American Assets Trust, Inc.

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 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.

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 June 30, 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 June 30, 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 78.96% of our Operating Partnership as of June 30, 2026. Accordingly, we consolidate the assets, liabilities and results of operations of our Operating Partnership.

Previous 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.

Current wording

Below is a summary of our same-store and redevelopment same-store composition for the three and six months ended June 30, 2026 and 2025. One Beach Street is classified as a same-store property when compared to the designation for the three and six months ended June 30, 2025, as this property was placed into service on August 1, 2024. Genesee Park is classified as a same-store property when compared to the designation for the three months ended June 30, 2025 and a non-same-store property when compared to the designation for the six months ended June 30, 2025 as it was acquired on February 28, 2025. La Jolla Commons III is classified as a same-store property when compared to the designation for the three months ended June 30, 2025 and a non-same-store property when compared to the designation for the six months ended June 30, 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

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.

Current wording

During the three months ended June 30, 2026, we signed 14 office leases for a total of 109,715 square feet of office space including 75,416 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 9.1% and 10.2%, respectively. New office leases for comparable spaces were signed for 29,529 square feet at an average rental rate increase on a cash and GAAP basis of 14.3% and 12.8%, respectively. Renewals for comparable office spaces were signed for 45,887 square feet at an average rental rate increase on a cash and GAAP basis of 5.9% and 8.6%, respectively. Tenant improvements and incentives were $24.35 per square foot of office space for comparable new leases for the three months ended June 30, 2026, mainly due to new tenants at City Center Bellevue and Coastal Collection at Torrey Reserve.

Previous 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.

Current wording

During the three months ended June 30, 2026, we signed 20 retail leases for a total of 138,993 square feet of retail space including 133,828 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 3.0% and 20.2%, respectively. There were no comparable new leases, tenant improvements, or incentives on retail space during the three months ended June 30, 2026.

Previous 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.

Current wording

We capitalized external and internal costs related to new development, redevelopment, expansion and repositioning activities combined of $15.5 million and $8.6 million for the three months ended June 30, 2026 and 2025, respectively, and $23.2 million and $10.6 million for the six months ended June 30, 2026 and 2025, respectively.

Previous 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.

Current wording

We capitalized external and internal costs related to other property improvements combined of $14.3 million and $12.8 million for the three months ended June 30, 2026 and 2025, respectively, and $28.7 million and $25.2 million for the six months ended June 30, 2026 and 2025, respectively.

Previous 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.

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 six months ended June 30, 2025.

Previous 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.

Current wording

The following summarizes our consolidated results of operations for the three months ended June 30, 2026 compared to our consolidated results of operations for the three months ended June 30, 2025. As of June 30, 2026 and June 30, 2025 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 June 30, 2026 and June 30, 2025, we owned land at two 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 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:

Current wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue increased $1.6 million, or 1%, to $109.5 million for the three months ended June 30, 2026 compared to $107.9 million for the three months ended June 30, 2025. The percentage leased was as follows for each segment as of June 30, 2026 and 2025:

Previous 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.

Current wording

(1)The percentage leased for our retail and office segments and the retail portion of our mixed-use segment includes the square footage under lease, including leases which may not have commenced as of June 30, 2026 or 2025, as applicable. Percentage leased for our multifamily properties includes total units leased and occupied as of the applicable date.

Previous 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):

Current wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue increased $2.0 million, or 2%, to $103.1 million for the three months ended June 30, 2026 compared to $101.1 million for the three months ended June 30, 2025. Rental revenue by segment was as follows (dollars in thousands):

Previous wording

Office rental revenue increased $1.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to new tenant leases at La Jolla Commons III. Same-store office rental revenue increased $0.7 million primarily due to an increase in occupancy and base rent at City Center Bellevue, Timber Ridge and Lloyd Portfolio. These increases were offset by lower occupancy at First & Main.

Current wording

Office rental revenue increased $0.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to new tenant leases at La Jolla Commons III, City Center Bellevue, Timber Ridge and One Beach Street. These increases were offset by lower occupancy at 14Acres and a one-time reserve for certain receivables related to an office tenant at Coastal Collection at Torrey Reserve. The company continues to pursue recovery of the outstanding amounts.

