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Currently, one of the most significant risk factors, is the potential adverse effect of the current COVID-19 pandemic on our financial condition, results of operations, cash flows and performance or that of, our tenants and guests, the real estate market and the global economy and financial markets.
−Removed: The extent to which COVID-19 impacts us, our tenants and guests will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.
+Added: The extent to which the COVID-19 pandemic impacts us, our tenants and guests will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.
You can also identify forward-looking statements by discussions of strategy, plans or intentions.
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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:
−Removed: • the impact of epidemics, pandemics, or other outbreaaks of illness, disease or virus(such as the COVID-19 outbreak) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate;
+Added: • the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the COVID-19 pandemic) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate;
• adverse economic or real estate developments in our markets;
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For a further discussion of these and other factors, see the section entitled “Item 1A.
−Removed: Risk Factors” contained herein and in our annual report on Form 10-K for the year ended December 31, 2019 and quarterly report on Form 10-Q for the quarter ended March 31, 2020.
+Added: Risk Factors” contained herein and in our annual report on Form 10-K for the year ended December 31, 2020.
References to “we,” “our,” “us” and “our company” refer to American Assets Trust, Inc., a Maryland corporation, together with our consolidated subsidiaries, including American Assets Trust, L.P., a Maryland limited partnership, of which we are the sole general partner and which we refer to in this report as our Operating Partnership.
We are a full service, vertically integrated and self-administered REIT that owns, operates, acquires and develops high quality retail, office, multifamily and mixed-use properties in attractive, high-barrier-to-entry markets in Southern California, Northern California, Oregon, Washington, Texas and Hawaii.
−Removed: As of September 30, 2020, our portfolio was comprised of twelve retail shopping centers;
+Added: As of March 31, 2021, our portfolio was comprised of twelve retail shopping centers;
nine office properties;
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and six multifamily properties.
−Removed: Additionally, as of September 30, 2020, we owned land at three of our properties that we classified as held for development and/or construction in progress.
+Added: Additionally, as of March 31, 2021, we owned land at three of our properties that we classified as held for development and/or construction in progress.
Our core markets include San Diego;
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Rady or his affiliates, including the Ernest Rady Trust U/D/T March 13, 1983, or the Rady Trust, and did not have any operating activity until the consummation of our initial public offering on January 19, 2011.
−Removed: Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.7% of our Operating Partnership as of September 30, 2020.
+Added: Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.8% of our Operating Partnership as of March 31, 2021.
Accordingly, we consolidate the assets, liabilities and results of operations of our Operating Partnership.
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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.
−Removed: Same-store and redevelopment same-store is considered by management to be important measures because they assist in eliminating disparities due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the Company's stabilized and redevelopment properties, as applicable.
+Added: Same-store and redevelopment same-store are considered by management to be important measures because they assist in eliminating disparities due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the Company's stabilized and redevelopment properties, as applicable.
Additionally, redevelopment same-store is considered by management to be an important measure because it assists in evaluating the timing of the start and stabilization of our redevelopment opportunities and the impact that these redevelopments have in enhancing our operating performance.
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Acquired properties are classified into same-store properties once we have owned such properties for the entirety of comparable period(s) and the properties are not under significant development or expansion.
−Removed: Below is a summary of our same-store composition for the three and nine months ended September 30, 2020 and 2019.
−Removed: For the three months ended September 30, 2020, Torrey Point was reclassified to same-store properties when compared to the designations for the three months ended September 30, 2019 as the entity was placed into operations and became available for occupancy in August 2018.
−Removed: Furthermore, La Jolla Commons was reclassified to same-store properties as it was acquired on June 20, 2019 and is comparable for the three months ended September 30, 2020.
−Removed: For the three months ended September 30, 2020, One Beach Street was reclassified to non-same-store properties when compared to the designations for the three months ended September 30, 2019 due to redevelopment activity to renovate the property.
−Removed: Waikiki Beach Walk Retail and Embassy Suites™ Hotel is classified as a non-same-store property due to spalling repair activity previously disrupting the hotel portion of the properties operations.
−Removed: Waikele Center is classified as a non-same-store property due to significant redevelopment activity.
−Removed: For the nine months ended September 30, 2020, Torrey Point was reclassified to same-store properties when compared to the designations for the nine months ended September 30, 2019 as the entity was placed into operations and became available for occupancy in August 2018.
−Removed: For the nine months ended September 30, 2020, One Beach Street was reclassified to non-same-store properties when compared to the designation for the nine months ended September 30, 2019 due to redevelopment activity to renovate the property.
+Added: Below is a summary of our same-store composition for the three months ended March 31, 2021 and 2020.
+Added: For the three months ended March 31, 2021, La Jolla Commons was reclassified to same-store properties when compared to the designation for the three months ended March 31, 2020 as it was acquired on June 20, 2019 and is comparable for the three months ended March 31, 2021.
+Added: One Beach Street is classified as a non-same-store property due to redevelopment activity to renovate the property.
Waikiki Beach Walk Retail and Embassy Suites™ Hotel is classified as a non-same-store property due to spalling repair activity previously disrupting the hotel portion of the properties operations.
Waikele Center is classified as a non-same-store property due to significant redevelopment activity.
−Removed: La Jolla Commons is classified as a non-same-store property, as it was acquired on June 20, 2019.
−Removed: In our determination of same-store and redevelopment same-store properties for the nine months ended September 30, 2020, Waikele Center and One Beach Street have been identified as same-store redevelopment properties due to significant redevelopment activity.
−Removed: Retail same-store net operating income decreased approximately 21.9% for the nine months ended September 30, 2020 compared to the same period in 2019.
−Removed: Retail redevelopment same-store net operating income decreased approximately 17.7% for the nine months ended September 30, 2020 compared to the same period in 2019.
−Removed: Office same-store net operating income increased 20.8% for the nine months ended September 30, 2020 compared to the same period in 2019.
−Removed: Office redevelopment same-store net operating income increased 16.7% for the nine months ended September 30, 2020 compared to the same period in 2019.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2020 2019 2020 2019
+Added: In our determination of same-store and redevelopment same-store properties for the three months ended March 31, 2021, Waikele Center and One Beach Street have been identified as same-store redevelopment properties due to significant redevelopment activity.
+Added: Retail same-store net operating income decreased approximately 25.5% for the three months ended March 31, 2021 compared to the same period in 2020.
+Added: Retail redevelopment same-store net operating income decreased approximately 22.5% for the three months ended March 31, 2021 compared to the same period in 2020.
+Added: Office same-store net operating income increased 1.4% for the three months ended March 31, 2021 compared to the same period in 2020.
+Added: Office redevelopment same-store net operating income increased 1.2% for the three months ended March 31, 2021 compared to the same period in 2020.
+Added: Three Months Ended March 31,
Same-Store 25 24
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We evaluate our properties on an ongoing basis to identify these types of opportunities.
−Removed: We intend to opportunistically pursue the development of future phases of Lloyd District Portfolio and La Jolla Commons and the redevelopment of One Beach Street based on, among other things, market conditions and our evaluation of whether such opportunities would generate appropriate risk-adjusted financial returns.
+Added: We intend to opportunistically pursue the development of future phases of Lloyd Portfolio and La Jolla Commons and the redevelopment of One Beach Street based on, among other things, market conditions and our evaluation of whether such opportunities would generate appropriate risk-adjusted financial returns.
Our redevelopment and development opportunities are subject to various factors, including market conditions and may not ultimately come to fruition.
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however, we believe they provide long-term re-leasing growth, redevelopment opportunities and other strategic opportunities.
−Removed: Any growth from acquisitions is contingent upon our ability to find properties that meet our qualitative standards at prices that meet our financial hurdles.
+Added: Any growth from acquisitions is contingent upon our ability to find properties that meet our qualitative standards at prices that meet
+Added: our financial hurdles.
Changes in interest rates may affect our success in achieving earnings growth through acquisitions by affecting both the price that must be paid to acquire a property, as well as our ability to economically finance a property acquisition.
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The outbreak of COVID-19 in many countries, including the United States, has significantly adversely impacted global economic activity and has contributed to significant volatility and negative pressure in financial markets.
−Removed: The global impact of the outbreak has been rapidly evolving and, as cases of COVID-19 have continued to be identified in additional countries, many countries, including the United States, have reacted by instituting quarantines, mandating business and school closures and restricting travel.
−Removed: Certain states and cities, including where we own properties, have development sites and where our principal place of business is located, have also reacted by instituting quarantines, restrictions on travel, "stay-at-home" orders or “shelter in place” rules, social distancing measures, restrictions on types of business that may continue to operate, and/or restrictions on the types of construction projects that may continue.
+Added: The global impact of the pandemic has been rapidly evolving.
