American Assets Trust Reports Q2 Earnings Exceeding Expectations
American Assets Trust (AAT) reported strong second-quarter results, with funds from operations of $0.51 per diluted share, surpassing internal expectations and driven by recent office leasing activity. Same-store cash net operating income increased slightly year-over-year at 0.3%, or 1.3% excluding a one-time reserve adjustment for an office tenant receivable. The company reaffirmed its full-year FFO guidance of $1.96–$2.10 per share and noted potential to reach the upper end if leasing, multifamily performance, and hotel demand improve. With 84.4% portfolio occupancy at quarter-end, AAT signed over 110,000 square feet in new office leases with strong cash leasing spreads of 9%. The company also has approximately $610 million in liquidity to support future growth. CEO Adam Wyll highlighted favorable demand for high-quality office spaces and ongoing efforts at properties like La Jolla Commons Tower 3 and One Beach Street. CFO Bob Barton estimated an additional $0.29 per share of FFO potential from the stabilization of key assets, with a portion already recognized in early results.
Tickers: $AAT