What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-05-01 · 179 added, 141 removed, 777 unchanged (29% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

March 31, December 31,

June 30, December 31,

Real estate, at cost

20 unchanged sentences

stockholders’ equity

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

Common stock, $ 0.01 par value, 490,000,000 shares authorized, 61,404,213 and 61,390,936 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,483,234 1,479,870

10 unchanged sentences

(In Thousands, Except Shares and Per Share Data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Rental income $ 103,115 $ 101,070 $ 207,537 $ 204,021

26 unchanged sentences

Other comprehensive loss - unrealized loss on swap derivatives during the period ( 470 ) ( 768 ) ( 746 ) ( 1,960 )

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

Reclassification of amortization of forward-starting swaps included in interest expense ( 257 ) ( 258 ) ( 515 ) ( 516 )

Comprehensive income 6,063 6,095 12,268 58,752

19 unchanged sentences

Other comprehensive loss - change in value of interest rate swaps — — — — ( 217 ) ( 59 ) ( 276 )

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

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

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

Net income — — — 5,410 — 1,380 6,790

Issuance of restricted stock 15,372 — — — — — —

Forfeiture of restricted stock ( 2,095 ) — — — — — —

Dividends declared and paid — — — ( 20,879 ) — ( 5,501 ) ( 26,380 )

Stock-based compensation — — 1,682 — — — 1,682

Other comprehensive loss - change in value of interest rate swaps — — — — ( 371 ) ( 99 ) ( 470 )

Reclassification of amortization of forward-starting swaps included in interest expense — — — — ( 203 ) ( 54 ) ( 257 )

Balance at June 30, 2026 61,404,213 $ 614 $ 1,483,234 $ ( 362,058 ) $ 424 $ ( 68,132 ) $ 1,054,082

American Assets Trust, Inc.

13 unchanged sentences

Balance at March 31, 2025 61,134,730 $ 611 $ 1,476,539 $ ( 282,387 ) $ 3,617 $ ( 46,020 ) $ 1,152,360

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

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 swaps 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

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

2 unchanged sentences

(In Thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

7 unchanged sentences

Stock-based compensation expense 3,364 3,353

Lease termination income — 814

Other noncash interest expense, net ( 515 ) ( 515 )

16 unchanged sentences

Repayment of unsecured notes payable — ( 100,000 )

Debt issuance costs ( 4,718 ) —

Dividends paid to common stock and unitholders ( 52,755 ) ( 52,582 )

7 unchanged sentences

(In Thousands, Except Unit Data)

March 31, December 31,

June 30, December 31,

Real estate, at cost

18 unchanged sentences

Commitments and contingencies (Note 11)

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

Limited partners' capital, 16,181,537 and 16,181,537 units issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

( 68,776 ) ( 60,522 )

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

General partner's capital, 61,404,213 and 61,390,936 units issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

1,121,790 1,149,398

6 unchanged sentences

(In Thousands, Except Shares and Per Unit Data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Rental income $ 103,115 $ 101,070 $ 207,537 $ 204,021

25 unchanged sentences

Net income $ 6,790 $ 7,121 $ 13,529 $ 61,228

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

Other comprehensive loss - unrealized loss on swap derivatives during the period ( 470 ) ( 768 ) ( 746 ) ( 1,960 )

Reclassification of amortization of forward-starting swap included in interest expense ( 257 ) ( 258 ) ( 515 ) ( 516 )

15 unchanged sentences

Stock-based compensation — — — 1,682 — 1,682

Other comprehensive loss - change in value of interest rate swap — — — — ( 276 ) ( 276 )

Other comprehensive loss - change in value of interest rate swaps — — — — ( 276 ) ( 276 )

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

Balance at March 31, 2026 16,181,537 $ ( 64,655 ) 61,390,936 $ 1,135,577 $ 1,795 $ 1,072,717

