Core Insights - The article promotes a live video series on Facebook called the Underdog Daily Dividend Show, which highlights potential investment candidates in the small/mid-cap dividend sector [1]. Group 1 - The Underdog Daily Dividend Show is hosted by A. Fredrik Arnold and takes place every trading day at approximately 9:45 AM [1]. - The show encourages audience interaction by inviting comments on favorite, least favorite, or mysterious stock tickers for future reports [1].

Core Insights - American Assets Trust (AAT) is currently offering a not fully covered dividend yield, which has reached its highest level since the pandemic due to a 30% year-to-date decline in its common stock [1] Company Overview - AAT's dividend yield has expanded significantly, indicating potential investment opportunities despite the stock's recent performance [1] Market Context - The equity market is characterized by daily price fluctuations that can lead to substantial long-term wealth creation or destruction [1] - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Financial Performance - Total revenue for Q3 2025 was $109.578 million, a decrease of 10.7% compared to $122.810 million in Q3 2024[23] - Net income attributable to American Assets Trust, Inc. stockholders for Q3 2025 was $4.509 million, down 73.0% from $16.657 million in Q3 2024[23] - Earnings per common share (basic) for Q3 2025 was $0.07, a decrease of 75.0% from $0.28 in Q3 2024[23] - Rental income for Q3 2025 was $102.222 million, a decline of 3.1% from $105.549 million in Q3 2024[23] - Comprehensive income for the three months ended September 30, 2025, was $5,037,000, a decrease from $16,142,000 in 2024[34] - Net income for the nine months ended September 30, 2025, was $67.149 million, an increase from $61.235 million in 2024, representing a growth of approximately 3.5%[40] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $52.5 million, an increase from $47.8 million in 2024[132] - The total segments' profit for the nine months ended September 30, 2025, was $201.193 million, down 8.8% from $220.555 million in 2024[170] Assets and Liabilities - Total assets as of September 30, 2025, were $2.942 billion, down from $3.273 billion as of December 31, 2024[21] - Total liabilities decreased to $1.828 billion as of September 30, 2025, from $2.149 billion at the end of 2024[21] - The total equity of American Assets Trust, Inc. as of September 30, 2025, was $1.114 billion, down from $1.124 billion at the end of 2024[21] - Cash and cash equivalents decreased significantly to $138.714 million from $425.659 million at the end of 2024[21] - Total liabilities decreased to $1,827,664,000 as of September 30, 2025, from $2,149,044,000 as of December 31, 2024, a reduction of approximately 15%[30] - Cash and cash equivalents at the end of the period were $138.714 million, a decrease from $533.004 million at the end of the same period in 2024[40] Dividends and Distributions - The company declared dividends of $0.340 per common share for Q3 2025, slightly up from $0.335 in Q3 2024[23] - The company declared and paid dividends totaling $78,876,000 for the nine months ended September 30, 2025, compared to $77,466,000 for the same period in 2024, reflecting a slight increase[28] - The company declared dividends of $0.340 per share for each quarter in the first three quarters of 2025[125] - Distributions per unit increased to $0.340 for the three months ended September 30, 2025, compared to $0.335 in 2024[34] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $126,545,000, down from $166,464,000 in the same period of 2024, a decline of approximately 24%[28] - The company reported a net decrease in cash and cash equivalents of $286.945 million for the nine months ended September 30, 2025, compared to an increase of $450.116 million in 2024[40] - Cash paid for interest, net of amounts capitalized, was $72.664 million in 2025, up from $54.047 million in 2024, indicating a significant increase of about 34.5%[52] Real Estate Transactions - The company reported a gain on the sale of real estate of $44.476 million for the nine months ended September 30, 2025, compared to no gains reported in the same period of 2024[28] - The company recorded a gain of approximately $44.5 million from the sale of Del Monte Center, with net proceeds of about $117.8 million after closing costs[69] - The company acquired Genesee Park, a 192-unit apartment community, for $67.9 million on February 28, 2025[67] - For the period of acquisition through September 30, 