Company Overview - American Assets Trust, Inc. is a full-service, vertically integrated, and self-administered real estate investment trust (REIT) headquartered in San Diego, California with over 55 years of experience in acquiring, improving, developing, and managing premier office, retail, and residential properties throughout the United States [3] - The company's office portfolio comprises approximately 4.1 million rentable square feet, while its retail portfolio includes approximately 2.4 million rentable square feet [3] - Additionally, the company owns one mixed-use property with approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel, along with 2,302 multifamily units [3] Upcoming Earnings Announcement - The company will announce its first quarter 2025 earnings in a press release after the market closes on Tuesday, April 29, 2025 [1] - A conference call for the first quarter 2025 earnings will be held on Wednesday, April 30, 2025, at 8:00 a.m. Pacific Time [1] - Access to the conference call can be obtained by dialing 1 (833) 816-1162 and requesting to join the American Assets Trust, Inc. Conference Call [1]

Core Insights - American Assets Trust, Inc. has successfully acquired Genesee Park, a 192-unit apartment community in San Diego, California for $67.9 million [1][4] - The property is currently approximately 93% leased, with rental rates believed to be significantly below market levels, presenting an opportunity for value enhancement through strategic asset management [2][3] Company Overview - American Assets Trust, Inc. is a vertically integrated and self-administered real estate investment trust (REIT) with over 55 years of experience in acquiring, improving, developing, and managing premier properties across the United States [5] - The company's portfolio includes approximately 4.1 million rentable square feet of office space, 2.4 million rentable square feet of retail space, and 2,302 multifamily units [5] Strategic Plans - The company plans to optimize rental rates and explore opportunities to enhance density at Genesee Park, aiming to unlock the property's full value while improving the living experience for residents [3] - This acquisition aligns with the company's long-term strategy of acquiring and enhancing high-quality assets in key markets [3]

Core Viewpoint - American Assets Trust, Inc. has announced the sale of Del Monte Shopping Center for approximately $123.5 million, which is a strategic move to focus on markets that offer greater economies of scale and operational efficiencies [1][2]. Company Overview - American Assets Trust, Inc. is a vertically integrated and self-administered real estate investment trust (REIT) based in San Diego, California, with over 55 years of experience in acquiring, improving, developing, and managing premier properties across the United States [3]. - The company's office portfolio includes approximately 4.1 million rentable square feet, while its retail portfolio comprises around 2.4 million rentable square feet [3]. - The company also owns a mixed-use property with approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel, in addition to 2,110 multifamily units [3].

