AAT · American Assets Trust, Inc.

American Assets Trust, Inc. reported first quarter 2026 results showing a significant decline in GAAP net income to $5.1 million ($0.08 per diluted share) from $42.5 million ($0.70 per share) in the prior year, primarily due to the absence of a $44.5 million gain on the 2025 sale of Del Monte Center, higher interest expense after ceasing capitalization on La Jolla Commons III, lower occupancy at First & Main, and increased rental expenses across segments. FFO held nearly steady at $0.51 per diluted share versus $0.52 year-over-year, reflecting core operational stability despite these headwinds. Same-store cash NOI was flat at $66.4 million, with office slightly down 0.1% to $35.0 million, retail down 0.7% to $16.3 million, multifamily up 3.0% to $9.8 million, and mixed-use down 2.7% to $5.2 million. Leasing activity was robust in office, with 237,000 square feet leased (108,000 comparable at 10.6% straight-line and 4.8% cash rent growth), though retail saw 39,000 square feet (38,000 comparable with 1.3% straight-line growth but 2.0% cash decline). Portfolio occupancy improved: office at 84.5% (same-store 86.3%), retail 97.7%, multifamily 94.7%. Balance sheet remains strong with $3.8 billion in gross real estate, $518.3 million liquidity, and only 1 of 31 assets encumbered. The company enhanced its liquidity by amending its credit facility on April 1, 2026, increasing capacity to $600 million ($500 million revolver from $400 million, plus $100 million term loan) and extending maturities to April 1, 2030. Management affirmed full-year 2026 FFO guidance of $1.96-$2.10 per diluted share (midpoint $2.03), excluding future transactions, signaling confidence in leasing momentum and operational execution amid market challenges. A $0.340 per share dividend was declared for Q2, payable June 18 to June 4 record holders, maintaining capital return consistency.