third quarter 2026
Filed Oct 27, 2026American Assets Trust, Inc. Reports Third Quarter 2026 Financial Results
Third-quarter FFO per diluted share rose to $0.56 from $0.49, same-store cash NOI increased 8.3%, and the company increased 2026 FFO per diluted share guidance. GAAP net income, rental expenses, interest expense and office occupancy remain important areas of focus.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Rental income, three months ended September 30, 2026GAAP | $107.8M | – | – |
| Other property income, three months ended September 30, 2026GAAP | $6.45M | – | – |
| Total revenue, three months ended September 30, 2026GAAP | $114.3M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $84.84M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $29.45M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −$19.97M | – | – |
| Net income, three months ended September 30, 2026GAAP | $10.02M | – | – |
| Net income attributable to American Assets Trust, Inc. stockholders, three months ended September 30, 2026GAAP | $7.73M | – | – |
| Diluted income attributable to common stockholders per share, three months ended September 30, 2026GAAP | $ 0.13 | – | – |
| FFO attributable to common stock and units, three months ended September 30, 2026non-GAAP | $42.83M | – | – |
| FFO per diluted share and unit, three months ended September 30, 2026non-GAAP | $ 0.56 | – | – |
| Same-store cash NOI, three months ended September 30, 2026non-GAAP | $69.76M | – | 8.3 % |
| Rental income, nine months ended September 30, 2026GAAP | $315.4M | – | – |
| Other property income, nine months ended September 30, 2026GAAP | $18.98M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $334.4M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $252.8M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $81.58M | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | −$59.61M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $23.55M | – | decreased $43.6 million |
| Net income attributable to American Assets Trust, Inc. stockholders, nine months ended September 30, 2026GAAP | $18.04M | – | – |
| Diluted income attributable to common stockholders per share, nine months ended September 30, 2026GAAP | $ 0.30 | – | – |
| FFO attributable to common stock and units, nine months ended September 30, 2026non-GAAP | $121.0M | – | increased $3.5 million |
| FFO per diluted share and unit, nine months ended September 30, 2026non-GAAP | $ 1.57 | – | – |
| Same-store cash NOI, nine months ended September 30, 2026non-GAAP | $202.3M | – | 2.3 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteFFO per diluted share guidance: $2.04 to $2.10 per share
- NoteMidpoint: $2.07
- NoteGuidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financing or repayments.
Capital returns
- The company declared dividends on its shares of common stock of $0.34 per share for the third quarter of 2026. The dividends were paid on September 17, 2026.
- The company declared a dividend on its common stock of $0.34 per share for the fourth quarter of 2026. The dividend will be paid in cash on December 17, 2026 to stockholders of record as of December 10, 2026.
- Dividends declared per common share, three months ended September 30, 2026: $ 0.340.
- Dividends declared per common share, nine months ended September 30, 2026: $ 1.020.
What drove it
- Same-store cash NOI increased 8.3% for the three months ended September 30, 2026, led by office cash NOI growth of 7.9%, retail growth of 9.6%, multifamily growth of 10.2%, and mixed-use growth of 3.9%.
- The company achieved record average rental rates across its retail and multifamily segments during the third quarter.
- Office leased status was 85.8% at September 30, 2026, compared with 84.4% at June 30, 2026 and 81.9% at September 30, 2025.
- Retail leased status was 98.3% at September 30, 2026, compared with 97.9% at June 30, 2026 and September 30, 2025.
- Multifamily leased status was 94.2% at September 30, 2026, compared with 88.4% at June 30, 2026 and 91.5% at September 30, 2025.
- Comparable office leases signed during the third quarter had average cash-basis and straight-line-basis contractual rent increases of 2.1% and 8.2%, respectively.
- Comparable retail leases signed during the third quarter had average cash-basis and straight-line-basis contractual rent increases of 7.4% and 16.8%, respectively.
Concerns
- Nine-month net income decreased $43.6 million, primarily due to the gain on sale of Del Monte Center recognized in 2025, higher interest expense, decreases in occupancy at First & Main and 14Acres, and an overall increase in rental expenses across same-store properties.