Portfolio Composition - As of December 31, 2024, the portfolio includes twelve office properties, twelve retail shopping centers, one mixed-use property with a 369-room hotel, and six multifamily properties[35]. - The operating portfolio as of December 31, 2024, includes 31 properties with approximately 7.3 million rentable square feet of office and retail space, 2,110 residential units, and a 369-room hotel[179]. - The total net rentable square feet across all properties is 7,264,703, with Southern California contributing 40.2% of this total[196]. - The office portfolio includes 12 properties with approximately 4.1 million rentable square feet, 85.0% of which were leased as of December 31, 2024[233]. Financial Performance - In 2024, approximately 53% of the company's net operating income was derived from office properties, indicating a significant reliance on this segment[58]. - The total annualized base rent for the retail and office portfolio is $273,746,176, with an average rent per leased square foot of $42.85 and an overall leased percentage of 89.1%[180]. - The total property operating income for the office segment was $153,544,000, representing 52.9% of the total property operating income[198]. - The retail segment generated property operating income of $76,532,000, accounting for 26.4% of the total[198]. Growth Strategy - The company aims to pursue growth through strategic acquisitions of high-quality properties in high-barrier-to-entry markets[42]. - The company plans to selectively reposition and redevelop existing properties and pursue ground-up development opportunities[42]. - The company aims for growth in earnings and cash flows through property development, acquisitions, and redevelopment opportunities[223]. - The company evaluates properties continuously to identify redevelopment opportunities that enhance operating performance[224]. Debt and Financial Risks - The company had total debt outstanding of $1.70 billion as of February 11, 2025, which may expose it to risks of default under its debt obligations[60]. - High mortgage rates may hinder the company's ability to finance or refinance properties, potentially reducing net income and cash distributions[74]. - The company is exposed to foreclosure risks due to mortgage debt obligations, which could adversely affect its property portfolio value[75]. - The company’s ability to grow is limited if it cannot obtain additional capital, especially in unfavorable economic conditions[72]. Tenant and Lease Information - As of December 31, 2024, the three largest tenants in the office portfolio accounted for approximately 31.5% of the total annualized base rent, with Google LLC, LPL Holdings, Inc., and Autodesk, Inc. contributing 14.0%, 10.6%, and 6.9% respectively[62]. - The largest anchor tenants in the retail portfolio, including Lowe's, Sprouts Farmers Market, and Marshalls, represented approximately 10.1% of total annualized base rent as of December 31, 2024[66]. - The total annualized base rent for signed but not commenced leases in the office portfolio is $3,381,430, with a rent per leased square foot of $45.94[187]. - The total annualized base rent for signed but not commenced leases in the retail portfolio is $767,399, with a rent per leased square foot of $68.29[187]. Market and Competitive Environment - The company operates in a highly competitive environment, which may limit suitable acquisition opportunities and increase acquisition costs[50]. - The company faces competition from other developers and operators in its markets, which may affect its ability to lease properties and maintain rental rates[49]. - The company faces significant risks in the retail real estate market, including competition from discount and internet retailers, which could adversely affect market rents and tenant demand[88]. - The company competes with numerous developers and operators, which may lead to decreased occupancy and rental rates if competitors offer lower rates[90]. Environmental and Regulatory Risks - The company is exposed to potential environmental liabilities, including contamination issues at certain properties, which could impact financial performance[47]. - The company may face liabilities related to environmental issues, including mold and air quality problems, which could lead to costly remediation efforts[133]. - The company is subject to laws and regulations related to climate change, which could result in substantial compliance costs[112]. - The company’s properties are vulnerable to climate change impacts, which may lead to additional compliance obligations and costs[113]. Operational and Management Risks - The company is focused on proactive asset and property management to increase occupancy rates and enhance property cash flows[42]. - The company relies on third-party management for its hospitality properties, which may limit operational control and increase financial risks[99]. - The company has implemented various security measures to mitigate risks associated with information technology and data security[121]. - The Audit Committee receives quarterly reports on cybersecurity risks and oversees the cybersecurity risk management program, ensuring governance and risk oversight[175]. Shareholder and Governance Issues - The company is committed to maintaining its REIT status by distributing at least 90% of its net taxable income to stockholders[44]. - The company’s ability to generate revenues in excess of expenses is crucial for making expected distributions to stockholders and unitholders[124]. - The board of directors can increase the number of authorized shares without stockholder approval, potentially diluting existing shares[141]. - The partnership agreement includes provisions that may delay or prevent unsolicited acquisitions, potentially affecting stockholder interests[145].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported FFO per share of $0.55, a decrease of approximately $0.16 compared to Q3 2024, primarily due to nonrecurring termination fees received in Q3 that were not present in Q4 [31][32] - Total revenue, NOI, and aggregate dividends exceeded $103 million, marking record levels for the company [8][9] - The company ended Q4 with liquidity of approximately $826 million, comprised of $426 million in cash and cash equivalents and $400 million available on a revolving line of credit [33] Business Line Data and Key Metrics Changes - The office segment experienced a negative 2.8% same-store cash NOI growth in Q4, primarily due to known move-outs [32] - The retail segment achieved a 5% same-store NOI growth in 2024, with properties at 95% leased [20] - The multifamily segment reported over 6% same-store cash NOI growth in 2024 compared to 2023 [21] Market Data and Key Metrics Changes - The office portfolio closed the year at 85% leased, reflecting a decrease of 200 basis points compared to the prior quarter [14] - National office demand is approaching pre-pandemic levels, with quarterly net absorption turning positive for the first time in three years [14] - The retail segment is supported by resilient consumer spending in affluent, supply-constrained markets [20] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, ample liquidity, and increasing dividends through long-term cash flow growth [11] - A strategic decision was made to sell Del Monte Center to focus on markets with greater operational efficiencies and economies of scale [25][26] - The company is actively pursuing multifamily acquisitions that offer value-add opportunities, particularly in markets where they already have a presence [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the return-to-office mandates from tenants, which are expected to drive increased occupancy and leasing momentum [12][13] - The Class A office market is anticipated to improve significantly over the next 12 to 24 months, assuming economic stability [14] - Management acknowledged the challenges posed by increased interest expenses and the need for prudent financial management [11][12] Other Important Information - The board approved a 1.5% increase in the quarterly dividend to $0.34 per share, reflecting confidence in the company's long-term performance [29] - The company expects 2025 FFO per share guidance to range from $1.87 to $2.01, representing a 24% decrease from 2024 [35] Q&A Session Summary Question: Can you discuss the expected contribution from La Jolla One Beach and the Bellevue assets in 2025? - Management indicated that while the future looks bright, cash flow improvements from these assets are expected to be realized later in 2025 and into 2026 [52][60] Question: What is the expected FFO dilution from the Del Monte Center sale? - Management stated that the sale is expected to result in an 11-cent dilution, with proceeds earmarked for multifamily acquisitions [64][67] Question: Why raise the dividend now despite reduced earnings expectations? - The board aimed to assure investors of their confidence in the portfolio's quality, maintaining a payout ratio below 100% [85][88] Question: What are the assumptions for same-store cash NOI for office and retail? - Same-store office cash NOI is expected to decrease by 1%, while retail is projected to increase by approximately 1.5% [130][132]