+Added: Certain states and cities, including where we own properties, have development sites and where our principal place of business is located, have reacted by instituting quarantines, restrictions on travel, "stay-at-home" orders or “shelter in place” rules, social distancing measures, restrictions on types of business that may continue to operate, and/or restrictions on the types of construction projects that may continue.
The Company cannot predict when restrictions or social distancing measures currently in place will expire.
−Removed: Even after certain of such restrictions are lifted or reduced, the willingness of customers to visit certain of out tenants' businesses may be reduced due to lingering concerns regarding the continued risk of COVID-19 transmission and heightened sensitivity to risks associated with the transmission of other diseases.
+Added: Even after certain of such restrictions are lifted or reduced, the willingness of customers to visit certain of our tenants' businesses may be reduced due to lingering concerns regarding the continued risk of COVID-19 transmission and heightened sensitivity to risks associated with the transmission of other diseases.
As a result, the COVID-19 pandemic is negatively impacting almost every industry directly or indirectly, including industries in which the Company and our tenants operate.
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however, any material effect on these parties could adversely impact us.
−Removed: For the third quarter of 2020, we have collected to date approximately 98% of office rents, 73% of retail rents (including retail component of Waikiki Beach Walk) and 94% of multifamily rents that were due during the third quarter of 2020.
−Removed: During the third quarter of 2020, we received and executed a significant amount of rent deferment requests from various tenants, primarily within the retail segment, as a result of COVID-19.
+Added: For the first quarter of 2021, we have collected to date approximately 99% of office rents, 84% of retail rents (including retail component of Waikiki Beach Walk) and 95% of multifamily rents that were due during the first quarter of 2021.
+Added: During the first quarter of 2021, we received and executed a significant amount of rent deferment requests from various tenants, primarily within the retail segment, as a result of COVID-19.
We are evaluating each tenant rent deferment request on an individual basis, considering a number of factors.
Not all rent deferment requests will ultimately result in executed lease modification agreements.
−Removed: As of September 30, 2020, we have entered into lease modifications that resulted in COVID-19 adjustments (including rent deferrals and other monetary lease concessions) for approximately 2 % of the rent originally contracted for the three months ended September 30, 2020.
+Added: As of March 31, 2021, we have entered into lease modifications that resulted in adjustments (including rent deferrals and other monetary lease concessions) due to the impact of the COVID-19 pandemic for approximately $1.2 million or 2% of the rent originally contracted for the three months ended March 31, 2021.
+Added: For the first quarter of 2021, we collected approximately $0.7 million or 88% of the deferred rent repayments due during the period.
We believe the company's financial condition and liquidity are currently strong.
−Removed: Although there is uncertainty related to the anticipated impact of the COVID-19 outbreak on the Company's future results, we believe our efficient business model and ongoing steps we have taken to strengthen our balance sheet has positioned to manage our business through this crisis as it
−Removed: continues to unfold.
+Added: Although there is uncertainty related to the anticipated impact of the COVID-19 outbreak on the Company's future results, we believe our efficient business model and ongoing steps we have taken to strengthen our balance sheet has positioned to manage our business through this crisis as it continues to unfold.
We continue to manage all aspects of our business including, but not limited to, monitoring the financial health of our tenants, vendors, and other third-party relationships, and developing new opportunities for growth.
−Removed: Due to COVID-19, we cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity.
−Removed: See Part II, Item 1A - “Risk Factors” - “The novel coronavirus (COVID-19) and other possible pandemics and similar outbreaks, could result in material adverse effects on our business, financial position, results of operations and cash flows."
−Removed: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law to provide widespread emergency relief for the economy and to provide aid to corporations.
−Removed: The CARES Act includes several significant provisions related to taxes, refundable payroll tax credits and deferment of social security payments.
−Removed: We continue to evaluate the relief options available under the CARES Act.
−Removed: We will continue to assess these options, and any subsequent legislation or other relief packages, including the accompanying restrictions on our business, as the pandemic continues to evolve.
+Added: Due to the COVID-19 pandemic, we cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity.
+Added: We remain encouraged by our portfolio’s increasing rent collection percentages as well as the broader macroeconomic conditions related to the ongoing transition back to a fully opened economy.
+Added: While we continue to monitor the COVID-19 vaccination response and economic initiatives undertaken by the new administration, we are hopeful that a continued reopening of the economy in 2021 will result in both job growth and an increase in gross domestic product as compared to 2020.
Our same-store growth is primarily driven by increases in rental rates on new leases and lease renewals and changes in portfolio occupancy.
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and any reduction in our tenants' abilities to pay base rent, percentage rent or other charges, including as a result of the COVID-19 pandemic, will adversely affect our financial condition and results of operations.
−Removed: During the three months ended September 30, 2020, we signed 10 office leases for a total of 59,196 square feet of office space including 55,152 square feet of comparable renewal office space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 6.7% and 10.8%, respectively.
−Removed: No new offices leases for comparable spaces were signed during the third quarter of 2020.
−Removed: During the three months ended September 30, 2020, we signed 21 retail leases for a total of 71,419 square feet of retail space including 71,419 square feet of comparable renewal retail space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis and GAAP basis of 6.2% and 3.6%, respectively.
−Removed: No new retail leases for comparable spaces were signed during the third quarter of 2020.
+Added: During the three months ended March 31, 2021, we signed 14 office leases for a total of 65,047 square feet of office space including 65,047 square feet of comparable renewal office space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis of 2.3% and increase on a GAAP basis of 1.3%, respectively.
+Added: New office leases for comparable spaces were signed for 5,333 square feet at an average rental rate increase on a cash and GAAP basis of 9.2% and 20.9%, respectively.
+Added: Renewals for comparable office spaces were signed for 59,714 square feet at an average rental rate decrease on a cash and GAAP basis of 3.4% and 0.5%, respectively.
+Added: Tenant improvements and incentives were $61.61 per square foot of office space for comparable new leases for the three months ended March 31, 2021, mainly due to tenants at Torrey Reserve Campus.
+Added: During the three months ended March 31, 2021, we signed 25 retail leases for a total of 59,274 square feet of retail space including 46,243 square feet of comparable renewal retail space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis and GAAP basis of 7.8% and 5.0%, respectively.
+Added: No new retail leases for comparable spaces were signed during the first quarter of 2021.
The rental increases associated with comparable spaces generally include all leases signed in arms-length transactions reflecting market leverage between landlords and tenants during the period.
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We cease capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with any remaining portion under construction.
−Removed: We capitalized external and internal costs related to both development and redevelopment activities combined of $1.4 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively.
−Removed: We capitalized external and internal costs related to both development and redevelopment activities combined of $4.2 million and $3.0 million for the nine months ended September 30, 2020 and 2019, respectively.
−Removed: We capitalized external and internal costs related to other property improvements combined of $9.0 million and $17.8 million for the three months ended September 30, 2020 and 2019, respectively.
−Removed: We capitalized external and internal costs related to other property improvements totaling $42.3 million and $65.9 million for the nine months ended September 30, 2020 and 2019, respectively.
+Added: We capitalized external and internal costs related to both development and redevelopment activities combined of $3.9 million and $1.3 million for the three months ended March 31, 2021 and 2020, respectively.
+Added: We capitalized external and internal costs related to other property improvements combined of $9.3 million and $20.8 million for the three months ended March 31, 2021 and 2020, respectively.
Interest costs on developments and major redevelopments are capitalized as part of developments and redevelopments not yet placed in service.
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If the time period for capitalizing interest is extended, however, more interest is capitalized, thereby decreasing interest expense and increasing net income during that period.
−Removed: We capitalized interest costs related to development activities of $0.3 million and $0.1 million for the three months ended September 30, 2020 and 2019, respectively.
−Removed: We capitalized interest costs related to development activities of $0.8 million and $0.4 million for the nine months ended September 30, 2020 and 2019, respectively.
+Added: We capitalized interest costs related to development activities of $0.6 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively.
+Added: We capitalized interest costs related to development activities of $0.6 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively.
Results of Operations
For our discussion of results of operations, we have provided information on a total portfolio and same-store basis.
−Removed: Comparison of the three months ended September 30, 2020 to the three months ended September 30, 2019
−Removed: The following summarizes our consolidated results of operations for the three months ended September 30, 2020 compared to our consolidated results of operations for the three months ended September 30, 2019.
−Removed: As of September 30, 2020, our operating portfolio was comprised of 28 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,112 residential units (including 122 RV spaces) and a 369-room hotel.
−Removed: Additionally, as of September 30, 2020, we owned land at three of our properties that we classified as held for development and/or construction in progress.
−Removed: As of September 30, 2019, our operating portfolio was comprised of 28 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,112 residential units (including 122 RV spaces) and a 369-room hotel.
−Removed: Additionally, as of September 30, 2019, we owned land at three of our properties that we classified as held for development and/or construction in progress.
