AMERICAN ASSETS TRUST : MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (kind 10-Q)

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Ahead-Trying Statements
The next dialogue ought to be learn along side the consolidated
monetary statements and notes thereto showing elsewhere on this report. We
make statements on this report which might be forward-looking statements throughout the
which means of the Non-public Securities Litigation Reform Act of 1995 (set forth in
Part 27A of the Securities Act of 1933, as amended, or the Securities Act,
and Part 21E of the Securities Trade Act of 1934, as amended, or the
Trade Act). Particularly, statements pertaining to our capital sources,
portfolio efficiency and outcomes of operations include forward-looking
statements. Likewise, all of our statements relating to anticipated development in our
funds from operations and anticipated market situations, demographics and
outcomes of operations are forward-looking statements. You may determine
forward-looking statements by means of forward-looking terminology equivalent to
"believes," "expects," "might," "will," "ought to," "seeks," "roughly,"
"intends," "plans," "professional forma," "estimates" or "anticipates" or the damaging of
these phrases and phrases or related phrases or phrases that are predictions of or
point out future occasions or developments and which don't relate solely to historic
issues. At present, probably the most vital threat components, is the potential
opposed impact of the present COVID-19 pandemic on our monetary situation,
outcomes of operations, money flows and efficiency or that of, our tenants and
friends, the true property market and the worldwide financial system and monetary markets. The
extent to which the COVID-19 pandemic impacts us, our tenants and friends will
rely on future developments, that are extremely unsure and can't be
predicted with confidence, together with the scope, severity and period of the
pandemic, the actions taken to include the pandemic or mitigate its impression, and
the direct and oblique financial results of the pandemic and containment
measures, amongst others. You can too determine forward-looking statements by
discussions of technique, plans or intentions.
Ahead-looking statements contain quite a few dangers and uncertainties and also you
shouldn't depend on them as predictions of future occasions. Ahead-looking
statements rely on assumptions, information or strategies which can be incorrect or
imprecise and we might not be capable of understand them. We don't assure that the
transactions and occasions described will occur as described (or that they'll
occur in any respect). The next components, amongst others, may trigger precise outcomes
and future occasions to vary materially from these set forth or contemplated in
the forward-looking statements:
•the impression of epidemics, pandemics, or different outbreaks of sickness, illness or
virus (such because the COVID-19 pandemic) and the actions taken by authorities
authorities and others associated thereto, together with the power of our firm,
our properties and our tenants to function;
•opposed financial or actual property developments in our markets;
•our failure to generate ample money flows to service our excellent
indebtedness;
•defaults on, early terminations of or non-renewal of leases by tenants,
together with vital tenants;
•difficulties in figuring out properties to accumulate and finishing acquisitions;
•difficulties in finishing tendencies;
•our failure to efficiently function acquired properties and operations;
•our incapacity to develop or redevelop our properties on account of market situations;
•fluctuations in rates of interest and elevated working prices;
•dangers associated to three way partnership preparations;
•our failure to acquire needed exterior financing;
•on-going litigation;
•basic financial situations;
•monetary market fluctuations;
•dangers that have an effect on the overall retail, workplace, multifamily and mixed-use
atmosphere;
•the aggressive atmosphere through which we function;
•decreased rental charges or elevated emptiness charges;
•conflicts of pursuits with our officers or administrators;
•lack or inadequate quantities of insurance coverage;
•environmental uncertainties and dangers associated to opposed climate situations and
pure disasters;
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•different components affecting the true property trade typically;
•limitations imposed on our enterprise and our means to fulfill complicated guidelines in
order for us to proceed to qualify as an actual property funding belief, or REIT,
for U.S. federal earnings tax functions; and
•adjustments in governmental laws or interpretations thereof, equivalent to actual
property and zoning legal guidelines and will increase in actual property tax charges and taxation of
REITs.
Whereas forward-looking statements replicate our good religion beliefs, they aren't
ensures of future efficiency. We disclaim any obligation to publicly replace
or revise any forward-looking assertion to replicate adjustments in underlying
assumptions or components, new data, information or strategies, future occasions or different
adjustments. For an extra dialogue of those and different components, see the part
entitled "Merchandise 1A. Danger Components" contained herein and in our annual report on
Type 10-Okay for the 12 months ended December 31, 2020.
Overview
References to "we," "our," "us" and "our firm" discuss with American Property
Belief, Inc., a Maryland company, along with our consolidated
subsidiaries, together with American Property Belief, L.P., a Maryland restricted
partnership, of which we're the only real basic accomplice and which we discuss with in
this report as our Working Partnership.
We're a full service, vertically built-in and self-administered REIT that
owns, operates, acquires and develops prime quality retail, workplace, multifamily
and mixed-use properties in enticing, high-barrier-to-entry markets in
Southern California, Northern California, Oregon, Washington, Texas and Hawaii.
As of June 30, 2021, our portfolio was comprised of twelve retail procuring
facilities; 9 workplace properties; a mixed-use property consisting of a 369-room
all-suite lodge and a retail procuring middle; and 6 multifamily properties.
Moreover, as of June 30, 2021, we owned land at three of our properties that
we categorised as held for growth and/or development in progress. Our core
markets embrace San Diego; the San Francisco Bay Space; Portland, Oregon;
Bellevue, Washington; and Oahu, Hawaii. We're a Maryland company fashioned on
July 16, 2010 to accumulate the entities proudly owning numerous controlling and
noncontrolling pursuits in actual property belongings owned and/or managed by Ernest S.
Rady or his associates, together with the Ernest Rady Belief U/D/T March 13, 1983, or
the Rady Belief, and didn't have any working exercise till the consummation
of our preliminary public providing on January 19, 2011. Our Firm, as the only real
basic accomplice of our Working Partnership, has management of our Working
Partnership and owned 78.8% of our Working Partnership as of June 30, 2021.
Accordingly, we consolidate the belongings, liabilities and outcomes of operations of
our Working Partnership.
Essential Accounting Insurance policies
We recognized sure vital accounting insurance policies that have an effect on sure of our
extra vital estimates and assumptions utilized in getting ready our consolidated
monetary statements in our annual report on Type 10-Okay for the 12 months ended
December 31, 2020. We've not made any materials adjustments to those insurance policies
throughout the intervals lined by this report, apart from these described in
Footnote 1.

Identical-store

We've offered sure data on a complete portfolio, same-store and
redevelopment same-store foundation. Info offered on a same-store foundation
consists of the outcomes of properties that we owned and operated for the whole thing
of each intervals being in contrast aside from properties for which vital
redevelopment or enlargement occurred throughout both of the intervals being in contrast,
properties underneath growth, properties categorised as held for growth and
properties categorised as discontinued operations. Info offered on a
redevelopment same-store foundation consists of the outcomes of properties present process
vital redevelopment for the whole thing or portion of each intervals being
in contrast. Identical-store and redevelopment same-store are thought of by administration
to be vital measures as a result of they help in eliminating disparities on account of
the event, acquisition or disposition of properties throughout the specific
interval introduced, and thus gives a extra constant efficiency measure for
the comparability of the Firm's stabilized and redevelopment properties, as
relevant. Moreover, redevelopment same-store is taken into account by administration
to be an vital measure as a result of it assists in evaluating the timing of the
begin and stabilization of our redevelopment alternatives and the impression that
these redevelopments have in enhancing our working efficiency.
Whereas there may be judgment surrounding adjustments in designations, we sometimes
reclassify vital growth, redevelopment or enlargement properties into
same-store properties as soon as they're stabilized. Properties are deemed stabilized
sometimes on the earlier of (i) reaching 90% occupancy or (ii) 4 quarters
following a property's inclusion in working actual property. We sometimes take away
properties from same-store properties when the event, redevelopment or
enlargement has or is predicted to have a major impression on the property's
annualized base lease, occupancy and working earnings throughout the calendar 12 months.
Our analysis of great impression associated to growth, redevelopment or
enlargement exercise is predicated on
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quantitative and qualitative measures together with, however not restricted to the
following: the full budgeted value of deliberate development exercise in comparison with
the property's annualized base lease, occupancy and property working earnings
throughout the calendar 12 months; share of growth, redevelopment or enlargement
sq. footage to complete property sq. footage; and the power to take care of
historic occupancy and rental charges. In consideration of those measures, we
typically take away properties from same-store properties after we see a decline in
a property's annualized base lease, occupancy and working earnings throughout the
calendar 12 months as a direct results of ongoing redevelopment, growth or
enlargement exercise. Acquired properties are categorised into same-store
properties as soon as we've owned such properties for the whole thing of comparable
interval(s) and the properties are usually not underneath vital growth or enlargement.

Under is a abstract of our same-store composition for the three and 6 months
ended June 30, 2021 and 2020.  For the three months ended June 30, 2021, Waikele
Heart was reclassified to same-store properties when in comparison with the
designation for the three months ended June 30, 2020 as redevelopment exercise
on the property is on maintain for the close to future and is comparable for the three
months ended June 30, 2021. One Seaside Avenue is classed as a non-same-store
property on account of redevelopment exercise to renovate the property. Waikiki Seaside
Stroll Retail and Embassy Suites™ Lodge is classed as a non-same-store property
on account of spalling restore exercise beforehand disrupting the lodge portion of the
property's operations.