Core Viewpoint - American Assets Trust (AAT) reported quarterly funds from operations (FFO) of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.57 per share a year ago [1][2] Financial Performance - The company achieved revenues of $113.46 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.66% and showing an increase from $112.49 million year-over-year [2] - Over the last four quarters, AAT has consistently exceeded consensus FFO estimates [2] Stock Performance - AAT shares have declined approximately 8.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.53 on revenues of $111.51 million, and for the current fiscal year, it is $2.29 on revenues of $456.86 million [7] - The outlook for the REIT and Equity Trust - Retail industry is positive, ranking in the top 36% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Performance - Total revenue for Q4 2024 was $113.460 million, a slight increase from $112.491 million in Q4 2023, representing a growth of 0.9%[12] - Net income attributable to American Assets Trust, Inc. stockholders for Q4 2024 was $8.977 million, down from $10.481 million in Q4 2023, a decrease of 14.4%[12] - Funds from Operations (FFO) for Q4 2024 was $42.110 million, compared to $43.210 million in Q4 2023, reflecting a decline of 2.5%[13] - The company reported a basic income from operations attributable to common stockholders per share of $0.15 for Q4 2024, down from $0.17 in Q4 2023, a decrease of 11.8%[12] - Net income for Q4 2024 was $11,584,000, a decrease from $13,492,000 in Q4 2023, while total net income for the year increased to $72,819,000 from $64,690,000[122] - EBITDA for Q4 2024 was $60,752,000, compared to $59,307,000 in Q4 2023, with annual EBITDA rising to $264,662,000 from $247,762,000[122] Assets and Liabilities - Total assets as of December 31, 2024, were $3.273 billion, up from $2.985 billion as of December 31, 2023, indicating an increase of 9.7%[11] - Total liabilities increased to $2.149 billion in Q4 2024 from $1.831 billion in Q4 2023, an increase of 17.4%[11] - The total debt as of December 31, 2024, was $2,025,000,000, with a weighted average interest rate of 4.58%[66] - The total unencumbered assets grossed $4,105,318,000, providing a strong backing against unsecured debt[66] Cash Flow and Dividends - Cash and cash equivalents increased significantly to $425.659 million in Q4 2024 from $82.888 million in Q4 2023, marking a growth of 414.5%[11] - The company declared dividends of $25.902 million in Q4 2024, slightly up from $25.436 million in Q4 2023, a growth of 1.8%[13] Operational Metrics - Same-store Net Operating Income (NOI) for Q4 2024 totaled $70,211,000, reflecting a 2.6% increase from $67,571,000 in Q4 2023, while annual same-store NOI rose to $292,054,000 from $273,723,000, an increase of 6.7%[24][34] - Total Cash NOI for Q4 2024 reached $68,669,000, with contributions from Office ($33,845,000), Retail ($20,327,000), Multifamily ($9,016,000), and Mixed-Use ($5,481,000)[42] - Same-store Cash NOI for Q4 2024 was $69,307,000, a 2.6% increase from $67,571,000 in Q4 2023[131] - Total Same-Store Cash NOI with Redevelopment for Q4 2024 was $68,954,000, up 2.2% from $67,468,000 in Q4 2023[131] Capital Expenditures - Capital expenditures for tenant improvements and leasing commissions in Q4 2024 were $7,255,000, significantly higher than $3,306,000 in Q4 2023, while annual capital expenditures increased to $32,631,000 from $21,190,000[15] - Total capital expenditures for the fourth quarter of 2024 amounted to $20,644,000, with the Office Portfolio contributing $14,790,000[55] Tenant and Lease Information - The portfolio consists of 7.2 million square feet of net rentable space, with 57% from office and 43% from retail[4] - The total number of leases signed in the last 12 months was 67, with a total net rentable square footage of 398,506 and a weighted average lease term of 5.8 years[8] - The total number of leases signed in Q4 2024 was 23, with a net rentable area of 117,333 square feet and a contractual rent per square foot of $35.82, reflecting a 6.9% weighted average lease term[92] - The top 10 office tenants occupy a total of 1,369,722 square feet, representing 33.6% of total office leased space, contributing $90,295,336 in annualized base rent, which is 46.6% of total office rent[111] Market Outlook and Guidance - The company expects 2025 FFO per diluted share to range from $1.87 to $2.01, with the midpoint guidance set at $1.94, compared to the actual 2024 FFO per diluted share of $2.58[21] - The company plans to discuss its guidance in more detail during the upcoming earnings call, excluding impacts from future acquisitions or dispositions[21] Interest and Expenses - Interest expense for Q4 2024 was $23,754,000, up from $16,284,000 in Q4 2023, with total interest expense for the year increasing to $74,527,000 from $64,706,000[122] - General and administrative expenses for Q4 2024 were $8,821,000, a decrease of 6.9% from $9,472,000 in Q4 2023[126] Development and Future Projects - The company has multiple development opportunities, including a 120,000 square foot retail building at Waikele Center in Honolulu, HI[72] - The Lloyd Portfolio's additional development plans are in early stages and will progress based on demand and economic conditions[74]