−Removed: The following table sets forth selected data from our unaudited consolidated statements of comprehensive income for the three months ended September 30, 2020 and 2019 (dollars in thousands):
−Removed: Three Months Ended September 30, Change %
+Added: Comparison of the three months ended March 31, 2021 to the three months ended March 31, 2020
+Added: The following summarizes our consolidated results of operations for the three months ended March 31, 2021 compared to our consolidated results of operations for the three months ended March 31, 2020.
+Added: As of March 31, 2021, our operating portfolio was comprised of 28 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,112 residential units (including 122 RV spaces) and a 369-room hotel.
+Added: Additionally, as of March 31, 2021, we owned land at three of our properties that we classified as held for development and/or construction in progress.
+Added: As of March 31, 2020, our operating portfolio was comprised of 28 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,112 residential units (including 122 RV spaces) and a 369-room hotel.
+Added: Additionally, as of March 31, 2020, we owned land at three of our properties that we classified as held for development and/or construction in progress.
+Added: The following table sets forth selected data from our unaudited consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020 (dollars in thousands):
+Added: Three Months Ended March 31, Change %
Rental income $ 81,130 $ 92,070 $ (10,940) (12) %
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Interest expense (14,005) (13,472) (533) 4
+Added: Early extinguishment of debt (4,271) — (4,271) —
Other (expense) income, net (53) 108 (161) (149)
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Total property revenue consists of rental revenue and other property income.
−Removed: Total property revenue decreased $14.0 million, or 14%, to $84.4 million for the three months ended September 30, 2020 compared to $98.4 million for the three months ended September 30, 2019.
−Removed: The percentage leased was as follows for each segment as of September 30, 2020 and 2019:
+Added: Total property revenue decreased $12.8 million, or 13%, to $84.0 million for the three months ended March 31, 2021 compared to $96.7 million for the three months ended March 31, 2020.
+Added: The percentage leased was as follows for each segment as of March 31, 2021 and 2020:
Percentage Leased (1)
−Removed: September 30,
Office 91.4 % 94.3 %
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88.2 % 98.5 %
−Removed: (1) The percentage leased includes the square footage under lease, including leases which may not have commenced as of September 30, 2020 or 2019, as applicable.
+Added: (1) The percentage leased includes the square footage under lease, including leases which may not have commenced as of March 31, 2021 or 2020, as applicable.
(2) Includes the retail portion of the mixed-use property only.
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Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents.
−Removed: Rental revenue decreased $12.4 million, or 13%, to $80.8 million for the three months ended September 30, 2020 compared to $93.1 million for the three months ended September 30, 2019.
−Removed: Rental revenue by segment was as follows (dollars in thousands):
−Removed: Total Portfolio Same-Store Portfolio (1)
−Removed: Three Months Ended September 30, Change % Three Months Ended September 30, Change %
−Removed: 2020 2019 2020 2019
−Removed: Office $ 43,453 $ 40,451 $ 3,002 7 $ 43,165 $ 39,325 $ 3,840 10
−Removed: Retail 19,850 25,564 (5,714) (22) 16,109 21,838 (5,729) (26)
−Removed: Multifamily 11,821 11,764 57 — 11,821 11,764 57 —
−Removed: Mixed-Use 5,635 15,368 (9,733) (63) — — — —
−Removed: $ 80,759 $ 93,147 $ (12,388) (13) % $ 71,095 $ 72,927 $ (1,832) (3) %
−Removed: (1) For this table and tables following, the same-store portfolio includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019 after renovating the building.
−Removed: The same-store portfolio excludes:
−Removed: (i) Waikele Center due to significant redevelopment activity;
−Removed: (ii) La Jolla Commons as it was acquired on June 20, 2019;
−Removed: (iii) One Beach Street due to the renovation of the building;
−Removed: (iv) Waikiki Beach Walk Retail and Embassy Suites TM Hotel due to significant spalling repair activity;
−Removed: and (v) land held for development.
−Removed: Total office rental revenue increased $3.0 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to higher annualized base rents at La Jolla Commons, City Center Bellevue, Lloyd District Portfolio, Torrey Point and Torrey Reserve Campus.
−Removed: The increase in total office rental revenue is partially offset by the decrease in rental revenue of approximately $0.8 million at One Beach Street due to expiration of leases to allow for the modernization of the property.
−Removed: Total retail rental revenue decreased $5.7 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to the increase in bad debt contra-revenue of rent receivables of approximately $2.7 million and straight-line rent receivables of approximately $1.3 million as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, and The Shops at Kalakaua as the temporary store closures or restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused the financial condition of certain tenants to deteriorate.
−Removed: Additionally, the decrease in total retail rental revenue is also attributable to a decrease in annualized base rent at Alamo Quarry Market and Del Monte Center due to the bankruptcy of Forever 21 and lease modifications providing rent concessions.
−Removed: Total mixed-use rental revenue decreased $9.7 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy through hotel reservation cancellations and travel restrictions during the second and third quarters which led to a decrease in average occupancy and revenue per available room to 65.9% and $138 for the three months ended September 30, 2020, respectively, compared to 92.9% and $332 for three months ended September 30, 2019, respectively.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce rental revenue at the hotel portion of the mixed-use property through the remainder of 2020 and into the first quarter of 2021.
−Removed: The decrease in total mixed-use rental revenue is also attributed to the increase in bad debt contra-revenue of rent receivables of approximately $2.2 million and straight-line rent of approximately $0.5 million as the collectability was determined to be no longer probable for certain tenants at the retail portion of our mixed-use property.
−Removed: Other property income .
−Removed: Other property income decreased $1.6 million, or 31%, to $3.6 million for the three months ended September 30, 2020 compared to $5.2 million for the three months ended September 30, 2019.
−Removed: Other property income by segment was as follows (dollars in thousands):
−Removed: Total Portfolio Same-Store Portfolio
−Removed: Three Months Ended September 30, Change % Three Months Ended September 30, Change %
−Removed: 2020 2019 2020 2019
−Removed: Office $ 1,368 $ 2,359 $ (991) (42) $ 1,361 $ 2,382 $ (1,021) (43)
−Removed: Retail 771 284 487 171 625 95 530 558
−Removed: Multifamily 743 891 (148) (17) 743 891 (148) (17)
−Removed: Mixed-Use 733 1,681 (948) (56) — — — —
−Removed: $ 3,615 $ 5,215 $ (1,600) (31) % $ 2,729 $ 3,368 $ (639) (19) %
−Removed: Office other property income decreased $1.0 million for the three months ended September 30, 2020 primarily due to the decrease in parking garage income at City Center Bellevue, Lloyd District Portfolio, and First & Main as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter caused a substantial portion of our tenants employees and their guests to continue to partially work from home during the period.
−Removed: Additionally, the decrease in office other property income was also attributable to a decrease in lease termination fees received at City Center Bellevue during the period.
−Removed: Retail other property income increased $0.5 million for the three months ended September 30, 2020 primarily due to the lease termination fees received at Del Monte Center and Carmel Country Plaza during the period.
−Removed: Multifamily other property income decreased by $0.1 million for the three months ended September 30, 2020 primarily due to the decrease in parking garage income at Hassalo on Eighth and late fees.
−Removed: Mixed-use other property income decreased $0.9 million for the three months ended September 30, 2020 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy beginning in March 2020 which led to a decrease in excise tax and food & beverage revenue at the hotel portion of our mixed-use property and a decrease in parking income at the retail portion of our mixed-use property.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce mixed-use other property income through at least the remainder of 2020 and into the first quarter of 2021.
−Removed: Property Expenses
−Removed: Total Property Expenses.
−Removed: Total property expenses consist of rental expenses and real estate taxes.
−Removed: Total property expenses decreased $4.2 million, or 12%, to $30.7 million, for the three months ended September 30, 2020 compared to $34.9 million for the three months ended September 30, 2019.
−Removed: Rental Expenses.
−Removed: Rental expenses decreased $4.8 million, or 20%, to $19.2 million for the three months ended September 30, 2020 compared to $24.0 million for the three months ended September 30, 2019.
−Removed: Rental expense by segment was as follows (dollars in thousands):
−Removed: Total Portfolio Same-Store Portfolio
−Removed: Three Months Ended September 30, Change % Three Months Ended September 30, Change %
−Removed: 2020 2019 2020 2019
−Removed: Office $ 6,744 $ 6,984 $ (240) (3) $ 6,527 $ 6,754 $ (227) (3)
−Removed: Retail 3,913 4,108 (195) (5) 3,100 3,252 (152) (5)
−Removed: Multifamily 3,897 3,751 146 4 3,897 3,751 146 4
−Removed: Mixed-Use 4,654 9,146 (4,492) (49) — — — —
−Removed: $ 19,208 $ 23,989 $ (4,781) (20) % $ 13,524 $ 13,757 $ (233) (2) %
−Removed: Total office rental expenses decreased $0.2 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to a decrease in utilities expense, janitorial services and supplies, and repairs and maintenance as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter caused a substantial portion of our tenants' employees to continue to split working from home during the period.
