What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-10-31 · 114 added, 270 removed, 317 unchanged (55% of the section changed)

35 unchanged sentences

• limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc.

to continue to qualify as a REIT for U.S.

to continue to qualify as a real estate investment trust, or REIT, for U.S.

federal income tax purposes;

6 unchanged sentences

We are a full service, vertically integrated and self-administered REIT that owns, operates, acquires and develops high quality retail, office, multifamily and mixed-use properties in attractive, high-barrier-to-entry markets in Southern California, Northern California, Washington, Oregon, Texas and Hawaii.

As of September 30, 2025, our portfolio was comprised of twelve office properties;

eleven retail shopping centers a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center;

As of March 31, 2026, our portfolio was comprised of twelve office properties;

eleven retail shopping centers;

a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center;

and seven multifamily properties.

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

La Jolla Commons - Land, related to the build-out of La Jolla Commons III, was previously classified as held for development.

The build out of La Jolla Commons III is now complete and the building, inclusive of the land, was placed in operations as of April 1, 2025.

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

Our core markets include San Diego, California;

4 unchanged sentences

Rady or his affiliates, including the Ernest Rady Trust U/D/T March 13, 1983, or the Rady Trust, and did not have any operating activity until the consummation of our initial public offering on January 19, 2011.

Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.9% of our Operating Partnership as of September 30, 2025.

Our Company, as the sole general partner of our Operating Partnership, has control of our Operating Partnership and owned 78.95% of our Operating Partnership as of March 31, 2026.

Accordingly, we consolidate the assets, liabilities and results of operations of our Operating Partnership.

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 and prorations.

We acquired the property with cash on hand, primarily from the proceeds received from the sale of Del Monte Center .

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

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

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

Critical Accounting Policies

8 unchanged sentences

Properties are deemed stabilized typically at the earlier of (i) reaching 90% occupancy or (ii) four quarters following a property's inclusion in operating real estate.

We typically remove properties from same-store properties when the development, redevelopment or expansion has or is expected to have a significant impact on the property's annualized base rent, occupancy and property operating income within the calendar year.

Our evaluation of significant impact related to development, redevelopment or expansion activity is based on quantitative and qualitative measures including, but not limited to, the following:

the total budgeted cost of planned construction activity compared to the property’s annualized base rent, occupancy and property operating income within the calendar year;

the total budgeted cost of planned construction activity compared to the property’s annualized base rent, occupancy and operating income within the calendar year;

percentage of development, redevelopment or expansion square footage to total property square footage;

2 unchanged sentences

Acquired properties are classified into same-store properties once we have owned such properties for the entirety of comparable period(s) and the properties are not under significant development or expansion.

Below is a summary of our same-store and redevelopment same-store composition for the three and nine months ended September 30, 2025 and 2024.

One Beach Street continues to be identified as a same-store redevelopment property due to significant redevelopment activity.

Additionally, this property was placed into operations on August 1, 2024, approximately one year after completing renovations.

Del Monte Center was removed as a same-store and redevelopment same-store property when compared to the designations for the three and nine months ended September 30, 2024, as it was sold on February 25, 2025.

Below is a summary of our same-store and redevelopment same-store composition for the three months ended March 31, 2026 and 2025.

One Beach Street is classified as a same-store property when compared to the designation for the three months ended March 31, 2025, as this property was placed into service on August 1, 2024.

Genesee Park is classified as a non-same-store property because it was acquired on February 28, 2025, and thus has not been owned for the comparable period.

La Jolla Commons III is classified as non-same store when compared to the designations for the three and nine months ended September 30, 2024, as it was placed in operations on April 1, 2025.

La Jolla Commons III is classified as a non-same store property when compared to the designations for the three months ended March 31, 2025, as it was placed into service on April 1, 2025.

La Jolla Commons III is a part of the La Jolla Commons office project, and not a stand-alone property.

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

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

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

2025 2024 2025 2024

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

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

Three Months Ended March 31,

Same-Store 30 29

1 unchanged sentence

Total Properties 31 31

Redevelopment Same-Store 30 31 30 31

Total Development Properties 2 3

15 unchanged sentences

Furthermore, we believe the locations of our properties and diversified portfolio will mitigate some of the potentially negative impact of the current economic environment.

During the three months ended September 30, 2025, we signed 20 office leases for a total of 181,455 square feet of office space including 121,810 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 9.3% and 18.6%, respectively.

During the three months ended March 31, 2026, we signed 29 office leases for a total of 236,670 square feet of office space including 108,456 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 4.8% and 10.6%, respectively.

New office leases for comparable spaces were signed for 28,875 square feet at an average rental rate increase on a cash and GAAP basis of 3.7% and 8.9%, respectively.

Renewals for comparable office spaces were signed for 79,581 square feet at an average rental rate increase on a cash and GAAP basis of 5.1% and 11.2%, respectively.

Tenant improvements and incentives were $14.49 per square foot of office space for comparable new leases for the three months ended September 30, 2025, mainly due to new tenants at City Center Bellevue.

During the three months ended September 30, 2025, we signed 29 retail leases for a total of 125,022 square feet of retail space including 111,903 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate increase on a cash and GAAP basis of 4.4% and 21.0%, respectively.

