American Assets Trust, Inc.

Previous 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.

Current wording

Below is a summary of our same-store and redevelopment same-store composition for the three and nine months ended September 30, 2026 and 2025. One Beach Street is classified as a same-store property when compared to the designation for the three and nine months ended September 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 September 30, 2025 and a non-same-store property when compared to the designation for the nine months ended September 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 September 30, 2025 and a non-same-store property when compared to the designation for the nine months ended September 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 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.

Current wording

During the three months ended September 30, 2026, we signed 20 office leases for a total of 123,517 square feet of office space including 47,183 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 2.1% and 8.2%, respectively. New office leases for comparable spaces were signed for 3,196 square feet at an average rental rate increase on a cash and GAAP basis of 0.9% and 2.4%, respectively. Renewals for comparable office spaces were signed for 43,987 square feet at an average rental rate increase on a cash and GAAP basis of 2.2% and 8.7%, respectively. There were no new tenant improvements, or incentives on office space for comparable new leases during the three months ended September 30, 2026.

Previous 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.

Current wording

We capitalized external and internal costs related to new development, redevelopment, expansion and repositioning activities combined of $13.6 million and $5.4 million for the three months ended September 30, 2026 and 2025, respectively, and $36.8 million and $16.0 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

We capitalized external and internal costs related to other property improvements combined of $14.3 million and $12.8 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.

Current wording

We capitalized external and internal costs related to other property improvements combined of $9.1 million and $15.6 million for the three months ended September 30, 2026 and 2025, respectively, and $37.7 million and $40.7 million for the nine months ended September 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 six months ended June 30, 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 nine months ended September 30, 2025.

Previous 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:

Current wording

Total property revenues. Total property revenue consists of rental income and other property income. Total property revenue increased $4.7 million, or 4%, to $114.3 million for the three months ended September 30, 2026 compared to $109.6 million for the three months ended September 30, 2025. The percentage leased was as follows for each segment as of September 30, 2026 and 2025:

Previous 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):

Current wording

Rental income. Rental income includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental income increased $5.6 million, or 5%, to $107.8 million for the three months ended September 30, 2026 compared to $102.2 million for the three months ended September 30, 2025. Rental income by segment was as follows (dollars in thousands):

Previous wording

Retail rental revenue increased $0.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to a $0.4 million increase related to new tenant leases at Alamo Quarry Market, Lomas Santa Fe Plaza, Carmel Country Plaza and Waikele Center. Additionally, there was an increase in cost recoveries of $0.3 million.

Current wording

Retail rental income decreased $0.1 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 due to a decrease in cost recoveries of $0.7 million primarily due to prior year tax refunds received at Waikele Center that were passed back to tenants. These decreases were partially offset by increases related to new tenant leases at Alamo Quarry Market, Lomas Santa Fe Plaza and Gateway Marketplace.

Previous 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.

Current wording

Multifamily rental income increased $0.5 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to an overall increase in average monthly base rent in overall occupancy. Average monthly base rent and occupancy was $2,753 and 91.8%, for the three months ended September 30, 2026, respectively, compared to $2,693 and 89.9%, for the three months ended September 30, 2025, respectively.

Previous 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):

Current wording

Other property income. Other property income decreased $0.9 million, or 12%, to $6.4 million for the three months ended September 30, 2026 compared to $7.4 million for the three months ended September 30, 2025. Other property income by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses decreased $0.1 million, to $43.2 million for the three months ended September 30, 2026 compared to $43.3 million for the three months ended September 30, 2025.

Previous 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):

Current wording

Rental Expenses. Rental expenses increased $1.8 million, or 6%, to $33.6 million for the three months ended September 30, 2026 compared to $31.8 million for the three months ended September 30, 2025. Rental expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Office rental expense increased $0.8 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to an increase in facilities services expense, parking garage expense and utilities expense.

Previous 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.

Current wording

Mixed-use rental expense increased $1.2 million for the three months ended September 30, 2026 compared to the three months ended September 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 facilities service expense and repairs and maintenance expense at the retail portion of our mixed-use property.

Previous 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):

Current wording

Real Estate Taxes. Real estate taxes decreased $2.0 million, or 17%, to $9.5 million for the three months ended September 30, 2026 compared to $11.5 million for the three months ended September 30, 2025. Real estate tax expense by segment was as follows (dollars in thousands):

Previous wording

Office real estate taxes decreased $1.6 million for the three months ended June 30, 2026 compared to the three 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.

Current wording

Retail real estate taxes decreased $1.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to real estate tax refunds received at Waikele Center.

Previous 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.

Current wording

Multifamily real estate taxes decreased $0.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to real estate tax refunds received at Pacific Ridge and Hassalo on Eighth - Multifamily, partially offset by an increase in supplemental real estate taxes at Genesee Park.

