American Assets Trust (AAT) Q4 2024 earnings summary

Executive summary

• Achieved record FFO per share, total revenue, NOI, aggregate dividends, and average monthly base rents in 2024, marking the highest FFO per share since IPO over 14 years ago.

• Reported net income available to common stockholders of $9.0 million for Q4 2024 and $56.8 million for the year, or $0.15 and $0.94 per diluted share, respectively.

• FFO per diluted share increased 8% for the year to $2.58, despite a 4% decrease in Q4 year-over-year.

• Maintained strong performance across all segments despite economic and interest rate volatility, supported by strategic capital improvements and a robust, diversified portfolio.

• Focused on disciplined decision-making, long-term growth, and maintaining a strong balance sheet with no debt maturities until 2027.

Financial highlights

• Q4 and full-year 2024 FFO per share were $0.55 and $2.58, respectively; net income per share was $0.15 for Q4 and $0.94 for the year.

• Same-store cash NOI grew 2.6% year-over-year in Q4 and 1.4% for the full year; all sectors posted positive same-store NOI in Q4 except office, which was down 2.8%.

• Q4 revenue was $113.5 million, with full-year revenue at $457.9 million.

• Liquidity at year-end was $826 million, including $426 million in cash and $400 million in revolver availability.

• Board approved a 1.5% increase in quarterly dividend to $0.34 per share for Q1 2025.

Outlook and guidance

• 2025 FFO per share guidance is $1.87–$2.01, midpoint $1.94, representing a 24% decrease from 2024 due to non-recurring 2024 items and higher interest expense.

• Guidance reflects management's assumptions on leasing, rental rates, occupancy, and interest rates, and excludes impacts from future acquisitions, dispositions, or financings.

• Same-store office NOI expected to decrease ~1%, retail to increase ~1.6%, multifamily to increase ~2.7%, and mixed-use to remain flat in 2025.

• Embassy Suites Waikiki revenue expected to rise 5% in 2025, with ADR up 4% and RevPAR up 6%.