New retail leases for comparable spaces were signed for 2,000 square feet at an average rental rate decrease on a cash basis of 7.0%.

Tenant improvements and incentives were $24.68 per square foot of office space for comparable new leases for the three months ended March 31, 2026, mainly due to new tenants at Timber Ridge and Coastal Collection at Torrey Reserve.

During the three months ended March 31, 2026, we signed 14 retail leases for a total of 38,581 square feet of retail space including 37,593 square feet of comparable space leases (leases for which there was a prior tenant), at an average rental rate decrease on a cash basis of 2.0% and increase on a GAAP basis of 1.3%, respectively.

New retail leases for comparable spaces were signed for 10,000 square feet at an average rental rate decrease on a cash and GAAP basis of 17.8% and 22.0%, respectively.

Renewals for comparable retail spaces were signed for 27,593 square feet at an average rental rate increase on a cash and GAAP basis of 3.8% and 13.0%, respectively.

Tenant improvements and incentives were $117.50 per square foot of retail space for comparable new leases for the three months ended September 30, 2025, mainly due to a new tenant at Lomas Santa Fe Plaza.

Tenant improvements and incentives were $22.50 per square foot of retail space for comparable new leases for the three months ended March 31, 2026, mainly due to a new tenant at Solana Beach Towne Center.

The rental increases associated with comparable spaces generally include all leases signed in arms-length transactions reflecting market leverage between landlords and tenants during the period.

13 unchanged sentences

We cease capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with any remaining portion under construction.

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

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

Interest costs on developments and major redevelopments are capitalized as part of developments and redevelopments not yet placed in service.

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

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

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.

1 unchanged sentence

If the time period for capitalizing interest is extended, however, more interest is capitalized, thereby decreasing interest expense and increasing net income during that period.

Since the build out of La Jolla Commons III is now complete and the building, inclusive of the land, was placed in operations as of April 1, 2025, there were no capitalized interest costs related to development activities for the three months ended September 30, 2025.

We capitalized interest costs related to development activities of $1.7 million for the three months ended September 30, 2024 and $1.4 million and $5.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Because the development of La Jolla Commons III is now complete and the building, inclusive of the land, was placed into service as of April 1, 2025, there were no capitalized interest costs related to development activities after the three months ended March 31, 2025.

We capitalized interest costs related to development activities of $1.4 million for the three months ended March 31, 2025.

Results of Operations

For our discussion of results of operations, we have provided information on a total portfolio and same-store basis.

Comparison of the three months ended September 30, 2025 to the three months ended September 30, 2024

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

As of September 30, 2025, our operating portfolio was comprised of 31 retail, office, multifamily and mixed-use properties with an aggregate of approximately 6.8 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel.

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

As of September 30, 2024, our operating portfolio was comprised of 31 retail, office, multifamily and mixed-use properties with an aggregate of

approximately 7.2 million rentable square feet of retail and office space, including the retail portion of our mixed-use property, 2,110 residential units (including 120 RV spaces) and a 369-room hotel.

Additionally, as of September 30, 2024, we owned land at three of our properties that we classified as held for development and/or construction in progress.

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

Three Months Ended September 30, Change %

Comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025

The following summarizes our consolidated results of operations for the three months ended March 31, 2026 compared to our consolidated results of operations for the three months ended March 31, 2025.

As of March 31, 2026, our operating portfolio was comprised of 31 office, retail, multifamily and mixed-use properties with an aggregate of approximately 6.8 million rentable square feet of office and retail space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel.

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

As of March 31, 2025, our operating portfolio was comprised of 31 office, retail, multifamily and mixed-use properties with an aggregate of approximately 6.6 million rentable square feet of office and retail space, including the retail portion of our mixed-use property, 2,302 residential units (including 120 RV spaces) and a 369-room hotel.

Additionally, as of March 31, 2025, we owned land at three of our properties that we classified as held for development and/or construction in progress.

The following table sets forth selected data from our unaudited consolidated statements of comprehensive income for the three months ended March 31, 2026 and 2025 (dollars in thousands):

Three Months Ended March 31, Change %

Rental income $ 104,422 $ 102,951 $ 1,471 1 %

8 unchanged sentences

Interest expense, net (19,707) (18,780) (927) 5

Gain on sale of real estate — 44,476 (44,476) 100

Other income, net 614 915 (301) (33)

7 unchanged sentences

Total property revenue consists of rental revenue and other property income.

Total property revenue decreased $13.2 million to $109.6 million for the three months ended September 30, 2025 compared to $122.8 million for the three months ended September 30, 2024.

The percentage leased was as follows for each segment as of September 30, 2025 and 2024:

Total property revenue increased $2.0 million to $110.6 million for the three months ended March 31, 2026 compared to $108.6 million for the three months ended March 31, 2025.

The percentage leased was as follows for each segment as of March 31, 2026 and 2025:

Percentage Leased (1)

September 30,

Office 84.5 % 85.5 %

3 unchanged sentences

96.2 % 89.3 %

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

Percentage leased for our multifamily properties includes total units rented and occupied as of September 30, 2025 or 2024, as applicable.

(1) The percentage leased includes the square footage under lease, including leases which may not have commenced as of March 31, 2026 or 2025, as applicable.

