American Assets Trust : Q1 2024 Supplemental Information

FIRST QUARTER 2024

Supplemental Information

Investor and Media Contact

American Assets Trust, Inc. Robert F. Barton

Executive Vice President and Chief Financial Officer 858-350-2607

American Assets Trust, Inc.'s Portfolio is concentrated in high-barrier-to-entry markets

with favorable supply/demand characteristics

	Office	Retail	Multifamily	Mixed-Use
Market	Square	Square	Units		Square	Suites
Feet	Feet		Feet
San Diego	1,590,552	1,322,200	1,453	(1)	-	-
Bellevue	1,032,683	-	-		-	-
Portland	912,592	44,236	657		-	-
Monterey	-	673,155	-		-	-
San Antonio	-	588,148	-		-	-
San Francisco	522,696	35,159	-		-	-
Oahu	-	429,718	-		93,925	369
Total	4,058,523	3,092,616	2,110		93,925	369

Square Feet

%

NOI % (2)

Note: Circled areas represent all markets in which American Assets Trust, Inc. currently owns and operates its real estate properties. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties.

Data is as of March 31, 2024.

1. Includes 120 RV spaces.
2. Percentage of Net Operating Income (NOI) calculated for the three months ended March 31, 2024. Reconciliation of NOI to net income is included in the Glossary of Terms.
3. Does not include mixed-use retail.

Office	4.1	million	57%	53%
Retail (3)	3.1	million	43%	25%
Totals	7.2	million

First Quarter 2024 Supplemental Information

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INDEX

FIRST QUARTER 2024 SUPPLEMENTAL INFORMATION

1. FINANCIAL HIGHLIGHTS

	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution	7
	Corporate Guidance	9
	Same-Store Net Operating Income (NOI)	10
	Same-Store Cash NOI Comparison excluding Redevelopment	11
	Same-Store Cash NOI Comparison with Redevelopment	12
	Cash NOI By Region	13
	Cash NOI Breakdown	14
	Property Revenue and Operating Expenses	15
	Segment Capital Expenditures	18
	Summary of Outstanding Debt	19
	Market Capitalization	20
	Summary of Development Opportunities	21
2.	PORTFOLIO DATA
	Property Report	23
	Office Leasing Summary	26
	Retail Leasing Summary	27
	Multifamily Leasing Summary	28
	Mixed-Use Leasing Summary	30
	Lease Expirations	31
	Portfolio Leased Statistics	33
	Top Tenants - Office	34
	Top Tenants - Retail	35

3. APPENDIX

Glossary of Terms

37

This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; defaults on, early terminations of or non- renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; investment returns from our developed properties may be less than anticipated; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; system failures or security incidents through cyber attacks; the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT, for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, refer to our most recent Annual Report on Form 10-K and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission.

First Quarter 2024 Supplemental Information

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FINANCIAL HIGHLIGHTS

First Quarter 2024 Supplemental Information

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CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except shares and per share data)		March 31, 2024			December 31, 2023
ASSETS		(unaudited)
Real estate, at cost	$	3,516,354	$	3,502,251
Operating real estate
Construction in progress		235,719			239,030
Held for development		487			487
		3,752,560			3,741,768
Accumulated depreciation		(1,061,670)			(1,036,453)
Net real estate		2,690,890			2,705,315
Cash and cash equivalents		98,553			82,888
Accounts receivable, net		7,606			7,624
Deferred rent receivable, net		90,884			89,210
Other assets, net		100,266			99,644
TOTAL ASSETS	$	2,988,199	$	2,984,681
LIABILITIES AND EQUITY
LIABILITIES:	$	74,691	$	74,669
Secured notes payable, net
Unsecured notes payable, net		1,615,608			1,614,958
Accounts payable and accrued expenses		65,292			61,312
Security deposits payable		8,862			8,880
Other liabilities and deferred credits, net		68,358			71,187
Total liabilities		1,832,811			1,831,006
Commitments and contingencies
EQUITY:
American Assets Trust, Inc. stockholders' equity
Common stock, $0.01 par value, 490,000,000 shares authorized, 60,894,491 and 60,895,786 shares issued
and outstanding at March 31, 2024 and December 31, 2023, respectively		609			609
Additional paid in capital		1,470,823			1,469,206
Accumulated dividends in excess of net income		(281,183)			(280,239)
Accumulated other comprehensive income		9,304			8,282
Total American Assets Trust, Inc. stockholders' equity		1,199,553			1,197,858
Noncontrolling interests		(44,165)			(44,183)
Total equity		1,155,388			1,153,675
TOTAL LIABILITIES AND EQUITY	$	2,988,199	$	2,984,681