- Interest expense, net was $(59,609) for the nine months ended September 30, 2026, compared with $(58,337) in the same period of 2025.
- Rental expenses were $ 33,605 for the three months ended September 30, 2026, compared with $ 31,768 in the same period of 2025.
- The company ceased capitalization of interest related to La Jolla Commons III when it was placed into service.
What to watch
- Delivery of 2026 FFO per diluted share guidance of $2.04 to $2.10 per share.
- Office leasing, occupancy and rent-spread trends after office leased status reached 85.8% at September 30, 2026.
- The impact of rental expenses and interest expense on GAAP earnings.
- Occupancy at First & Main and 14Acres.
- The contribution from new tenant leases commenced at City Center Bellevue and La Jolla Commons III.
Balance sheet and cash flow
- At September 30, 2026, the company had gross real estate assets of $3.8 billion.
- At September 30, 2026, liquidity was $589.6 million, comprised of cash and cash equivalents of $89.6 million and $500.0 million of availability on its line of credit.
- Cash and cash equivalents at September 30, 2026: $ 89,613.
- Secured notes payable, net at September 30, 2026: $ 74,917.
- Unsecured notes payable, net at September 30, 2026: $ 1,613,618.
- At September 30, 2026, the company had only 1 out of 31 assets encumbered by a mortgage.
- Operating real estate at cost at September 30, 2026: $ 3,724,574.
- Construction in progress at September 30, 2026: $ 92,656.
Analysis
American Assets Trust reported stronger third-quarter operating performance. Total revenue was $ 114,284, compared with $ 109,578 in the prior-year quarter, while operating income was $ 29,446, compared with $ 24,767. Net income was $ 10,018 and diluted income attributable to common stockholders per share was $ 0.13, compared with $ 5,921 and $ 0.07, respectively, in the third quarter of 2025. FFO attributable to common stock and units was $ 42,832, and FFO per diluted share and unit increased to $ 0.56 from $ 0.49.
Property-level momentum was broad-based in the same-store portfolio. Same-store cash NOI increased 8.3% to $ 69,759 for the quarter, with office, retail, multifamily and mixed-use cash NOI increasing 7.9%, 9.6%, 10.2% and 3.9%, respectively. Leasing data showed improving office occupancy and positive rent spreads. Office leased status reached 85.8%, while retail was 98.3% and multifamily was 94.2%. Comparable retail leasing spreads were particularly strong, with a 7.4% cash-basis increase and a 16.8% straight-line-basis increase during the quarter.
The nine-month GAAP comparison remains affected by property-sale and cost items. Net income was $ 23,547 for the nine months ended September 30, 2026, versus $ 67,149 in 2025, and the company cited the prior-year gain on sale of Del Monte Center, higher interest expense, occupancy decreases at First & Main and 14Acres, and increased rental expenses. FFO nevertheless increased $3.5 million to $ 120,952, as the gain on sale of Del Monte Center is excluded from FFO computations. Nine-month same-store cash NOI increased 2.3% to $ 202,334.
The balance sheet showed $589.6 million of liquidity, including $89.6 million of cash and cash equivalents and $500.0 million available under the line of credit. The company had only 1 out of 31 assets encumbered by a mortgage. Capital returns consisted of a $0.34 per-share third-quarter common dividend that was paid on September 17, 2026, and a declared $0.34 per-share fourth-quarter dividend payable on December 17, 2026.
Management increased 2026 FFO per diluted share guidance to $2.04 to $2.10 per share, with a midpoint of $2.07. The company described this as a $0.04 midpoint increase over prior guidance. The outlook excludes impacts from future acquisitions, dispositions, equity issuances or repurchases, debt financing or repayments, and is based on assumptions regarding leasing activity, rental rates, occupancy, interest rates, credit spreads, and acquisition and development activity.
Not in the filing
stated, not guessed- Gross margin
- GAAP or non-GAAP operating margin
- Cash flow from operating activities
- Free cash flow
- Share repurchases
- Segment revenue
- Revenue guidance
- Gross margin guidance
- Operating expense guidance
- Tax rate guidance
- Prior-release outlook for comparison with actual reported results
- Named executive quotes
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.