American Assets Trust, Inc. Reports Fourth Quarter and Year End 2025 Financial Results

Core Viewpoint - American Assets Trust, Inc. reported its financial results for the fourth quarter and the year ended December 31, 2025, showing a decline in net income and funds from operations (FFO) compared to the previous year [1][2]. Financial Results - For the fourth quarter of 2025, net income was $4.2 million, down from $11.6 million in Q4 2024, and for the full year, net income was $71.4 million, a decrease from $72.8 million in 2024 [3][26]. - Basic and diluted income attributable to common stockholders per share was $0.05 for Q4 2025, compared to $0.15 in Q4 2024, and $0.92 for the full year 2025, down from $0.94 in 2024 [3][22]. - FFO attributable to common stock and common units was $36.0 million for Q4 2025, down from $42.1 million in Q4 2024, and $153.4 million for the full year, compared to $197.5 million in 2024 [3][4][28]. Leasing Activity - The company leased 193,000 square feet of office space and 43,000 square feet of retail space in Q4 2025, with average contractual rent increases of 11.5% for office and 24.3% for retail [5][10]. - The total portfolio leased status as of December 31, 2025, was 83.1% for office, 97.7% for retail, and 93.7% for multifamily properties [6][7]. Same-Store Cash Net Operating Income (NOI) - Same-store cash NOI remained flat for Q4 2025 and increased by 0.5% for the full year compared to the same periods in 2024 [12][25]. - The cash NOI by segment for Q4 2025 was $34.5 million for office, $17.1 million for retail, and $8.9 million for multifamily [12]. Balance Sheet and Liquidity - As of December 31, 2025, the company had gross real estate assets of $3.8 billion and liquidity of $529.4 million, including $129.4 million in cash and cash equivalents [14]. - The company had only one asset encumbered by a mortgage at the end of 2025 [14]. Dividends - The company declared a dividend of $0.340 per share for Q4 2025, which was paid on December 18, 2025, and has declared the same amount for Q1 2026, payable on March 19, 2026 [16]. Guidance - The company introduced guidance for 2026, projecting FFO per diluted share to be in the range of $1.96 to $2.10, with a midpoint of $2.03 [17].