American Assets Trust(AAT) - 2024 Q4 - Annual Results

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]