American Assets Trust, Inc.

Previous wording

•limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT for U.S. federal income tax purposes; and

Current wording

•limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a real estate investment trust, or REIT, for U.S. federal income tax purposes; and

Previous wording

We are a full service, vertically integrated and self-administered REIT that owns, operates, acquires and develops high quality retail, office, multifamily and mixed-use properties in attractive, high-barrier-to-entry markets in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. As of September 30, 2025, our portfolio was comprised of twelve office properties; eleven retail shopping centers a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center; and seven multifamily properties. Additionally, as of September 30, 2025, we owned land at two of our properties that we classified as held for development and/or construction in progress. La Jolla Commons - Land, related to the build-out of La Jolla Commons III, was previously classified as held for development. 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. Our core markets include San Diego, California; the San Francisco Bay Area, California; Bellevue, Washington; Portland, Oregon and Oahu, Hawaii. We are a Maryland corporation formed on July 16, 2010 to acquire the entities owning various controlling and noncontrolling interests in real estate assets owned and/or managed by Ernest S. Rady or his affiliates, including the Ernest Rady Trust U/D/T March 13, 1983, or the Rady Trust, and did not have any operating activity until the consummation of our initial public offering on January 19, 2011. Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.9% of our Operating Partnership as of September 30, 2025. Accordingly, we consolidate the assets, liabilities and results of operations of our Operating Partnership.

Current wording

We are a full service, vertically integrated and self-administered REIT that owns, operates, acquires and develops high quality retail, office, multifamily and mixed-use properties in attractive, high-barrier-to-entry markets in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. As of March 31, 2026, our portfolio was comprised of twelve office properties; eleven retail shopping centers; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center; and seven multifamily properties. Additionally, as of March 31, 2026, we owned land at two of our properties that we classified as held for development and/or construction in progress. Our core markets include San Diego, California; the San Francisco Bay Area, California; Bellevue, Washington; Portland, Oregon and Oahu, Hawaii. We are a Maryland corporation formed on July 16, 2010 to acquire the entities owning various controlling and noncontrolling interests in real estate assets owned and/or managed by Ernest S. Rady or his affiliates, including the Ernest Rady Trust U/D/T March 13, 1983, or the Rady Trust, and did not have any operating activity until the consummation of our initial public offering on January 19, 2011. Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.95% of our Operating Partnership as of March 31, 2026. Accordingly, we consolidate the assets, liabilities and results of operations of our Operating Partnership.

Previous wording

While there is judgment surrounding changes in designations, we typically reclassify significant development, redevelopment or expansion properties into same-store properties once they are stabilized. Properties are deemed stabilized typically at the earlier of (i) reaching 90% occupancy or (ii) four quarters following a property's inclusion in operating real estate. We typically remove properties from same-store properties when the development, redevelopment or expansion has or is expected to have a significant impact on the property's annualized base rent, occupancy and property operating income within the calendar year. Our evaluation of significant impact related to development, redevelopment or expansion activity is based on quantitative and qualitative measures including, but not limited to, the following: the total budgeted cost of planned construction activity compared to the property’s annualized base rent, occupancy and property operating income within the calendar year; percentage of development, redevelopment or expansion square footage to total property square footage; and the ability to maintain historic occupancy and rental rates. In consideration of these measures, we generally remove properties from same-store properties when we see a decline in a property's annualized base rent, occupancy and operating income within the calendar year as a direct result of ongoing redevelopment, development or expansion activity. Acquired properties are classified into same-store properties once we have owned such properties for the entirety of comparable period(s) and the properties are not under significant development or expansion.

Current wording

While there is judgment surrounding changes in designations, we typically reclassify significant development, redevelopment or expansion properties into same-store properties once they are stabilized. Properties are deemed stabilized typically at the earlier of (i) reaching 90% occupancy or (ii) four quarters following a property's inclusion in operating real estate. We typically remove properties from same-store properties when the development, redevelopment or expansion has or is expected to have a significant impact on the property's annualized base rent, occupancy and operating income within the calendar year. Our evaluation of significant impact related to development, redevelopment or expansion activity is based on quantitative and qualitative measures including, but not limited to, the following: the total budgeted cost of planned construction activity compared to the property’s annualized base rent, occupancy and operating income within the calendar year; percentage of development, redevelopment or expansion square footage to total property square footage; and the ability to maintain historic occupancy and rental rates. In consideration of these measures, we generally remove properties from same-store properties when we see a decline in a property's annualized base rent, occupancy and operating income within the calendar year as a direct result of ongoing redevelopment, development or expansion activity. Acquired properties are classified into same-store properties once we have owned such properties for the entirety of comparable period(s) and the properties are not under significant development or expansion.

