American Assets Trust, Inc. (NYSE: AAT) (the “company”) today
reported financial results for its fourth quarter and year ended
December 31, 2019.
Fourth Quarter Highlights
- Net income available to common stockholders of $12.8
million and $45.7 million for the three months and year ended
December 31, 2019, respectively, or $0.22 and $0.84 per
diluted share, respectively
- Funds From Operations increased 19% and 5%
year-over-year to $0.56 and $2.20 per diluted share for the three
months and year ended December 31, 2019, respectively,
compared to the same periods in 2018
- Same-store cash NOI increased 2.8% and decreased 0.1%
year-over-year for the three months and year ended
December 31, 2019, respectively, compared to the same periods
in 2018. Excluding lease termination fees for the three months and
year ended December 31, 2019, same-store cash NOI would have
been 2.3% and 1.3%, respectively.
- Leased approximately 81,000 comparable office square
feet at an average straight-line basis and cash-basis contractual
rent increase of 59% and 28%, respectively, during the three months
ended December 31, 2019
- Leased approximately 33,000 comparable retail square
feet at an average straight-line basis and cash-basis contractual
rent increase of 8% and decrease of 4%, respectively, during the
three months ended December 31, 2019
Financial ResultsNet income attributable to
common stockholders was $12.8 million, or $0.22 per basic and
diluted share for the three months ended December 31, 2019
compared to $6.7 million, or $0.14 per basic and diluted share for
the three months ended December 31, 2018. For the year ended
December 31, 2019, net income attributable to common stockholders
was $45.7 million, or $0.84 per basic and diluted share compared to
$19.7 million, or $0.42 per basic and diluted share, for the year
ended December 31, 2018. The quarter-over-quarter and
year-over-year increase is primarily due to a decrease in
depreciation and demolition expense at Waikele Center attributed to
the redevelopment of the former Kmart space, an increase in lease
termination fees at Carmel Mountain Plaza attributed to the
termination of our former ground lease, and an increase in
annualized base rents at The Landmark at One Market, City Center
Bellevue, and Lloyd District Portfolio.
During the fourth quarter of 2019, the company generated funds
from operations (“FFO”) for common stockholders of $42.9 million,
or $0.56 per diluted share, compared to $30.2 million, or $0.47 per
diluted share, for the fourth quarter of 2018. For the year
ended December 31, 2019, the company generated FFO for common
stockholders of $155.4 million, or $2.20 per diluted
share, compared to $134.0 million, or $2.09 per
diluted share, for the year ended December 31, 2018. The
increase in FFO from the corresponding periods in 2018 was
primarily due to the increase in annualized base rents at The
Landmark at One Market, City Center Bellevue, and Lloyd District
Portfolio, an increase in lease termination fees at Carmel Mountain
Plaza attributed to the termination of our former ground lease, and
the acquisition of La Jolla Commons on June 20, 2019 partially
offset by the expiration of the Kmart lease at Waikele Center on
June 30, 2018.
FFO is a non-GAAP supplemental earnings measure which the
company considers meaningful in measuring its operating
performance. A reconciliation of FFO to net income is
attached to this press release.
Leasing
The portfolio leased status as of the end of the indicated
quarter was as follows:
|
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
Total
Portfolio |
|
|
|
Office |
95.0% |
94.7% |
90.9% |
Retail |
97.8% |
98.0% |
93.9% |
Multifamily |
92.8% |
90.5% |
93.6% |
Mixed-Use: |
|
|
|
Retail |
97.9% |
98.0% |
96.1% |
Hotel |
91.7% |
92.1% |
93.0% |
|
|
|
|
Same-Store
Portfolio |
|
|
|
Office (1) |
93.9% |
95.5% |
90.9% |
Retail (2) |
97.6% |
97.7% |
92.9% |
Multifamily |
92.8% |
90.5% |
93.6% |
(1) Same-store office leased percentages includes the 830
building at Lloyd District Portfolio which was placed into
operations on August 1, 2019 after renovating the building.
