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EQUITY OF AMERICAN ASSETS TRUST, INC. | 9 Months Ended
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Sep. 30, 2025
Equity [Abstract] |
EQUITY OF AMERICAN ASSETS TRUST, INC. | EQUITY OF AMERICAN ASSETS TRUST, INC. Stockholders' Equity On December 3, 2021, we entered into an at-the-market (“ATM”) equity program with five sales agents in which we may, from time to time, offer and sell shares of our common stock having an aggregate offering price of up to $250 million. The sales of shares of our common stock made through the ATM equity program, as amended, are made in “at-the-market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended. For the nine months ended September 30, 2025, no shares of common stock were sold through the ATM equity program. We intend to use the net proceeds from the ATM equity program to fund our development or redevelopment activities, repay amounts outstanding from time to time under our revolving line of credit or other debt financing obligations, fund potential acquisition opportunities and/or for general corporate purposes. As of September 30, 2025, we had the capacity to issue up to $250 million in shares of our common stock under our current ATM equity program. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common stock and our capital needs. As of September 30, 2025, we have no obligation to sell the remaining shares available for sale under the ATM equity program. Dividends The following table lists the dividends declared and paid on our shares of common stock and noncontrolling common units during the nine months ended September 30, 2025:
Period |  | Amount per Share/Unit |  | Period Covered |  | Dividend Paid Date
First Quarter 2025 |  | $ | 0.340 |  |  | January 1, 2025 to March 31, 2025 |  | March 20, 2025
Second Quarter 2025 |  | $ | 0.340 |  |  | April 1, 2025 to June 30, 2025 |  | June 18, 2025
Third Quarter 2025 |  | $ | 0.340 |  |  | July 1, 2025 to September 30, 2025 |  | September 18, 2025
Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders and holders of common units, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of revenue recognition and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. Stock-Based Compensation We follow the FASB guidance related to stock-based compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer. The guidance also defines a fair value-based method of accounting for an employee stock award or similar equity instrument. The following table summarizes the activity of restricted stock awards during the nine months ended September 30, 2025:
| Units |  | Weighted Average Grant Date Fair Value
Nonvested at January 1, 2025 | 600,938 |  |  | $ | 19.40 |
Granted | 17,812 |  |  | 20.21 |
Vested | (9,180) |  |  | 21.79 |
Forfeited | (3,508) |  |  | 17.67 |
Nonvested at September 30, 2025 | 606,062 |  |  | $ | 19.39 |
We recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $1.8 million and $2.0 million for the three months ended September 30, 2025 and 2024, respectively, and $5.2 million and $5.3 million for the nine months ended September 30, 2025 and 2024, respectively, which is included in general and administrative expenses on the consolidated statements of comprehensive income. Unrecognized compensation expense was $5.4 million at September 30, 2025. Earnings Per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating security is calculated according to dividends declared and participation rights in undistributed earnings. The weighted average unvested shares outstanding, which are considered participating securities, were 606,062 and 581,314 for the three months ended September 30, 2025 and 2024, respectively, and 602,093 and 583,247 for the nine months ended September 30, 2025 and 2024, respectively. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares as these unvested shares have nonforfeitable dividend equivalent rights. Diluted EPS is calculated by dividing the net income applicable to common stockholders for the period by the weighted average number of common and dilutive instruments outstanding during the period using the treasury stock method. For the three and nine months ended September 30, 2025 and 2024, diluted shares exclude incentive restricted stock as these awards are considered contingently issuable. 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. The computation of basic and diluted EPS is presented below (dollars in thousands, except share and per share amounts):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
NUMERATOR |  |  |  |  |  |  |
Net income | $ | 5,921 |  |  | $ | 21,318 |  |  | $ | 67,149 |  |  | $ | 61,235 |
Less: Net income attributable to restricted shares | (207) |  |  | (194) |  |  | (616) |  |  | (585) |
Less: Income from operations attributable to unitholders in the Operating Partnership | (1,205) |  |  | (4,467) |  |  | (14,033) |  |  | (12,829) |
Net income attributable to common stockholders—basic | $ | 4,509 |  |  | $ | 16,657 |  |  | $ | 52,500 |  |  | $ | 47,821 |
Income from operations attributable to American Assets Trust, Inc. common stockholders—basic | $ | 4,509 |  |  | $ | 16,657 |  |  | $ | 52,500 |  |  | $ | 47,821 |
Plus: Income from operations attributable to unitholders in the Operating Partnership | 1,205 |  |  | 4,467 |  |  | 14,033 |  |  | 12,829 |
Net income attributable to common stockholders—diluted | $ | 5,714 |  |  | $ | 21,124 |  |  | $ | 66,533 |  |  | $ | 60,650 |
DENOMINATOR |  |  |  |  |  |  |
Weighted average common shares outstanding—basic | 60,546,480 |  |  | 60,320,269 |  |  | 60,541,335 |  |  | 60,314,377 |
Effect of dilutive securities—conversion of Operating Partnership units | 16,181,537 |  |  | 16,181,537 |  |  | 16,181,537 |  |  | 16,181,537 |
Weighted average common shares outstanding—diluted | 76,728,017 |  |  | 76,501,806 |  |  | 76,722,872 |  |  | 76,495,914 |
Earnings per common share, basic | $ | 0.07 |  |  | $ | 0.28 |  |  | $ | 0.87 |  |  | $ | 0.79 |
Earnings per common share, diluted | $ | 0.07 |  |  | $ | 0.28 |  |  | $ | 0.87 |  |  | $ | 0.79 |

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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