American Assets Trust (AAT) Q1 2026 earnings summary

Executive summary

• FFO per diluted share was $0.51 for Q1 2026, nearly flat year-over-year and up $0.04 sequentially, driven by lower G&A, higher rental income, and lower operating expenses.

• Net income attributable to common stockholders was $5.1 million ($0.08 per share), down from $42.5 million in Q1 2025, mainly due to a prior-year gain on sale and higher interest expense.

• Portfolio-wide leasing activity was strong, with office at 84.5% leased, retail at 97.7%-98%, multifamily at 94.7%-96%, and mixed-use at 96.2%.

• Board approved a quarterly dividend of $0.34 per share/unit, with payout ratio expected to moderate as new leases commence.

• Portfolio comprised 31 office, retail, multifamily, and mixed-use properties totaling 6.8 million sq. ft., 2,302 residential units, and a 369-room hotel as of March 31, 2026.

Financial highlights

• Total revenue for Q1 2026 was $110.6 million, up from $108.6 million in Q1 2025, with NOI at $66.9 million and same-store cash NOI flat year-over-year at $66.4 million.

• Office same-store NOI was flat or down 0.1%; retail NOI declined 0.7%, multifamily NOI increased 3%, and mixed-use NOI declined 2.7%.

• Embassy Suites Waikiki occupancy improved to 91.9%-92%, ADR softened to $332, and RevPAR was $305.

• Net debt to EBITDA was 6.8x-6.9x; interest and fixed charge coverage were 3.0x-3.1x.

• Liquidity at quarter-end was $518 million, including $118 million cash and $400 million available on revolver.

Outlook and guidance

• Full-year 2026 FFO per diluted share guidance reaffirmed at $1.96–$2.10, midpoint $2.03.

• Payout ratio expected to trend to low/mid 90% for the rest of the year, with full-year likely in upper 90% range.

• Office portfolio targeted to end year in mid-80% leased range, with some downside risk from Genentech vacating.

• Guidance excludes impact of future acquisitions, dispositions, or unannounced capital markets activity.

• Growth strategy centers on same-store performance, development/redevelopment, and selective acquisitions, with a robust pipeline in early stages.