Previous 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.

Current wording

Below is a summary of our same-store and redevelopment same-store composition for the three months ended March 31, 2026 and 2025. One Beach Street is classified as a same-store property when compared to the designation for the three months ended March 31, 2025, as this property was placed into service on August 1, 2024. 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 a non-same store property when compared to the designations for the three months ended March 31, 2025, as it was placed into service 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 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.

Current wording

Retail same-store operating income increased approximately 0.1% for the three months ended March 31, 2026 compared to the same period in 2025. Office same-store operating income remained flat for the three months ended March 31, 2026 compared to the same period in 2025.

Previous 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.

Current wording

During the three months ended March 31, 2026, we signed 29 office leases for a total of 236,670 square feet of office space including 108,456 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 4.8% and 10.6%, respectively. New office leases for comparable spaces were signed for 28,875 square feet at an average rental rate increase on a cash and GAAP basis of 3.7% and 8.9%, respectively. Renewals for comparable office spaces were signed for 79,581 square feet at an average rental rate increase on a cash and GAAP basis of 5.1% and 11.2%, respectively. Tenant improvements and incentives were $24.68 per square foot of office space for comparable new leases for the three months ended March 31, 2026, mainly due to new tenants at Timber Ridge and Coastal Collection at Torrey Reserve.

Previous 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.

Current wording

During the three months ended March 31, 2026, we signed 14 retail leases for a total of 38,581 square feet of retail space including 37,593 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis of 2.0% and increase on a GAAP basis of 1.3%, respectively. New retail leases for comparable spaces were signed for 10,000 square feet at an average rental rate decrease on a cash and GAAP basis of 17.8% and 22.0%, respectively. Renewals for comparable retail spaces were signed for 27,593 square feet at an average rental rate increase on a cash and GAAP basis of 3.8% and 13.0%, respectively. Tenant improvements and incentives were $22.50 per square foot of retail space for comparable new leases for the three months ended March 31, 2026, mainly due to a new tenant at Solana Beach Towne Center.

Previous 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.

Current wording

We capitalized external and internal costs related to new development, redevelopment, expansion and repositioning activities combined of $7.7 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively.

Previous 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.

Current wording

We capitalized external and internal costs related to other property improvements combined of $14.3 million and $12.3 million for the three months ended March 31, 2026 and 2025, 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 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.

Current wording

Interest costs on developments and major redevelopments are capitalized as part of developments and redevelopments not yet placed into 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. Because the development of La Jolla Commons III is now complete and the building, inclusive of the land, was placed into service as of April 1, 2025, there were no capitalized interest costs related to development activities after the three months ended March 31, 2025. We capitalized interest costs related to development activities of $1.4 million for the three months ended March 31, 2025.

Previous wording

The following summarizes our consolidated results of operations for the three months ended September 30, 2025 compared to our consolidated results of operations for the three months ended September 30, 2024. As of September 30, 2025, our operating portfolio was comprised of 31 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.8 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel. Additionally, as of September 30, 2025, we owned land at two of our properties that we classified as held for development and/or construction in progress. As of September 30, 2024, our operating portfolio was comprised of 31 retail, office, multifamily and mixed-use properties with an aggregate of approximately 7.2 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,110 residential units (including 120 RV spaces) and a 369-room hotel. Additionally, as of September 30, 2024, we owned land at three of our properties that we classified as held for development and/or construction in progress.

Current wording

The following summarizes our consolidated results of operations for the three months ended March 31, 2026 compared to our consolidated results of operations for the three months ended March 31, 2025. As of March 31, 2026, our operating portfolio was comprised of 31 office, retail, multifamily and mixed-use properties with an aggregate of approximately 6.8 million rentable square feet of office and retail space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel. Additionally, as of March 31, 2026, we owned land at two of our properties that we classified as held for development and/or construction in progress. As of March 31, 2025, our operating portfolio was comprised of 31 office, retail, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of office and retail space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel. Additionally, as of March 31, 2025, we owned land at three of our properties that we classified as held for development and/or construction in progress.

Previous 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:

Current wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue increased $2.0 million to $110.6 million for the three months ended March 31, 2026 compared to $108.6 million for the three months ended March 31, 2025. The percentage leased was as follows for each segment as of March 31, 2026 and 2025:

Previous wording

(1)The percentage leased for our retail and office segments and the retail portion of the mixed-use segment includes square footage under leases, including leases which may not have commenced as of September 30, 2025 or 2024, as applicable. Percentage leased for our multifamily properties includes total units rented and occupied as of September 30, 2025 or 2024, as applicable.