Same-store office leased percentages excludes La Jolla Commons,
which was acquired on June 20, 2019. La Jolla Commons will be
included in same-store office leased percentages commencing in the
third quarter of 2020.(2) Same-store retail leased percentages
exclude Waikele Center, due to significant redevelopment
activity.
During the fourth quarter of 2019, the company signed 30 leases
for approximately 193,300 square feet of office and retail space,
as well as 483 multifamily apartment leases. Renewals
accounted for 56% of the comparable office leases, 80% of the
comparable retail leases, and 53% of the residential leases.
Office and RetailOn a comparable space basis (i.e. leases for
which there was a former tenant) during the fourth quarter of 2019
and trailing four quarters ended December 31, 2019, our retail
and office 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 |
Q4 2019 |
9 |
81,000 |
28.1% |
$56.13 |
$43.82 |
58.5% |
Last 4 Quarters |
45 |
276,000 |
17.2% |
$52.76 |
$45.04 |
34.1% |
|
|
|
|
|
|
|
|
Retail |
Q4 2019 |
10 |
33,000 |
(3.9)% |
$53.80 |
$55.97 |
8.0% |
Last 4 Quarters |
52 |
149,000 |
2.0% |
$47.82 |
$46.86 |
11.4% |
MultifamilyThe average monthly base rent per leased unit for
same-store properties for the fourth quarter of 2019 was $2,089
compared to an average monthly base rent per leased unit of $2,048
for the fourth quarter of 2018, an increase of approximately
2%.
Same-Store Cash Net Operating IncomeFor the
three months and year ended December 31, 2019, same-store cash
NOI increased 2.8% and decreased 0.1%, respectively, compared to
the three months and year ended December 31, 2018. The same-store
cash NOI by segment was as follows (in thousands):
|
Three Months Ended (2) |
|
|
|
|
Year Ended (3) |
|
|
|
|
December 31, |
|
|
|
|
December 31, |
|
|
|
|
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
Cash
Basis: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Office (1) |
19,049 |
|
|
17,461 |
|
|
9.1 |
|
|
|
75,116 |
|
|
73,601 |
|
|
2.1 |
|
|
Retail (1) |
$ |
15,896 |
|
|
$ |
15,897 |
|
|
— |
|
% |
|
$ |
60,774 |
|
|
$ |
62,574 |
|
|
(2.9 |
) |
% |
Multifamily |
6,938 |
|
|
7,388 |
|
|
(6.1 |
) |
|
|
30,291 |
|
|
30,236 |
|
|
0.2 |
|
|
Mixed-Use |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Same-store Cash NOI (4) |
$ |
41,883 |
|
|
$ |
40,746 |
|
|
2.8 |
|
% |
|
$ |
166,181 |
|
|
$ |
166,411 |
|
|
(0.1 |
) |
% |
(1) Same-store cash NOI for the three months and year
ended December 31, 2018 includes cash lease termination fees
received of $0.2 million and $3.5 million, respectively. However,
the lease termination fees for the year ended December 31, 2019
recognized at Carmel Mountain Plaza during the first quarter 2019
were non-cash lease termination fees. Excluding lease termination
fees for the three months and year ended December 31, 2019,
Office same-store cash NOI would have been 7.4% and 4.5%,
respectively.
(2) Same-store portfolio excludes (i) Waikele Center due
to significant redevelopment activity; (ii) La Jolla Commons, which
was acquired on June 20, 2019; (iii) Waikiki Beach Walk - Embassy
Suites™ and Waikiki Beach Walk - Retail, due to significant
spalling repair activity; and (iv) land held for development.
(3) Same-store portfolio excludes (i) Waikele Center due
to significant redevelopment activity; (ii) Torrey Point, which was
placed into operations and became available for occupancy in August
2018; (iii) La Jolla Commons, which was acquired on June 20, 2019;
(iv) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk -
Retail, due to significant spalling repair activity; and (v) land
held for development.