First Quarter 2024 Supplemental Information

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CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except shares and per share data)

REVENUE:

Rental income

Other property income

Total revenue

EXPENSES:

Rental expenses

Real estate taxes

General and administrative

Depreciation and amortization

Total operating expenses

OPERATING INCOME

Interest expense, net

Other income (expense), net

NET INCOME

Net income attributable to restricted shares

Net income attributable to unitholders in the Operating Partnership

NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS

EARNINGS PER COMMON SHARE

Three Months Ended

March 31,

	2024			2023
$	105,021	$	102,710
	5,674			5,044
	110,695			107,754
	29,841			27,506
	11,246			11,632
	8,842			8,999
	30,217			29,901
	80,146			78,038
	30,549			29,716
	(16,255)			(15,729)
	10,329			6,679
	24,623			20,666
	(196)			(189)
	(5,167)			(4,341)
$	19,260	$	16,136

Basic income from operations attributable to common stockholders per share	$	0.32	$	0.27
Weighted average shares of common stock outstanding - basic		60,309,921			60,144,609
Diluted income from continuing operations attributable to common stockholders per share
$	0.32		$	0.27
Weighted average shares of common stock outstanding - diluted
	76,491,458			76,326,146

First Quarter 2024 Supplemental Information

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION

(Unaudited, amounts in thousands, except shares and per share data)		Three Months Ended
		March 31,
		2024			2023
Funds from Operations (FFO)(1)
Net income	$	24,623	$	20,666
Depreciation and amortization of real estate assets		30,217			29,901
FFO, as defined by NAREIT		54,840			50,567
Less: Nonforfeitable dividends on restricted stock awards		(192)			(187)
FFO attributable to common stock and common units	$	54,648		$	50,380
FFO per diluted share/unit	$	0.71	$	0.66
Weighted average number of common shares and common units, diluted (2)
	76,500,185			76,330,711
Funds Available for Distribution (FAD)(1)	$	44,155	$	37,232
Dividends
Dividends declared and paid	$	25,821	$	25,377
Dividends declared and paid per share/unit	$	0.335	$	0.330

FFO and FAD are non-GAAP supplemental earnings measures which we consider meaningful in measuring our operating performance.

First Quarter 2024 Supplemental Information

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FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED)

(Unaudited, amounts in thousands, except shares and per share data)		Three Months Ended
		March 31,
		2024			2023
Funds Available for Distribution (FAD)(1)
FFO	$	54,840	$	50,567
Adjustments:
Tenant improvements, leasing commissions and maintenance capital expenditures		(9,951)			(13,118)
Net effect of straight-line rents (3)		(2,299)			(2,219)
Amortization of net above (below) market rents (4)		(743)			(784)
Net effect of other lease assets (5)		48			54
Amortization of debt issuance costs and debt fair value adjustment		835			884
Non-cash compensation expense		1,617			2,035
Nonforfeitable dividends on restricted stock awards		(192)			(187)
FAD	$	44,155	$	37,232
Summary of Capital Expenditures
Tenant improvements and leasing commissions	$	5,384	$	6,004
Maintenance capital expenditures		4,567			7,114
	$	9,951	$	13,118

Notes:

1. See Glossary of Terms.
2. For the three months ended March 31, 2024 and 2023, the weighted average common shares and common units used to compute FFO per diluted share/unit include operating partnership common units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO per diluted share/unit include additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented.
3. Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.
4. Represents the adjustment related to the acquisition of buildings with above (below) market rents.
5. Represents adjustments related to amortization of lease incentives paid to tenants, amortization of lease intangibles, and straight-line rent expense for our leases at the Annex at The Landmark at One Market.

