American Assets Trust Reiterates Full-Year FFO Guidance
The real estate investment trust reported funds from operations of $0.51 per diluted share for the second quarter.
American Assets Trust (AAT), a real estate investment trust, reported second-quarter funds from operations of $0.51 per diluted share. The result represented a slight decrease from the $0.52 per diluted share reported in the second quarter of 2024.
Performance for the quarter was marked by a recovery in leasing momentum. Same-store cash net operating income increased 0.3% for the three months ended June 30, 2026, compared to the same period in 2025. This followed a flat trend in the first quarter of 2026. For the six months ended June 30, 2026, same-store cash net operating income decreased 0.1% compared to the prior-year period.
The company achieved record average rental rates across its office, retail, and multifamily segments in the second quarter. Office weighted average portfolio annualized base rent rose to $57.83, up from $56.64 in the first quarter. Retail weighted average portfolio annualized base rent increased to $30.12 from $30.04, while multifamily average monthly base rent per occupied unit rose to $2,776 from $2,756.
Leasing spreads showed acceleration across key sectors. Comparable office leasing spreads on a cash basis increased to 9.1% in the second quarter, up from 4.8% in the first quarter. Comparable retail leasing spreads rose to 3.0%, reversing a 2.0% decrease recorded in the first quarter.
Occupancy levels shifted during the period. Total portfolio occupancy for multifamily dropped to 88.4% as of June 30, 2026, compared to 94.7% as of March 31, 2026. Office occupancy decreased slightly to 84.4% from 84.5% over the same interval.
Net income attributable to common stockholders for the six months ended June 30, 2026, decreased by $47.7 million compared to the same period in 2025. The decline was primarily due to the absence of a gain from the sale of the Del Monte Center that was recognized in 2025.
American Assets Trust reiterated its full-year 2026 FFO per diluted share guidance in a range of $1.96 to $2.10, with a midpoint of $2.03.
On April 1, 2026, the company amended and restated its credit facility. The move increased borrowing capacity to $600 million, comprising a $500 million revolver and a $100 million term loan, and extended the maturity date to April 1, 2030.