−Removed: The decrease in total office rental expenses was partially offset by the increase in sublease expense related to the Annex Lease extension option exercised in March 2020.
−Removed: Retail rental expenses decreased $0.2 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to a decrease in utilities, repairs and maintenance, and marketing expenses during the period as temporary store closures and restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused reduced demand for these rental expenses.
−Removed: The decrease in retail rental expenses was partially offset by the increase in insurance expense and landscaping expense during the period.
−Removed: Multifamily rental expenses increased $0.1 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to an increase in personnel compensation expenses, insurance expense, and janitorial services and supplies expense during the period.
−Removed: Mixed-use rental expense decreased $4.5 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to a decrease in hotel room expenses, marketing expenses, and general excise tax expenses at the hotel portion of our mixed-use property during the period.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce rental expenses at the hotel portion of our mixed-use property through at least the remainder of 2020 and into the first quarter of 2021.
−Removed: Additionally, the decrease in mixed-use rental expenses is also due to the decrease of personnel compensation, repairs and maintenance, and utilities expenses at the retail portion of our mixed-use property during the period.
−Removed: Real Estate Taxes.
−Removed: Real estate taxes decreased $0.5 million, or 5%, to $11.5 million for the three months ended September 30, 2020 compared to $10.9 million for the three months ended September 30, 2019.
−Removed: Real estate tax expense by segment was as follows (dollars in thousands):
−Removed: Total Portfolio Same-Store Portfolio
−Removed: Three Months Ended September 30, Change % Three Months Ended September 30, Change %
−Removed: 2020 2019 2020 2019
−Removed: Office $ 4,851 $ 4,643 $ 208 4 $ 4,672 $ 4,388 $ 284 6
−Removed: Retail 3,882 3,698 184 5 3,048 2,976 72 2
−Removed: Multifamily 1,706 1,616 90 6 1,706 1,616 90 6
−Removed: Mixed-Use 1,052 985 67 7 — — — —
−Removed: $ 11,491 $ 10,942 $ 549 5 % $ 9,426 $ 8,980 $ 446 5 %
−Removed: Office real estate taxes increased $0.2 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due an increase in tax assessments at City Center Bellevue, The Landmark at One Market, Lloyd District Portfolio, and Torrey Reserve Campus during the period.
−Removed: Total retail real estate taxes increased $0.2 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to a increase in tax assessment at Waikele Center.
−Removed: Same-Store retail real estate taxes increased $0.1 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to an increase in tax assessments at Alamo Quarry Market, Del Monte Center, and Carmel Mountain Plaza.
−Removed: Multifamily real estate taxes increased $0.1 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to an increase in tax assessments at the Pacific Ridge Apartments, Loma Palisades, and Hassalo on Eighth - Residential during the period.
−Removed: Property Operating Income
−Removed: Property operating income decreased $9.8 million, or 15%, to $53.7 million for the three months ended September 30, 2020, compared to $63.4 million for the three months ended September 30, 2019.
−Removed: Property operating income by segment was as follows (dollars in thousands):
−Removed: Total Portfolio Same-Store Portfolio
−Removed: Three Months Ended September 30, Change % Three Months Ended September 30, Change %
−Removed: 2020 2019 2020 2019
−Removed: Office $ 33,226 $ 31,183 $ 2,043 7 $ 33,327 $ 30,565 $ 2,762 9
−Removed: Retail 12,826 18,042 (5,216) (29) 10,586 15,705 (5,119) (33)
−Removed: Multifamily 6,961 7,288 (327) (4) 6,961 7,288 (327) (4)
−Removed: Mixed-Use 662 6,918 (6,256) (90) — — — —
−Removed: $ 53,675 $ 63,431 $ (9,756) (15) % $ 50,874 $ 53,558 $ (2,684) (5) %
−Removed: Total office property operating income increased $2.0 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to higher annualized base rents at La Jolla Commons, City Center
−Removed: Bellevue, and Torrey Reserve Campus during the period.
−Removed: The increase in total office property operating income was partially offset by the decrease in rental revenue at One Beach Street due to the expiration of leases to allow for the modernization of the property and a decrease in parking garage income.
−Removed: Total retail property operating income decreased $5.2 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to the increase in bad debt contra-revenue of approximately $4.0 million as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, and The Shops at Kalakaua as the temporary store closures or restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused the financial condition of certain tenants to deteriorate.
−Removed: The decrease in total retail property operating income is also attributable to a decrease in annualized base rent at Alamo Quarry Market and Del Monte Center due to the bankruptcy of Forever 21 and lease modifications providing rent concessions.
−Removed: Total multifamily property operating income decreased $0.3 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to the decrease in parking income and late fees along with an increase in personnel compensation expenses, insurance expense, and janitorial services and supplies expense during the period.
−Removed: Total mixed-use property operating income decreased $6.3 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 primarily due to the impact of the COVID-19 pandemic reducing tourism and hotel occupancy during the second and third quarters of 2020 which led to a decrease in hotel occupancy and revenue per available room to 65.9% and $138 for the three months ended September 30, 2020 compared to 92.9% and $332 for the three months ended September 30, 2019.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce property other property income through at least the remainder of 2020 and into the first quarter of 2021.
−Removed: General and Administrative.
−Removed: General and administrative expenses decreased $0.0 million, or 1%, to $6.4 million for the three months ended September 30, 2020, compared to $6.5 million for the three months ended September 30, 2019.
−Removed: This decrease was primarily due to a decrease in employee-related costs.
−Removed: Depreciation and Amortization.
−Removed: Depreciation and amortization expense increased $0.3 million, or 1%, to $26.9 million for the three months ended September 30, 2020, compared to $26.6 million for the three months ended September 30, 2019.
−Removed: This increase was primarily due to higher depreciation and amortization at Lloyd District Portfolio, The Landmark at One Market, Torrey Reserve Campus, and Waikele Center due to tenant improvements that were put into service in 2019 and 2020.
−Removed: Interest Expense.
−Removed: Interest expense decreased $0.4 million, or 3%, to $13.3 million for the three months ended September 30, 2020, compared to $13.7 million for the three months ended September 30, 2019.
−Removed: This decrease was primarily due to the repayment of the mortgage loans at Torrey Reserve - VCI, VCII, VCIII, Solana Crossing I-II, and Solana Beach Towne Centre on March 2, 2020 and a lower weighted average interest rate on the line of credit in 2020, offset by the closing of our Series G Notes on July 30, 2019.
−Removed: Other (Expense) Income, Net.
−Removed: Other (expense) income, net decreased $0.4 million, or 305%, to other expense, net of $0.5 million for the three months ended September 30, 2020, compared to other expense, net of $0.1 million for the three months ended September 30, 2019 primarily due to the August 2020 Treasury Lock being in a loss position during the period partially offset by a decrease in income tax expense related to lower taxable income for our taxable REIT subsidiary.
−Removed: Comparison of the Nine Months Ended September 30, 2020 to the Nine Months Ended September 30, 2019
−Removed: The following summarizes our consolidated results of operations for the nine months ended September 30, 2020 compared to our consolidated results of operations for the nine months ended September 30, 2019.
−Removed: The following table sets forth selected data from our unaudited consolidated statements of income for the nine months ended September 30, 2020 and 2019 (dollars in thousands):
−Removed: Nine Months Ended September 30, Change %
−Removed: Rental income $ 252,059 $ 249,634 $ 2,425 1 %
−Removed: Other property income 11,167 18,160 (6,993) (39)
−Removed: Total property revenues 263,226 267,794 (4,568) (2)
−Removed: Rental expenses 58,757 66,611 (7,854) (12)
−Removed: Real estate taxes 31,497 29,263 2,234 8
−Removed: Total property expenses 90,254 95,874 (5,620) (6)
−Removed: Total property income 172,972 171,920 1,052 1
−Removed: General and administrative (19,937) (18,495) (1,442) 8
−Removed: Depreciation and amortization (80,869) (69,733) (11,136) 16
−Removed: Interest expense (40,105) (40,212) 107 —
−Removed: Gain on sale of real estate — 633 (633) 100
−Removed: Other (expense) income, net (261) (410) 149 36
−Removed: Net income 31,800 43,703 (11,903) (27)
−Removed: Net income attributable to restricted shares (260) (277) 17 (6)
−Removed: Net income attributable to unitholders in the Operating Partnership
−Removed: (6,778) (10,553) 3,775 (36)
−Removed: Net income attributable to American Assets Trust, Inc.
−Removed: $ 24,762 $ 32,873 $ (8,111) (25) %
−Removed: Total property revenues .