2025, Genesee Park generated revenues of $2,695,000 but incurred operating expenses of $3,669,000, resulting in an operating loss of $974,000[68] Debt and Financing - The company had $1.6 billion of fixed-rate debt outstanding as of September 30, 2025, with an estimated fair value of $1.5 billion[292] - The Operating Partnership repaid the entirety of Term Loan B and Term Loan C on January 2, 2025, which had principal balances of $150,000,000 and $75,000,000 respectively[93] - The 3.375% Senior Notes issued on January 26, 2021, totaled $500,000,000 and are set to mature on February 1, 2031, with a yield to maturity of 3.502%[96] - The 6.150% Senior Notes issued on September 17, 2024, totaled $525,000,000 and are set to mature on October 1, 2034, with an effective interest rate of 6.209%[97][98] - As of September 30, 2025, total unsecured notes payable amounted to $1,612,228,000, a decrease from $1,935,756,000 as of December 31, 2024, representing a reduction of approximately 16.7%[92] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $84,811,000, slightly down from $85,002,000 in 2024[34] - General and administrative expenses for the nine months ended September 30, 2025, were $27,662,000, an increase from $26,647,000 in 2024[34] - Total rental expenses for the nine months ended September 30, 2025, were $91,746,000, compared to $90,707,000 for the same period in 2024[156] Rental Income and Future Rentals - For the nine months ended September 30, 2025, total property revenue was $153.992 million, a decrease of 6.1% from $164.050 million in the same period of 2024[168] - Minimum future rentals from noncancelable operating leases total $1,148,463,000, with the largest portion in 2026 at $252,343,000[148] - Rental revenue from office properties for the three months ended September 30, 2025, was $49,085,000, slightly up from $48,310,000 in 2024[155] Other Income and Expenses - Other income for the nine months ended September 30, 2025, was $2,769,000, significantly lower than $12,857,000 in 2024, which included a $10 million settlement[157] - The provision for uncollectible rental income was $389,000 in 2025, down from $1.095 million in 2024, indicating improved collection performance[40] Management and Agreements - The management fee for the retail portion of Waikiki Beach Walk is 3.0% of net revenues, while for the hotel portion, it is 6.0% of gross operating profit and 3.0% of gross revenues, capped at 3.5% of gross revenues for the fiscal year[140] - WBW Hotel Lessee LLC has a franchise license agreement with Embassy Suites Franchise LLC for 20 years, requiring a monthly royalty fee of 5.0% of gross room revenue and a program fee of 4.0% of gross room revenue[141] - The company has a management agreement with Outrigger for Waikele Center and Shops at Kalakaua, with a fixed management fee of $12,000 per month[140]

Core Viewpoint - American Assets Trust (AAT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for American Assets Trust suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, American Assets Trust is expected to earn $2.01 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1% over the past three months [8].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - For Q3 2025, funds from operations (FFO) were $0.49 per diluted share, slightly above internal projections, supported by leasing progress and disciplined expense management [3][14] - Total revenue for the quarter was $110 million, with net income attributable to common stockholders at $0.07 per diluted share [14] - Same-store cash NOI combined decreased by 0.8% compared to Q3 2024, reflecting a transition year [15] Business Line Data and Key Metrics Changes - The office portfolio ended the quarter 82% leased, with same-store office NOI increasing by 3.6% compared to Q3 2024 [4][15] - The retail portfolio was 98% leased, with same-store retail NOI declining by 2.6% due to credit-related rent losses [7][16] - The multifamily portfolio's same-store NOI declined by 8.3%, impacted by supply headwinds in San Diego [9][16] Market Data and Key Metrics Changes - The broader economic backdrop remains mixed, with interest rates stabilizing and inflation moderating but still above long-term targets [4] - Retail availability remains near record lows nationally, with asking rents continuing to rise [7] - In San Diego, multifamily occupancy improved to 94% leased, with recent leasing momentum noted [9] Company Strategy and Development Direction - The company focuses on owning irreplaceable coastal assets