For the six months ended June 30, 2021, One Seaside Avenue was reclassified to
non-same-store properties when in comparison with the designation for the six months
ended June 30, 2020 on account of redevelopment exercise to renovate the property.
Waikiki Seaside Stroll Retail and Embassy Suites™ Lodge is classed as a
non-same-store property on account of spalling restore exercise disrupting the lodge
portion of the properties operations. Waikele Heart was reclassified to
same-store properties as redevelopment exercise is on maintain for the close to future

In our dedication of same-store and redevelopment same-store properties for
the six months ended June 30, 2021, One Seaside Avenue have been recognized as
same-store redevelopment properties on account of vital redevelopment exercise.
Retail same-store internet working earnings decreased roughly 12.8% for the six
months ended June 30, 2021 in comparison with the identical interval in 2020. Workplace
same-store internet working earnings elevated 2.0% for the six months ended June 30,
2021 in comparison with the identical interval in 2020. Workplace redevelopment same-store internet
working earnings elevated 1.6% for the six months ended June 30, 2021 in contrast
to the identical interval in 2020.

                                              Three Months Ended June 30,                                Six Months Ended June 30,
                                         2021                            2020                      2021                            2020
Identical-Retailer                                    26                              24                        26                              24
Non-Identical-Retailer                                 2                               4                         2                               4
Complete Properties                              28                              28                        28                              28

Redevelopment Identical-Retailer                      27                              26                        27                              26

Complete Growth Properties                   3                               3                         3                               3




Outlook

We search development in earnings, funds from operations and money flows primarily
by a mix of the next: development in our same-store portfolio,
development in our portfolio from property growth and redevelopments and
enlargement of our portfolio by property acquisitions. Our properties are
positioned in a number of the nation's most dynamic, high-barrier-to-entry markets
primarily in Southern California, Northern California, Oregon, Washington and
Hawaii, which permit us to make the most of redevelopment alternatives that
improve our working efficiency by renovation, enlargement, reconfiguration
and/or retenanting. We consider our properties on an ongoing foundation to determine
some of these alternatives.

We intend to opportunistically pursue the event of future phases of Lloyd
Portfolio and La Jolla Commons and the redevelopment of One Seaside Avenue primarily based
on, amongst different issues, market situations and our analysis of whether or not such
alternatives would generate applicable risk-adjusted monetary returns. Our
redevelopment and growth alternatives are topic to varied components,
together with market situations and will not finally come to fruition.

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We proceed to overview acquisition alternatives in our main markets that
would complement our portfolio and supply long-term development alternatives. Some
of our acquisitions don't initially contribute considerably to earnings
development; nevertheless, we consider they supply long-term re-leasing development,
redevelopment alternatives and different strategic alternatives. Any development from
acquisitions is contingent upon our means to search out properties that meet our
qualitative requirements at costs that meet our monetary hurdles. Modifications in
rates of interest might have an effect on our success in reaching earnings development by
acquisitions by affecting each the value that have to be paid to accumulate a
property, in addition to our means to economically finance a property acquisition.
Typically, our acquisitions are initially financed by accessible money, mortgage
loans and/or borrowings underneath our revolving line of credit score, which can be repaid
later with funds raised by the issuance of recent fairness or new long-term
debt.

COVID-19

We're intently monitoring the impression of COVID-19 pandemic on all elements of our
enterprise and geographies, together with the way it will impression our tenants and enterprise
companions. We're unable to foretell the impression that the COVID-19 pandemic will
have on our monetary situation, outcomes of operations and money flows on account of
quite a few uncertainties. These uncertainties embrace the scope, severity and
period of the pandemic, the actions taken to include the pandemic or mitigate
its impression and the direct and oblique financial results of the pandemic and
containment measures, amongst others. The outbreak of COVID-19 in lots of international locations,
together with america, has considerably adversely impacted world
financial exercise and has contributed to vital volatility and damaging
stress in monetary markets. The worldwide impression of the pandemic has been
quickly evolving. Sure states and cities, together with the place we personal properties,
have growth websites and the place our principal workplace is positioned,
have at numerous time limits, reacted by instituting quarantines, restrictions
on journey, "stay-at-home" orders or "shelter in place" guidelines, social distancing
measures, restrictions on kinds of enterprise that will proceed to function, and/or
restrictions on the kinds of development initiatives that will proceed. Although
sure restrictions have expired in our markets, the Firm can't predict
when remaining restrictions or social distancing measures at the moment in place
will expire. Even after sure of such restrictions are lifted or diminished, the
willingness of shoppers to go to sure of our tenants' companies could also be
diminished on account of lingering considerations relating to the continued threat of COVID-19
transmission and heightened sensitivity to dangers related to the
transmission of different ailments. In consequence, the COVID-19 pandemic is negatively
impacting nearly each trade immediately or not directly, together with industries in
which the Firm and our tenants function. Additional, the impacts of a possible
worsening of world financial situations and the continued disruptions to, and
volatility in, the credit score and monetary markets, client spending in addition to
different unanticipated penalties stay unknown.

As well as, we can't predict the impression that COVID-19 may have on our tenants
and different enterprise companions; nevertheless, any materials impact on these events may
adversely impression us. For the second quarter of 2021, we've collected so far
roughly 99% of workplace rents, 92% of retail rents (together with retail
part of Waikiki Seaside Stroll) and 94% of multifamily rents that had been due
throughout the second quarter of 2021. Moreover, for the second quarter of 2021,
we collected roughly $0.8 million or 94% of the deferred lease repayments
due throughout the interval.

We consider the corporate's monetary situation and liquidity are at the moment robust.
Though there may be uncertainty associated to the anticipated impression of the COVID-19
outbreak on the Firm's future outcomes, we consider our environment friendly enterprise
mannequin and ongoing steps we've taken to strengthen our stability sheet has
positioned to handle our enterprise by this disaster because it continues to unfold.
We proceed to handle all elements of our enterprise together with, however not restricted to,
monitoring the monetary well being of our tenants, distributors, and different third-party
relationships, and growing new alternatives for development. As a result of COVID-19
pandemic, we can't moderately estimate with any diploma of certainty the long run
impression COVID-19 might have on the Firm's outcomes of operations, monetary
place, and liquidity.

We stay inspired by our portfolio's rising lease assortment percentages
in addition to the broader macroeconomic situations associated to the continuing
transition again to a totally opened financial system. Whereas we proceed to watch the
COVID-19 vaccination response and financial initiatives undertaken by the brand new
administration, we're hopeful {that a} continued reopening of the financial system in 2021
will end in each job development and a rise in gross home product as
in comparison with 2020.

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Leasing

Our same-store development is primarily pushed by will increase in rental charges on new
leases and lease renewals and adjustments in portfolio occupancy. Over the
long-term, we consider that the infill nature and powerful demographics of our
properties present us with a strategic benefit, permitting us to take care of
comparatively excessive occupancy and improve rental charges. Moreover, we consider the
places of our properties and diversified portfolio will mitigate a number of the
doubtlessly damaging impression of the present financial atmosphere. Nonetheless, within the
short-term because of the COVID-19 pandemic, we've seen a significant damaging
impression on sure of our tenants operations and talent to pay lease, primarily
within the retail sector; and any discount in our tenants' skills to pay base
lease, share lease or different costs, together with on account of the COVID-19
pandemic, will adversely have an effect on our monetary situation and outcomes of
operations.
In the course of the three months ended June 30, 2021, we signed 14 workplace leases for a
complete of 47,684 sq. ft of workplace house together with 47,380 sq. ft of
comparable renewal workplace house leases (leases for which there was a previous
tenant), at a mean rental charge improve on a money and GAAP foundation of 9.3% and
14.7%, respectively. New workplace leases for comparable areas had been signed for
14,284 sq. ft at a mean rental charge improve on a money and GAAP foundation
of 8.4% and 11.7%, respectively. Renewals for comparable workplace areas had been
signed for 33,096 sq. ft at a mean rental charge improve on a money and
GAAP foundation of 9.6% and 15.8%, respectively. Tenant enhancements and incentives
had been $23.47 per sq. foot of workplace house for comparable new leases for the
three months ended June 30, 2021, primarily on account of tenants at Lloyd Portfolio &
Solana Crossing.

In the course of the three months ended June 30, 2021, we signed 30 retail leases for a
complete of 123,835 sq. ft of retail house together with 109,875 sq. ft of
comparable renewal retail house leases (leases for which there was a previous
tenant), at a mean rental charge lower on a money foundation and GAAP foundation of
20.3% and 15.7%, respectively. New retail leases for comparable areas had been
signed for 50,869 sq. ft at a mean rental charge lower on a money and
GAAP foundation of (37.6)% and (24.6)%, respectively. Renewals for comparable retail
areas had been signed for 59,006 sq. ft at a mean rental charge lower on
a money foundation of (1.3)% and improve on a GAAP foundation of 4.8%, respectively.
Tenant enhancements and incentives had been $40.32 per sq. foot of retail house
for comparable new leases for the three months ended June 30, 2021, primarily due
to tenants at Carmel Mountain Plaza and Waikiki Seaside Stroll Retail.

The rental will increase related to comparable areas typically embrace all
leases signed in arms-length transactions reflecting market leverage between
landlords and tenants throughout the interval. The comparability between common lease for
expiring leases and new leases is set by together with minimal lease and
share lease paid on the expiring lease and minimal lease and, in some
cases, projections of first lease 12 months share lease, to be paid on the
new lease. In some cases, administration workout routines judgment as to how one can most
successfully replicate the comparability of areas reported on this calculation.
The change in rental earnings on comparable house leases is impacted by quite a few
components together with present market charges, location, particular person tenant
creditworthiness, use of house, market situations when the expiring lease was
signed, capital funding made within the house and the precise lease construction.
Tenant enhancements and incentives embrace the full {dollars} dedicated for the
enchancment of an area because it pertains to a selected lease, however can also embrace
base-building prices (i.e. enlargement, escalators or new entrances) that are
required to make the house leasable. Incentives embrace quantities paid to tenants
as an inducement to signal a lease that don't symbolize constructing enhancements.