Current wording

(1)The percentage leased includes the square footage under lease, including leases which may not have commenced as of March 31, 2026 or 2025, as applicable. Leased units for our multifamily properties include total units leased and occupied as of the applicable date.

Previous wording

The decrease in total property revenue was attributable primarily to the factors discussed below.

Current wording

The increase in total property revenue was attributable primarily to the factors discussed below.

Previous 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):

Current wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue increased $1.5 million, or 1%, to $104.4 million for the three months ended March 31, 2026 compared to $103.0 million for the three months ended March 31, 2025. Rental revenue by segment was as follows (dollars in thousands):

Previous wording

(1)For this table and tables following, the same-store portfolio excludes: (i) One Beach Street (office) due to significant redevelopment; (ii) Del Monte Center (retail), which was sold on February 25, 2025; (iii) Genesee Park (multifamily), which was acquired on February 28, 2025, (iv) La Jolla Commons III (office), which was placed into operations on April 1, 2025 and (v) land held for development (office).

Current wording

(1)For this table and tables following, the same-store portfolio excludes: (i) Del Monte Center (retail), which was sold on February 25, 2025; (ii) Genesee Park (multifamily), which was acquired on February 28, 2025, (iii) La Jolla Commons III (office), which was placed into service on April 1, 2025 and (iv) land held for development (office).

Previous wording

Retail rental revenue decreased $3.9 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 on February 25, 2025.

Current wording

Retail rental revenue decreased $1.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the sale of Del Monte Center on February 25, 2025. Same-store retail revenue increased $0.3 million primarily due to new tenant leases and scheduled rent increases at Alamo Quarry Market.

Previous 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.

Current wording

Total mixed-use rental revenue increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in average occupancy and revenue per available room to 91.9% and $305 for the three months ended March 31, 2026, respectively, compared to 84.6% and $298 for the three months ended March 31, 2025, respectively.

Previous 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):

Current wording

Other property income. Other property income increased $0.5 million, or 9%, to $6.2 million for the three months ended March 31, 2026 compared to $5.7 million for the three months ended March 31, 2025. Other property income by segment was as follows (dollars in thousands):

Previous wording

Total mixed-use other property income increased $0.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in parking income and lease settlement fees received 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 March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in resort fee income driven by higher occupancy at the hotel portion of our mixed-use property and parking income 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 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.

Current wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses increased $2.4 million, or 6%, to $43.7 million for the three months ended March 31, 2026 compared to $41.3 million for the three months ended March 31, 2025.

Previous 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):

Current wording

Rental Expenses. Rental expenses increased $1.4 million, or 5%, to $31.7 million for the three months ended March 31, 2026 compared to $30.3 million for the three months ended March 31, 2025. Rental expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Office rental expense increased $0.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities. Same-store office rental expense increased $0.7 million due to an increase in facilities services expense, utilities expense and repairs and maintenance expense.

Previous 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.

Current wording

Retail rental expense decreased $0.6 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 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 and marketing expense.

Previous 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.

Current wording

Multifamily rental expense increased $0.6 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park. Same-store multifamily rental expense increased $0.2 million due to an overall increase in facilities services expense and repairs and maintenance expense across our other multifamily properties.

Previous 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.

Current wording

Mixed-use rental expense increased $0.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in room-related expenses and excise tax at the hotel portion of our mixed-use property and an increase in personnel expense at the retail portion of our mixed-use property.

Previous 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):

Current wording

Real Estate Taxes. Real estate taxes increased $0.9 million, or 9%, to $11.9 million for the three months ended March 31, 2026 compared to $11.0 million for the three months ended March 31, 2025. Real estate tax expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Retail real estate taxes increased $0.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to real estate tax refunds received at Del Monte Center in 2025. Same-store retail real estate taxes increased $0.1 million primarily due to tax consultant fees at Waikele Center.

Previous wording

Same-store multifamily real estate taxes increased $0.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in property tax assessments mainly at Pacific Ridge Apartments, Loma Palisades and Hassalo on Eighth - Multifamily.

Current wording

Multifamily real estate taxes increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park. Same-store multifamily real estate taxes increased $0.1 million primarily due to higher tax assessments at Pacific Ridge Apartments and Loma Palisades.

