Key Highlights

  • FFO was $0.56 per diluted share in the third quarter, up from $0.49 a year earlier, on revenue of $114.3 million.
  • Same-store cash NOI rose 8.3% to $69.8 million, led by multifamily at 10.2% and retail at 9.6%.
  • 2026 FFO guidance was raised to $2.04 to $2.10 per share from $1.96 to $2.10, lifting the midpoint to $2.07.
  • Office leased status reached 85.8%, up from 81.9% a year earlier, and multifamily reached 94.2%.
  • Liquidity stood at $589.6 million, and the quarterly dividend was held at $0.34 per share.

American Assets Trust Earnings: Why Did Management Raise 2026 FFO Guidance?

American Assets Trust (NYSE:AAT) reported third-quarter results on Tuesday, October 27, with FFO of $0.56 per diluted share and unit, compared with $0.49 in the same quarter of 2025. Net income was $0.13 per share, against $0.07 (the screen's EPS estimate was $0.09, as screened).

The raise to full-year guidance is the headline. FFO per diluted share is now projected at $2.04 to $2.10, versus $1.96 to $2.10 before. The low end rose $0.08 while the high end was unchanged, so the midpoint moved up $0.04 to $2.07.

AAT Same-Store Results: Which Segments Drove the 8.3% Gain in Cash NOI?

Total revenue was $114.3 million, up about 4.3% from $109.6 million, while net income rose to $10.0 million from $5.9 million. FFO attributable to common stock and units was $42.8 million, versus $37.8 million.

Same-store cash NOI climbed 8.3% to $69.8 million. Office rose 7.9% to $36.9 million, retail rose 9.6% to $17.9 million, multifamily rose 10.2% to $9.0 million, and mixed-use rose 3.9% to $5.9 million. The pool held 31 properties, including Genesee Park and La Jolla Commons III, so the quarterly rate is not directly comparable with the nine-month figure of 2.3%.

Occupancy and Leasing: Is Office Recovery Showing Up in the Rent Roll?

Office leased status improved to 85.8% at September 30 from 84.4% at June 30 and 81.9% a year ago. Retail edged up to 98.3%, and multifamily rose to 94.2% from 88.4% in the prior quarter.

The company signed 43 office and retail leases covering about 231,800 square feet, plus 635 multifamily leases. Comparable office leases carried a cash spread of 2.1% and a straight-line spread of 8.2%, on average cash rent of $68.11 per square foot. Comparable retail leases carried a cash spread of 7.4% and a straight-line spread of 16.8%.

Balance Sheet and Dividend: How Much Room Does the Trust Have?

Liquidity was $589.6 million, made up of $89.6 million in cash and $500.0 million available on the credit line. Total debt at net carrying value was about $1.69 billion, so net debt is roughly $1.60 billion on a calculated basis.

The board declared a fourth-quarter dividend of $0.34 per share, payable December 17 to holders of record on December 10. That equals an annualized $1.36, and dividends declared for nine months were $1.02, matching the prior-year period.

What to Watch Next for American Assets Trust After the Guidance Raise

The conference call is scheduled for Wednesday, October 28, where office leasing momentum, the fourth-quarter FFO range of roughly $0.47 to $0.53 implied by guidance and nine-month FFO of $1.57, and the fate of First & Main and 14Acres occupancy are the open questions. Nine-month net income of $23.5 million trails $67.1 million a year ago because the earlier period included a $44.5 million gain on the Del Monte Center sale. The Form 10-Q will finalize the preliminary figures.