(33,529)(95,290)(94,757)
Interest expense, net(19,773)(18,229)(58,337)(50,773)
Gain on sale of real estate— — 44,476 — 
Other income, net927 1,739 2,769 12,857 
Net income5,921 21,318 67,149 61,235 
Net income attributable to restricted shares(207)(194)(616)(585)
Net income attributable to unitholders in the Operating Partnership(1,205)(4,467)(14,033)(12,829)
Net income attributable to American Assets Trust, Inc. stockholders$4,509 $16,657 $52,500 $47,821 
The following table shows net real estate and secured note payable balances for each of the reportable segments (in thousands):
September 30, 2025December 31, 2024
Net Real Estate
Office$1,588,085 $1,597,458 
Retail472,969 478,037 
Multifamily408,395 351,016 
Mixed-Use157,481 160,975 
$2,626,930 $2,587,486 
Secured Notes Payable (1)
Office$75,000 $75,000 
$75,000 $75,000 
(1)Excludes unamortized debt issuance costs of $0.2 million and $0.2 million for each of the periods ended September 30, 2025 and December 31, 2024, respectively.
Capital expenditures for each segment for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Capital Expenditures (1)
Office$13,185 $20,261 $47,354 $41,930 
Retail4,500 4,267 7,146 9,651 
Multifamily 1,110 1,582 3,072 4,260 
Mixed-Use438 229 1,947 922 
$19,233 $26,339 $59,519 $56,763 

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