Net income available to common stockholders of $9.0 million and $56.8 million for the three months and year ended December 31, 2024, respectively, or $0.15 and $0.94 per diluted share, respectively.
Funds from Operations ("FFO") per diluted share decreased 4% and increased 8% year-over-year for the three months and year ended December 31, 2024, respectively, to $0.55 and $2.58 per diluted share, respectively.
Introducing 2025 annual guidance midpoint of $1.94 with a range of $1.87 to $2.01 of FFO per diluted share.
SAN DIEGO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE: AAT) (the "company”) today reported financial results for its fourth quarter and year ended December 31, 2024.
Fourth Quarter Highlights
- Net income available to common stockholders of $9.0 million and $56.8 million for the three months and year ended December 31, 2024, respectively, or $0.15 and $0.94 per diluted share, respectively.
- FFO decreased 4% and increased 8% year-over-year to $0.55 and $2.58 per diluted share for the three months and year ended December 31, 2024, respectively, compared to the same periods in 2023.
- Same-store cash Net Operating Income ("NOI") increased 2.6% and 1.4% year-over-year for the three months and year ended December 31, 2024, respectively, compared to the same periods in 2023.
- Introducing 2025 annual guidance midpoint of $1.94 with a range of $1.87 to $2.01 of FFO per diluted share.
- Leased approximately 57,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 11% and 2%, respectively, during the fourth quarter.
- Leased approximately 100,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 31% and 7%, respectively, during the fourth quarter.
| (Unaudited, amounts in thousands, except per share data) | Three Months Ended
December 31, | Year Ended December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income attributable to American Assets Trust, Inc. stockholders | $ | 8,977 | $ | 10,481 | $ | 56,798 | $ | 50,378 | |||
| Basic and diluted income attributable to common stockholders per share | $ | 0.15 | $ | 0.17 | $ | 0.94 | $ | 0.84 | |||
| FFO attributable to common stock and common units | $ | 42,110 | $ | 43,210 | $ | 197,526 | $ | 183,441 | |||
| FFO per diluted share and unit | $ | 0.55 | $ | 0.57 | $ | 2.58 | $ | 2.40 | |||
| FFO per diluted share and unit, excluding lease termination fees and litigation income (1) | $ | 0.55 | $ | 0.57 | $ | 2.30 | $ | 2.31 | |||
| (1) | Excludes lease termination fees and litigation income consisting of $11.7 million in lease termination fees and $10.0 million in litigation income recognized during the year ended December 31, 2024, and $0.3 million in lease termination fees and $6.5 million in litigation income recognized during the year ended December 31, 2023. |
FFO decreased $1.1 million for the three months ended December 31, 2024 compared to the same period in 2023, primarily due to an increase in our interest expense as described above and a decrease in our office segment due to lower occupancy. These decreases were offset by an increase in our retail and multifamily segments due to higher occupancy and average monthly base rent and an increase in other income due to interest and investment income attributed to higher yield on our average cash balance during the period.
FFO is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release.
Leasing
The portfolio leased status as of the end of the indicated quarter was as follows:
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |
| Total Portfolio | |||
| Office | 85.0% | 87.0% | 86.0% |
| Retail | 94.5% | 94.5% | 94.3% |
| Multifamily | 91.8% | 90.3% | 92.3% |
| Mixed-Use: | |||
| Retail | 90.5% | 96.3% | 95.1% |
| Hotel | 85.9% | 86.7% | 85.2% |
| Same-Store Portfolio | |||
| Office (1) | 87.1% | 89.2% | 88.2% |
| Retail | 94.5% | 94.5% | 94.3% |
| Multifamily | 91.8% | 90.3% | 92.3% |
| Mixed-Use: | |||
| Retail | 90.5% | 96.3% | 95.1% |
| Hotel | 85.9% | 86.7% | 85.2% |
| (1) Same-store office leased percentages exclude One Beach Street due to significant redevelopment activity and land held for development. | |||
Office and Retail
The annualized base rent per leased square foot as of the end of the indicated quarter was as follows:
| 1st Quarter
2024 | 2nd Quarter 2024 | 3rd Quarter 2024 | 4th Quarter 2024 | ||
| Office | Weighted Average Portfolio | $55.72 | $55.48 | $56.39 | $55.92 |
| Retail | Weighted Average Portfolio | $26.65 | $26.85 | $27.29 | $27.35 |
| 1st Quarter 2024 | 2nd Quarter 2024 | 3rd Quarter 2024 | 4th Quarter
2024 | ||
| Office | Cash Basis % Change Over Prior Rent | 7.9% | 5.2% | 7.8% | 1.6% |
| Straight-Line Basis % Change Over Prior Rent | 10.9% | 14.5% | 16.4% | 11.0% | |
| Retail | Cash Basis % Change Over Prior Rent | 1.9% | 5.8% | 4.4% | 6.5% |
| Straight-Line Basis % Change Over Prior Rent | 22.3% | 34.4% | 18.7% | 30.8% | |