−Removed: Total property revenue consists of rental revenue and other property income.
−Removed: Total property revenue decreased $4.6 million, or 2%, to $263.2 million for the nine months ended September 30, 2020 compared to $267.8 million for the nine months ended September 30, 2019.
−Removed: The percentage leased was as follows for each segment as of September 30, 2020 and 2019:
−Removed: Percentage Leased (1)
−Removed: September 30,
−Removed: Office 93.8 % 94.7 %
−Removed: Retail 95.0 % 98.0 %
−Removed: Multifamily 87.5 % 90.5 %
−Removed: Mixed-Use (2)
−Removed: 87.8 % 98.0 %
−Removed: (1) The percentage leased includes the square footage under lease, including leases which may not have commenced as of September 30, 2020 or September 30, 2019, as applicable.
−Removed: (2) Includes the retail portion of the mixed-use property only.
−Removed: The decrease in total property revenue was attributable primarily to the factors discussed below.
−Removed: Rental revenues .
−Removed: Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents.
−Removed: Rental revenue increased $2.4 million, or 1%, to $252.1 million for the nine months ended September 30, 2020 compared to $249.6 million for the nine months ended September 30, 2019.
+Added: Rental revenue decreased $10.9 million, or 12%, to $81.1 million for the three months ended March 31, 2021 compared to $92.1 million for the three months ended March 31, 2020.
Rental revenue by segment was as follows (dollars in thousands):
Total Portfolio Same-Store Portfolio (1)
−Removed: Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %
+Added: Three Months Ended March 31, Change % Three Months Ended March 31, Change %
2021 2020 2021 2020
4 unchanged sentences
$ 81,130 $ 92,070 $ (10,940) (12) % $ 72,716 $ 75,347 $ (2,631) (3) %
−Removed: (1) For this table and tables following, the same-store portfolio includes the 830 building at Lloyd District Portfolio which was placed into operations on August 1, 2019 after renovating the building.
−Removed: The same-store portfolio excludes:
+Added: (1) For this table and tables following, the same-store portfolio excludes:
(i) Waikele Center due to significant redevelopment activity;
−Removed: (ii) La Jolla Commons as it was acquired on June 20, 2019;
−Removed: (iii) One Beach Street due to the renovation of the building;
−Removed: (iv) Waikiki Beach Walk Retail and Embassy Suites TM Hotel due to significant spalling repair activity;
−Removed: and (v) land held for development.
−Removed: Total office rental revenue increased $33.2 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental rental revenue of approximately $21.1 million during the period.
−Removed: The increase in total office rental revenue is partially offset by the decrease in rental revenue of approximately $2.4 million at One Beach Street due to the expiration of leases to allow for the modernization of the property.
−Removed: Same-store office rental revenue increased $14.5 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to higher annualized base rents at The Landmark at One Market, Lloyd District Portfolio, City Center Bellevue, Torrey Point, and Solana Crossing.
−Removed: Total retail rental revenue decreased $9.4 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the increase in bad debt contra-revenue of rent receivables of approximately $3.3 million and straight-line rent receivables of approximately $2.6 million as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center, and The Shops at Kalakaua as the temporary store closures or restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused the financial condition of certain tenants to deteriorate.
−Removed: Additionally, the decrease in total retail rental revenue is also attributable to decrease in cost reimbursements of approximately $1.5 million due to a real estate tax refund at Alamo Quarry Market.
−Removed: The decrease in total retail rental revenue was partially offset by higher annualized base rent at Waikele Center related to the Safeway lease and higher annualized base rent at Carmel Mountain Plaza related to the At Home Stores lease.
−Removed: Multifamily rental revenue decreased $0.3 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the decrease in average occupancy to 89.2% for the nine months ended September 30, 2020 compared to 93.0% for the nine months ended September 30, 2019.
−Removed: The decrease in occupancy primarily related to Hassalo on Eighth - Residential.
−Removed: The decrease in average occupancy is partially offset by the increase in average base rent per unit to $2,140 for the nine months ended September 30, 2020 compared to $2,074 for the nine months ended September 30, 2019.
−Removed: Mixed-use rental revenue decreased $21.0 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy through hotel reservation cancellations and travel restrictions during the second and third quarters, which led to a decrease in average occupancy and revenue per available room to 52.8% and $138 for the nine months ended September 30, 2020, respectively, compared to 92.1% and $301 for nine months ended September 30, 2019, respectively.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce rental revenue at the hotel portion of the mixed-use property through the remainder of 2020 and into the first quarter of 2021.
−Removed: The decrease in total mixed-use rental revenue is also attributed to the increase in bad debt contra-revenue of rent receivables of approximately $3.1 million and straight-line rent of approximately $0.7 million as the collectability was determined to be no longer probable for certain tenants at the retail portion of our mixed-use property.
+Added: (ii) One Beach Street due to the renovation of the building;
+Added: (iii) Waikiki Beach Walk Retail and Embassy Suites TM Hotel due to significant spalling repair activity;
+Added: and (iv) land held for development.
+Added: Total office rental revenue increased $1.1 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to higher annualized base rents at La Jolla Commons, City Center Bellevue, Lloyd Portfolio, and Torrey Reserve Campus.
+Added: The increase in total office rental revenue is partially offset by the decrease in rental revenue of approximately $0.2 million at One Beach Street due to expiration of leases to allow for the modernization of the property and the decrease in rental revenue at First & Main due to the reduction of leased space related to tenant extensions in 2020.
+Added: Total retail rental revenue decreased $3.8 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to approximately $2.4 million for tenants who were changed to alternate rent or to cash basis of revenue recognition during 2020 as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center and The Shops at Kalakaua.
+Added: Additionally, the decrease in total retail rental revenue is also attributable to a decrease in expense recoveries and lease modifications providing rent concessions.
+Added: Multifamily revenue decreased $0.2 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to the decrease in average occupancy to 89.3% for the three months ended March 31, 2021 compared to 92.6% for the three months ended March 31, 2020.
+Added: The decrease in occupancy is primarily due to Hassalo on Eighth - Residential as the result of the significant impact of the COVID-19 pandemic and social unrest had on the Portland multifamily market.
+Added: We expect this trend to reverse with the distribution of the COVID-19 vaccine, government restrictions being lifted and appropriate lease concessions being offered.
+Added: Total mixed-use rental revenue decreased $8.1 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy through hotel reservation cancellations and travel restrictions during the second and third quarters which led to a decrease in average occupancy and revenue per available room to 47.5% and $99 for the three months ended March 31, 2021, respectively, compared to 75.4% and $242 for three months ended March 31, 2020, respectively.
+Added: The decrease in tourism and hotel occupancy in Oahu due to the COVID-19 pandemic is expected to substantially reduce rental revenue at the hotel portion of the mixed-use property through at least the first half of 2021.
+Added: The decrease in total mixed-use rental revenue is also attributed to approximately $2.1 million for tenants who were changed to alternate rent or to cash basis of revenue recognition during 2020 and an increase in bad debt contra-revenue of approximately $0.2 million and straight-line rent of approximately $0.3 million as the collectability was determined to be no longer probable for certain tenants at the retail portion of our mixed-use property.
Other property income .
−Removed: Other property income decreased $7.0 million, or 39%, to $11.2 million for the nine months ended September 30, 2020 compared to $18.2 million for the nine months ended September 30, 2019.
+Added: Other property income decreased $1.8 million, or 39%, to $2.9 million for the three months ended March 31, 2021 compared to $4.7 million for the three months ended March 31, 2020.
Other property income by segment was as follows (dollars in thousands):
Total Portfolio Same-Store Portfolio
−Removed: Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %
+Added: Three Months Ended March 31, Change % Three Months Ended March 31, Change %
2021 2020 2021 2020
4 unchanged sentences
$ 2,856 $ 4,673 $ (1,817) (39) % $ 1,662 $ 3,155 $ (1,493) (47) %
−Removed: Total office other property income decreased $0.8 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental other property income of approximately $0.3 million during the period.
−Removed: Same-store office other property income decreased $1.2 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the decrease in parking garage income at Lloyd District Portfolio, City Center Bellevue and First & Main during the period as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter caused a substantial portion of our tenants employees and their guests to continue to partially work from home during the period.
−Removed: Total retail other property income decreased $3.8 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to non-cash lease termination fees recognized in connection with the termination of a ground lease, and the ground lessee's surrender of, the former Sears building at Carmel Mountain Plaza during the nine months ended September 30, 2019.
−Removed: The decrease in retail other property income was partially offset by an increase in lease termination fees received at Alamo Quarry Market, Del Monte Center, Carmel Country Plaza during the period.
−Removed: Total multifamily other property income decreased $0.3 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the decrease in parking garage income at Hassalo on Eighth and late fees.
