American Assets Trust(AAT) - 2025 Q3 - Quarterly Results

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]