| Number of Leases Signed | Comparable Leased Sq. Ft. | Average Cash Basis % Change Over Prior Rent | Average Cash Contractual Rent Per Sq. Ft. | Prior Average Cash Contractual Rent Per Sq. Ft. | Straight-Line Basis % Change Over Prior Rent | ||||
| Office | Q4 2024 | 11 | 57,000 | 1.6% | $52.32 | $51.48 | 11.0% | ||
| FY 2024 | 45 | 248,000 | 6.0% | $55.77 | $52.62 | 13.0% | |||
| Retail | Q4 2024 | 18 | 100,000 | 6.5% | $35.71 | $33.51 | 30.8% | ||
| FY 2024 | 80 | 392,000 | 4.5% | $37.68 | $36.04 | 25.0% | |||
The average monthly base rent per leased unit as of the end of the indicated quarter was as follows:
| 1st Quarter 2024 | 2nd Quarter 2024 | 3rd Quarter 2024 | 4th Quarter 2024 | |||||
| Average Monthly Base Rent per Leased Unit | $ | 2,685 | $ | 2,711 | $ | 2,739 | $ | 2,683 |
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Cash Basis: | |||||||||||||||||||
| Office (1) | $ | 34,483 | $ | 35,488 | (2.8 | ) | % | $ | 137,833 | $ | 140,162 | (1.7 | ) | % | |||||
| Retail | 20,327 | 18,255 | 11.4 | 75,973 | 72,334 | 5.0 | |||||||||||||
| Multifamily | 9,016 | 8,543 | 5.5 | 36,061 | 33,994 | 6.1 | |||||||||||||
| Mixed-Use | 5,481 | 5,285 | 3.7 | 23,856 | 23,458 | 1.7 | |||||||||||||
| Same-store Cash NOI (2) | $ | 69,307 | $ | 67,571 | 2.6 | % | $ | 273,723 | $ | 269,948 | 1.4 | % | |||||||
| (1) | Same-store office portfolio excludes One Beach Street due to significant redevelopment activity and land held for development. |
| (2) | Lease termination fees (including, without limitation, the $11 million received at Torrey Reserve Campus during year ended December 31, 2024) and tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance. |
Balance Sheet and Liquidity
At December 31, 2024, the company had gross real estate assets of $3.6 billion and liquidity of $825.7 million, comprised of cash and cash equivalents of $425.7 million and $400.0 million of availability on its line of credit. At December 31, 2024, the company had only 1 out of 31 assets encumbered by a mortgage.
On January 2, 2025, we repaid in full the $225 million outstanding balance on our Term Loan B and Term Loan C under the Amended and Restated Term Loan Agreement. Additionally, on February 3, 2025, we repaid in full the $100 million outstanding balance on our Series C Notes under the Note Purchase Agreement.
Dividends
The company declared dividends on its shares of common stock of $0.335 per share for the fourth quarter of 2024. The dividends were paid on December 19, 2024.
In addition, the company has declared a dividend on its common stock of $0.340 per share for the first quarter of 2025. The dividend will be paid in cash on March 20, 2025 to stockholders of record on March 6, 2025.
Guidance
The company is introducing 2025 guidance for full year 2025 FFO per diluted share of $1.87 to $2.01 per share, with a midpoint of $1.94.
A high-level reconciliation of 2024 actual FFO to our 2025 budgeted FFO is available on the "Corporate Guidance” page of our Supplemental Information. See below for more details regarding Supplemental Information.
Management will discuss the company's guidance in more detail during tomorrow's earnings call. Except as discussed during the call, the company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financing or repayments. The foregoing estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates, credit spreads and the amount and timing of acquisition and development activities. The company's actual results may differ materially from these estimates.
Conference Call
The company will hold a conference call to discuss the results for the three months and year ended December 31, 2024 on Wednesday, February 5, 2025 at 8:00 a.m. Pacific Time ("PT”). To participate in the event by telephone, please dial 1-833-816-1162 and ask to join the American Assets Trust, Inc. conference call. A live on-demand audio webcast of the conference call will be available on the company's website at www.americanassetstrust.com. A replay of the call will also be available on the company's website.
Supplemental Information
Supplemental financial information regarding the company's three months and year ended December 31, 2024 results may be found on the "Financial Reporting" tab of the "Investors” page of the company's website at www.americanassetstrust.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.
| Financial Information American Assets Trust, Inc. Consolidated Balance Sheets (In Thousands, Except Share Data) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | (unaudited) | ||||||
| Real estate, at cost | |||||||
| Operating real estate | $ | 3,449,009 | $ | 3,353,735 | |||
| Construction in progress | 176,868 | 238,482 | |||||
| Held for development | 487 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
| |||||