Document And Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Mar. 07, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011
Entity Registrant Name	American Assets Trust, Inc.
Entity Central Index Key	0001500217
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		39,284,593
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 526.1
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Assets
Operating real estate	$ 1,659,106	$ 1,117,831
Construction in progress	3,495	925
Held for development	24,675	8,081
Total Real estate, at cost	1,687,276	1,126,837
Accumulated depreciation	(234,595)	(209,666)
Net real estate	1,452,681	917,171
Cash and cash equivalents	112,723	41,953
Restricted cash	9,216	4,481
Marketable securities	28,235
Accounts receivable, net	6,847	1,564
Deferred rent receivables, net	23,294	19,486
Notes receivable from affiliate		21,769
Investment in real estate joint ventures		39,816
Prepaid expenses and other assets	76,285	43,718
Assets of discontinued operations		27,399
Total assets	1,709,281	1,117,357
Liabilities and equity
Secured notes payable	943,479	828,685
Unsecured notes payable		38,013
Notes payable to affiliates		5,266
Accounts payable and accrued expenses	25,476	11,284
Security deposits payable	4,790	2,510
Other liabilities and deferred credits	55,808	38,846
Distributions in excess of earnings on real estate joint ventures		14,060
Liabilities of discontinued operations		23,572
Total liabilities	1,029,553	962,236
Commitments and contingencies (Note 12)
Equity:
Owners' equity		121,874
American Assets Trust, Inc. stockholders' equity
Common stock $0.01 par value, 490,000,000 shares authorized, 39,283,796 shares outstanding at December 31, 2011	393
Additional paid-in capital	653,645
Accumulated dividends in excess of net income	(28,007)
Total American Assets Trust, Inc. stockholders' equity	626,031
Noncontrolling interests
Owners in consolidated real estate entities		33,247
Unitholders in the Operating Partnership	53,697
Total Noncontrolling interests	53,697	33,247
Total equity	679,728	155,121
Total liabilities and equity	$ 1,709,281	$ 1,117,357

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 0.01
Common stock, shares authorized	490,000,000
Common stock, shares outstanding	39,283,796

Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any.

+ References+ Details

Consolidated Statements Of Operations (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue:
Rental income	$ 199,741	$ 120,749	$ 108,648
Other property income	10,082	3,778	3,938
Total revenue	209,823	124,527	112,586
Expenses:
Rental expenses	59,937	22,150	19,400
Real estate taxes	19,555	12,488	7,950
General and administrative	13,916	8,766	7,023
Depreciation and amortization	57,639	36,356	28,473
Total operating expenses	151,047	79,760	62,846
Operating income	58,776	44,767	49,740
Interest expense	(56,487)	(45,375)	(42,034)
Early extinguishment of debt	(25,867)
Loan transfer and consent fees	(9,019)
Gain on acquisition	46,371	4,297
Other income (expense), net	470	(1,846)	(2,961)
Income from continuing operations	14,244	1,843	4,745
Discontinued operations
Income from discontinued operations	1,099	331	494
Gain on sale of real estate property	3,981
Results from discontinued operations	5,080	331	494
Net income	19,324	2,174	5,239
Net income attributable to restricted shares	(482)
Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities	2,458	2,205	1,205
Net income attributable to Predecessor's controlled owners' equity	(16,995)	(4,379)	(6,444)
Net income attributable to unitholders in the Operating Partnership	(1,388)
Net income attributable to American Assets Trust, Inc. stockholders	$ 2,917
Basic net loss from continuing operations attributable to common stockholders per share	$ (0.01)
Basic net income from discontinued operations attributable to common stockholders per share	$ 0.09
Basic net income attributable to common stockholders per share	$ 0.08
Weighted average shares of common stock outstanding-basic	36,748,806
Diluted net loss from continuing operations attributable to common stockholders per share	$ (0.01)
Diluted net income from discontinued operations attributable to common stockholders per share	$ 0.09
Diluted net income attributable to common stockholders per share	$ 0.08
Weighted average shares of common stock outstanding-diluted	54,219,807
Dividends declared per common share	$ 0.80

Consolidated Statements Of Equity (USD $) In Thousands, except Share data	Common Shares [Member]	Additional Paid-In Capital [Member]	Accumulated Dividends In Excess Of Net Income [Member]	Predecessor's Controlled Owners' Equity [Member]	Noncontrolling Interests - Unitholders In The Operating Partnership [Member]	Predecessor's Noncontrolling Interests - Owners In Consolidated Entities [Member]	Total
Balance at Dec. 31, 2008				$ 148,864		$ 40,310	$ 189,174
Contributions				1,168		28	1,196
Distributions				(23,303)		(1,343)	(24,646)
Net income (loss)				6,444		(1,205)	5,239
Balance at Dec. 31, 2009				133,173		37,790	170,963
Contributions				7,665			7,665
Distributions				(23,343)		(2,338)	(25,681)
Net income (loss)				4,379		(2,205)	2,174
Balance at Dec. 31, 2010				121,874		33,247	155,121
Distributions				(33,435)		(6,525)	(39,960)
Net income (loss)			3,399	16,995	1,388	(2,458)	19,324
Proceeds from sale of common stock, net	316	587,695					588,011
Proceeds from sale of common stock, net, shares	31,625,000
Cash paid to non-accredited investors						(6,075)	(6,075)
Issuance of restricted stock	6	(6)
Issuance of restricted stock, shares	630,663
Forfeiture of restricted stock, shares	(1,951)
Issuance of common shares and units for acquisition of properties	3	6,081			27,770		33,854
Issuance of common shares and units for acquisition of properties, shares	262,486
Proceeds from private placement					5,410		5,410
Notes receivable from affiliate settled in common units					(21,797)		(21,797)
Notes payable to affiliates settled in common units					828		828
Dividends declared and paid			(31,406)		(14,717)		(46,123)
Stock-based compensation		2,615					2,615
Distribution of investment in joint venture not acquired				(9,084)		(2,396)	(11,480)
Exchange of owners' equity for common stock and units	68	57,260		(96,350)	54,815	(15,793)
Exchange of owners' equity for common stock and units, shares	6,767,598
Balance at Dec. 31, 2011	$ 393	$ 653,645	$ (28,007)		$ 53,697		$ 679,728
Balance, shares at Dec. 31, 2011	39,283,796						39,283,796

Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
OPERATING ACTIVITIES
Net income	$ 19,324	$ 2,174	$ 5,239
Results from discontinued operations	(5,080)	(331)	(494)
Income from continuing operations	14,244	1,843	4,745
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Deferred rent revenue and amortization of lease intangibles	(2,616)	2,124	623
Depreciation and amortization	57,639	36,356	28,473
Amortization of debt issuance costs and debt fair value adjustments	3,954	561	614
Early extinguishment of debt	25,867
Loan transfer and consent fees	9,019
Gain on acquisition of controlling interests	(46,371)	(4,297)
Stock-based compensation expense	2,615
Loss from real estate joint ventures	188	4,406	4,865
Distribution of earnings from real estate joint ventures		6,714	7,634
Other, net	2,669	794	267
Changes in operating assets and liabilities
Change in restricted cash	112	(27)	(55)
Change in accounts receivable	(3,566)	87	91
Change in prepaid expenses and other assets	(2,037)	(5,135)	(89)
Change in accounts payable and accrued expenses	2,526	3,342	(1,411)
Change in security deposits and other liabilities	(616)	60	(13)
Net cash provided by operating activities of continuing operations	63,627	46,828	45,744
Net cash provided by operating activities of discontinued operations	1,737	1,518	1,757
Net cash provided by operating activities	65,364	48,346	47,501
INVESTING ACTIVITIES
Acquisition of real estate, net of cash acquired	(228,558)	(32,962)
Capital expenditures	(10,956)	(4,122)	(6,291)
Change in restricted cash	(3,070)		(17)
Cash acquired from acquisition of controlling interests in real estate joint ventures	15,222
Leasing commissions	(3,295)	(1,635)	(1,551)
Purchase of marketable securities	(33,103)
Maturity of marketable securities	4,993
Deposit on property acquisition	(3,000)
Distribution of capital from real estate joint ventures		10,607
Issuance of notes receivable to affiliate		(800)	(30)
Repayment of notes receivable from affiliates			1,160
Net cash used in investing activities of continuing operations	(261,767)	(28,912)	(6,729)
Net cash provided by (used in) investing activities of discontinued operations	30,078	(593)	(815)
Net cash used in investing activities	(231,689)	(29,505)	(7,544)
FINANCING ACTIVITIES
Issuance of secured notes payable	84,500	7,500	24,887
Repayment of secured notes payable	(264,250)	(12,873)	(25,172)
Defeasance costs on repayment of secured notes payable	(24,345)
Loan transfer and consent fees paid	(8,350)
Issuance of unsecured notes payable		36,200
Repayment of unsecured notes payable	(38,013)	(11,051)	(8,279)
Repayment of notes payable to affiliates	(19,279)	(2,401)	(2,173)
Debt issuance costs	(2,961)	(436)	(559)
Proceeds from issuance of common stock, net	596,541
Proceeds from private placement of common units	5,410
Dividends paid to common stock and unitholders	(46,123)
Payments to nonaccredited investors	(6,075)
Contributions from Predecessor's controlling and noncontrolling interests		7,665	1,196
Distributions to Predecessor's controlling and noncontrolling interests	(39,960)	(25,681)	(24,646)
Net cash provided by (used in) financing activities	237,095	(1,077)	(34,746)
Net increase in cash and cash equivalents	70,770	17,764	5,211
Cash and cash equivalents, beginning of period	41,953	24,189	18,978
Cash and cash equivalents, end of period	$ 112,723	$ 41,953	$ 24,189

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business and Organization

American Assets Trust, Inc. (which may be referred to in these financial statements as the "Company," "we," "us," or "our") is a Maryland corporation formed on July 16, 2010 that did not have any operating activity until the consummation of our initial public offering (the "Offering") and the related acquisition of certain assets of our Predecessor (as defined below) on January 19, 2011. The Company is the sole general partner of American Assets Trust, L.P., a Maryland limited partnership formed on July 16, 2010 (the "Operating Partnership"). The Company's operations are carried on through our Operating Partnership and its subsidiaries, including our taxable REIT subsidiary. Since the formation of our Operating Partnership, the Company has controlled our Operating Partnership as its general partner and has consolidated its assets, liabilities and results of operations.

In connection with the Offering, on January 19, 2011 the following transactions were completed:

•

We issued a total of 31,625,000 shares of our common stock at $20.50 per share.

•

We acquired, through a series of merger and contribution transactions (the "Formation Transactions," as more fully described below), certain assets of our Predecessor and certain other entities. In exchange for such assets, the prior investors in such assets that were accredited investors were issued a total of 7,030,084 shares of our common stock and 18,145,039 common units of limited partnership interests in our Operating Partnership ("common units"), with an aggregate value of approximately $516.1 million, and non-accredited prior investors were paid a total of approximately $6.1 million in cash from the net proceeds of the Offering.

•

We entered into a $250.0 million revolving credit facility (the "credit facility") with an accordion feature to increase availability to $400.0 million under specified circumstances.

•

We repaid $342.0 million of indebtedness (including $24.3 million of defeasance costs) and paid $10.8 million, net of $0.7 million prepaid by our Predecessor, for loan transfer and consent fees and credit facility origination fees from the net proceeds of the Offering.

The net proceeds from the Offering were approximately $594.6 million, net of $1.9 million of offering costs prepaid by our Predecessor, including the underwriters' overallotment option which was exercised in full (after deducting the underwriting discount and commissions and expenses of the Offering and Formation Transactions). We contributed the net proceeds of the Offering to our Operating Partnership in exchange for common units.

Our "Predecessor" is not a legal entity but rather a combination of entities whose assets included entities owned and/or controlled by Ernest S. Rady and his affiliates, including the Ernest Rady Trust U/D/T March 13, 1983 (the "Rady Trust"), which in turn owned (1) controlling interests in entities owning 17 properties and the property management business of American Assets, Inc. ("AAI") (the "controlled entities"), and (2) noncontrolling interests in entities owning four properties (the "noncontrolled entities") (the assets described at (1) and (2) are the "Acquired Assets," and do not include our Predecessor's noncontrolling 25% ownership interest in Novato FF Venture, LLC, the entity that owns the Fireman's Fund Headquarters in Novato, California). The Formation Transactions included the acquisition by our Operating Partnership of the (a) Acquired Assets, (b) the entities that own Waikiki Beach Walk (a mixed-use property consisting of a retail portion and a hotel portion) (the "Waikiki Beach Walk entities") and (c) the entities that own Solana Beach Towne Centre and Solana Beach Corporate Centre (the "Solana Beach Centre entities") (including our Predecessor's ownership interest in these entities).

The Formation Transactions enabled us to (1) consolidate the ownership of our property portfolio under our Operating Partnership, (2) succeed to the property management business of AAI, (3) facilitate the Offering, and (4) qualify as a real estate investment trust (a "REIT") for U.S. federal income tax purposes commencing with the taxable year ending December 31, 2011. As a result of the Formation Transactions, we are a vertically integrated and self-administered REIT with 108 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing.