Core Insights - The company reported a net income of $9.0 million for Q4 2024 and $56.8 million for the full year, translating to $0.15 and $0.94 per diluted share respectively [5][25] - Funds from Operations (FFO) per diluted share decreased by 4% in Q4 but increased by 8% year-over-year for the full year, reaching $0.55 and $2.58 respectively [5][27] - The company introduced 2025 annual guidance for FFO per diluted share with a midpoint of $1.94, ranging from $1.87 to $2.01 [2][19] Financial Results - For the three months ended December 31, 2024, net income attributable to common stockholders was $8.977 million, down from $10.481 million in Q4 2023 [4][25] - FFO attributable to common stock and common units was $42.110 million for Q4 2024, compared to $43.210 million in Q4 2023 [4][27] - Same-store cash Net Operating Income (NOI) increased by 2.6% for Q4 and 1.4% for the full year compared to the same periods in 2023 [5][14] Leasing Activity - The company leased approximately 57,000 office square feet with an average straight-line rent increase of 11% and a cash-basis increase of 2% during Q4 2024 [5][10] - Approximately 100,000 retail square feet were leased with a straight-line rent increase of 31% and a cash-basis increase of 7% during the same period [5][10] Balance Sheet and Liquidity - As of December 31, 2024, the company had gross real estate assets of $3.6 billion and liquidity of $825.7 million, including $425.7 million in cash and cash equivalents [16] - The company had only one asset encumbered by a mortgage out of 31 total assets [16] Dividends - The company declared a dividend of $0.335 per share for Q4 2024, paid on December 19, 2024, and a dividend of $0.340 per share for Q1 2025, to be paid on March 20, 2025 [18]

分组1 - American Assets Trust, Inc. announced the tax treatment of its 2024 dividend distributions, detailing the amounts and classifications for each distribution [1] - The total dividend distribution for 2024 is $1.340 per share, with $1.092388 classified as ordinary dividend and $0.247612 as return of capital [1] - The company did not incur any foreign taxes during 2024, and stockholders are advised to consult their tax advisors regarding the tax treatment of the dividends [1] 分组2 - American Assets Trust, Inc. is a vertically integrated and self-administered real estate investment trust (REIT) with over 55 years of experience in managing premier properties across the United States [2] - The company's office portfolio comprises approximately 4.1 million rentable square feet, while its retail portfolio includes about 3.1 million rentable square feet [2] - The company also owns a mixed-use property with approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel, along with 2,110 multifamily units [2]

Group 1 - The stock of American Assets Trust, Inc. (AAT) is experiencing significant attention due to high implied volatility in the options market, particularly the Apr 17, 2025 $25 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - American Assets Trust currently holds a Zacks Rank 3 (Hold) in the REIT and Equity Trust - Retail industry, which is in the top 28% of the Zacks Industry Rank [3] Group 2 - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 54 cents per share to 50 cents [3] - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility, aiming for the underlying stock to not move as much as expected at expiration [4]