American Assets Trust(US:AAT)2025-10-31 19:04Financial Performance - Total revenue for Q3 2025 was $109.578 million, a decrease of 10.7% compared to $122.810 million in Q3 2024[23] - Net income attributable to American Assets Trust, Inc. stockholders for Q3 2025 was $4.509 million, down 73.0% from $16.657 million in Q3 2024[23] - Earnings per common share (basic) for Q3 2025 was $0.07, a decrease of 75.0% from $0.28 in Q3 2024[23] - Rental income for Q3 2025 was $102.222 million, a decline of 3.1% from $105.549 million in Q3 2024[23] - Comprehensive income for the three months ended September 30, 2025, was $5,037,000, a decrease from $16,142,000 in 2024[34] - Net income for the nine months ended September 30, 2025, was $67.149 million, an increase from $61.235 million in 2024, representing a growth of approximately 3.5%[40] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $52.5 million, an increase from $47.8 million in 2024[132] - The total segments' profit for the nine months ended September 30, 2025, was $201.193 million, down 8.8% from $220.555 million in 2024[170] Assets and Liabilities - Total assets as of September 30, 2025, were $2.942 billion, down from $3.273 billion as of December 31, 2024[21] - Total liabilities decreased to $1.828 billion as of September 30, 2025, from $2.149 billion at the end of 2024[21] - The total equity of American Assets Trust, Inc. as of September 30, 2025, was $1.114 billion, down from $1.124 billion at the end of 2024[21] - Cash and cash equivalents decreased significantly to $138.714 million from $425.659 million at the end of 2024[21] - Total liabilities decreased to $1,827,664,000 as of September 30, 2025, from $2,149,044,000 as of December 31, 2024, a reduction of approximately 15%[30] - Cash and cash equivalents at the end of the period were $138.714 million, a decrease from $533.004 million at the end of the same period in 2024[40] Dividends and Distributions - The company declared dividends of $0.340 per common share for Q3 2025, slightly up from $0.335 in Q3 2024[23] - The company declared and paid dividends totaling $78,876,000 for the nine months ended September 30, 2025, compared to $77,466,000 for the same period in 2024, reflecting a slight increase[28] - The company declared dividends of $0.340 per share for each quarter in the first three quarters of 2025[125] - Distributions per unit increased to $0.340 for the three months ended September 30, 2025, compared to $0.335 in 2024[34] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $126,545,000, down from $166,464,000 in the same period of 2024, a decline of approximately 24%[28] - The company reported a net decrease in cash and cash equivalents of $286.945 million for the nine months ended September 30, 2025, compared to an increase of $450.116 million in 2024[40] - Cash paid for interest, net of amounts capitalized, was $72.664 million in 2025, up from $54.047 million in 2024, indicating a significant increase of about 34.5%[52] Real Estate Transactions - The company reported a gain on the sale of real estate of $44.476 million for the nine months ended September 30, 2025, compared to no gains reported in the same period of 2024[28] - The company recorded a gain of approximately $44.5 million from the sale of Del Monte Center, with net proceeds of about $117.8 million after closing costs[69] - The company acquired Genesee Park, a 192-unit apartment community, for $67.9 million on February 28, 2025[67] - For the period of acquisition through September 30, 2025, Genesee Park generated revenues of $2,695,000 but incurred operating expenses of $3,669,000, resulting in an operating loss of $974,000[68] Debt and Financing - The company had $1.6 billion of fixed-rate debt outstanding as of September 30, 2025, with an estimated fair value of $1.5 billion[292] - The Operating Partnership repaid the entirety of Term Loan B and Term Loan C on January 2, 2025, which had principal balances of $150,000,000 and $75,000,000 respectively[93] - The 3.375% Senior Notes issued on January 26, 2021, totaled $500,000,000 and are set to mature on February 1, 2031, with a yield to maturity of 3.502%[96] - The 6.150% Senior Notes issued on September 17, 2024, totaled $525,000,000 and are set to mature on October 1, 2034, with an effective interest rate of 6.209%[97][98] - As of September 30, 2025, total unsecured notes payable amounted to $1,612,228,000, a decrease from $1,935,756,000 as of December 31, 2024, representing a reduction of approximately 16.7%[92] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $84,811,000, slightly down from $85,002,000 in 2024[34] - General and administrative expenses for the nine months ended September 30, 2025, were $27,662,000, an increase from $26,647,000 in 2024[34] - Total rental expenses for the nine months ended September 30, 2025, were $91,746,000, compared to $90,707,000 for the same period in 2024[156] Rental Income and Future Rentals - For the nine months ended September 30, 2025, total property revenue was $153.992 million, a decrease of 6.1% from $164.050 million in the same period of 2024[168] - Minimum future rentals from noncancelable operating leases total $1,148,463,000, with the largest portion in 2026 at $252,343,000[148] - Rental revenue from office properties for the three months ended September 30, 2025, was $49,085,000, slightly up from $48,310,000 in 2024[155] Other Income and Expenses - Other income for the nine months ended September 30, 2025, was $2,769,000, significantly lower than $12,857,000 in 2024, which included a $10 million settlement[157] - The provision for uncollectible rental income was $389,000 in 2025, down from $1.095 million in 2024, indicating improved collection performance[40] Management and Agreements - The management fee for the retail portion of Waikiki Beach Walk is 3.0% of net revenues, while for the hotel portion, it is 6.0% of gross operating profit and 3.0% of gross revenues, capped at 3.5% of gross revenues for the fiscal year[140] - WBW Hotel Lessee LLC has a franchise license agreement with Embassy Suites Franchise LLC for 20 years, requiring a monthly royalty fee of 5.0% of gross room revenue and a program fee of 4.0% of gross room revenue[141] - The company has a management agreement with Outrigger for Waikele Center and Shops at Kalakaua, with a fixed management fee of $12,000 per month[140]