American Assets Trust raises low end of 2026 FFO guidance to $2.04 per share
Key Facts
American Assets Trust raised its 2026 guidance range for funds from operations per diluted share to $2.04–$2.10, an increase of $0.04 at the midpoint from the previous range of $1.96–$2.10, according to the third-quarter results published by the company. The update came as funds from operations per diluted share rose to $0.56 for the quarter, compared with $0.49 in the same period of 2025. For the first nine months, funds from operations were $1.57 per share, versus $1.53 a year earlier. Same-store cash net operating income also increased 8.3% year over year in the third quarter. The company had kept its previous guidance range in its second-quarter results announcement, with a midpoint of $2.03 per share, making the current increase a shift from the guidance it reaffirmed in July.
Total revenue was $114.284 million in the third quarter, compared with $109.578 million in the same period of 2025, according to the results statement. Most revenue came from rental income, which rose to $107.837 million from $102.222 million a year earlier. By contrast, other property income fell to $6.447 million from $7.356 million. These items showed diverging trends within revenue, as rental revenue growth exceeded the decline in other property income. At the operating level, same-store cash net operating income increased 2.3% in the first nine months, alongside the third-quarter growth of 8.3%. The second-quarter reading had shown a modest 0.3% year-over-year increase in same-store cash net operating income, while the metric fell 0.1% in the first half.
At the net income level, the company’s results showed a decline in the first nine months to $23.547 million, from $67.149 million in the same period of 2025. The company attributed the drop to a gain on the sale of Del Monte Center recorded in 2025, along with higher interest expense. It also cited lower occupancy at First & Main and 14 Acres and higher rental expenses among the factors affecting results. This trend differs from the increase in funds from operations per share during the period, which rose to $1.57 from $1.53. In a more recent comparison of operating performance, growth in same-store cash net operating income improved from 0.3% in the second quarter to 8.3% in the third quarter. The available figures do not include net income for the third quarter alone, so the comparison here is limited to the first nine months’ results.
In the second quarter, occupancy varied across property categories as of June 30, 2026. Office occupancy was 84.4%, compared with 82.0% on the same date in 2025, while retail occupancy reached 97.9%, compared with 97.7%. Multifamily apartment occupancy was 88.4%, versus 88.8% a year earlier. These indicators provide further detail alongside the improvement in same-store cash net operating income recorded later in the third quarter. On the financing side, liquidity totaled $589.6 million as of September 30, 2026, including $89.6 million in cash and cash equivalents and $500 million available under the credit facility. Only one of the company’s 31 properties was encumbered by a mortgage.
American Assets Trust also declared a fourth-quarter 2026 cash distribution of $0.34 per share. It set December 10 as the record date for eligible shareholders, with payment scheduled for December 17. The next milestone for investors is the third-quarter results call, scheduled for October 28, 2026, at 11:00 a.m. Eastern time. The company said its guidance is based on assumptions that include leasing activity, rents, occupancy levels, interest rates, credit spreads, and the timing of acquisitions and development. It added that actual results may differ materially from estimates. The company’s shares closed at $21.41 on October 26, according to EL7 data.