Previous 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):

Current wording

Property operating income increased $4.9 million to $71.1 million for the three months ended September 30, 2026, compared to $66.3 million for the three months ended September 30, 2025. Property operating income by segment was as follows (dollars in thousands):

Previous wording

Retail operating income increased $0.1 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 Alamo Quarry Market, Lomas Santa Fe Plaza, Carmel Country Plaza and Waikele Center, and higher cost recoveries. These increases were offset by a decrease in other property income due to lease termination fees received at Alamo Quarry Market during 2025 and higher real estate taxes at Alamo Quarry Market due to increased property tax assessments during 2026 and real estate tax refunds received during 2025.

Current wording

Retail operating income increased $1.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to new tenant leases at Alamo Quarry Market, Lomas Santa Fe Plaza and Gateway Marketplace, real estate tax refunds received at Waikele Center and lower insurance expense, marketing expense, and repairs and maintenance expense.

Previous wording

Total mixed-use operating income increased $0.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to higher rental revenue at the retail portion of our mixed-use property from the collection of amounts previously reserved as bad debt, and higher revenue at the hotel portion driven by increased occupancy. Hotel average occupancy and revenue per available room were 90.5% and $308, respectively, for the three months ended June 30, 2026 compared to 86.0% and $305, respectively, for the three months ended June 30, 2025. These increases were offset by higher rental expenses from increased room-related expenses and excise tax at the hotel portion and higher personnel expense at the retail portion.

Current wording

Total mixed-use operating income increased $0.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to higher revenue at the hotel portion driven by higher occupancy and room rates. Hotel average occupancy and revenue per available room were 88.5% and $337, respectively, for the three months ended September 30, 2026 compared to 78.3% and $298, respectively, for the three months ended September 30, 2025. These increases were partially offset by higher room-related expenses and excise taxes at the hotel portion of the property and higher facilities services and repairs and maintenance expenses at the retail portion of the property.

Previous wording

General and Administrative. General and administrative expenses increased $0.1 million, or 1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This increase was primarily due to higher corporate legal expenses and consulting fees.

Current wording

General and Administrative. General and administrative expenses decreased $0.8 million, or 9%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. This decrease was primarily due to lower 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 decreased $0.1 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This decrease was primarily due to $0.9 million related to leases-in-place at Genesee Park, which fully amortized within a year of acquisition. This decrease was offset by an increase in new tenant improvements and building improvements assets placed into service.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased $1.0 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. This increase was primarily due to an increase in new tenant improvements and building improvements assets placed into service, partially offset by a decrease related to leases-in-place at Genesee Park, which fully amortized within a year of acquisition.

Previous wording

Interest Expense, net. Interest expense increased $0.1 million, or 1%, for the three months ended June 30, 2026, compared to the three 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.

Current wording

Interest Expense, net. Interest expense increased $0.2 million, or 1%, for the three months ended September 30, 2026, compared to the three months ended September 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.

Previous wording

Other Income, net. Other income, net decreased $0.5 million, or 54%, for the three months ended June 30, 2026, compared to the three 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.

Current wording

Other Income, net. Other income, net decreased $0.4 million, or 41%, for the three months ended September 30, 2026, compared to the three months ended September 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.

Previous wording

The following summarizes our consolidated results of operations for the six months ended June 30, 2026 compared to our consolidated results of operations for the six months ended June 30, 2025.

Current wording

The following summarizes our consolidated results of operations for the nine months ended September 30, 2026 compared to our consolidated results of operations for the nine months ended September 30, 2025.

Previous wording

The following table sets forth selected data from our unaudited consolidated statements of income for the six months ended June 30, 2026 and 2025 (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, 2026 and 2025 (dollars in thousands):

Previous wording

Total property revenues. Total property revenue consists of rental revenue and other property income. Total property revenue increased $3.5 million, or 2%, to $220.1 million for the six months ended June 30, 2026 compared to $216.5 million for the six months ended June 30, 2025. The percentage leased was as follows for each segment as of June 30, 2026 and 2025:

Current wording

Total property revenues. Total property revenue consists of rental income and other property income. Total property revenue increased $8.2 million, or 3%, to $334.4 million for the nine months ended September 30, 2026 compared to $326.1 million for the nine months ended September 30, 2025. The percentage leased was as follows for each segment as of September 30, 2026 and 2025:

Previous wording

Rental revenues. Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental revenue increased $3.5 million, or 2%, to $207.5 million for the six months ended June 30, 2026 compared to $204.0 million for the six months ended June 30, 2025. Rental revenue by segment was as follows (dollars in thousands):

Current wording

Rental income. Rental income includes minimum base rent, cost reimbursements, percentage rents and other rents. Rental income increased $9.1 million, or 3%, to $315.4 million for the nine months ended September 30, 2026 compared to $306.2 million for the nine months ended September 30, 2025. Rental income by segment was as follows (dollars in thousands):

Previous wording

Office rental revenue increased $2.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to new tenant leases commencing at La Jolla Commons III. Same-store rental revenue decreased $1.2 million primarily due to a tenant relocating from La Jolla Commons I to La Jolla Commons III and the reassessment of the respective straight-line rent. Additionally, the decrease was due to lower occupancy and annualized base rents at Coastal Collection at Torrey Reserve, 14Acres and First & Main 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. These decreases were partially offset by new leases at City Center Bellevue, Timber Ridge and One Beach Street.

