Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2025 Or UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Washington, D.C. 20549 Commission file number: 001-41617 Nextracker Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer in ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-13908 Invesco Ltd. (Exact Name of Registrant as Specified in Its Charter) Bermuda 98-0557567 (State or Other Ju ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents AirSculpt Technologies' unaudited condensed consolidated financial statements as of June 30, 2025, reflecting decreased revenue and net losses compared to prior periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of $198.4 million, a decrease from $210.0 million at December 31, 2024, with total liabilities decreasing to $107.2 million and total stockholders' equity increasing to $91.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $16,405 | $17,117 | | **Total Assets** | **$198,367** | **$209,996** | | **Total Current Liabilities** | $25,829 | $28,609 | | **Total Liabilities** | **$107,210** | **$130,706** | | **Total Stockholders' Equity** | **$91,157** | **$79,290** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, the company reported a net loss of $0.6 million on revenue of $44.0 million, while for H1 2025, the net loss was $3.4 million on revenue of $83.4 million, a significant shift from prior-year net income Q2 Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $44,012 | $51,004 | | Income/(loss) from operations | $786 | $(4,981) | | Net (loss)/income | $(591) | $(3,206) | | Diluted (Loss)/income per share | $(0.01) | $(0.06) | Six-Month Operating Results (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $83,383 | $98,624 | | (Loss)/income from operations | $(803) | $6,031 | | Net (loss)/income | $(3,438) | $2,823 | | Diluted (Loss)/income per share | $(0.06) | $0.05 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for H1 2025 was $5.9 million, with net cash used in investing activities decreasing to $2.2 million and financing activities reflecting debt payments offset by public offering proceeds Six-Month Cash Flow Summary (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,852 | $6,807 | | Net cash used in investing activities | $(2,166) | $(5,580) | | Net cash used in financing activities | $(3,732) | $(1,623) | | **Net decrease in cash** | **$(46)** | **$(396)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, a March 2025 credit agreement amendment, a June 2025 equity offering raising **$13.8 million** in net proceeds, and a **$10.4 million** stock compensation reversal in Q1 2024 - In March 2025, the Company amended its Credit Agreement to modify financial covenants, including the Consolidated Fixed Charge Coverage Ratio and Consolidated Leverage Ratio, and added new liquidity requirements[62](index=62&type=chunk)[64](index=64&type=chunk) - On June 11, 2025, the Company closed an underwritten public offering, receiving net proceeds of approximately **$13.8 million** from the sale of **3,634,000** shares. A portion of the proceeds was used to make a **$10.0 million** principal payment on its term loan[79](index=79&type=chunk)[80](index=80&type=chunk)[66](index=66&type=chunk) - In Q1 2024, the Company recorded a **$10.4 million** cumulative reversal of stock compensation expense related to performance-based stock units (PSUs) after determining the revenue target was improbable to achieve[76](index=76&type=chunk)[19](index=19&type=chunk)[95](index=95&type=chunk) - Advertising expenses decreased to **$7.3 million** in Q2 2025 from **$11.0 million** in Q2 2024, and to **$14.5 million** for H1 2025 from **$19.4 million** in H1 2024[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a revenue decline of **13.7%** for Q2 and **15.5%** for the first six months of 2025, attributed to broader aesthetics industry weakness, and outlines strategies including marketing optimization, sales process improvements, and a **$3.0 million** annual cost reduction program [Overview & Strategic Initiatives](index=27&type=section&id=Overview%20%26%20Strategic%20Initiatives) The company experienced a revenue decline of approximately **14%** in Q2 2025 and **15%** in H1 2025 year-over-year, prompting strategic initiatives focused on marketing, sales, customer experience, financing, and new product innovation, alongside a **$3.0 million** cost reduction program and a pause on new center openings - The company has launched several strategic priorities to stabilize revenue growth, including: - Optimizing marketing investment with a returns-based approach - Improving go-to-market and sales strategies under a new Chief Sales Officer - Enhancing the customer experience - Expanding consumer financing offerings - Focusing on new product innovation, such as a standalone skin tightening procedure[102](index=102&type=chunk)[104](index=104&type=chunk) - A cost reduction program has been implemented to eliminate approximately **$3.0 million** in annual overhead and contracted expenses, and the company has paused de novo center and new procedure room openings[102](index=102&type=chunk) [Key Operational and Business