−Removed: Total mixed-use other property income decreased $2.1 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy beginning in March 2020 which led to a decrease in excise tax and food & beverage revenue at the hotel portion of our mixed-use property and a decrease in parking income at the retail portion of our mixed-use property.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce mixed-use other property income through at least the remainder of 2020 and into the first quarter of 2021.
+Added: Office other property income decreased $1.2 million for the three months ended March 31, 2021 primarily due to the decrease in parking garage income at City Center Bellevue, Lloyd Portfolio, and First & Main as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter of 2020 caused a substantial portion of our tenants employees and their guests to continue to partially work from home during the period.
+Added: Additionally, the decrease in office other property income was also attributable to a decrease in lease termination fees received at City Center Bellevue and a decrease in construction management fee income received at Lloyd Portfolio during the period.
+Added: Retail other property income decreased $0.2 million for the three months ended March 31, 2021 primarily due a decrease in lease termination fees received at Alamo Quarry Market during the period.
+Added: Multifamily other property income decreased by $0.1 million for the three months ended March 31, 2021 primarily due to the decrease in parking garage income at Hassalo on Eighth - Residential and late fees.
+Added: Mixed-use other property income decreased $0.3 million for the three months ended March 31, 2021 primarily due to the COVID-19 pandemic reducing tourism and hotel occupancy beginning in March 2020 which led to a decrease in excise tax and food & beverage revenue at the hotel portion of our mixed-use property.
+Added: The decrease in tourism and hotel occupancy in Oahu due to the COVID-19 pandemic is expected to substantially reduce mixed-use other property income through at least the first half of 2021.
Property Expenses
1 unchanged sentence
Total property expenses consist of rental expenses and real estate taxes.
−Removed: Total property expenses decreased by $5.6 million, or 6%, to $90.3 million for the nine months ended September 30, 2020, compared to $95.9 million for the nine months ended September 30, 2019.
−Removed: This decrease in total property expenses was attributable primarily to the factors discussed below .
+Added: Total property expenses decreased $4.0 million, or 12%, to $29.6 million, for the three months ended March 31, 2021 compared to $33.6 million for the three months ended March 31, 2020.
Rental Expenses.
−Removed: Rental expenses decreased $7.9 million, or (12)%, to $58.8 million for the nine months ended September 30, 2020, compared to $66.6 million for the nine months ended September 30, 2019.
+Added: Rental expenses decreased $4.3 million, or 19%, to $18.2 million for the three months ended March 31, 2021 compared to $22.6 million for the three months ended March 31, 2020.
Rental expense by segment was as follows (dollars in thousands):
Total Portfolio Same-Store Portfolio
−Removed: Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %
+Added: Three Months Ended March 31, Change % Three Months Ended March 31, Change %
2021 2020 2021 2020
4 unchanged sentences
$ 18,246 $ 22,568 $ (4,322) (19) % $ 13,076 $ 13,631 $ (555) (4) %
−Removed: Total office rental expenses increased $1.9 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental rental expenses of approximately $2.2 million during the period.
−Removed: Same-store office rental expenses decreased $0.2 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to utilities expense, janitorial services and supplies, and repairs and maintenance as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter caused a substantial portion of our tenants' employees to continue to work from home during the period.
−Removed: The decrease in same-store office rental expenses was partially offset by the increase in sublease expense related to the Annex Lease extension option exercised in March 2020, an increase in commercial rent tax at The Landmark at One Market, and an increase in insurance expense during the period.
−Removed: Total retail rental expenses decreased $0.5 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to a decrease in utilities, day porter services, repairs and maintenance and trash services during the period as temporary store closures and restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused reduced demand for these rental expenses.
−Removed: The decrease in retail rental expense was partially offset by the increase in insurance expense during the period.
−Removed: Total multifamily rental expenses increased $0.8 million or the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to personnel compensation expenses, utilities, janitorial services and supplies, security services and insurance expense during the period.
−Removed: Total mixed-use rental expenses decreased $10.1 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to decrease in hotel room expenses, marketing expenses, and general excise tax expenses at the hotel portion of our mixed-use property during the period.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce rental expenses at the hotel portion of our mixed-use property through at least the remainder of 2020 and into the first quarter of 2021.
−Removed: Additionally, the decrease in mixed-use rental expenses is also due to the decrease of personnel compensation, repairs and maintenance, and utilities expenses at the retail portion of our mixed-use property during the period.
+Added: Total office rental expenses decreased $0.5 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to a decrease in utilities expense, janitorial services and supplies, and repairs and maintenance as the "stay-at home" order issued by state and local governments related to the COVID-19 pandemic during the second quarter of 2020 caused a substantial portion of our tenants' employees to continue to split working from home during the period.
+Added: The decrease in total office rental expenses was partially offset by the increase in sublease expense related to the Annex Lease extension option exercised in March 2020 and insurance expense during the period.
+Added: Mixed-use rental expense decreased $3.7 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to a decrease in hotel room expenses, marketing expenses, and general excise tax expenses at the hotel portion of our mixed-use property during the period.
+Added: The decrease in tourism and hotel occupancy in Oahu due to the COVID-19 pandemic is expected to substantially reduce rental expenses at the hotel portion of our mixed-use property through at least the first half of 2021.
+Added: Additionally, the decrease in mixed-use rental expenses is also due to the decrease of general excise tax, repairs and maintenance, management fees, and utilities expenses at the retail portion of our mixed-use property during the period.
Real Estate Taxes.
−Removed: Real estate tax expense increased $2.2 million, or 8%, to $31.5 million for the nine months ended September 30, 2020 compared to $29.3 million for the nine months ended September 30, 2019.
+Added: Real estate taxes increased $0.3 million, or 3%, to $11.4 million for the three months ended March 31, 2021 compared to $11.0 million for the three months ended March 31, 2020.
Real estate tax expense by segment was as follows (dollars in thousands):
Total Portfolio Same-Store Portfolio
−Removed: Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %
+Added: Three Months Ended March 31, Change % Three Months Ended March 31, Change %
2021 2020 2021 2020
4 unchanged sentences
$ 11,354 $ 11,045 $ 309 3 % $ 9,410 $ 9,158 $ 252 3 %
−Removed: Total office real estate taxes increased $3.7 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental real estate taxes of approximately $3.1 million during the period.
−Removed: Same-store office real estate taxes increased $0.7 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in tax assessments at City Center Bellevue, The Landmark at One Market, Lloyd District Portfolio, and Torrey Reserve Campus during the period.
−Removed: Retail real estate taxes decreased $2.1 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to a net real estate tax refund of approximately $2.3 million at Alamo Quarry Market for the tax assessments for 2016 through 2018.
−Removed: The decrease in retail real estate taxes was partially offset by the increase in tax assessments at Waikele Center during the period.
−Removed: Multifamily real estate taxes increased $0.3 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in tax assessments for Pacific Ridge Apartments, Lomas Palisades, and Hassalo on Eighth - Residential during the period.
−Removed: Mixed-use real estate taxes increased $0.4 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in tax assessments for the hotel portion of our mixed-use property.
+Added: Same-store office real estate taxes increased $0.2 million compared to the three months ended March 31, 2020 primarily due to an increase in tax assessments at La Jolla Commons, The Landmark at One Market, First and Main, and Torrey Reserve Campus during the period.
+Added: Total retail real estate taxes increased $0.2 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to an increase in tax assessment at Waikele Center.
Property Operating Income
−Removed: Property operating income increased $1.1 million, or 1%, to $173.0 million for the nine months ended September 30, 2020, compared to $171.9 million for the nine months ended September 30, 2019.
+Added: Property operating income decreased $8.7 million, or 14%, to $54.4 million for the three months ended March 31, 2021, compared to $63.1 million for the three months ended March 31, 2020.
Property operating income by segment was as follows (dollars in thousands):
Total Portfolio Same-Store Portfolio
−Removed: Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %
+Added: Three Months Ended March 31, Change % Three Months Ended March 31, Change %
2021 2020 2021 2020
4 unchanged sentences
$ 54,386 $ 63,130 $ (8,744) (14) % $ 51,892 $ 55,713 $ (3,821) (7) %
−Removed: Total office property operating income increased $26.8 million during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental property operating income of $16.1 million during the period.
−Removed: The increase in total office property operating income was partially offset by the decrease in rental revenue at One Beach Street due to the expiration of leases to allow for the modernization of the property.
−Removed: Same-store property operating income increased $12.8 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to higher annualized base rents at The Landmark at One Market, Lloyd District Portfolio, City Center Bellevue, Torrey Point, and Solana Crossing.
−Removed: Total retail property operating income decreased $10.6 million during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to an increase in bad debt contra-revenue of approximately $6.0 million as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza and Del Monte Center as the temporary store closures or restrictions on business operations from orders issued by state and local governments related to the COVID-19 pandemic caused the financial condition of certain tenants to deteriorate.