(4) Excluding lease termination fees for the three months
and year ended December 31, 2019, same-store cash NOI would
have been 2.3% and 1.3%, respectively.
Same-store cash NOI is a non-GAAP supplemental earnings measure
which the company considers meaningful in measuring its operating
performance. A reconciliation of same-store cash NOI to net
income is attached to this press release.
Balance Sheet and LiquidityAt December 31,
2019, the company had gross real estate assets of $3.2 billion and
liquidity of $449.3 million, comprised of cash and cash equivalents
of $99.3 million and $350.0 million of availability on its line of
credit.
For the quarter ended December 31, 2019, the company issued
29,825 shares of common stock through its at-the-market equity
program at a weighted average price per share of $47.53, resulting
in net proceeds of $1.3 million. We intend to use the proceeds
primarily to fund development activities at Lloyd District
Portfolio, Waikele Center and La Jolla Commons.
DividendsThe company declared dividends on its
shares of common stock of $0.30 per share for the fourth quarter of
2019. The dividends were paid on December 26, 2019.
In addition, the company has declared a dividend on its common
stock of $0.30 per share for the first quarter of 2020. The
dividend will be paid on March 26, 2020 to stockholders of
record on March 12, 2020.
GuidanceThe company affirms its guidance range
for 2020 FFO per diluted share of $2.38 to $2.46 per share, a
midpoint increase of 10% from 2019 FFO per diluted share of $2.20
per share. The company's guidance excludes any impact from future
acquisitions, dispositions, equity issuances or repurchases, future
debt financings or repayments, except that the company assumes the
payoff of the mortgage debt on Torrey Reserve - VCI, VCII, VCIII,
Solana Crossing I-II and Solana Beach Towne Centre without penalty
or premium.
The foregoing estimates are forward-looking and reflect
management's view of current and future market conditions,
including certain assumptions with respect to leasing activity,
rental rates, occupancy levels, interest rates, credit spreads and
the amount and timing of acquisition and development
activities. The company's actual results may differ
materially from these estimates.
Conference CallThe company will hold a
conference call to discuss the results for the fourth quarter and
year end of 2019 on Wednesday, February 12, 2020 at 8:00 a.m.
Pacific Time (“PT”). To participate in the event by
telephone, please dial 1-877-868-5513 and use the pass code
8154834. A telephonic replay of the conference call will be
available beginning at 2:00 p.m. PT on Wednesday, February 12,
2020 through Wednesday, February 19, 2020. To access the
replay, dial 1-855-859-2056 and use the pass code 8154834. A
live on-demand audio webcast of the conference call will be
available on the company's website at
www.americanassetstrust.com. A replay of the call will also
be available on the company's website.
Supplemental InformationSupplemental financial
information regarding the company's fourth quarter and year end
2019 results may be found on the “Investors” page of the company's
website at www.americanassetstrust.com. This supplemental
information provides additional detail on items such as property
occupancy, financial performance by property and debt maturity
schedules.