and maintaining a strong balance sheet, emphasizing long-term value creation [3][4] - The strategy includes converting leasing momentum into signed leases and sustaining positive leasing spreads across office and retail sectors [12] - The company is optimistic about capturing demand in healthy office submarkets, particularly with new developments like La Jolla Commons Tower 3 [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a mixed economic environment but remains confident in the long-term fundamentals of their assets [4][16] - There is optimism regarding leasing activity and potential recovery in tourism, particularly in Hawaii, as outbound travel trends improve [11][17] - The company anticipates raising its full-year 2025 guidance range to $1.93 to $2.01 per FFO share, reflecting year-to-date performance [19] Other Important Information - The board approved a quarterly dividend of $0.34 per share for Q4, payable on December 18 [13] - The company has total liquidity of approximately $539 million, with a net debt to EBITDA ratio of 6.7 times [18] Q&A Session Summary Question: Update on leasing pipeline for La Jolla Commons Tower 3 and One Beach Street - Management noted increased activity and signed leases with an international bank, indicating positive momentum towards stabilization [22][23] Question: Known move-outs for 2026 - Management forecasted about 180,000 square feet of potential move-outs but expressed confidence in strong leasing activity to offset this [26] Question: Current leverage profile and plans to reduce it - Management outlined plans to lease up One Beach Street and La Jolla Commons Tower 3 to improve leverage ratios, aiming for a net debt to EBITDA ratio below 6 times [28][29] Question: Multifamily segment performance and expectations - Management expects stability to improve as supply is absorbed and expenses normalize, with recent leasing success noted in San Diego [34][38] Question: Active tenant industries in the office market - Management highlighted a strong interest from AI-driven companies and law firms, indicating a flight to quality in leasing trends [40][41]

Financial Data and Key Metrics Changes - For Q3 2025, funds from operations (FFO) were $0.49 per diluted share, slightly above internal projections, with total revenue at $110 million [3][14] - Same-store cash NOI decreased by 0.8% compared to Q3 2024, with specific declines in retail and multifamily sectors [16][20] - Net income attributable to common stockholders was $0.07 per diluted share, reflecting stable results with modest variability by segment [14][15] Business Line Data and Key Metrics Changes - The office portfolio ended the quarter 82% leased, with same-store office NOI increasing by 3.6% compared to Q3 2024 [4][16] - Retail portfolio was 98% leased, with same-store retail NOI declining by 2.6% due to credit-related rent losses [8][16] - Multifamily performance showed an 8.3% decline in same-store NOI, impacted by supply headwinds and higher concessions [10][16] Market Data and Key Metrics Changes - The broader economic backdrop remains mixed, with interest rates stabilizing and inflation moderating but still above long-term targets [4] - Retail availability is near record lows nationally, with asking rents continuing to rise [8] - In Hawaii, tourism has been affected by economic uncertainty, with arrivals below prior year levels, impacting hotel performance [11][12] Company Strategy and Development Direction - The company focuses on owning irreplaceable coastal assets and maintaining a strong balance sheet, emphasizing a disciplined approach to capital allocation [3][4] - There is a commitment to converting leasing momentum into signed leases and sustaining positive leasing spreads across office and retail sectors [12][20] - The company aims to reduce leverage towards a long-term target of 5.5 times net debt to EBITDA [19][30] Management's Comments on Operating Environment and Future Outlook - Management views current macroeconomic pressures as near-term and not reflective of long-term fundamentals, particularly in the hotel sector [17][19] - There is optimism regarding leasing activity, with expectations for improved stability in the multifamily segment as supply is absorbed [38][39] - The company anticipates sustained demand for Q4, particularly in the hospitality sector, as outbound travel from Japan is recovering [18][19] Other Important Information - The board approved a quarterly dividend of $0.34 per share for Q4, payable on December 18 [13] - Total