Net income — 1,380 — 5,410 — 6,790

Issuance of restricted units — — 15,372 — — —

Forfeiture of restricted units — — ( 2,095 ) — — —

Distributions — ( 5,501 ) — ( 20,879 ) — ( 26,380 )

Stock-based compensation — — — 1,682 — 1,682

Other comprehensive loss - change in value of interest rate swaps — — — — ( 470 ) ( 470 )

Reclassification of amortization of forward starting swaps included in interest expense — — — — ( 257 ) ( 257 )

Balance at June 30, 2026

16,181,537 $ ( 68,776 ) 61,404,213 $ 1,121,790 $ 1,068 $ 1,054,082

8 unchanged sentences

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

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

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

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

Balance at March 31, 2025 16,181,537 $ ( 47,518 ) 61,134,730 $ 1,194,763 $ 5,115 $ 1,152,360

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

Net income — 1,459 — 5,662 — 7,121

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

Forfeiture of restricted units — — — — — —

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

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

Other comprehensive loss - change in value of interest rate swaps — — — — ( 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

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

4 unchanged sentences

(Unaudited, In Thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

7 unchanged sentences

Stock-based compensation expense 3,364 3,353

Lease termination income — 814

Other noncash interest expense, net ( 515 ) ( 515 )

16 unchanged sentences

Repayment of unsecured notes payable — ( 100,000 )

Debt issuance costs ( 4,718 ) —

Distributions ( 52,755 ) ( 52,582 )

7 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 unchanged sentences

We are a full service, vertically integrated, and self-administered REIT with approximately 232 employees providing substantial in-house expertise in asset management, property management, property development, leasing, tenant improvement construction, acquisitions, repositioning, redevelopment and financing.

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.

As of June 30, 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 June 30, 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:

21 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

Basis of Presentation

18 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

Supplemental cash flow information

10 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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 three months ended March 31, 2026.

There have been no changes to our significant accounting policies during the six months ended June 30, 2026.

Segment Information

12 unchanged sentences

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

The allowance for doubtful accounts at June 30, 2026 and December 31, 2025 was approximately $ 1.5 million and $ 1.3 million, respectively.

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.

12 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

The following summarizes our acquired lease intangibles and leasing costs, which are included in other assets and other liabilities and deferred credits, as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026 December 31, 2025

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

24 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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 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.

However, as of June 30, 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):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

6 unchanged sentences

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):

March 31, 2026 December 31, 2025

The fair values of our senior notes are generally estimated based on quoted market prices for these instruments.

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

June 30, 2026 December 31, 2025

Carrying Value Fair Value Carrying Value Fair Value

7 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 March 31, 2026 (dollars in thousands):

The following is a summary of the terms of our outstanding interest rate swaps as of June 30, 2026 (dollars in thousands):

Swap Counterparty Notional Amount Effective Date Maturity Date Fair Value

8 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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.

4 unchanged sentences

Other assets consist of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Leasing commissions, net of accumulated amortization of $ 57,973 and $ 56,094 , respectively

11 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Acquired below market leases, net $ 10,043 $ 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, and (iii) third amended and restated credit facility (see Note 17.

Subsequent Events), 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) fourth amended and restated credit facility, each discussed below.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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 March 31, 2026 and December 31, 2025 (in thousands):

The following table is a summary of our total secured notes payable outstanding as of June 30, 2026 and December 31, 2025 (in thousands):

Principal Balance as of Stated Interest Rate Stated Maturity Date

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

Description of Debt June 30, 2026 December 31, 2025 as of June 30, 2026

City Center Bellevue (1)

7 unchanged sentences

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

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

As of June 30, 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 March 31, 2026 and December 31, 2025 (in thousands):

The following table is a summary of the Operating Partnership's total unsecured notes payable outstanding as of June 30, 2026 and December 31, 2025 (in thousands):

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

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

June 30, 2026 December 31, 2025 as of June 30, 2026

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

January 5, 2027 (2)

April 1, 2030 (2)

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

20 unchanged sentences

The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88 % per annum.

