What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-31 · 172 added, 325 removed, 746 unchanged (40% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

September 30, December 31,

March 31, December 31,

Real estate, at cost

4 unchanged sentences

Accumulated depreciation ( 1,167,625 ) ( 1,144,259 )

Real estate, net 2,626,930 2,587,486

Net real estate 2,611,396 2,619,368

Cash and cash equivalents 118,340 129,362

2 unchanged sentences

Other assets, net 79,770 80,497

Real estate assets held for sale — 77,519

TOTAL ASSETS $ 2,900,567 $ 2,921,276

4 unchanged sentences

Security deposits payable 10,503 10,063

Other liabilities and deferred credits, net 61,705 62,588

Liabilities related to real estate assets held for sale — 3,352

Other liabilities and deferred credits 60,279 61,304

Total liabilities 1,827,850 1,830,071

2 unchanged sentences

stockholders’ equity

Common stock, $ 0.01 par value, 490,000,000 shares authorized, 61,152,542 and 61,138,238 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Common stock, $ 0.01 par value, 490,000,000 shares authorized, 61,390,936 and 61,390,936 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,481,552 1,479,870

10 unchanged sentences

(In Thousands, Except Shares and Per Share Data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Rental income $ 104,422 $ 102,951

25 unchanged sentences

Net income $ 6,739 $ 54,107

Other comprehensive income - unrealized loss on swap derivatives during the period ( 626 ) ( 3,733 ) ( 2,586 ) ( 3,191 )

Other comprehensive income - unrealized loss on treasury locks during the period — ( 1,345 ) — ( 1,345 )

Other comprehensive loss - unrealized loss on swap derivatives during the period ( 276 ) ( 1,192 )

Reclassification of amortization of forward-starting swap included in interest expense ( 258 ) ( 258 )

15 unchanged sentences

Balance at December 31, 2025

61,390,936 $ 614 $ 1,479,870 $ ( 331,086 ) $ 1,419 $ ( 59,612 ) $ 1,091,205

Net income — — — 5,370 — 1,369 6,739

Forfeiture of restricted stock ( 3,508 ) — — — — — —

Dividends declared and paid — — — ( 20,873 ) — ( 5,502 ) ( 26,375 )

3 unchanged sentences

Balance at March 31, 2026 61,390,936 $ 614 $ 1,481,552 $ ( 346,589 ) $ 998 $ ( 63,858 ) $ 1,072,717

Net income — — — 5,662 — 1,459 7,121

Issuance of restricted stock 17,812 1 — — — — 1

Dividends declared and paid — — — ( 20,793 ) — ( 5,501 ) ( 26,294 )

Stock-based compensation — — 1,683 — — — 1,683

Other comprehensive loss - change in value of interest rate swaps — — — — ( 605 ) ( 163 ) ( 768 )

Reclassification of amortization of forward-starting swap included in interest expense — — — — ( 203 ) ( 55 ) ( 258 )

Balance at June 30, 2025 61,152,542 $ 612 $ 1,478,222 $ ( 297,518 ) $ 2,809 $ ( 50,280 ) $ 1,133,845

Net income — — — 4,716 — 1,205 5,921

Dividends declared and paid — — — ( 20,792 ) — ( 5,502 ) ( 26,294 )

Stock-based compensation — — 1,803 — — — 1,803

Other comprehensive loss - change in value of interest rate swaps — — — — ( 494 ) ( 132 ) ( 626 )

Reclassification of amortization of forward-starting swap included in interest expense — — — — ( 204 ) ( 54 ) ( 258 )

Balance at September 30, 2025 61,152,542 $ 612 $ 1,480,025 $ ( 313,594 ) $ 2,111 $ ( 54,763 ) $ 1,114,391

American Assets Trust, Inc.

10 unchanged sentences

Stock-based compensation — — 1,670 — — — 1,670

Other comprehensive income - change in value of interest rate swaps — — — — 1,100 292 1,392

Reclassification of amortization of forward-starting swap included in interest expense — — — — ( 78 ) ( 20 ) ( 98 )

Balance at March 31, 2024 60,894,491 $ 609 $ 1,470,823 $ ( 281,183 ) $ 9,304 $ ( 44,165 ) $ 1,155,388

Net income — — — 12,099 — 3,195 15,294

Issuance of restricted stock 9,180 — — — — — —

Forfeiture of restricted stock ( 2,088 ) — — — — — —

Dividends declared and paid — — — ( 20,402 ) — ( 5,421 ) ( 25,823 )

Stock-based compensation — — 1,746 — — — 1,746

Shares withheld for employee taxes — — — — — — —

Other comprehensive loss - change in value of interest rate swaps — — — — ( 939 ) ( 253 ) ( 1,192 )

Reclassification of amortization of forward-starting swap included in interest expense — — — — ( 204 ) ( 54 ) ( 258 )

Balance at June 30, 2024 60,901,583 $ 609 $ 1,472,569 $ ( 289,486 ) $ 8,557 $ ( 46,593 ) $ 1,145,656

Net income — — — 16,851 — 4,467 21,318

Dividends declared and paid — — — ( 20,402 ) — ( 5,420 ) ( 25,822 )

Stock-based compensation — — 1,985 — — — 1,985

Other comprehensive loss - change in value of interest rate swaps — — — — ( 2,944 ) ( 789 ) ( 3,733 )

Other comprehensive loss - unrealized loss on treasury locks — — — — ( 1,061 ) ( 284 ) ( 1,345 )

Reclassification of amortization of forward-starting swap included in interest expense — — — — ( 77 ) ( 21 ) ( 98 )

Balance at September 30, 2024 60,901,583 $ 609 $ 1,474,554 $ ( 293,037 ) $ 4,475 $ ( 48,640 ) $ 1,137,961

Balance at March 31, 2025

61,134,730 $ 611 $ 1,476,539 $ ( 282,387 ) $ 3,617 $ ( 46,020 ) $ 1,152,360

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(In Thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

OPERATING ACTIVITIES

7 unchanged sentences

Stock-based compensation expense 1,682 1,670

Settlement of treasury locks — ( 1,345 )

Other noncash interest expense, net ( 258 ) ( 258 )

12 unchanged sentences

Leasing commissions ( 2,806 ) ( 785 )

Net cash used in investing activities ( 9,614 ) ( 56,763 )

Net cash (used in) provided by investing activities ( 23,240 ) 32,675

FINANCING ACTIVITIES

Proceeds from unsecured line of credit — 100,000

Repayment of unsecured line of credit — ( 100,000 )

Repayment of unsecured term loan — ( 225,000 )

Proceeds from unsecured notes payable — 523,273

Repayment of unsecured notes payable — ( 100,000 )

Debt issuance costs — ( 5,392 )

Dividends paid to common stock and unitholders ( 26,375 ) ( 26,288 )

