Net income available to common stockholders of $19.3 million for the first quarter, or $0.32 per diluted share. Funds from Operations ("FFO") per diluted share increased 8% year-over-year for the first quarter to $0.71 per diluted share. Increased 2024 FFO per diluted share guidance to a range of $2.24 to $2.34 with a midpoint of $2.29, a 1% increase over prior guidance. SAN DIEGO, April 30, 2024 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE:AAT) (the "company") today reported financial results for its first quarter ended March 31, 2024. First Quarter Highlights Net income available to common stockholders of $19.3 million for the first quarter, or $0.32 per diluted share. FFO increased 8% year-over-year to $0.71 per diluted share for the first quarter. Same-store cash Net Operating Income ("NOI") increased 1.5% year-over-year for the first quarter. However, excluding a write-off of $0.5 million in the first quarter for non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment, same-store cash NOI increased 2.3% year-over-year for the first quarter. Increased 2024 FFO per diluted share guidance to a range of $2.24 to $2.34 with a midpoint of $2.29, a 1% increase over the initial 2024 guidance midpoint of $2.26. Leased approximately 80,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 11% and 8%, respectively, during the first quarter. Leased approximately 103,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 22% and 2%, respectively, during the first quarter. Financial Results (Unaudited, amounts in thousands, except per share data) Three Months Ended March 31     2024       2023   Net income attributable to American Assets Trust, Inc. stockholders $         19,260     $         16,136   Basic and diluted income attributable to common stockholders per share $         0.32     $         0.27   FFO attributable to common stock and common units $         54,648     $         50,380   FFO per diluted share and unit $         0.71     $         0.66   Net income attributable to common stockholders increased $3.1 million for the three months ended March 31, 2024 compared to the same period in 2023, primarily due to (i) a $10 million settlement payment received during the first quarter relating to building specifications for one of the existing buildings at our office project in University Town Center (San Diego) and (ii) a $0.7 million net increase in our office segment primarily due to higher annualized base rents at Torrey Reserve Campus and Solana Crossing, a one-time tax refund at First & Main and lease settlement fees received at Torrey Reserve Campus. These increases were offset by (i) a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at our Hassalo on Eighth property, (ii) $0.5 million in non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment and (iii) higher net interest expense of approximately $0.5 million primarily due to the $225 million Amended and Restated Term Loan Agreement FFO increased $4.3 million for the three months ended March 31, 2024 compared to the same period in 2023, primarily due to an increase in net settlement payments received during the first quarter of 2024, an increase in our office segment due to higher annualized base rents and an increase at Waikiki Beach Walk - Embassy Suites due to higher average occupancy and revenue per available room. These increases were offset by the non-recurring costs related to construction in progress written off in the first quarter and higher interest expense as described above. FFO is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release. Leasing The portfolio leased status as of the end of the indicated quarter was as follows:   March 31, 2024 December 31, 2023 March 31, 2023 Total Portfolio       Office 86.4% 86.0% 88.1% Retail 94.4% 94.3% 93.8% Multifamily 92.8% 92.3% 91.8% Mixed-Use:       Retail 95.4% 95.1% 95.0% Hotel 89.8% 85.2% 81.9%         Same-Store Portfolio     Office (1) 88.6% 88.2% 90.3% Retail 94.4% 94.3% 93.8% Multifamily 92.8% 92.3% 91.8% Mixed-Use:       Retail 95.4% 95.1% 95.0% Hotel 89.8% 85.2% 81.9%         (1) Same-store office leased percentages exclude One Beach Street due to significant redevelopment activity and land held for development. During the first quarter of 2024, the company signed 48 leases for approximately 234,000 square feet of office and retail space, as well as 326 multifamily apartment leases. Renewals accounted for 75% of the comparable office leases, 92% of the comparable retail leases, and 51% of the residential leases. Office and Retail The annualized base rent per leased square foot as of the end of the indicated quarter was as follows:     2nd Quarter 2023 3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 Office Weighted Average Portfolio $54.97 $55.54 $56.27 $55.72 Retail Weighted Average Portfolio $26.28 $26.34 $26.44 $26.65 On a comparable basis (i.e., leases for which there was a former tenant) our office and retail leasing spreads as of the end of the indicated quarter are shown below:     2nd Quarter 2023 3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 Office Cash Basis % Change Over Prior Rent (3.5)% 7.0% 22.4% 7.9% Straight-Line Basis % Change Over Prior Rent 4.5% 13.5% 30.1% 10.9%             Retail Cash Basis % Change Over Prior Rent 2.9% 8.2% 6.8% 1.9% Straight-Line Basis % Change Over Prior Rent 2.1% 18.7% 12.8% 22.3% On a comparable basis (i.e., leases for which there was a former tenant) during the first quarter of 2024 and trailing four quarters ended March 31, 2024, our office and retail leasing spreads are shown below:     Number of Leases Signed Comparable Leased Sq. Ft. Average Cash Basis % Change Over Prior Rent Average Cash Contractual Rent Per Sq. Ft. Prior Average Cash Contractual Rent Per Sq. Ft. Straight-Line Basis % Change Over Prior Rent Office Q1 2024 12 80,000 7.9% $59.57 $55.23 10.9% Last 4 Quarters 38 286,000 2.4% $68.92 $67.31 9.1%                 Retail Q1 2024 26 103,000 1.9% $38.03 $37.30 22.3% Last 4 Quarters 89 440,000 5.0% $34.22 $32.44 16.6% Multifamily The average monthly base rent per leased unit as of the end of the indicated quarter was as follows:   2nd Quarter 2023 3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 Average Monthly Base Rent per Leased Unit $         2,526   $         2,667   $         2,619   $         2,685   Same-Store Cash Net Operating Income For the three months ended March 31, 2024, same-store cash NOI increased 1.5%, compared to the three months ended March 31, 2023. The same-store cash NOI by segment was as follows (in thousands):   Three Months Ended (1)         March 31,           2024       2023     Change Cash Basis:             Office $         33,515     $         33,515             —   % Retail           17,681               17,699             (0.1 )   Multifamily           9,513               9,055             5.1     Mixed-Use           6,066               5,495             10.4     Same-store Cash NOI $         66,775     $         65,764             1.5   % (1) Same-store office portfolio excludes One Beach Street due to significant redevelopment activity and land held for development.