(6) The Operating Partnership entered into a treasury lock contracts on September 9, 2024 for $ 150 million and September 10, 2024 for an additional $ 150 million, which were both settled on September 10, 2024 at a combined loss of approximately $ 1.3 million.

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.

(6) The Operating Partnership entered into treasury lock contracts on September 9, 2024 for $ 150 million and September 10, 2024 for an additional $ 150 million, which were both settled on September 10, 2024 at a combined loss of approximately $ 1.3 million.

The treasury lock contracts were deemed to be highly effective cash flow hedges, accordingly, the effective interest rate is approximately 6.21 % per annum.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 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.

6 unchanged sentences

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

Prior to the issuance of the 6.150 % Senior Notes, the Operating Partnership entered into treasury lock contracts on September 9, 2024 for $ 150 million and September 10, 2024 for an additional $ 150 million, which were both settled on September 10, 2024 at a combined loss of approximately $ 1.3 million.

As a result of the loss on these treasury lock contracts and the debt discount, the effective rate on our 6.150 % Senior Notes is 6.209 % per annum.

The treasury lock contracts have been deemed to be highly effective cash flow hedges and have been designated as accounting hedges.

Any gains or losses incurred upon the settlement of these treasury lock contracts are included in accumulated other comprehensive income and are amortized to interest expense over the life of the 6.150 % Senior Notes.

The 3.375 % Senior Notes and the 6.150 % Senior Notes include a number of customary financial covenants, including:

3 unchanged sentences

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

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.

As of June 30, 2026, the Operating Partnership was in compliance with all then in-place 3.375 % Senior Notes and 6.150 % Senior Notes covenants.

Senior Guaranteed Notes

4 unchanged sentences

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.

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.

As of June 30, 2026, the Operating Partnership was in compliance with all covenants under the Note Purchase Agreements.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

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

June 30, 2026

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.

1 unchanged sentence

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”).

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.

On January 14, 2022, the Operating Partnership entered into an interest rate swap agreement intended to fix the interest rate associated with the Term Loan A at approximately 2.70 % through January 5, 2027, subject to adjustments based on our consolidated leverage ratio.

The Third Amended and Restated Credit Facility includes a number of customary financial covenants, including:

On April 1, 2026, the Operating Partnership entered into the fourth amended and restated credit facility (the “Fourth Amended and Restated Credit Facility”), which amended and restated our then-existing credit facility.

The Fourth Amended and Restated Credit Facility 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.

As of June 30, 2026, the entirety of the principal amount of the 2026 Term Loan A was outstanding, there were no amounts outstanding under the 2026 Revolver Loan, and the Operating Partnership had incurred approximately $ 3.8 million of net debt issuance costs which are recorded in other assets, net on the consolidated balance sheet.

For the six months ended June 30, 2026, the weighted average interest rate on the 2026 Revolver Loan was 4.78 %.

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.

The Fourth Amended and Restated Credit Facility includes a number of customary financial covenants, including:

• A maximum leverage ratio (defined as total indebtedness net of certain cash and cash equivalents to total asset value) of 60 %,

4 unchanged sentences

• Recourse indebtedness at any time cannot exceed 15 % of total asset value.

The Third Amended and Restated Credit Facility also provides that our annual distributions may not exceed the greater of (1) 95 % of our funds from operations (“FFO”) or (2) the amount required for us to (a) qualify and maintain our REIT status and (b) avoid the payment of federal or state income or excise tax.

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.

The Fourth Amended and Restated Credit Facility contains certain restrictions on distributions.

If certain events of default exist or would result from a distribution, our ability to make cash distributions may be limited to amounts necessary to maintain our qualification as a REIT and avoid the payment of federal and state income and excise taxes.

Following an acceleration of the obligations under the credit facility following an event of default or the occurrence of certain bankruptcy or insolvency events of default, we may be prohibited from making cash distributions .