Financial InformationAmerican Assets
Trust, Inc.Consolidated Balance
Sheets(In Thousands, Except Share
Data)
|
December 31, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
|
Real estate, at cost |
|
|
|
|
|
Operating real estate |
$ |
3,096,886 |
|
|
$ |
2,549,571 |
|
Construction in progress |
|
91,264 |
|
|
|
71,228 |
|
Held for development |
|
547 |
|
|
|
9,392 |
|
|
|
3,188,697 |
|
|
|
2,630,191 |
|
Accumulated depreciation |
|
(665,222 |
) |
|
|
(590,338 |
) |
Net real estate |
|
2,523,475 |
|
|
|
2,039,853 |
|
Cash and cash equivalents |
|
99,303 |
|
|
|
47,956 |
|
Restricted cash |
|
10,148 |
|
|
|
9,316 |
|
Accounts receivable, net |
|
12,016 |
|
|
|
9,289 |
|
Deferred rent receivables, net |
|
52,171 |
|
|
|
39,815 |
|
Other assets, net |
|
93,220 |
|
|
|
52,021 |
|
Total assets |
$ |
2,790,333 |
|
|
$ |
2,198,250 |
|
Liabilities and
equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Secured notes payable, net |
$ |
161,879 |
|
|
$ |
182,572 |
|
Unsecured notes payable, net |
|
1,195,780 |
|
|
|
1,045,863 |
|
Unsecured line of credit, net |
|
— |
|
|
|
62,337 |
|
Accounts payable and accrued expenses |
|
62,576 |
|
|
|
46,616 |
|
Security deposits payable |
|
8,316 |
|
|
|
8,844 |
|
Other liabilities and deferred credits, net |
|
68,110 |
|
|
|
49,547 |
|
Total liabilities |
|
1,496,661 |
|
|
|
1,395,779 |
|
Commitments and contingencies |
|
|
|
|
|
Equity: |
|
|
|
|
|
American Assets Trust, Inc. stockholders' equity |
|
|
|
|
|
Common stock, $0.01 par value, 490,000,000 shares authorized,
60,068,228 and 47,335,409 shares issued and outstanding at December
31, 2019 and December 31, 2018, respectively |
|
601 |
|
|
|
474 |
|
Additional paid-in capital |
|
1,452,014 |
|
|
|
920,661 |
|
Accumulated dividends in excess of net income |
|
(144,378 |
) |
|
|
(128,778 |
) |
Accumulated other comprehensive income |
|
5,680 |
|
|
|
10,620 |
|
Total American Assets Trust, Inc. stockholders' equity |
|
1,313,917 |
|
|
|
802,977 |
|
Noncontrolling interests |
|
(20,245 |
) |
|
|
(506 |
) |
Total equity |
|
1,293,672 |
|
|
|
802,471 |
|
Total liabilities and
equity |
$ |
2,790,333 |
|
|
$ |
2,198,250 |
|
American Assets Trust, Inc.Unaudited
Consolidated Statements of Operations(In
Thousands, Except Shares and Per Share Data)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue: |
|
|
|
|
|
|
|
Rental income |
$ |
94,231 |
|
|
$ |
78,365 |
|
|
$ |
343,865 |
|
|
$ |
309,537 |
|
Other property income |
4,716 |
|
|
4,240 |
|
|
22,876 |
|
|
21,330 |
|
Total revenue |
98,947 |
|
|
82,605 |
|
|
366,741 |
|
|
330,867 |
|
Expenses: |
|
|
|
|
|
|
|
Rental expenses |
25,356 |
|
|
23,797 |
|
|
91,967 |
|
|
86,482 |
|
Real estate taxes |
10,750 |
|
|
9,012 |
|
|
40,013 |
|
|
34,973 |
|
General and administrative |
6,376 |
|
|
6,645 |
|
|
24,871 |
|
|
22,784 |
|
Depreciation and amortization |
26,472 |
|
|
21,060 |
|
|
96,205 |
|
|
107,093 |
|
Total operating expenses |
68,954 |
|
|
60,514 |
|
|
253,056 |
|
|
251,332 |
|
Operating
income |
29,993 |
|
|
22,091 |
|
|
113,685 |
|
|
79,535 |
|
Interest expense |
(13,796 |
) |
|
(12,861 |
) |
|
(54,008 |
) |
|
(52,248 |
) |
Gain on sale of real estate |
— |
|
|
— |
|
|
633 |
|
|
— |
|
Other income (expense), net |
288 |
|
|
(21 |
) |
|
(122 |
) |
|
(85 |
) |
Net
income |
16,485 |
|
|
9,209 |
|
|
60,188 |
|
|
27,202 |
|
Net income attributable to restricted shares |
(104 |
) |
|
(96 |
) |
|
(381 |
) |
|
(311 |
) |
Net income attributable to unitholders in the Operating
Partnership |
(3,536 |
) |
|
(2,440 |
) |
|
(14,089 |
) |
|
(7,205 |
) |
Net income attributable to American Assets Trust, Inc.