The leases signed in 2021 typically change into efficient over the next 12 months,
although some might not change into efficient till 2022 and past. Additional, there may be
threat that some new tenants won't finally take possession of their house
and that tenants for each new and renewal leases might not pay all of their
contractual lease on account of working, financing or different issues. Nonetheless, we
consider that these will increase do present details about the tenant/landlord
relationship and the potential fluctuations we might obtain in rental earnings over
time.

By the rest of 2021, we consider our leasing quantity will likely be under our
historic averages and end in total decreases in rental earnings because of the
COVID-19 pandemic. Nonetheless, adjustments in rental earnings related to particular person
signed leases on comparable areas could also be optimistic or damaging.
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Capitalized Prices

Sure exterior and inner prices immediately associated to the event and
redevelopment of actual property, together with pre-construction prices, actual property
taxes, insurance coverage, curiosity, development prices and salaries and associated prices of
personnel immediately concerned, are capitalized. We capitalize prices underneath
growth till development is considerably full and the property is
held accessible for occupancy. The dedication of when a growth venture is
considerably full and when capitalization should stop includes a level of
judgment. We think about a development venture as considerably full and held
accessible for occupancy upon the completion of landlord-owned tenant
enhancements or when the lessee takes possession of the unimproved house for
development of its personal enhancements, however not later than one 12 months from cessation
of main development exercise. We stop capitalization on the portion
considerably accomplished and occupied or held accessible for occupancy, and
capitalize solely these prices related to any remaining portion underneath
development.

We capitalized exterior and inner prices associated to each growth and
redevelopment actions mixed of $15.9 million and $1.4 million for the
three months ended June 30, 2021 and 2020, respectively. We capitalized exterior
and inner prices associated to each growth and redevelopment actions
mixed of $19.8 million and $2.7 million for the six months ended June 30,
2021 and 2020, respectively.

We capitalized exterior and inner prices associated to different property
enhancements mixed of $13.5 million and $12.5 million for the three months
ended June 30, 2021 and 2020, respectively. We capitalized exterior and inner
prices associated to different property enhancements totaling $22.9 million and $33.3
million for the six months ended June 30, 2021 and 2020, respectively.
Curiosity prices on developments and main redevelopments are capitalized as half
of developments and redevelopments not but positioned in service. Capitalization of
curiosity commences when growth actions and expenditures start and finish
upon completion, which is when the asset is prepared for its meant use as famous
above. We make judgments as to the time interval over which to capitalize such
prices and these assumptions have a direct impression on internet earnings as a result of
capitalized prices are usually not subtracted in calculating internet earnings. If the time
interval for capitalizing curiosity is prolonged, nevertheless, extra curiosity is
capitalized, thereby lowering curiosity expense and rising internet earnings
throughout that interval. We capitalized curiosity prices associated to growth
actions of $0.7 million and $0.3 million for the three months ended June 30,
2021 and 2020, respectively. We capitalized curiosity prices associated to
growth actions of $1.2 million and $0.5 million for the six months ended
June 30, 2021 and 2020, respectively.
Outcomes of Operations
For our dialogue of outcomes of operations, we've offered data on a
complete portfolio and same-store foundation.
Comparability of the three months ended June 30, 2021 to the three months ended
June 30, 2020
The next summarizes our consolidated outcomes of operations for the three
months ended June 30, 2021 in comparison with our consolidated outcomes of operations
for the three months ended June 30, 2020. As of June 30, 2021, our working
portfolio was comprised of 28 retail, workplace, multifamily and mixed-use
properties with an mixture of roughly 6.6 million rentable sq. ft
of retail and workplace house, together with the retail portion of our mixed-use
property, 2,112 residential items (together with 122 RV areas) and a 369-room
lodge. Moreover, as of June 30, 2021, we owned land at three of our
properties that we categorised as held for growth and/or development in
progress. As of June 30, 2020, our working portfolio was comprised of 28
retail, workplace, multifamily and mixed-use properties with an mixture of
roughly 6.6 million rentable sq. ft of retail and workplace house,
together with the retail portion of our mixed-use property, 2,112 residential items
(together with 122 RV areas) and a 369-room lodge. Moreover, as of June 30,
2020, we owned land at three of our properties that we categorised as held for
growth and/or development in progress.
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The next desk units forth chosen information from our unaudited consolidated
statements of complete earnings for the three months ended June 30, 2021 and
2020 ({dollars} in 1000's):

                                                           Three Months Ended June 30,
                                                             2021                  2020             Change              %
Revenues
Rental earnings                                          $       87,639          $  79,230          $ 8,409                11  %
Different property earnings                                           4,170              2,879            1,291                45
Complete property revenues                                        91,809             82,109            9,700                12
Bills
Rental bills                                                20,204             16,981            3,223                19
Actual property taxes                                              10,612              8,961            1,651                18
Complete property bills                                        30,816             25,942            4,874                19
Complete property earnings                                          60,993             56,167            4,826                 9
Normal and administrative                                     (6,924)            (6,679)            (245)                4
Depreciation and amortization                                 (27,646)           (26,493)          (1,153)                4
Curiosity expense                                              (14,862)           (13,331)          (1,531)               11

Different (expense) earnings, internet                                       (74)               162             (236)             (146)

Web earnings                                                     11,487              9,826            1,661                17
Web earnings attributable to restricted shares                     (135)               (69)             (66)               96
Web earnings attributable to unitholders within the
Working Partnership                                          (2,411)            (2,101)            (310)               15
Web earnings attributable to American Property Belief, Inc.
stockholders                                           $        8,941          $   7,656          $ 1,285                17  %


Income
Complete property revenues. Complete property income consists of rental income and
different property earnings. Complete property income elevated $9.7 million, or 12%, to
$91.8 million for the three months ended June 30, 2021 in comparison with $82.1 million
for the three months ended June 30, 2020. The proportion leased was as follows
for every section as of June 30, 2021 and 2020:
                      Share Leased(1)
                            June 30,
                          2021             2020
Workplace                        90.3  %     94.4  %
Retail                        91.1  %     94.7  %
Multifamily                   87.8  %     85.1  %
Blended-Use (2)                 89.2  %     95.7  %


(1)The proportion leased consists of the sq. footage underneath lease, together with
leases which can not have commenced as of June 30, 2021 or 2020, as relevant.
(2)Consists of the retail portion of the mixed-use property solely.

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The rise in complete property income was attributable primarily to the
improve in collections, improve in occupancy at Waikiki Seaside Stroll Embassy
Suites™ Lodge and components mentioned under.
Rental revenues. Rental income consists of minimal base lease, value reimbursements,
share rents and different rents. Rental income elevated $8.4 million, or 11%,
to $87.6 million for the three months ended June 30, 2021 in comparison with $79.2
million for the three months ended June 30, 2020. Rental income by section was
as follows ({dollars} in 1000's):
                                               Complete Portfolio                                                        Identical-Retailer Portfolio(1)
                         Three Months Ended June 30,                                                Three Months Ended June 30,
                           2021                 2020             Change             %                 2021                 2020             Change            %
Workplace               $       43,282          $ 42,748          $   534               1          $       43,496          $ 42,439          $ 1,057              2
Retail                       22,525            21,085            1,440               7                  22,526            21,084            1,442              7
Multifamily                  11,825            11,690              135               1                  11,825            11,690              135              1
Blended-Use                    10,007             3,707            6,300             170                       -                 -                -              -
                     $       87,639          $ 79,230          $ 8,409              11  %       $       77,847          $ 75,213          $ 2,634              4  %



(1)For this desk and tables following, the same-store portfolio excludes: (i)
One Seaside Avenue because of the renovation of the constructing; (ii) Waikiki Seaside Stroll
Retail and Embassy SuitesTM Lodge on account of vital spalling restore exercise;
and (iii) land held for growth.
Complete workplace rental income elevated $0.5 million for the three months ended
June 30, 2021 in comparison with the three months ended June 30, 2020 primarily on account of
larger annualized base rents at Torrey Level, The Landmark at One Market, Metropolis
Heart Bellevue, and Lloyd Portfolio. The rise in complete workplace rental
income is partially offset by the lower in rental income at One Seaside
Avenue on account of expiration of leases to permit for the modernization of the
property and the lower in rental income at First & Major because of the discount
of leased house associated to tenant extensions in 2020.
Complete retail rental income elevated $1.4 million for the three months ended
June 30, 2021 in comparison with the three months ended June 30, 2020 primarily on account of
roughly $2.4 million for tenants who had been modified to alternate lease or to
money foundation of income recognition throughout 2020 because the collectability was
decided to be not possible for sure tenants at Alamo Quarry Market,
Carmel Mountain Plaza, Del Monte Heart and The Retailers at Kalakaua.
Multifamily income elevated $0.1 million for the three months ended June 30,
2021 in comparison with the three months ended June 30, 2020 primarily on account of an
improve in common base lease per unit to $2,187 for the three months ended June
30, 2021 in comparison with $2,152 for the three months ended June 30, 2020. The
improve in common month-to-month base lease is primarily on account of will increase at Loma
Palisades. The rise in complete multifamily rental income is partially offset
by the lower in common occupancy to 87.8% for the three months ended June
30, 2021 in comparison with 88.5% for the three months ended June 30, 2020.
Complete mixed-use rental income elevated $6.3 million for the three months ended
June 30, 2021 in comparison with the three months ended June 30, 2020 primarily on account of
the lifting of COVID-19 journey restrictions late throughout the first quarter of
2021, which led to a rise in common occupancy and income per accessible
room to 67% and $184 for the three months ended June 30, 2021, respectively,
in comparison with 17% and $34 for 3 months ended June 30, 2020, respectively. We
count on to see a gentle improve in tourism and lodge occupancy in Oahu as soon as the
COVID-19 vaccine is out there extra globally and journey restrictions are lifted.
The rise in complete mixed-use rental income can also be attributed to
roughly $1.4 million for tenants who had been modified to alternate lease or to
money foundation of income recognition throughout 2020 because the collectability was
decided to be not possible for sure tenants on the retail portion of
our mixed-use property.