Net cash (used in) provided by financing activities ( 403,876 ) 340,415

Net (decrease) increase in cash and cash equivalents ( 286,945 ) 450,116

Net cash used in financing activities ( 26,375 ) ( 351,288 )

Net decrease in cash and cash equivalents ( 11,022 ) ( 281,744 )

Cash and cash equivalents, beginning of period 129,362 425,659

4 unchanged sentences

(In Thousands, Except Unit Data)

September 30, December 31,

March 31, December 31,

Real estate, at cost

4 unchanged sentences

Accumulated depreciation ( 1,167,625 ) ( 1,144,259 )

Real estate, net 2,626,930 2,587,486

Net real estate 2,611,396 2,619,368

Cash and cash equivalents 118,340 129,362

2 unchanged sentences

Other assets, net 79,770 80,497

Real estate assets held for sale — 77,519

TOTAL ASSETS $ 2,900,567 $ 2,921,276

4 unchanged sentences

Security deposits payable 10,503 10,063

Other liabilities and deferred credits, net 61,705 62,588

Liabilities related to real estate assets held for sale — 3,352

Other liabilities and deferred credits 60,279 61,304

Total liabilities 1,827,850 1,830,071

Commitments and contingencies (Note 11)

Limited partners' capital, 16,181,537 and 16,181,537 units issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Limited partners' capital, 16,181,537 and 16,181,537 units issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

( 64,655 ) ( 60,522 )

General partner's capital, 61,152,542 and 61,138,238 units issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

General partner's capital, 61,390,936 and 61,390,936 units issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

1,135,577 1,149,398

6 unchanged sentences

(In Thousands, Except Shares and Per Unit Data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Rental income $ 104,422 $ 102,951

26 unchanged sentences

Other comprehensive income - unrealized loss on swap derivatives during the period ( 276 ) ( 1,192 )

Other comprehensive income - unrealized (loss) on treasury locks during the period — ( 1,345 ) — ( 1,345 )

Reclassification of amortization of forward-starting swap included in interest expense ( 258 ) ( 258 )

11 unchanged sentences

Balance at December 31, 2025

16,181,537 $ ( 60,522 ) 61,390,936 $ 1,149,398 $ 2,329 $ 1,091,205

Net income — 1,369 — 5,370 — 6,739

Forfeiture of restricted units — — ( 3,508 ) — — —

Distributions — ( 5,502 ) — ( 20,873 ) — ( 26,375 )

3 unchanged sentences

Balance at March 31, 2026

Net income — 1,459 — 5,662 — 7,121

Issuance of restricted units — — 17,812 1 — 1

Distributions — ( 5,501 ) — ( 20,793 ) — ( 26,294 )

Stock-based compensation — — — 1,683 — 1,683

Other comprehensive loss - change in value of interest rate swap — — — — ( 768 ) ( 768 )

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 258 ) ( 258 )

Balance at June 30, 2025 16,181,537 $ ( 51,560 ) 61,152,542 $ 1,181,316 $ 4,089 $ 1,133,845

Net income — 1,205 — 4,716 — 5,921

Distributions — ( 5,502 ) — ( 20,792 ) — ( 26,294 )

Stock-based compensation — — — 1,803 — 1,803

Other comprehensive loss - change in value of interest rate swap — — — — ( 626 ) ( 626 )

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 258 ) ( 258 )

Balance at September 30, 2025 16,181,537 $ ( 55,857 ) 61,152,542 $ 1,167,043 $ 3,205 $ 1,114,391

16,181,537 $ ( 64,655 ) 61,390,936 $ 1,135,577 $ 1,795 $ 1,072,717

Limited Partners' Capital (1)

7 unchanged sentences

Stock-based compensation — — — 1,670 — 1,670

Other comprehensive income - change in value of interest rate swap — — — — 1,392 1,392

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 98 ) ( 98 )

Balance at March 31, 2024 16,181,537 $ ( 47,190 ) 60,894,491 $ 1,190,249 $ 12,329 $ 1,155,388

Net income — 3,195 — 12,099 — 15,294

Issuance of restricted units — — 9,180 — — —

Forfeiture of restricted units — — ( 2,088 ) — — —

Distributions — ( 5,421 ) — ( 20,402 ) — ( 25,823 )

Stock-based compensation — — — 1,746 — 1,746

Other comprehensive loss - change in value of interest rate swap — — — — ( 1,192 ) ( 1,192 )

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 258 ) ( 258 )

Balance at June 30, 2024 16,181,537 $ ( 49,416 ) 60,901,583 $ 1,183,692 $ 11,380 $ 1,145,656

Net income — 4,467 — 16,851 — 21,318

Distributions — ( 5,420 ) — ( 20,402 ) — ( 25,822 )

Stock-based compensation — — — 1,985 — 1,985

Other comprehensive income - change in value of interest rate swap — — — — ( 3,733 ) ( 3,733 )

Other comprehensive income - unrealized loss on treasury locks — — — — ( 1,345 ) ( 1,345 )

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 98 ) ( 98 )

Balance at September 30, 2024 16,181,537 $ ( 50,369 ) 60,901,583 $ 1,182,126 $ 6,204 $ 1,137,961

Balance at March 31, 2025

16,181,537 $ ( 47,518 ) 61,134,730 $ 1,194,763 $ 5,115 $ 1,152,360

(1) Consists of limited partnership interests held by third parties.

4 unchanged sentences

(Unaudited, In Thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

OPERATING ACTIVITIES

7 unchanged sentences

Stock-based compensation expense 1,682 1,670

Settlement of treasury locks — ( 1,345 )

Other noncash interest expense, net ( 258 ) ( 258 )

12 unchanged sentences

Leasing commissions ( 2,806 ) ( 785 )

Net cash used in investing activities ( 9,614 ) ( 56,763 )

Net cash (used in) provided by investing activities ( 23,240 ) 32,675

FINANCING ACTIVITIES

Proceeds from unsecured line of credit — 100,000

Repayment of unsecured line of credit — ( 100,000 )

Repayment of unsecured term loan — ( 225,000 )

Proceeds from unsecured notes payable — 523,273

Repayment of unsecured notes payable — ( 100,000 )

Debt issuance costs — ( 5,392 )

Distributions ( 26,375 ) ( 26,288 )

Net cash (used in) provided by financing activities ( 403,876 ) 340,415

Net (decrease) increase in cash and cash equivalents ( 286,945 ) 450,116

Net cash used in financing activities ( 26,375 ) ( 351,288 )

Net decrease in cash and cash equivalents ( 11,022 ) ( 281,744 )

Cash and cash equivalents, beginning of period 129,362 425,659

4 unchanged sentences

Notes to Consolidated Financial Statements

September 30, 2025

March 31, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 unchanged sentences

We are a full service, vertically integrated, and self-administered REIT with approximately 238 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing.