Metrics](index=27&type=section&id=Key%20Operational%20and%20Business%20Metrics) Total cases decreased by **14.1%** in Q2 2025 and **15.9%** in H1 2025, with same-center cases declining more significantly by **22.0%** and **23.1%**, while revenue per case saw a slight increase and the company expanded to **32** facilities Total Case and Revenue Metrics | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cases | 3,392 | 3,949 | 6,468 | 7,695 | | Case growth | (14.1)% | N/A | (15.9)% | N/A | | Revenue per case | $12,975 | $12,916 | $12,892 | $12,817 | | Number of facilities | 32 | 27 | 32 | 27 | Same-Center Case Metrics | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cases | 3,079 | 3,949 | 5,916 | 7,695 | | Case growth | (22.0)% | N/A | (23.1)% | N/A | [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA for Q2 2025 was **$5.8 million** (**13.3%** margin), down from **$6.9 million** (**13.5%** margin) in Q2 2024, and for H1 2025, it was **$9.6 million** (**11.5%** margin), down from **$14.2 million** (**14.4%** margin) in H1 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (loss)/income | $(591) | $(3,206) | $(3,438) | $2,823 | | **Adjusted EBITDA** | **$5,835** | **$6,868** | **$9,590** | **$14,205** | | **Adjusted EBITDA Margin** | **13.3%** | **13.5%** | **11.5%** | **14.4%** | Adjusted Net Income Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (loss)/income | $(591) | $(3,206) | $(3,438) | $2,823 | | **Adjusted net income** | **$1,187** | **$5,140** | **$79** | **$7,020** | | **Adjusted net income per share (Diluted)** | **$0.02** | **$0.09** | **$0.00** | **$0.12** | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q2 2025 revenue decreased by **$7.0 million** (**13.7%**) due to lower case volume, while SG&A expenses decreased by **$11.6 million** (**33.9%**) primarily from reduced advertising, stock compensation, and severance costs, and cost of service as a percentage of revenue increased - Q2 2025 revenue decreased by **$7.0 million** (**13.7%**) YoY, attributed to weaker performance across the broader aesthetics industry[126](index=126&type=chunk) - Q2 2025 Selling, General and Administrative (SG&A) expenses decreased by **$11.6 million** (**33.9%**) YoY, driven by lower advertising costs (**$3.4M**), stock compensation (**$3.5M**), and severance costs (**$3.7M**)[128](index=128&type=chunk)[129](index=129&type=chunk) - H1 2025 revenue decreased by **$15.2 million** (**15.5%**) YoY, also attributed to weaker industry performance[135](index=135&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$8.2 million** in cash and cash equivalents and **$5.0 million** available on its revolving credit facility, bolstered by a June 2025 equity offering that raised **$13.8 million** in net proceeds, used partly for debt repayment, and a March 2025 credit agreement amendment - As of June 30, 2025, the company had **$8.2 million** in cash and cash equivalents and **$5.0 million** available under its revolving credit facility[146](index=146&type=chunk) - In June 2025, the company completed a follow-on equity offering, raising net proceeds of approximately **$13.8 million**, and used the proceeds to make a **$10.0 million** principal payment on its term loan[157](index=157&type=chunk)[166](index=166&type=chunk) - The company amended its credit agreement in March 2025, modifying financial covenants, increasing interest rate margins, and shortening the maturity date to May 11, 2027[164](index=164&type=chunk)[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a smaller reporting company and is not required to provide the information for this item - The company is exempt from this disclosure requirement as it qualifies as a smaller reporting company[170](index=170&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[172](index=172&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[173](index=173&type=chunk) [PART II OTHER INFORMATION](index=44&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal actions, primarily related to medical malpractice claims, which are not expected to have a material adverse effect on its financial condition and are generally covered by insurance - The company faces routine legal actions, mainly medical malpractice claims, which are not expected to have a material adverse impact on its financial condition, results of operations, or cash flows[178](index=178&type=chunk) [Risk Factors](index=44&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[179](index=179&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - None reported for the period[180](index=180&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - No directors or officers adopted or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter[183](index=183&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications pursuant to Sarbanes-Oxley Act sections 302 and 906, and Inline XBRL data files - The report includes required certifications from the Principal Executive Officer and Principal Financial Officer, as well as Inline XBRL documents, as filed exhibits[185](index=185&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ___________ Commission File Number: 001-16503 WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) Ireland (Ju ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-36013 (American Homes 4 Rent) Commission File Number: 333-221878-02 (American Homes 4 Rent, L.P.) AMERICAN HOMES 4 RENT AMERICAN HOMES 4 RENT, L. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) Commission File Number: 1-13595 Mettler Toledo International Inc _______________________________________________________________________________________________________________________________________ (Exact name of registrant as specified in its charter) Delaware 13-3668641 (State or other jurisdiction of (I.R.S Employer Identification No.) incorporation or organization) 1900 Polaris Parkway Colum ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-27719 South Carolina 58-2459561 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 6 Verda ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _________________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from________________to Commission File Number: 1-09761 _________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2025 Maryland (Host Hotels & Resorts, Inc.) 53-0085950 Delaware (Host Hotels & Resorts, L.P.) 52-2095412 (Stat ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201%2E%20Financial%20Statements) The company presents unaudited consolidated financial statements for the REIT and its operating partnership for the period ended June 30, 2025 [Consolidated Financial Statements of American Assets Trust, Inc.](index=6&type=section&id=Consolidated%20Financial%20Statements%20of%20American%20Assets%20Trust%2C%20Inc%2E) Net income rose 53% due to a real estate sale, while total assets decreased to $2.96 billion following the sale and debt repayment Consolidated Balance Sheet Highlights (AAT, Inc.) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Real estate, net | $2,634,394 | $2,587,486 | +$46,908 | | Cash and cash equivalents | $143,736 | $425,659 | -$281,923 | | Total Assets | $2,955,676 | $3,273,365 | -$317,689 | | Total Liabilities | $1,821,831 | $2,149,044 | -$327,213 | | Total Equity | $1,133,845 | $1,124,321 | +$9,524 | Consolidated Income Statement Highlights (AAT, Inc.) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $107,933 | $110,890 | $216,540 | $221,585 | | Gain on sale of real estate | $0 | $0 | $44,476 | $0 | | Net Income | $7,121 | $15,294 | $61,228 | $39,917 | | Net Income Attributable to AAT, Inc. | $5,456 | $11,904 | $47,991 | $31,164 | | EPS, diluted | $0.09 | $0.20 | $0.79 | $0.52 | Consolidated Cash Flow Highlights - Six Months Ended June 30 (AAT, Inc.) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $86,040 | $114,060 | | Net cash provided by (used in) investing activities | $9,619 | ($30,424) | | Net cash used in financing activities | ($377,582) | ($51,644) | [Consolidated Financial Statements of American Assets Trust, L.P.](index=11&type=section&id=Consolidated%20Financial%20Statements%20of%20American%20Assets%20Trust%2C%20L%2EP%2E) The Operating Partnership's financials mirror the parent REIT, with the key distinction being the presentation of Partners' Capital - The L.P.'s balance sheet, income statement, and cash flow statement are **identical to AAT, Inc.'s on a consolidated basis**, as the L.P. holds substantially all the assets and debt of the company[32](index=32&type=chunk)[35](index=35&type=chunk)[42](index=42&type=chunk) Partners' Capital as of June 30, 2025 (AAT, L.P.) | Capital Component | Amount (in thousands) | | :--- | :--- | | Limited partners' capital | ($51,560) | | General partner's capital | $1,181,316 | | Accumulated other comprehensive income | $4,089 | | **Total capital** | **$1,133,845** | [Notes to Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key events include a $67.9 million acquisition, a $123.5 million property sale, and significant debt repayments of over $325 million - On February 28, 2025, the company acquired Genesee Park, a 192-unit apartment community in San Diego, for **$67.9 million**[70](index=70&type=chunk) - On February 25, 2025, the company sold Del Monte Center for **$123.5 million**, recognizing a gain of approximately **$44.5 million**[72](index=72&type=chunk) - During the first half of 2025, the company repaid the **$225 million** aggregate balance on Term Loan B and Term Loan C, and the **$100 million** balance on its Series C Senior Guaranteed Notes[95](index=95&type=chunk)[105](index=105&type=chunk)[117](index=117&type=chunk) - The company declared and paid dividends of **$0.340 per share/unit** in both Q1 and Q2 2025[126](index=126&type=chunk) Segment Profit (Six Months Ended June 30) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Office | $70,386 | $73,055 | -3.6% | | Retail | $34,317 | $36,380 | -5.7% | | Multifamily | $19,275 | $18,884 | +2.1% | | Mixed-Use | $10,934 | $11,831 | -7.6% | | **Total** | **$134,912** | **$140,150** | **-3.7%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased property revenue due to a property sale, solid liquidity despite debt repayments, and non-GAAP performance [Results of Operations](index=42&type=section&id=Results%20of%20Operations) H1 