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Different property earnings. Different property earnings elevated $1.3 million, or 45%, to
$4.2 million for the three months ended June 30, 2021 in comparison with $2.9 million
for the three months ended June 30, 2020. Different property earnings by section was
as follows ({dollars} in 1000's):
                                               Complete Portfolio                                                          Identical-Retailer Portfolio
                         Three Months Ended June 30,                                                Three Months Ended June 30,
                           2021                 2020             Change             %                 2021                 2020             Change             %
Workplace               $        1,288          $  1,132          $   156              14          $        1,141          $  1,130          $    11               1
Retail                          456               407               49              12                     455               407               48              12
Multifamily                     914               773              141              18                     914               773              141              18
Blended-Use                     1,512               567              945             167                       -                 -                -               -
                     $        4,170          $  2,879          $ 1,291              45  %       $        2,510          $  2,310          $   200               9  %


Workplace different property earnings elevated $0.2 million for the three months ended
June 30, 2021 primarily on account of a rise in lease termination charges obtained at
Metropolis Heart Bellevue and One Seaside Avenue. This improve was offset by a
lower in parking storage earnings at Metropolis Heart Bellevue and Lloyd Portfolio.
Multifamily different property earnings elevated by $0.1 million for the three months
ended June 30, 2021 primarily on account of a rise in safety deposits earned at
Pacific Ridge Residences and Loma Palisades, and a rise in parking storage
earnings at Hassalo on Eighth - Residential.
Blended-use different property earnings elevated $0.9 million for the three months
ended June 30, 2021 primarily due a rise in room rental earnings and excise
tax on the lodge portion and improve in parking storage earnings on the retail
portion of our mixed-use property. These improve are on account of tourism and an
improve in lodge occupancy because the COVID-19 vaccine has change into extra broadly
accessible and journey restrictions to Hawaii have been relaxed.
Property Bills
Complete Property Bills. Complete property bills include rental bills and
actual property taxes. Complete property bills elevated $4.9 million, or 19%, to
$30.8 million, for the three months ended June 30, 2021 in comparison with $25.9
million for the three months ended June 30, 2020.
Rental Bills. Rental bills elevated $3.2 million, or 19%, to $20.2
million for the three months ended June 30, 2021 in comparison with $17.0 million for
the three months ended June 30, 2020. Rental expense by section was as follows
({dollars} in 1000's):
                                               Complete Portfolio                                                         Identical-Retailer Portfolio
                         Three Months Ended June 30,                                                Three Months Ended June 30,
                           2021                 2020             Change             %                 2021                 2020             Change            %
Workplace               $        6,815          $  6,654          $   161               2          $        6,624          $  6,427          $   197              3
Retail                        3,713             3,544              169               5                   3,713             3,545              168              5
Multifamily                   3,788             3,646              142               4                   3,788             3,646              142              4
Blended-Use                     5,888             3,137            2,751              88                       -                 -                -              -
                     $       20,204          $ 16,981          $ 3,223              19  %       $       14,125          $ 13,618          $   507              4  %


Blended-use rental expense elevated $2.8 million for the three months ended June
30, 2021 in comparison with the three months ended June 30, 2020 primarily on account of an
improve in lodge room bills, advertising and marketing bills, and basic excise tax
bills on the lodge portion of our mixed-use property throughout the interval. These
will increase are on account of tourism and a rise in lodge occupancy because the COVID-19
vaccine has change into extra broadly accessible and journey restrictions to Hawaii have
been relaxed.
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Actual Property Taxes. Actual property taxes elevated $1.7 million, or 18%, to $10.6
million for the three months ended June 30, 2021 in comparison with $9.0 million for
the three months ended June 30, 2020. Actual property tax expense by section was as
follows ({dollars} in 1000's):
                                             Complete Portfolio                                                       Identical-Retailer Portfolio
                      Three Months Ended June 30,                                              Three Months Ended June 30,
                         2021              2020             Change             %                 2021                 2020             Change             %
Workplace               $   4,833          $  4,947          $  (114)             (2)         $        4,776          $  4,771          $     5               -
Retail                   3,022             1,363            1,659             122                   3,022             1,363            1,659             122
Multifamily              1,705             1,667               38               2                   1,705             1,668               37               2
Blended-Use                1,052               984               68               7                       -                 -                -               -
                     $  10,612          $  8,961          $ 1,651              18  %       $        9,503          $  7,802          $ 1,701              22  %


Complete retail actual property taxes elevated $1.7 million for the three months ended
June 30, 2021 in comparison with the three months ended June 30, 2020 primarily on account of
an actual property tax refund obtained throughout the second quarter of 2020 for
roughly $2.3 million at Alamo Quarry Marketplace for the tax assessments for
2016 by 2018. This was offset by $0.8 million in 2020 actual property property
taxes and tax advisor charges.
Property Working Revenue
Property working earnings elevated $4.8 million, or 9%, to $61.0 million for
the three months ended June 30, 2021, in comparison with $56.2 million for the three
months ended June 30, 2020. Property working earnings by section was as follows
({dollars} in 1000's):
                                                Complete Portfolio                                                           Identical-Retailer Portfolio
                         Three Months Ended June 30,                                                  Three Months Ended June 30,
                           2021                 2020             Change              %                  2021                 2020             Change             %
Workplace               $       32,922          $ 32,279          $   643                 2          $       33,237          $ 32,371          $   866               3
Retail                       16,246            16,585             (339)               (2)                 16,246            16,583             (337)             (2)
Multifamily                   7,246             7,150               96                 1                   7,246             7,149               97               1
Blended-Use                     4,579               153            4,426             2,893                       -                 -                -               -
                     $       60,993          $ 56,167          $ 4,826                 9  %       $       56,729          $ 56,103          $   626               1  %


Complete workplace property working earnings elevated $0.6 million for the three
months ended June 30, 2021 in comparison with the three months ended June 30, 2020
primarily on account of larger annualized base rents at The Landmark at One Market,
Metropolis Heart Bellevue, Torrey Level and Torrey Reserve Campus throughout the interval.
Moreover, the rise in property working earnings was on account of a rise
in lease termination charges obtained at Metropolis Heart Bellevue and One Seaside Avenue,
partially offset by the lower in rental income at One Seaside Avenue on account of
the expiration of leases to permit for the modernization of the property and a
lower in parking storage earnings at Metropolis Heart Bellevue and Lloyd Portfolio.
Complete mixed-use property working earnings elevated $4.4 million for the three
months ended June 30, 2021 in comparison with the three months ended June 30, 2020
primarily because of the lifting of COVID-19 journey restrictions late throughout the
first quarter of 2021, which led to a rise in common occupancy and income
per accessible room to 67% and $184 for the three months ended June 30, 2021,
respectively, in comparison with 17% and $34 for 3 months ended June 30, 2020,
respectively. The rise in complete mixed-use rental income can also be attributed
to roughly $1.4 million for tenants who had been modified to alternate lease or
to money foundation of income recognition throughout 2020 because the collectability was
decided to be not possible for sure tenants on the retail portion of
our mixed-use property. These will increase in mixed-use property working earnings
had been partially offset by a rise in lodge room bills, advertising and marketing bills,
and basic excise tax bills on the lodge portion of our mixed-use property
throughout the interval. These will increase are on account of tourism and a rise in lodge
occupancy because the COVID-19 vaccine has change into extra broadly accessible and journey
restrictions to Hawaii have been relaxed.
Different
Normal and Administrative. Normal and administrative bills remained
constant at $6.9 million for the three months ended June 30, 2021, in comparison with
$6.7 million for the three months ended June 30, 2020. This improve was
primarily on account of a rise in employee-related prices.
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Depreciation and Amortization. Depreciation and amortization expense remained
constant at $27.6 million for the three months ended June 30, 2021, in contrast
to $26.5 million for the three months ended June 30, 2020. This improve was
primarily on account of larger depreciation and amortization at Embassy SuitesTM Lodge,
Carmel Mountain Plaza, The Landmark at One Market, Torrey Level and Metropolis Heart
Bellevue on account of constructing and tenant enhancements that had been put into service in
2020 and 2021 and a rise in depreciation at One Seaside Avenue attributed to
the renovation and modernization of the constructing, considerably offset by decrease
depreciation and amortization at First & Major on account of decreased capital
expenditures in 2020.
Curiosity Expense. Curiosity expense elevated $1.5 million, or 11%, to $14.9
million for the three months ended June 30, 2021, in comparison with $13.3 million for
the three months ended June 30, 2020. This improve was primarily because of the
closing of our 3.375% Senior Notes providing on January 26, 2021 partially offset
by a lower in curiosity expense associated to our reimbursement of the Collection A Notes
on January 26, 2021, lower in weighted common rate of interest for our Time period
Mortgage A, which turned an unhedged variable charge mortgage when the rate of interest swap
expired on January 9, 2021, lower within the Revolver Mortgage curiosity expense and
a rise in capitalized curiosity associated to our growth initiatives.
Different (Expense) Revenue, Web. Different (expense) earnings, internet decreased $0.2 million,
or 146%, to different expense, internet of $0.1 million for the three months ended June
30, 2021, in comparison with different earnings, internet of $0.2 million for the three months
ended June 30, 2020 primarily because of the lower in earnings tax profit for our
taxable REIT subsidiary.
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Comparability of the Six Months Ended June 30, 2021 to the Six Months Ended June
30, 2020
The next summarizes our consolidated outcomes of operations for the six
months ended June 30, 2021 in comparison with our consolidated outcomes of operations
for the six months ended June 30, 2020.
The next desk units forth chosen information from our unaudited consolidated
statements of earnings for the six months ended June 30, 2021 and 2020 ({dollars} in
1000's):
                                                                Six Months Ended June 30,
                                                                 2021                  2020             Change              %
Revenues
Rental earnings                                              $      168,769          $ 171,300          $ (2,531)              (1) %
Different property earnings                                               7,026              7,552              (526)              (7)
Complete property revenues                                           175,795            178,852            (3,057)              (2)
Bills
Rental bills                                                    38,450             39,549            (1,099)              (3)
Actual property taxes                                                  21,966             20,006             1,960               10
Complete property bills                                            60,416             59,555               861                1
Complete property earnings                                             115,379            119,297            (3,918)              (3)
Normal and administrative                                        (13,747)           (13,499)             (248)               2
Depreciation and amortization                                     (55,147)           (53,955)           (1,192)               2
Curiosity expense                                                  (28,867)           (26,803)           (2,064)               8
Early extinguishment of debt                                       (4,271)                 -            (4,271)             100
Different (expense) earnings, internet                                          (127)               270              (397)            (147)

