American Assets Trust stock gets higher FFO outlook after Q3

American Assets Trust raised its full-year 2026 funds-from-operations outlook after third-quarter operating gains, while refinancing costs and office vacancies remained key risks. A TradingKey summary published by Mitrade dated October 28 said management lifted the FFO range to 2.04 to 2.10 US dollars per diluted share, putting the midpoint at 2.07 US dollars.

Higher outlook meets financing pressure

Third-quarter FFO reached 0.56 US dollars per diluted share, about 0.05 US dollars above the company's internal projection. FFO excluding one-time items was 0.53 US dollars per share, while same-store cash net operating income increased 8.3 percent year over year. Excluding property-tax refunds and collection of a reserved office receivable, growth was 5.1 percent.

Leasing trends provided support across several portfolios. Office occupancy improved to approximately 86 percent leased, retail remained 98 percent leased, and San Diego multifamily properties excluding the RV park were 97 percent leased and 95 percent occupied. Executed office leases that had not yet started contributed an estimated 12 million US dollars in annualized base rent.

Debt costs remain a watchpoint

Management expects borrowing costs to rise when a March 2027 debt maturity is refinanced and a term-loan swap expires in January. The company ended the quarter with approximately 590 million US dollars of liquidity, comprising cash and availability under its revolving credit facility. Quarterly annualized net debt to EBITDA stood at 6.4 times, while interest and fixed-charge coverage was 3.3 times.

The operating update leaves investors weighing stronger leasing and cash NOI against refinancing exposure and the pace of office lease-up. The quarterly dividend was set at 0.34 US dollars per share, payable December 17 to shareholders of record on December 10.