American Assets Trust(AAT) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $108.607 million, a decrease of 1% from $110.695 million in Q1 2024[13] - Net income attributable to American Assets Trust, Inc. stockholders was $42.535 million, up 109% from $19.260 million in the same period last year[13] - Funds from Operations (FFO) for Q1 2025 were $40.125 million, down 27% from $54.840 million in Q1 2024[14] - FFO per diluted share was $0.52, a decrease from $0.71 in Q1 2024[14] - EBITDA for Q1 2025 was $57,990, 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, slightly down from $69,608 in Q1 2024, a decrease of about 3.7%[124] - Cash NOI for Q1 2025 was $66,962, compared to $66,479 in Q1 2024, indicating a modest increase of 0.7%[126] Assets and Liabilities - Cash and cash equivalents decreased to $143.915 million from $425.659 million at the end of Q4 2024[12] - Total assets as of March 31, 2025, were $2.968 billion, down from $3.273 billion at the end of 2024[12] - Total liabilities decreased to $1.815 billion from $2.149 billion at the end of 2024[12] - The company reported total outstanding debt of $1,700,000,000 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, 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 $64,645,000 in the prior year[26] - The office segment reported a same-store cash NOI of $35,318,000, up 5.4% from $33,515,000 in the previous year[26] - Retail same-store cash NOI increased by 5.4% to $16,383,000 from $15,551,000[26] - Mixed-use segment experienced a decline in same-store cash NOI by 11.6%, down to $5,363,000 from $6,066,000[26] - The total real estate expenses for the same period amounted to $41,305,000, with same-store expenses at $39,582,000[20] - The net operating income (NOI) for the total portfolio was $67,302,000, with same-store NOI at $66,930,000[20] Dividends and Capital Expenditures - Dividends declared and paid in Q1 2025 were $26.288 million, compared to $25.821 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 $14,311,000 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] - 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 $175 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]