American Assets Trust, Inc.

Previous wording

On February 25, 2025, we sold Del Monte Center, which is located in Monterey, California and was previously included in our retail segment. The sale price of this property of approximately $123.5 million, less closing costs and prorations, resulted in net proceeds of approximately $117.8 million. Accordingly, we recorded a gain on the sale of approximately $44.5 million for the six months ended June 30, 2025.

Current wording

On February 25, 2025, we sold Del Monte Center, which is located in Monterey, California and was previously included in our retail segment. The sale price of this property of approximately $123.5 million, less closing costs and prorations, resulted in net proceeds of approximately $117.8 million. Accordingly, we recorded a gain on the sale of approximately $44.5 million for the nine months ended September 30, 2025.

Previous wording

Below is a summary of our same-store and redevelopment same-store composition for the three and six months ended June 30, 2025 and 2024. One Beach Street continues to be identified as a same-store redevelopment property due to significant redevelopment activity. Additionally, this property was placed into operations on August 1, 2024, approximately one year after completing renovations. Del Monte Center was removed as a same-store and redevelopment same-store property when compared to the designations for the three and six months ended June 30, 2024, as it was sold on February 25, 2025. Genesee Park is classified as a non-same-store property because it was acquired on February 28, 2025, and thus has not been owned for the comparable period. La Jolla Commons III is classified as non-same store when compared to the designations for the three and six months ended June 30, 2024, as it was placed in operations on April 1, 2025. La Jolla Commons III is a part of the La Jolla Commons office project, and not a stand-alone property.

Current wording

Below is a summary of our same-store and redevelopment same-store composition for the three and nine months ended September 30, 2025 and 2024. One Beach Street continues to be identified as a same-store redevelopment property due to significant redevelopment activity. Additionally, this property was placed into operations on August 1, 2024, approximately one year after completing renovations. Del Monte Center was removed as a same-store and redevelopment same-store property when compared to the designations for the three and nine months ended September 30, 2024, as it was sold on February 25, 2025. Genesee Park is classified as a non-same-store property because it was acquired on February 28, 2025, and thus has not been owned for the comparable period. La Jolla Commons III is classified as non-same store when compared to the designations for the three and nine months ended September 30, 2024, as it was placed in operations on April 1, 2025. La Jolla Commons III is a part of the La Jolla Commons office project, and not a stand-alone property.

Previous wording

Retail same-store operating income increased approximately 5.5% for the six months ended June 30, 2025 compared to the same period in 2024. Office same-store operating income decreased 2.1% for the six months ended June 30, 2025 compared to the same period in 2024.

Current wording

Retail same-store operating income increased approximately 2.3% for the nine months ended September 30, 2025 compared to the same period in 2024. Office same-store operating income decreased 9.5% for the nine months ended September 30, 2025 compared to the same period in 2024.

Previous wording

During the three months ended June 30, 2025, we signed 20 office leases for a total of 102,290 square feet of office space including 69,363 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis and increase on a GAAP basis of 2.0% and 9.6%, respectively. New office leases for comparable spaces were signed for 50,765 square feet at an average rental rate decrease on a cash basis and increase on a GAAP basis of 5.2% and 9.2%, respectively. Renewals for comparable office spaces were signed for 18,598 square feet at an average rental rate increase on a cash and GAAP basis of 6.4% and 10.7%, respectively. Tenant improvements and incentives were $48.15 per square foot of office space for comparable new leases for the three months ended June 30, 2025, mainly due to new tenants at 14Acres and Lloyd District.

Current wording

During the three months ended September 30, 2025, we signed 20 office leases for a total of 181,455 square feet of office space including 121,810 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 9.3% and 18.6%, respectively. New office leases for comparable spaces were signed for 62,781 square feet at an average rental rate increase on a cash and GAAP basis of 7.6% and 20.1%, respectively. Renewals for comparable office spaces were signed for 59,029 square feet at an average rental rate increase on a cash and GAAP basis of 12.0% and 16.5%, respectively. Tenant improvements and incentives were $14.49 per square foot of office space for comparable new leases for the three months ended September 30, 2025, mainly due to new tenants at City Center Bellevue.