We determined that our Predecessor was the acquirer for accounting purposes, and therefore the contribution or acquisition by merger of interests in the controlled entities was considered a transaction between entities under common control since our Executive Chairman, Ernest S. Rady or his affiliates, including the Rady Trust, owned the controlling interest in each of the entities comprising our Predecessor, which, in turn, owned a controlling interest in each of the controlled entities. As a result, the acquisition of interests in each of the controlled entities was recorded at our historical cost. The contribution or acquisition by merger of interests in certain of the noncontrolled entities, which include the Waikiki Beach Walk entities and the Solana Beach Centre entities (including our Predecessor's ownership interest in these noncontrolled entities), was accounted for as an acquisition under the acquisition method of accounting and recognized at the estimated fair value of acquired assets and assumed liabilities on the date of such contribution or acquisition.

Since these transactions occurred on January 19, 2011, the financial condition and results of operations for the entities acquired by us in connection with the Offering and related Formation Transactions are not included in certain historical financial statements. More specifically, our financial condition as of December 31, 2010 and results of operations for the years ended December 31, 2010 and 2009 reflect the financial condition and results of operations for our Predecessor. Our financial condition as of December 31, 2011 and results of operations for the year ended December 31, 2011 reflect the financial condition and results of operation for our Predecessor together with the entities we acquired at the time of the Offering, namely, the Waikiki Beach Walk entities and the Solana Beach Centre entities, as well as First & Main, Lloyd District Portfolio and Solana Beach—Highway 101, each acquired subsequent to the Offering. We have included the results of operations for the acquired entities in our consolidated statements of operations from the date of acquisition. Additionally, in August 2011, we sold Valencia Corporate Center, and we have reclassified our financial statements for all periods prior to the sale to reflect Valencia Corporate Center as discontinued operations.

Prior to the Offering, the Predecessor's financial statements included investments in certain real estate joint ventures in which Ernest Rady and his affiliates had significant influence, but not control, over major decisions, including the decision to sell or refinance the properties. These investments, which represent noncontrolling 25% to 80% ownership interests, were accounted for using the equity method of accounting. The Predecessor's investments in certain real estate joint ventures for which it had unilateral control, evidenced by the ability to make all major decisions, such as the acquisition, sale or refinancing of the property without approval of the minority party, were combined in these financial statements as they were under the common control of Ernest Rady and his affiliates.

Any reference to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm's audit of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.

As of December 31, 2011, we owned or had a controlling interest in 21 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate. Additionally, as of December 31, 2011, we owned land at five of our properties that we classify as held for development. A summary of the properties owned by us is as follows:

Retail

Carmel Country Plaza

Carmel Mountain Plaza

South Bay Marketplace

Rancho Carmel Plaza

Lomas Santa Fe Plaza

Solana Beach Towne Centre

Del Monte Center

The Shops at Kalakaua

Waikele Center

Alamo Quarry Market

Office

Torrey Reserve Campus

Solana Beach Corporate Centre

160 King Street

The Landmark at One Market

First & Main

Lloyd District Portfolio

Multifamily

Loma Palisades

Imperial Beach Gardens

Mariner's Point

Santa Fe Park RV Resort

Mixed-Use

Waikiki Beach Walk Retail and Hotel

Held for Development

Solana Beach Corporate Centre—Land

Solana Beach—Highway 101—Land

Sorrento Pointe—Land

Torrey Reserve—Land

Lloyd District Portfolio—Land

Basis of Presentation

Our consolidated/combined financial statements include the accounts of the Company, our Operating Partnership and our subsidiaries. The equity interests of other investors in our Operating Partnership are reflected as noncontrolling interests. The combined financial statements of our Predecessor include the accounts of our Predecessor and all entities in which our Predecessor had a controlling interest. When our Predecessor was the general partner or managing member of a limited partnership or limited liability company, as the case may be, our Predecessor was presumed to control the limited partnership or limited liability company unless the limited partners or non-managing members possessed or possess either (1) the substantive ability to dissolve the partnership or otherwise remove our Predecessor as the general partner or managing member without cause (commonly referred to as "kick-out rights"), or (2) the right to participate in substantive operating and financial decisions of the limited partnership or limited liability company that were expected to be made in the course of their business. The equity interests of other investors were reflected as noncontrolling interests. Our Predecessor accounted for its interests in joint ventures which it did not control using the equity method of accounting.

All significant intercompany transactions and balances are eliminated in consolidation.

In August 2011, we sold Valencia Corporate Center. We have reclassified our financial statements for all periods prior to the sale to reflect Valencia Corporate Center as discontinued operations. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as "GAAP," requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.

Consolidated Statements of Cash Flows-Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):


	Year Ended December 31,
	2011			2010			2009
Supplemental cash flow information
Cash paid for interest	$	52,713		$	45,634		$	42,702

Cash paid for income taxes	$	55		$	—		$	—

Supplemental schedule of noncash investing and financing activities
Accounts payable and accrued liabilities for property under development	$	2,396		$	120		$	(105	)

Assumption of debt upon acquisition (Note 2)	$	268,008		$	133,000		$	—

Assumption of notes to affiliates upon acquisition (Note 2)	$	14,824		$	—		$	—

Acquisition of working capital deficit, net of cash (Note 2)	$	(4,176	)	$	(1,972	)	$	—

Distribution of investment in joint venture not acquired	$	11,480		$	—		$	—

Issuance of common shares and units for acquisition of properties	$	33,854		$	—		$	—

Notes receivable from affiliate settled in common units	$	21,797		$	—		$	—

Notes payable to affiliates settled in common units	$	828		$	—		$	—

Reduction to capital for prepaid Offering costs	$	1,974		$	—		$	—

Transfer taxes accrued at time of Offering	$	6,556		$	—		$	—

Offering Costs

In connection with the Offering, affiliates incurred legal, accounting and related costs, which were assumed or reimbursed by the Company upon the consummation of the Offering and such costs were deducted from the gross proceeds of the Offering.

Revenue Recognition and Accounts Receivable

Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed rent escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks. Percentage rents, which represent additional rents based upon the level of sales achieved by certain tenants, are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved and the percentage rents are collectible. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. Other property income includes parking income, general excise tax billed to tenants and fees charged to tenants at our multifamily properties. Other property income is recognized when earned. We recognize general excise tax gross, with the amounts billed to tenants and customers recorded in other property income and the related taxes paid as rental expense, and the general excise tax included in other income was $3.0 million, $1.1 million and $1.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees for which the tenant has relinquished control of the space are generally recognized on the termination date. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement.

We recognize revenue on the hotel portion of our mixed-use property from the rental of hotel rooms and guest services when the rooms are occupied and services have been provided. Food and beverage sales are recognized when the customer has been served or at the time the transaction occurs. Revenue from room rental is included in rental revenue on the statement of operations. Revenue from other sales and services provided is included in other property income on the statement of operations.

We make estimates of the collectibility of our accounts receivable related to minimum rents, straight-line rents, expense reimbursements and other revenue. Accounts receivable and deferred rent receivable are carried net of this allowance for doubtful accounts. We generally do not require collateral or other security from our tenants, other than letters of credit or security deposits. Our determination as to the collectibility of accounts receivable and correspondingly, the adequacy of this allowance, is based primarily upon evaluations of individual receivables, current economic conditions, historical experience and other relevant factors. The allowance for doubtful accounts is increased or decreased through bad debt expense. In some cases, primarily relating to straight-line rents, the collection of these amounts extends beyond one year. Our experience relative to unbilled straight-line rents is that a portion of the amounts otherwise recognizable as revenue is never billed to or collected from tenants due to early lease terminations, lease modifications, bankruptcies and other factors. Accordingly, the extended collection period for straight-line rents along with our evaluation of tenant credit risk may result in the nonrecognition of a portion of straight-line rental income until the collection of such income is reasonably assured. If our evaluation of tenant credit risk changes indicating more straight-line revenue is reasonably collectible than previously estimated and realized, the additional straight-line rental income is recognized as revenue. If our evaluation of tenant credit risk changes indicating a portion of realized straight-line rental income is no longer collectible, a reserve and bad debt expense is recorded. At December 31, 2011 and December 31, 2010, our allowance for doubtful accounts was $1.1 million and $0.3 million, respectively, and our allowance for deferred rent receivables was $1.7 million and $0.8 million, respectively. Total bad debt expense was $2.0 million, $0.6 million and $0.3 million for the years ended December 31, 2011, 2010 and 2009, respectively.

We recognize gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized using the full accrual method when (1) the collectibility of the sales price is reasonably assured, (2) we are not obligated to perform significant activities after the sale, (3) the initial investment from the buyer is sufficient and (4) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met.

We receive various fee income from unconsolidated real estate joint ventures including property management fees, construction management fees, acquisition and disposition fees, leasing fees, asset management fees and financing fees. Fee income is recorded as earned in accordance with the respective fee agreement. Profit from these fees, if any, is eliminated to the extent of our ownership interest in these entities. Subsequent to the Formations Transactions and the acquisition of the outside interests in unconsolidated joint ventures, we no longer earn fee revenue (Note 16).

Real Estate

Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 30 years to a maximum of 40 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 3 years to 15 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to the contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. For the years ended December 31, 2011, 2010, and 2009, real estate depreciation expense was $42.5 million, $31.4 million and $25.3 million, respectively, including amounts from discontinued operations.

Acquisitions of properties are accounted for in accordance with the authoritative accounting guidance on acquisitions and business combinations. Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and appraised values. When we acquire operating real estate properties, the purchase price is allocated to land and buildings, intangibles such as in-place leases, and to current assets and liabilities acquired, if any. Such valuations include a consideration of the noncancelable terms of the respective leases as well as any applicable renewal periods. The fair values associated with below market renewal options are determined based on a review of several qualitative and quantitative factors on a lease-by-lease basis at acquisition to determine whether it is probable that the tenant would exercise its option to renew the lease agreement. These factors include: (1) the type of tenant in relation to the property it occupies, (2) the quality of the tenant, including the tenant's long term business prospects and (3) whether the fixed rate renewal option was sufficiently lower than the fair rental of the property at the date the option becomes exercisable such that it would appear to be reasonably assured that the tenant would exercise the option to renew. The value allocated to in-place leases is amortized over the related lease term and reflected as depreciation and amortization in the statement of operations. The value of above and below market leases associated with the original noncancelable lease terms are amortized to rental income over the terms of the respective noncancelable lease periods and are reflected as either an increase (for below market leases) or a decrease (for above market leases) to rental income in the statement of operations. The value of the leases associated with below market lease renewal options that are likely to be exercised are amortized to rental income over the respective renewal periods. If a tenant vacates its space prior to contractual termination of its lease or the lease is not renewed, the unamortized balance of any in-place lease value is written off to rental income and amortization expense. Acquisition-related expenses are expensed in the period incurred.

We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance and construction costs and salaries and related costs of personnel directly involved. Additionally, we capitalize interest costs related to development and significant redevelopment activities. Capitalization of these costs begins when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use, at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine that the completion of development or redevelopment is no longer probable, we expense all capitalized costs which are not recoverable.

Impairment of Long Lived Assets

We review for impairment on a property by property basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. The sale or disposal of a "component of an entity" is treated as discontinued operations. The operating properties sold by us typically meet the definition of a component of an entity and as such the revenues and expenses associated with sold properties are reclassified to discontinued operations for all periods presented.

Financial Instruments

The estimated fair values of financial instruments are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair values. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges.

Cash and Cash Equivalents

We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity of less than three months. Cash balances in individual banks may exceed the federally insured limit of $250,000 by the Federal Deposit Insurance Corporation (the "FDIC"). No losses have been experienced related to such accounts. At December 31, 2011 and December 31, 2010, we had $24.3 million and $6.5 million, respectively, in excess of the FDIC insured limit. At December 31, 2011 and December 31, 2010, we had $82.1 million and $29.0 million, respectively, in money market funds that are not FDIC insured.

Restricted Cash

Restricted cash consists of amounts held by lenders to provide for future real estate tax expenditures, insurance expenditures and reserves for capital improvements. Activity for accounts related to real estate tax and insurance expenditures is classified as operating activities in the statement of cash flows. Changes in reserves for capital improvements are classified as investing activities in the statement of cash flows.

Marketable Securities

Our portfolio of marketable securities is comprised of debt securities that are classified as trading. Trading securities are presented on our consolidated balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the mark-to-market of these securities are recognized as unrealized gains or losses in income.

Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist primarily of lease costs, lease incentives, acquired in-place leases, acquired above market leases and debt issuance costs. Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place and include third party commissions and internal salaries and personnel costs related to obtaining a lease. Capitalized lease costs are amortized over the life of the related lease and included in depreciation and amortization expense on the statement of operations. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any lease costs are written off. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow. Therefore, we classify cash outflows for lease costs as an investing activity in our consolidated statements of cash flows.

Costs related to the issuance of debt instruments are capitalized and are amortized as interest expense over the estimated life of the related issue using the straight-line method which approximates the effective interest method. If a debt instrument is paid off prior to its original maturity date, the unamortized balance of debt issuance costs are written off to interest expense or, if significant, included in "early extinguishment of debt." For the year ended December 31, 2011, $0.6 million in debt issuance costs were written off and included in early extinguishment of debt.