FFO and FAD are non-GAAP supplemental earnings measures which we consider meaningful in measuring our operating performance.

First Quarter 2024 Supplemental Information

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CORPORATE GUIDANCE

(Amounts in thousands, except share and per share data)
		Prior 2024 Guidance Range (1)(2)			Revised 2024 Guidance Range (2)
Funds from Operations (FFO):
Net income	$	54,633	$	65,330	$	57,667	$	65,320
Depreciation and amortization of real estate assets		113,470			113,470			114,520			114,520
FFO, as defined by NAREIT		168,103			178,800			172,187			179,840
Less: Nonforfeitable dividends on restricted stock awards		(772)			(772)			(770)			(770)
FFO attributable to common stock and units	$	167,331	$	178,028	$	171,417	$	179,070
Weighted average number of common shares and units, diluted
	76,406,801			76,406,801			76,525,480			76,525,480
FFO per diluted share, updated	$	2.19	$	2.33	$	2.24	$	2.34

Notes:

1. The Prior 2024 Guidance Range as reported in the company's Fourth Quarter 2023 Supplemental Information.
2. Management will discuss the company's revised guidance in more detail during tomorrow's earnings call. Except as discussed during the call, the company's revised guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, debt financing or repayments.

FFO is a non-GAAP supplemental earnings measure which we consider meaningful in measuring our operating performance.

These estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates and the amount and timing of acquisition and development activities. Our actual results may differ materially from these estimates.

First Quarter 2024 Supplemental Information

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SAME-STORE NET OPERATING INCOME (NOI)

(Unaudited, amounts in thousands)					Three Months Ended March 31, 2024 (1)
		Office			Retail			Multifamily			Mixed-Use			Total
Real estate rental revenue
Same-store	$	51,675	$	26,026	$	16,299	$	16,688	$	110,688
Non-same store		7			-			-			-			7
Total		51,682			26,026			16,299			16,688			110,695
Real estate expenses
Same-store		14,690			8,301			6,981			10,813			40,785
Non-same store		302			-			-			-			302
Total		14,992			8,301			6,981			10,813			41,087
Net Operating Income (NOI)
Same-store		36,985			17,725			9,318			5,875			69,903
Non-same store		(295)			-			-			-			(295)
Total	$	36,690		$	17,725		$	9,318		$	5,875		$	69,608
Same-store NOI
$	36,985		$	17,725		$	9,318		$	5,875		$	69,903
Net effect of straight-line rents (2)		(2,889)			204			195			191			(2,299)
Amortization of net above (below) market rents (3)		(483)			(260)			-			-			(743)
Net effect of other lease assets (4)		36			13			-			-			49
Tenant improvement reimbursements (5)		(134)			(1)			-			-			(135)
Same-store cash NOI (5)	$	33,515		$	17,681		$	9,513		$	6,066		$	66,775
Same-store cash NOI - Excluding Construction in Progress Write-off(6)
$	33,515	$	18,204	$	9,513	$	6,066	$	67,298

Notes:

1. Same-storeand non-same store classifications are determined based on properties held on March 31, 2024 and 2023. See Glossary of Terms.
2. Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances.
3. Represents the adjustment related to the acquisition of buildings with above (below) market rents.
4. Represents adjustments related to amortization of lease incentives paid to tenants, amortization of lease intangibles and straight-line rent expense for our leases at the Annex at The Landmark at One Market.
5. Tenant improvement reimbursements are excluded from same-store cash NOI to provide a more accurate measure of operating performance.
6. The company wrote off $0.5 million in non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment.

NOI and same-store cash NOI are non-GAAP supplemental earnings measures which we consider meaningful in measuring our operating performance. Reconciliations of NOI and same-store cash NOI to net income are included in the Glossary of Terms.

First Quarter 2024 Supplemental Information

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