As of September 30, 2025, we owned or had a controlling interest in 31 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate.

Additionally, as of September 30, 2025, we owned land at two of our properties that we classify as held for development and/or construction in progress.

As of March 31, 2026, we owned or had a controlling interest in 31 office, retail, multifamily and mixed-use operating properties, the operations of which we consolidate.

Additionally, as of March 31, 2026, we owned land at two of our properties that we classify as held for development and/or construction in progress.

A summary of the properties owned by us is as follows:

La Jolla Commons One Beach Street 14Acres (formerly known as Eastgate Office Park)

Torrey Reserve Campus First & Main Timber Ridge (formerly known as Corporate Campus East III)

Torrey Point Lloyd Portfolio

Solana Crossing City Center Bellevue Timber Springs (formerly known as Bel-Spring 520)

The Landmark at One Market

La Jolla Commons First & Main Timber Springs

Torrey Point Lloyd Portfolio Coastal Collection at Torrey Reserve

Solana Crossing City Center Bellevue

The Landmark at One Market 14Acres

One Beach Street Timber Ridge

Carmel Country Plaza Gateway Marketplace Hassalo on Eighth - Retail

15 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

Basis of Presentation

15 unchanged sentences

Actual results could differ from these estimates.

Any reference to the number of properties, number of units, square footage, employee numbers or percentages of beneficial ownership of our shares are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.

Any reference to the number of properties, number of units, square footage, employee numbers or percentages of beneficial ownership of our shares are unaudited.

Consolidated Statements of Cash Flows—Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows (in thousands):

Nine Months Ended September 30,

Three Months Ended March 31,

Supplemental cash flow information

10 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

Significant Accounting Policies

We describe our significant accounting policies in Note 1 to the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no changes to our significant accounting policies during the nine months ended September 30, 2025.

There have been no changes to our significant accounting policies during the three months ended March 31, 2026.

Segment Information

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes.

We operate in four reportable business segments:

We operate in four reportable segments:

the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate.

7 unchanged sentences

Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risks.

Hotel revenue recognized at Waikiki Beach Walk Embassy Suites™ Hotel is in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” and is included within rental income on the statement of comprehensive income.

We make estimates of the collectability of our current accounts receivable and straight-line rents receivable which require significant judgment by management.

The collectability of receivables is affected by numerous different factors including current economic conditions, the impact of tenant bankruptcies, the status of collectability of current cash rents receivable, tenants' recent and historical financial and operating results, changes in our tenants' credit ratings, communications between our operating personnel and tenants, the extent of security deposits and letters of credit held with respect to tenants, and the ability of tenants to perform under the terms of their lease agreement.

The provision for doubtful accounts at September 30, 2025 and December 31, 2024 was approximately $ 1.4 million and $ 2.0 million, respectively.

Other revenue recognition policies

The allowance for doubtful accounts at March 31, 2026 and December 31, 2025 was approximately $ 1.2 million and $ 1.3 million, respectively.

When we enter into a transaction to sell a property or a portion of a property, we evaluate the recognition of the sale under ASC 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets,” to determine whether and when control transfers and how to measure the associated gain or loss.

2 unchanged sentences

We analyze the risk of a significant gain reversal and if necessary limit the amount of variable consideration recognized in order to mitigate this risk.

The estimation of variable consideration requires us to make assumptions and apply significant judgment.

The estimation of variable consideration may require us to make assumptions and apply significant judgment.

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures, that requires the quarterly disclosure of segment expenses if they are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”), and (iii) included in each reported measure of a segment’s profit or loss.

In addition, this ASU requires an annual disclosure of the CODM’s title and a description of how the CODM uses the segment’s profit/loss measure to assess segment performance and to allocate resources.

We retrospectively adopted ASU 2023-07 during the year ended December 31, 2024.

While the adoption has no impact on our financial statements, it has resulted in incremental disclosures within the footnotes to our consolidated financial statements (see Note 17 Segment Reporting).

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .

This pronouncement requires enhanced income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.

This pronouncement is effective for annual periods in fiscal years beginning after December 15, 2024, and should be applied either prospectively or retrospectively.

We are currently evaluating the impact this pronouncement will have on our disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures.

5 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

On February 28, 2025, we acquired Genesee Park in San Diego, California, consisting of a 192 -unit apartment community.

The purchase price was $ 67.9 million , excluding closing costs of approximately $ 0.1 million.

The property was acquired with cash on hand, primarily from the proceeds received on the sale of Del Monte Center on February 25, 2025.

The financial information set forth below summarizes the company’s purchase price allocation for Genesee Park during the nine months ended September 30, 2025 (in thousands):

Land $ 27,125

Building 38,101

Land improvements 1,156

Furniture, fixtures, and equipment 274

Total real estate 66,656

Lease intangibles 1,373

Prepaid expenses and other assets 114

Assets acquired $ 68,143

Security deposits payable ( 236 )

Other liabilities and deferred credits ( 28 )

Liabilities assumed $ ( 264 )

The following table summarizes the operating results for Genesee Park included in the company's historical consolidated statement of operations for the period of acquisition through September 30, 2025 (in thousands):

Revenues $ 2,695

Operating expenses 3,669

Operating income ( 974 )

Other income, net 2

Net income attributable to American Assets Trust, Inc.

On February 25, 2025, we sold Del Monte Center, which is located in Monterey, California and was previously included in our retail segment.

The sale price of this property was $ 123.5 million, less closing costs and prorations, resulting in net proceeds of approximately $ 117.8 million.

Accordingly, we recorded a gain on sale of approximately $ 44.5 million for the nine months ended September 30, 2025.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

ACQUIRED IN-PLACE LEASES AND ABOVE/BELOW MARKET LEASES

The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

In-place leases $ 48,086 $ 48,489

24 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of September 30, 2025 we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivative.

However, as of March 31, 2026 we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivative.

As a result, we have determined that our derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy.

A summary of our financial liabilities that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

5 unchanged sentences

The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.

The carrying values of our term loans set forth below are deemed to be at fair value since the outstanding debt is directly tied to the monthly Secured Overnight Financing Rate (“SOFR”).

The carrying value of our term loan set forth below is deemed to be at fair value since the outstanding debt is directly tied to the monthly Secured Overnight Financing Rate (“SOFR”).

