Key Highlights

  • American Assets Trust reported third quarter funds from operations of USD 0.56 per diluted share, up from USD 0.49 a year earlier.
  • Net income available to common stockholders reached USD 7.7 million, or USD 0.13 per diluted share, in line with estimates.
  • Same-store cash net operating income rose 8.3% in the quarter and 2.3% over the first nine months of the year.
  • The company raised its full year FFO guidance to a range of USD 2.04 to USD 2.10 per diluted share.

Quarterly FFO Growth Outpaces Same-Store Income Gains

American Assets Trust (NYSE:AAT) reported third quarter total revenue of USD 114.3 million, up from USD 109.6 million a year earlier. Funds from operations reached USD 0.56 per diluted share, compared with USD 0.49 per diluted share in the same period of 2025, while net income available to common stockholders was USD 7.7 million, or USD 0.13 per diluted share.

Same-store cash net operating income increased 8.3% for the quarter and 2.3% over the first nine months of 2026 compared with the same periods a year earlier. The company said record average rental rates across its retail and multifamily segments supported the improvement, alongside leasing activity that included 43 office and retail leases covering approximately 231,800 square feet during the quarter.

Leasing Activity and Portfolio Composition

Renewals accounted for 88% of comparable office leases and 86% of comparable retail leases signed during the quarter, while the company also executed 635 multifamily apartment leases. Net income for the nine month period declined from the prior year, a shift the company attributed to a gain on the sale of Del Monte Center recognized in 2025, higher interest expense following the completion of La Jolla Commons III, and lower occupancy at two office properties.

These declines were partially offset by the contribution from the Genesee Park acquisition completed in 2025, prior year tax refunds at Waikele Center, and new tenant leases commenced at City Center Bellevue and La Jolla Commons III. Funds from operations for the nine month period increased USD 3.5 million year over year, as FFO calculations exclude the one time gain on the Del Monte Center sale.

Updated Guidance and Portfolio Risk Factors

The company raised its full year 2026 FFO per diluted share guidance to a range of USD 2.04 to USD 2.10, with a midpoint of USD 2.07, an increase of USD 0.04 over its prior outlook. The updated range reflects the same-store NOI trends realized through the first nine months of the year.

Office segment occupancy softness at specific properties remains a factor the company has flagged, alongside interest expense tied to the completed La Jolla Commons III development. Continued strength in multifamily and retail rental rates could support further same-store NOI gains, while softer office leasing conditions or a slowdown in tenant renewals could weigh on the pace of FFO growth relative to the updated guidance range.

Metrics Investors May Track Next

Occupancy trends at the company's office properties, the pace of lease renewals across retail and multifamily segments, and progress against the updated USD 2.04 to USD 2.10 FFO guidance range are among the data points that may shape how the fourth quarter print is assessed. Same-store cash NOI trends by segment, reported quarterly, remain a reference point the company has used to frame its full year outlook.