American Assets (AAT) Q2 2025 Earnings Transcript
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American Assets Trust (NYSE:AAT) management highlighted that the leasing pipeline is being driven by increased demand from technology and AI tenants, especially in the San Francisco office market. Executives stated that recent improvements in office leasing at One Beach and La Jolla Commons 3 are attributed to ongoing renovations and the addition of tenant amenities designed to meet demand for move-in ready, amenitized space. The company confirmed that the $0.30 per share pipeline of potential incremental FFO (non-GAAP) is primarily related to leasing up vacant office space in La Jolla Commons 3, One Beach, and suburban Bellevue assets, with signed but not yet commenced leases representing 5% of office GLA and expected to bolster future results. Management reiterated that acquisition capital is currently favored for multifamily or retail, with no imminent office investments anticipated, and surplus cash is being held for opportunistic deployment. Hotel weakness in Hawaii was directly linked to unfavorable currency exchange rates and subdued Japanese tourism; management noted the hotel continues to outperform its competitive set despite sector-wide headwinds.
Source Fool.com