Current wording

Office rental income increased $5.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to new tenant leases commencing at La Jolla Commons III. Same-store rental income increased $1.9 million primarily due to new leases at City Center Bellevue, Timber Ridge, Lloyd Portfolio and One Beach Street. These increases were partially offset by vacancies at 14Acres and First & Main and reassessment of straight-line rent as a tenant relocated from La Jolla Commons I to La Jolla Commons III.

Previous 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.

Current wording

Retail rental income decreased $0.8 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to the sale of Del Monte Center on February 25, 2025. Same-store retail rental income increased $0.8 million primarily due to new tenant leases and scheduled rent increases at Alamo Quarry Market, Lomas Santa Fe Plaza, Gateway Marketplace and Carmel Country Plaza. These increases were partially offset by a decrease in cost recoveries of $0.5 million, mainly due to prior year tax refunds received at Waikele Center that were passed back to tenants.

Previous wording

Multifamily revenue increased $1.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to the acquisition of Genesee Park. Same-store multifamily revenue increased $0.2 million due to an increase in average monthly base rent and occupancy, which was $2,833 and 89.8% for the six months ended June 30, 2026 compared to $2,784 and 89.7% for the six months ended June 30, 2025.

Current wording

Multifamily rental income increased $1.8 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to the acquisition of Genesee Park. Same-store multifamily rental income increased $0.6 million due to an increase in average monthly base rent and occupancy, which was $2,818 and 90.4% for the nine months ended September 30, 2026 compared to $2,771 and 89.6% for the nine months ended September 30, 2025.

Previous wording

Mixed-use rental revenue increased $0.9 million for the six months ended June 30, 2026 compared to the six 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 due to collections of previously reserved 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 91.2% and $306 for the six months ended June 30, 2026, respectively, compared to 85.3% and $302 for the six months ended June 30, 2025, respectively.

Current wording

Mixed-use rental income increased $2.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to an increase at the hotel portion of our mixed-use property due to an increase in average occupancy and revenue per available room to 90.3% and $317 for the nine months ended September 30, 2026, respectively, compared to 82.9% and $300 for the nine months ended September 30, 2025, respectively. Additionally, there was an increase at the retail portion of our mixed-use property due to collections of previously reserved bad debt and increase in percentage rent revenue.

Previous wording

Other property income. Other property income remained flat at $12.5 million for the six months ended June 30, 2026 and the six months ended June 30, 2025. Other property income by segment was as follows (dollars in thousands):

Current wording

Other property income. Other property income decreased $0.9 million, or 4% , to $19.0 million for the nine months ended September 30, 2026 compared to $19.9 million for the nine months ended September 30, 2025. Other property income by segment was as follows (dollars in thousands):

Previous wording

Office other property income decreased $0.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to lease termination fees received at Timber Ridge and lease settlement income received at City Center Bellevue during 2025, which were partially offset by an increase in parking garage income at La Jolla Commons and Lloyd Portfolio.

Current wording

Office other property income decreased $1.5 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to lease termination fees received at 14Acres and Timber Ridge and lease settlement income received at City Center Bellevue during 2025, which were partially offset by an increase in parking garage income at La Jolla Commons and Lloyd Portfolio.

Previous wording

Retail other property income decreased $0.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to lease termination fees received at Alamo Quarry Market during 2025.

Current wording

Retail other property income decreased $0.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to lease termination fees received at Alamo Quarry Market during 2025.

Previous 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.

Current wording

Multifamily other property income increased $0.4 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to an increase in parking income and other operating income at Hassalo on Eighth - Multifamily.

Previous wording

Total mixed-use other property income increased $0.4 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 other income driven by higher occupancy at the hotel portion of our mixed-use property and higher parking income at the retail portion of our mixed-use property.

Current wording

Total mixed-use other property income increased $0.4 million for the nine months ended September 30, 2026 compared to the nine months ended September 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, partially offset by lease settlement income received at the retail portion of our mixed-use property during 2025.

Previous wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses increased by $3.6 million to $85.2 million for the six months ended June 30, 2026, compared to $81.6 million for the six months ended June 30, 2025. This increase in total property expenses was attributable primarily to the factors discussed below.

Current wording

Total Property Expenses. Total property expenses consist of rental expenses and real estate taxes. Total property expenses increased by $3.5 million to $128.4 million for the nine months ended September 30, 2026, compared to $124.9 million for the nine months ended September 30, 2025. This increase in total property expenses was attributable primarily to the factors discussed below.

Previous wording

Rental Expenses. Rental expenses increased $3.5 million, or 6%, to $63.5 million for the six months ended June 30, 2026, compared to $60.0 million for the six months ended June 30, 2025. Rental expense by segment was as follows (dollars in thousands):

Current wording

Rental Expenses. Rental expenses increased $5.3 million, or 6%, to $97.1 million for the nine months ended September 30, 2026, compared to $91.7 million for the nine months ended September 30, 2025. Rental expense by segment was as follows (dollars in thousands):

Previous 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.

Current wording

Office rental expenses increased $2.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to a $2.7 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.