American Assets Trust(AAT) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $110.086 million, a decrease of 3.2% from $113.460 million in Q4 2024[15] - Net income attributable to American Assets Trust, Inc. stockholders for Q4 2025 was $3.148 million, down 64.9% from $8.977 million in Q4 2024[15] - Funds from Operations (FFO) for Q4 2025 was $36.027 million, a decrease of 14.5% compared to $42.110 million in Q4 2024[16] - FFO per diluted share for Q4 2025 was $0.47, down from $0.55 in Q4 2024[16] - Total assets as of December 31, 2025, were $2.921 billion, a decrease from $3.273 billion as of December 31, 2024[14] - Total liabilities decreased to $1.830 billion in Q4 2025 from $2.149 billion in Q4 2024[14] - Cash and cash equivalents decreased significantly to $129.362 million from $425.659 million year-over-year[14] - The company reported a net income of $4,221,000 for Q4 2025, down from $11,584,000 in Q4 2024[126] - EBITDA for the year ended December 31, 2025, was $228,768,000, compared to $264,662,000 for the previous year[126] - For the year ended December 31, 2025, net income was $71,370, a slight decrease of 2.0% from $72,819 in 2024[130] Funds from Operations and Cash Flow - Funds from Operations (FFO) for Q4 2025 decreased to $36,243,000 from $42,288,000 in Q4 2024, representing a decline of 14.4%[18] - Funds Available for Distribution (FAD) for Q4 2025 was $23,841,000, down from $26,795,000 in Q4 2024, a decrease of 7.2%[18] - Total Cash NOI for Q4 2025 was $65,334, down 4.8% from $68,669 in Q4 2024[132] - Same-Store Cash NOI for Q4 2025 was $66,104, slightly up from $66,083 in Q4 2024, indicating stable performance[134] Real Estate Portfolio - The portfolio consists of 6.7 million square feet, with 64% in office and 36% in retail[6] - The company operates in high-barrier-to-entry markets, which are expected to have favorable supply/demand characteristics[5] - Same-store Net Operating Income (NOI) for Q4 2025 was $65,992,000, compared to $66,083,000 in Q4 2024, showing a slight increase of 0.5%[36] - The company reported a total of $429,627,000 in same-store real estate rental revenue for the year ended December 31, 2025[31] Capital Expenditures and Debt - Capital expenditures for Q4 2025 totaled $15,792,000, compared to $17,439,000 in Q4 2024, reflecting a decrease of 9.4%[18] - The company reported outstanding debt of $1,625,000,000 as of December 31, 2025, with a weighted average interest rate of 4.46%[57] - The total debt amounts to $1.7 billion, representing 53.7% of total capitalization and 55.9% of total enterprise value[65] - The company has a market capitalization of approximately $1.468 billion, with a total enterprise value of $3.039 billion after accounting for cash on hand[65] - The weighted average fixed interest rate for the company's debt is 4.5%, with a weighted average term to maturity of 5.1 years[68] Leasing Activity - In Q4 2025, the total number of comparable leases signed was 13, with a net rentable area of 135,024 square feet and a contractual rent per square foot of $74.14, reflecting an annual rent change of $621,549 or 6.6%[88] - The total number of leases signed for the entire year was 46, with a total net rentable area of 370,619 square feet and an average contractual rent per square foot of $58.51, showing an annual change in rent of $1,297,712 or 6.4%[88] - The total number of retail leases signed in Q4 2025 was 12, with a net rentable area of 29,004 square feet and a contractual rent per square foot of $56.85, indicating an annual change of $5,658 or 0.3%[91] - The total number of renewal leases for retail in Q4 2025 was 11, with a net rentable area of 26,286 square feet and a contractual rent per square foot of $59.81, resulting in an annual change of $(34,842) or (2.2%) compared to prior rent[91] Market Expansion and Development - The company plans to continue its market expansion and repositioning initiatives, particularly in the office and retail segments[55] - The company is exploring multiple development opportunities, including high-density mixed-use urban villages in Portland, OR, with potential for over 3 million square feet of development[72] - The company is developing a 120,000 square foot retail building at Waikele Center in Honolulu, HI, as part of its development pipeline[72] Tenant Information - The top ten office tenants account for 31.4% of total rentable square feet, contributing $92,638,487 in annualized base rent[113] - The largest tenant, Google LLC, occupies 253,198 sq. ft. and contributes $27,659,898 in annualized base rent[113] - The total area occupied by the top 10 retail tenants is 679,727 square feet, representing 28.3% of total retail space[118] - The annualized base rent from the top 10 retail tenants amounts to $17,744,330, which is 25.3% of total retail rent[118]