A summary of the carrying amount and fair value of our secured financial instruments, all of which are based on Level 2 inputs, is as follows (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Carrying Value Fair Value Carrying Value Fair Value

Secured notes payable, net $ 74,872 $ 74,667 $ 74,849 $ 74,728

Unsecured term loans, net $ 99,837 $ 100,000 $ 324,739 $ 325,000

Unsecured term loan, net $ 99,902 $ 100,000 $ 99,869 $ 100,000

Unsecured senior guaranteed notes, net $ 499,500 $ 483,601 $ 499,437 $ 483,339

4 unchanged sentences

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The following is a summary of the terms of our outstanding interest rate swaps as of September 30, 2025 (dollars in thousands):

The following is a summary of the terms of our outstanding interest rate swaps as of March 31, 2026 (dollars in thousands):

Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value

8 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative.

2 unchanged sentences

The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

OTHER ASSETS, NET

Other assets consist of the following (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Leasing commissions, net of accumulated amortization of $ 55,956 and $ 56,094 , respectively

8 unchanged sentences

Prepaid expenses and other 11,173 10,956

Total other assets $ 82,765 $ 87,737

Total other assets, net $ 79,770 $ 80,497

OTHER LIABILITIES AND DEFERRED CREDITS

Other liabilities and deferred credits consist of the following (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Acquired below market leases, net $ 10,504 $ 10,923

12 unchanged sentences

however, American Assets Trust, Inc.

has guaranteed the Operating Partnership's obligations under the (i) 3.375 % and 6.150 % senior notes, (ii) senior guaranteed notes, (iii) third amended and restated credit facility, and (iv) amended and restated term loan agreement, each discussed below.

has guaranteed the Operating Partnership's obligations under the (i) 3.375 % and 6.150 % senior notes, (ii) senior guaranteed notes, and (iii) third amended and restated credit facility (see Note 17.

Subsequent Events), each discussed below.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

Debt of American Assets Trust, L.P.

Secured notes payable

The following table is a summary of our total secured notes payable outstanding as of September 30, 2025 and December 31, 2024 (in thousands):

The following table is a summary of our total secured notes payable outstanding as of March 31, 2026 and December 31, 2025 (in thousands):

Principal Balance as of Stated Interest Rate Stated Maturity Date

Description of Debt September 30, 2025 December 31, 2024 as of September 30, 2025

Description of Debt March 31, 2026 December 31, 2025 as of March 31, 2026

City Center Bellevue (1)

7 unchanged sentences

Certain loans require the Operating Partnership to comply with various financial covenants.

As of September 30, 2025, the Operating Partnership was in compliance with these financial covenants.

As of March 31, 2026, the Operating Partnership was in compliance with these financial covenants.

Unsecured notes payable

The following table is a summary of the Operating Partnership's total unsecured notes payable outstanding as of September 30, 2025 and December 31, 2024 (in thousands):

The following table is a summary of the Operating Partnership's total unsecured notes payable outstanding as of March 31, 2026 and December 31, 2025 (in thousands):

Description of Debt Principal Balance as of Stated Interest Rate Stated Maturity Date

September 30, 2025 December 31, 2024 as of September 30, 2025

March 31, 2026 December 31, 2025 as of March 31, 2026

Term Loan A $ 100,000 $ 100,000 Variable (1)

January 5, 2027 (2)

Term Loan B — 150,000 Variable (3)

January 5, 2025 (2)

Term Loan C — 75,000 Variable (3)

January 5, 2025 (2)

Senior Guaranteed Notes, Series C — 100,000 4.50 % April 1, 2025 (4)

Senior Guaranteed Notes, Series D 250,000 250,000 4.29 % (3)

12 unchanged sentences

Total Unsecured Notes Payable $ 1,613,295 $ 1,612,761

(1) The Operating Partnership entered into two interest rate swap agreements that are intended to fix the interest rate associated with Term Loan A at approximately 2.70 % through its maturity date, subject to adjustments based on our consolidated leverage ratio.

(2) On January 2, 2025, we repaid the entirety of Term Loan B and Term Loan C.

(3) The Operating Partnership entered into interest rate swap agreements that are intended to fix the effective interest rate associated with Term Loan B and Term Loan C, subject to adjustments based on our consolidated leverage ratio, at, 5.47 % from January 5, 2023 to January 4, 2024 and at 5.57 % from January 5, 2024 to January 4, 2025.

(4) The Senior C Notes were prepaid in full on February 3, 2025, without penalty or premium.

(1) The Operating Partnership entered into two interest rate swap agreements that are intended to fix the interest rate associated with Term Loan A at approximately 2.70 % through January 5, 2027, subject to adjustments based on our consolidated leverage ratio.

(2) On April 1, 2026, we extended the maturity date of Term Loan A to April 1, 2030, subject to one , twelve-month extension option.

(3) The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $ 10.4 million.

The forward-starting interest swap rate contracts were deemed to be highly effective cash flow hedges, accordingly, the effective interest rate is approximately 3.87 % per annum.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

(4) The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $ 0.7 million.

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The treasury lock contracts were deemed to be a highly effective cash flow hedges, accordingly, the effective interest rate is approximately 6.209 % per annum.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

On January 26, 2021, the Operating Partnership issued $ 500 million of senior unsecured notes (the “ 3.375 % Senior Notes”) that mature February 1, 2031 and bear interest at 3.375 % per annum.

The 3.375 % Senior Notes were priced at 98.935 % of the principal amount with a yield to maturity of 3.502 %.

The net proceeds of the 3.375 % Senior Notes, after the issuance discount, underwriting fees, and other costs were approximately $ 489.7 million, which were primarily used to (i) prepay our $ 150 million Senior Guaranteed Notes, Series A, with a make-whole payment (as defined in the Note Purchase Agreement for the Series A Notes) thereon of approximately $ 3.9 million, on January 26, 2021, (ii) repay our $ 100 million then outstanding balance under our then-existing revolver loan on January 26, 2021, (iii) fund the development of the La Jolla Commons III office building and (iv) for general corporate purposes.

The net proceeds of the 3.375 % Senior Notes, after the issuance discount, underwriting fees, and other costs were approximately $ 489.7 million, which were primarily used (i) to prepay our $ 150 million Senior Guaranteed Notes, Series A, with a make-whole payment thereon of approximately $ 3.9 million, on January 26, 2021, (ii) to repay our $ 100 million then outstanding balance under our then-existing revolver loan on January 26, 2021, (iii) to fund the development of the La Jolla Commons III office building and (iv) for general corporate purposes.

On September 17, 2024, the Operating Partnership issued $ 525 million of senior unsecured notes (the “ 6.150 % Senior Notes”) that mature October 1, 2034, and bear interest at 6.150 % per annum.

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The net proceeds of the 6.150 % Senior Notes, after the issuance discount, underwriting fees, and other costs, were approximately $ 518.2 million.

To date, the net proceeds were used to repay the $ 100 million then outstanding balance under our Revolver Loan on September 19, 2024, our Series B Notes in the amount of $ 100 million on December 2, 2024, and our Series C Notes in the amount of $ 100 million on February 3, 2025.