As of June 30, 2026, the Operating Partnership was in compliance with all in-place Fourth Amended and Restated Credit Facility covenants.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

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.

June 30, 2026

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 21.05 % of the ownership interests in our Operating Partnership at March 31, 2026.

Noncontrolling interests consisted of 16,181,537 common units (the “noncontrolling common units”), and represented approximately 21.04 % of the ownership interests in our Operating Partnership at June 30, 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 three months ended March 31, 2026, no common units were converted into shares of our common stock.

During the six months ended June 30, 2026, no common units were converted into shares of our common stock.

Earnings Per Unit of the Operating Partnership

2 unchanged sentences

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 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.

The calculation of diluted EPU for the three months ended June 30, 2026 and 2025 does not include the weighted average of 692,211 and 600,282 unvested outstanding Operating Partnership units, respectively, and for the six months ended June 30, 2026 and 2025 does not include the weighted average of 692,731 and 600,076 unvested outstanding Operating Partnership units, respectively, as these equity securities are either considered contingently issuable, or for which applicable performance conditions had not been achieved, 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.

2 unchanged sentences

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

For the six months ended June 30, 2026, 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 June 30, 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 June 30, 2026, we have no obligation to sell the remaining shares available for sale under the ATM equity program.

American Assets Trust, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements—(Continued)

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:

June 30, 2026

The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the six months ended June 30, 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 2026 $ 0.340 April 1, 2026 to June 30, 2026 June 18, 2026

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 three months ended March 31, 2026:

The following table summarizes the activity of restricted stock awards during the six months ended June 30, 2026:

Units Weighted Average Grant Date Fair Value

Nonvested at January 1, 2026 693,257 $ 16.58

Granted 15,372 23.42

Vested ( 17,812 ) 20.21

Forfeited ( 2,095 ) 15.92

Nonvested at March 31, 2026

Nonvested at June 30, 2026

688,722 $ 16.64

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.

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 June 30, 2026 and 2025, respectively, and $ 3.4 million and $ 3.4 million for the six months ended June 30, 2026 and 2025, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income.

Unrecognized compensation expense was $ 6.5 million at June 30, 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 693,257 and 599,868 for the three months ended March 31, 2026 and 2025, respectively.

The weighted average unvested shares outstanding, which are considered participating securities, were 692,211 and 600,282 for the three months ended June 30, 2026 and 2025, respectively, and 692,731 and 600,076 for the six months ended June 30, 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 months ended March 31, 2026 and 2025, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable.

For the three and six months ended June 30, 2026 and 2025, diluted shares exclude incentive restricted stock awards that are considered contingently issuable and were either anti-dilutive or for which applicable performance conditions had not been achieved.

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)

March 31, 2026

June 30, 2026

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 6,790 $ 7,121 $ 13,529 $ 61,228

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Income from operations attributable to unitholders in the Operating Partnership

1,380 1,459 2,749 12,828

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 $ 0.6 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.

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 June 30, 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 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

We are sometimes involved in various disputes, lawsuits, warranty claims, environmental considerations, and other matters arising in the ordinary course of business.

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

For the three and six months ended June 30, 2026, we recorded income tax expense of $ 0.1 million and $ 0.2 million, respectively.

For the three and six months ended June 30, 2025, we recorded income tax expense of $ 0.1 million and $ 0.5 million, respectively.

American Assets Trust, Inc.

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Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

COMMITMENTS AND CONTINGENCIES

We are sometimes involved in various disputes, lawsuits, warranty claims, environmental considerations, and other matters arising in the ordinary course of business.

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

We are currently a party to various legal proceedings.

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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 $ 7.8 million based on operating performance through March 31, 2026.

American Assets Trust, Inc.

and American Assets Trust, L.P.

Notes to Consolidated Financial Statements—(Continued)

June 30, 2026

Concentrations of Credit Risk

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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 47.3 % of total revenues for the three months ended March 31, 2026.