Previous wording

During the three months ended June 30, 2025, we signed 32 retail leases for a total of 220,247 square feet of retail space including 213,073 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 7.4% and 21.9%, respectively. New retail leases for comparable spaces were signed for 20,654 square feet at an average rental rate increase on a cash and GAAP basis of 6.9% and 263.2%, respectively. The rental rate increase on a GAAP basis is primarily attributable to our recognition of the prior tenant's rental revenue on a cash basis and the new tenant's rental revenue on a straight line basis. Renewals for comparable retail spaces were signed for 192,419 square feet at an average rental rate increase on a cash and GAAP basis of 7.5% and 13.7%, respectively. Tenant improvements and incentives were $33.48 per square foot of retail space for comparable new leases for the three months ended June 30, 2025, mainly due to new tenants at Gateway Marketplace, Alamo Quarry Market and Solana Beach Towne Centre.

Current wording

During the three months ended September 30, 2025, we signed 29 retail leases for a total of 125,022 square feet of retail space including 111,903 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 4.4% and 21.0%, respectively. New retail leases for comparable spaces were signed for 2,000 square feet at an average rental rate decrease on a cash basis of 7.0%. Renewals for comparable retail spaces were signed for 109,903 square feet at an average rental rate increase on a cash and GAAP basis of 4.8% and 15.4%, respectively. Tenant improvements and incentives were $117.50 per square foot of retail space for comparable new leases for the three months ended September 30, 2025, mainly due to a new tenant at Lomas Santa Fe Plaza.

Previous wording

We capitalized external and internal costs related to new development, redevelopment, expansion and repositioning activities combined of $8.6 million and $4.8 million for the three months ended June 30, 2025 and 2024, respectively, and $10.6 million and $8.3 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

We capitalized external and internal costs related to new development, redevelopment, expansion and repositioning activities combined of $5.4 million and $4.6 million for the three months ended September 30, 2025 and 2024, respectively, and $16.0 million and $12.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

We capitalized external and internal costs related to other property improvements combined of $12.8 million and $14.6 million for the three months ended June 30, 2025 and 2024, respectively, and $25.2 million and $24.1 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

We capitalized external and internal costs related to other property improvements combined of $15.6 million and $15.0 million for the three months ended September 30, 2025 and 2024, respectively, and $40.7 million and $39.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Interest costs on developments and major redevelopments are capitalized as part of developments and redevelopments not yet placed in service. Capitalization of interest commences when development activities and expenditures begin and end upon completion, which is when the asset is ready for its intended use as noted above. We make judgments as to the time period over which to capitalize such costs and these assumptions have a direct impact on net income because capitalized costs are not subtracted in calculating net income. If the time period for capitalizing interest is extended, however, more interest is capitalized, thereby decreasing interest expense and increasing net income during that period. Since the build out of La Jolla Commons III is now complete and the building, inclusive of the land, was placed in operations as of April 1, 2025, there were no capitalized interest costs related to development activities for the three months ended June 30, 2025. We capitalized interest costs related to development activities of $2.1 million for the three months ended June 30, 2024 and $1.4 million and $4.2 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Interest costs on developments and major redevelopments are capitalized as part of developments and redevelopments not yet placed in service. Capitalization of interest commences when development activities and expenditures begin and end upon completion, which is when the asset is ready for its intended use as noted above. We make judgments as to the time period over which to capitalize such costs and these assumptions have a direct impact on net income because capitalized costs are not subtracted in calculating net income. If the time period for capitalizing interest is extended, however, more interest is capitalized, thereby decreasing interest expense and increasing net income during that period. Since the build out of La Jolla Commons III is now complete and the building, inclusive of the land, was placed in operations as of April 1, 2025, there were no capitalized interest costs related to development activities for the three months ended September 30, 2025. We capitalized interest costs related to development activities of $1.7 million for the three months ended September 30, 2024 and $1.4 million and $5.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue decreased $3.0 million to $107.9 million for the three months ended June 30, 2025 compared to $110.9 million for the three months ended June 30, 2024. The percentage leased was as follows for each segment as of June 30, 2025 and 2024:

Current wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue decreased $13.2 million to $109.6 million for the three months ended September 30, 2025 compared to $122.8 million for the three months ended September 30, 2024. The percentage leased was as follows for each segment as of September 30, 2025 and 2024:

Previous wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue decreased $4.0 million, or 4%, to $101.1 million for the three months ended June 30, 2025 compared to $105.1 million for the three months ended June 30, 2024. Rental revenue by segment was as follows (dollars in thousands):

Current wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue decreased $3.3 million, or 3%, to $102.2 million for the three months ended September 30, 2025 compared to $105.5 million for the three months ended September 30, 2024. Rental revenue by segment was as follows (dollars in thousands):

Previous wording

Same-store office rental revenue decreased $1.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to lower occupancy and annualized base rents at Torrey Reserve Campus and First & Main, lower occupancy at Lloyd Portfolio, and a decrease in cost recoveries of $0.3 million due to changes in tenant base years, a decrease in recoverable property expenses, and prior year tax refunds received that were passed back to tenants.

Current wording

Same-store office rental revenue increased $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase in cost recoveries due to changes in tenant base years and tax refunds received in 2024 that were passed back to tenants. This increase was offset by lower occupancy at Torrey Reserve Campus and First & Main.

Previous wording

Same-store multifamily revenue decreased $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to an overall decrease in occupancy. Same-store average monthly base rent and occupancy was $2,791 and 89.0%, for the three months ended June 30, 2025, respectively, compared to $2,730 and 90.8%, for the three months ended June 30, 2024, respectively.

Current wording

Same-store multifamily revenue decreased $0.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an overall decrease in occupancy offset by a slight increase in average monthly base rent. Same-store average monthly base rent and occupancy was $2,746 and 89.3%, for the three months ended September 30, 2025, respectively, compared to $2,733 and 90.1%, for the three months ended September 30, 2024, respectively.

Previous wording

Total mixed-use rental revenue decreased $0.3 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 86.0% and $305 for the three months ended June 30, 2025, respectively, compared to 86.4% and $317 for the three months ended June 30, 2024, respectively. This decrease was partially offset by an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents.

Current wording

Total mixed-use rental revenue decreased $1.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 78.3% and $298 for the three months ended September 30, 2025, respectively, compared to 83.8% and $337 for the three months ended September 30, 2024, respectively. This decrease was partially offset by an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents and an increase in cost recoveries.

Previous wording

Other property income. Other property income increased $1.1 million, or 18%, to $6.9 million for the three months ended June 30, 2025 compared to $5.8 million for the three months ended June 30, 2024. Other property income by segment was as follows (dollars in thousands):

Current wording

Other property income. Other property income decreased $9.9 million, or 57%, to $7.4 million for the three months ended September 30, 2025 compared to $17.3 million for the three months ended September 30, 2024. Other property income by segment was as follows (dollars in thousands):

Previous wording

Retail other property income increased $0.2 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to lease termination fees received at Alamo Quarry Market.

Current wording

Retail other property income decreased $0.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to lease termination fees received at Alamo Quarry Market and Solana Beach Towne Center in 2024.

Previous wording

Mixed-use other property income increased $0.2 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to an increase in parking garage income at the retail portion of our mixed-use property.

Current wording

Mixed-use other property income increased $0.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to lease settlement fees received at the retail portion of our mixed-use property.

