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American Assets Trust(AAT) - 2025 Q1 - Quarterly Results
AATAmerican Assets Trust(AAT)2025-04-29 20:21
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Financial Performance - Total revenue for Q1 2025 was 108.607million,adecreaseof1108.607 million, a decrease of 1% from 110.695 million in Q1 2024[13] - Net income attributable to American Assets Trust, Inc. stockholders was 42.535million,up10942.535 million, up 109% from 19.260 million in the same period last year[13] - Funds from Operations (FFO) for Q1 2025 were 40.125million,down2740.125 million, down 27% from 54.840 million in Q1 2024[14] - FFO per diluted share was 0.52,adecreasefrom0.52, a decrease from 0.71 in Q1 2024[14] - EBITDA for Q1 2025 was 57,990,downfrom57,990, down from 70,766 in Q1 2024, reflecting a decrease of approximately 18%[120] - Total Net Operating Income (NOI) for Q1 2025 was 67,302,slightlydownfrom67,302, slightly down from 69,608 in Q1 2024, a decrease of about 3.7%[124] - Cash NOI for Q1 2025 was 66,962,comparedto66,962, compared to 66,479 in Q1 2024, indicating a modest increase of 0.7%[126] Assets and Liabilities - Cash and cash equivalents decreased to 143.915millionfrom143.915 million from 425.659 million at the end of Q4 2024[12] - Total assets as of March 31, 2025, were 2.968billion,downfrom2.968 billion, down from 3.273 billion at the end of 2024[12] - Total liabilities decreased to 1.815billionfrom1.815 billion from 2.149 billion at the end of 2024[12] - The company reported total outstanding debt of 1,700,000,000asofMarch31,2025,withatotaldebttototalcapitalizationratioof52.21,700,000,000 as of March 31, 2025, with a total debt to total capitalization ratio of 52.2%[58] - The company’s total unencumbered assets grossed 3,741,620,000, providing a cushion against debt obligations[58] Real Estate Performance - The portfolio consists of 4.1 million square feet of office space, contributing 63% to Net Operating Income (NOI), and 2.4 million square feet of retail space, contributing 37% to NOI[5] - Total real estate rental revenue for the three months ended March 31, 2025, was 108,607,000,anincreasefromthepreviousperiod[20]−Same−storecashNOIforthesameperiodwas108,607,000, an increase from the previous period[20] - Same-store cash NOI for the same period was 66,626,000, reflecting a 3.1% increase compared to 64,645,000intheprioryear[26]−Theofficesegmentreportedasame−storecashNOIof64,645,000 in the prior year[26] - The office segment reported a same-store cash NOI of 35,318,000, up 5.4% from 33,515,000inthepreviousyear[26]−Retailsame−storecashNOIincreasedby5.433,515,000 in the previous year[26] - Retail same-store cash NOI increased by 5.4% to 16,383,000 from 15,551,000[26]−Mixed−usesegmentexperiencedadeclineinsame−storecashNOIby11.615,551,000[26] - Mixed-use segment experienced a decline in same-store cash NOI by 11.6%, down to 5,363,000 from 6,066,000[26]−Thetotalrealestateexpensesforthesameperiodamountedto6,066,000[26] - The total real estate expenses for the same period amounted to 41,305,000, with same-store expenses at 39,582,000[20]−Thenetoperatingincome(NOI)forthetotalportfoliowas39,582,000[20] - The net operating income (NOI) for the total portfolio was 67,302,000, with same-store NOI at 66,930,000[20]DividendsandCapitalExpenditures−DividendsdeclaredandpaidinQ12025were66,930,000[20] Dividends and Capital Expenditures - Dividends declared and paid in Q1 2025 were 26.288 million, compared to 25.821millioninQ12024[14]−Totalcapitalexpendituresforthefirstquarterof2025amountedto25.821 million in Q1 2024[14] - Total capital expenditures for the first quarter of 2025 amounted to 17,230,000, with the office portfolio accounting for 14,311,000ofthistotal[49]TenantandLeaseInformation−Thecompanyhas4,077,376squarefeetofofficespaceexpiring,representing61.914,311,000 of this total[49] Tenant and Lease Information - The company has 4,077,376 square feet of office space expiring, representing 61.9% of total base rent at an average of 44.53 per square foot[103] - The company has signed leases not commenced totaling 86,998 square feet, which is 2.1% of total space[104] - The total number of leases signed in the first quarter of 2025 was 19, covering 139,616 square feet, with a weighted average lease term of 8.2 months[86] - The total annualized base rent for signed but not commenced leases as of March 31, 2025, is projected to be 4,639,340[84]−TheaveragecontractualrentpersquarefootfornewleasesinQ42024was4,639,340[84] - The average contractual rent per square foot for new leases in Q4 2024 was 129.08, with a significant annual change of 10.6%[90] Development Projects - The La Jolla Commons project in San Diego has an estimated stabilized yield of 6.5% - 7.5% with a total estimated investment of 175millionand213,000squarefeet[67]−Thecompanyisdevelopingmultipleretailandmultifamilyprojects,includingtheWaikeleCenterinHonoluluwith120,000squarefeet[68]−Thecompanyhasincurred175 million and 213,000 square feet[67] - The company is developing multiple retail and multifamily projects, including the Waikele Center in Honolulu with 120,000 square feet[68] - The company has incurred 130.1 million in costs to date for the La Jolla Commons project, with stabilization expected by 2026/2027[67] Market Conditions and Future Outlook - The company anticipates continued market expansion with a focus on increasing occupancy rates and optimizing rental income from expiring leases[102] - The company is exploring various development opportunities that may be subject to market conditions and approvals[66]