Previous wording

Multifamily rental revenue increased $1.1 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 revenue increased $0.2 million primarily due to an overall increase in average monthly base rent and overall occupancy. Same-store average monthly base rent and occupancy was $2,820 and 91.2%, for the three months ended March 31, 2026, respectively, compared to $2,777 and 90.5%, for the three months ended March 31, 2025, respectively.

Current wording

Multifamily rental revenue increased $0.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to an overall increase in average monthly base rent and a slight decrease in overall occupancy. Average monthly base rent and occupancy was $2,796 and 89.3%, for the three months ended June 30, 2026, respectively, compared to $2,725 and 89.5%, for the three months ended June 30, 2025, respectively.

Previous 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.

Current wording

Total mixed-use rental revenue increased $0.6 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to an increase of $0.5 million in rental revenue at our retail portion of our mixed-use property resulting from the collection of amounts previously reserved as bad debt. Additionally there was an increase at the hotel portion of our mixed-use property due to an increase in average occupancy and revenue per available room to 90.5% and $308 for the three months ended June 30, 2026, respectively, compared to 86.0% and $305 for the three months ended June 30, 2025, respectively.

Previous 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):

Current wording

Other property income. Other property income decreased $0.5 million, or 7%, to $6.4 million for the three months ended June 30, 2026 compared to $6.9 million for the three months ended June 30, 2025. Other property income by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Mixed-use other property income increased $0.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to an increase in room-related other 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 $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.

Current wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses increased $1.2 million, or 3%, to $41.6 million for the three months ended June 30, 2026 compared to $40.3 million for the three months ended June 30, 2025.

Previous 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):

Current wording

Rental Expenses. Rental expenses increased $2.1 million, or 7%, to $31.8 million for the three months ended June 30, 2026 compared to $29.7 million for the three months ended June 30, 2025. Rental expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Office rental expense increased $1.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to an increase in facilities services expense, utilities expense and repairs and maintenance expense.

Previous 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.

Current wording

Mixed-use rental expense increased $0.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 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 $0.9 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):

Current wording

Real Estate Taxes. Real estate taxes decreased $0.9 million, or 8%, to $9.8 million for the three months ended June 30, 2026 compared to $10.6 million for the three months ended June 30, 2025. Real estate tax expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Multifamily real estate taxes increased $0.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to supplemental real estate taxes at Genesee Park and an increase at Pacific Ridge Apartments due to a real estate tax refund received during 2025.

Previous 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):

Current wording

Property operating income increased $0.3 million to $67.9 million for the three months ended June 30, 2026, compared to $67.6 million for the three months ended June 30, 2025. Property operating income by segment was as follows (dollars in thousands):

Previous 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).

Current wording

(1)For this table and the 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 $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.

Current wording

Retail rental revenue decreased $0.7 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to the sale of Del Monte Center on February 25, 2025. Same-store retail rental revenue increased $1.0 million primarily due to new tenant leases and scheduled rent increases at Alamo Quarry Market, Lomas Santa Fe Plaza and Carmel Country Plaza. Additionally, there was an increase in cost recoveries of $0.2 million.

Previous wording

Multifamily other property income 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 parking income and other operating income at Hassalo on Eighth - Multifamily.

Current wording

Multifamily other property income increased $0.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to an increase in parking income and other operating income at Hassalo on Eighth - Multifamily.

Previous 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.

Current wording

Office rental expenses increased $2.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to a $1.9 million increase in same-store office rental expenses due to higher utilities, facilities services, and repairs and maintenance expenses, as well as increased expenses at La Jolla Commons Tower III related to new operations and amenities.

Previous 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.

Current wording

Retail rental expenses decreased $0.5 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to the sale of Del Monte Center in the first quarter of 2025. Same-store retail rental expenses increased $0.3 million due to an increase in repairs and maintenance expense, facilities service expense and marketing expense.

Previous 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.

Current wording

Total mixed-use rental expenses increased $1.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 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

Office real estate taxes increased $0.4 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in real estate taxes at La Jolla Commons III due to the fact that we stopped capitalizing real estate taxes when the building was placed into service on April 1, 2025.

Current wording

Office real estate taxes decreased $1.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to real estate tax refunds received at La Jolla Commons and Lloyd Portfolio, partially offset by an increase in tax consultant fees and an increase in real estate taxes at La Jolla Commons III due to the fact that we ceased capitalization of real estate taxes when the building was placed into service on April 1, 2025.

