American Assets Trust (AAT) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 FFO per share of $2.00, exceeding initial expectations by 3%, though down from $2.58 in 2024, with net income at $0.92 per share for the year.

• Portfolio focused on high-barrier, supply-constrained markets across six U.S. regions, totaling 6.7 million square feet diversified among office, retail, multifamily, and mixed-use assets.

• Portfolio-wide same-store NOI ended slightly positive, with office and retail offsetting mixed multifamily and hotel performance.

• Office leasing momentum improved, especially in Class A assets, and retail maintained high occupancy and strong leasing spreads.

• Decrease in net income and FFO primarily due to lower lease termination fees, absence of litigation income, and property sales compared to 2024.

Financial highlights

• Q4 and full-year 2025 FFO per share were $0.47 and $2.00, respectively, both down from prior year; net income attributable to common shareholders was $0.05 per share for Q4 and $0.92 for the year.

• Total revenue for Q4 2025 was $110.1 million, with annual revenue at $436.2 million, both down from 2024.

• Same-store cash NOI increased 0.5% year-over-year; office up 2.3%, retail up 1.2%, multifamily down 3.2%, mixed-use down 6.7%.

• Retail portion of Waikiki Beach Walk NOI rose 8% year-over-year.

• Liquidity at year-end was $529 million, including $129 million cash and $400 million revolver availability.

Outlook and guidance

• 2026 FFO per share guidance range is $1.96–$2.10, midpoint $2.03, up 1–1.5% from 2025, based on current market and leasing assumptions.

• Portfolio-wide same-store NOI growth, excluding reserves, expected to exceed 2% in 2026.

• Office same-store NOI expected to rise 3.3%, retail 1.7%, multifamily 2.2%, mixed-use to decline 3.3%.

• Embassy Suites Waikiki expects 2.5% revenue growth, 4% expense growth, and 2% RevPAR increase in 2026.

• Dividend expected to be maintained at $0.34 per share quarterly, with payout ratio improving to 89% in 2026.