American Assets Trust (AAT) reported a solid first quarter of 2026, with Funds From Operations (FFO) per diluted share rising to $0.51, a $0.04 increase year-over-year. This growth was primarily driven by lower administrative expenses and increased rental contributions from various properties, including Plymouth and Pacific Ridge Apartments. The company’s office portfolio remains stable, with an overall leased rate of 84.5%, while retail assets achieved a remarkable 98% leased rate, setting a record average base rent of $30 per square foot.
The financial results underscore a resilient performance amid a mixed macroeconomic backdrop. Notably, the retail segment continues to show strength, with minimal lease expiration exposure, while the multifamily sector recorded a 3% increase in same-store cash NOI. However, the anticipated vacancy from Genentech’s decision to vacate 67,000 square feet at Lloyd District could impact office leasing targets, shifting expectations for year-end occupancy.
A key takeaway for market professionals is the reaffirmed full-year FFO guidance of $1.96 to $2.10 per share, indicating management’s confidence in maintaining stable portfolio performance amid ongoing leasing activities and capital deployment strategies.
Source: fool.com