Web earnings                                                         13,220             25,310           (12,090)             (48)
Web earnings attributable to restricted shares                         (272)              (173)              (99)              57

Web earnings attributable to unitholders within the Working
Partnership

                                                        (2,750)            (5,413)            2,663              (49)
Web earnings attributable to American Property Belief, Inc.
stockholders                                               $       10,198          $  19,724          $ (9,526)             (48) %


Income
 Complete property revenues. Complete property income consists of rental income and
different property earnings. Complete property income decreased $3.1 million, or 2%, to
$175.8 million for the six months ended June 30, 2021 in comparison with $178.9 million
for the six months ended June 30, 2020. The proportion leased was as follows for
                   every section as of June 30, 2021 and 2020:
                                           Share Leased(1)
                                                 June 30,
                                             2021               2020
                     Workplace                        90.3  %     94.4  %
                     Retail                        91.1  %     94.7  %
                     Multifamily                   87.8  %     85.1  %
                     Blended-Use (2)                 89.2  %     95.7  %



(1)The proportion leased consists of the sq. footage underneath lease, together with
leases which can not have commenced as of June 30, 2021 or June 30, 2020, as
relevant.
(2)Consists of the retail portion of the mixed-use property solely.

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The lower in complete property income was attributable primarily to the components
mentioned under.
Rental revenues. Rental income consists of minimal base lease, value reimbursements,
share rents and different rents. Rental income decreased $2.5 million, or
(1)%, to $168.8 million for the six months ended June 30, 2021 in comparison with
$171.3 million for the six months ended June 30, 2020. Rental income by section
was as follows ({dollars} in 1000's):
                                                 Complete Portfolio                                                          Identical-Retailer Portfolio(1)
                          Six Months Ended June 30,                                                     Six Months Ended June 30,
                           2021                  2020             Change              %                  2021                  2020             Change             %
Workplace               $       86,918          $  85,261          $  1,657                2          $       86,914          $  84,531          $ 2,383               3
Retail                       44,009             46,376            (2,367)              (5)                 44,009             46,375           (2,366)             (5)
Multifamily                  23,640             23,704               (64)               -                  23,640             23,704              (64)              -
Blended-Use                    14,202             15,959            (1,757)             (11)                      -                  -                -               -
                     $      168,769          $ 171,300          $ (2,531)              (1) %       $      154,563          $ 154,610          $   (47)              -  %



(1)The identical-store portfolio excludes: (i) One Seaside Avenue because of the renovation
of the constructing; (ii) Waikiki Seaside Stroll Retail and Embassy SuitesTM Lodge due
to vital spalling restore exercise; and (iii) land held for growth.
Complete workplace rental income elevated $1.7 million for the six months ended June
30, 2021 in comparison with the six months ended June 30, 2020 on account of larger annualized
rents at La Jolla Commons and Metropolis Heart Bellevue and Torrey Reserve partially
offset by the lower in rental income of roughly $0.7 million at One
Seaside Avenue because of the expiration of leases to permit for the modernization of
the property and reduce at First & Major on account of vacated tenant house.
Identical-store workplace rental income elevated $2.4 million for the six months ended
June 30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of
larger annualized base rents at La Jolla Commons, Lloyd Portfolio, Torrey
Reserve and Metropolis Heart Bellevue.
Complete retail rental income decreased $2.4 million for the six months ended June
30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of a
lower of $3.2 million in internet fundamental month-to-month lease, offset by a rise in
share lease of $1.2 million as sure tenants switched to alternate lease as
the collectability was decided to be not possible for sure tenants
at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Heart, and Waikele
Heart because the non permanent retailer closures or restrictions on enterprise operations
from orders issued by state and native governments associated to the COVID-19
pandemic precipitated the monetary situation of sure tenants to deteriorate.
Blended-use rental income decreased $1.8 million for the six months ended June
30, 2021 in comparison with the six months ended June 30, 2020 primarily due a lower
in complete mixed-use rental income of $1.3 million and a lower in expense
recoveries of $0.5 million as sure tenants had been modified to alternate lease
agreements. This lower within the mixed-use retail portion was offset by a slight
improve in lodge income as common occupancy and income per accessible room
elevated to 57% and $142 for the six months ended June 30, 2021, respectively,
in comparison with 46% and $138 for six months ended June 30, 2020, respectively. We
count on to see a gentle improve in tourism and lodge occupancy in Oahu as soon as the
COVID-19 vaccine is out there extra globally and journey restrictions are lifted.
Different property earnings. Different property earnings decreased $0.5 million, or 7%, to
$7.0 million for the six months ended June 30, 2021 in comparison with $7.6 million for
the six months ended June 30, 2020. Different property earnings by section was as
follows ({dollars} in 1000's):
                                               Complete Portfolio                                                          Identical-Retailer Portfolio
                         Six Months Ended June 30,                                                  Six Months Ended June 30,
                           2021                2020             Change              %                 2021                2020             Change              %
Workplace               $       2,116          $  3,128          $ (1,012)            (32)         $       1,944          $  3,115          $ (1,171)            (38)
Retail                         746               942              (196)            (21)                   746               942              (196)            (21)
Multifamily                  1,651             1,584                67               4                  1,651             1,584                67               4
Blended-Use                    2,513             1,898               615              32                      -                 -                 -               -
                     $       7,026          $  7,552          $   (526)             (7) %       $       4,341          $  5,641          $ (1,300)            (23) %


Complete workplace different property earnings decreased $1.0 million for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020 primarily due
to the lower in parking storage earnings at Lloyd Portfolio, Metropolis Heart
Bellevue and First & Major throughout the interval because the "stay-at dwelling" order issued
by state and native governments associated to the COVID-19 pandemic precipitated a
substantial portion of our tenants workers and their friends to proceed to
partially work at home throughout the interval.
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Complete retail different property earnings decreased $0.2 million for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020 primarily due
to the lease termination charges obtained at Alamo Quarry Market throughout 2020.
Complete mixed-use different property earnings elevated $0.6 million for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020 primarily due
to a rise in rental different earnings on the lodge portion of our mixed-use
property and a rise in parking earnings on the retail portion of our
mixed-use property. These will increase had been partially offset by a lower in
excise tax. We count on to see a gentle improve in tourism and lodge occupancy in
Oahu as soon as the COVID-19 vaccine is out there extra globally and journey
restrictions are lifted.
Property Bills
Complete Property Bills. Complete property bills include rental bills and
actual property taxes. Complete property bills elevated by $0.9 million, or 1%, to
$60.4 million for the six months ended June 30, 2021, in comparison with $59.6 million
for the six months ended June 30, 2020. This improve in complete property bills
was attributable primarily to the components mentioned under.
Rental Bills. Rental bills decreased $1.1 million, or 3%, to $38.5 million
for the six months ended June 30, 2021, in comparison with $39.5 million for the six
months ended June 30, 2020. Rental expense by section was as follows ({dollars} in
1000's):
                                               Complete Portfolio                                                        Identical-Retailer Portfolio
                         Six Months Ended June 30,                                                  Six Months Ended June 30,
                           2021                2020             Change              %                 2021                2020            Change            %
Workplace               $      13,497          $ 13,816          $   (319)             (2)         $      13,097          $ 13,369          $ (272)            (2)
Retail                       7,240             7,113               127               2                  7,240             7,113             127              2
Multifamily                  7,574             7,489                85               1                  7,574             7,489              85              1
Blended-Use                   10,139            11,131              (992)             (9)                     -                 -               -              -
                     $      38,450          $ 39,549          $ (1,099)             (3) %       $      27,911          $ 27,971          $  (60)             -  %


