Here are 1-2 brief analogies for American Assets Trust (AAT):

• Imagine a real estate-focused Berkshire Hathaway, owning a diverse portfolio of West Coast retail, office, and residential properties.

• It's like a publicly traded, West Coast-focused version of Blackstone's real estate investments, operating a mix of retail, office, and apartment buildings.

• Retail Property Leasing: Offering commercial spaces in shopping centers and lifestyle centers to retail businesses.
• Office Property Leasing: Providing professional office spaces for various businesses and organizations.
• Multifamily Residential Leasing: Renting apartment units and residential dwellings to individuals and families.
• Hotel Operations: Managing and operating hotel properties, providing lodging and hospitality services to guests.

American Assets Trust (AAT) primarily sells to other companies. While the company does derive a portion of its revenue from multifamily properties (leasing to individuals), its retail and office segments, which lease space to businesses, collectively account for the majority of its rental revenue.

Based on their 2023 annual report (10-K), AAT's major corporate customers (tenants in their retail segment) include:

• The Kroger Co. (NYSE: KR)
• Whole Foods Market, Inc. (a subsidiary of Amazon.com, Inc. - NASDAQ: AMZN)
• Best Buy Stores, L.P. (a subsidiary of Best Buy Co., Inc. - NYSE: BBY)
• CVS Pharmacy, Inc. (a subsidiary of CVS Health Corporation - NYSE: CVS)
• Trader Joe's Company (Private Company)
• Vons Companies, Inc. (a subsidiary of Albertsons Companies, Inc. - NYSE: ACI)
• Amazon.com Services, LLC (NASDAQ: AMZN)
• Target Corporation (NYSE: TGT)
• Safeway, Inc. (a subsidiary of Albertsons Companies, Inc. - NYSE: ACI)
• T.J. Maxx (a subsidiary of The TJX Companies, Inc. - NYSE: TJX)

These top ten retail tenants collectively accounted for approximately 20.9% of AAT's total annual minimum rent as of December 31, 2023. No single office tenant accounted for 5% or more of their total annual minimum rent.

Ernest Rady, Executive Chairman

Ernest Rady founded American Assets, Inc., the predecessor to American Assets Trust, Inc., in 1967. He also founded Insurance Company of the West (ICW) in 1971, where he continues to serve as chairman. In the same year, he founded Westcorp, a financial services company, serving as its chairman and CEO from 1973 until its merger with Wachovia Bank in 2006. Mr. Rady also served as a director of WFS Financial Inc., an automobile finance company, from 1988 to 2006, and as chairman from 1995 to 2006.

Adam Wyll, President and Chief Executive Officer

Adam Wyll assumed the role of President and Chief Executive Officer on January 1, 2025. Prior to this, he served as President and Chief Operating Officer from July 2021 to December 2024, Executive Vice President and Chief Operating Officer from November 2019 to June 2021, and Senior Vice President and General Counsel from the company's IPO in January 2011 to October 2019. Before the IPO, Mr. Wyll was Vice President of Private Equity and Vice President of Legal and Business Affairs at American Assets, Inc., the company's predecessor, where his responsibilities included structuring and managing complex real estate and private equity transactions. He also worked as an attorney specializing in representing institutional lenders in finance and real estate transactions.

Robert F. Barton, Executive Vice President and Chief Financial Officer

Robert F. Barton has been the Executive Vice President and Chief Financial Officer since American Assets Trust's initial public offering in January 2011. Before the IPO, from 1998, he served as Executive Vice President and Chief Financial Officer of American Assets, Inc., the predecessor entity. From 1986 to 1996, Mr. Barton was Senior Vice President and Chief Financial Officer of RCI Asset Management Group, a privately held real estate developer whose capital partners included Melvin Simon & Associates, the predecessor to Simon Property Group. He also served as executive director of real estate and finance for Flour Daniel, a Fortune 500 engineering and construction company, from 1996 to 1998. Mr. Barton began his career as an auditor with Arthur Young & Co. in 1980 and later was a senior audit manager at Kenneth Leventhal & Company, where he served private and publicly traded real estate developers.

Jerry Gammieri, Senior Vice President of Construction and Development

Jerry Gammieri serves as the Senior Vice President of Construction and Development for American Assets Trust, Inc. He has been Vice President of Construction and Development at the company.

Steve Center, Senior Vice President of Office Properties

Steve Center is the Senior Vice President of Office Properties. He previously served as Assistant Vice President at MONY Real Estate/ARES and as an agency leasing broker for Cushman & Wakefield in the South Bay/Los Angeles office from 1990 to 1992. Mr. Center was also president of the San Diego chapter of the NAIOP in 2008 and served on its Board for several years.

The key risks to American Assets Trust (AAT) primarily revolve around the challenges within its real estate portfolio, the broader economic environment, and its financial performance projections.