Previous wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses stayed flat at $40.3 million for the three months ended June 30, 2025 and June 30, 2024.

Current wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses increased $0.9 million, or 2%, to $43.3 million for the three months ended September 30, 2025 compared to $42.4 million for the three months ended September 30, 2024.

Previous wording

Rental Expenses. Rental expenses increased $0.2 million, or 1%, to $29.7 million for the three months ended June 30, 2025 compared to $29.5 million for the three months ended June 30, 2024. Rental expense by segment was as follows (dollars in thousands):

Current wording

Rental Expenses. Rental expenses increased $0.4 million, or 1%, to $31.8 million for the three months ended September 30, 2025 compared to $31.4 million for the three months ended September 30, 2024. Rental expense by segment was as follows (dollars in thousands):

Previous wording

Office rental expense increased $0.3 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities. Same-store office rental expense decreased $0.1 million due to lower parking garage expense and other operating expense.

Current wording

Office rental expense increased $0.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities. Same-store office rental expense increased $0.4 million due to an increase in facilities services expense, utilities expense and repairs and maintenance expense.

Previous wording

Retail rental expense decreased $1.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to the sale of Del Monte Center in the first quarter of 2025.

Current wording

Retail rental expense decreased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the sale of Del Monte Center in the first quarter of 2025. Same-store retail rental expense increased $0.2 million due to an increase in repairs and maintenance expense, marketing expense and facilities services expense.

Previous wording

Multifamily rental expense increased $0.8 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to the acquisition of Genesee Park. Same-store multifamily rental expense increased $0.1 million due to an overall increase in utilities expense and repairs and maintenance expense across most of our other multifamily properties.

Current wording

Multifamily rental expense increased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the acquisition of Genesee Park. Same-store multifamily rental expense increased $0.3 million due to an overall increase in facilities services expense and repairs and maintenance expense across most of our other multifamily properties.

Previous wording

Mixed-use rental expense increased $0.2 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to an increase in room related expenses at the hotel portion of our mixed-use property and an increase in repairs and maintenance expense and excise tax expense at the retail portion of our mixed-use property.

Current wording

Mixed-use rental expense decreased $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in room related expenses at the hotel portion of our mixed-use property, partially offset by an increase in utilities expense and facilities services expense at the retail portion of our mixed-use property.

Previous wording

Real Estate Taxes. Real estate taxes decreased $0.2 million, or 2%, to $10.6 million for the three months ended June 30, 2025 compared to $10.8 million for the three months ended June 30, 2024. Real estate tax expense by segment was as follows (dollars in thousands):

Current wording

Real Estate Taxes. Real estate taxes increased $0.5 million, or 4%, to $11.5 million for the three months ended September 30, 2025 compared to $11.0 million for the three months ended September 30, 2024. Real estate tax expense by segment was as follows (dollars in thousands):

Previous wording

Same-store office real estate taxes decreased $0.2 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to a decrease in property tax assessments at City Center Bellevue, 14Acres and Timber Ridge, partially offset by an increase at La Jolla Commons due to real estate tax refunds received during the three months ended June 30, 2024.

Current wording

Same-store office real estate taxes increased $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to real estate tax refunds received at La Jolla Commons I and II during the three months ended September 30, 2024, partially offset by a decrease in property tax assessments at City Center Bellevue, 14Acres and Timber Ridge.

Previous wording

Same-store retail real estate taxes decreased $0.6 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a decrease in property tax assessments at Alamo Quarry Market and an increase in real estate tax refunds received at Alamo Quarry Market and Carmel Mountain Plaza.

Current wording

Same-store retail real estate taxes decreased $0.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in property tax assessments and an increase in real estate tax refunds received at Alamo Quarry Market.

Previous wording

Multifamily real estate taxes increased $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to the acquisition of Genesee Park and an increase in property tax assessments at Pacific Ridge Apartments.

Current wording

Multifamily real estate taxes increased $0.1 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the acquisition of Genesee Park.

Previous wording

Property operating income decreased $2.9 million, or 4%, to $67.6 million for the three months ended June 30, 2025, compared to $70.5 million for the three months ended June 30, 2024. Property operating income by segment was as follows (dollars in thousands):

Current wording

Property operating income decreased $14.1 million, or 18%, to $66.3 million for the three months ended September 30, 2025, compared to $80.4 million for the three months ended September 30, 2024. Property operating income by segment was as follows (dollars in thousands):

Previous wording

Same-store multifamily operating income decreased $0.3 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to a decrease in occupancy. Same-store average monthly base rent and occupancy was $2,791 and 89.0%, respectively, for the three months ended June 30, 2025, compared to $2,730 and 90.8%, respectively, for the three months ended June 30, 2024. Additionally, there was an increase in utilities expense and repairs and maintenance expense across most of our other multifamily properties.

Current wording

Same-store multifamily operating income decreased $0.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in occupancy and average monthly base rent. Same-store average monthly base rent and occupancy was $2,746 and 89.3%, respectively, for the three months ended September 30, 2025, compared to $2,733 and 90.1%, respectively, for the three months ended September 30, 2024. Additionally, there was an increase in facilities services expense and repairs and maintenance expense across most of our other multifamily properties.

Previous wording

Total mixed-use operating income decreased $0.3 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 86.0% and $305, respectively, for the three months ended June 30, 2025, compared to 86.4% and $317, respectively, for the three months ended June 30, 2024. This decrease was partially offset by an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents.

Current wording

Total mixed-use operating income decreased $0.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 78.3% and $298, respectively, for the three months ended September 30, 2025, compared to 83.8% and $337, respectively, for the three months ended September 30, 2024. This decrease was partially offset by lower room related expenses at the hotel portion of our mixed-use property, an increase in lease settlement fees and an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents.

Previous wording

General and Administrative. General and administrative expenses increased $0.1 million, or 1%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. This increase was primarily due to higher employee-related costs, including, without limitation, with respect to base pay and benefits for certain salaried and hourly workers.

Current wording

General and Administrative. General and administrative expenses increased $0.4 million, or 5%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. This increase was primarily due to higher corporate legal expenses, consulting fees and employee-related costs, including, without limitation, with respect to base pay and benefits for certain salaried and hourly workers.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense increased $1.8 million, or 6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. This increase was primarily due to $1.0 million related to the recent acquisition of Genesee Park on February 28, 2025, $0.9 million related to La Jolla Commons III, which was placed in service on April 1, 2025, and $0.6 million related to acceleration of depreciation of assets attributable to a lease for which the tenant vacated their space early at Waikiki Beach Walk - Retail. These increases were partially offset by lower depreciation expense at Del Monte Center, which was sold on February 25, 2025.

Current wording

Depreciation and Amortization. Depreciation and amortization expense decreased $1.5 million, or (5)%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. This decrease was primarily due to lower depreciation expense at Torrey Reserve Campus due to asset acceleration for a tenant vacating their space early in 2024 and Del Monte Center, which was sold on February 25, 2025. These decreases were offset by an increase of $0.8 million related to the recent acquisition of Genesee Park on February 28, 2025, and $1.0 million related to La Jolla Commons III, which was placed in service on April 1, 2025.

Previous wording

Interest Expense, net. Interest expense increased $3.5 million, or 21%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. This increase was primarily due to the closing of our 6.150% Senior Notes on September 17, 2024 and a decrease in capitalized interest related to La Jolla Commons III being placed in service on April 1, 2025. These increases were partially offset by a decrease in interest expense related to the maturity and repayment of our Series F Notes on July 19, 2024, Series B Notes on December 2, 2024, Term Loan B and Term Loan C on January 2, 2025 and Series C Notes on February 3, 2025.

Current wording

Interest Expense, net. Interest expense increased $1.5 million, or 8%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. This increase was primarily due to the closing of our 6.150% Senior Notes on September 17, 2024 and a decrease in capitalized interest related to La Jolla Commons III being placed in service on April 1, 2025. These increases were partially offset by a decrease in interest expense related to the maturity and repayment of our Series F Notes on July 19, 2024, Series B Notes on December 2, 2024, Term Loan B and Term Loan C on January 2, 2025 and Series C Notes on February 3, 2025.

Previous wording

Other Income, net. Other income, net increased $0.1 million, or 17%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. This increase was primarily due to interest and investment income attributed to a higher yield on our average cash balance during the period and lower income tax expense.

Current wording

Other Income, net. Other income, net decreased $0.8 million, or 47%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. This decrease was primarily due to lower interest and investment income attributed to a decrease in yield on our average cash balance during the period, partially offset by lower income tax expense.

Previous wording

The following summarizes our consolidated results of operations for the six months ended June 30, 2025 compared to our consolidated results of operations for the six months ended June 30, 2024.

Current wording

The following summarizes our consolidated results of operations for the nine months ended September 30, 2025 compared to our consolidated results of operations for the nine months ended September 30, 2024.

Previous wording

The following table sets forth selected data from our unaudited consolidated statements of income for the six months ended June 30, 2025 and 2024 (dollars in thousands):

Current wording

The following table sets forth selected data from our unaudited consolidated statements of income for the nine months ended September 30, 2025 and 2024 (dollars in thousands):

Previous wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue decreased $5.0 million, or 2%, to $216.5 million for the six months ended June 30, 2025 compared to $221.6 million for the six months ended June 30, 2024. The percentage leased was as follows for each segment as of June 30, 2025 and 2024:

Current wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue decreased $18.3 million, or 5%, to $326.1 million for the nine months ended September 30, 2025 compared to $344.4 million for the nine months ended September 30, 2024. The percentage leased was as follows for each segment as of September 30, 2025 and 2024:

Previous wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue decreased $6.1 million, or 3%, to $204.0 million for the six months ended June 30, 2025 compared to $210.1 million for the six months ended June 30, 2024. Rental revenue by segment was as follows (dollars in thousands):

Current wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue decreased $9.4 million, or 3%, to $306.2 million for the nine months ended September 30, 2025 compared to $315.7 million for the nine months ended September 30, 2024. Rental revenue by segment was as follows (dollars in thousands):

Previous wording

Same-store office rental revenue decreased $2.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to lower occupancy and annualized base rents at Torrey Reserve Campus and First & Main, lower occupancy at Lloyd Portfolio, and a decrease in cost recoveries of $0.5 million due to changes in tenant base years, a decrease in recoverable property expenses, and prior year tax refunds received that were passed back to tenants.

Current wording

Same-store office rental revenue decreased $1.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower occupancy and annualized base rents at Torrey Reserve Campus and First & Main.

Previous wording

Same-store retail rental revenue increased $0.6 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to new tenant leases and scheduled rent increases at Carmel Mountain Plaza, Alamo Quarry Market and Solana Beach Towne Center.

Current wording

Same-store retail rental revenue increased $0.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to new tenant leases and scheduled rent increases at Carmel Mountain Plaza and Alamo Quarry Market.

Previous wording

Same-store multifamily revenue increased $0.1 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to an overall increase in average monthly base rent, while occupancy had a slight decrease. Same-store average monthly base rent and occupancy was $2,784 and 89.7% for the six months ended June 30, 2025 compared to $2,705 and 91.6% for the six months ended June 30, 2024.

Current wording

Same-store multifamily revenue remained flat for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in average monthly base rent, while occupancy had a slight decrease. Same-store average monthly base rent and occupancy was $2,771 and 89.6% for the nine months ended September 30, 2025 compared to $2,714 and 91.1% for the nine months ended September 30, 2024.