To date, the net proceeds were used to repay (i) the $ 100 million then outstanding balance under our Revolver Loan on September 19, 2024, (ii) our Series B Notes in the amount of $ 100 million on December 2, 2024, and (iii) our Series C Notes in the amount of $ 100 million on February 3, 2025.

The remaining net proceeds are intended to be used for working capital and general corporate purposes.

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• A minimum maintenance of total unencumbered assets of 150 %.

As of September 30, 2025, the Operating Partnership was in compliance with all then in-place 3.375 % Senior Notes and 6.15 % Senior Notes covenants.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

As of March 31, 2026, the Operating Partnership was in compliance with all then in-place 3.375 % Senior Notes and 6.15 % Senior Notes covenants.

Senior Guaranteed Notes

On October 31, 2014, the Operating Partnership entered into a note purchase agreement (the “Note Purchase Agreement”) with a group of institutional purchasers that provided for the private placement of an aggregate of $ 350 million of senior guaranteed notes, of which (i) $ 150 million are designated as 4.04 % Senior Guaranteed Notes, Series A, due October 31, 2021 (the “Series A Notes”), (ii) $ 100 million are designated as 4.45 % Senior Guaranteed Notes, Series B, due February 2, 2025 (the “Series B Notes”) and (iii) $ 100 million are designated as 4.50 % Senior Guaranteed Notes, Series C, due April 1, 2025 (the “Series C Notes”).

The Series A Notes were issued on October 31, 2014, the Series B Notes were issued on February 2, 2015 and the Series C Notes were issued on April 2, 2015.

The Series A Notes, the Series B Notes and the Series C Notes will pay interest quarterly on the last day of January, April, July and October until their respective maturities.

On January 26, 2021, we repaid the entirety of the $ 150.0 million Series A Notes with a make-whole payment (as defined in the Note Purchase Agreement) of approximately $ 3.9 million.

On December 2, 2024, we repaid the entirety of the $ 100 million Series B Notes.

On February 3, 2025, we repaid the entirety of the $ 100 million Series C Notes.

On March 1, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $ 250 million of 4.29 % Senior Guaranteed Notes, Series D, due March 1, 2027 (the “Series D Notes”).

On March 1, 2017, the Operating Partnership entered into a Note Purchase Agreement (the “Series D Note Purchase Agreement”) for the private placement of $ 250 million of 4.29 % Senior Guaranteed Notes, Series D, due March 1, 2027 (the “Series D Notes”).

The Series D Notes were issued on March 1, 2017 and pay interest quarterly on the last day of January, April, July and October until their respective maturities.

On May 23, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $ 100 million of 4.24 % Senior Guaranteed Notes, Series E, due May 23, 2029 (the “Series E Notes”).

On May 23, 2017, the Operating Partnership entered into a Note Purchase Agreement (the “Series E Note Purchase Agreement”) for the private placement of $ 100 million of 4.24 % Senior Guaranteed Notes, Series E, due May 23, 2029 (the “Series E Notes”).

The Series E Notes were issued on May 23, 2017 and pay interest semi-annually on the 23rd of May and November until their respective maturities.

On July 19, 2017, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $ 100 million of 3.78 % Senior Guaranteed Notes, Series F, due July 19, 2024 (the “Series F Notes”).

The Series F Notes were issued on July 19, 2017 and pay interest semi-annually on the 31st of January and July until their respective maturities.

On July 18, 2024, we borrowed $ 100 million on our Revolver Loan to repay the entirety of our $ 100 million Series F Notes upon their maturity on July 19, 2024.

On July 30, 2019, the Operating Partnership entered into a Note Purchase Agreement for the private placement of $ 150 million of 3.91 % Senior Guaranteed Notes, Series G, due July 30, 2030 (the “Series G Notes” and collectively with the Series D Notes and Series E Notes are referred to herein as, the “Notes”.) The Series G Notes were issued on July 30, 2019 and pay interest semi-annually on the 30th of July and January until their maturity.

The Operating Partnership may prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 5 % of the aggregate principal amount of any series of the Notes then outstanding in the case of a partial prepayment, at 100 % of the principal amount so prepaid plus a make-whole amount.

The Note Purchase Agreements contain a number of customary financial covenants, including, without limitation, tangible net worth thresholds, secured and unsecured leverage ratios and fixed charge coverage ratios.

Subject to the terms of the Note Purchase Agreement and the Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, Make-Whole Amount or interest under the Notes, and (ii) a default in the payment of certain other indebtedness by us or our subsidiaries, the principal, accrued and unpaid interest, and the make-whole amount on the outstanding Notes will become due and payable at the option of the purchasers.

The Operating Partnership's obligations under the Notes are fully and unconditionally guaranteed by the Operating Partnership and certain of the Operating Partnership's subsidiaries.

Certain loans require the Operating Partnership to comply with various financial covenants, including the maintenance of minimum debt coverage ratios.

As of September 30, 2025, the Operating Partnership was in compliance with all loan covenants.

On July 30, 2019, the Operating Partnership entered into a Note Purchase Agreement (collectively with the Series D Note Purchase Agreement and Series E Note Purchase Agreement, the “Note Purchase Agreements”) for the private placement of $ 150 million of 3.91 % Senior Guaranteed Notes, Series G, due July 30, 2030 (the “Series G Notes” and collectively with the Series D Notes and Series E Notes are referred to herein as, the “Notes”.) The Series G Notes were issued on July 30, 2019 and pay interest semi-annually on the 30th of July and January until their maturity.

American Assets Trust, Inc.

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Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

Third Amended and Restated Credit Facility

March 31, 2026

As of March 31, 2026.the Operating Partnership was in compliance with all covenants under the Note Purchase Agreements.

Subject to the terms of the Note Purchase Agreements and the Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, make-whole amount or interest under the Notes, and (ii) a default in the payment of certain other indebtedness by us or our subsidiaries, the principal, accrued and unpaid interest, and the make-whole amount on the outstanding Notes will become due and payable at the option of the purchasers.

The Operating Partnership's obligations under the Notes are fully and unconditionally guaranteed by the company and certain of the Operating Partnership's subsidiaries.

Credit Facility

On January 5, 2022, the Operating Partnership entered into the third amended and restated credit facility (the “Third Amended and Restated Credit Facility”) , which amended and restated our then-existing credit facility.

The Third Amended and Restated Credit Facility provides for aggregate, unsecured borrowings of up to $ 500 million, consisting of a revolving line of credit of $ 400 million (the “Revolver Loan”) and a term loan of $ 100 million (“Term Loan A”).

The Revolver Loan initially matures on January 5, 2026, subject to two , six-month extension options.

Term Loan A matures on January 5, 2027, with no further extension options.

