Q3 2024 American Assets Trust Inc Earnings Call Transcript
Key Points
- American Assets Trust Inc (AAT) successfully issued a 10-year $525 million bond at a 6.15% coupon, which was more than four times oversubscribed, enhancing liquidity and financial flexibility.
- The company's retail segment achieved its highest average base rent per square foot since its IPO, with positive leasing spreads and strong tenant sales growth.
- The multifamily portfolio showed stable performance with high occupancy rates and increased average base rents, particularly in San Diego.
- The office portfolio experienced positive net absorption with new leasing activity outpacing renewals for the first time since 2019.
- American Assets Trust Inc (AAT) declared a quarterly dividend of 33.5 cents per share, reflecting solid financial performance and confidence in future prospects.
- The office segment faced challenges with some right-sizing of existing tenants and small office closings, although these were offset by new leasing activity.
- Interest expense increased due to the new bond issuance, impacting FFO by approximately $0.03 per share in Q3 2024.
- The mixed-use portfolio experienced a decrease in NOI due to lower occupancy and higher expenses at the Embassy Suites Waikiki.
- Higher operating expenses at multifamily properties reduced FFO by approximately a penny in Q3 2024.
- The company faces uncertainty in the broader economic environment, including interest rates, elections, and consumer spending, which could impact future performance.
Welcome to American Asset Trust. Inc's third quarter, 2024 earnings call as a reminder, today's conference is being recorded.
Please note that statements made on this conference call include forward-looking statements based on current expectations, which statements are subject to risks and uncertainties discussed in the company's filings with the SEC.
You are cautioned not to place undue reliance on these forward-looking statements as actual reso as actual events could cause the company's results to differ materially from these forward-looking statements.
Yesterday afternoon, American Assets Trust earnings release and supplemental information were furnished to the SEC on form 8-K. Both are now available on the investors section of the website, American assets trust dotcom.
It is now my pleasure to turn the conference over to Ernest Rady, Chairman and CEO of American Assets Trust. Please go ahead, sir.
Good morning, everyone and thank
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