Leased units for our multifamily properties include total units leased and occupied as of the applicable date.

(2) Includes the retail portion of the mixed-use property only.

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

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

Rental revenues .

Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents.

Rental revenue decreased $3.3 million, or 3%, to $102.2 million for the three months ended September 30, 2025 compared to $105.5 million for the three months ended September 30, 2024.

Rental revenue increased $1.5 million, or 1%, to $104.4 million for the three months ended March 31, 2026 compared to $103.0 million for the three months ended March 31, 2025.

Rental revenue by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio (1)

Three Months Ended September 30, Change % Three Months Ended September 30, Change %

Three Months Ended March 31, Change % Three Months Ended March 31, Change %

2026 2025 2026 2025

5 unchanged sentences

(1) For this table and tables following, the same-store portfolio excludes:

(i) One Beach Street (office) due to significant redevelopment;

(ii) Del Monte Center (retail), which was sold on February 25, 2025;

(iii) Genesee Park (multifamily), which was acquired on February 28, 2025, (iv) La Jolla Commons III (office), which was placed into operations on April 1, 2025 and (v) land held for development (office).

Same-store office rental revenue increased $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase in cost recoveries due to changes in tenant base years and tax refunds received in 2024 that were passed back to tenants.

This increase was offset by lower occupancy at Torrey Reserve Campus and First & Main.

Retail rental revenue decreased $3.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the sale of Del Monte Center on February 25, 2025.

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

Same-store average monthly base rent and occupancy was $2,746 and 89.3%, for the three months ended September 30, 2025, respectively, compared to $2,733 and 90.1%, for the three months ended September 30, 2024, respectively.

Total mixed-use rental revenue decreased $1.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 78.3% and $298 for the three months ended September 30, 2025, respectively, compared to 83.8% and $337 for the three months ended September 30, 2024, respectively.

This decrease was partially offset by an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents and an increase in cost recoveries.

(i) Del Monte Center (retail), which was sold on February 25, 2025;

(ii) Genesee Park (multifamily), which was acquired on February 28, 2025, (iii) La Jolla Commons III (office), which was placed into service on April 1, 2025 and (iv) land held for development (office).

Office rental revenue increased $1.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to new tenant leases at La Jolla Commons III.

Same-store office rental revenue increased $0.7 million primarily due to an increase in occupancy and base rent at City Center Bellevue, Timber Ridge and Lloyd Portfolio.

These increases were offset by lower occupancy at First & Main.

Retail rental revenue decreased $1.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the sale of Del Monte Center on February 25, 2025.

Same-store retail revenue increased $0.3 million primarily due to new tenant leases and scheduled rent increases at Alamo Quarry Market.

Multifamily rental revenue increased $1.1 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park.

Same-store multifamily rental revenue increased $0.2 million primarily due to an overall increase in average monthly base rent and overall occupancy.

Same-store average monthly base rent and occupancy was $2,820 and 91.2%, for the three months ended March 31, 2026, respectively, compared to $2,777 and 90.5%, for the three months ended March 31, 2025, respectively.

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

Other property income .

Other property income decreased $9.9 million, or 57%, to $7.4 million for the three months ended September 30, 2025 compared to $17.3 million for the three months ended September 30, 2024.

Other property income increased $0.5 million, or 9%, to $6.2 million for the three months ended March 31, 2026 compared to $5.7 million for the three months ended March 31, 2025.

Other property income by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Three Months Ended September 30, Change % Three Months Ended September 30, Change %

Three Months Ended March 31, Change % Three Months Ended March 31, Change %

2026 2025 2026 2025

4 unchanged sentences

$ 6,170 $ 5,656 $ 514 9 % $ 6,106 $ 5,642 $ 464 8 %

Office other property income decreased $9.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to $11.0 million in lease termination fees received at Torrey Reserve in 2024.

This decrease was partially offset by $1.1 million in lease termination fees received at 14Acres in 2025 and an increase in parking garage income of $0.3 million at City Center Bellevue, First & Main and La Jolla Commons.

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

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

Multifamily other property income increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in parking income and other operating income at Hassalo on Eighth - Multifamily.

Mixed-use other property income increased $0.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in resort fee income driven by higher occupancy at the hotel portion of our mixed-use property and parking income at the retail portion of our mixed-use property.

Property Expenses

1 unchanged sentence

Total property expenses consist of rental expenses and real estate taxes.

Total property expenses increased $0.9 million, or 2%, to $43.3 million for the three months ended September 30, 2025 compared to $42.4 million for the three months ended September 30, 2024.

Total property expenses increased $2.4 million, or 6%, to $43.7 million for the three months ended March 31, 2026 compared to $41.3 million for the three months ended March 31, 2025.

Rental Expenses.

Rental expenses increased $0.4 million, or 1%, to $31.8 million for the three months ended September 30, 2025 compared to $31.4 million for the three months ended September 30, 2024.

Rental expenses increased $1.4 million, or 5%, to $31.7 million for the three months ended March 31, 2026 compared to $30.3 million for the three months ended March 31, 2025.

Rental expense by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Three Months Ended September 30, Change % Three Months Ended September 30, Change %

Three Months Ended March 31, Change % Three Months Ended March 31, Change %

2026 2025 2026 2025

4 unchanged sentences

$ 31,720 $ 30,300 $ 1,420 5 % $ 30,540 $ 28,870 $ 1,670 6 %

Office rental expense increased $0.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities.