Previous 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.

Current wording

General and Administrative. General and administrative expenses decreased $0.5 million, or 3%, to $17.7 million for the six months ended June 30, 2026, compared to $18.2 million for the six months ended June 30, 2025. This decrease was primarily due to lower 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 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.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased $1.7 million, or 3%, to $65.0 million for the six months ended June 30, 2026, compared to $63.3 million for the six months ended June 30, 2025. This increase was primarily due to $0.8 million related to La Jolla Commons III assets which were placed into service on April 1, 2025. This increase was also related to new tenant improvements and building improvement assets placed into service.

Previous 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.

Current wording

Interest Expense, net. Interest expense increased $1.1 million, or 3%, to $39.6 million for the six months ended June 30, 2026 compared to $38.6 million for the six months ended June 30, 2025. This increase was primarily due to the amortization of the new loan fees associated with the Fourth Amended and Restated Credit Facility entered into on April 1, 2026 and 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. 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.

Current 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.

Previous 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.

Current wording

Other Income, net. Other income, net decreased $0.8 million, or 44%, for the six months ended June 30, 2026, compared to the six months ended June 30, 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 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.

Current wording

As of June 30, 2026, the company owned an approximate 78.96% partnership interest in the Operating Partnership. The remaining approximately 21.04% 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, 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.

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 six months ended June 30, 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.

Previous wording

Due to the nature of our business, we typically generate significant amounts of cash from operations. The cash generated from operations is used for the payment of operating expenses, capital expenditures, debt service and dividends to American Assets Trust, Inc.'s stockholders and our unitholders. As a REIT, American Assets Trust, Inc. must generally make annual distributions to its stockholders of at least 90% of its net taxable income. As of March 31, 2026, we held $118.3 million in cash and cash equivalents.

Current wording

Due to the nature of our business, we typically generate significant amounts of cash from operations. The cash generated from operations is used for the payment of operating expenses, capital expenditures, debt service and dividends to American Assets Trust, Inc.'s stockholders and our unitholders. As a REIT, American Assets Trust, Inc. must generally make annual distributions to its stockholders of at least 90% of its net taxable income. As of June 30, 2026, we held $109.7 million in cash and cash equivalents.

Previous wording

Our overall capital requirements for the remainder of 2026 will depend upon acquisition opportunities and the level of improvements and redevelopments on existing properties. Our capital investments will be funded on a short-term basis with, among other sources of capital, cash on hand, cash flow from operations and/or our revolving line of credit. On a long-term basis, our capital investments may be funded with additional long-term debt, including, without limitation, mortgage debt and unsecured notes. Our ability to incur additional debt will be dependent on a number of factors, including, without limitation, our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders. Our capital investments may also be funded by issuing additional equity including, without limitation, shares issued by American Assets Trust, Inc. under its ATM equity program or through an underwritten public offering. Although there is no intent at this time, if market conditions deteriorate or fail to improve, we may also delay the timing of future development and redevelopment projects as well as limit future acquisitions, reduce our operating expenditures, or re-evaluate our dividend policy.

Current wording

Our overall capital requirements for the remainder of 2026 and for the first half of 2027 will depend upon acquisition opportunities and the level of improvements and redevelopments on existing properties. Our capital investments will be funded on a short-term basis with, among other sources of capital, cash on hand, cash flow from operations and/or our revolving line of credit. On a long-term basis, our capital investments may be funded with additional long-term debt, including, without limitation, mortgage debt and unsecured notes. Our ability to incur additional debt will be dependent on a number of factors, including, without limitation, our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders. Our capital investments may also be funded by issuing additional equity including, without limitation, shares issued by American Assets Trust, Inc. under its ATM equity program or through an underwritten public offering. Although there is no intent at this time, if market conditions deteriorate or fail to improve, we may also delay the timing of future development and redevelopment projects as well as limit future acquisitions, reduce our operating expenditures, or re-evaluate our dividend policy.

Previous wording

Cash and cash equivalents were $118.3 million and $143.9 million at March 31, 2026 and 2025, respectively.

Current wording

Cash and cash equivalents were $109.7 million and $143.7 million at June 30, 2026 and 2025, respectively.