American Assets Trust Q2 FFO per share slips amid occupancy and expense pressures

Overview

• US REIT's Q2 revenue rose

• Q2 FFO per share fell to $0.51 from $0.52 a year earlier

• Company amended credit facility, raising borrowing capacity to $600 mln and extending maturities

Outlook

• American Assets Trust affirms 2026 FFO per diluted share guidance of $1.96 to $2.10

Result Drivers

• RENTAL RATE INCREASES - Co achieved record average rental rates across office, retail, and multifamily segments in Q2

• LEASING SPREADS - Office and retail leases signed in Q2 had average cash-basis rent increases of 9.1% and 3.0%, respectively

• OCCUPANCY AND EXPENSE PRESSURES - Co cited lower occupancy at certain properties and higher rental expenses as factors weighing on results

Company press release: ID:nGNX42WD81

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy."

• Wall Street's median 12-month price target for American Assets Trust Inc is $23.50, about 3.4% below its July 27 closing price of $24.33

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 40 three months ago

Reuters Recommended Reads

• July 27 - Kilroy Realty Q2 revenue falls on lower portfolio occupancy rates

• July 27 - REIT UDR sees 2026 FFO below estimate as higher costs weigh

• July 27 - Brixmor Q2 revenue slightly beats estimates, raises 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)