American Assets Trust Stock Earnings Reports

Q3 2025 highlights: FFO of $0.49 per diluted share (slightly above internal projections); total revenue $110M; net income to common $0.07/share. Management described 2025 as a "transition year" with portfolio-wide same-store NOI roughly flat (slightly negative for the quarter, +~1% year-to-date). Office leasing momentum is improving: portfolio 82% leased (same-store office 87%), ~180k sq ft of office leasing in Q3 with strong cash and straight-line rent spreads (cash +9%, straight-line +18%), and increasing activity at La Jolla Commons Tower 3 and One Beach Street. Retail remains very strong (98% leased) despite isolated bankruptcies and timing of reimbursements; retail rent spreads positive. Multifamily faces near-term headwinds in San Diego from new supply and higher concessions but occupancy is improving (San Diego communities ~94% at quarter end and ~95% subsequently); blended renewal/new rent growth ~4% (3% excluding acquisition). Waikiki hotel (Embassy Suites) saw softer tourism, lower occupancy (paid occupancy down 5.5%), ADR and RevPAR pressure in Q3, but management views this as near-term. Balance sheet: total liquidity ~$539M (cash ~$139M + $400M revolver availability); net debt/EBITDA ~6.7x (quarter annualized 6.9x) with a goal to reduce toward 5.5x. Board approved Q4 dividend of $0.34/share payable Dec 18. Company raised full-year 2025 FFO guidance to $1.93–$2.01/share (midpoint up ~$0.02). Key near-term catalysts: converting leasing momentum at La Jolla Commons Tower 3 and One Beach Street into signed leases, continued retail rent strength, multifamily expense normalization and improved Waikiki tourism. Management remains focused on tight expense control, spec-suite strategy (ready-to-go spaces) to shorten lease-up times, and preserving balance sheet flexibility.