liquidity at the end of Q3 was approximately $539 million, with a net debt to EBITDA ratio of 6.7 times [19] Q&A Session Summary Question: Update on leasing pipeline for La Jolla Commons Tower 3 and One Beach Street - Management noted increased activity and momentum in leasing, with specific leases signed and in documentation [24][25] Question: Known move-outs for 2026 - Approximately 180,000 square feet of potential move-outs are anticipated, but strong leasing activity is expected to offset this [28][29] Question: Current leverage profile and plans to reduce it - The company has a plan to reduce leverage through leasing up key properties, aiming to return to below 6 times net debt to EBITDA [30] Question: Multifamily segment outlook - Management expressed optimism about the San Diego multifamily market, noting recent leasing successes and expectations for improved stability [34][38] Question: Active tenant industries in the market - The office leasing activity is primarily driven by AI and technology firms, with a broad base of quality tenants across various sectors [40][41]

Core Insights - American Assets Trust (AAT) reported quarterly funds from operations (FFO) of $0.49 per share, matching the Zacks Consensus Estimate, but down from $0.71 per share a year ago [1] - The company posted revenues of $109.58 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.14% and down from $122.81 million year-over-year [2] - AAT shares have declined approximately 23.5% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Financial Performance - AAT has surpassed consensus FFO estimates three times over the last four quarters [2] - The current consensus FFO estimate for the upcoming quarter is $0.49 on revenues of $109.13 million, and for the current fiscal year, it is $1.99 on revenues of $435.29 million [7] Market Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Industry Rank places the REIT and Equity Trust - Retail sector in the top 38% of over 250 Zacks industries, indicating a favorable outlook [8] - The estimate revisions trend for AAT was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6]

Financial Performance - Total revenue for Q3 2025 was $109.578 million, a decrease of 10.7% from $122.810 million in Q3 2024[14] - Net income attributable to American Assets Trust, Inc. stockholders was $4.509 million, down 72.9% from $16.657 million in the same quarter last year[14] - Funds from Operations (FFO) for Q3 2025 were $37.754 million, a decline of 30.9% compared to $54.655 million in Q3 2024[15] - FFO per diluted share for Q3 2025 was $0.49, down from $0.71 in Q3 2024, representing a decrease of 30.4%[15] - The company reported a net income of $70,977,000 for the nine months ended September 30, 2025, compared to $80,186,000 for the same period in 2024, a decrease of 13.5%[23] - Net income for Q3 2025 was $5,921 million, a decrease of 72.2% compared to $21,318 million in Q3 2024[130] - EBITDA for Q3 2025 was $56,781 million, down 20.5% from $71,339 million in Q3 2024[130] - Total NOI for Q3 2025 was $66,281 million, a decline of 17.5% from $80,405 million in Q3 2024[134] - Cash NOI for Q3 2025 was $64,319 million, a decrease of 4.1% compared to $67,423 million in Q3 2024[135] - Operating income for Q3 2025 was $24,767 million, down 34.5% from $37,808 million in Q3 2024[134] Assets and Liabilities - Total assets as of September 30, 2025, were $2.942 billion, a decrease from $3.273 billion at the end of 2024[13] - Cash and cash equivalents decreased to $138.714 million from $425.659 million at the end of 2024, a decline of 67.4%[13] - Total liabilities decreased to $1.828 billion from $2.149 billion at the end of 2024, a reduction of 14.9%[13] - As of September 30, 2025, total outstanding debt was $1,700,000,000, with a weighted average interest rate of 4.46%[60] - The company’s equity market capitalization was $1,571,447,000, leading to a total market capitalization of $3,271,447,000[68] - The total debt to total capitalization ratio stood at 52.0%, while the total debt to total enterprise value ratio was 54.3%[68] - The total unencumbered assets grossed $3,652,649,000, providing a strong asset base relative to unsecured debt[68] Cash Flow and Dividends - The company declared dividends of $26.294 million in Q3 2025, compared to $25.822 million in Q3 2024, an increase of 1.8%[15] - Funds Available for Distribution (FAD) for Q3 2025 was $25,960,000, down from $34,576,000 in Q3 2024, a decrease of 25.1%[17] - Total Cash NOI for the nine months ended September 30, 