−Removed: Additionally, the decrease in total retail property operating income was also due to the non-cash lease termination fees recognized in connection with the termination of a ground lease, and the ground lessee's surrender of, the former Sears building at Carmel Mountain Plaza during the prior period.
−Removed: The decrease in total retail property operating income was partially offset by the net property operating income related to the real estate tax refund at Alamo Quarry Market during the period and higher annualized base rent at Waikele Center related to the Safeway lease and higher annualized base rent at Carmel Mountain Plaza related to the At Home Stores lease.
−Removed: Multifamily property operating income decreased $1.7 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the average occupancy of 89.4% for the nine months ended September 30, 2020 compared to 93.0% for the nine months ended September 30, 2019, an increase in real estate tax assessments at Pacific Ridge Apartments, Lomas Palisades, and Hassalo on Eighth - Residential, and an increase in personnel compensation expenses, utilities, security services and insurance expense during the period.
−Removed: Total mixed-use property operating income decreased $13.5 million for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to the impact of the COVID-19 pandemic reducing tourism and hotel occupancy during the second and third quarters of 2020 which led to a decrease in hotel occupancy and revenue per available room to 52.8% and $138 for the nine months ended September 30, 2020 compared to 92.1% and $301 for the nine months ended September 30, 2019.
−Removed: The decrease in total mixed-use property operating income is also attributed to the increase in bad debt contra-revenue of rent receivables of approximately $3.8 million as the collectability was determined to be no longer probable for certain tenants at the retail portion of our mixed-use property.
−Removed: The decrease in tourism and hotel occupancy in Oahu due to COVID-19 is expected to substantially reduce property operating income through at least the remainder of 2020 and into the first quarter of 2021.
+Added: Total office property operating income increased $0.4 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to higher annualized base rents at La Jolla Commons, City Center Bellevue, Lloyd Portfolio and Torrey Reserve Campus during the period.
+Added: The increase in total office property operating income was partially offset by the decrease in rental revenue at One Beach Street due to the expiration of leases to allow for the modernization of the property, a decrease in parking garage income, and an increase in sublease expense related to the Annex Lease extension option exercised in March 2020 during the period.
+Added: Total retail property operating income decreased $4.2 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to approximately $2.4 million for tenants who were changed to alternate rent or to cash basis of revenue recognition during 2020 as the collectability was determined to be no longer probable for certain tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Center and The Shops at Kalakaua.
+Added: Additionally, the decrease in total retail property operating income is also attributable to a decrease in expense recoveries and lease modifications providing rent concessions.
+Added: Total multifamily property operating income decreased $0.3 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to the decrease in average occupancy to 89.3% for the three months ended March 31, 2021 compared to 92.6% for the three months ended March 31, 2020, and the decrease in parking garage income at Hassalo on Eighth - Residential and late fees during the period.
+Added: Total mixed-use property operating income decreased $4.7 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 primarily due to the decrease in rental revenue of approximately $2.1 million for tenants who were changed to alternate rent or to cash basis of revenue recognition during 2020 and an increase in bad debt contra-revenue of approximately $0.2 million and straight-line rent of approximately $0.3 million as the collectability was determined to be no longer probable for certain tenants at the retail portion of our mixed-use property.
+Added: Additionally, the decrease in property operating income was due to the impact of the COVID-19 pandemic reducing tourism and hotel occupancy which led to a decrease in hotel occupancy and revenue per available room to 47.5% and $99 for the three months ended March 31, 2021 compared to 75.4% and $242 for the three months ended March 31, 2020.
+Added: The decrease in tourism and hotel occupancy in Oahu due to the COVID-19 pandemic is expected to substantially reduce property other property income through at least the first half of 2021.
General and Administrative.
−Removed: General and administrative expenses increased $1.4 million, or 8%, to $19.9 million for the nine months ended September 30, 2020, compared to $18.5 million for the nine months ended September 30, 2019.
−Removed: This increase was primarily due to an increase in employee-related costs and furlough expense for our hotel staff.
+Added: General and administrative expenses remained consistent at $6.8 million for the three months ended March 31, 2021, compared to $6.8 million for the three months ended March 31, 2020.
+Added: This increase was primarily due to an increase in employee-related costs.
Depreciation and Amortization.
−Removed: Depreciation and amortization expense increased $11.1 million, or 16%, to $80.9 million for the nine months ended September 30, 2020, compared to $69.7 million for the nine months ended September 30, 2019.
−Removed: This increase was primarily due to the acquisition of La Jolla Commons on June 20, 2019, which had incremental depreciation and amortization of $7.5 million during the period and higher depreciation and amortization at Lloyd District Portfolio, City Center
−Removed: Bellevue, Torrey Reserve Campus, Torrey Point, and Waikele Center due to tenant improvements that were put into service in 2019 and 2020.
+Added: Depreciation and amortization expense remained consistent at $27.5 million for the three months ended March 31, 2021, compared to $27.5 million for the three months ended March 31, 2020.
+Added: This increase was primarily due to higher depreciation and amortization at The Landmark at One Market and City Center Bellevue due to tenant improvements that were put into service in 2020 and 2021 and an increase in depreciation at One Beach attributed to the renovation and modernization of the building substantially offset by lower depreciation and amortization at First & Main, La Jolla Commons, and Waikele Center due to decreased capital expenditures in 2020.
Interest Expense.
−Removed: Interest expense decreased $0.1 million, or 0%, to $40.1 million for the nine months ended September 30, 2020 compared to $40.2 million for the nine months ended September 30, 2019.
−Removed: This decrease was primarily due to the repayment of the mortgage loans at Torrey Reserve - VCI, VCII, VCIII, Solana Crossing I-II, and Solana Beach Towne Centre on March 2, 2020 and a lower weighted average interest rate on the line of credit in 2020, offset by the closing of our Series G Notes on July 30, 2019.
−Removed: Gain on Sale of Real Estate.
−Removed: Gain on sale of real estate of $0.6 million during the prior period relates to our sale of Solana Beach - Highway 101 on May 22, 2019.
+Added: Interest expense increased $0.5 million, or 4%, to $14.0 million for the three months ended March 31, 2021, compared to $13.5 million for the three months ended March 31, 2020.
+Added: This increase was primarily due to the closing of our 3.375% Senior Notes on January 26, 2021 partially offset by a decrease in interest expense related to our repayment of the Series A Notes on January 26, 2021, decrease in weighted average interest rate for our Term Loan A, which became an unhedged variable rate loan when the interest rate swap expired on January 9, 2021, and an increase in capitalized interest related to our development projects.
+Added: Early Extinguishment of Debt.
+Added: Early extinguishment of debt expense increased $4.3 million for the three months ended March 31, 2021 due to the prepayment of the Senior Guaranteed Notes, Series A, with make-whole payment thereon, on January 26, 2021.
Other (Expense) Income, Net.
−Removed: Other (expense) income, net increased $0.1 million , o r 36%, to other expense, net of $0.3 million for the nine months ended September 30, 2020, compared to other expense, net of $0.4 million for the nine months ended September 30, 2019 primarily due to a decrease in income tax expense related to lower taxable income for our taxable REIT subsidiary and an increase in interest and investment income attributed to higher average cash balances during the period, offset by the August 2020 Treasury Lock being in a loss position during the period.
+Added: Other (expense) income, net decreased $0.2 million, or 149%, to other expense, net of $0.1 million for the three months ended March 31, 2021, compared to other income, net of $0.1 million for the three months ended March 31, 2020 primarily due to the decrease in interest and investment income attributed to the lower yield on our average cash balance during the period and a decrease in income tax expense related to lower taxable income for our taxable REIT subsidiary.
Liquidity and Capital Resources of American Assets Trust, Inc.
9 unchanged sentences
The company’s principal source of funding for its dividend payments is distributions it receives from the Operating Partnership.
−Removed: As of September 30, 2020, the company owned an approximate 78.7% partnership interest in the Operating Partnership.
−Removed: The remaining 21.3% are owned by non-affiliated investors and certain of the company's directors and executive officers.
+Added: As of March 31, 2021, the company owned an approximate 78.8% partnership interest in the Operating Partnership.
+Added: The remaining approximately 21.3% are owned by non-affiliated investors and certain of the company's directors and executive officers.
As the sole general partner of the Operating Partnership, American Assets Trust, Inc.
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We believe the Operating Partnership’s sources of working capital, specifically its cash flow from operations, and borrowings available under its unsecured line of credit, are adequate for it to make its distribution payments to the company and, in turn, for the company to make its dividend payments to its stockholders.
−Removed: As of September 30, 2020, the company has determined that it has adequate working capital to meet its dividend funding obligations for the next 12 months.
+Added: As of March 31, 2021, the company has determined that it has adequate working capital to meet its dividend funding obligations for the next 12 months.
