Net income available to common stockholders of $11.9 million and $31.2 million for the three and six months ended June 30, 2024, respectively, or $0.20 and $0.52 per diluted share, respectively. Funds from Operations ("FFO") per diluted share increased 2% and 6% year-over-year for the three and six months ended June 30, 2024, respectively, or $0.60 and $1.32 per diluted share, respectively. Increased 2024 FFO per diluted share guidance to a range of $2.48 to $2.54 with a midpoint of $2.51, a 9.6% increase over prior guidance. CEO Succession Planning - Ernest Rady to transition to Executive Chairman and Adam Wyll to transition to Chief Executive Officer, effective January 1, 2025. SAN DIEGO, July 30, 2024 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE:AAT) (the "company") today reported financial results for its second quarter ended June 30, 2024. Second Quarter Highlights Net income available to common stockholders of $11.9 million and $31.2 million for the three and six months ended June 30, 2024, respectively, or $0.20 and $0.52 per diluted share, respectively. FFO increased 2% and 6% year-over-year to $0.60 and $1.32 per diluted share for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. Same-store cash Net Operating Income ("NOI") increased 2.1% and 1.8% year-over-year for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. However, excluding a write-off of $0.5 million in the first quarter for non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment, same-store cash NOI increased 2.2% year-over-year for the six months ended June 30, 2024 compared to the same period in 2023. Increased 2024 FFO per diluted share guidance to a range of $2.48 to $2.54 with a midpoint of $2.51, a 9.6% increase over the prior 2024 guidance midpoint of $2.29. Leased approximately 53,000 comparable office square feet at an average straight-line basis and cash-basis contractual rent increase of 15% and 5%, respectively, during the second quarter. Leased approximately 64,000 comparable retail square feet at an average straight-line basis and cash-basis contractual rent increase of 34% and 6%, respectively, during the second quarter. Financial Results (Unaudited, amounts in thousands, except per share data) Three Months Ended June 30   Six Months Ended June 30,     2024     2023     2024     2023 Net income attributable to American Assets Trust, Inc. stockholders $ 11,904   $ 11,983   $ 31,164   $ 28,119 Basic and diluted income attributable to common stockholders per share $ 0.20   $ 0.20   $ 0.52   $ 0.47 FFO attributable to common stock and common units $ 46,113   $ 45,034   $ 100,761   $ 95,414 FFO per diluted share and unit $ 0.60   $ 0.59   $ 1.32   $ 1.25                         Net income attributable to common stockholders increased $3.0 million for the six months ended June 30, 2024 compared to the same period in 2023, primarily due to (i) a $10 million settlement payment received during the first quarter relating to building specifications for one of the existing buildings at our office project in University Town Center (San Diego), (ii) a $1.4 million net increase in our multifamily segment primarily due to an overall increase in average monthly base rent and an increase in occupancy and (iii) a $0.6 million net increase in our retail segment due to new tenant leases signed, scheduled rent increases and an increase in cost recoveries. These increases were offset by (i) a $6.3 million net settlement payment received on January 3, 2023 related to certain building systems at our Hassalo on Eighth property, (ii) a $1.0 million net decrease in our office segment due to lower occupancy and reduced annualized base rents within our Lloyd Portfolio, (iii) $0.5 million in non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment and (iv) higher net interest expense of approximately $0.4 million primarily due to the $225 million Amended and Restated Term Loan Agreement, partially offset by an increase in capitalized interest related to our development projects. FFO increased $1.1 million for the three months ended June 30, 2024 compared to the same period in 2023, primarily due to an increase in our multifamily segment due to higher occupancy and average monthly base rent and an increase in other income due to interest and investment income attributed to higher yield on our average cash balance during the period. These increases were offset by a decrease in our office segment due to lower occupancy and base rents within our Lloyd Portfolio. FFO is a