2025, was $197,452, a decrease of 2.83% compared to $203,129 for the same period in 2024[138] - Interest expense for Q3 2025 was $19,773 million, an increase of 8.5% from $18,229 million in Q3 2024[134] - General and administrative expenses for Q3 2025 were $9,500 million, an increase of 4.8% from $9,068 million in Q3 2024[134] Portfolio and Leasing - The portfolio consists of 4.3 million square feet of office space, contributing 64% to Net Operating Income (NOI)[6] - Same-store Net Operating Income (NOI) for Q3 2025 totaled $66,797,000, compared to $67,510,000 in Q3 2024, reflecting a slight decline of 1.1%[28] - Same-store Cash NOI for Q3 2025 was $64,959, a decrease of 0.84% from $65,510 in Q3 2024[138] - The company reported a total base rent of $91,607,000 for Q3 2025, with additional property-related income of $11,643,000[54] - The company signed 20 leases totaling 181,455 square feet with a contractual rent of $56.01 per square foot[93] - The total number of leases signed over the last 12 months for the retail portfolio was 86, with a total net rentable area of 580,524 square feet[96] - The total annualized base rent for Loma Palisades in Q3 2025 was $17,579,544, with a leasing percentage of 91.2%[101] - The average monthly base rent per leased unit for Pacific Ridge Apartments in Q3 2025 was $4,199, with an annualized base rent of $24,734,688[101] Market and Development - The company operates in high-barrier-to-entry markets, which are expected to maintain favorable supply/demand characteristics[5] - The company has a development pipeline that includes the Waikele Center in Honolulu, HI, with an estimated rentable area of 120,000 square feet[75] - The company anticipates continued market expansion with new leases expected to commence in the upcoming quarters, enhancing overall portfolio performance[92] Tenant Information - Top 10 office tenants occupy a total of 1,338,154 square feet, representing 31.2% of total office space[117] - Annualized base rent from top 10 office tenants amounts to $92,270,859, accounting for 46.5% of total office rent[117] - Google LLC is the largest tenant with 253,198 square feet leased, contributing $27,659,898 in annualized base rent[117] - Top 10 retail tenants occupy 679,727 square feet, which is 28.3% of total retail space[122] - Annualized base rent from top 10 retail tenants totals $17,744,330, representing 25.3% of total retail rent[122]

Core Insights - American Assets Trust, Inc. reported a net income of $4.5 million for Q3 2025, down from $16.7 million in Q3 2024, and a net income of $52.5 million for the nine months ended September 30, 2025, compared to $47.8 million for the same period in 2024 [4][5][26] - Funds from Operations (FFO) per diluted share were $0.49 for Q3 2025 and $1.53 for the nine months ended September 30, 2025, compared to $0.71 and $2.03 for the same periods in 2024 [5][27] - The company increased its 2025 FFO per diluted share guidance to a range of $1.93 to $2.01, reflecting a $0.02 increase over prior guidance [5][18] Financial Results - Total revenue for Q3 2025 was $109.6 million, down from $122.8 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $326.1 million, compared to $344.4 million in the same period in 2024 [26] - The company recognized a $44.5 million gain on the sale of Del Monte Center, contributing to the increase in net income for the nine months ended September 30, 2025 [4][6] - Same-store cash Net Operating Income (NOI) decreased by 0.8% for Q3 2025 but increased by 0.6% for the nine months ended September 30, 2025, compared to the same periods in 2024 [5][13] Leasing Activity - The company leased 181,000 square feet of office space and 125,000 square feet of retail space during Q3 2025, with average straight-line and cash-basis contractual rent increases of 19% and 9% for office, and 21% and 4% for retail, respectively [5][9] - The total portfolio leased status as of September 30, 2025, was 81.9% for office, 97.9% for retail, and 89.7% for multifamily properties [9][10] Balance Sheet and Liquidity - As of September 30, 2025, the company had gross real estate assets of $3.7 billion and liquidity of $538.7 million, consisting of $138.7 million in cash and cash equivalents and $400 million available on its line of credit [16] - The company had only 1 out of 31 assets encumbered by a mortgage as of the reporting date [16] Dividends - The company declared dividends of $0.340 per share for both Q3 and Q4 2025, with the Q4 dividend scheduled to be paid on December 18, 2025 [17]