Office rental expense increased $0.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities.

Same-store office rental expense increased $0.7 million due to an increase in facilities services expense, utilities expense and repairs and maintenance expense.

Retail rental expense decreased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the sale of Del Monte Center in the first quarter of 2025.

Same-store retail rental expense increased $0.2 million due to an increase in repairs and maintenance expense, marketing expense and facilities services expense.

Multifamily rental expense increased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the acquisition of Genesee Park.

Same-store multifamily rental expense increased $0.3 million due to an overall increase in facilities services expense and repairs and maintenance expense across most of our other multifamily properties.

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

Real Estate Taxes.

Real estate taxes increased $0.5 million, or 4%, to $11.5 million for the three months ended September 30, 2025 compared to $11.0 million for the three months ended September 30, 2024.

Real estate tax expense by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Three Months Ended September 30, Change % Three Months Ended September 30, Change %

2025 2024 2025 2024

Office $ 5,380 $ 4,500 $ 880 20 $ 4,737 $ 4,363 $ 374 9

Retail 3,102 3,613 (511) (14) 3,102 3,287 (185) (6)

Multifamily 1,981 1,889 92 5 1,896 1,889 7 —

Mixed-Use 1,066 1,042 24 2 1,066 1,042 24 2

$ 11,529 $ 11,044 $ 485 4 % $ 10,801 $ 10,581 $ 220 2 %

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

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

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

Property Operating Income

Property operating income decreased $14.1 million, or 18%, to $66.3 million for the three months ended September 30, 2025, compared to $80.4 million for the three months ended September 30, 2024.

Property operating income by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Three Months Ended September 30, Change % Three Months Ended September 30, Change %

2025 2024 2025 2024

Office $ 35,100 $ 45,544 $ (10,444) (23) $ 36,223 $ 46,140 $ (9,917) (21)

Retail 16,607 19,807 (3,200) (16) 16,607 17,197 (590) (3)

Multifamily 8,933 8,807 126 1 8,326 8,807 (481) (5)

Mixed-Use 5,641 6,247 (606) (10) 5,641 6,247 (606) (10)

$ 66,281 $ 80,405 $ (14,124) (18) % $ 66,797 $ 78,391 $ (11,594) (15) %

Same-store office operating income decreased $9.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to $11.0 million in lease termination fees received at Torrey Reserve in 2024 and an increase in rental expenses related to facilities services expense, utilities expense and repairs and maintenance expense.

This decrease was partially offset by $1.1 million in lease termination fees received at 14Acres in 2025, an increase in parking garage income and an increase in cost recoveries.

Same-store retail operating income decreased $0.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to lease termination fees received at Alamo Quarry Market and Solana Beach Towne Center in 2024 and an increase in rental expenses related to repairs and maintenance expense, marketing expense and facilities services expense.

Same-store multifamily operating income decreased $0.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in occupancy and average monthly base rent.

Same-store average monthly base rent and occupancy was $2,746 and 89.3%, respectively, for the three months ended September 30, 2025, compared to $2,733 and 90.1%, respectively, for the three months ended September 30, 2024.

Additionally, there was an increase in facilities services expense and repairs and maintenance expense across most of our other multifamily properties.

Total mixed-use operating income decreased $0.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 78.3% and $298, respectively, for the three months ended September 30, 2025, compared to 83.8% and $337, respectively, for the three months ended September 30, 2024.

This decrease was partially offset by lower room related expenses at the hotel portion of our mixed-use property, an increase in lease settlement fees and an increase in rental revenue at the retail portion of our mixed-use property, primarily due to new tenant leases commencing at higher base rents.

General and Administrative.

General and administrative expenses increased $0.4 million, or 5%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

This increase was primarily due to higher corporate legal expenses, consulting fees and employee-related costs, including, without limitation, with respect to base pay and benefits for certain salaried and hourly workers.

Depreciation and Amortization.

Depreciation and amortization expense decreased $1.5 million, or (5)%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

This decrease was primarily due to lower depreciation expense at Torrey Reserve Campus due to asset acceleration for a tenant vacating their space early in 2024 and Del Monte Center, which was sold on February 25, 2025.

These decreases were offset by an increase of $0.8 million related to the recent acquisition of Genesee Park on February 28, 2025, and $1.0 million related to La Jolla Commons III, which was placed in service on April 1, 2025.

Interest Expense, net.

Interest expense increased $1.5 million, or 8%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

This increase was primarily due to the closing of our 6.150% Senior Notes on September 17, 2024 and a decrease in capitalized interest related to La Jolla Commons III being placed in service on April 1, 2025.

These increases were partially offset by a decrease in interest expense related to the maturity and repayment of our Series F Notes on July 19, 2024, Series B Notes on December 2, 2024, Term Loan B and Term Loan C on January 2, 2025 and Series C Notes on February 3, 2025.

Other Income, net.