Variable Interest Entities

Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as variable interest entities ("VIEs"). VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is the party that has a controlling interest in the VIE. Identifying the party with the controlling interest requires a focus on which entity has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (1) the obligation to absorb the expected losses of the VIE or (2) the right to receive the benefits from the VIE. We have evaluated our investments in certain joint ventures and determined that these joint ventures do not meet the requirements of a VIE and, therefore, consolidation of these ventures is not required. These investments are accounted for using the equity method. Our investment balances in our real estate joint ventures are presented separately in our consolidated balance sheets.

Investments in Real Estate Joint Ventures

We analyze our investments in real estate joint ventures under applicable guidance to determine if the venture is considered a VIE and would require consolidation. To the extent that the ventures do not qualify as VIEs, we further assess the venture to determine whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights in order to determine whether consolidation is required.

We consolidate those ventures that are considered to be VIEs where we are the primary beneficiary. For non-VIEs, the Predecessor combined those ventures that Ernest Rady or the Rady Trust controlled through majority ownership interests or where the Predecessor was the managing member and the partner did not have substantive participating rights. Control is further demonstrated by the ability of the general partner to manage day-to-day operations, refinance debt and sell the assets of the venture without the consent of the limited partner and inability of the limited partner to replace the general partner. We use the equity method of accounting for those ventures where we do not have control over operating and financial policies. Under the equity method of accounting, the investment in each venture is included on our balance sheet; however, the assets and liabilities of the ventures for which we use the equity method are not included in the balance sheet. The investment is adjusted for contributions, distributions and our proportionate share of the net earnings or losses of each respective venture.

We assess whether there has been impairment in the value of our investments in real estate joint ventures periodically. An impairment charge is recorded when events or changes in circumstances indicate that a decline in the fair value below the carrying value has occurred and such decline is other-than-temporary. The ultimate realization of the investments in unconsolidated real estate joint ventures is dependent on a number of factors, including the performance of the investments and market conditions.

Notes Receivable from Affiliate

Certain entities made loans to affiliates in order to attain a higher return on excess cash balances, and these loans were classified as notes receivable from affiliate at December 31, 2010. The notes bore interest at LIBOR and were to be repaid upon demand. The notes were settled as part of the Formation Transactions.

Notes Payable to Affiliates

Owners of certain entities made loans to the entities, and these loans were classified as notes payable to affiliates at December 31, 2010. The notes bore interest at 10% and matured in 2013. The notes were repaid using proceeds from the Offering or were settled as part of the Formation Transactions.

Stock-Based Compensation

We grant stock-based compensation awards to our employees and directors typically in the form of restricted shares of common stock, options to purchase common stock and/or shares of common stock. We measure stock-based compensation expense based on the fair value of the award on the grant date and recognize the expense ratably over the vesting period.

Deferred Compensation

Our Operating Partnership has adopted the American Assets Trust Executive Deferral Plan V ("EDP V") and the American Assets Trust Executive Deferral Plan VI ("EDP VI"). These plans were adopted by our Operating Partnership as successor plans to those deferred compensation plans maintained by AAI in which certain employees of AAI, who were transferred to us in connection with the Offering (the "Transferred Participants"), participated prior to the Offering. EDP V and EDP VI contain substantially the same terms and conditions as these predecessor plans. AAI transferred to our Operating Partnership the Transferred Participants' account balances under the predecessor plans. These transferred account balances represent amounts deferred by the Transferred Participants prior to the Offering while they were employed by AAI.

At the time eligible participants defer compensation, we record compensation cost and a corresponding deferred compensation plan liability, which is included in other liabilities and deferred credits on our consolidated balance sheets. This liability is adjusted to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each participant, and the impact of adjusting the liability to fair value is recorded as an increase or decrease to compensation cost.

Income Taxes

Prior to the Offering, we were comprised primarily of limited partnerships and limited liability companies. Under applicable federal and state income tax rules, the allocated share of net income or loss from the limited partnerships and limited liability companies was reportable in the income tax returns of the respective partners and members.

Subsequent to the Offering, we intend to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code") commencing with the taxable year ending December 31, 2011. To qualify as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to qualify as a REIT in any taxable year, and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax.

We, together with one of our subsidiaries, will elect to treat such subsidiary as a taxable REIT subsidiary (a "TRS") for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes.

Segment Information

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.

Reclassifications

Certain items in the consolidated financial statements for prior periods have been reclassified to conform to current classifications.

Recent Accounting Pronouncements

In December 2010, the Financial Accounting Standards Board ("FASB") issued ASU No. 2010-29, Disclosure of Supplementary Pro Forma Information for Business Combinations ("ASU 2010-29"), which amended ASC Topic 805, Business Combinations ("ASC 805"). The objective of this guidance is to eliminate diversity in the interpretation of pro forma revenue and earnings disclosures requirements for business combinations. The guidance specifies that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. The guidance also expands the supplemental pro forma disclosures under ASC 805 to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings. ASU 2010-29 is effective for business combinations for which the acquisition date occurs following the first annual reporting period which commences after December 15, 2010. The guidance is required in interim and annual reporting periods. Our adoption of this guidance effective January 1, 2011 did not have a material effect on our consolidated financial statements.

In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"), which amended ASC Topic 820, Fair Value Measurement. ASU 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 is effective for annual and interim reporting periods beginning on or after December 15, 2011. The new guidance is to be adopted prospectively and early adoption is not permitted. We do not believe that adoption of ASU 2011-04 will have a significant impact on our financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income ("ASU 2011-05"), which amended ASC Topic 220, Comprehensive Income. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in equity and requires that all non owner changes in equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. ASU 2011-05 requires retrospective application and will be effective for interim and annual reporting periods beginning after December 15, 2011. We do not believe the adoption of ASU 2011-05 will have significant impact on our disclosures of comprehensive income.

In December 2011, the FASB issued ASU No. 2011-10, Derecognition of in Substance Real Estate—a Scope Clarification (Topic 360) ("ASU 2011-10"). This ASU modifies ASC Subtopic 360-20, which specifies circumstances under which the parent (reporting entity) of an "in substance real estate" entity derecognizes that in substance real estate. Generally, if the parent ceases to have a controlling financial interest (as described under ASC Subtopic 810-10) in the subsidiary as a result of a default on the subsidiary's nonrecourse debt, then the subsidiary's in substance real estate and related debt, as well as the corresponding results of operations, will continue to be included in the consolidated financial statements and not be removed from the consolidated results until legal title to the real estate is transferred. ASU 2011-10 will be effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. We do not expect ASU 2011-10 to have a material effect on our financial position or results of operations.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Real Estate

12 Months Ended

Dec. 31, 2011

Real Estate [Abstract]

Real Estate

NOTE 2. REAL ESTATE

A summary of our real estate investments is as follows (in thousands):


	Retail			Office			Multifamily			Mixed-Use			Total
December 31, 2011
Land	$	239,152		$	120,890		$	18,477		$	76,635		$	455,154
Buildings		480,511			435,524			41,632			122,985			1,080,652
Land improvements		38,887			8,723			2,835			2,363			52,808
Tenant improvements		39,818			33,369			—			1,766			74,953
Furniture, fixtures, and equipment		457			1,054			4,570			9,022			15,103
Construction in progress		2,473			5,889			—			244			8,606	⁽¹⁾

		801,298			605,449			67,514			213,015			1,687,276
Accumulated depreciation		(145,848	)		(53,494	)		(30,327	)		(4,926	)		(234,595	)

Net real estate	$	655,450		$	551,955		$	37,187		$	208,089		$	1,452,681

December 31, 2010
Land	$	190,325		$	72,637		$	18,477		$	—		$	281,439
Buildings		442,791			235,564			41,315			—			719,670
Land improvements		36,921			6,155			2,829			—			45,905
Tenant improvements		42,064			22,249			—			—			64,313
Furniture, fixtures, and equipment		456			2,008			8,029			—			10,493
Construction in progress		590			4,427			—			—			5,017	⁽¹⁾

		713,147			343,040			70,650			—			1,126,837
Accumulated depreciation		(130,954	)		(46,449	)		(32,263	)		—			(209,666	)

Net real estate	$	582,193		$	296,591		$	38,387		$	—		$	917,171

(1)	Construction in progress related to land held for development is included in the Held for Development classification on the consolidated balance sheets.

Acquisitions

2011 Acquisitions

As noted above, as part of the Formation Transactions, we acquired the controlling interests in the Waikiki Beach Walk entities and the Solana Beach Centre entities for Operating Partnership units and common shares with a value of approximately $33.9 million. The contribution or acquisition by merger of interests in these entities was accounted for as an acquisition under the acquisition method of accounting and recognized at the estimated fair value of acquired assets and assumed liabilities on the date of such contribution or acquisition. Prior to acquisition, our Predecessor had an 80% noncontrolling interest in the Waikiki Beach Walk entities and a 50% noncontrolling interest in the Solana Beach Centre entities. Upon acquisition, we remeasured the assets and liabilities at fair value and recorded gains of $4.8 million and $41.6 million on the Waikiki Beach Walk entities and the Solana Beach Centre entities, respectively, which are classified as gain on acquisition in the accompanying statement of operations. These gains were calculated based on the difference between the fair value of our Predecessor's ownership interests of $31.3 million and $26.0 million compared to the Predecessor's historical cost interests of $26.5 million and $(15.6) million in the Waikiki Beach Walk entities and Solana Beach Centre entities, respectively.

The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. Using information available at the time the acquisition closed, we allocated the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. The identified intangible assets and liabilities are being amortized over a weighted average life of 5.4 years and 10.5 years for the Waikiki Beach Walk entities and Solana Beach Centre entities, respectively.

The allocation of the consideration paid for the assets and liabilities acquired in the Formation Transactions was as follows (in thousands):


	Solana Beach Towne Centre		Solana Beach Corporate Centre			Waikiki Beach Walk Retail and Hotel			Total
Land	$	40,980	$	14,896		$	76,635		$	132,511
Building		35,605		42,094			122,985			200,684
Land improvements		1,750		974			2,276			5,000
Tenant improvements		1,487		1,919			1,801			5,207
Furniture and fixtures		—		—			7,910			7,910

Total real estate		79,822		59,883			211,607			351,312
Cash and cash equivalents		957		718			13,547			15,222
Restricted cash		282		200			1,297			1,779
Accounts receivable, net		67		—			2,168			2,235
Lease intangibles		6,995		5,536			15,997			28,528
Prepaid expenses and other assets		22		45			266			333

Total assets	$	88,145	$	66,382		$	244,882		$	399,409

Secured notes payable	$	39,738	$	49,252		$	198,618		$	287,608
Fair market favorable debt value		—		(600	)		(19,000	)		(19,600	)
Notes payable to affiliates		—		—			14,824			14,824
Accounts payable and accrued expenses		924		542			6,520			7,986
Security deposits payable		238		320			861			1,419
Lease intangibles		11,390		125			3,530			15,045
Other liabilities and deferred credits		192		331			442			965

Total liabilities	$	52,482	$	49,970		$	205,795		$	308,247

We have included the results of operations for each of these acquired entities in our consolidated statements of operations from January 19, 2011, the date of acquisition. For the period January 19, 2011 through December 31, 2011, the acquired entities contributed $57.7 million to total revenue, $48.0 million to operating expenses, $9.7 million to operating income and $(6.8) million to net income (loss).

On March 11, 2011, we acquired an approximately 361,000 square foot, 16-story, LEED Platinum certified office building located at 100 SW Main Street, in Portland, Oregon ("First & Main"). The purchase price for First & Main was approximately $128.9 million, excluding closing costs of approximately $0.1 million, which are included in other income (expense), net on the statement of operations. The purchase was funded using cash on hand and structured to accommodate a reverse tax deferred exchange in conjunction with the sale of Valencia Corporate Center pursuant to the provisions of Section 1031 of the Code and applicable state revenue and taxation code sections.

On July 1, 2011, we acquired the Lloyd District Portfolio, consisting of approximately 610,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The Lloyd District Portfolio is comprised of six office buildings within four contiguous blocks, including (i) a condominium interest in the 20-story Lloyd Tower, (ii) the 16-story Lloyd 700 Building and (iii) four low-rise landmark buildings within Oregon Square. The purchase price was approximately $91.6 million, excluding closing costs of approximately $0.1 million, which are included in other income (expense), net on the statement of operations. The purchase was funded using cash on hand.

On September 20, 2011, we acquired the Solana Beach—Highway 101 property, consisting of approximately 1.7 acres located in Solana Beach, California. The purchase price was approximately $6.8 million, excluding closing costs of approximately $0.2 million, which are included in other income (expense), net on the statement of operations. The purchase was funded through cash on hand. On December 14, 2011, we acquired an additional parcel adjacent to the original property, consisting of approximately 0.2 acres. The purchase price was approximately $1.3 million. The purchase was funded through cash on hand. The property consists primarily of land held for future development.