Complete workplace rental bills decreased $0.3 million for the six months ended
June 30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of
business lease tax at The Landmark at One Market, services companies and
provides, and repairs and upkeep bills because the "stay-at dwelling" order
issued by state and native governments associated to the COVID-19 pandemic throughout
the second quarter of 2020 precipitated a considerable portion of our tenants'
workers to proceed to work at home throughout the interval. The lower in
same-store workplace rental bills was partially offset by the rise in
sublease expense associated to the Annex Lease extension choice exercised in March
2020, and a rise in insurance coverage expense throughout the interval.
Complete retail rental bills elevated $0.1 million for the six months ended
June 30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of an
improve in insurance coverage expense, utilities, day porter companies and trash companies
as restrictions on enterprise operations from orders issued by state and native
governments associated to the COVID-19 pandemic had been eased throughout this era. The
improve in retail rental expense was partially offset by a lower in
advertising and marketing and restore bills throughout the interval.
Complete mixed-use rental bills decreased $1.0 million for the six months ended
June 30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of
lower in lodge room and lease bills on the lodge portion of our mixed-use
property throughout the interval. The lower in rental bills on the lodge portion
of our combined use property is primarily because of the lower in tourism and lodge
occupancy in Oahu because of the COVID-19 pandemic. Moreover, the lower in
mixed-use rental bills can also be because of the lower of basic excise tax
bills and administration charges, partially offset by a rise in personnel
compensation on the retail portion of our mixed-use property throughout the interval.
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Actual Property Taxes. Actual property tax expense elevated $2.0 million, or 10%, to
$22.0 million for the six months ended June 30, 2021 in comparison with $20.0 million
for the six months ended June 30, 2020. Actual property tax expense by section was
as follows ({dollars} in 1000's):
                                               Complete Portfolio                                                        Identical-Retailer Portfolio
                         Six Months Ended June 30,                                                 Six Months Ended June 30,
                           2021                2020             Change             %                 2021                2020             Change             %
Workplace               $       9,515          $  9,578          $   (63)             (1)         $       9,400          $  9,227          $   173               2
Retail                       6,937             5,125            1,812              35                  6,937             5,125            1,812              35
Multifamily                  3,410             3,334               76               2                  3,410             3,335               75               2
Blended-Use                    2,104             1,969              135               7                      -                 -                -               -
                     $      21,966          $ 20,006          $ 1,960              10  %       $      19,747          $ 17,687          $ 2,060              12  %


Identical-store workplace actual property taxes elevated $0.2 million for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020 primarily due
to a rise in tax assessments at Metropolis Heart Bellevue and First & Major
throughout the interval.
Retail actual property taxes elevated $1.8 million for the six months ended June
30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of a internet
actual property tax refund of roughly $2.3 million obtained throughout the second
quarter of 2020 at Alamo Quarry Marketplace for the tax assessments for 2016 by
2018.
Blended-use actual property taxes elevated $0.1 million for the six months ended June
30, 2021 in comparison with the six months ended June 30, 2020 primarily on account of an
improve in tax assessments for the lodge and retail portion of our mixed-use
property.
Property Working Revenue
Property working earnings decreased $3.9 million, or 3%, to $115.4 million for
the six months ended June 30, 2021, in comparison with $119.3 million for the six
months ended June 30, 2020. Property working earnings by section was as follows
({dollars} in 1000's):
                                                Complete Portfolio                                                            Identical-Retailer Portfolio
                          Six Months Ended June 30,                                                    Six Months Ended June 30,
                           2021                  2020             Change              %                 2021                  2020             Change              %
Workplace               $       66,022          $  64,995          $  1,027               2          $       66,361          $  65,050          $  1,311               2
Retail                       30,578             35,080            (4,502)            (13)                 30,578             35,079            (4,501)            (13)
Multifamily                  14,307             14,465              (158)             (1)                 14,307             14,464              (157)             (1)
Blended-Use                     4,472              4,757              (285)             (6)                      -                  -                 -               -
                     $      115,379          $ 119,297          $ (3,918)             (3) %       $      111,246          $ 114,593          $ (3,347)             (3) %


Complete workplace property working earnings elevated $1.0 million throughout the six
months ended June 30, 2021 in comparison with the six months ended June 30, 2020
primarily on account of larger annualized rents at La Jolla Commons and Metropolis Heart
Bellevue and Torrey Reserve partially offset by the lower in rental income
of roughly $0.7 million at One Seaside Avenue because of the expiration of
leases to permit for the modernization of the property and reduce at First &
Major on account of vacated tenant house.
Complete retail property working earnings decreased $4.5 million throughout the six
months ended June 30, 2021 in comparison with the six months ended June 30, 2020
primarily on account of a lower of $3.2 million in internet fundamental month-to-month lease, offset by
a rise in share lease of $1.2 million as sure tenants switched to
alternate lease because the collectability was decided to be not possible for
sure tenants at Alamo Quarry Market, Carmel Mountain Plaza, Del Monte Heart,
and Waikele Heart because the non permanent retailer closures or restrictions on enterprise
operations from orders issued by state and native governments associated to the
COVID-19 pandemic precipitated the monetary situation of sure tenants to
deteriorate. Moreover, the lower in complete retail property working
earnings was additionally because of the actual property tax refund at Alamo Quarry Market
obtained throughout the second quarter of 2020.
Multifamily property working earnings decreased $0.2 million for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020 primarily due
to a lower within the common occupancy to 88.6% for the six months ended June
30, 2021 in comparison with 90.5% for the six months ended June 30, 2020, larger lease
concessions at Hassalo on Eighth - Residential and will increase in utilities,
insurance coverage expense and actual property taxes throughout the interval. The lower in
multifamily property working earnings was partially offset by a rise in
common base lease per unit to $2,181 for the six months ended June 30, 2021
in comparison with $2,115 for the six months ended June 30, 2020, a rise in
safety deposits earned at Pacific Ridge Residences and Loma Palisades and
decreases in personnel prices and repairs and upkeep bills throughout the
interval.
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Complete mixed-use property working earnings decreased $0.3 million for the six
months ended June 30, 2021 in comparison with the six months ended June 30, 2020
primarily due a lower in complete mixed-use rental income of $1.3 million and a
lower in expense recoveries of $0.5 million as sure tenants had been modified
to alternate lease agreements. This lower within the mixed-use retail portion was
offset by a slight improve in lodge income as common occupancy and income
per accessible room elevated to 57% and $142 for the six months ended June 30,
2021, respectively, in comparison with 46% and $138 for six months ended June 30, 2020,
respectively. We count on to see a gentle improve in tourism and lodge occupancy
in Oahu as soon as the COVID-19 vaccine is out there extra globally and journey
restrictions are lifted. Moreover, there was additionally a lower in rental
bills for the lodge and retail portion of our mixed-use property, on account of a
lower in lodge room and lease bills on the lodge portion of our mixed-use
property and a lower of basic excise tax bills and administration charges,
partially offset by a rise in personnel compensation on the retail portion
of our mixed-use property throughout the interval.
Different
Normal and Administrative. Normal and administrative bills elevated $0.2
million, or 2%, to $13.7 million for the six months ended June 30, 2021,
in comparison with $13.5 million for the six months ended June 30, 2020. This improve
was primarily on account of worker associated prices.
Depreciation and Amortization. Depreciation and amortization expense elevated
$1.2 million, or 2%, to $55.1 million for the six months ended June 30, 2021,
in comparison with $54.0 million for the six months ended June 30, 2020. This improve
was primarily on account of larger depreciation and amortization at Embassy SuitesTM
Lodge, Carmel Mountain Plaza, and The Landmark at One Market on account of constructing and
tenant enhancements that had been put into service in 2020 and 2021 and a rise
in depreciation at One Seaside Avenue attributed to the renovation and
modernization of the constructing, considerably offset by decrease depreciation and
amortization at First & Major on account of decreased capital expenditures in 2020.
Curiosity Expense. Curiosity expense elevated $2.1 million, or 8%, to $28.9
million for the six months ended June 30, 2021 in comparison with $26.8 million for the
six months ended June 30, 2020. This improve was primarily because of the closing
of our 3.375% Senior Notes providing on January 26, 2021, partially offset by a
lower in curiosity expense associated to our reimbursement of the Collection A Notes on
January 26, 2021 lower in weighted common rate of interest for our Time period Mortgage A,
which turned an unhedged variable charge mortgage when the rate of interest swap expired
on January 9, 2021, and a rise in capitalized curiosity associated to our
growth initiatives.
Early Extinguishment of Debt. Early extinguishment of debt expense elevated
$4.3 million for the six months ended June 30, 2021 because of the reimbursement of the
Senior Assured Notes, Collection A, with make-whole funds thereon, on January
26, 2021.
Different (Expense) Revenue, Web. Different (expense) earnings, internet decreased $0.4 million,
or 147%, to different expense, internet of $0.1 million for the six months ended June 30,
2021, in comparison with different earnings, internet of $0.3 million for the six months ended
June 30, 2020 primarily because of the lower in curiosity and funding earnings
attributed to the decrease yield on our common money stability throughout the interval and
a lower in earnings tax profit associated for our taxable REIT subsidiary.
Liquidity and Capital Assets of American Property Belief, Inc.

On this “Liquidity and Capital Assets of American Property Belief, Inc.
part, the time period the “firm” refers solely to American Property Belief, Inc. on an
unconsolidated foundation, and excludes the Working Partnership and all different
subsidiaries.

The corporate's enterprise is operated primarily by the Working Partnership,
of which the corporate is the guardian firm and sole basic accomplice, and which
it consolidates for monetary reporting functions. As a result of the corporate operates
on a consolidated foundation with the Working Partnership, the part entitled
"Liquidity and Capital Assets of American Property Belief, L.P." ought to be learn
along side this part to know the liquidity and capital
sources of the corporate on a consolidated foundation and the way the corporate is operated
as an entire.

The corporate points public fairness on occasion, however doesn't in any other case
generate any capital itself or conduct any enterprise itself, apart from incurring
sure bills in working as a public firm that are absolutely reimbursed by
the Working Partnership. The corporate itself doesn't have any indebtedness,
and its solely materials asset is its possession of partnership pursuits of the
Working Partnership. Subsequently, the consolidated belongings and liabilities and
the consolidated revenues and bills of the corporate and the Working
Partnership are the identical on their respective monetary statements. Nonetheless, all
debt is held immediately or not directly by the Working Partnership. The corporate's
principal funding requirement is the cost of dividends on its widespread inventory.
The corporate's principal supply of funding for its dividend funds is
distributions it receives from the Working Partnership.