As of September 30, 2025, the entirety of the principal amount of Term Loan A was outstanding, there were no amounts outstanding under the Revolver Loan, and the Operating Partnership had incurred approximately $ 0.2 million of net debt issuance costs which are recorded in other assets, net on the consolidated balance sheet.

For the nine months ended September 30, 2025, the weighted average interest rate on the Revolver Loan was 5.53 %.

As of March 31, 2026, the entirety of the principal amount of Term Loan A was outstanding, there were no amounts outstanding under the Revolver Loan, and the Operating Partnership had incurred approximately $ 0.13 million of net debt issuance costs which are recorded in other assets, net on the consolidated balance sheet.

For the three months ended March 31, 2026, the weighted average interest rate on the Revolver Loan was 4.89 %.

Borrowings under the Third Amended and Restated Credit Agreement bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) the applicable SOFR, plus the applicable SOFR Adjustment and a spread which ranges from (a) 1.05 % to 1.50 % (with respect to the Revolver Loan) and (b) 1.20 % to 1.70 % (with respect to Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps, (c) the Term SOFR Screen Rate with a term of one month plus 100 bps and (d) 1.00 %, plus a spread which ranges from (i) 0.10 % to 0.50 % (with respect to the Revolver Loan) and (ii) 0.20 % to 0.70 % (with respect to Term Loan A), in each case based on our consolidated leverage ratio.

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If certain events of default exist or would result from a distribution, we may be precluded from making distributions other than those necessary to qualify and maintain our status as a REIT.

As of September 30, 2025, the Operating Partnership was in compliance with all then in-place Third Amended and Restated Credit Facility covenants.

Amended and Restated Term Loan Agreement

On January 5, 2023, we entered into the amended and restated term loan agreement (the “Amended and Restated Term Loan Agreement”), which amended and restated our then-existing term loan agreement.

The Amended and Restated Term Loan Agreement provides to the Operating Partnership a term loan of $ 150 million (“Term Loan B”) and a term loan of $ 75 million (“Term Loan C”), each maturing on January 5, 2025, with one , twelve-month extension option, subject to certain conditions.

On January 2, 2025, we repaid the entirety of Term Loan B and Term Loan C.

American Assets Trust, Inc.

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Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

As of March 31, 2026, the Operating Partnership was in compliance with all then in-place Third Amended and Restated Credit Facility covenants.

On April 1, 2026, we entered into the Fourth Amended and Restated Credit Facility, which provides for aggregate, unsecured borrowings of up to $ 600 million, consisting of a revolving line of credit of $ 500 million (the “2026 Revolver Loan”) and a term loan of $ 100 million (the “2026 Term Loan A”).

The 2026 Revolver Loan initially matures on April 1, 2030, subject to two , six-month extension options.

The 2026 Term Loan A initially matures on April 1, 2030, subject to one , twelve-month extension option.

Borrowings under the Fourth Amended and Restated Credit Agreement bear interest at floating rates equal to, at the Operating Partnership’s option, either (1) the applicable SOFR, plus a spread which ranges from (a) 1.05 % to 1.50 % (with respect to the 2026 Revolver Loan) and (b) 1.20 % to 1.70 % (with respect to the 2026 Term Loan A), in each case based on our consolidated leverage ratio, or (2) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 bps, (c) the Term SOFR Screen Rate with a term of one month plus 100 bps and (d) 1.00 %, plus a spread which ranges from (i) 0.05 % to 0.50 % (with respect to the 2026 Revolver Loan) and (ii) 0.20 % to 0.70 % (with respect to the 2026 Term Loan A), in each case based on our consolidated leverage ratio.

PARTNERS' CAPITAL OF AMERICAN ASSETS TRUST, L.P.

Noncontrolling interests in our Operating Partnership are interests in the Operating Partnership that are not owned by us.

Noncontrolling interests consisted of 16,181,537 common units (the “noncontrolling common units”), and represented approximately 21.1 % of the ownership interests in our Operating Partnership at September 30, 2025.

Noncontrolling interests consisted of 16,181,537 common units (the “noncontrolling common units”), and represented approximately 21.05 % of the ownership interests in our Operating Partnership at March 31, 2026.

Common units and shares of our common stock have essentially the same economic characteristics in that common units and shares of our common stock share equally in the total net income or loss distributions of our Operating Partnership.

Investors who own common units have the right to cause our Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of our common stock, or, at our election, shares of our common stock on a one -for-one basis.

During the nine months ended September 30, 2025, no common units were converted into shares of our common stock.

During the three months ended March 31, 2026, no common units were converted into shares of our common stock.

Earnings Per Unit of the Operating Partnership

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The impact of unvested Operating Partnership unit awards on EPU has been calculated using the two-class method whereby earnings are allocated to the unvested Operating Partnership unit awards based on distributions and the unvested Operating Partnership units’ participation rights in undistributed earnings.

The calculation of diluted EPU for the three months ended September 30, 2025 and 2024 does not include the weighted average of 606,062 and 581,314 unvested outstanding Operating Partnership units, respectively, and for the nine months ended September 30, 2025 and 2024 does not include the weighted average of 602,093 and 583,247 unvested outstanding Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive to income from continuing operations and net income attributable to the unitholders.

The calculation of diluted EPU for the three months ended March 31, 2026 and 2025 does not include the weighted average of 693,257 and 599,868 unvested outstanding Operating Partnership units, respectively, as these equity securities are either considered contingently issuable or the effect of including these equity securities was anti-dilutive to income from continuing operations and net income attributable to the unitholders.

EQUITY OF AMERICAN ASSETS TRUST, INC.

Stockholders' Equity

On December 3, 2021, we entered into an at-the-market (“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.

On December 3, 2021, we entered into an at-the-market (“ATM”) equity program with five sales agents pursuant to 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.

For the nine months ended September 30, 2025, no shares of common stock were sold through the ATM equity program.

We intend to use the net proceeds from the ATM equity program to fund our 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.

As of September 30, 2025, we had the capacity to issue up to $ 250 million in shares of our common stock under our current ATM equity program.

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.

As of September 30, 2025, we have no obligation to sell the remaining shares available for sale under the ATM equity program.

For the three months ended March 31, 2026, no shares of common stock were sold through the ATM equity program.

American Assets Trust, Inc.

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Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the nine months ended September 30, 2025:

March 31, 2026

As of March 31, 2026, we had the capacity to issue up to $ 250 million in shares of our common stock under our current ATM equity program.

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.

As of March 31, 2026, we have no obligation to sell the remaining shares available for sale under the ATM equity program.

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the three months ended March 31, 2026:

Period Amount per

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First Quarter 2026 $ 0.340 January 1, 2026 to March 31, 2026 March 19, 2026

Second Quarter 2025 $ 0.340 April 1, 2025 to June 30, 2025 June 18, 2025

Third Quarter 2025 $ 0.340 July 1, 2025 to September 30, 2025 September 18, 2025

Taxability of Dividends

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The guidance also defines a fair value-based method of accounting for an employee stock award or similar equity instrument.