The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. Using information available at the time the acquisition closed, we allocated the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. The identified intangible assets and liabilities are being amortized over a weighted average life of 11.4 years, 3.8 years and 1.5 years for First & Main, Lloyd District Portfolio and Solana Beach—Highway 101, respectively. The allocation of the purchase prices was as follows (in thousands):


	First & Main		Lloyd District Portfolio		Solana Beach— Highway 101		Total
Land	$	14,697	$	18,660	$	7,847	$	41,204
Building		102,597		53,325		190		156,112
Land improvements		151		1,444		—		1,595
Tenant improvements		6,991		5,909		12		12,912
Construction in progress		—		723		—		723

Total real estate		124,436		80,061		8,049		212,546
Accounts receivable, net		153		—		—		153
Lease intangibles		9,578		13,164		51		22,793
Prepaid expenses and other assets		296		10		—		306

Total assets	$	134,463	$	93,235	$	8,100	$	235,798

Accounts payable and accrued expenses	$	387	$	188	$	12	$	587
Security deposits payable		—		426		7		433
Lease intangibles		5,199		502		—		5,701
Other liabilities and deferred credits		—		519		—		519

Total liabilities	$	5,586	$	1,635	$	19	$	7,240

We have included the results of operations for First & Main, Lloyd District Portfolio and Solana Beach—Highway 101 in our consolidated statements of operations from the date of acquisition. For the period of acquisition through December 31, 2011, First & Main, Lloyd District Portfolio and Solana Beach—Highway 101, collectively, contributed $16.1 million to total revenue, $12.9 million to operating expenses, $3.2 million to operating income and $1.1 million to net income.

2010 Acquisitions

On June 30, 2010, our Predecessor acquired the controlling interests in an office building located in San Francisco, California, known as The Landmark at One Market. Prior to the acquisition of the controlling interests in The Landmark at One Market, our Predecessor owned a 35% noncontrolling interest in the entity owning the property, which was accounted for under the equity method of accounting. The aggregate net acquisition cost for this property approximated $23.0 million. Upon acquisition, our Predecessor remeasured the assets and liabilities at fair value and recorded a gain of $4.3 million which is shown as gain on acquisition in the accompanying statement of operations. The gain was calculated based on the difference between the estimated fair value of the ownership interest of $12.1 million compared to the historical cost interest of $7.8 million. The fair value was estimated utilizing the price paid for the outside ownership interest as an indicator of value; and our Predecessor compared this value to market data. The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. Using information available at the time the acquisition closed, our Predecessor allocated the purchase price to tangible assets and liabilities and identified intangible assets and liabilities. Subsequently, our Predecessor adjusted the preliminary purchase price allocation after obtaining more information about asset valuations and liabilities assumed. The identified intangible assets are being amortized over a weighted average life of 6.4 years.

The allocation of the estimated fair value of the acquired The Landmark at One Market assets and liabilities was as follows (in thousands):


Land	$	34,575
Building		136,015
Land improvements		41
Tenant improvements		5,140

Total real estate		175,771
Cash and cash equivalents		3,249
Accounts receivable, net		193
Lease intangibles		12,298
Prepaid expenses and other assets		25

Total assets	$	191,536

Secured notes payable	$	133,000
Accounts payable and accrued expenses		928
Security deposits payable		162
Lease intangibles		21,232
Other liabilities and deferred credits		1,099

Total liabilities	$	156,421

We have included The Landmark at One Market's results of operations in our combined results of operations from the date of acquisition of June 30, 2010. For the year ended December 31, 2011, The Landmark at One Market contributed $20.5 million to total revenue, $12.8 million to operating expenses, $7.7 million to operating income and $(1.3) million to net income (loss). For the year ended December 31, 2010, The Landmark at One Market contributed $10.2 million to total revenue, $8.0 million to operating expenses, $2.2 million to operating income and $(1.6) million to net income (loss).

On November 10, 2010, our Predecessor purchased an 80,000 rentable square foot vacant building on 6.77 acres of land located at the Carmel Mountain Plaza property for $13.2 million. The building was vacated by Mervyn's in conjunction with its bankruptcy. The purchase price was allocated $4.9 million to buildings and is being depreciated over a useful life of 35 years. The remainder was allocated to the land value.

Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of the Waikiki Beach Walk entities, Solana Beach Centre entities, First & Main, Lloyd District Portfolio and Solana Beach—Highway 101 with the historical results of operations of the Company/Predecessor on a pro forma basis, as though the entities had been acquired on January 1, 2010. The pro forma financial information for the year ended December 31, 2010, also includes the pro forma results of operations for The Landmark at One Market, as though the entity had been acquired on January 1, 2010. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place on January 1, 2010. The pro forma financial information includes adjustments to depreciation expense for acquired property and equipment, adjustments to amortization charges for acquired intangible assets and liabilities, adjustments to straight-line rent revenue and the removal of the gain on acquisition of the controlling interests of the Solana Beach Centre entities and Waikiki Beach Walk entities for the year ended December 31, 2011 and The Landmark at One Market for the year ended December 31, 2010.

The following table summarizes the unaudited pro forma financial information (in thousands):


	Year Ended December 31, 2011					Year Ended December 31, 2010
	As Reported		Pro Forma			As Reported		Pro Forma
Total revenue	$	209,823	$	221,060		$	124,527	$	210,691
Total operating expenses		151,047		161,535			79,760		149,901
Operating income		58,776		59,525			44,767		60,790
Net income (loss)	$	19,324	$	(26,587	)⁽¹⁾	$	2,174	$	(5,706	)

(1)	The net loss for the year ended December 31, 2011 includes one-time expenses for the early extinguishment of debt and loan transfer and consent fees but excludes the gain on acquisition of the controlling interests in the Solana Beach Centre entities and the Waikiki Beach Walk entities.

Dispositions

On August 30, 2011, we sold Valencia Corporate Center for a sales price of $31.0 million. The property is located in Santa Clarita, California and was previously included in our office segment. The decision to sell Valencia Corporate Center was a result of our desire to focus resources on our core, high-barrier-to-entry markets. The sale was completed as a reverse tax deferred exchange in conjunction with the acquisition of First & Main pursuant to the provisions of Section 1031 of the Code and applicable state revenue and taxation code sections. As a result of the sale, Valencia Corporate Center no longer serves as a borrowing base property under our revolving credit facility.

We determined that Valencia Corporate Center became a discontinued operation in the third quarter of 2011. We have, therefore, classified Valencia Corporate Center's net assets, liabilities and operating results as discontinued operations on our balance sheets and our statements of operations for all periods prior to the sale.

Net revenue and net income from the property's discontinued operations were as follows (in thousands):


	Year Ended December 31,
	2011		2010		2009
Net revenue from discontinued operations	$	3,096	$	4,422	$	4,457
Results from discontinued operations
Income from discontinued operations		1,099		331		494
Gain on sale of real estate from discontinued operations		3,981		—		—

Total income from discontinued operations	$	5,080	$	331	$	494

- Definition

The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 66

-Paragraph 4, 5, 37, 50, 59, 65, 95, 97

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-Publisher OTS

-Name Federal Regulation (FR)

-Number Title 12

-Chapter V

-Section 563c.102

-Paragraph 10

-Subparagraph a, b

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-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

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-Publisher AICPA

-Name Statement of Position (SOP)

-Number 01-6

-Paragraph 13

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 11

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-Name Audit and Accounting Guide (AAG)

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 10

-Subparagraph 4

-Article 9

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-Publisher FASB

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-Name Accounting Standards Codification

-Topic 970

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-Paragraph 1

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-Name Statement of Position (SOP)

-Number 75-2

-Paragraph 47, 51, 52

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 2

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-Publisher SEC

-Name Regulation S-X (SX)

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-Paragraph c

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-Article 5

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-Publisher SEC

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 6

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-Article 5

Reference 17: http://www.xbrl.org/2003/role/presentationRef

-Publisher OTS

-Name Federal Regulation (FR)

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-Section 563c.102

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Chapter 3

-Section A

-Paragraph 9

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-Number 154

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-Number 67

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-Name FASB Interpretation (FIN)

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+ Details

Investments In Real Estate Joint Ventures

12 Months Ended

Dec. 31, 2011

Investments In Real Estate Joint Ventures [Abstract]

Investments In Real Estate Joint Ventures

NOTE 3. INVESTMENTS IN REAL ESTATE JOINT VENTURES

As of December 31, 2010, our Predecessor had four joint venture arrangements with unrelated third parties. Our Predecessor owned from 25% to 80% of each of these ventures. For two of these ventures, our Predecessor was the general partner or managing member; however, the outside owners were either a co-general partner or had substantive participating rights, and our Predecessor could not make significant decisions without the outside owners' approval. Accordingly, we accounted for these investments under the equity method. Our Predecessor acted as the manager of the three properties owned by these two ventures and received fees in accordance with service contracts (Note 16).

For the joint venture that owned a mixed-use property in Honolulu, Hawaii, our Predecessor had an effective 80% limited ownership interest in the property; however, the outside owner was the managing member and managed the day-to-day business of the property. In addition, our Predecessor did not have "kick-out" rights relating to the outside owner's managing membership interest. Accordingly, we accounted for these investments under the equity method of accounting.

The properties owned by these unconsolidated joint ventures at December 31, 2010 were as follows:


Property	Type	Location
Solana Beach Towne Centre	Retail	Solana Beach, CA
Solana Beach Corporate Centre	Office	Solana Beach, CA
Fireman's Fund Headquarters	Office	Novato, CA
Waikiki Beach Walk	Mixed Use	Honolulu, HI

As noted above, as part of the Formation Transactions, we acquired the unrelated third party's interest in Solana Beach Towne Centre, Solana Beach Corporate Centre and Waikiki Beach Walk. We consolidated the operations of these properties subsequent to the Formation Transactions. The Predecessor's ownership interest in Fireman's Fund Headquarters was not acquired, and rather the ownership interests in this entity were distributed to its owners as part of the Formation Transactions. In addition, we no longer receive fee income from these ventures.

The following tables provide summarized operating results and the financial position of the unconsolidated entities (in thousands):


	Year Ended December 31,
	2010			2009
OPERATING RESULTS
Revenue	$	88,762		$	101,458
Expenses
Other operating expenses		34,607			41,293
Impairment loss ⁽¹⁾		38,465			—
Depreciation and amortization		29,012			33,066
Interest expense		29,835			33,130

Total expenses		131,919			107,489

Net loss	$	(43,157	)	$	(6,031	)

Our share of net loss	$	(4,406	)⁽²⁾	$	(4,865	)

(1)

The venture recorded an impairment loss on the real estate property on the venture's financial statements during the year ended December 31, 2010. During 2008, we recorded an impairment of our equity method investment in the Fireman's Fund Headquarters real estate venture, as we determined that during 2008 the fair value of our equity method investment in the Fireman's Fund Headquarters was below our historical cost as a result of a reduction in real estate values due to the credit crisis that occurred during 2008. As a result, for the year ended December 31, 2010, we did not record our share of the impairment losses recorded on the venture's financial statements, as we believe our investment in the Fireman's Fund Headquarters joint venture at December 31, 2010 (adjusted for previously recorded impairment losses) was not impaired.

(2)	Excludes the gain recorded on the acquisition of The Landmark at One Market of $4,297.


	Year Ended December 31, 2010
	(In thousands)
BALANCE SHEET
Real estate, net	$	456,714
Cash		14,995
Other assets		49,717

Total assets	$	521,426

Mortgages payable	$	459,922
Notes payable to affiliate		14,824
Other liabilities		20,982
Partners' capital		25,698

Total liabilities and partners' capital	$	521,426

Our share of unconsolidated debt	$	246,480

Our share of partners' capital	$	(10,457	)

Our investment in real estate joint ventures	$	39,816
Our distributions in excess of earnings of real estate joint ventures		(14,060	)

Our investment in real estate joint ventures, net	$	25,756

The difference between our investment in real estate ventures and our share of the underlying capital is attributable to the following items which are included in our investments in the real estate ventures: estimated impairment losses relating to our investments, the allocation of fair value in excess of historical cost recorded upon formation of our investment in the venture, capitalized interest, and intercompany profit elimination adjustments. These differences are recognized by us in our share of net income or loss and upon the sale of the real estate held by the real estate ventures.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References+ Details

Acquired In-Place Leases And Above/Below Market Leases

12 Months Ended

Dec. 31, 2011

Acquired In-Place Leases And Above/Below Market Leases [Abstract]

Acquired In-Place Leases And Above/Below Market Leases

NOTE 4. ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

The following summarizes our acquired lease intangibles, which are included in prepaid expenses and other assets and other liabilities and deferred credits, as of December 31, 2011 and 2010 (in thousands):


	December 31, 2011			December 31, 2010
In-place leases	$	59,812		$	41,108
Accumulated amortization		(30,924	)		(30,901	)
Above market leases		42,428			33,557
Accumulated amortization		(25,657	)		(21,433	)

Acquired lease intangible assets, net	$	45,659		$	22,331

Below market leases	$	70,332		$	54,576
Accumulated accretion		(21,715	)		(21,546	)

Acquired lease intangible liabilities, net	$	48,617		$	33,030

The value allocated to in-place leases is amortized over the related lease term as depreciation and amortization expense in the statement of operations. Above and below market leases are amortized over the related lease term as additional rental income for below market leases or a reduction of rental income for above market leases in the statement of operations. Rental income (loss) included net amortization from acquired above and below market leases of $(2.5) million, $(2.3) million and $(1.4) million in 2011, 2010 and 2009, respectively. The remaining weighted-average amortization period as of December 31, 2011, is 6.3 years, 4.6 years and 13.3 years for in-place leases, above market leases and below market leases, respectively. Below market leases include $21.3 million related to below market renewal options, and the weighted-average period prior to the commencement of the renewal options is 11.2 years.

