American Assets Trust, Inc.AAT
American Assets Trust, Inc. Segments Disclosure
SEGMENT REPORTING
For the year ended December 31, 2025, the CODM for the company was comprised of our President and Chief Executive Officer and our Chief Financial Officer.
Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. However, we have aggregated our properties into reportable segments as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies.
We operate in four reportable business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.
Regular reportable segment updates are provided directly to the CODM. These updates include the performance of our segments based on segment profit which is defined as property revenue less property expenses, and this serves as the profit or loss measure used by the CODM for performance assessment and resource allocation. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and the CODM in understanding the core operations of our properties. Segment profit provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income.
Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.
A significant segment expense is a category of expenses and amounts regularly provided to the CODM that is included in the calculation of each reported measure of segment profit or loss. Further, the CODM will use this measure to assess segment performance in deciding how to allocate resources. Significant expenses included in the reportable segment profit or loss measure are presented by rental expenses and real estate taxes for each reportable segment. Rental expenses includes facilities service expense, utilities expense, repairs and maintenance expense, insurance expense and other costs.
The following table represents the significant segment expenses and operating activity within our reportable segments (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total Office | |||||||||||||||||
| Property revenue | $ | 206,037 | $ | 215,778 | $ | 207,856 | |||||||||||
| Rental expenses | 46,223 | 43,181 | 40,627 | ||||||||||||||
| Real estate taxes | 20,675 | 19,053 | 20,712 | ||||||||||||||
| Property expense | 66,898 | 62,234 | 61,339 | ||||||||||||||
| Segment profit | 139,139 | 153,544 | 146,517 | ||||||||||||||
| Total Retail | |||||||||||||||||
| Property revenue | 95,122 | 109,040 | 104,767 | ||||||||||||||
| Rental expenses | 14,823 | 18,578 | 18,008 | ||||||||||||||
| Real estate taxes | 11,961 | 13,930 | 13,432 | ||||||||||||||
| Property expense | 26,784 | 32,508 | 31,440 | ||||||||||||||
| Segment profit | 68,338 | 76,532 | 73,327 | ||||||||||||||
| Total Multifamily | |||||||||||||||||
| Property revenue | 68,961 | 65,372 | 61,830 | ||||||||||||||
| Rental expenses | 23,810 | 21,603 | 20,788 | ||||||||||||||
| Real estate taxes | 8,141 | 7,186 | 7,237 | ||||||||||||||
| Property expense | 31,951 | 28,789 | 28,025 | ||||||||||||||
| Segment profit | 37,010 | 36,583 | 33,805 | ||||||||||||||
| Total Mixed-Use | |||||||||||||||||
| Property revenue | 66,084 | 67,665 | 66,711 | ||||||||||||||
| Rental expenses | 39,745 | 40,141 | 39,378 | ||||||||||||||
| Real estate taxes | 4,217 | 4,055 | 3,775 | ||||||||||||||
| Property expense | 43,962 | 44,196 | 43,153 | ||||||||||||||
| Segment profit | 22,122 | 23,469 | 23,558 | ||||||||||||||
| Total segments’ profit | $ | 266,609 | $ | 290,128 | $ | 277,207 | |||||||||||
The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total segments' profit | $ | 266,609 | $ | 290,128 | $ | 277,207 | |||||||||||
| General and administrative | (37,841) | (35,468) | (35,960) | ||||||||||||||
| Depreciation and amortization | (127,312) | (125,461) | (119,500) | ||||||||||||||
| Interest expense, net | (78,120) | (74,527) | (64,706) | ||||||||||||||
| Gain on sale of real estate | 44,476 | — | — | ||||||||||||||
| Other income, net | 3,558 | 18,147 | 7,649 | ||||||||||||||
| Net income | 71,370 | 72,819 | 64,690 | ||||||||||||||
| Net income attributable to restricted shares | (852) | (787) | (761) | ||||||||||||||
Net income attributable to unitholders in the Operating Partnership | (14,870) | (15,234) | (13,551) | ||||||||||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 55,648 | $ | 56,798 | $ | 50,378 | |||||||||||
The following table shows net real estate and secured note payable balances for each of the reportable segments, along with their capital expenditures for each year (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Net real estate | |||||||||||
| Office | $ | 1,587,316 | $ | 1,597,458 | |||||||
Retail (1) | 469,733 | 478,037 | |||||||||
| Multifamily | 406,163 | 351,016 | |||||||||
| Mixed-Use | 156,156 | 160,975 | |||||||||
| $ | 2,619,368 | $ | 2,587,486 | ||||||||
Secured Notes Payable (2) | |||||||||||
| Office | $ | 75,000 | $ | 75,000 | |||||||
| Retail | — | — | |||||||||
| $ | 75,000 | $ | 75,000 | ||||||||
Capital Expenditures (3) | |||||||||||
| Office | $ | 61,510 | $ | 56,720 | |||||||
| Retail | 11,510 | 13,568 | |||||||||
| Multifamily | 5,094 | 5,637 | |||||||||
| Mixed-Use | 2,306 | 1,482 | |||||||||
| $ | 80,420 | $ | 77,407 | ||||||||
(1)Excludes the real estate assets held for sale as of December 31, 2024.
(2)Excludes unamortized debt issuance costs of $0.2 million and $0.2 million as of December 31, 2025 and 2024, respectively.
(3)Capital expenditures represent cash paid for capital expenditures during the year and includes leasing commissions paid.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.