However, we cannot assure you that the Operating Partnership’s sources of capital will continue to be available at all or in amounts sufficient to meet its needs, including its ability to make distribution payments to the company.
−Removed: The unavailability of capital could
−Removed: adversely affect the Operating Partnership’s ability to pay its distributions to the company, which would in turn, adversely affect the company’s ability to pay cash dividends to its stockholders.
+Added: The unavailability of capital could adversely affect the Operating Partnership’s ability to pay its distributions to the company, which would in turn, adversely affect the company’s ability to pay cash dividends to its stockholders.
The COVID-19 pandemic is expected to temporarily impact some of our tenants' ability or willingness to remit rent payments due to the tenants' operations being affected by state and local stay-at-home orders.
−Removed: In the third quarter of 2020, we continued to receive rent deferment and other rent concession requests from some tenants and have been negotiating and executing lease modifications for the deferment of rent and other rent concessions.
+Added: In the first quarter of 2021, we continued to receive rent deferment and other rent concession requests from some tenants and have been negotiating and executing lease modifications for the deferment of rent and other rent concessions.
These rent deferments and other rent concessions will continue to adversely affect the Operating Partnership's cash flow from operations until the scheduled repayment period.
12 unchanged sentences
The Operating Partnership may use the proceeds to repay debt, to develop new or existing properties, to acquire properties or for general corporate purposes.
−Removed: In February 2018, the company filed a universal shelf registration statement on Form S-3ASR with the SEC, which became effective upon filing and which replaced the prior Form S-3ASR that was filed with the SEC in February 2015.
+Added: In January 2021, the company filed a universal shelf registration statement on Form S-3ASR with the SEC, which became effective upon filing and which replaced the prior Form S-3ASR that was filed with the SEC in February 2018.
The universal shelf registration statement permits the company from time to time to offer and sell equity securities of the company.
4 unchanged sentences
The sales of shares of the company's common stock made through the ATM equity program, as amended, are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act.
−Removed: As of September 30, 2020, we had the capacity to issue up to an additional $132.6 million in shares of common stock under the ATM equity program.
+Added: As of March 31, 2021, we had the capacity to issue up to an additional $132.6 million in shares of common stock under the ATM equity program upon filing an updated prospectus supplement with the SEC.
We intend to use the net proceeds to fund development or redevelopment activities, repay amounts outstanding from time to time under our amended and restated credit facility or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes.
11 unchanged sentences
must generally make annual distributions to its stockholders of at least 90% of its net taxable income.
−Removed: As of September 30, 2020, we held $155.3 million in cash and cash equivalents.
+Added: As of March 31, 2021, we held $380.4 million in cash and cash equivalents.
Our short-term liquidity requirements consist primarily of operating expenses and other expenditures associated with our properties, regular debt service requirements, dividend payments to American Assets Trust, Inc.'s stockholders required to maintain its REIT status, distributions to our unitholders, capital expenditures and, potentially, acquisitions.
15 unchanged sentences
The COVID-19 pandemic is expected to impact the timing of future development and redevelopment projects due to, among other things, capital requirements and permitting delays caused by local government shutdowns or reduced operations.
−Removed: In February 2018, the Operating Partnership filed a universal shelf registration on Form S-3 ASR with the SEC which provided for the registration of an unspecified amount of debt securities by the Operating Partnership.
+Added: In January 2021, the Operating Partnership filed a universal shelf registration on Form S-3 ASR with the SEC which provided for the registration of an unspecified amount of debt securities by the Operating Partnership.
However, there can be no assurance that the Operating Partnership will be able to complete any such offerings of debt securities.
2 unchanged sentences
We currently do not have any off-balance sheet arrangements.
−Removed: Comparison of the nine months ended September 30, 2020 to the nine months ended September 30, 2019
−Removed: Cash, cash equivalents, and restricted cash were $156.6 million and $126.1 million at September 30, 2020 and 2019, respectively.
−Removed: Net cash provided by operating activities decreased $13.0 million to $109.1 million for the nine months ended September 30, 2020 compared to $122.1 million for the nine months ended September 30, 2019.
−Removed: The decrease in cash from operations was primarily due to the decrease in rental revenue from the hotel portion of our mixed-use property and a decrease in rent collections from our retail portfolio.
−Removed: Net cash used in investing activities decreased $520.5 million to $53.6 million for the nine months ended September 30, 2020 compared to $574.0 million for the nine months ended September 30, 2019.
−Removed: The decrease was primarily due to the acquisition of La Jolla Commons on June 20, 2019 in the prior period.
−Removed: Net cash used in financing activities decreased $529.2 million to cash used of $8.5 million for the nine months ended September 30, 2020 compared to cash provided of $520.7 million for the nine months ended September 30, 2019.
−Removed: The decrease in cash provided by financing activities was primarily due to underwritten public offering that settled on June 14, 2019.
+Added: Comparison of the three months ended March 31, 2021 to the three months ended March 31, 2020
+Added: Cash, cash equivalents, and restricted cash were $382.2 million and $56.8 million at March 31, 2021 and 2020, respectively.
+Added: Net cash provided by operating activities decreased $2.9 million to $42.5 million for the three months ended March 31, 2021 compared to $45.4 million for the three months ended March 31, 2020.
+Added: The decrease in cash from operations was primarily due to the decrease in rental revenue from our mixed-use property and a decrease in rent collections from our retail portfolio.
+Added: Net cash used in investing activities decreased $11.7 million to $12.2 million for the three months ended March 31, 2021 compared to $23.9 million for the three months ended March 31, 2020.
+Added: The decrease was primarily due to the decrease in capital expenditures for tenant improvements at City Center Bellevue, Torrey Reserve, and Waikele Center.
+Added: Net cash provided by financing activities increased $286.9 million to $212.8 million for the three months ended March 31, 2021 compared to cash used in financing activities of $74.1 million for the three months ended March 31, 2020.
+Added: The increase in cash provided by financing activities was primarily due to the closing of our issuance of 3.375% Senior Notes on January 26, 2021 partially offset by the repayment of both the outstanding balance on the revolving line of credit and the Senior Guaranteed Notes, Series A on January 26, 2021.
Net Operating Income
3 unchanged sentences
Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to the NOIs of other REITs.
−Removed: NOI is used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by (1) the cost of funds of the property owner, (2) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP or (3) general and administrative expenses and other gains and losses that are specific to the property owner.
+Added: NOI is used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by (1) the cost of funds of the property owner, (2) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating
+Added: real estate assets that are included in net income computed in accordance with GAAP or (3) general and administrative expenses and other gains and losses that are specific to the property owner.
The cost of funds is eliminated from net income because it is specific to the particular financing capabilities and constraints of the owner.
10 unchanged sentences
This measure should be analyzed in conjunction with net income computed in accordance with GAAP and discussions elsewhere in “Management's Discussion and Analysis of Financial Condition and Results of Operations” regarding the components of net income that are eliminated in the calculation of NOI.
−Removed: Other companies may use different methods for calculating NOI or similarly entitled measures and,
−Removed: accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.
−Removed: The following is a reconciliation of our NOI to net income for the three and nine months ended September 30, 2020 and 2019 computed in accordance with GAAP (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2020 2019 2020 2019
+Added: Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.
+Added: The following is a reconciliation of our NOI to net income for the three months ended March 31, 2021 and 2020 computed in accordance with GAAP (in thousands):
+Added: Three Months Ended March 31,
Net operating income $ 54,386 $ 63,130
3 unchanged sentences
Interest expense (14,005) (13,472)
−Removed: Gain on sale of real estate — — — 633
−Removed: Other income (expense), net (531) (131) (261) (410)
+Added: Early extinguishment of debt (4,271) —
+Added: Other (expense) income, net (53) 108
Net income $ 1,733 $ 15,484
5 unchanged sentences
Specifically, in excluding real-estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.
−Removed: We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs.
+Added: We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other
However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited.
3 unchanged sentences
FFO also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.
−Removed: The following table sets forth a reconciliation of our FFO for the three and nine months ended September 30, 2020 to net income, the nearest GAAP equivalent (in thousands, except per share and share data):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: The following table sets forth a reconciliation of our FFO for the three months ended March 31, 2021 to net income, the nearest GAAP equivalent (in thousands, except per share and share data):
+Added: Three Months Ended March 31,
Funds from Operations (FFO)
6 unchanged sentences
Weighted average number of common shares and units, diluted (1)
−Removed: 76,118,264 76,117,040
(1) The weighted average common shares used to compute FFO per diluted share include unvested restricted stock awards that are subject to time vesting, which were excluded from the computation of diluted EPS, as the vesting of the restricted stock awards is dilutive in the computation of FFO per diluted share but is anti-dilutive for the computation of diluted EPS for the period.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.