American Assets Trust Inc (AAT) Reports Q3 2023 Financial Results: Net Income of $11. ...
Net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively.
Funds from Operations (FFO) per diluted share decreased 6% and increased 3% year-over-year for the three and nine months ended September 30, 2023, respectively.
Same-store cash Net Operating Income (NOI) increased 1.8% and 5.2% year-over-year for the three and nine months ended September 30, 2023, respectively.
Increased 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over prior guidance.
On October 24, 2023, American Assets Trust Inc (NYSE:AAT) reported its financial results for the third quarter ended September 30, 2023. The company reported net income available to common stockholders of $11.8 million and $39.9 million for the three and nine months ended September 30, 2023, respectively. This translates to $0.20 and $0.66 per diluted share, respectively.
Financial Performance
FFO per diluted share decreased 6% and increased 3% year-over-year for the three and nine months ended September 30, 2023, respectively, or $0.59 and $1.84 per diluted share, respectively. The company also increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 with a midpoint of $2.38, a 2.6% increase over prior guidance.
Leasing and Occupancy
During the third quarter, the company leased approximately 63,000 comparable office square feet and 132,000 comparable retail square feet. The average straight-line basis and cash-basis contractual rent increase were 14% and 7% for office space, and 19% and 8% for retail space, respectively.
Income Statement Highlights
Net income attributable to American Assets Trust, Inc. stockholders increased $6.0 million for the nine months ended September 30, 2023 compared to the same period in 2022. This was primarily due to a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at the Hassalo on Eighth property, a $3.4 million net increase in the retail segment due to new tenant leases, and a $2.2 million net increase in the office segment due to higher annualized base rents.
Balance Sheet and Liquidity
As of September 30, 2023, the company had gross real estate assets of $3.7 billion and liquidity of $490.0 million, comprised of cash and cash equivalents of $90.0 million and $400.0 million of availability on its line of credit.
Dividends
The company declared dividends on its shares of common stock of $0.33 per share for the third quarter of 2023. In addition, the company has declared a dividend on its common stock of $0.33 per share for the fourth quarter of 2023.
Guidance
The company increased its 2023 FFO per diluted share guidance to a range of $2.36 to $2.40 per share, an increase of 2.6% at midpoint from the prior 2023 FFO per diluted share guidance range of $2.28 to $2.36 per share.
This article first appeared on GuruFocus.
