On October 24, 2023, American Assets Trust Inc (AAT, Financial) reported its financial results for the third quarter ended September 30, 2023. The company reported net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively. This translates to $0.20 and $0.66 per diluted share, respectively.
Financial Performance
FFO per diluted share decreased 6% and increased 3% year-over-year for the three and nine months ended September 30, 2023, respectively, or $0.59 and $1.84 per diluted share, respectively. The company also increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over prior guidance.
Leasing and Occupancy
During the third quarter, the company leased approximately 63,000 comparable office square feet and 132,000 comparable retail square feet. The average straight-line basis and cash-basis contractual rent increase were 14% and 7% for office space, and 19% and 8% for retail space, respectively.
Income Statement Highlights
Net income attributable to American Assets Trust, Inc. stockholders increased $6.0 million for the nine months ended September 30, 2023 compared to the same period in 2022. This was primarily due to a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at the Hassalo on Eighth property, a $3.4 million net increase in the retail segment due to new tenant leases, and a $2.2 million net increase in the office segment due to higher annualized base rents.
Balance Sheet and Liquidity
As of September 30, 2023, the company had gross real estate assets of $3.7 billion and liquidity of $490.0 million, comprised of cash and cash equivalents of $90.0 million and $400.0 million of availability on its line of credit.
Dividends
The company declared dividends on its shares of common stock of $0.33 per share for the third quarter of 2023. In addition, the company has declared a dividend on its common stock of $0.33 per share for the fourth quarter of 2023.
Guidance
The company increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 per share, an increase of 2.6% at midpoint from the prior 2023 FFO per diluted share guidance range of $2.28 to $2.36 per share.