Other income, net decreased $0.8 million, or 47%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

This decrease was primarily due to lower interest and investment income attributed to a decrease in yield on our average cash balance during the period, partially offset by lower income tax expense.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

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

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

Nine Months Ended September 30, Change %

Rental income $ 306,243 $ 315,664 $ (9,421) (3) %

Other property income 19,875 28,731 (8,856) (31)

Total property revenues 326,118 344,395 (18,277) (5)

Rental expenses 91,746 90,707 1,039 1

Real estate taxes 33,179 33,133 46 —

Total property expenses 124,925 123,840 1,085 1

Total property operating income 201,193 220,555 (19,362) (9)

General and administrative (27,662) (26,647) (1,015) 4

Depreciation and amortization (95,290) (94,757) (533) 1

Interest expense, net (58,337) (50,773) (7,564) 15

Gain on sale of real estate 44,476 — 44,476 100

Other income, net 2,769 12,857 (10,088) (78)

Net income 67,149 61,235 5,914 10

Net income attributable to restricted shares (616) (585) (31) 5

Net income attributable to unitholders in the Operating Partnership

(14,033) (12,829) (1,204) 9

Net income attributable to American Assets Trust, Inc.

$ 52,500 $ 47,821 $ 4,679 10 %

Total property revenues .

Total property revenue consists of rental revenue and other property income.

Total property revenue decreased $18.3 million, or 5%, to $326.1 million for the nine months ended September 30, 2025 compared to $344.4 million for the nine months ended September 30, 2024.

The percentage leased was as follows for each segment as of September 30, 2025 and 2024:

Percentage Leased (1)

September 30,

Office 81.9 % 87.0 %

Retail 97.9 % 94.5 %

Multifamily 89.7 % 90.3 %

Mixed-Use (2)

95.0 % 96.3 %

Percentage leased for our multifamily properties includes total units rented and occupied as of September 30, 2025 or 2024, as applicable.

(2) Includes the retail portion of the mixed-use property only.

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

Rental revenues .

Rental revenue includes minimum base rent, cost reimbursements, percentage rents and other rents.

Rental revenue decreased $9.4 million, or 3%, to $306.2 million for the nine months ended September 30, 2025 compared to $315.7 million for the nine months ended September 30, 2024.

Rental revenue by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio (1)

Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %

2025 2024 2025 2024

Office $ 147,059 $ 148,283 $ (1,224) (1) $ 146,448 $ 148,283 $ (1,835) (1)

Retail 69,861 78,786 (8,925) (11) 68,242 67,574 668 1

Multifamily 48,681 46,056 2,625 6 46,009 46,056 (47) —

Mixed-Use 40,642 42,539 (1,897) (4) 40,642 42,539 (1,897) (4)

$ 306,243 $ 315,664 $ (9,421) (3) % $ 301,341 $ 304,452 $ (3,111) (1) %

(1) For this table and the tables following, the same-store portfolio excludes:

(i) One Beach Street (office) due to significant redevelopment;

(ii) Del Monte Center (retail), which was sold on February 25, 2025;

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

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

Same-store multifamily revenue remained flat for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in average monthly base rent, while occupancy had a slight decrease.

Same-store average monthly base rent and occupancy was $2,771 and 89.6% for the nine months ended September 30, 2025 compared to $2,714 and 91.1% for the nine months ended September 30, 2024.

Mixed-use rental revenue decreased $1.9 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 82.9% and $300 for the nine months ended September 30, 2025, respectively, compared to 86.7% and $324 for the nine months ended September 30, 2024, respectively.

Other property income .

Other property income decreased $8.9 million, or 31%, to $19.9 million for the nine months ended September 30, 2025 compared to $28.7 million for the nine months ended September 30, 2024.

Other property income by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %

2025 2024 2025 2024

Office $ 6,933 $ 15,767 $ (8,834) (56) $ 6,887 $ 15,741 $ (8,854) (56)

Retail 926 1,410 (484) (34) 930 1,417 (487) (34)

Multifamily 2,982 2,964 18 1 2,959 2,964 (5) —

Mixed-Use 9,034 8,590 444 5 9,034 8,590 444 5

$ 19,875 $ 28,731 $ (8,856) (31) % $ 19,810 $ 28,712 $ (8,902) (31) %

Office other property income decreased $8.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lease termination fees received at Torrey Reserve in 2024, this decrease was partially offset by lease termination fees received at 14Acres and Timber Ridge in 2025 and an increase in parking garage income at City Center Bellevue, First & Main and Lloyd Portfolio.

Retail other property income decreased $0.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lease termination fees received at Alamo Quarry Market.

Total mixed-use other property income increased $0.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in parking income and lease settlement fees received at the retail portion of our mixed-use property.

Property Expenses

Total Property Expenses.

Total property expenses consist of rental expenses and real estate taxes.

Total property expenses increased by $1.1 million to $124.9 million for the nine months ended September 30, 2025, compared to $123.8 million for the nine months ended September 30, 2024.

This increase in total property expenses was attributable primarily to the factors discussed below .

Rental Expenses.

Rental expenses increased $1.0 million, or 1%, to $91.7 million for the nine months ended September 30, 2025, compared to $90.7 million for the nine months ended September 30, 2024.