Previous 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):

Current wording

Property operating income decreased $0.4 million, or 1%, to $66.9 million for the three months ended March 31, 2026, compared to $67.3 million for the three months ended March 31, 2025. Property operating income by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Retail operating income decreased $0.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the sale of Del Monte Center. Same-store retail operating income remained flat as the increase in new tenant leases and scheduled rent increases at Alamo Quarry Market were offset by higher rental expenses.

Previous 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.

Current wording

Multifamily operating income increased $0.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park and an increase in occupancy and average monthly base rent. Same-store average monthly base rent and occupancy was $2,820 and 91.2%, respectively, for the three months ended March 31, 2026, compared to $2,777 and 90.5%, respectively, for the three months ended March 31, 2025. These increases were partially offset by higher rental expenses and real estate taxes.

Previous 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.

Current wording

Total mixed-use operating income decreased $0.1 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to higher room-related expenses at the hotel portion of our mixed-use property, and an increase in personnel expenses at the retail portion of our mixed-use property. These decreases were partially offset by an increase in average occupancy and revenue per available room to 91.9% and $305, respectively, for the three months ended March 31, 2026, compared to 84.6% and $298, respectively, for the three months ended March 31, 2025.

Previous 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.

Current wording

General and Administrative. General and administrative expenses decreased $0.5 million, or 6%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This decrease was primarily due to lower employee-related costs, including, without limitation, with respect to base pay, bonus and benefits for certain salaried and hourly workers.

Previous 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.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased $1.8 million, or 6%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This increase was primarily due to $1.1 million related to La Jolla Commons III, which was placed into service on April 1, 2025, $0.2 million related to the acquisition of Genesee Park on February 28, 2025 and new tenant improvements, building improvements and leasing commission assets placed into service.

Previous 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.

Current wording

Interest Expense, net. Interest expense increased $0.9 million, or 5%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This increase was primarily due to a decrease in capitalized interest related to La Jolla Commons III being placed into service on April 1, 2025. This increase was partially offset by a decrease in interest expense related to the maturity and repayment of our Series C Notes on February 3, 2025.

Previous wording

Gain on sale of real estate. Gain on sale of real estate of $44.5 million during the period relates to our sale of Del Monte Center on February 25, 2025.

Current wording

Gain on sale of real estate. The gain on sale of real estate of $44.5 million for the three months ended March 31, 2025, was due to the sale of Del Monte Center on February 25, 2025.

Previous 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.

Current wording

Other Income, net. Other income, net decreased $0.3 million, or 33%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. 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

As of September 30, 2025, the company owned an approximate 78.9% partnership interest in the Operating Partnership. The remaining approximately 21.1% are owned by non-affiliated investors and certain of the company's directors and executive officers. As the sole general partner of the Operating Partnership, American Assets Trust, Inc. has the full, exclusive and complete authority and control over the Operating Partnership’s day-to-day management and business, can cause it to enter into certain major transactions, including acquisitions, dispositions and refinancings, and can cause changes in its line of business, capital structure and distribution policies. The company causes the Operating Partnership to distribute such portion of its available cash as the company may in its discretion determine, in the manner provided in the Operating Partnership’s partnership agreement.

Current wording

As of March 31, 2026, the company owned an approximate 78.95% partnership interest in the Operating Partnership. The remaining approximately 21.05% are owned by non-affiliated investors and certain of the company's directors and executive officers. As the sole general partner of the Operating Partnership, American Assets Trust, Inc. has the full, exclusive and complete authority and control over the Operating Partnership’s day-to-day management and business, can cause it to enter into certain major transactions, including acquisitions, dispositions and refinancings, and can cause changes in its line of business, capital structure and distribution policies. The company causes the Operating Partnership to distribute such portion of its available cash as the company may in its discretion determine, in the manner provided in the Operating Partnership’s partnership agreement.

Previous wording

On December 3, 2021, we entered into a new ATM equity program with five sales agents under which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million. The sale of shares of our common stock made through the ATM equity program are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended. We intend to use the net proceeds to fund development or redevelopment activities, repay amounts outstanding from time to time under our amended and restated credit facility or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of the company's common stock and the company's capital needs. For the three months ended September 30, 2025, no shares of common stock were sold through the ATM equity program. We have no obligation to sell the remaining shares available for sale under the ATM equity program.

Current wording

On December 3, 2021, the company entered into a new ATM equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250 million. The sales of shares of our common stock made through the ATM equity program, as amended, are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended. We intend to use the net proceeds to fund development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. For the three months ended March 31, 2026, no shares of common stock were sold through the ATM equity program. We have no obligation to sell the remaining shares available for sale under the ATM equity program.