Increases (decreases) in net income as a result of amortization of our in-place leases, above market leases and below market leases are as follows (in thousands):


	Year Ended December 31,
	2011			2010			2009
Amortization of in-place leases	$	(9,006	)	$	(3,630	)	$	(2,173	)
Amortization of above market leases		(7,090	)		(4,281	)		(2,931	)
Amortization of below market leases		4,594			1,964			1,524

Net loss	$	(11,502	)	$	(5,947	)	$	(3,580	)

As of December 31, 2011, the amortization for acquired in-place leases during the next five years and thereafter, assuming no early lease terminations, is as follows (in thousands):


	In-Place Leases		Above Market Leases		Below Market Leases
Year Ending December 31,
2012	$	8,125	$	5,767	$	4,180
2013		5,683		3,711		3,753
2014		3,735		2,210		3,347
2015		2,915		1,806		3,325
2016		2,125		1,284		3,230
Thereafter		6,305		1,993		30,782

	$	28,888	$	16,771	$	48,617

- Definition

The entire disclosure for all or part of the information related to intangible assets.

+ References+ Details

Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

NOTE 6. FAIR VALUE OF FINANCIAL INSTRUMENTS

A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 Inputs—quoted prices in active markets for identical assets or liabilities

Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 Inputs—unobservable inputs

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. Financial assets and liabilities whose fair values we measure on a recurring basis using Level 2 inputs consist of GNMA securities and our deferred compensation liability. We measure the fair values of these assets and liability based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques.

The fair value of our secured notes payable and unsecured notes payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable, using rates ranging from 4.0% to 8.4%.

Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the carrying amount and fair value of our financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):


	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
Marketable securities	$	28,235	$	28,235	$	—	$	—
Secured notes payable, including discontinued operations		943,479		974,273		851,547		871,016
Unsecured notes payable		—		—		38,013		38,023
Deferred compensation liability	$	520	$	520	$	—	$	—

Due to their related party nature, notes with affiliates outstanding at December 31, 2010 cannot be measured at fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 16

-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 133

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15C, 15D

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-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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+ Details

Prepaid Expenses And Other Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses And Other Assets [Abstract]

Prepaid Expenses And Other Assets

NOTE 7. PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets consist of the following (in thousands):


	December 31, 2011		December 31, 2010
Leasing commissions, net of accumulated amortization of $14,722 and $13,136, respectively	$	18,207	$	10,724
Acquired above market leases, net		16,771		12,124
Acquired in-place leases, net		28,888		10,207
Lease incentives, net of accumulated amortization of $1,850 and $1,480, respectively		1,850		2,220
Other intangible assets, net of accumulated amortization of $3,885 and $1,325, respectively		987		364
Debt issuance costs, net of accumulated amortization of $2,509 and $2,683, respectively		3,392		2,209
Purchase deposit		3,000		—
Prepaid expenses, deposits and other		3,190		5,870

Total prepaid expenses and other assets	$	76,285	$	43,718

Lease incentives are amortized over the term of the related lease and included as a reduction of rental income in the statement of operations. The purchase deposit at December 31, 2011 relates to the acquisition of One Beach Street, in San Francisco, California. Such acquisition was completed on January 24, 2012 (Note 19). Prepaid expenses and deposits included $5.3 million in costs related to the Offering at December 31, 2010, which were recorded as a reduction of capital at the time of the Offering.

Other Liabilities And Deferred Credits

12 Months Ended

Dec. 31, 2011

Other Liabilities And Deferred Credits [Abstract]

Other Liabilities And Deferred Credits

NOTE 8. OTHER LIABILITIES AND DEFERRED CREDITS

Other liabilities and deferred credits consist of the following (in thousands):


	December 31, 2011		December 31, 2010
Acquired below market leases, net	$	48,617	$	33,030
Prepaid rent and deferred revenue		5,008		5,145
Straight-line rent liability		433		622
Deferred rent expense and lease intangible		1,122		—
Deferred compensation		520		—
Other liabilities		108		49

Total other liabilities and deferred credits	$	55,808	$	38,846

Straight-line rent liability relates to leases which have rental payments that decrease over time or one-time upfront payments for which the rental revenue is deferred and recognized on a straight-line basis.

Debt

12 Months Ended

Dec. 31, 2011

Debt [Abstract]

Debt

NOTE 9. DEBT

The following is a summary of our total debt outstanding as of December 31, 2011 and December 31, 2010 (in thousands):


Description of Debt	Principal Balance as of					Stated Interest Rate as of December 31, 2011			Stated Maturity Date
Description of Debt	December 31, 2011			December 31, 2010		Stated Interest Rate as of December 31, 2011			Stated Maturity Date
Secured Notes Payable
160 King Street ^(1)(2)(3)(4)	$	—		$	8,564		N/A			November 1, 2012
Carmel Country Plaza ⁽¹⁾⁽⁵⁾		—			10,145		N/A			January 2, 2013
Santa Fe Park RV Resort ⁽¹⁾⁽⁵⁾		—			1,856		N/A			January 2, 2013
Lomas Santa Fe Plaza⁽¹⁾⁽⁵⁾		—			19,599		N/A			May 1, 2013
Torrey Reserve—South Court ⁽¹⁾⁽⁵⁾		—			12,892		N/A			May 1, 2013
Carmel Mountain Plaza⁽¹⁾⁽⁵⁾		—			62,907		N/A			June 1, 2013
Alamo Quarry Market ⁽⁵⁾⁽⁶⁾		96,027			98,011		5.67	%		January 8, 2014
160 King Street⁽⁷⁾		31,412			32,931		5.68	%		May 1, 2014
Waikele Center⁽³⁾		140,700			140,700		5.15	%		November 1, 2014
The Shops at Kalakaua ⁽³⁾		19,000			19,000		5.45	%		May 1, 2015
The Landmark at One Market⁽³⁾⁽⁶⁾		133,000			133,000		5.61	%		July 5, 2015
Del Monte Center ⁽³⁾		82,300			82,300		4.93	%		July 8, 2015
Rancho Carmel Plaza⁽¹⁾⁽⁵⁾		—			8,049		N/A			January 1, 2016
First & Main⁽³⁾		84,500			—		3.97	%		July 1, 2016
Imperial Beach Gardens⁽³⁾		20,000			20,000		6.16	%		September 1, 2016
Mariner's Point⁽³⁾		7,700			7,700		6.09	%		September 1, 2016
Torrey Reserve—ICW Plaza⁽¹⁾⁽³⁾		—			43,000		N/A			February 1, 2017
South Bay Marketplace ⁽³⁾		23,000			23,000		5.48	%		February 10, 2017
Waikiki Beach Walk—Retail ⁽³⁾		130,310			—		5.39	%		July 1, 2017
Solana Beach Corporate Centre III-IV ⁽⁸⁾		37,330			—		6.39	%		August 1, 2017
Loma Palisades⁽³⁾		73,744			73,744		6.09	%		July 1, 2018
Torrey Reserve—North Court ⁽⁵⁾		21,921			22,165		7.22	%		June 1, 2019
Torrey Reserve—Torrey Daycare ⁽¹⁾⁽⁹⁾		—			1,660		N/A			June 1, 2019
Torrey Reserve—VCI, VCII, VCIII ⁽⁵⁾		7,380			7,462		6.36	%		June 1, 2020
Solana Beach Corporate Centre I-II ⁽⁵⁾		11,788			—		5.91	%		June 1, 2020
Solana Beach Towne Centre⁽⁵⁾		39,293			—		5.91	%		June 1, 2020

		959,405			828,685

Unamortized fair value adjustment		(15,926	)		—

		943,479			828,685

Unsecured Notes Payable
Waikele Center Notes ^(1)(2)(3)		—			5,813		N/A			February 15, 2011
Landmark Note ^(1)(2)(3)		—			19,000		N/A			July 1, 2013
Carmel Mountain Note ^(1)(2)(3)		—			13,200		N/A			August 1, 2013

		—			38,013

Notes Payable to Affiliates
Del Monte Center Affiliates ^(1)(10)		—			5,266		N/A			March 1, 2013
Debt of Discontinued Operations
Secured Notes Payable
Valencia Corporate Center ^(1)(2)(11)		—			7,223		N/A			February 1, 2011
Valencia Corporate Center ⁽¹⁾⁽⁵⁾		—			15,639		N/A			October 1, 2012

		—			22,862

Total Debt Outstanding	$	943,479		$	894,826

(1)	Note was voluntarily repaid in full as part of the Formation Transactions.

(2)	Loan was fully or partially guaranteed by owners or affiliates.

(3)	Interest only.

(4)	Secured by the owners' equity interests in the entity.

(5)	Principal payments based on a 30-year amortization schedule.

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

(7)	Principal payments based on a 20-year amortization schedule.

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

(9)	Principal payments based on a 25-year amortization schedule. The interest rate will be reset to the greater of 6.50% or LIBOR plus 4.00% on June 1, 2014.

(10)	Principal payments based on a 5-year amortization schedule.

(11)	Interest rate has floor of 4.50%

We used a portion of net proceeds received from the Offering to repay in full certain outstanding indebtedness, including applicable prepayment costs, exit fees and defeasance costs. The defeasance costs of $24.3 million are included in early extinguishment of debt, along with $0.6 million of unamortized deferred loan fees and $0.9 million of unamortized debt fair value adjustments that were written off related to loans repaid at the time of the Offering. Additionally, we paid $9.0 million in loan transfer and consent fees to lenders, which were expensed as incurred, in order for the lenders to consent to the transfer of the existing loans at certain properties to the Operating Partnership as part of the Formation Transactions.

On June 1, 2011, we entered into a five-year non-recourse mortgage loan with PNC Bank, National Association with an original principal amount of $84.5 million. The loan is secured by a first-priority deed of trust on First & Main and an assignment of all leases, rents and security deposits relating to First & Main. The loan has a maturity date of July 1, 2016, bears interest at a fixed rate per annum of 3.97% and is interest only.

On November 10, 2010, our Predecessor obtained a $13.2 million unsecured loan related to the acquisition of the vacated Mervyn's building at Carmel Mountain Plaza. The loan bears interest at LIBOR plus 2.0% through November 1, 2011 with increases of 0.50% on November 2, 2011 and November 2, 2012. The loan would have matured on August 1, 2013 and required interest only payments through maturity, but the loan was repaid in full as part of the Formation Transactions.

On June 30, 2010, our Predecessor obtained a $23.0 million unsecured loan related to the acquisition of the third party's interests in Landmark. The loan bears interest at LIBOR plus 2.0% through July 1, 2011 with increases of 0.50% on July 2, 2011 and July 2, 2012. The loan would have matured on July 1, 2013, and required interest only payments through maturity, except for a one time repayment of $4.0 million paid on December 31, 2010, but the loan was repaid in full as part of the Formation Transactions.

On June 1, 2010, our Predecessor closed on a $7.5 million ten year loan secured by a deed of trust on the property owned by Torrey Reserve-VC I, Torrey Reserve-VC II, and Torrey Reserve-VC III in San Diego, California. The loan bears interest at 6.36% and matures on June 1, 2020. The proceeds from the loan were used to repay the outstanding loans on Torrey Reserve-VC I, Torrey Reserve-VC II, and Torrey Reserve-VC III, which had outstanding balances of $5.8 million at the time of repayment.

On March 18, 2010, the Waikele Center unsecured loans were modified to extend their maturity to February 15, 2011. The previous maturity date was February 15, 2010, which had been extended during 2009 from the original maturity date of January 1, 2009. These unsecured loans were repaid in full as part of the Formation Transactions.

On May 31, 2009, our Predecessor refinanced the then-existing loan on the Torrey Reserve-North Court property of $16.2 million with a new $22.5 million loan that bears interest at 7.22% and matures on June 1, 2019.

On May 31, 2009, our Predecessor refinanced the then existing loan on the Torrey Reserve-Daycare property of $0.9 million with a new $1.7 million loan which bore interest at 6.50%. The loan would have matured on June 1, 2019, but it was repaid in full as part of the Formation Transactions.

On January 20, 2009, the Valencia Corporate Center construction loan was modified, and the loan commitment of $11.7 million was reduced to $10.0 million. On November 5, 2009, the loan was further modified to reduce the loan commitment to $9.2 million and extend the maturity through November 1, 2010. At modification, a principal payment of $0.8 million was made to reduce the outstanding principal balance to $7.8 million. On November 8, 2010, the loan was again modified to extend the maturity through February 1, 2011, and a principal payment of $0.6 million was made to reduce the outstanding principal balance to $7.2 million. This loan is included in liabilities of discontinued operations on the balance sheet at December 31, 2010 and was repaid in full as part of the Formation Transactions.

Certain loans require us to comply with various financial covenants, including the maintenance of minimum debt coverage ratios. As of December 31, 2011, we were in compliance with all loan covenants.