1. Declining Performance of the Office Portfolio: American Assets Trust faces significant challenges from declining rental income and lower occupancy rates within its office portfolio. This has been a persistent issue, impacting overall revenue generation and Funds From Operations (FFO). For example, office occupancy declined from 85.0% in Q4 2024 to 82% by Q2 2025. The struggles in the broader office sector, marked by high vacancy rates nationally, directly affect AAT's office properties.
2. Impact of High Interest Rates: The sustained high interest rate environment continues to negatively affect AAT, contributing to a substantial increase in interest expense. For instance, interest expenses increased by 21% from Q2 2024 to Q2 2025. While debt markets are anticipated to become more favorable with potentially declining interest rates in 2025, the current elevated rates pose a significant headwind to profitability and cash flow.
3. Projected Decline in Future Profits: Analysts are forecasting a significant decline in American Assets Trust's earnings, with projections indicating a drop of 173.5% per year over the next three years. This sharp contrast between modest revenue growth and a swing to negative profitability is attributed to shrinking profit margins, which could negate gains from rent escalations and acquisitions. This outlook suggests that structural headwinds may overwhelm positive catalysts such as tourism recovery and strategic property deals.

The structural shift towards remote and hybrid work models represents a clear emerging threat for American Assets Trust, particularly impacting its significant office property segment. This trend, accelerated by recent global events and enabled by technology, fundamentally alters the demand for traditional office space. Companies are re-evaluating their physical footprint, leading to potential long-term reductions in leased square footage, increased vacancy rates, and pressure on rental income and property valuations within AAT's office portfolio.

American Assets Trust (AAT) operates across four primary business segments in the United States: Retail Properties, Office Properties, Residential Properties (Multifamily), and Mixed-Use Properties. These properties are predominantly located in Southern California, Northern California, Oregon, Washington, and Hawaii.

The addressable markets for these services are sized as follows:

• Retail Properties: The U.S. commercial real estate market size, which includes retail, reached $1.2 trillion in revenue in 2022. As of Q4 2022, shopping centers under construction in the U.S. reached 10.6 million square feet. The retail sector's transaction volume in Q2 2025 contracted by 14.2% to $17.6 billion. The retail availability rate is expected to reach a record-low 4.6% in 2024 due to a lack of new supply.
• Office Properties: The U.S. Office Real Estate Market size is estimated at $369.58 billion in 2025 and is expected to reach $436.81 billion by 2030, growing at a CAGR of 3.40%. Another source valued the US Office Real Estate Market at $1.2 trillion in 2024, projected to reach $1.8 trillion by 2032 with a CAGR of 4.6% from 2025 to 2032. Office transactions totaled $16.7 billion in Q2 2025, up 11.8% year-over-year.
• Residential Properties (Multifamily): The United States multifamily market size was valued at $265 billion in 2022 and is expected to reach $466 billion in 2030, with a CAGR of 7.31% for the forecast period between 2023 and 2030. Multifamily transaction volume surged 39.5% year-over-year to $34.1 billion in Q2 2025. Nationally, multifamily sales rose almost 20 percent year-over-year, from $29.2 billion in the first half of 2024 to $35 billion during the same time frame of 2025.
• Mixed-Use Properties: The commercial general and mixed-use category transaction volume grew 11.3% year-over-year to $8.2 billion in Q2 2025. The United States commercial real estate market, which includes mixed-use developments, reached $718.2 billion in 2024 and is expected to reach $991.7 billion by 2033, exhibiting a growth rate (CAGR) of 3.35% during 2025-2033.

Share Repurchases

Share Issuance

• As of December 31, 2022, there were 60,718,653 shares issued and outstanding.
• By December 31, 2023, this increased to 60,895,786 shares.
• As of December 31, 2024, the number of issued and outstanding shares was 61,138,238.

Inbound Investments

• In 2020, the company completed a $500 million public bond offering with a 3.375% interest rate due in 2031. A portion of these proceeds was used to repay $150 million in senior notes.
• More recently, around late 2024 and early 2025, a $525 million bond was issued, which contributed to increased liquidity and improved financial flexibility. Concurrently, $225 million outstanding on Term Loan B and Term Loan C were repaid in early 2025.

Outbound Investments

• In the third quarter of 2025, American Assets Trust sold the Del Monte Center for $123.5 million, realizing net proceeds of $117.8 million.
• Capital from the Del Monte Center sale was redeployed to acquire the 192-unit Genesee Park for $67.9 million in the third quarter of 2025.

Capital Expenditures

• Cash outflows for investments, which include capital expenditures, were approximately $63.49 million in 2020, $104.63 million in 2021, $113.78 million in 2022, $82.98 million in 2023, and $70.21 million in 2024.
• The company maintains a proactive leasing and capital improvement program.
• Long-term liquidity needs primarily involve funding for property acquisitions, tenant improvements, and capital improvements.