Rental expense by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %

2025 2024 2025 2024

Office $ 33,091 $ 31,273 $ 1,818 6 $ 30,995 $ 30,196 $ 799 3

Retail 10,964 13,470 (2,506) (19) 10,140 10,318 (178) (2)

Multifamily 17,741 15,925 1,816 11 16,459 15,925 534 3

Mixed-Use 29,950 30,039 (89) — 29,950 30,039 (89) —

$ 91,746 $ 90,707 $ 1,039 1 % $ 87,544 $ 86,478 $ 1,066 1 %

Office rental expenses increased $1.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase at La Jolla Commons Tower III related to new operations and amenities.

Same-store office rental expense increased $0.8 million due to higher utilities expense, facilities services expense and repairs and maintenance expense.

Retail rental expenses decreased $2.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to $0.5 million written off during the first quarter of 2024 for non-recurring costs related to construction in progress for then-prospective construction at Waikele Center and a $2.3 million decrease due to the sale of Del Monte Center in the first quarter of 2025.

These decreases were partially offset by an increase in utilities expense, facilities services expense and repairs and maintenance expense.

Multifamily rental expenses increased $1.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the acquisition of Genesee Park and an overall increase in insurance expense, facilities services expense and repairs and maintenance expense across most of our other multifamily properties.

Total mixed-use rental expenses decreased $0.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to a decrease in room-related expenses at the hotel portion of our mixed-use property, partially offset by an increase in utilities expense and facilities services expense at the retail portion of our mixed-use property.

Retail rental expense decreased $0.6 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the sale of Del Monte Center in the first quarter of 2025.

Same-store retail rental expense increased $0.2 million due to an increase in repairs and maintenance expense and marketing expense.

Multifamily rental expense increased $0.6 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park.

Same-store multifamily rental expense increased $0.2 million due to an overall increase in facilities services expense and repairs and maintenance expense across our other multifamily properties.

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

Real Estate Taxes.

Real estate tax expense stayed flat at $33.2 million for the nine months ended September 30, 2025, compared to $33.1 million for the nine months ended September 30, 2024.

Real estate taxes increased $0.9 million, or 9%, to $11.9 million for the three months ended March 31, 2026 compared to $11.0 million for the three months ended March 31, 2025.

Real estate tax expense by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %

Three Months Ended March 31, Change % Three Months Ended March 31, Change %

2026 2025 2026 2025

4 unchanged sentences

$ 11,946 $ 11,005 $ 941 9 % $ 11,145 $ 10,956 $ 189 2 %

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

Same-store retail real estate taxes decreased $0.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to a decrease in property tax assessments at Alamo Quarry Market and an increase in real estate tax refunds received at Alamo Quarry Market and Carmel Mountain Plaza.

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

Mixed-use real estate taxes increased $0.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in property tax assessments.

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

Retail real estate taxes increased $0.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to real estate tax refunds received at Del Monte Center in 2025.

Same-store retail real estate taxes increased $0.1 million primarily due to tax consultant fees at Waikele Center.

Multifamily real estate taxes increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park.

Same-store multifamily real estate taxes increased $0.1 million primarily due to higher tax assessments at Pacific Ridge Apartments and Loma Palisades.

Property Operating Income

Property operating income decreased $19.4 million, or 9%, to $201.2 million for the nine months ended September 30, 2025, compared to $220.6 million for the nine months ended September 30, 2024.

Property operating income decreased $0.4 million, or 1%, to $66.9 million for the three months ended March 31, 2026, compared to $67.3 million for the three months ended March 31, 2025.

Property operating income by segment was as follows (dollars in thousands):

Total Portfolio Same-Store Portfolio

Nine Months Ended September 30, Change % Nine Months Ended September 30, Change %

Three Months Ended March 31, Change % Three Months Ended March 31, Change %

2026 2025 2026 2025

4 unchanged sentences

$ 66,926 $ 67,302 $ (376) (1) % $ 66,772 $ 66,686 $ 86 — %

Same-store office operating income decreased $11.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to $11.0 million in lease termination fees received at Torrey Reserve in 2024, decrease in rental revenue driven primarily by lower occupancy and annualized base rents at Torrey Reserve Campus and First & Main, an increase in utilities expense, facilities services expense and repairs and maintenance expense.

These decreases were partially offset by an increase in lease termination fees received at 14Acres and Timber Ridge in 2025 and an increase in parking garage income.

Same-store retail operating income increased $1.1 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to new tenant leases and scheduled rent increases at Carmel Mountain Plaza and Alamo Quarry Market.

Additionally there was a decrease in real estate taxes due to lower property tax assessments at Alamo Quarry Market and an increase in real estate tax refunds received at Alamo Quarry Market and Carmel Mountain Plaza.

Same-store multifamily operating income decreased $0.7 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an overall increase in average monthly base rent, while occupancy had a slight decrease.

Same-store average monthly base rent and occupancy was $2,771 and 89.6%, respectively, for the nine months ended September 30, 2025 compared to $2,714 and 91.1%, respectively, for the nine months ended September 30, 2024.

Additionally, there was an increase in insurance expense, facilities services expense and repairs and maintenance expense.

Total mixed-use operating income decreased $1.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to a decrease in tourism, which led to a decrease in average occupancy and revenue per available room to 82.9% and $300 for the nine months ended September 30, 2025, respectively, compared to 86.7% and $324 for the nine months ended September 30, 2024, respectively.