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As of June 30, 2021, the corporate owned an approximate 78.8% partnership curiosity
within the Working Partnership. The remaining roughly 21.2% are owned by
non-affiliated traders and sure of the corporate's administrators and govt
officers. As the only real basic accomplice of the Working Partnership, American
Property Belief, Inc. has the complete, unique and full authority and management
over the Working Partnership's day-to-day administration and enterprise, could cause
it to enter into sure main transactions, together with acquisitions,
tendencies and refinancings, and might trigger adjustments in its line of enterprise,
capital construction and distribution insurance policies. The corporate causes the Working
Partnership to distribute such portion of its accessible money as the corporate might
in its discretion decide, within the method offered within the Working
Partnership's partnership settlement.

The liquidity of the corporate depends on the Working Partnership's means
to make ample distributions to the corporate. The first money requirement of
the corporate is its cost of dividends to its stockholders. The corporate additionally
ensures a number of the Working Partnership's debt, as mentioned additional in
Word 7 of the Notes to Consolidated Monetary Statements included elsewhere
herein. If the Working Partnership fails to meet sure of its debt
necessities, which set off the corporate's assure obligations, then the
firm will likely be required to meet its money cost commitments underneath such
ensures. Nonetheless, the corporate's solely vital asset is its funding in
the Working Partnership.

We consider the Working Partnership's sources of working capital, particularly
its money stream from operations, and borrowings accessible underneath its unsecured line
of credit score, are enough for it to make its distribution funds to the corporate
and, in flip, for the corporate to make its dividend funds to its stockholders.
As of June 30, 2021, the corporate has decided that it has enough working
capital to satisfy its dividend funding obligations for the following 12 months.
Nonetheless, we can't guarantee you that the Working Partnership's sources of
capital will proceed to be accessible in any respect or in quantities ample to satisfy
its wants, together with its means to make distribution funds to the corporate.
The unavailability of capital may adversely have an effect on the Working Partnership's
means to pay its distributions to the corporate, which might in flip, adversely
have an effect on the corporate's means to pay money dividends to its stockholders. The
COVID-19 pandemic is predicted to briefly impression a few of our tenants' means
or willingness to remit lease funds because of the tenants' operations being
affected by state and native stay-at-home orders. Within the first half of 2021, we
continued to obtain lease deferment and different lease concession requests from some
tenants and have been negotiating and executing lease modifications for the
deferment of lease and different lease concessions. These lease deferments and different
lease concessions will proceed to adversely have an effect on the Working Partnership's
money stream from operations till the scheduled reimbursement interval.

Our short-term liquidity necessities consist primarily of funds to pay for
future dividends anticipated to be paid to the corporate's stockholders, working
bills and different expenditures immediately related to our properties,
curiosity expense and scheduled principal funds on excellent indebtedness,
basic and administrative bills, funding development initiatives, capital
expenditures, tenant enhancements and leasing commissions.

The corporate might on occasion search to repurchase or redeem the Working
Partnership's excellent debt, the corporate's shares of widespread inventory or different
securities in open market purchases, privately negotiated transactions or
in any other case. Such repurchases or redemptions, if any, will rely on prevailing
market situations, our liquidity necessities, contractual restrictions and
different components. The quantities concerned could also be materials.

For the corporate to take care of its qualification as a REIT, it should pay dividends
to its stockholders aggregating yearly no less than 90% of its REIT taxable
earnings, excluding internet capital beneficial properties. Whereas traditionally the corporate has
happy this distribution requirement by making money distributions to American
Property Belief, Inc.'s stockholders or American Property Belief, L.P.'s unitholders,
it might select to fulfill this requirement by making distributions of money or
different property, together with, in restricted circumstances, the corporate's personal inventory. As
a results of this distribution requirement, the Working Partnership can't rely
on retained earnings to fund its ongoing operations to the identical extent that
different corporations whose guardian corporations are usually not REITs can. The corporate may have
to proceed to lift capital within the fairness markets to fund the working
partnership's working capital wants, acquisitions and developments. Though
there is no such thing as a intent at the moment, if market situations deteriorate, the corporate
can also delay the timing of future growth and redevelopment initiatives as
properly as restrict future acquisitions, cut back the Working Partnership's working
expenditures, or re-evaluate its dividend coverage.

The corporate is a well known seasoned issuer. As circumstances warrant, the
firm might difficulty fairness on occasion on an opportunistic foundation, dependent
upon market situations and accessible pricing. When the corporate receives proceeds
from most well-liked or widespread fairness issuances, it's required by the Working
Partnership's partnership settlement to contribute the proceeds from its fairness
issuances to the Working Partnership in change for partnership items of the
Working Partnership. The Working Partnership might use the proceeds to repay
debt, to develop new or present properties, to accumulate properties or for
basic company functions.

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In January 2021, the corporate filed a common shelf registration assertion on
Type S-3ASR with the SEC, which turned efficient upon submitting and which changed
the prior Type S-3ASR that was filed with the SEC in February 2018. The
common shelf registration assertion permits the corporate on occasion to
provide and promote fairness securities of the corporate.  Nonetheless, there might be no
assurance that the corporate will be capable of full any such choices of
securities.  Components influencing the supply of extra financing
embrace investor notion of our prospects and the overall situation of the
monetary markets, amongst others.
In Might 2015, we entered into an ATM fairness program with 5 gross sales brokers in
which we might, on occasion, provide and promote shares of our widespread inventory
having an mixture providing value of as much as $250.0 million. On March 2, 2018, we
amended sure of those fairness applications, terminated one such program and
entered into a brand new fairness program with one new gross sales agent. The gross sales of shares
of the corporate's widespread inventory made by the ATM fairness program, as amended,
are made in "at-the-market" choices as outlined in Rule 415 of the Securities
Act. As of June 30, 2021, we had the capability to difficulty as much as an extra
$132.6 million in shares of widespread inventory underneath the ATM fairness program upon
submitting an up to date prospectus complement with the SEC. We intend to make use of the web
proceeds to fund growth or redevelopment actions, repay quantities
excellent on occasion underneath our amended and restated credit score facility or
different debt financing obligations, fund potential acquisition alternatives
and/or for basic company functions. Precise future gross sales will rely on a
number of components together with, however not restricted to, market situations, the buying and selling
value of the corporate's widespread inventory and the corporate's capital wants. We've no
obligation to promote the remaining shares accessible on the market underneath the ATM fairness
program.
Liquidity and Capital Assets of American Property Belief, L.P.

On this "Liquidity and Capital Assets of American Property Belief, L.P."
part, the phrases "we," "our" and "us" discuss with the Working Partnership
along with its consolidated subsidiaries, or the Working Partnership and
American Property Belief, Inc. along with their consolidated subsidiaries, as
the context requires. American Property Belief, Inc. is our sole basic accomplice
and consolidates our outcomes of operations for monetary reporting functions.
As a result of we function on a consolidated foundation with American Property Belief, Inc., the
part entitled "Liquidity and Capital Assets of American Property Belief,
Inc." ought to be learn along side this part to know our
liquidity and capital sources on a consolidated foundation.
As a result of nature of our enterprise, we sometimes generate vital quantities of
money from operations. The money generated from operations is used for the cost
of working bills, capital expenditures, debt service and dividends to
American Property Belief, Inc.'s stockholders and our unitholders. As a REIT,
American Property Belief, Inc. should typically make annual distributions to its
stockholders of no less than 90% of its internet taxable earnings. As of June 30, 2021, we
held $368.3 million in money and money equivalents.
Our short-term liquidity necessities consist primarily of working bills
and different expenditures related to our properties, common debt service
necessities, dividend funds to American Property Belief, Inc.'s stockholders
required to take care of its REIT standing, distributions to our unitholders, capital
expenditures and, doubtlessly, acquisitions. We count on to satisfy our short-term
liquidity necessities by internet money offered by operations, reserves
established from present money and, if needed, borrowings accessible underneath our
credit score facility.
Our long-term liquidity wants consist primarily of funds essential to pay for
the reimbursement of debt at maturity, property acquisitions, tenant enhancements
and capital enhancements. We count on to satisfy our long-term liquidity necessities
to pay scheduled debt maturities and to fund property acquisitions and capital
enhancements with internet money from operations, long-term secured and unsecured
indebtedness and, if needed, the issuance of fairness and debt securities. We
additionally might fund property acquisitions and capital enhancements utilizing our amended
and restated credit score facility pending everlasting financing. We consider that we
have entry to a number of sources of capital to fund our long-term liquidity
necessities, together with the incurrence of extra debt and the issuance of
extra fairness. Nonetheless, we can't be assured that this would be the case. Our
means to incur extra debt will likely be depending on various components,
together with our diploma of leverage, the worth of our unencumbered belongings and
borrowing restrictions which may be imposed by lenders. Our means to entry the
fairness capital markets will likely be depending on various components as properly,
together with basic market situations for REITs and market perceptions about our
firm.
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Our total capital necessities for the rest of 2021 and first quarter
2022 will rely upon acquisition alternatives and the extent of enhancements
and redevelopments on present properties. Our capital investments will likely be
funded on a short-term foundation with, amongst different sources of capital, money available,
money stream from operations and/or our revolving line of credit score. On a long-term
foundation, our capital investments could also be funded with extra long-term debt,
together with, with out limitation, mortgage debt and unsecured notes. Our means to
incur extra debt will likely be depending on various components, together with,
with out limitation, our diploma of leverage, the worth of our unencumbered belongings
and borrowing restrictions which may be imposed by lenders. Our capital
investments can also be funded by issuing extra fairness together with, with out
limitation, shares issued by American Property Belief, Inc. underneath its ATM fairness
program or by an underwritten public providing. Though there is no such thing as a intent
at the moment, if market situations deteriorate or fail to enhance, together with as
a results of the COVID-19 pandemic, we can also delay the timing of future
growth and redevelopment initiatives in addition to restrict future acquisitions,
cut back our working expenditures, or re-evaluate our dividend coverage. The
COVID-19 pandemic is predicted to impression the timing of future growth and
redevelopment initiatives on account of, amongst different issues, capital necessities and
allowing delays brought on by native authorities shutdowns or diminished operations.
In January 2021, the Working Partnership filed a common shelf registration
on Type S-3 ASR with the SEC which offered for the registration of an
unspecified quantity of debt securities by the Working Partnership. Nonetheless,
there might be no assurance that the Working Partnership will be capable of
full any such choices of debt securities. Components influencing the
availability of extra financing embrace investor notion of our
prospects and the overall situation of the monetary markets, amongst others.