non-GAAP supplemental earnings measure which the company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release. Leasing The portfolio leased status as of the end of the indicated quarter was as follows:   June 30, 2024 March 31, 2024 June 30, 2023 Total Portfolio       Office 86.6% 86.4% 87.4% Retail 94.5% 94.4% 94.6% Multifamily 90.0% 92.8% 85.9% Mixed-Use:       Retail 95.7% 95.4% 94.6% Hotel 88.1% 89.8% 83.2%         Same-Store Portfolio     Office (1) 88.8% 88.6% 89.6% Retail 94.5% 94.4% 94.6% Multifamily 90.0% 92.8% 85.9% Mixed-Use:       Retail 95.7% 95.4% 94.6% Hotel 88.1% 89.8% 83.2% (1) Same-store office leased percentages exclude One Beach Street due to significant redevelopment activity and land held for development.   During the second quarter of 2024, the company signed 37 leases for approximately 164,700 square feet of office and retail space, as well as 395 multifamily apartment leases. Renewals accounted for 83% of the comparable office leases, 94% of the comparable retail leases, and 61% of the residential leases. Office and Retail The annualized base rent per leased square foot as of the end of the indicated quarter was as follows:     3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 2nd Quarter 2024 Office Weighted Average Portfolio $55.54 $56.27 $55.72 $55.48 Retail Weighted Average Portfolio $26.34 $26.44 $26.65 $26.85             On a comparable basis (i.e., leases for which there was a former tenant) our office and retail leasing spreads as of the end of the indicated quarter are shown below:     3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 2nd Quarter 2024 Office Cash Basis % Change Over Prior Rent 7.0% 22.4% 7.9% 5.2% Straight-Line Basis % Change Over Prior Rent 13.5% 30.1% 10.9% 14.5%             Retail Cash Basis % Change Over Prior Rent 8.2% 6.8% 1.9% 5.8% Straight-Line Basis % Change Over Prior Rent 18.7% 12.8% 22.3% 34.4%             On a comparable basis (i.e., leases for which there was a former tenant) during the second quarter of 2024 and trailing four quarters ended June 30, 2024, our office and retail leasing spreads are shown below:     Number of Leases Signed Comparable Leased Sq. Ft. Average Cash Basis % Change Over Prior Rent Average Cash Contractual Rent Per Sq. Ft. Prior Average Cash Contractual Rent Per Sq. Ft. Straight-Line Basis % Change Over Prior Rent Office Q2 2024 12 53,000 5.2% $46.77 $44.46 14.5% Last 4 Quarters 38 219,000 8.4% $55.98 $51.66 14.2%                 Retail Q2 2024 16 64,000 5.8% $46.81 $44.25 34.4% Last 4 Quarters 85 408,000 5.6% $36.22 $34.12 21.4%                 Multifamily The average monthly base rent per leased unit as of the end of the indicated quarter was as follows:   3rd Quarter 2023 4th Quarter 2023 1st Quarter 2024 2nd Quarter 2024 Average Monthly Base Rent per Leased Unit $ 2,667   $ 2,619   $ 2,685   $ 2,711     Same-Store Cash Net Operating Income For the three and six months ended June 30, 2024, same-store cash NOI increased 2.1% and 1.8%, respectively, compared to the three and six months ended June 30, 2023. The same-store cash NOI by segment was as follows (in thousands):   Three Months Ended         Six Months Ended         June 30,         June 30,         2024   2023   Change   2024   2023   Change Cash Basis:                           Office $ 35,730   $ 35,778   (0.1 ) %   $ 69,244   $ 69,294   (0.1 ) % Retail   18,684     18,108   3.2         36,365     35,806   1.6     Multifamily   9,240     8,438   9.5         18,753     17,493   7.2     Mixed-Use   6,000     5,870   2.2         12,066     11,365   6.2     Same-store Cash NOI (1) $ 69,654   $ 68,194   2.1   %   $ 136,428   $ 133,958   1.8   % (1) Same-store office portfolio excludes One Beach Street due to significant redevelopment activity and land held for development.   Same-Store Cash Net Operating Income - Excluding Construction in Progress Write-off During the first quarter of 2024, the company wrote off $0.5 million in non-recurring costs incurred in prior periods relating to construction in progress for then-prospective construction within our retail segment. Excluding such non-recurring costs, same-store cash NOI increased 2.2% for the six months ended June 30, 2024, and same-store cash NOI by segment was as follows (in thousands):   Three Months Ended         Six Months Ended         June 30,         June 30,         2024   2023   Change   2024   2023   Change Cash Basis                           Office $ 35,730   $ 35,778   (0.1 ) %   $ 69,244   $ 69,294   (0.1 ) % Retail   18,684