Scheduled principal payments on notes payable as of December 31, 2011 are as follows (in thousands):


2012	$	4,822
2013		5,405
2014		262,095
2015		235,980
2016		113,974
Thereafter		337,129

	$	959,405

Credit Facility

On January 19, 2011, in connection with the Offering, we entered into a credit facility pursuant to which a group of lenders provided commitments for a revolving credit facility allowing borrowings of up to $250.0 million. At December 31, 2011, our maximum allowable borrowing amount was $191.8 million. The credit facility has an accordion feature that may allow us to increase the availability thereunder up to a maximum of $400.0 million, subject to meeting specified requirements and obtaining additional commitments from lenders. No amounts have been borrowed on the credit facility to date. The credit facility bears interest at the rate of either LIBOR or a base rate, in each case plus a margin that will vary depending on our leverage ratio. The amount available for us to borrow under the credit facility is subject to the net operating income of our properties that form the borrowing base of the facility and a minimum implied debt yield of such properties.

On March 7, 2011, the credit facility was amended to allow us or our Operating Partnership to purchase GNMA securities with maturities of up to 30 years. On January 10, 2012, the credit facility was amended a second time to (1) extend the maturity date to January 10, 2016 (with a one-year extension option), (2) decrease the applicable interest rates and (3) modify certain financial covenants contained therein (Note 19).

The amended credit facility includes a number of customary financial covenants, including:

•

a maximum leverage ratio (defined as total indebtedness net of certain unrestricted cash and cash equivalents to total asset value) of 60%,

•

a minimum fixed charge coverage ratio (defined as consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 1.50x,

•

a maximum secured leverage ratio (defined as total secured indebtedness to secured total asset value) of 50%,

•

a minimum tangible net worth equal to at least 75% of our tangible net worth at January 19, 2011, plus 85% of the net proceeds of any additional equity issuances (other than additional equity issuances in connection with any dividend reinvestment program), and

•

a $35.0 million limit on the maximum principal amount of recourse indebtedness we may have outstanding at any time, other than under the credit facility.

The credit facility provides that our annual distributions may not exceed the greater of (1) 95.0% of our funds from operations ("FFO") or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax. If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT.

We and certain of our subsidiaries guarantee the obligations under the credit facility, and certain of our subsidiaries pledged specified equity interests in our subsidiaries as collateral for our obligations under the credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Equity

12 Months Ended

Dec. 31, 2011

Equity [Abstract]

Equity

NOTE 10. EQUITY

Noncontrolling Interests

Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us. Noncontrolling interests consisted of 18,396,089 common units (the "noncontrolling common units"), and represented approximately 32% of the ownership interests in our Operating Partnership at December 31, 2011. Common units and shares of our common stock have essentially the same economic characteristics in that common units and shares of our common stock share equally in the total net income or loss distributions of our Operating Partnership. Investors who own common units have the right to cause our Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of our common stock, or, at our election, shares of our common stock on a one-for-one basis.

On February 14, 2011, we completed a private placement transaction of 251,050 common units for approximately $5.4 million.

Preferred Stock Authorized Shares

We have authorized to issue 10,000,000 shares of preferred stock with a par value of $0.01, of which no shares were outstanding at December 31, 2011. Upon issuance, our Board of Directors has the ability to define the terms of the preferred shares, including voting rights, liquidation preferences, conversion and redemption provisions and dividend rates.

Dividends

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units for the year ended December 31, 2011:


Period	Amount per Share/Unit		Period Covered	Dividend Paid Date
First Quarter 2011	$	0.17	January 19, 2011 to March 31, 2011		March 31, 2011
Second Quarter 2011	$	0.21	April 1, 2011 to June 30, 2011		June 30, 2011
Third Quarter 2011	$	0.21	July 1, 2011 to September 30, 2011		September 30, 2011
Fourth Quarter 2011	$	0.21	October 1, 2011 to December 31, 2011		December 29, 2011

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders and holders of common units, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. A summary of the income tax status of dividends per share paid is as follows:


	Per Share		%
Ordinary income	$	0.22		27.5	%
Capital gain		—		—	%
Return of capital		0.58		72.5	%

Total	$	0.80		100.0	%

Stock-Based Compensation

In connection with Offering, we adopted our 2011 Equity Incentive Award Plan ("2011 Plan"). The 2011 Plan provides for grants to directors, employees and consultants of the Company and the Operating Partnership of stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of 4,054,411 shares of our common stock are authorized for issuance under awards granted pursuant to the 2011 Plan, and as of December 31, 2011, 3,425,699 shares of common stock remain available for future issuance.

Concurrently with the closing of the Offering, we made grants of restricted shares of our common stock to certain executive officers under the 2011 Plan. At such time, we granted to such executive officers a total of 198,000 shares that are subject to timing-based vesting and 297,000 shares that are subject to performance-based vesting, with fair market values of $4.1 million for the timing-based vesting awards and $3.9 million for the performance-based vesting awards. Those awards subject to time-based vesting will vest, subject to the recipient's continued employment, in two substantially equal installments on each of the third and fourth anniversaries of the date of grant. The vesting of those restricted stock awards subject to performance-based vesting is based on the achievement of absolute and relative total shareholder return hurdles over a three-year performance period, commencing on January 19, 2011. Following the completion of the three-year performance period, our compensation committee will determine the number of shares to which the executive officer is entitled based on our performance relative to the performance hurdles set forth in the restricted stock award agreement he entered into in connection with his initial award grant. These shares will then vest in two substantially equal installments, with the first installment vesting on the third anniversary of the date of grant and the second installment vesting on the fourth anniversary of the date of grant, subject to the executive officer's continued employment on those dates.

Concurrently with the closing of the Offering, we also granted each of our non-employee directors 1,951 restricted shares of our common stock pursuant to the 2011 Plan. These awards of restricted stock will vest ratably as to one-third of the shares granted on each of the first three anniversaries of the date of grant, subject to the director's continued service on our board of directors, and had an aggregate fair value of $0.2 million on the date of the grants. On June 29, 2011, one of our directors notified us of his resignation as a director of the Company and, as a result, immediately forfeited the 1,951 restricted shares of our common stock previously granted to him, none of which had vested. On August 5, 2011, we granted 1,957 restricted shares of our common stock to a new non-employee director, with a fair value of $0.04 million on the date of the grant. The restricted stock will vest ratably as to one-third of the shares granted on each of the first three anniversaries of the date of grant, subject to the director's continued service on our board of directors.

On March 16, 2011, we granted a total of 123,950 restricted shares of our common stock to certain other employees pursuant to the 2011 Plan with a fair value of $1.6 million. These shares are subject to performance-based vesting, with the terms described above related to performance-based vesting.

For the performance-based stock awards, the fair value of the awards was estimated using a Monte Carlo Simulation model. Our stock price, along with the stock prices of the group of peer REITs, is assumed to follow the Multivariate Geometric Brownian Motion Process. Multivariate Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on the stock price of the Company and the group REITs were estimated based on a three year look-back period. The expected growth rate of the stock prices over the "derived service period" of the employee is determined with consideration of the risk free rate as of the grant date. For the restricted stock grants that are time-vesting, we estimate the stock compensation expense based on the fair value of the stock at the grant date.

The following table summarizes the activity of non-vested restricted stock awards during the year ended December 31, 2011:


	Units			Weighted Average Grant Date Fair Value
Balance at beginning of year		—		$	—
Granted		630,663			15.45
Vested		—			—
Forfeited		(1,951	)		20.50

Balance at end of year		628,712		$	15.43

None of the restricted shares were vested at December 31, 2011. We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $2.6 million in noncash compensation expense for the year ended December 31, 2011, which is included in general and administrative expense on the statement of operations. Unrecognized compensation expense was $7.1 million, which will be recognized over a weighted-average period of 2.6 years.

Earnings Per Share

We have calculated earnings per share ("EPS") under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings. For the year ended December 31, 2011, we had a weighted average of approximately 578,489 unvested shares outstanding, respectively, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares.

Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the year ended December 31, 2011, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. Additionally, the unvested restricted stock awards subject to time vesting are anti-dilutive for all periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.

The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts):


	Year Ended December 31, 2011
Numerator
Income from continuing operations	$	14,244
Less: Net income attributable to restricted shares		(482	)
Plus: Loss from continuing operations attributable to Predecessor's noncontrolling interests in consolidated real estate entities		2,454
Less: Income from continuing operations attributable to Predecessor's controlled owners' equity		(17,009	)
Plus: Loss from continuing operations attributable to unitholders in the Operating Partnership		255

Loss from continuing operations attributable to American Assets Trust, Inc. common stockholders—basic		(538	)
Plus: Results from discontinued operations attributable to American Assets Trust, Inc. common stockholders		3,455

Net income attributable to common stockholders—basic	$	2,917

Loss from continuing operations attributable to American Assets Trust, Inc. common stockholders—basic	$	(538	)
Less: Loss from continuing operations attributable to unitholders in the Operating Partnership		(255	)

Loss from continuing operations attributable to common stockholders—diluted		(793	)
Plus: Results from discontinued operations attributable to American Assets Trust, Inc. common stockholders		3,455
Plus: Results from discontinued operations attributable to unitholders in the Operating Partnership		1,643

Net income attributable to common stockholders—diluted	$	4,305

Denominator
Weighted average common shares outstanding—basic		36,748,806
Effect of dilutive securities—conversion of Operating Partnership units		17,471,001

Weighted average common shares outstanding—diluted		54,219,807

Earnings (loss) per common share—basic
Continuing operations	$	(0.01	)
Discontinued operations		0.09

	$	0.08

Earnings (loss) per common share—diluted
Continuing operations	$	(0.01	)
Discontinued operations		0.09

	$	0.08

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

NOTE 11. INCOME TAXES

We will elect to be taxed as a REIT under the Code. Provided we qualify for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. Taxable income from non-REIT activities managed through our TRS is subject to federal and state income taxes.

We lease our hotel property to a wholly owned TRS that is subject to federal and state income taxes. We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between GAAP carrying amounts and their respective tax bases. There are no temporary differences giving rise to any deferred tax assets (liabilities) as of December 31, 2011.

The income tax provision included in other income (expense) on the consolidated statement of operations is as follows (in thousands):


	Year Ended December 31, 2011
Current:
Federal	$	483
State		90

Provision for income taxes	$	573

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

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-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 12. COMMITMENTS AND CONTINGENCIES

Legal

We are sometimes involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.

We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also, under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us as owner of the properties due to certain matters relating to the operation of the properties by the tenant.

Commitments

At The Landmark at One Market, we lease, as lessee, a building adjacent to The Landmark under an operating lease effective through June 30, 2016, which we have the option to extend until 2026 by way of two five-year extension options.

At Waikiki Beach Walk, we sublease a portion of the building of which Quiksilver is currently in possession, under an operating lease effective through December 31, 2021, which we have the option to extend at fair rental value in the event the sublessor extends its lease for the space with the master landlord. The lease payments under the lease will increase by approximately 3.4% annually through 2017 and, thereafter, will be equal to fair rental value, as defined in the lease, through lease expiration.

Current minimum annual payments under the leases are as follows, as of December 31, 2011 (in thousands):


2012	$	2,436
2013		2,502
2014		2,569
2015		2,636
2016		1,709
Thereafter		3,701	⁽¹⁾

	$	15,553

(1)	Lease payments on the Waikiki Beach Walk lease will be equal to fair rental value from March 2017 through the end of the lease term. In the table, we have shown the lease payments for this period based on the stated rate for the month of February 2017 of $61,690.

We have management agreements with Outrigger Hotels & Resorts or an affiliate thereof ("Outrigger") pursuant to which Outrigger manages each of the retail and hotel portions of the Waikiki Beach Walk property. Under the management agreement with Outrigger relating to the retail portion of Waikiki Beach Walk (the "retail management agreement"), we pay Outrigger a monthly management fee of 3.0% of net revenues from the retail portion of Waikiki Beach Walk. Pursuant to the terms of the retail management agreement, if the agreement is terminated in certain instances, including our election not to repair damage or destruction at the property, a condemnation or our failure to make required working capital infusions, we would be obligated to pay Outrigger a termination fee equal to the sum of the management fees paid for the two calendar months immediately preceding the termination date. The retail management agreement may not be terminated by us or by Outrigger without cause. Under our management agreement with Outrigger relating to the hotel portion of Waikiki Beach Walk (the "hotel management agreement"), we pay Outrigger a monthly management fee of 6.0% of the hotel's gross operating profit, as well as 3.0% of the hotel's gross revenues; provided that the aggregate management fee payable to Outrigger for any year shall not exceed 3.5% of the hotel's gross revenues for such fiscal year. Pursuant to the terms of the hotel management agreement, if the agreement is terminated in certain instances, including upon a transfer by us of the hotel or upon a default by us under the hotel management agreement, we would be required to pay a cancellation fee calculated by multiplying (1) the management fees for the previous 12 months by (2) (a) eight, if the agreement is terminated in the first 11 years of its term, or (b) four, three, two or one, if the agreement is terminated in the twelfth, thirteenth, fourteenth or fifteenth year, respectively, of its term. The hotel management agreement may not be terminated by us or by Outrigger without cause.