stockholders |
$ |
12,845 |
|
|
$ |
6,673 |
|
|
$ |
45,718 |
|
|
$ |
19,686 |
|
|
|
|
|
|
|
|
|
Net income per
share |
|
|
|
|
|
|
|
Basic income attributable to common stockholders per share |
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.84 |
|
|
$ |
0.42 |
|
Weighted average shares of common stock outstanding - basic |
59,663,771 |
|
|
46,967,778 |
|
|
54,110,949 |
|
|
46,950,812 |
|
|
|
|
|
|
|
|
|
Diluted income attributable to common stockholders per share |
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.84 |
|
|
$ |
0.42 |
|
Weighted average shares of common stock outstanding - diluted |
76,054,319 |
|
|
64,145,386 |
|
|
70,786,132 |
|
|
64,136,559 |
|
|
|
|
|
|
|
|
|
Dividends declared per
common share |
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Funds From
OperationsThe company's FFO attributable to common
stockholders and operating partnership unitholders and
reconciliation to net income is as follows (in thousands except
shares and per share data, unaudited):
|
Three Months Ended |
|
Year Ended |
|
December 31, 2019 |
|
December 31, 2019 |
Funds From Operations
(FFO) |
|
|
|
|
|
Net income |
$ |
16,485 |
|
|
$ |
60,188 |
|
Depreciation and amortization
of real estate assets |
|
26,472 |
|
|
|
96,205 |
|
Gain on sale of real
estate |
|
— |
|
|
|
(633 |
) |
FFO, as defined by NAREIT |
$ |
42,957 |
|
|
$ |
155,760 |
|
Less: Nonforfeitable dividends
on restricted stock awards |
|
(103 |
) |
|
|
(376 |
) |
FFO attributable to common
stock and units |
$ |
42,854 |
|
|
$ |
155,384 |
|
FFO per diluted
share/unit |
$ |
0.56 |
|
|
$ |
2.20 |
|
Weighted average number of
common shares and units, diluted |
|
76,056,823 |
|
|
|
70,788,597 |
|
Reconciliation of Same-Store Cash NOI to Net
IncomeThe company's reconciliation of Same-Store Cash NOI
to Net Income is as follows (in thousands, unaudited):
|
Three Months Ended (1) |
|
Year Ended (2) |
|
December 31, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Same-store cash NOI |
$ |
41,883 |
|
|
$ |
40,746 |
|
|
$ |
166,181 |
|
|
$ |
166,411 |
|
Non-same-store cash NOI |
14,573 |
|
|
7,727 |
|
|
46,132 |
|
|
37,259 |
|
Tenant improvement reimbursements (3) |
3,471 |
|
|
54 |
|
|
11,420 |
|
|
4,275 |
|
Cash NOI |
$ |
59,927 |
|
|
$ |
48,527 |
|
|
$ |
223,733 |
|
|
$ |
207,945 |
|
Non-cash revenue and other operating expenses (4) |
2,914 |
|
|
1,269 |
|
|
11,028 |
|
|
1,467 |
|
General and administrative |
(6,376 |
) |
|
(6,645 |
) |
|
(24,871 |
) |
|
(22,784 |
) |
Depreciation and amortization |
(26,472 |
) |
|
(21,060 |
) |
|
(96,205 |
) |
|
(107,093 |
) |
Interest expense |
(13,796 |
) |
|
(12,861 |
) |
|
(54,008 |
) |
|
(52,248 |
) |
Gain on sale of real estate |
— |
|
|
— |
|
|
633 |
|
|
— |
|
Other income (expense), net |
288 |
|
|
(21 |
) |
|
(122 |
) |
|
(85 |
) |
Net income |
$ |
16,485 |
|
|
$ |
9,209 |
|
|
$ |
60,188 |
|
|
$ |
27,202 |
|
|
|
|
|
|
|
|
|
Number of properties included in same-store analysis |
25 |
|
25 |
|
24 |
|
23 |
(1) Same-store portfolio includes the 830 building at
Lloyd District Portfolio which was placed into operations on August
1, 2019 after renovating the building. Same-store portfolio
excludes (i) Waikele Center, due to significant redevelopment
activity; (ii) La Jolla Commons, which was acquired on June 20,
2019; (iii) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach
Walk - Retail, due to significant spalling repair activity and (iv)
land held for development.(2) Same-store portfolio includes
the 830 building at Lloyd District Portfolio which was placed into
operations on August 1, 2019 after renovating the building.
