American Assets Trust, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common stockholders was $7.7 million for the three months ended September 30, 2026, and $18.0 million for the nine months ended September 30, 2026.
• Diluted earnings per share were $0.13 for the three months and $0.30 for the nine months ended September 30, 2026, compared to $0.07 and $0.87, respectively, in the same periods of 2025.
• Funds From Operations (FFO) attributable to common stock and units was $42.8 million for the three months and $121.0 million for the nine months ended September 30, 2026.
• FFO per diluted share was $0.56 for the three months and $1.57 for the nine months ended September 30, 2026, compared to $0.49 and $1.53, respectively, in 2025.
• FFO increased $3.5 million for the nine months ended September 30, 2026, compared to the same period in 2025.
• Net income decreased $43.6 million for the nine months ended September 30, 2026, compared to 2025, primarily due to a gain on the sale of Del Monte Center recognized in 2025, higher interest expense from ceased capitalization at La Jolla Commons III, decreased occupancy at First & Main and 14Acres, and increased rental expenses.
• Total revenue was $114.3 million for the three months and $334.4 million for the nine months ended September 30, 2026.
• Rental expenses were $33.6 million for the three months and $97.1 million for the nine months ended September 30, 2026.
• Interest expense, net, was $20.0 million for the three months and $59.6 million for the nine months ended September 30, 2026.
• Gross real estate assets were $3.8 billion as of September 30, 2026.
• Liquidity totaled $589.6 million as of September 30, 2026, comprising $89.6 million in cash and cash equivalents and $500.0 million in availability on its line of credit.
• Only 1 out of 31 assets was encumbered by a mortgage as of September 30, 2026.

Guidance and Future Outlook:

• The company increased its 2026 FFO per diluted share guidance to a range of $2.04 to $2.10, with a midpoint of $2.07, representing a $0.04 increase over the prior guidance midpoint.
• Guidance excludes the impact of future acquisitions, dispositions, equity issuances or repurchases, and debt financing or repayments.
• Management's view reflects assumptions regarding leasing activity, rental rates, occupancy levels, interest rates, credit spreads, and the timing of acquisition and development activities.

Business Segments and Product Lines:

• Same-store cash Net Operating Income (NOI) increased 8.3% for the three months and 2.3% for the nine months ended September 30, 2026, compared to 2025.
• The company achieved record average rental rates across its retail and multifamily segments during the third quarter.
• Office leasing: 124,000 square feet leased (47,000 comparable) with average straight-line and cash-basis contractual rent increases of 8.2% and 2.1%, respectively.
• Retail leasing: 108,000 square feet leased (94,000 comparable) with average straight-line and cash-basis contractual rent increases of 16.8% and 7.4%, respectively.
• Total leases signed in Q3 2026 included 43 office/retail leases (231,800 sq. ft.) and 635 multifamily apartment leases.
• Renewals accounted for 88% of comparable office leases, 86% of comparable retail leases, and 50% of residential leases.
• Average monthly base rent per occupied multifamily unit was $2,816 as of September 30, 2026, up from $2,776 in Q2 2026 and $2,684 in Q4 2025.
• Weighted average portfolio annualized base rent per leased square foot was $57.64 for office and $30.30 for retail as of Q3 2026.
• Same-store cash NOI by segment for the nine months ended September 30, 2026, showed increases of 1.9% for Office, 2.8% for Retail, 4.2% for Multifamily, and 0.7% for Mixed-Use compared to 2025.

Market and Competitive Landscape:

• Portfolio occupancy as of September 30, 2026: Office 85.8%, Retail 98.3%, Multifamily 94.2%, Mixed-Use Retail 93.7%, and Hotel 90.3%.
• Same-store portfolio occupancy as of September 30, 2026: Office 85.8%, Retail 98.3%, Multifamily 94.2%, Mixed-Use Retail 93.7%, and Hotel 90.3%.
• Comparable office leasing spreads (cash basis) were 2.1% in Q3 2026, down from 9.1% in Q2 2026.
• Comparable retail leasing spreads (cash basis) were 7.4% in Q3 2026, up from 3.0% in Q2 2026.
• The company operates in high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas, and Hawaii.

Risks and Challenges:

• Net income was negatively impacted by the absence of a gain on the sale of Del Monte Center in 2026 compared to 2025.
• Higher interest expense resulted from ceasing interest capitalization at La Jolla Commons III.
• Decreased occupancy was noted at First & Main and 14Acres.
• Overall rental expenses increased across same-store properties.

Management Commentary and Tone:

• Management highlighted the achievement of record average rental rates in retail and multifamily segments.
• The tone reflects confidence in leasing spreads and occupancy levels, evidenced by the upward revision of full-year FFO guidance.
• The company noted that FFO increased despite the lack of a prior-year gain on sale, driven by operational items.

Other Key Points:

• The company declared a quarterly dividend of $0.34 per share for the third quarter of 2026, paid on September 17, 2026.
• A dividend of $0.34 per share for the fourth quarter of 2026 was declared, payable on December 17, 2026, to stockholders of record as of December 10, 2026.
• The company sold the Del Monte Center (retail) on February 25, 2025.
• The company acquired Genesee Park (multifamily) on February 28, 2025.
• La Jolla Commons III (office) was placed into service on April 1, 2025.
• A conference call to discuss results is scheduled for October 28, 2026, at 8:00 a.m. Pacific Time.
• The portfolio consists of approximately 4.3 million rentable square feet of office space, 2.4 million square feet of retail space, one mixed-use property, and 2,302 multifamily units.