A wholly owned subsidiary of our Operating Partnership, WBW Hotel Lessee LLC, entered into a franchise license agreement with Embassy Suites Franchise LLC, the franchisor of the brand "Embassy Suites™," to obtain the non-exclusive right to operate the hotel under the Embassy Suites brand for 20 years. The franchise license agreement provides that WBW Hotel Lessee LLC must comply with certain management, operational, record keeping, accounting, reporting and marketing standards and procedures. In connection with this agreement, we are also subject to the terms of a product improvement plan pursuant to which we expect to undertake certain actions to ensure that our hotel's infrastructure is maintained in compliance with the franchisor's brand standards. In addition, we must pay to Embassy Suites Franchise LLC a monthly franchise royalty fee equal to 4.0% of the hotel's gross room revenue through December 2021 and 5.0% of the hotel's gross room revenue thereafter, as well as a monthly program fee equal to 4.0% of the hotel's gross room revenue.

In connection with our acquisition of Lloyd District Portfolio, we entered into a property management agreement with Ashforth Pacific, Inc., which was subsequently assigned to Langley Investment Properties, Inc. ("Langley"). Pursuant to the property management agreement, Langley manages and operates Lloyd District Portfolio, and we pay Langley a monthly management fee of 3.5% of "gross receipts," as defined in the property management agreement, as well as leasing commissions and construction oversight fees in certain situations. The property management agreement is for an initial term of two years, with three one-year renewal options, exercisable by us in our sole discretion. The property management agreement may not be terminated by us or by Langley without cause during the initial term.

Our Del Monte Center property has ongoing environmental remediation related to ground water contamination. The environmental issue existed at purchase and remediation is expected to conclude within the next three years. The work performed is financed through an escrow account funded by the seller upon purchase of the property. We believe the funds in the escrow account are sufficient for the remaining work to be performed. However, if further work is required costing more than the remaining escrow funds, we could be required to pay such overage, although we may have a contractual claim for such costs against the prior owner or our environmental remediation consultant.

In connection with the Formation Transactions, we entered into tax protection agreements with certain limited partners of our Operating Partnership. These agreements provide that if we dispose of any interest with respect to Carmel Country Plaza, Carmel Mountain Plaza, Del Monte Center, Loma Palisades, Lomas Santa Fe Plaza, Waikele Center or the ICW Plaza portion of Torrey Reserve Campus, in a taxable transaction during the period from the closing of the Offering through January 19, 2018, we will indemnify such limited partners for their tax liabilities attributable to their share of the built-in gain that existed with respect to such property interest as of the time of the Offering and tax liabilities incurred as a result of the reimbursement payment. Subject to certain exceptions and limitations, the indemnification rights will terminate for any such protected partner that sells, exchanges or otherwise disposes of more than 50% of his or her common units. We have no present intention to sell or otherwise dispose of the properties or interest therein in taxable transactions during the restriction period. If we were to trigger the tax protection provisions under these agreements, we would be required to pay damages in the amount of the taxes owed by these limited partners (plus additional damages in the amount of the taxes incurred as a result of such payment).

Concentrations of Credit Risk

Our properties are located in Southern California, Northern California, Hawaii, Oregon and Texas. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate. Thirteen of our consolidated properties, representing 33.5% of our total revenue for the year ended December 31, 2011, are located in Southern California, which exposes us to greater economic risks than if we owned a more geographically diverse portfolio. Our mixed-use property located in Honolulu, Hawaii accounted for 21.3% of total revenues for the year ended December 31, 2011.

Tenants in the retail industry accounted for 41.2% and 62.8% of total revenues for the years ended December 31, 2011 and 2010, respectively. This makes us susceptible to demand for retail rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the retail industry. Two retail properties, Alamo Quarry Market and Waikele Center, accounted for 18.8% and 31.2% of total revenues for the years ended December 31, 2011 and 2010, respectively.

For the years ended December 31, 2011 and 2010, no tenant accounted for more than 10% of our total rental revenue. At December 31, 2011, salesforce.com, inc. at The Landmark at One Market accounted for 7.2% of total annualized base rent. Five other tenants (Lowe's, Kmart, DLA Piper, Veterans Benefits Administration and Microsoft) comprise 12.1% of our total annualized based rent at December 31, 2011, in the aggregate. No other tenants represent greater than 2.0% of our total annualized base rent. Total annualized base rent used for the percentage calculations includes the annualized base rent as of December 31, 2011 for our office properties, retail properties and the retail portion of a mixed-use property.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 9, 10, 11, 12

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-SubTopic 10

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-Paragraph 1

-Subparagraph (SX 210.5-02.25)

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-Name Accounting Standards Codification

-Topic 450

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-Paragraph 4

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-Name Accounting Standards Codification

-Topic 460

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-Paragraph 8

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-Name Accounting Standards Codification

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-SubTopic 10

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-Paragraph 2

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-Name Accounting Standards Codification

-Topic 825

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Operating Leases

12 Months Ended

Dec. 31, 2011

Operating Leases [Abstract]

Operating Leases

NOTE 13. OPERATING LEASES

At December 31, 2011, our retail, office and mixed-use properties are located in four states: California, Oregon, Hawaii and Texas. At December 31, 2011, we have approximately 769 leases with office and retail tenants, including the retail portion of our mixed-use property. Our multifamily properties are located in Southern California, and we have approximately 753 leases with residential tenants at December 31, 2011, excluding Santa Fe Park RV Resort.

Our leases with office, retail, mixed-use and residential tenants are classified as operating leases. Leases at our office and retail properties and the retail portion of our mixed-use property generally range from three to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, usually provide for cost recoveries for the tenant's share of certain operating costs and also may include percentage rents based on the tenant's level of sales achieved. Leases on apartments generally range from 7 to 15 months, with a majority having 12 month lease terms. Rooms at the hotel portion of our mixed-use property are rented on a nightly basis.

As of December 31, 2011, minimum future rentals from noncancelable operating leases before any reserve for uncollectible amounts and assuming no early lease terminations, at our office and retail properties and the retail portion of our mixed-use property are as follows for the years ended December 31 (in thousands):


2012	$	134,732
2013		122,102
2014		98,615
2015		84,610
2016		68,920
Thereafter		154,711

Total	$	663,690

The above future minimum rentals exclude residential leases and exclude the hotel, as rooms are rented on a nightly basis.

- Definition

The entire disclosure for operating leases of a lessor. This may inlcude a general description of lessor's leasing arrangements for operating leases, including the basis on which contingent rental payments are determined, the existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.

+ References+ Details

Components Of Rental Income And Expense

12 Months Ended

Dec. 31, 2011

Components Of Rental Income And Expense [Abstract]

Components Of Rental Income And Expense

NOTE 14. COMPONENTS OF RENTAL INCOME AND EXPENSE

The principal components of rental income are as follows (in thousands):


	Year Ended December 31,
	2011		2010		2009
Minimum rents
Retail	$	63,996	$	57,509	$	57,332
Office		57,979		28,158		18,995
Multifamily		13,246		13,076		13,361
Mixed-Use		8,478		—		—
Cost reimbursement		25,483		19,611		16,845
Percentage rent		1,967		1,217		1,184
Hotel revenue		27,125		—		—
Other		1,467		1,178		931

Total rental income	$	199,741	$	120,749	$	108,648

Minimum rents include $5.1 million, $0.2 million and $0.8 million for the years ended December 31, 2011, 2010 and 2009, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $(2.5) million, $(2.3) million and $(1.4) million for the years ended December 31, 2011, 2010 and 2009, respectively, to recognize the amortization of above and below market leases.

The principal components of rental expenses are as follows (in thousands):


	Year Ended December 31,
	2011		2010		2009
Rental operating	$	23,196	$	13,523	$	11,435
Hotel operating		18,885		—		—
Repairs and maintenance		8,687		5,607		5,950
Marketing		1,401		682		777
Rent		2,767		1,192		—
Hawaii excise tax		3,379		1,057		1,044
Management fees		1,622		89		194

Total rental expenses	$	59,937	$	22,150	$	19,400

Other Income (Expense)

12 Months Ended

Dec. 31, 2011

Other Income (Expense) [Abstract]

Other Income (Expense)

NOTE 15. OTHER INCOME (EXPENSE)

The principal components of other income (expense), net are as follows (in thousands):


	Year Ended December 31,
	2011			2010			2009
Interest and investment income	$	1,621		$	73		$	168
Income tax expense		(573	)		—			—
Loss from real estate joint ventures		(188	)		(4,406	)		(4,865	)
Acquisition related expenses		(434	)		—			—
Fee income from real estate joint ventures		44			2,487			1,736

Total other income (expense)	$	470		$	(1,846	)	$	(2,961	)

Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

NOTE 16. RELATED PARTY TRANSACTIONS

Prior to the Offering and Formation Transactions, we acted as the manager for certain unconsolidated real estate joint ventures and earned fees for these services (excluding Waikiki Beach Walk). Each unconsolidated joint venture (excluding Waikiki Beach Walk) had a master management agreement with additional agreements covering property management, construction management, acquisition, disposition and leasing and asset management. These agreements provided for the following fees to be paid to us by these unconsolidated joint ventures:

•

Property Management Fees—Property management fees were incurred for the operation and management of the properties. Fees ranged from 1.25% to 5.5% of gross monthly cash collections each month, with minimum monthly fees ranging from $2,500 to $5,000.

•

Construction Management Fees—Construction management fees were incurred for the management and supervision of construction projects owned by the unconsolidated joint ventures. Fees ranged from 3.0% to 5.0% of construction and development costs on buildings and improvements for most properties although certain agreements provided for a flat fee. For tenant improvements, fees were 10.0% of costs for projects where we directly supervised construction subcontractors or 3.0% for projects where we managed a general contractor, plus hourly fees for employees directly working on the tenant improvements.

•

Acquisition and Disposition Fees—Acquisition and disposition fees were incurred for services provided in conjunction with acquisition and disposition of the properties owned by the unconsolidated real estate joint ventures. Fees were either 0.5% or 1.0% of the total value of all the acquisitions or dispositions.

•

Leasing Fees—Leasing fees were incurred for services provided to procure tenants for the properties owned by the unconsolidated joint ventures. Fees were 1.0% of the total value of all leases executed for the properties, including new leases, renewals, extensions or other modifications.

•

Asset Management Fees/Financing Fees—Asset management fees were incurred for evaluating property value, performance and/or condition, appealing property assessments or tax valuations, recommending ways to enhance value and procuring financing. The fees were charged at hourly rates ranging from $40 to $125 for asset management services. In addition, financing fees were paid for any permanent financing placed on the properties, with fees of either 25 to 50 basis points of the financed amount or a flat fee of $50,000.

In addition to the fees noted above, certain unconsolidated joint ventures also reimbursed us for monthly maintenance and facilities management services provided to the properties owned by the unconsolidated joint ventures.

Fees earned by us from the unconsolidated joint ventures, which are included in other income (expense), net, are as follows (in thousands):


	Year Ended December 31,
	2011		2010		2009
Property management fees	$	38	$	1,233	$	1,604
Leasing fees		—		957		—
Asset management fees/financing fees		—		130		—
Maintenance reimbursements		6		120		120
Construction management fees		—		47		12

	$	44	$	2,487	$	1,736

Subsequent to the Formation Transactions, we no longer earn fees from unconsolidated joint ventures.

At December 31, 2010, accounts payable and accrued expenses included $0.3 million related to amounts paid by AAI on behalf of the properties for loan transfer and consent fee and loan defeasance fee deposits, which was repaid upon completion of the Offering.

Certain affiliated entities made loans to an affiliate in order to attain a higher return on excess cash balances, and these loans were classified as notes receivable from affiliate. The notes bore interest at LIBOR and were to be repaid upon demand. The notes receivable were settled as part of the Formation Transactions. A summary of the outstanding notes receivable from affiliate balances and related interest income are as follows (in thousands):


	As of and for the year ended December 31,
	2011		2010		2009
Notes receivable from affiliate	$	—	$	21,769	$	20,969
Interest income	$	3	$	59	$	76

We received unsecured loans on January 15, 2008, from certain of the entities that own Del Monte Center, for $12.0 million, the proceeds of which were used to fund construction at the property. The notes bore interest at 10.0% and required monthly principal and interest payments until maturity on March 1, 2013. The notes were classified as notes payable to affiliates. The notes were repaid using proceeds from the Offering or were settled as part of the Formation Transactions. Interest expense related to the notes was $0.03 million, $0.6 million and $0.9 million for the years ended December 31, 2011, 2010 and 2009, respectively.

At ICW Plaza, we lease space to Insurance Company of the West, which is under the indirect control of Ernest Rady, our Executive Chairman of the Board. Rental revenue recognized on the leases of $2.3 million, $2.5 million and $2.8 million for the years ended December 31, 2011, 2010 and 2009, respectively, is included in rental income. In May 2011, the lease agreement at ICW Plaza was amended to terminate the lease of approximately 12,000 square feet and reduce base rent on one suite in line with market rent. Additionally, we leased space to Insurance Company of the West at Valencia Corporate Center until the sale of Valencia Corporate Center on August 30, 2011, and rental revenue recognized on these leases of $1.2 million, $1.7 million and $1.9 million for the years ended December 31, 2011, 2010 and 2009, respectively, is included in discontinued operations.