Same-store portfolio excludes (i) Waikele Center, due to
significant redevelopment activity; (ii) Torrey Point, which was
placed into operations and became available for occupancy in August
2018; (iii) La Jolla Commons, which was acquired on June 20, 2019;
(iv) Waikiki Beach Walk - Embassy Suites™ and Waikiki Beach Walk -
Retail, due to significant spalling repair activity and (v) land
held for development.(3) Tenant improvement reimbursements
are excluded from same-store cash NOI to provide a more accurate
measure of operating performance.(4) Represents adjustments
related to the straight-line rent income recognized during the
period offset by cash received during the period and the provision
for bad debts recorded for deferred rent receivable balances; the
amortization of above (below) market rents, the amortization of
lease incentives paid to tenants, the amortization of other lease
intangibles, lease termination fees at Carmel Mountain Plaza, and
straight-line rent expense for our lease of the Annex at The
Landmark at One Market.
Reported results are preliminary and not final until the filing
of the company's Form 10-K with the Securities and Exchange
Commission and, therefore, remain subject to adjustment.
Use of Non-GAAP InformationFunds from
OperationsThe company calculates FFO in accordance with the
standards established by the National Association of Real Estate
Investment Trusts, or NAREIT. FFO represents net income (computed
in accordance with GAAP), excluding gains (or losses) from sales of
depreciable operating property, impairment losses, real estate
related depreciation and amortization (excluding amortization of
deferred financing costs) and after adjustments for unconsolidated
partnerships and joint ventures.
FFO is a supplemental non-GAAP financial measure. Management
uses FFO as a supplemental performance measure because it believes
that FFO is beneficial to investors as a starting point in
measuring the company's operational performance. Specifically, in
excluding real estate related depreciation and amortization and
gains and losses from property dispositions, which do not relate to
or are not indicative of operating performance, FFO provides a
performance measure that, when compared year-over-year, captures
trends in occupancy rates, rental rates and operating costs. The
company also believes that, as a widely recognized measure of the
performance of REITs, FFO will be used by investors as a basis to
compare the company's operating performance with that of other
REITs. However, because FFO excludes depreciation and amortization
and captures neither the changes in the value of the company's
properties that result from use or market conditions nor the level
of capital expenditures and leasing commissions necessary to
maintain the operating performance of the company's properties, all
of which have real economic effects and could materially impact the
company's results from operations, the utility of FFO as a measure
of the company's performance is limited. In addition, other equity
REITs may not calculate FFO in accordance with the NAREIT
definition as the company does, and, accordingly, the company's FFO
may not be comparable to such other REITs' FFO. Accordingly,
FFO should be considered only as a supplement to net income as a
measure of the company's performance. FFO should not be used as a
measure of the company's liquidity, nor is it indicative of funds
available to fund the company's cash needs, including the company's
ability to pay dividends or service indebtedness. FFO also should
not be used as a supplement to or substitute for cash flow from
operating activities computed in accordance with GAAP.