The following table summarizes the activity of restricted stock awards during the nine months ended September 30, 2025:

The following table summarizes the activity of restricted stock awards during the three months ended March 31, 2026:

Units Weighted Average Grant Date Fair Value

Nonvested at January 1, 2026 693,257 $ 16.58

Granted 17,812 20.21

Vested ( 9,180 ) 21.79

Forfeited — —

Nonvested at September 30, 2025

Nonvested at March 31, 2026

693,257 $ 16.58

We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $ 1.8 million and $ 2.0 million for the three months ended September 30, 2025 and 2024, respectively, and $ 5.2 million and $ 5.3 million for the nine months ended September 30, 2025 and 2024, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income.

Unrecognized compensation expense was $ 5.4 million at September 30, 2025.

We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $ 1.7 million and $ 1.7 million for the three months ended March 31, 2026 and 2025, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income.

Unrecognized compensation expense was $ 7.8 million at March 31, 2026.

Earnings Per Share

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The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings.

The weighted average unvested shares outstanding, which are considered participating securities, were 606,062 and 581,314 for the three months ended September 30, 2025 and 2024, respectively, and 602,093 and 583,247 for the nine months ended September 30, 2025 and 2024, respectively.

The weighted average unvested shares outstanding, which are considered participating securities, were 693,257 and 599,868 for the three months ended March 31, 2026 and 2025, respectively.

Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights.

Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method.

For the three and nine months ended September 30, 2025 and 2024, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable.

For the three months ended March 31, 2026 and 2025, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable.

Additionally, the unvested restricted stock awards subject to time vesting are anti-dilutive for all periods presented, and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.

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Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Net income $ 6,739 $ 54,107

8 unchanged sentences

Income from operations attributable to unitholders in the Operating Partnership

1,205 4,467 14,033 12,829

Net income attributable to common stockholders—diluted

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Additionally, we classify certain state taxes as income taxes for financial reporting purposes in accordance with ASC Topic 740, Income Taxes .

A deferred tax asset is included in our consolidated balance sheets of $ 1.0 million and $ 1.0 million, and a deferred tax liability is included in our consolidated balance sheets of $ 0.8 million and $ 0.8 million as of September 30, 2025 and December 31, 2024, respectively, in relation to real estate asset basis differences and prepaid expenses for our TRS.

A deferred tax asset is included in our consolidated balance sheets of $ 1.0 million and $ 1.0 million, and a deferred tax liability is included in our consolidated balance sheets of $ 0.6 million and $ 0.6 million as of March 31, 2026 and December 31, 2025, respectively, in relation to real estate asset basis differences and prepaid expenses for our TRS.

Income tax expense is recorded in other income, net on our consolidated statements of comprehensive income.

For the three and nine months ended September 30, 2025, we recorded income tax expense of $ 0.2 million and $ 0.7 million, respectively.

For the three and nine months ended September 30, 2024, we recorded income tax expense of $ 0.2 million and $ 0.7 million, respectively.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

For the three months ended March 31, 2026, we recorded income tax expense of $ 0.1 million.

For the three months ended March 31, 2025, we recorded income tax expense of $ 0.4 million.

COMMITMENTS AND CONTINGENCIES

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Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

We are currently a party to various legal proceedings.

21 unchanged sentences

In addition, we must pay to Embassy Suites Franchise LLC a monthly franchise royalty fee equal to 5.0 % of the hotel's gross room revenue, as well as a monthly program fee equal to 4.0 % of the hotel's gross room revenue.

If the franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we may be liable to the franchisor for a termination payment, which could be as high as $ 8.0 million based on operating performance through September 30, 2025.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

If the franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we may be liable to the franchisor for a termination payment, which could be as high as $ 7.8 million based on operating performance through March 31, 2026.

Concentrations of Credit Risk

2 unchanged sentences

Sixteen of our consolidated properties are located in Southern California, which exposes us to greater economic risks than if we owned a more geographically diverse portfolio.

Tenants in the office industry accounted for 47.2 % of total revenues for the nine months ended September 30, 2025.

Tenants in the office industry accounted for 47.3 % of total revenues for the three months ended March 31, 2026.

This makes us susceptible to demand for office rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the office industry.

Furthermore, tenants in the retail industry accounted for 21.7 % of total revenues for the nine months ended September 30, 2025.

Furthermore, tenants in the retail industry accounted for 21.1 % of total revenues for the three months ended March 31, 2026.

This makes us susceptible to demand for retail rental space and subject to the risks associated with an investment in real estate with a concentration of tenants in the retail industry.

For the nine months ended September 30, 2025 and 2024, no tenant accounted for more than 10% of our total rental revenue.

For the three months ended March 31, 2026 and 2025, no tenant accounted for more than 10% of our total rental revenue.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

Lessor Operating Leases

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However, the residual value of a real estate property is still subject to various market-specific, asset-specific, and tenant-specific risks and characteristics.

As of September 30, 2025, minimum future rentals from noncancelable operating leases, before any reserve for uncollectible amounts and assuming no early lease terminations, at our office and retail properties and the retail portion of our mixed-use property are as follows for the years ended December 31 (in thousands):

2025 (three months ending December 31, 2025) $ 57,799

As of March 31, 2026, minimum future rentals from noncancelable operating leases, before any reserve for uncollectible amounts and assuming no early lease terminations, at our office and retail properties and the retail portion of our mixed-use property are as follows for the years ended December 31 (in thousands):

2026 (nine months ending December 31, 2026) $ 191,727

Thereafter 229,509

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The above future minimum rentals exclude residential leases, which typically range from seven months to fifteen months , and exclude the hotel, as rooms are rented on a nightly basis.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

Lessee Operating Leases

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At The Landmark at One Market, we lease, as lessee, a building adjacent to The Landmark at One Market under an operating lease effective through June 30, 2031 (the “Annex Lease”).

We exercised the final extension option which was effective as of July 1, 2025.

The lease payments under the Annex Lease are equal to the fair rental value at the time the extension option is exercised.

In June 2025, we exercised the final five-year extension option to extend the Annex Lease through June 30, 2031, which was memorialized in a lease amendment executed in August 2025.

Our lease agreements do not contain any residual value guarantees or material restrictive covenants.

As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments.