The Waikiki Beach Walk entities have a 47.7% investment in WBW CHP LLC, an entity that was formed to, among other things, construct a chilled water plant to provide air conditioning to the property and other adjacent facilities. The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $1.0 million were made for the year ended December 31, 2011 and included in rental expenses on the statement of operations.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 4

-Section 08

-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 3A

-Section 04

-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 1-4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 4

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-SubTopic 10

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(k))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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-Topic 850

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

NOTE 17. SEGMENT REPORTING

We evaluate the performance of our segments based on segment profit which is defined as property revenue less property expenses. We do not use asset information as a measure to assess performance and make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.

Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.

The following table represents operating activity within our reportable segments (in thousands):


	Year Ended December 31,
	2011			2010			2009
*Total Retail*
Property revenue	$	86,511		$	78,234		$	75,895
Property expense		(24,512	)		(20,185	)		(17,191	)

Segment profit		61,999			58,049			58,704

*Total Office*
Property revenue		64,357			32,153			22,178
Property expense		(20,628	)		(9,730	)		(5,472	)

Segment profit		43,729			22,423			16,706

*Total Multifamily*
Property revenue		14,321			14,140			14,513
Property expense		(5,578	)		(4,723	)		(4,687	)

Segment profit		8,743			9,417			9,826

*Total Mixed-Use*
Property revenue		44,634			—			—
Property expense		(28,774	)		—			—

Segment profit		15,860			—			—

Total segments' profit	$	130,331		$	89,889		$	85,236

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):


	Year Ended December 31,
	2011			2010			2009
Total segments' profit	$	130,331		$	89,889		$	85,236
General and administrative		(13,916	)		(8,766	)		(7,023	)
Depreciation and amortization		(57,639	)		(36,356	)		(28,473	)
Interest expense		(56,487	)		(45,375	)		(42,034	)
Early extinguishment of debt		(25,867	)		—			—
Loan transfer and consent fees		(9,019	)		—			—
Gain on acquisition		46,371			4,297			—
Other income (expense), net		470			(1,846	)		(2,961	)

Income from continuing operations		14,244			1,843			4,745
Discontinued operations
Income from discontinued operations		1,099			331			494
Gain on sale of real estate property		3,981			—			—

Results from discontinued operations		5,080			331			494

Net income		19,324			2,174			5,239
Net income attributable to restricted shares		(482	)		—			—
Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities		2,458			2,205			1,205
Net income attributable to Predecessor's controlled owners' equity		(16,995	)		(4,379	)		(6,444	)
Net income attributable to unitholders in the Operating Partnership		(1,388	)		—			—

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

The following table shows net real estate and secured note payable balances for each of the segments, along with their capital expenditures for each year (in thousands):


	December 31, 2011		December 31, 2010
Net real estate
Retail	$	655,450	$	582,193
Office		551,955		296,591
Multifamily		37,187		38,387
Mixed-Use		208,089		—

	$	1,452,681	$	917,171

Secured Notes Payable ⁽¹⁾
Retail	$	400,320	$	463,711
Office		327,331		261,674
Multifamily		101,444		103,300
Mixed-Use		130,310		—

	$	959,405	$	828,685

Capital Expenditures ⁽²⁾
Retail	$	5,110	$	4,055
Office		7,034		1,207
Multifamily		615		495
Mixed-Use		1,492		—

	$	14,251	$	5,757

(1)	Excludes unamortized fair market value adjustment of $15.9 million.

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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

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-Name Statement of Financial Accounting Standard (FAS)

-Number 131

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Quarterly Financial Information

12 Months Ended

Dec. 31, 2011

Quarterly Financial Information [Abstract]

Quarterly Financial Information

NOTE 18. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The tables below reflect selected quarterly information for 2011 and 2010 (in thousands):


	Three Months Ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011
Total revenue	$	55,547		$	56,293		$	51,100		$	46,883
Operating income		14,722			15,156			13,893			15,005
Income (loss) from continuing operations		675			310			(6	)		13,265
Results from discontinued operations		(20	)		4,308			461			331
Net income		655			4,618			455			13,596
Net income attributable to restricted shares		(132	)		(132	)		(132	)		(86	)
Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities		—			—			—			2,458
Net income attributable to Predecessor's controlled owners' equity		—			—			—			(16,995	)
Net (income) loss attributable to unitholders in the Operating Partnership		(179	)		(1,434	)		(104	)		329
Net income (loss) attributable to American Assets Trust, Inc. stockholders	$	344		$	3,052		$	219		$	(698	)
Net income from continuing operations attributable to common stockholders—basic and diluted	$	0.01		$	—		$	—		$	(0.03	)
Net income from discontinued operations attributable to common stockholders—basic and diluted	$	—		$	0.08		$	0.01		$	0.01
Net income attributable to common stockholders—basic and diluted	$	0.01		$	0.08		$	0.01		$	(0.02	)

	Three Months Ended
	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Total revenue	$	33,552		$	34,963		$	28,168		$	27,844
Operating income		9,980			11,430			11,616			11,741
Income (loss) from continuing operations		(3,095	)		(1,237	)		5,719			456
Results from discontinued operations		99			44			120			68
Net income (loss)		(2,996	)		(1,193	)		5,839			524
Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities		264			1,042			469			430
Net (income) loss attributable to Predecessor's controlled owners' equity	$	2,732		$	151		$	(6,308	)	$	(954	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2011
Subsequent Events [Abstract]
Subsequent Events	NOTE 19. SUBSEQUENT EVENTS On January 10, 2012, the credit facility was amended to, among other things, (1) extend the maturity date to January 10, 2016 (with a one-year extension option subject to payment of a 0.15% fee), (2) decrease the applicable interest rates and (3) modify certain financial covenants. The second amendment provides for an interest rate based on, at our option, either (1) one-, two-, three- or six-month LIBOR, plus, in each case, a spread (ranging from 1.60%-2.20%) based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) federal funds rate plus 0.50% or (c) Eurodollar rate plus 1.00%. Such rates are more favorable than previously contained in the revolving credit facility. In addition, the amendment reduces our secured debt ratio covenant under the credit facility to 50%. At the time of the amendment, our availability on the line of credit increased to approximately $214.2 million. On January 24, 2012, we completed the acquisition of One Beach Street, consisting of approximately 97,000 rentable square feet in a renovated historic office building located along the Embarcadero in San Francisco's North Waterfront District. The purchase price was approximately $36 million, excluding closing costs, which was paid with cash on hand. We are in the process of preparing the purchase price allocation for this acquisition.

Schedule III - Real Estate And Accumulated Depreciation

12 Months Ended

Dec. 31, 2011

Schedule III - Real Estate And Accumulated Depreciation [Abstract]

Schedule III - Real Estate And Accumulated Depreciation

American Assets Trust, Inc.

SCHEDULE III—Consolidated Real Estate and Accumulated Depreciation

(In Thousands)


			Initial Cost						Gross Carrying Amount at December 31, 2011										Life on which depreciation in latest income statements is computed
Description	Encumbrance as of December 31, 2011		Land		Building and Improvements		Cost Capitalized Subsequent to Acquisition		Land		Building and Improvements		Accumulated Depreciation and Amortization			Year Built/ Renovated	Date Acquired
Alamo Quarry Market	$	96,027	$	26,396	$	109,294	$	8,101	$	26,816	$	116,975	$	(30,134	)	1997/1999		12/9/2003		35 years
Carmel Country Plaza		—		4,200		—		11,270		4,200		11,270		(6,169	)	1991		1/10/1989		35 years
Carmel Mountain Plaza		—		22,477		65,217		16,489		31,035		73,148		(20,598	)	1994		3/28/2003		35 years
Del Monte Center		82,300		27,412		87,570		18,978		27,117		106,843		(31,282	)	1967/1984/2006		4/8/2004		35 years
Lomas Santa Fe Plaza		—		8,600		11,282		9,329		8,620		20,591		(11,156	)	1972/1997		6/12/1995		35 years
Rancho Carmel Plaza		—		3,450		—		3,417		3,487		3,380		(1,993	)	1993		4/30/1990		35 years
The Shops at Kalakaua		19,000		13,993		10,919		100		14,006		11,006		(2,361	)	1971/2006		3/31/2005		35 years
Solana Beach Towne Centre		39,293		40,980		38,842		1,089		40,980		39,931		(1,323	)	1973/2000/2004		1/19/2011		35 years
South Bay Marketplace		23,000		4,401		—		10,129		4,401		10,129		(5,485	)	1997		9/16/1995		35 years
Waikele Center		140,700		55,593		126,858		56,790		70,643		168,598		(35,326	)	1993/2008		9/16/2004		35 years
160 King Street		31,412		15,104		42,578		781		15,104		43,359		(9,728	)	2002		5/2/2005		40 years
First & Main		84,500		14,697		109,739		1,154		14,697		110,893		(2,961	)	2010		3/11/2011		40 years
The Landmark at One Market		133,000		34,575		141,196		460		34,575		141,656		(6,348	)	1917/2000		6/30/2010		40 years
Lloyd District Portfolio		—		18,660		61,401		1,157		18,660		62,558		(1,753	)	1940-2011		7/1/2011		40 years
Solana Beach Corporate Centre:
Solana Beach Corporate Centre I-II		11,788		7,111		17,100		364		7,111		17,464		(673	)	1982/2005		1/19/2011		40 years
Solana Beach Corporate Centre III-IV		37,330		7,298		27,887		336		7,298		28,223		(1,070	)	1982/2005		1/19/2011		40 years
Solana Beach Corporate Centre Land		—		487		—		20		487		20		—		N/A		1/19/2011		N/A
Torrey Reserve:
ICW Plaza		—		4,095		—		23,886		4,377		23,604		(8,729	)	1996-1997		6/6/1989		40 years
Pacific North Court		21,921		3,263		—		24,325		6,092		21,496		(8,574	)	1997-1998		6/6/1989		40 years
Pacific South Court		—		3,285		—		22,909		6,275		19,919		(8,536	)	1996-1997		6/6/1989		40 years
Pacific VC		7,380		1,413		—		8,502		2,506		7,409		(3,248	)	1998/2000		6/6/1989		40 years
Pacific Torrey Daycare		—		715		—		2,001		1,247		1,469		(649	)	1996-1997		6/6/1989		40 years
Torrey Reserve Land		—		229		—		2,886		388		2,727		(358	)	N/A		6/6/1989		N/A
Imperial Beach Gardens		20,000		1,281		4,820		3,659		1,281		8,479		(6,528	)	1959/2008-present		7/31/1985		30 years
Loma Palisades		73,744		14,000		16,570		17,176		14,051		33,695		(20,562	)	1958/2001-2008		7/20/1990		30 years
Mariner's Point		7,700		2,744		4,540		666		2,744		5,206		(1,948	)	1986		5/9/2001		30 years
Santa Fe Park RV Resort		—		401		928		729		401		1,657		(1,289	)	1971/2007-2008		6/1/1979		30 years
Waikiki Beach Walk:
Retail		130,310		45,995		74,943		53		45,995		74,996		(2,307	)	2006		1/19/2011		35 years
Hotel		—		30,640		60,029		1,355		30,640		61,384		(2,619	)	2008		1/19/2011		35 years
Solana Beach—Highway 101 Land		—		7,847		202		73		7,847		275		(21	)	N/A		9/20/2011		N/A
Sorrento Valley Holdings Land		—		2,073		741		3,021		2,073		3,762		(867	)	N/A		5/9/1997		N/A

	$	959,405	$	423,415	$	1,012,656	$	251,205	$	455,154	$	1,232,122	$	(234,595	)


	Year ended December 31,
	2011			2010			2009
Real estate assets
Balance, beginning of period	$	1,165,097			968,332			962,102
Additions:
Property acquisitions		563,858			188,971			—
Improvements		13,595			8,383			6,503
Deductions:
Cost of Real Estate Sold		(37,599	)		—			—
Other ⁽¹⁾		(17,675	)		(589	)		(273	)

Balance, end of period	$	1,687,276		$	1,165,097		$	968,332

Accumulated depreciation
Balance, beginning of period	$	221,997		$	194,124		$	168,865
Additions—depreciation		42,498			28,462			25,259
Deductions:
Cost of Real Estate Sold		(12,225	)		—			—
Other ⁽¹⁾		(17,675	)		(589	)		—

Balance, end of period	$	234,595		$	221,997		$	194,124

(1)	Other deductions for the years ended December 31, 2011 and 2010 represent the write-off of fully depreciated assets. Other deductions for the year ended December 31, 2009 represent the write-off of abandoned project costs.

- Definition

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

+ References+ Details

Marketable Securities	12 Months Ended
Marketable Securities	Dec. 31, 2011
Marketable Securities [Abstract]
Marketable Securities	NOTE 5. MARKETABLE SECURITIES Our portfolio of marketable securities is comprised of debt securities that are classified as trading securities. At December 31, 2011, our marketable securities consisted of investments in mortgage-backed securities issued by the Government National Mortgage Association ("GNMA securities"). We report our trading securities at fair value, using prices provided by independent market participants that are based on observable inputs using market-based valuation techniques (Level 2 of the fair value hierarchy-see Note 6). Gains and losses resulting from the mark-to-market of these securities are recognized as unrealized gains or losses in income. For the year ended December 31, 2011, unrealized gains in our statement of operations, which are included in other income (expense), were $0.1 million. Cumulative unrealized gains were $0.1 million as of December 31, 2011.