American Assets Trust, Inc. (AAT) reported its financial results for the third quarter of 2025, revealing a decline in both revenue and net income compared to the same period in 2024. Total revenue for the three months ended September 30, 2025, was $109.6 million, down 11% from $122.8 million in the prior year. This decrease was primarily driven by a 3% drop in rental income, which totaled $102.2 million, and a significant 57% decline in other property income, which fell to $7.4 million. For the nine months ended September 30, 2025, total revenue was $326.1 million, a decrease of 5% from $344.4 million in the same period last year.
Net income for the third quarter was $5.9 million, a substantial decrease of 72% from $21.3 million in the same quarter of 2024. The decline in net income was attributed to lower property operating income, which decreased by 18% to $66.3 million, and a rise in interest expenses, which increased by 8% to $19.8 million. For the nine-month period, net income increased by 10% to $67.1 million, bolstered by a $44.5 million gain from the sale of Del Monte Center, which was sold for approximately $123.5 million in February 2025.
In terms of operational metrics, AAT's portfolio consisted of 31 properties as of September 30, 2025, with a total of approximately 6.8 million rentable square feet. The company reported a decrease in occupancy rates across its segments, with office occupancy at 81.9%, down from 87.0% a year earlier, while retail occupancy improved to 97.9% from 94.5%. The multifamily segment reported an occupancy rate of 89.7%, slightly down from 90.3%. The company also acquired Genesee Park, a 192-unit apartment community, for $67.9 million during the quarter, funded primarily through proceeds from the Del Monte Center sale.
Looking ahead, AAT aims to enhance its earnings and cash flows through strategic growth in its same-store portfolio and potential acquisitions. The company is actively pursuing redevelopment opportunities in its existing properties and plans to evaluate new acquisition prospects in its core markets, which include Southern California, Northern California, Washington, Oregon, and Hawaii. However, the company acknowledged that its growth strategies are subject to market conditions and other economic factors that could impact its operational performance.
About American Assets Trust, Inc.
American Assets Trust, Inc. is a vertically integrated real estate investment trust (REIT) owning, operating, acquiring, and developing office, retail, multifamily, and mixed-use properties. Its portfolio focuses on high-quality assets in high-barrier-to-entry markets across California, Washington, Oregon, Texas, and Hawaii. The company targets affluent neighborhoods and business centers, leveraging market expertise and long-standing relationships to enhance property value through strategic acquisitions, development, repositioning, and active management.
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