In This Article:
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FFO per Share: $0.52 for Q1 2025.
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Net Income per Share: $0.70 for Q1 2025.
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Same Store Cash NOI Growth: 3.1% year over year for Q1 2025.
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Office Portfolio Leasing: 85.5% leased, 87.6% excluding one property.
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Office Leasing Activity: 140,000 square feet with cash basis rent spreads increasing 8%.
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Retail Portfolio Leasing: 97% leased with cash basis rent spreads increasing 13%.
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San Diego Multi-Family Leasing: 95% leased with a 2% blended rent increase.
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Mixed-Use NOI Decrease: 11% decrease in NOI for Waikiki Beach Walk.
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Liquidity: $544 million, including $144 million in cash and $400 million in credit availability.
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Leverage: Net debt to EBITDA of 6.2 times on a trailing 12-month basis.
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Dividend: $0.34 per share for Q2 2025.
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2025 FFO Guidance: Reaffirmed at $1.87 to $2.01 per share.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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American Assets Trust Inc (NYSE:AAT) reported a strong performance in Q1 2025, with FFO per diluted share of $0.52 and same store cash NOI up 3% year-over-year.
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The office portfolio showed positive leasing momentum, with a significant increase in average base rents and a high leasing activity totaling approximately 140,000 square feet.
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The retail portfolio demonstrated resilience, ending the quarter 97% leased and achieving an all-time high average base rent.
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The multi-family portfolio in San Diego performed well, with a 95% lease rate and a 3.5% increase in same store cash NOI year-over-year.
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The company maintained strong liquidity with approximately $544 million, including $144 million in cash and cash equivalents, and no debt maturities until 2027.
Negative Points
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The mixed-use portfolio, particularly the Waikiki Beach Walk, experienced an 11% decrease in NOI due to lower occupancy and RevPAR.
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Inflation and volatile interest rates continue to pose challenges, impacting the overall economic environment and investment sentiment.
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The company faced a decrease in FFO per share by $0.03 compared to Q4 2024, primarily due to the disposition of the Del Monte Center.
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The multi-family portfolio in Portland showed flat NOI growth due to lower rental income, indicating challenges in that market.
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Geopolitical uncertainty and macroeconomic factors continue to create a complex and unpredictable operating environment.
Q & A Highlights
Q: Can you provide an update on the Bellevue assets and any potential uptick in occupancy? A: Steve Center, Senior Vice President of Office Properties, noted that Timber Ridge is now 97% leased following a 29,000 square foot lease. There is also a letter of intent for 16,000 square feet at Bell Springs, which would reduce vacancy to 11.6%. Additional leasing momentum is seen at Eastgate and Center Bellevue, with proposals that could increase occupancy to 95%.