Tenants in the office industry accounted for 46.8 % of total revenues for the six months ended June 30, 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 21.1 % of total revenues for the three months ended March 31, 2026.

Furthermore, tenants in the retail industry accounted for 21.3 % of total revenues for the six months ended June 30, 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 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

For the six months ended June 30, 2026 and 2025, no tenant accounted for more than 10% of our total rental revenue.

Lessor Operating Leases

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Leases at our office and retail properties and the retail portion of our mixed-use property may contain lease extension options, at our lessee's discretion.

The extension options are generally for 3 to 10 years and contain primarily rent at fixed rates or the prevailing market rent.

The extension options are generally exercisable 6 to 12 months prior to the expiration of the lease and require the lessee to not be in default of the lease terms.

The extension options are generally for three years to ten years and contain primarily rent at fixed rates or the prevailing market rent.

The extension options are generally exercisable six months to twelve months prior to the expiration of the lease and require the lessee to not be in default of the lease terms.

We attempt to maximize the amount we expect to derive from the underlying real estate property following the end of a lease, to the extent it is not extended.

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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 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

As of June 30, 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 (six months ending December 31, 2026) $ 125,256

Thereafter 287,198

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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)

June 30, 2026

Lessee Operating Leases

6 unchanged sentences

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.

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

As of June 30, 2026, current annual payments under the operating leases are as follows for the years ended December 31 (in thousands):

2026 (six months ending December 31, 2026) $ 1,792

Thereafter 2,017

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Operating lease cost $ 907 $ 910 $ 1,845 $ 1,819

Sublease income ( 874 ) ( 858 ) ( 1,916 ) ( 1,718 )

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

Total lease cost (income) $ 33 $ 52 $ ( 71 ) $ 101

Weighted-average remaining lease term - operating leases (in years) 5.0

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

Three Months Ended March 31,

Six Months Ended June 30,

Operating cash flow information:

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Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

COMPONENTS OF RENTAL INCOME AND EXPENSE

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Lease rental income

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Total rental income $ 103,115 $ 101,070 $ 207,537 $ 204,021

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.

Minimum rents include $ 0.2 million and $ 0.2 million for the three months ended June 30, 2026 and 2025, respectively, and $ 0.4 million and $ 0.6 million for the six months ended June 30, 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 $ 0.5 million and $ 0.7 million for the three months ended June 30, 2026 and 2025, respectively, and $ 0.9 million and $ 1.2 million for the six months ended June 30, 2026 and 2025, respectively.

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Rental operating $ 14,446 $ 13,726 $ 29,341 $ 28,343

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Marketing 556 533 1,157 1,106

Rent 906 662 1,857 1,571

Hawaii excise tax 1,059 1,049 2,086 2,054

2 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Interest and investment income $ 540 $ 1,045 $ 1,255 $ 2,377

4 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

RELATED PARTY TRANSACTIONS

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

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.

Rady, our Executive Chairman, 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 six months ended June 30, 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 $ 0.3 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.

The operating expenses of WBW CHP LLC are recovered through reimbursements from its members, and reimbursements to WBW CHP LLC of $ 0.5 million and $ 0.6 million for the six months ended June 30, 2026 and 2025, respectively, are included in rental expenses on the consolidated statements of comprehensive income.

SEGMENT REPORTING

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.

For the three and six months ended June 30, 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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Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Property revenue $ 50,725 $ 50,818 $ 103,082 $ 101,699

22 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Total segments’ profit $ 67,923 $ 67,610 $ 134,849 $ 134,912

12 unchanged sentences

Notes to Consolidated Financial Statements—(Continued)

March 31, 2026

June 30, 2026

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Net Real Estate

7 unchanged sentences

$ 75,000 $ 75,000

(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,

(1) Excludes unamortized debt issuance costs of $ 0.1 million and $ 0.2 million for each of the periods ended June 30, 2026 and December 31, 2025, respectively.

Capital expenditures for each segment for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Capital Expenditures (1)

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(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