the noncontrolled entities managed by american assets , inc. include the entities that owned solana beach towne centre and solana beach corporate centre , or the solana beach centre entities , and the entity that owned the fireman 's fund headquarters office property . the remaining property not managed by american assets , inc. is waikiki beach walk , which is managed by outrigger hotels & resorts . we refer to abw lewers llc and the waikiki beach walk-embassy suites , the entities that owned this non-american assets , inc. managed property , as the waikiki beach walk entities . 49 for the periods after january , 19 , 2011 , the date of the consummation of our initial public offering and the formation transactions , our operations have included the consolidated results of operations of the noncontrolled entities , excluding the fireman 's fund headquarters office property , which was not acquired by us . since our initial public offering and the formation transactions occurred on january 19 , 2011 , the results of operations and financial condition for the entities acquired by us in connection with our initial public offering and related formation transactions are not included in certain historical financial statements . more specifically , our results of operations and financial condition for the years ended december 31 , 2010 and 2009 reflect the results of operations and financial condition for our predecessor . our results of operations for the years ended december 31 , 2012 and 2011 reflect the results of operation and financial condition for our predecessor together with the entities we acquired at the time of our initial public offering , namely , the waikiki beach walk entities and the solana beach centre entities , as well as geary marketplace , city center bellevue , one beach street , first & main , lloyd district portfolio , and solana beachhighway 101 , each acquired subsequent to our initial public offering and discussed in more detail under acquisitions and dispositions . the results of operations for each of these acquisitions are included in our consolidated statements of operations only from the date of acquisition . additionally , in august 2011 , we sold valencia corporate center , and in december 2012 , we sold 160 king street . as such , we have reclassified our financial statements for all periods prior to the sales to reflect valencia corporate center and 160 king street as discontinued operations . formation transactions on january 19 , 2011 , concurrently with the completion of our initial public offering , we completed a series of formation transactions pursuant to which we acquired , through a series of merger and contribution transactions , 100 % of the ownership interests in the controlled entities , the waikiki beach walk entities and the solana beach centre entities ( including our predecessor 's ownership interest in these entities ) . we did not acquire our predecessor 's noncontrolling 25 % ownership interest in novato ff venture , llc , the entity that owns fireman 's fund headquarters . in the aggregate , these interests comprise our ownership of our property portfolio . to acquire the ownership interests in the entities that owned the properties included in our portfolio from their prior investors , we issued to such prior investors an aggregate of 7,030,084 shares of our common stock and 18,145,039 common units , with an aggregate value of $ 516.1 million , and we paid $ 6.1 million in cash to those prior investors that were non-accredited . cash amounts were provided from the net proceeds of our initial public offering . the acquisition of these ownership interests was effected substantially concurrently with the completion of our initial public offering . the net proceeds from our initial public offering were approximately $ 594.6 million ( after deducting the underwriting discount and commissions and expenses of our initial public offering and the formation transactions ) . we contributed the net proceeds of the offering to our operating partnership in exchange for common units . upon completion of our initial public offering , we entered into a $ 250.0 million revolving credit facility . in connection with our initial public offering , we repaid $ 342.0 million of indebtedness ( including $ 24.3 million of defeasance costs ) , paid $ 6.1 million in cash to those prior investors that were non-accredited , and paid $ 10.8 million for loan transfer and consent fees and credit facility origination fees . subsequently , we paid $ 7.6 million to fund tenant improvements and leasing commissions at the landmark at one market and $ 0.9 million for costs related to the renovation of solana beach towne centre . we utilized remaining net proceeds for general corporate purposes , including working capital , acquisitions , transfer taxes and paying distributions . since the completion of our initial public offering and consummation of the formation transactions , our operations have been carried on through our operating partnership and subsidiaries of our operating partnership , including our taxable reit subsidiary . consummation of the formation transactions enabled us to ( 1 ) consolidate the ownership of our property portfolio under our operating partnership ; ( 2 ) succeed to the property management business of american assets , inc. ; and ( 3 ) facilitate our initial public offering . as a result , we are a vertically integrated and self-administered reit providing substantial in-house expertise in asset management , property management , property development , leasing , tenant improvement construction , acquisitions , repositioning , redevelopment and financing . story_separator_special_tag correspondingly , these estimates of collectability have a direct impact on our net income . real estate depreciation and maintenance costs relating to our properties constitute substantial costs for us . land , buildings and improvements are recorded at cost . depreciation is computed using the straight-line method . estimated useful lives range generally from 30 years to a maximum of 40 years on buildings and major improvements . minor improvements , furniture and equipment are capitalized and depreciated over useful lives ranging from 3 to 15 years . maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred . tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life , whichever is shorter . if a tenant vacates its space prior to contractual termination of its lease , the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value . our estimates of useful lives have a direct impact on our net income . if expected useful lives of our real estate assets were shortened , we would depreciate the assets over a shorter time period , resulting in an increase to depreciation expense and a corresponding decrease to net income on an annual basis . acquisitions of properties are accounted for in accordance with the authoritative accounting guidance on acquisitions and business combinations . our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values , replacement cost and appraised values . when we acquire operating