Additionally, there was an increase in rental expense at the retail portion of our mixed-use property.

This decrease was partially offset by an increase in parking income, lease settlement fees and rental revenue at the retail portion of our mixed-use property.

Office operating income increased $0.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to new tenant leases at La Jolla Commons III, which was offset by an increase in rental expenses due to new operations and amenities and higher real estate taxes at La Jolla Commons III.

Same-store office operating income remained flat as the increase in occupancy and base rents at City Center Bellevue, Timber Ridge and Lloyd Portfolio were offset by lower occupancy at First & Main and higher rental expenses.

Retail operating income decreased $0.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the sale of Del Monte Center.

Same-store retail operating income remained flat as the increase in new tenant leases and scheduled rent increases at Alamo Quarry Market were offset by higher rental expenses.

Multifamily operating income increased $0.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the acquisition of Genesee Park and an increase in occupancy and average monthly base rent.

Same-store average monthly base rent and occupancy was $2,820 and 91.2%, respectively, for the three months ended March 31, 2026, compared to $2,777 and 90.5%, respectively, for the three months ended March 31, 2025.

These increases were partially offset by higher rental expenses and real estate taxes.

Total mixed-use operating income decreased $0.1 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to higher room-related expenses at the hotel portion of our mixed-use property, and an increase in personnel expenses at the retail portion of our mixed-use property.

These decreases were partially offset by an increase in average occupancy and revenue per available room to 91.9% and $305, respectively, for the three months ended March 31, 2026, compared to 84.6% and $298, respectively, for the three months ended March 31, 2025.

General and Administrative.

General and administrative expenses increased $1.0 million, or 4%, to $27.7 million for the nine months ended September 30, 2025, compared to $26.6 million for the nine months ended September 30, 2024.

General and administrative expenses decreased $0.5 million, or 6%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

This decrease was primarily due to lower employee-related costs, including, without limitation, with respect to base pay, bonus and benefits for certain salaried and hourly workers.

Depreciation and Amortization.

Depreciation and amortization expense increased $0.5 million, or 1%, to $95.3 million for the nine months ended September 30, 2025, compared to $94.8 million for the nine months ended September 30, 2024.

This increase was primarily due to $2.2 million related to the recent acquisition of Genesee Park on February 28, 2025 and $2.1 million related to La Jolla Commons III, which was placed in service on April 1, 2025.

These increases were partially offset by lower depreciation expense at Torrey Reserve Campus due to asset acceleration for a tenant vacating their space early in 2024 and Del Monte Center, which was sold on February 25, 2025.

Depreciation and amortization expense increased $1.8 million, or 6%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

This increase was primarily due to $1.1 million related to La Jolla Commons III, which was placed into service on April 1, 2025, $0.2 million related to the acquisition of Genesee Park on February 28, 2025 and new tenant improvements, building improvements and leasing commission assets placed into service.

Interest Expense, net.

Interest expense increased $7.6 million, or 15%, to $58.3 million for the nine months ended September 30, 2025 compared to $50.8 million for the nine months ended September 30, 2024.

This increase was partially offset by a decrease in interest expense related to the maturity and repayment of our Series F Notes on July 19, 2024, Series B Notes on December 2, 2024, Term Loan B and Term Loan C on January 2, 2025 and Series C Notes on February 3, 2025.

Interest expense increased $0.9 million, or 5%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

This increase was primarily due to a decrease in capitalized interest related to La Jolla Commons III being placed into service on April 1, 2025.

This increase was partially offset by a decrease in interest expense related to the maturity and repayment of our Series C Notes on February 3, 2025.

Gain on sale of real estate.

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

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

Other Income, net.

Other income, net decreased $10.1 million, or 78%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

This decrease was primarily due to the net settlement payment of approximately $10.0 million received during the three months ended March 31, 2024 relating to building specifications for one of the existing buildings at our office project in University Town Center (San Diego).

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

This decrease was primarily due to lower interest and investment income attributed to a decrease in yield on our average cash balance during the period, partially offset by lower income tax expense.

Liquidity and Capital Resources of American Assets Trust, Inc.

9 unchanged sentences

The company’s principal source of funding for its dividend payments is distributions it receives from the Operating Partnership.

As of September 30, 2025, the company owned an approximate 78.9% partnership interest in the Operating Partnership.

As of March 31, 2026, the company owned an approximate 78.95% partnership interest in the Operating Partnership.

The remaining approximately 21.05% are owned by non-affiliated investors and certain of the company's directors and executive officers.

8 unchanged sentences

We believe the Operating Partnership’s sources of working capital, specifically its cash flow from operations, and borrowings available under its unsecured line of credit, are adequate for it to make its distribution payments to the company and, in turn, for the company to make its dividend payments to its stockholders.

As of September 30, 2025, the company has determined that it has adequate working capital to meet its dividend funding obligations for the next 12 months.

As of March 31, 2026, the company has determined that it has adequate working capital to meet its dividend funding obligations for the next 12 months.

However, we cannot assure you that the Operating Partnership’s sources of capital will continue to be available at all or in amounts sufficient to meet its needs, including its ability to make distribution payments to the company.

17 unchanged sentences

Factors influencing the availability of additional financing include investor perception of our prospects and the general condition of the financial markets, among others.

