On July 30, 2024, American Assets Trust Inc (AAT, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. American Assets Trust Inc is a self-administered real estate investment trust based in the United States, focusing on retail, office, residential, and mixed-use properties primarily located in South California, Northern California, Oregon, Washington, and Hawaii.
Financial Highlights
American Assets Trust Inc reported net income available to common stockholders of $11.9 million for the second quarter of 2024, translating to $0.20 per diluted share. This performance aligns with the previous year's second quarter net income of $11.9 million or $0.20 per diluted share. For the six months ended June 30, 2024, net income was $31.2 million or $0.52 per diluted share, compared to $28.1 million or $0.47 per diluted share for the same period in 2023.
Funds from Operations (FFO)
FFO per diluted share increased by 2% year-over-year to $0.60 for the second quarter and by 6% to $1.32 for the first half of 2024. The company has also raised its 2024 FFO per diluted share guidance to a range of $2.48 to $2.54, with a midpoint of $2.51, representing a 9.6% increase over the prior guidance.
Operational Performance
Same-store cash Net Operating Income (NOI) increased by 2.1% year-over-year for the second quarter and by 1.8% for the first half of 2024. Excluding a $0.5 million write-off for non-recurring costs, same-store cash NOI increased by 2.2% for the first half of 2024.
Leasing Activity
During the second quarter, American Assets Trust Inc leased approximately 53,000 square feet of office space and 64,000 square feet of retail space, achieving average straight-line rent increases of 15% and 34%, respectively. The multifamily segment also saw robust activity with 395 apartment leases signed.
Balance Sheet and Liquidity
As of June 30, 2024, the company had gross real estate assets of $3.8 billion and liquidity of $514.9 million, including $114.9 million in cash and cash equivalents and $400 million available on its line of credit. The company declared a dividend of $0.335 per share for the second quarter, paid on June 20, 2024, and announced a similar dividend for the third quarter, payable on September 19, 2024.
CEO Succession
Ernest Rady, the current Chairman and CEO, will transition to Executive Chairman effective January 1, 2025. Adam Wyll, the current President and COO, will assume the role of President and CEO.
Conclusion
American Assets Trust Inc's second-quarter performance demonstrates resilience and growth, particularly in its retail and multifamily segments. The increase in FFO and NOI, along with strategic leasing activities, positions the company well for future growth. Investors and stakeholders can find more detailed financial information on the company's website.
Explore the complete 8-K earnings release (here) from American Assets Trust Inc for further details.