As of September 30, 2025, current annual payments under the operating leases are as follows for the years ended December 31 (in thousands):

2025 (three months ending December 31, 2025) $ 896

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

As of March 31, 2026, current annual payments under the operating leases are as follows for the years ended December 31 (in thousands):

2026 (nine months ending December 31, 2026) $ 2,688

Thereafter 2,017

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Lease costs under the operating leases are as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Operating lease cost $ 938 $ 910

Sublease income ( 1,042 ) ( 860 )

Total lease cost (income) $ 105 $ 90 $ 206 $ 198

Total lease (income) cost $ ( 104 ) $ 50

Weighted-average remaining lease term - operating leases (in years) 5.3

Weighted-average discount rate - operating leases 3.19 %

Supplemental cash flow information and non-cash activity related to our operating leases are as follow (in thousands):

Nine Months Ended September 30,

Supplemental cash flow information related to our operating leases are as follow (in thousands):

Three Months Ended March 31,

Operating cash flow information:

Cash paid for amounts included in the measurement of lease liabilities $ 896 $ 870

At The Landmark at One Market, we (as sublandlord) sublease the Annex Lease building under operating leases effective through December 31, 2029.

At The Landmark at One Market, we (as sublandlord) sublease the Annex Lease building under operating leases effective through June 30, 2031.

The subleases contain extension options, subject to our ability to extend the Annex Lease, that can extend the subleases through December 31, 2039 at the fair rental value at the time the extension option is exercised.

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Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

COMPONENTS OF RENTAL INCOME AND EXPENSE

The principal components of rental income are as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Lease rental income

7 unchanged sentences

Total rental income $ 104,422 $ 102,951

Minimum rents include $ 0.9 million and $ 0.4 million for the three months ended September 30, 2025 and 2024, respectively, and $ 1.5 million and $ 3.0 million for the nine months ended September 30, 2025 and 2024, respectively, to recognize lease rental income on a straight-line basis.

In addition, net amortization of above and below market leases included in lease rental income was $ 0.5 million and $ 0.6 million for the three months ended September 30, 2025 and 2024, respectively, and $ 1.7 million and $ 2.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Minimum rents include $ 0.2 million and $ 0.4 million for the three months ended March 31, 2026 and 2025, respectively, to recognize lease rental income on a straight-line basis.

In addition, net amortization of above and below market leases included in lease rental income was $ 0.4 million and $ 0.6 million for the three months ended March 31, 2026 and 2025, respectively.

The principal components of rental expenses are as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Rental operating $ 14,895 $ 14,617

2 unchanged sentences

Marketing 601 573

Rent 954 925 2,525 2,619

Hawaii excise tax 1,027 1,005

2 unchanged sentences

The principal components of other income, net are as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Interest and investment income $ 715 $ 1,332

Income tax expense ( 101 ) ( 417 )

Other non-operating income — 2 — 10,002

Total other income $ 614 $ 915

For the nine months ended September 30, 2024, other non-operating income includes the net settlement payment of approximately $ 10.0 million received on January 2, 2024 related to building specifications for one of the existing buildings at our office project in University Town Center (San Diego).

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

March 31, 2026

RELATED PARTY TRANSACTIONS

During the third quarter of 2020, the company entered into a lease with American Assets, Inc.

At Torrey Point, the company leases space to American Assets, Inc.

(“AAI”), an entity owned and controlled by Mr.

Rady, our Executive Chairman, for office space at Torrey Point to replace a previously existing lease with AAI at Torrey Reserve Campus.

Rents commenced on March 1, 2021 for an initial lease term of ten years at an average annual rental rate of $ 0.2 million.

Rental revenue recognized on the AAI lease of $ 0.2 million and $ 0.2 million for the nine months ended September 30, 2025 and 2024, respectively, is included in rental income on the statements of comprehensive income.

On occasion, the company utilizes aircraft services provided by AAI Aviation, Inc.

("AAIA"), an entity owned and controlled by Mr.

For the nine months ended September 30, 2025 and 2024, we incurred approximately $ 0.1 million and $ 0.1 million of expenses, respectively, related to aircraft services of AAIA or reimbursement to Mr.

Rady (or his trust) for use of the aircraft owned by AAIA.

These expenses are recorded as general and administrative expenses in our consolidated statements of comprehensive income.

Rady, with an initial lease term of ten years at an average annual rental rate of $ 0.2 million.

Rental revenue recognized on the lease of $ 0.1 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively, is included in rental income on the consolidated statements of comprehensive income.

The Waikiki Beach Walk entities have a 47.7 % investment in WBW CHP LLC, an entity that was formed to, among other things, construct a chilled water plant to provide air conditioning to the property and other adjacent facilities.

The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $ 0.9 million and $ 0.8 million for the nine months ended September 30, 2025 and 2024, respectively, are included in rental expenses on the consolidated statements of comprehensive income.

The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $ 0.3 million and $ 0.3 million for the three months ended March 31, 2026 and 2025, respectively, are included in rental expenses on the consolidated statements of comprehensive income.

SEGMENT REPORTING

For the three and nine months ended September 30, 2025, the CODM for the company was comprised of our President and Chief Executive Officer and our Chief Financial Officer.

For the three months ended March 31, 2026, the chief operating decision maker (“CODM”) for the company was comprised of our President and Chief Executive Officer and our Chief Financial Officer.

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes.

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General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

A significant segment expense is a category of expenses and amounts regularly provided to the CODM that is included in the calculation of each reported measure of segment profit or loss.

2 unchanged sentences

Rental expenses includes facilities service expense, utilities expense, repairs and maintenance expense, insurance expense and other costs.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

The following table represents the significant segment expenses and operating activity within our reportable segments (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Property revenue $ 52,357 $ 50,881

21 unchanged sentences

Total segments’ profit $ 66,926 $ 67,302

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

September 30, 2025

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Total segments’ profit $ 66,926 $ 67,302

9 unchanged sentences

stockholders $ 5,134 $ 42,535

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

The following table shows net real estate and secured note payable balances for each of the reportable segments (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Net Real Estate

7 unchanged sentences

$ 75,000 $ 75,000

(1) Excludes unamortized debt issuance costs of $ 0.2 million and $ 0.2 million for each of the periods ended September 30, 2025 and December 31, 2024, respectively.

Capital expenditures for each segment for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(1) Excludes unamortized debt issuance costs of $ 0.1 million and $ 0.2 million for each of the periods ended March 31, 2026 and December 31, 2025, respectively.

Capital expenditures for each segment for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

Three Months Ended March 31,

Capital Expenditures (1)

5 unchanged sentences

(1) Capital expenditures represent cash paid for capital expenditures during the period and include leasing commissions paid.

SUBSEQUENT EVENT

On April 1, 2026, we entered into the Fourth Amended and Restated Credit Facility, which provides for aggregate, unsecured borrowings of up to $ 600 million, consisting of a revolving line of credit of $ 500 million (the 2026 Revolver Loan), and a term loan of $ 100 million (the 2026 Term Loan A).

The 2026 Revolver Loan initially matures on April 1, 2030, subject to two , six-month extension options.

The 2026 Term Loan A initially matures on April 1, 2030, with one twelve-month extension option.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements