Group 1: Market Overview - The analysis covers the performance of the S&P 500 index, highlighting its recent trends and movements [1] - The report includes insights into the broader market conditions affecting major companies [1] Group 2: Company-Specific Insights - HP Inc is discussed in terms of its financial performance and market positioning, with specific metrics provided [1] - American Assets Trust Inc is analyzed for its growth potential and investment opportunities within the real estate sector [1] - Brandywine Realty Trust is evaluated based on its operational strategies and market challenges [1]

Portfolio Composition - As of December 31, 2025, the portfolio includes 12 office properties, 11 retail shopping centers, 1 mixed-use property, and 7 multifamily properties[34]. - As of December 31, 2025, the operating portfolio consists of 31 properties with approximately 6.8 million rentable square feet of office and retail space, 2,302 residential units, and a 369-room hotel[183]. - The office portfolio included approximately 4.3 million rentable square feet, with an occupancy rate of 83.1% as of December 31, 2025, contributing 47.2% of total revenue[231]. - The multifamily portfolio has a total of 2,302 units, with an overall occupancy rate of 92.8% and an average monthly base rent of $2,684[186]. - The retail properties have a weighted average leased percentage of 97.7% and an annualized base rent totaling $70,277,527[184]. Financial Performance - The company aims to increase operating cash flows and maximize stockholder value through strategic acquisitions and property redevelopment[38]. - The company reported that LPL Holdings, Inc. accounted for approximately 13.1%, 12.3%, and 13.2% of total office segment revenues for the years ended December 31, 2025, 2024, and 2023, respectively[50]. - Google LLC accounted for approximately 13.3%, 12.3%, and 10.4% of total office segment revenues for the years ended December 31, 2025, 2024, and 2023, respectively[50]. - The total weighted average annualized base rent for the retail and office portfolio is $271,612,776, with an average rent per square foot of $45.90[184]. - The annualized base rent per leased square foot for the total portfolio is $47.23, indicating a strong rental performance[187]. Growth Strategy - The company intends to pursue growth through acquisitions in high-barrier-to-entry markets, focusing on properties with strong supply and demand characteristics[42]. - The company aims to grow earnings and cash flows through same-store portfolio growth, property development, and acquisitions in high-barrier-to-entry markets[223]. - The company evaluates properties continuously to identify redevelopment opportunities that enhance operating performance[223]. - The company plans to pursue redevelopment opportunities at Waikele Center and multifamily developments at various existing properties, contingent on market conditions[224]. Tenant and Lease Information - As of December 31, 2025, the three largest tenants in the office portfolio represented approximately 31% of the total annualized base rent, with Google LLC at 13.7%, LPL Holdings, Inc. at 10.5%, and Autodesk, Inc. at 6.8%[60]. - The largest anchor tenants in the retail portfolio as of December 31, 2025, were Lowe's, Sprouts Farmers Market, and Marshalls, collectively representing about 11.7% of total annualized base rent[64]. - The company operates 24 properties with a total net rentable square footage of 6,787,569, with Southern California accounting for 46.0% of the total[196]. - The operating portfolio includes approximately 735 leases with office and retail tenants, with only one tenant accounting for more than 9.8% of the annualized base rent[192]. Risks and Challenges - The company faces competition from other developers and operators, which may impact its ability to lease properties and achieve desired financial outcomes[47]. - The company faces risks related to economic conditions in California, Washington, Oregon, Texas, and Hawaii, which could adversely affect financial performance[56]. - The company may encounter challenges in identifying and completing property acquisitions that meet its growth criteria, potentially impeding growth[66]. - The company is susceptible to trends in office real estate, including the shift towards remote work, which may reduce demand for office space[57]. - The company faces risks associated with joint ventures, including lack of decision-making authority and potential disputes with co-venturers[114]. Capital and Financing - Total debt outstanding as of February 6, 2026, was $1.70 billion, excluding debt issuance costs, with a credit facility capacity of $500 million[58]. - The company may face challenges in obtaining additional capital due to unfavorable economic conditions, which could hinder growth strategies and refinancing efforts[70]. - High mortgage rates may limit the company's ability to finance or refinance properties, potentially reducing net income and cash distributions[71]. - The company may need to borrow funds during unfavorable market conditions to meet distribution requirements, potentially affecting its financial condition[164]. Regulatory and Compliance - The company is committed to maintaining its REIT status by distributing at least 90% of its net taxable income to stockholders annually[41]. - The company is subject to various data privacy and security regulations, and any failure to comply could result in significant penalties and reputational damage[121]. - Legislative changes affecting REITs could negatively impact the company's ability to maintain its REIT status and the tax consequences for investors[169]. - The company may incur significant costs complying with various federal, state, and local laws, which could adversely impact its financial condition and results of operations[135]. Cybersecurity and Technology - The company has not identified any material cybersecurity incidents affecting operations or financial condition as of December 31, 2025[174]. - The cybersecurity risk management program includes a response team responsible for managing cybersecurity risks and incidents[180]. - The company utilizes AI technologies, which involve risks related to implementation, data quality, and potential legal liabilities[122]. - The company faces risks related to the evolving regulatory framework for AI Technologies, which may impact its ability to use and commercialize these technologies in the future[123]. Shareholder and Governance - The company has a substantial beneficial interest held by Ernest S. Rady and his affiliates, who own approximately 16.5% of the outstanding common stock, potentially influencing corporate decisions[137]. - Conflicts of interest may arise between the interests of stockholders and the interests of holders of units in the Operating Partnership, which could impede beneficial business decisions[138]. - The company's charter restricts ownership of common stock to a maximum of 7.275% for any individual, with exceptions granted to specific entities allowing ownership up to 19.9% and 10%[141]. - The board of directors can increase the number of authorized shares without stockholder approval, potentially leading to changes in control that may not favor existing shareholders[142].

Core Viewpoint - The equity market serves as a significant mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Group 1 - Pacifica Yield aims to pursue long-term wealth creation [1] - The strategy includes a focus on undervalued yet high-growth companies [1] - High-dividend tickers, REITs, and green energy firms are also key areas of interest [1]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20][21] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office segment increasing by 2.3% and retail by 1.2%, while multifamily declined by 3.2% [21][22] Business Line Data and Key Metrics Changes - The office segment showed continued progress with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8][21] - Retail segment ended the year at 98% leased, with fourth quarter leasing totaling 43,000 sq ft and positive cash and GAAP leasing spreads [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, particularly in San Diego and San Francisco [5][6] - The overall office portfolio ended the quarter 83% leased, with same-store office portfolio at 86%, up about 150 basis points from Q3 [7][11] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainty but believes coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to leasing velocity and market conditions [25][32] - Management expressed frustration with the current share price, indicating that the public market valuation does not reflect the intrinsic value of the company's assets [16] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [17] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [23][24] Q&A Session Summary Question: Inquiry about elevated TIs for renewals and demand environment - Management acknowledged that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens [36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach would help achieve the target leverage [40] Question: Potential strategic asset sales to improve stock valuation - Management stated they would consider asset sales at favorable prices but would not sell at a discount just to check a box [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed in 11 deals year-to-date, with a significant pipeline of additional leasing activity [48] Question: Credit reserves and tenant health - Management clarified that the credit reserves are a conservative measure and not indicative of specific tenant concerns [84]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of about $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office increasing by 2.3%, retail by 1.2%, multifamily declining by 3.2%, and mixed-use declining by 6.7% [21][22] Business Line Data and Key Metrics Changes - The office segment saw continued leasing progress, with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads for the quarter, and leasing spreads for the year were 7% on a cash basis and 22% on a GAAP basis [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, with vacancy trends showing early signs of stabilization [6][7] - The company reported that occupancy averaged roughly 82% in the mixed-use segment, with RevPAR down approximately 7% to about $296 due to softer tourism trends [22] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time, with a target to achieve long-term net debt to EBITDA of 5.5x or below [24][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's coastal infill locations and high-quality real estate positioning to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to guidance [25][19] - Management acknowledged macroeconomic uncertainties but emphasized the importance of consistent operational execution and cash flow durability [16] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [17] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [23][24] Q&A Session Summary Question: Regarding elevated TIs for renewals, is this a strategic decision or reflective of weak demand? - Management indicated that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens, with specific examples of tenant renewals driving elevated TIs [36][37] Question: What is the timeline to achieve the target leverage of 5.5x? - Management stated that leasing up La Jolla Commons III and One Beach will help achieve the target leverage, aiming for a timeline as soon as those properties are leased up [40] Question: Are there any strategic asset sales planned to improve stock valuation? - Management remains pragmatic about asset sales, willing to sell at fair value but not at a discount, focusing on discipline and long-term value creation [42][43] Question: What is the current status of leasing activity and tenant types? - Management reported a diverse range of high-quality tenants driving demand, with significant leasing activity at La Jolla Commons III and One Beach [72][73] Question: Can you elaborate on the credit reserves included in guidance? - Management clarified that the credit reserves are a conservative measure, with no acute concerns about specific tenants, but a general reserve for potential issues [84][85] Question: What is the path back to 90% occupancy in the office segment? - Management believes achieving 90% occupancy is reasonable within two years, emphasizing the investments made in spec suites and the quality of inventory available [86][88]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is about 3% above initial expectations [3] - Same-store cash NOI increased by 0.5% compared to 2024 [18] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025 [18] Business Line Data and Key Metrics Changes - Office segment same-store NOI increased by 2.3% for the year, driven by higher base rent and improved expense recoveries [19] - Retail segment same-store NOI increased by 1.2% for the year, reflecting strong growth in the first half of 2025 [19] - Multifamily segment declined by 3.2% for the year due to flat to modestly lower rents and elevated concessions [20] - Mixed-use segment declined by 6.7% in 2025, impacted by softer hotel demand in Waikiki [20] Market Data and Key Metrics Changes - The office portfolio ended the quarter 83% leased, with same-store office portfolio at 86% leased, up about 150 basis points from Q3 [6] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads [10] - Multifamily ended the year 95.5% leased, with approximately 1% net effective rent growth year over year [11] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and commenced revenue [16] - Retail momentum will be maintained by keeping centers full and managing expirations [16] - The company plans to manage through the multifamily supply cycle with disciplined revenue management and cost control [16] - The focus will be on prudent hotel operations while responding to market demand [16] Management's Comments on Operating Environment and Future Outlook - Management believes that coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The company views 2026 as an opportunity to build upon the progress made in 2025, with a focus on operational execution and long-term value creation [15][16] - Management expressed frustration with the current share price, indicating that it does not reflect the intrinsic value of the company's assets [14] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [15] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [22][23] Q&A Session Summary Question: Regarding elevated TIs for office renewals - Management acknowledged that higher capital burdens for office leasing are expected to moderate over time as occupancy improves [35][36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach will help achieve the target leverage [40] Question: Steps to reinvigorate stock price - Management is open to strategic asset sales if they reflect long-term value but will not sell at a discount [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed year-to-date, with a significant pipeline of leasing activity [49] Question: Credit reserves in guidance - Management clarified that credit reserves are a conservative measure and not indicative of specific tenant concerns [84]

FOURTH QUARTER 2025 Supplemental Information Investor and Media Contact American Assets Trust, Inc. Robert F. Barton Executive Vice President and Chief Financial Officer 858-350-2607 with favorable supply/demand characteristics Office Retail Multifamily Mixed-Use Market Square Feet Square Feet Units Square Feet Suites San Diego 1,802,809 1,322,200 1,645 (1) — — Bellevue 1,028,470 — — — — Portland 930,903 44,236 657 — — San Antonio — 588,148 — — — San Francisco 511,493 35,097 — — — Oahu — 430,288 — 93,925 36 ...

分组1 - American Assets Trust (AAT) reported quarterly funds from operations (FFO) of $0.47 per share, missing the Zacks Consensus Estimate of $0.48 per share, and down from $0.55 per share a year ago, representing an FFO surprise of -2.08% [1] - The company posted revenues of $110.09 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.50%, but down from year-ago revenues of $113.46 million [2] - Over the last four quarters, American Assets Trust has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 4.8% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] - The current consensus FFO estimate for the coming quarter is $0.51 on revenues of $110.04 million, and for the current fiscal year, it is $2.00 on revenues of $437.45 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is currently in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Total revenue for Q4 2025 was $110.086 million, a decrease of 3.2% from $113.460 million in Q4 2024[15] - Net income attributable to American Assets Trust, Inc. stockholders for Q4 2025 was $3.148 million, down 64.9% from $8.977 million in Q4 2024[15] - Funds from Operations (FFO) for Q4 2025 was $36.027 million, a decrease of 14.5% compared to $42.110 million in Q4 2024[16] - FFO per diluted share for Q4 2025 was $0.47, down from $0.55 in Q4 2024[16] - Total assets as of December 31, 2025, were $2.921 billion, a decrease from $3.273 billion as of December 31, 2024[14] - Total liabilities decreased to $1.830 billion in Q4 2025 from $2.149 billion in Q4 2024[14] - Cash and cash equivalents decreased significantly to $129.362 million from $425.659 million year-over-year[14] - The company reported a net income of $4,221,000 for Q4 2025, down from $11,584,000 in Q4 2024[126] - EBITDA for the year ended December 31, 2025, was $228,768,000, compared to $264,662,000 for the previous year[126] - For the year ended December 31, 2025, net income was $71,370, a slight decrease of 2.0% from $72,819 in 2024[130] Funds from Operations and Cash Flow - Funds from Operations (FFO) for Q4 2025 decreased to $36,243,000 from $42,288,000 in Q4 2024, representing a decline of 14.4%[18] - Funds Available for Distribution (FAD) for Q4 2025 was $23,841,000, down from $26,795,000 in Q4 2024, a decrease of 7.2%[18] - Total Cash NOI for Q4 2025 was $65,334, down 4.8% from $68,669 in Q4 2024[132] - Same-Store Cash NOI for Q4 2025 was $66,104, slightly up from $66,083 in Q4 2024, indicating stable performance[134] Real Estate Portfolio - The portfolio consists of 6.7 million square feet, with 64% in office and 36% in retail[6] - The company operates in high-barrier-to-entry markets, which are expected to have favorable supply/demand characteristics[5] - Same-store Net Operating Income (NOI) for Q4 2025 was $65,992,000, compared to $66,083,000 in Q4 2024, showing a slight increase of 0.5%[36] - The company reported a total of $429,627,000 in same-store real estate rental revenue for the year ended December 31, 2025[31] Capital Expenditures and Debt - Capital expenditures for Q4 2025 totaled $15,792,000, compared to $17,439,000 in Q4 2024, reflecting a decrease of 9.4%[18] - The company reported outstanding debt of $1,625,000,000 as of December 31, 2025, with a weighted average interest rate of 4.46%[57] - The total debt amounts to $1.7 billion, representing 53.7% of total capitalization and 55.9% of total enterprise value[65] - The company has a market capitalization of approximately $1.468 billion, with a total enterprise value of $3.039 billion after accounting for cash on hand[65] - The weighted average fixed interest rate for the company's debt is 4.5%, with a weighted average term to maturity of 5.1 years[68] Leasing Activity - In Q4 2025, the total number of comparable leases signed was 13, with a net rentable area of 135,024 square feet and a contractual rent per square foot of $74.14, reflecting an annual rent change of $621,549 or 6.6%[88] - The total number of leases signed for the entire year was 46, with a total net rentable area of 370,619 square feet and an average contractual rent per square foot of $58.51, showing an annual change in rent of $1,297,712 or 6.4%[88] - The total number of retail leases signed in Q4 2025 was 12, with a net rentable area of 29,004 square feet and a contractual rent per square foot of $56.85, indicating an annual change of $5,658 or 0.3%[91] - The total number of renewal leases for retail in Q4 2025 was 11, with a net rentable area of 26,286 square feet and a contractual rent per square foot of $59.81, resulting in an annual change of $(34,842) or (2.2%) compared to prior rent[91] Market Expansion and Development - The company plans to continue its market expansion and repositioning initiatives, particularly in the office and retail segments[55] - The company is exploring multiple development opportunities, including high-density mixed-use urban villages in Portland, OR, with potential for over 3 million square feet of development[72] - The company is developing a 120,000 square foot retail building at Waikele Center in Honolulu, HI, as part of its development pipeline[72] Tenant Information - The top ten office tenants account for 31.4% of total rentable square feet, contributing $92,638,487 in annualized base rent[113] - The largest tenant, Google LLC, occupies 253,198 sq. ft. and contributes $27,659,898 in annualized base rent[113] - The total area occupied by the top 10 retail tenants is 679,727 square feet, representing 28.3% of total retail space[118] - The annualized base rent from the top 10 retail tenants amounts to $17,744,330, which is 25.3% of total retail rent[118]

Core Viewpoint - American Assets Trust, Inc. reported its financial results for the fourth quarter and the year ended December 31, 2025, showing a decline in net income and funds from operations (FFO) compared to the previous year [1][2]. Financial Results - For the fourth quarter of 2025, net income was $4.2 million, down from $11.6 million in Q4 2024, and for the full year, net income was $71.4 million, a decrease from $72.8 million in 2024 [3][26]. - Basic and diluted income attributable to common stockholders per share was $0.05 for Q4 2025, compared to $0.15 in Q4 2024, and $0.92 for the full year 2025, down from $0.94 in 2024 [3][22]. - FFO attributable to common stock and common units was $36.0 million for Q4 2025, down from $42.1 million in Q4 2024, and $153.4 million for the full year, compared to $197.5 million in 2024 [3][4][28]. Leasing Activity - The company leased 193,000 square feet of office space and 43,000 square feet of retail space in Q4 2025, with average contractual rent increases of 11.5% for office and 24.3% for retail [5][10]. - The total portfolio leased status as of December 31, 2025, was 83.1% for office, 97.7% for retail, and 93.7% for multifamily properties [6][7]. Same-Store Cash Net Operating Income (NOI) - Same-store cash NOI remained flat for Q4 2025 and increased by 0.5% for the full year compared to the same periods in 2024 [12][25]. - The cash NOI by segment for Q4 2025 was $34.5 million for office, $17.1 million for retail, and $8.9 million for multifamily [12]. Balance Sheet and Liquidity - As of December 31, 2025, the company had gross real estate assets of $3.8 billion and liquidity of $529.4 million, including $129.4 million in cash and cash equivalents [14]. - The company had only one asset encumbered by a mortgage at the end of 2025 [14]. Dividends - The company declared a dividend of $0.340 per share for Q4 2025, which was paid on December 18, 2025, and has declared the same amount for Q1 2026, payable on March 19, 2026 [16]. Guidance - The company introduced guidance for 2026, projecting FFO per diluted share to be in the range of $1.96 to $2.10, with a midpoint of $2.03 [17].