real estate properties , the purchase price is allocated to land and buildings , intangibles such as in-place leases , and to current assets and liabilities acquired , if any . such valuations include a consideration of the noncancelable terms of the respective leases as well as any applicable renewal period ( s ) . the fair values associated with below market renewal options are determined based on a review of several qualitative and 54 quantitative factors on a lease-by-lease basis at acquisition to determine whether it is probable that the tenant would exercise its option to renew the lease agreement . these factors include : ( 1 ) the type of tenant in relation to the property it occupies , ( 2 ) the quality of the tenant , including the tenant 's long term business prospects , and ( 3 ) whether the fixed rate renewal option was sufficiently lower than the fair rental of the property at the date the option becomes exercisable such that it would appear to be reasonably assured that the tenant would exercise the option to renew . each of these estimates requires a great deal of judgment , and some of the estimates involve complex calculations . these allocation assessments have a direct impact on our results of operations because if we were to allocate more value to land , there would be no depreciation with respect to such amount . if we were to allocate more value to the buildings , as opposed to allocating to the value of tenant leases , this amount would be recognized as an expense over a much longer period of time , since the amounts allocated to buildings are depreciated over the estimated lives of the buildings whereas amounts allocated to tenant leases are amortized over the remaining terms of the leases . the value allocated to in-place leases is amortized over the related lease term and reflected as depreciation and amortization in the statement of operations . the value of above and below market leases associated with the original noncancelable lease terms are amortized to rental income over the terms of the respective noncancelable lease periods and are reflected as either an increase ( for below market leases ) or a decrease ( for above market leases ) to rental income in the statement of operations . if a tenant vacates its space prior to contractual termination of its lease or the lease is not renewed , the unamortized balance of any in-place lease value is written off to rental income and amortization expense . the value of the leases associated with below market lease renewal options that are likely to be exercised are amortized to rental income over the respective renewal periods . we make assumptions and estimates related to below market lease renewal options , which impact revenue in the period in which the renewal options are exercised and could result in significant increases to revenue if the renewal options are not exercised at which time the related below market lease liabilities would be written off as an increase to revenue . capitalized costs we capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs , real estate taxes , insurance and construction costs and salaries and related costs of personnel directly involved . additionally , we capitalize interest costs related to development and significant redevelopment activities . capitalization of these costs begins when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use , at which time the project is placed in service and depreciation commences . additionally , we make estimates as to the probability of certain development and redevelopment projects being completed . if we determine that the completion of development or redevelopment is no longer probable , we expense all capitalized costs which are not recoverable . certain external and internal costs directly related to the development and redevelopment of real estate , including pre-construction costs , real estate taxes , insurance , construction costs and salaries and related costs of personnel directly involved , are capitalized . we capitalize costs under development until construction is substantially complete and the property is held available for occupancy . the determination of when a development project is substantially complete and

early extinguishment of debt . early extinguishment of debt includes $ 24.3 million in defeasance costs , $ 0.6 million of unamortized deferred loan fees and $ 0.9 million of unamortized debt fair value adjustments that were written off related to loans repaid at the time of our initial public offering . loan transfer and consent fees . loan transfer and consent fees relate to fees paid to lenders in order for the lenders to consent to the transfer of the existing loans at certain properties to the operating partnership as part of the formation transactions . gain on acquisition . the gain on acquisition for the year ended december 31 , 2011 relates to the gains recognized on the acquisition of the outside ownership interests in the solana beach centre entities and the waikiki beach walk entities . other income ( expense ) , net . other income ( expense ) , net decreased $ 0.8 million , or 397 % , to net expense of $ 0.6 million for the year ended december 31 , 2012 , compared to net income of $ 0.2 million for the year ended december 31 , 2011. other income ( expense ) , net is comprised of interest and investment income , acquisition related expenses , and income tax expense related to our taxable reit subsidiary , which operates the hotel portion of our mixed-use property . the decrease was mainly due to a reduction in investment income related to the sale of our gnma securities . discontinued operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```early extinguishment of debt . early extinguishment of debt includes $ 24.3 million in defeasance costs , $ 0.6 million of unamortized deferred loan fees and $ 0.9 million of unamortized debt fair value adjustments that were written off related to loans repaid at the time of our initial public offering . loan transfer and consent fees . loan transfer and consent fees relate to fees paid to lenders in order for the lenders to consent to the transfer of the existing loans at certain properties to the operating partnership as part of the formation transactions . gain on acquisition . the gain on acquisition for the year ended december 31 , 2011 relates to the gains recognized on the acquisition of the outside ownership interests in the solana beach centre entities and the waikiki beach walk entities . other income ( expense ) , net . other income ( expense ) , net decreased $ 0.8 million , or 397 % , to net expense of $ 0.6 million for the year ended december 31 , 2012 , compared to net income of $ 0.2 million for the year ended december 31 , 2011. other income ( expense ) , net is comprised of interest and investment income , acquisition related expenses , and income tax expense related to our taxable reit subsidiary , which operates the hotel portion of our mixed-use property . the decrease was mainly due to a reduction in investment income related to the sale of our gnma securities . discontinued operations .
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 Suspicious Activity Report : the noncontrolled entities managed by american assets , inc. include the entities that owned solana beach towne centre and solana beach corporate centre , or the solana beach centre entities , and the entity that owned the fireman 's fund headquarters office property . the remaining property not managed by american assets , inc. is waikiki beach walk , which is managed by outrigger hotels & resorts . we refer to abw lewers llc and the waikiki beach walk-embassy suites , the entities that owned this non-american assets , inc. managed property , as the waikiki beach walk entities . 49 for the periods after january , 19 , 2011 , the date of the consummation of our initial public offering and the formation transactions , our operations have included the consolidated results of operations of the noncontrolled entities , excluding the fireman 's fund headquarters office property , which was not acquired by us . since our initial public offering and the formation transactions occurred on january 19 , 2011 , the results of operations and financial condition for the entities acquired by us in connection with our initial public offering and related formation transactions are not included in certain historical financial statements . more specifically , our results of operations and financial condition for the years ended december 31 , 2010 and 2009 reflect the results of operations and financial condition for our predecessor . our results of operations for the years ended december 31 , 2012 and 2011 reflect the results of operation and financial condition for our predecessor together with the entities we acquired at the time of our initial public offering , namely , the waikiki beach walk entities and the solana beach centre entities , as well as geary marketplace , city center bellevue , one beach street , first & main , lloyd district portfolio , and solana beachhighway 101 , each acquired subsequent to our initial public offering and discussed in more detail under acquisitions and dispositions . the results of operations for each of these acquisitions are included in our consolidated statements of operations only from the date of acquisition . additionally , in august 2011 , we sold valencia corporate center , and in december 2012 , we sold 160 king street . as such , we have reclassified our financial statements for all periods prior to the sales to reflect valencia corporate center and 160 king street as discontinued operations . formation transactions on january 19 , 2011 , concurrently with the completion of our initial public offering , we completed a series of formation transactions pursuant to which we acquired , through a series of merger and contribution transactions , 100 % of the ownership interests in the controlled entities , the waikiki beach walk entities and the solana beach centre entities ( including our predecessor 's ownership interest in these entities ) . we did not acquire our predecessor 's noncontrolling 25 % ownership interest in novato ff venture , llc , the entity that owns fireman 's fund headquarters . in the aggregate , these interests comprise our ownership of our property portfolio . to acquire the ownership interests in the entities that owned the properties included in our portfolio from their prior investors , we issued to such prior investors an aggregate of 7,030,084 shares of our common stock and 18,145,039 common units , with an aggregate value of $ 516.1 million , and we paid $ 6.1 million in cash to those prior investors that were non-accredited . cash amounts were provided from the net proceeds of our initial public offering . the acquisition of these ownership interests was effected substantially concurrently with the completion of our initial public offering . the net proceeds from our initial public offering were approximately $ 594.6 million ( after deducting the underwriting discount and commissions and expenses of our initial public offering and the formation transactions ) . we contributed the net proceeds of the offering to our operating partnership in exchange for common units . upon completion of our initial public offering , we entered into a $ 250.0 million revolving credit facility . in connection with our initial public offering , we repaid $ 342.0 million of indebtedness ( including $ 24.3 million of defeasance costs ) , paid $ 6.1 million in cash to those prior investors that were non-accredited , and paid $ 10.8 million for loan transfer and consent fees and credit facility origination fees . subsequently , we paid $ 7.6 million to fund tenant improvements and leasing commissions at the landmark at one market and $ 0.9 million for costs related to the renovation of solana beach towne centre . we utilized remaining net proceeds for general corporate purposes , including working capital , acquisitions , transfer taxes and paying distributions . since the completion of our initial public offering and consummation of the formation transactions , our operations have been carried on through our operating partnership and subsidiaries of our operating partnership , including our taxable reit subsidiary . consummation of the formation transactions enabled us to ( 1 ) consolidate the ownership of our property portfolio under our operating partnership ; ( 2 ) succeed to the property management business of american assets , inc. ; and ( 3 ) facilitate our initial public offering . as a result , we are a vertically integrated and self-administered reit providing substantial in-house expertise in asset management , property management , property development , leasing , tenant improvement construction , acquisitions , repositioning , redevelopment and financing . story_separator_special_tag correspondingly , these estimates of collectability have a direct impact on our net income . real estate depreciation and maintenance costs relating to our properties constitute substantial costs for us . land , buildings and improvements are recorded at cost . depreciation is computed using the straight-line method . estimated useful lives range generally from 30 years to a maximum of 40 years on buildings and major improvements . minor improvements , furniture and equipment are capitalized and depreciated over useful lives ranging from 3 to 15 years . maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred . tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life , whichever is shorter . if a tenant vacates its space prior to contractual termination of its lease , the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value . our estimates of useful lives have a direct impact on our net income . if expected useful lives of our real estate assets were shortened , we would depreciate the assets over a shorter time period , resulting in an increase to depreciation expense and a corresponding decrease to net income on an annual basis . acquisitions of properties are accounted for in accordance with the authoritative accounting guidance on acquisitions and business combinations . our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values , replacement cost and appraised values . when we acquire operating real estate properties , the purchase price is allocated to land and buildings , intangibles such as in-place leases , and to current assets and liabilities acquired , if any . such valuations include a consideration of the noncancelable terms of the respective leases as well as any applicable renewal period ( s ) . the fair values associated with below market renewal options are determined based on a review of several qualitative and 54 quantitative factors on a lease-by-lease basis at acquisition to determine whether it is probable that the tenant would exercise its option to renew the lease agreement . these factors include : ( 1 ) the type of tenant in relation to the property it occupies , ( 2 ) the quality of the tenant , including the tenant 's long term business prospects , and ( 3 ) whether the fixed rate renewal option was sufficiently lower than the fair rental of the property at the date the option becomes exercisable such that it would appear to be reasonably assured that the tenant would exercise the option to renew . each of these estimates requires a great deal of judgment , and some of the estimates involve complex calculations . these allocation assessments have a direct impact on our results of operations because if we were to allocate more value to land , there would be no depreciation with respect to such amount . if we were to allocate more value to the buildings , as opposed to allocating to the value of tenant leases , this amount would be recognized as an expense over a much longer period of time , since the amounts allocated to buildings are depreciated over the estimated lives of the buildings whereas amounts allocated to tenant leases are amortized over the remaining terms of the leases . the value allocated to in-place leases is amortized over the related lease term and reflected as depreciation and amortization in the statement of operations . the value of above and below market leases associated with the original noncancelable lease terms are amortized to rental income over the terms of the respective noncancelable lease periods and are reflected as either an increase ( for below market leases ) or a decrease ( for above market leases ) to rental income in the statement of operations . if a tenant vacates its space prior to contractual termination of its lease or the lease is not renewed , the unamortized balance of any in-place lease value is written off to rental income and amortization expense . the value of the leases associated with below market lease renewal options that are likely to be exercised are amortized to rental income over the respective renewal periods . we make assumptions and estimates related to below market lease renewal options , which impact revenue in the period in which the renewal options are exercised and could result in significant increases to revenue if the renewal options are not exercised at which time the related below market lease liabilities would be written off as an increase to revenue . capitalized costs we capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs , real estate taxes , insurance and construction costs and salaries and related costs of personnel directly involved . additionally , we capitalize interest costs related to development and significant redevelopment activities . capitalization of these costs begins when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use , at which time the project is placed in service and depreciation commences . additionally , we make estimates as to the probability of certain development and redevelopment projects being completed . if we determine that the completion of development or redevelopment is no longer probable , we expense all capitalized costs which are not recoverable . certain external and internal costs directly related to the development and redevelopment of real estate , including pre-construction costs , real estate taxes , insurance , construction costs and salaries and related costs of personnel directly involved , are capitalized . we capitalize costs under development until construction is substantially complete and the property is held available for occupancy . the determination of when a development project is substantially complete and