Off-Stability Sheet Preparations
We at the moment shouldn't have any off-balance sheet preparations.
Money Flows
Comparability of the six months ended June 30, 2021 to the six months ended June
30, 2020
Money, money equivalents, and restricted money had been $370.0 million and $150.1
million at June 30, 2021 and 2020, respectively.
Web money offered by working actions elevated $7.6 million to $76.7
million for the six months ended June 30, 2021 in comparison with $69.1 million for the
six months ended June 30, 2020. The rise in money from operations was
primarily on account of a rise in rental income from our mixed-use property and
a rise in lease collections from our retail portfolio.
Web money utilized in investing actions decreased $2.0 million to $37.1 million
for the six months ended June 30, 2021 in comparison with $39.1 million for the six
months ended June 30, 2020. The lower was primarily on account of a lower in
leasing commissions for brand spanking new tenants at First & Major, Metropolis Heart Bellevue,
Torrey Level and Lloyd Portfolio. In the course of the three months ended June 30, 2021,
we had taken a brief time period funding place in a marketable safety, which
was bought and bought throughout the identical quarter.
Web money offered by financing actions elevated $180.7 million to $191.3
million for the six months ended June 30, 2021 in comparison with money utilized in
financing actions of $10.6 million for the six months ended June 30, 2020.
The rise in money offered by financing actions was primarily because of the
closing of our issuance of three.375% Senior Notes on January 26, 2021, partially
offset by the reimbursement of each the excellent stability on the revolving line of
credit score and the Senior Assured Notes, Collection A on January 26, 2021.
Web Working Revenue
Web Working Revenue, or NOI, is a non-GAAP monetary measure of efficiency. We
outline NOI as working revenues (rental earnings, tenant reimbursements, lease
termination charges, floor lease rental earnings and different property earnings) much less
property and associated bills (property bills, floor lease expense, property
advertising and marketing prices, actual property taxes and insurance coverage). NOI excludes basic and
administrative bills, curiosity expense, depreciation and amortization,
acquisition-related expense, different non-property earnings and losses, beneficial properties and
losses from property tendencies, extraordinary objects, tenant enhancements, and
leasing commissions. Different REITs might use completely different methodologies for calculating
NOI, and accordingly, our NOI is probably not corresponding to the NOIs of different REITs.
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NOI is utilized by traders and our administration to guage and examine the
efficiency of our properties and to find out developments in earnings and to compute
the truthful worth of our properties as it isn't affected by (1) the price of funds
of the property proprietor, (2) the impression of depreciation and amortization bills
in addition to beneficial properties or losses from the sale of working actual property belongings that
are included in internet earnings computed in accordance with GAAP or (3) basic and
administrative bills and different beneficial properties and losses which might be particular to the
property proprietor. The price of funds is eradicated from internet earnings as a result of it's
particular to the actual financing capabilities and constraints of the proprietor.
The price of funds can also be eradicated as a result of it's depending on historic
rates of interest and different prices of capital in addition to previous selections made by us
relating to the suitable mixture of capital, which can have modified or might change
sooner or later. Depreciation and amortization bills in addition to beneficial properties or losses
from the sale of working actual property belongings are eradicated as a result of they might
not precisely symbolize the precise change in worth in our retail, workplace,
multifamily or mixed-use properties that end result from use of the properties or
adjustments in market situations. Whereas sure elements of actual property do decline
in worth over time in a way that's meant to be captured by depreciation
and amortization, the worth of the properties as an entire have traditionally
elevated or decreased on account of adjustments in total financial situations
as an alternative of from precise use of the property or the passage of time. Good points and
losses from the sale of actual property range from property to property and are
affected by market situations on the time of sale, which is able to normally change
from interval to interval. These beneficial properties and losses can create distortions when
evaluating one interval to a different or when evaluating our working outcomes to the
working outcomes of different actual property corporations that haven't made equally
timed purchases or gross sales. We consider that eliminating these prices from internet
earnings is beneficial as a result of the ensuing measure captures the precise income
generated and precise bills incurred in working our properties in addition to
developments in occupancy charges, rental charges and working prices.
Nonetheless, the usefulness of NOI is restricted as a result of it excludes basic and
administrative prices, curiosity expense, curiosity earnings and different expense,
depreciation and amortization expense and beneficial properties or losses from the sale of
properties, and different beneficial properties and losses as stipulated by GAAP, the extent of
capital expenditures and leasing prices needed to take care of the working
efficiency of our properties, all of that are vital financial prices. NOI
might fail to seize vital developments in these parts of internet earnings, which
additional limits its usefulness.
NOI is a measure of the working efficiency of our properties however doesn't
measure our efficiency as an entire. NOI is due to this fact not an alternative choice to internet
earnings as computed in accordance with GAAP. This measure ought to be analyzed in
conjunction with internet earnings computed in accordance with GAAP and discussions
elsewhere in "Administration's Dialogue and Evaluation of Monetary Situation and
Outcomes of Operations" relating to the parts of internet earnings which might be
eradicated within the calculation of NOI. Different corporations might use completely different strategies
for calculating NOI or equally entitled measures and, accordingly, our NOI might
not be corresponding to equally entitled measures reported by different corporations
that don't outline the measure precisely as we do.
The next is a reconciliation of our NOI to internet earnings for the three and 6
months ended June 30, 2021 and 2020 computed in accordance with GAAP (in
1000's):

                                                         Three Months Ended June 30,                 Six Months Ended June 30,
                                                           2021                  2020                 2021                  2020
Web working earnings                                 $       60,993        

$ 56,167 $ 115,379 $ 119,297
Normal and administrative

                                   (6,924)            (6,679)                (13,747)           (13,499)
Depreciation and amortization                               (27,646)           (26,493)                (55,147)           (53,955)
Curiosity expense                                            (14,862)           (13,331)                (28,867)           (26,803)
Early extinguishment of debt                                      -                  -                  (4,271)                 -

Different (expense) earnings, internet                                     (74)               162                    (127)               270

Web earnings                                           $       11,487          $   9,826          $       13,220          $  25,310



Funds from Operations
We calculate funds from operations, or FFO, in accordance with the requirements
established by the Nationwide Affiliation of Actual Property Funding Trusts, or
NAREIT. FFO represents internet earnings (computed in accordance with GAAP), excluding
beneficial properties (or losses) from gross sales of depreciable working property, impairment
losses, real-estate associated depreciation and amortization (excluding
amortization of deferred financing prices) and after changes for
unconsolidated partnerships and joint ventures.
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FFO is a supplemental non-GAAP monetary measure. Administration makes use of FFO as a
supplemental efficiency measure as a result of it believes that FFO is helpful to
traders as a place to begin in measuring our operational efficiency.
Particularly, in excluding real-estate associated depreciation and amortization and
beneficial properties and losses from property tendencies, which don't relate to or are usually not
indicative of working efficiency, FFO gives a efficiency measure that,
compared 12 months over 12 months, captures developments in occupancy charges, rental charges
and working prices. We additionally consider that, as a widely known measure of the
efficiency of REITs, FFO will likely be utilized by traders as a foundation to check our
working efficiency with that of different REITs. Nonetheless, as a result of FFO excludes
depreciation and amortization and captures neither the adjustments within the worth of
our properties that end result from use or market situations nor the extent of
capital expenditures and leasing commissions needed to take care of the working
efficiency of our properties, all of which have actual financial results and will
materially impression our outcomes from operations, the utility of FFO as a measure
of our efficiency is restricted. As well as, different fairness REITs might not calculate
FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO
is probably not corresponding to such different REITs' FFO. Accordingly, FFO ought to be
thought of solely as a complement to internet earnings as a measure of our efficiency.
FFO shouldn't be used as a measure of our liquidity, neither is it indicative of
funds accessible to fund our money wants, together with our means to pay dividends
or service indebtedness. FFO additionally shouldn't be used as a complement to or
substitute for money stream from working actions computed in accordance with
GAAP.
The next desk units forth a reconciliation of our FFO for the three and 6
months ended June 30, 2021 to internet earnings, the closest GAAP equal (in
1000's, besides per share and share information):
                                                                                        Six
                                                                                       Months
                                                           Three Months Ended June     Ended
                                                                     30,              June 30,
                                                                 2021                               2021
Funds from Operations (FFO)
Web earnings                                                 $       11,487                      $     13,220
Plus: Actual property depreciation and amortization                    27,646                            55,147

Funds from operations                                              39,133                            68,367

Much less: Nonforfeitable dividends on incentive restricted
inventory awards

                                                         (134)                             (269)
FFO attributable to widespread inventory and items                 $       38,999                      $     68,098
FFO per diluted share/unit                                 $         0.51                      $       0.89

Weighted common variety of widespread shares and items,
diluted (1)

                                                    76,167,246                        76,166,158


(1)The weighted common widespread shares used to compute FFO per diluted share
embrace unvested restricted inventory awards which might be topic to time vesting, which
had been excluded from the computation of diluted EPS, because the vesting of the
restricted inventory awards is dilutive within the computation of FFO per diluted share
however is anti-dilutive for the computation of diluted EPS for the interval. Diluted
shares exclude incentive restricted inventory as these awards are thought of
contingently issuable.

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