On December 3, 2021, we entered into a new ATM equity program with five sales agents under which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250.0 million.

The sale of shares of our common stock made through the ATM equity program are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended.

We intend to use the net proceeds to fund development or redevelopment activities, repay amounts outstanding from time to time under our amended and restated credit facility or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes.

Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of the company's common stock and the company's capital needs.

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

On December 3, 2021, the company entered into a new ATM equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250 million.

The sales of shares of our common stock made through the ATM equity program, as amended, are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended.

We intend to use the net proceeds to fund development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes.

Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs.

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

We have no obligation to sell the remaining shares available for sale under the ATM equity program.

9 unchanged sentences

must generally make annual distributions to its stockholders of at least 90% of its net taxable income.

As of September 30, 2025, we held $138.7 million in cash and cash equivalents.

As of March 31, 2026, we held $118.3 million in cash and cash equivalents.

Our short-term liquidity requirements consist primarily of operating expenses and other expenditures associated with our properties, regular debt service requirements, dividend payments to American Assets Trust, Inc.'s stockholders required to maintain its REIT status, distributions to our unitholders, capital expenditures and, potentially, acquisitions.

7 unchanged sentences

Our ability to access the equity capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about our company.

Our overall capital requirements for the remainder of 2025 and for the nine months ended September 30, 2026 will depend upon acquisition opportunities and the level of improvements and redevelopments on existing properties.

Our overall capital requirements for the remainder of 2026 will depend upon acquisition opportunities and the level of improvements and redevelopments on existing properties.

Our capital investments will be funded on a short-term basis with, among other sources of capital, cash on hand, cash flow from operations and/or our revolving line of credit.

10 unchanged sentences

We currently do not have any off-balance sheet arrangements.

Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024

Cash and cash equivalents were $138.7 million and $533.0 million at September 30, 2025 and 2024, respectively.

Net cash provided by operating activities decreased $39.9 million to $126.5 million for the nine months ended September 30, 2025 compared to $166.5 million for the nine months ended September 30, 2024.

The decrease in cash from operations was primarily due to the net settlement received during the first quarter of 2024 relating to the building specifications for one of the existing buildings at our office project in University Town Center (San Diego), lease termination fees received at Torrey Reserve Campus during 2024 and a decrease in rental revenue and changes in operating assets and liabilities.

Net cash used in investing activities decreased $47.1 million to $9.6 million for the nine months ended September 30, 2025 compared to $56.8 million for the nine months ended September 30, 2024.

The increase in cash provided was primarily due to the proceeds from the sale of Del Monte Center, offset by the use of cash for the acquisition of Genesee Park and an increase in capital expenditures related to new tenant improvement projects, leasing commissions and building renovation capital projects.

Net cash used in financing activities increased $744.3 million to $403.9 million for the nine months ended September 30, 2025 compared to cash provided by financing activities of $340.4 million for the nine months ended September 30, 2024.

The increase in cash used in financing activities was primarily due to the repayment of the $225 million aggregate outstanding balance on our Term Loan B and Term Loan C on January 2, 2025 and the repayment of the $100 million outstanding balance on our Series C Notes, on February 3, 2025.

Comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025

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

Net cash provided by operating activities increased $1.7 million to $38.6 million for the three months ended March 31, 2026 compared to $36.9 million for the three months ended March 31, 2025.

The increase in cash from operations was primarily due to an increase in rental revenue and changes in operating assets and liabilities.

Net cash used in investing activities increased $55.9 million to $23.2 million for the three months ended March 31, 2026 compared to cash provided by investing activities of $32.7 million for the three months ended March 31, 2025.

The increase in cash used in investing activities was primarily due to an increase in capital expenditures related to new tenant improvement projects, leasing commissions and building renovation capital projects.

The cash provided by investing activities during 2025 was primarily due to the proceeds from the sale of Del Monte Center, offset by the use of cash for the acquisition of Genesee Park.

Net cash used in financing activities decreased $324.9 million to $26.4 million for the three months ended March 31, 2026 compared to $351.3 million for the three months ended March 31, 2025.

The decrease in cash used in financing activities was primarily due to the repayment of the $225 million aggregate outstanding balance on our Term Loan B and Term Loan C on January 2, 2025 and the repayment of the $100 million outstanding balance on our Series C Notes, on February 3, 2025.

Net Operating Income

17 unchanged sentences

Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

The following is a reconciliation of our NOI to net income for the three and nine months ended September 30, 2025 and 2024 computed in accordance with GAAP (in thousands):

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

2025 2024 2025 2024

The following is a reconciliation of our NOI to net income for the three months ended March 31, 2026 and 2025 computed in accordance with GAAP (in thousands):

Three Months Ended March 31,

Net operating income $ 66,926 $ 67,302

18 unchanged sentences

FFO also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

The following table sets forth a reconciliation of our net income for the three and nine months ended September 30, 2025 to FFO, the nearest GAAP equivalent (in thousands, except per share and share data):

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

The following table sets forth a reconciliation of our net income for the three months ended March 31, 2026 to FFO, the nearest GAAP equivalent (in thousands, except per share and share data):

Three Months Ended March 31,

Funds from Operations (FFO)

11 unchanged sentences

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 2. Management’s Discussion and Analysis