American Assets Raises 2026 FFO Guidance Amid Strong Office Leasing and Fixed-Rate Debt Protection
American Assets (AAT) has raised its full-year 2026 funds from operations (FFO) guidance to a midpoint of $2.07 per share, representing a 2% increase from previous estimates. This upward revision follows strong third-quarter performance where same-store cash net operating income grew by 8.3%, driven by organic property growth and favorable one-time items. The company is seeing significant success in its office portfolio through a 'speculative suite' program, which has pushed office leasing to 86% occupancy. This strategy allows for faster tenant turnover by providing move-in ready spaces that are often preleased before construction concludes. Financially, the REIT remains insulated from current interest rate volatility as all outstanding debt is either fixed-rate or protected via swaps with no maturities until March 2027. While management anticipates higher borrowing costs during the 2027 refinancing cycle, current cash flows remain shielded.
Tickers: $AAT