2025 net income rose 53% on a property sale gain, though total property revenue declined 2% due to the same sale and office weakness Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Property Revenues | $107,933 | $110,890 | -2.7% | | Total Property Operating Income | $67,610 | $70,542 | -4.2% | | Net Income | $7,121 | $15,294 | -53.5% | H1 2025 vs H1 2024 Performance | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Property Revenues | $216,540 | $221,585 | -2.3% | | Gain on sale of real estate | $44,476 | $0 | N/A | | Total Property Operating Income | $134,912 | $140,150 | -3.7% | | Net Income | $61,228 | $39,917 | +53.4% | - Same-store retail operating income **increased 5.5%** for the six months ended June 30, 2025, compared to 2024, while same-store office operating income **decreased 2.1%** over the same period[185](index=185&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - The decrease in H1 2025 other income was primarily due to a one-time **$10.0 million net settlement payment** received in H1 2024[159](index=159&type=chunk)[253](index=253&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity through operations and its credit facility, holding $143.7 million in cash as of June 30, 2025 - The company's (AAT, Inc.) primary source of funding for dividends is **distributions received from the Operating Partnership**[256](index=256&type=chunk) - The Operating Partnership held **$143.7 million in cash and cash equivalents** as of June 30, 2025[267](index=267&type=chunk) - Short-term liquidity requirements are expected to be met through **net cash from operations and borrowings under the credit facility**[268](index=268&type=chunk) - **No shares of common stock were sold** through the company's $250 million ATM equity program during the six months ended June 30, 2025[123](index=123&type=chunk)[265](index=265&type=chunk) [Non-GAAP Financial Measures](index=56&type=section&id=Non-GAAP%20Financial%20Measures) The company reports Q2 2025 FFO of $39.9 million, or $0.52 per diluted share, and provides reconciliations for NOI and FFO NOI to Net Income Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net operating income (NOI) | $67,610 | $134,912 | | General and administrative | ($8,850) | ($18,162) | | Depreciation and amortization | ($32,782) | ($63,276) | | Interest expense, net | ($19,784) | ($38,564) | | Gain on sale of real estate | $0 | $44,476 | | Other income, net | $927 | $1,842 | | **Net income** | **$7,121** | **$61,228** | Funds from Operations (FFO) Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net income | $7,121 | $61,228 | | Plus: Real estate depreciation and amortization | $32,782 | $63,276 | | Less: Gain on sale of real estate | $0 | ($44,476) | | **Funds from operations (FFO)** | **$39,903** | **$80,028** | | FFO per diluted share/unit | $0.52 | $1.04 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=58&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rates, with $1.6 billion in fixed-rate debt and $100 million in fully hedged variable-rate debt - As of June 30, 2025, the company had **$1.6 billion of fixed-rate debt** outstanding with an estimated fair value of $1.5 billion[288](index=288&type=chunk) - A **1.0% increase in interest rates** would decrease the fair value of the fixed-rate debt by approximately **$47.7 million**[288](index=288&type=chunk) - The company's **$100.0 million of variable-rate debt is effectively fixed** through interest rate swap agreements, mitigating risk from interest rate fluctuations[289](index=289&type=chunk)[290](index=290&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both the REIT and its L.P. were effective as of June 30, 2025 - The CEO and CFO concluded that as of June 30, 2025, the disclosure controls and procedures for both American Assets Trust, Inc. and American Assets Trust, L.P. were **effective**[292](index=292&type=chunk)[296](index=296&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter for either entity[293](index=293&type=chunk)[297](index=297&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=60&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is not party to any material legal proceedings - The company reports **no material legal proceedings** as of the filing date[298](index=298&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A%2E%20Risk%20Factors) A new risk factor was added concerning the potential adverse effects of international trade policies and tariffs - A new risk factor was added regarding the potential negative impact of **changes in trade policies, including tariffs**, on tenants' ability to pay rent, leasing demand, and property development costs[299](index=299&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None[300](index=300&type=chunk) [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203%2E%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[301](index=301&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205%2E%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025 - No officers or directors adopted or terminated any **Rule 10b5-1 trading plans** during the three months ended June 30, 2025[303](index=303&type=chunk)