American Assets Trust(US:AAT)2025-05-02 18:18Financial Performance - Total revenue for Q1 2025 was $108.607 million, a decrease of 1.96% from $110.695 million in Q1 2024[23] - Operating income increased significantly to $71.972 million, compared to $30.549 million in the same period last year, reflecting a growth of 135.5%[23] - Net income attributable to American Assets Trust, Inc. stockholders was $42.535 million, up from $19.260 million in Q1 2024, representing a year-over-year increase of 109.5%[23] - Earnings per common share (basic and diluted) for Q1 2025 was $0.70, compared to $0.32 in Q1 2024, marking a 118.75% increase[23] - Net income for Q1 2025 was $54,107,000, a significant increase of 119% compared to $24,623,000 in Q1 2024[31] - Total revenue decreased to $108,607,000 in Q1 2025, down 1.9% from $110,695,000 in Q1 2024, primarily due to a decline in rental income[31] - Operating income rose to $71,972,000 in Q1 2025, compared to $30,549,000 in Q1 2024, reflecting a substantial increase of 135%[31] - Net income for the three months ended March 31, 2025, was $54.1 million, a significant increase from $24.6 million in the same period of 2024, representing a growth of 119%[38] - The company declared a dividend of $0.340 per common share, slightly up from $0.335 in the previous year[23] - Distributions per unit increased slightly to $0.340 in Q1 2025 from $0.335 in Q1 2024[31] Assets and Liabilities - Total assets decreased to $2.968 billion as of March 31, 2025, down from $3.273 billion at the end of 2024, a decline of 9.3%[21] - Total liabilities decreased to $1.815 billion from $2.149 billion, a reduction of 15.5%[21] - Cash and cash equivalents significantly decreased to $143.915 million from $425.659 million, a decline of 66.1%[21] - Total assets decreased to $2,967,788,000 as of March 31, 2025, from $3,273,365,000 at the end of 2024[29] - Total liabilities decreased to $1,815,428,000 as of March 31, 2025, down from $2,149,044,000 at the end of 2024[29] - Cash and cash equivalents at the end of the period were $143.9 million, up from $98.6 million at the end of Q1 2024, marking a 46% increase[38] Cash Flow and Financing Activities - Net cash provided by operating activities was $36,869,000 in Q1 2025, down from $54,778,000 in Q1 2024[37] - The company reported a net cash used in financing activities of $351.3 million in Q1 2025, compared to $25.8 million in Q1 2024, indicating a substantial increase in financing outflows[38] - Cash paid for interest, net of amounts capitalized, rose to $34.0 million in Q1 2025 compared to $21.2 million in Q1 2024, an increase of 60%[50] - The company recorded an income tax expense of $0.4 million for the three months ended March 31, 2025, compared to $0.3 million for the same period in 2024[134] Real Estate and Property Management - Gain on sale of real estate was $44.476 million in Q1 2025, compared to no gain in Q1 2024, indicating successful asset management strategies[23] - The company owned or had a controlling interest in 31 properties as of March 31, 2025, maintaining a diversified portfolio across office, retail, multifamily, and mixed-use segments[42] - The company reported a gain on the sale of real estate amounting to $44,476 million in Q1 2025, with no comparable gain in Q1 2024[166] - The company has a proactive leasing and capital improvement program to enhance property attractiveness[145] - The company operates in four reportable segments: retail real estate, office real estate, multifamily real estate, and mixed-use real estate[160] Rental Income and Expenses - Total rental income was $102.951 million, a decrease of 2.0% from $105.021 million in the same period of 2024[153] - Total rental expenses increased to $30.300 million for the three months ended March 31, 2025, compared to $29.841 million in 2024, reflecting a rise of 1.5%[154] - Rental expenses for total property in Q1 2025 were $10,874 million, an increase of 7.3% from $10,135 million in Q1 2024[166] - Office tenants accounted for 46.8% of total revenues, while retail tenants accounted for 22.7%, indicating a significant concentration in these sectors[141] - Minimum future rentals from noncancelable operating leases total $1.155 billion, with $184.004 million expected in 2025[146] Debt and Interest Rates - Total interest costs incurred increased to $20.2 million in Q1 2025 from $18.3 million in Q1 2024, reflecting a rise of 10%[50] - The company had $1.6 billion of fixed-rate debt outstanding as of March 31, 2025, with an estimated fair value of $1.5 billion[260] - Variable rate debt outstanding as of March 31, 2025, was $100 million, all subject to interest rate swaps, effectively hedging against interest rate fluctuations[261] - The company estimates that cash flow hedges in place will reduce interest expense by approximately $1.0 million over the next twelve months[79] - The effective interest rate on the 6.150% Senior Notes is approximately 6.209% per annum after accounting for treasury lock contracts and debt discounts[94] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $17,230 million, an increase of 29.3% from $13,292 million in Q1 2024[169] - The company acquired Genesee Park, a 192-unit apartment community, for $67.9 million on February 28, 2025[64] - For the period of acquisition through March 31, 2025, Genesee Park generated revenues of $359,000 and incurred operating expenses of $518,000, resulting in an operating loss of $159,000[65] Compliance and Agreements - The Operating Partnership was in compliance with all financial covenants related to the 3.375% and 6.150% Senior Notes as of March 31, 2025[95] - The Operating Partnership entered into an interest rate swap agreement to fix the interest rate on Term Loan A at approximately 2.70% through January 5, 2027[109] - As of March 31, 2025, the Operating Partnership was in compliance with all covenants of the Third Amended and Restated Credit Facility[111]