Cash Net Operating IncomeThe company uses cash net operating
income ("NOI") internally to evaluate and compare the operating
performance of the company's properties. The company believes
cash NOI provides useful information to investors regarding the
company's financial condition and results of operations because it
reflects only those income and expense items that are incurred at
the property level, and when compared across periods, can be used
to determine trends in earnings of the company's properties as this
measure is not affected by (1) the non-cash revenue and expense
recognition items, (2) the cost of funds of the property
owner, (3) the impact of depreciation and amortization
expenses as well as gains or losses from the sale of operating real
estate assets that are included in net income computed in
accordance with GAAP or (4) general and administrative
expenses and other gains and losses that are specific to the
property owner. The company believes the exclusion of these
items from net income is useful because the resulting measure
captures the actual revenue generated and actual expenses incurred
in operating the company's properties as well as trends in
occupancy rates, rental rates and operating costs. Cash NOI is
a measure of the operating performance of the company's properties
but does not measure the company's performance as a whole.
Cash NOI is therefore not a substitute for net income as computed
in accordance with GAAP.
Cash NOI, is a non-GAAP financial measure of performance.
The company defines cash NOI as operating revenues (rental income,
tenant reimbursements, lease termination fees, ground lease rental
income and other property income) less property and related
expenses (property expenses, ground lease expense, property
marketing costs, real estate taxes and insurance), adjusted for
non-cash revenue and operating expense items such as straight-line
rent, amortization of lease intangibles, amortization of lease
incentives and other adjustments. Cash NOI also excludes
general and administrative expenses, depreciation and amortization,
interest expense, other nonproperty income and losses,
acquisition-related expense, gains and losses from property
dispositions, extraordinary items, tenant improvements, and leasing
commissions. Other REITs may use different methodologies for
calculating cash NOI, and accordingly, the company's cash NOI may
not be comparable to the cash NOIs of other REITs.
About American Assets Trust, Inc.American
Assets Trust, Inc. is a full service, vertically integrated and
self-administered real estate investment trust, or REIT,
headquartered in San Diego, California. The company has over
50 years of experience in acquiring, improving, developing and
managing premier retail, office and residential properties
throughout the United States in some of the nation’s most
dynamic, high-barrier-to-entry markets primarily in Southern
California, Northern California, Oregon, Washington,
Texas and Hawaii. The company's retail portfolio
comprises approximately 3.1 million rentable square feet, and its
office portfolio comprises approximately 3.4 million square feet.
In addition, the company owns one mixed-use property (including
approximately 97,000 rentable square feet of retail space and a
369-room all-suite hotel) and 2,112 multifamily units. In 2011, the
company was formed to succeed to the real estate business of
American Assets, Inc., a privately held corporation founded in 1967
and, as such, has significant experience, long-standing
relationships and extensive knowledge of its core markets,
submarkets and asset classes. For additional information, please
visit www.americanassetstrust.com.
Forward Looking StatementsThis press release
may contain forward-looking statements within the meaning of the
federal securities laws, which are based on current expectations,
forecasts and assumptions that involve risks and uncertainties that
could cause actual outcomes and results to differ materially.
Forward-looking statements relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not
historical facts. In some cases, you can identify forward-looking
statements by the use of forward-looking terminology such as “may,”
“will,” “should,” “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” or “potential” or the negative
of these words and phrases or similar words or phrases which are
predictions of or indicate future events or trends and which do not
relate solely to historical matters. While forward-looking
statements reflect the company's good faith beliefs, assumptions
and expectations, they are not guarantees of future
performance. For a further discussion of these and other
factors that could cause the company's future results to differ
materially from any forward-looking statements, see the section
entitled “Risk Factors” in the company's most recent annual report
on Form 10-K, and other risks described in documents subsequently
filed by the company from time to time with the Securities and
Exchange Commission. The company disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes.
Source: American Assets Trust, Inc.
Investor and Media Contact:American Assets
TrustRobert F. BartonExecutive Vice President and Chief Financial
Officer858-350-2607
American Assets (NYSE:AAT)
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