american assets trust inc (AAT) Key Developments
American Assets Trust Seeks Acquisitions
Nov 5 14
American Assets Trust, Inc. (NYSE:AAT) is seeking acquisitions. John Chamberlain, President and Chief Executive Officer of American Assets Trust, said, “Our acquisition and venture efforts remain in full swing.” Bob Barton, Executive Vice President and Chief Financial Officer of American Assets Trust, said, “Although the Company's balance sheet is strong, and provides ample capacity to fund its in-process and existing development, we thought it was prudent to raise the additional cash on the balance sheet during the third quarter because it allows the Company to maintain financial flexibility as we continue to pursue three things. First is accretive developments within our existing pipeline. Second is accretive and opportunistic acquisitions.”
American Assets Trust, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Revised Earnings Guidance for 2014; Provides Earnings Guidance for 2015; Declares Dividend on Common Stock for the Quarter Ending December 31, 2014, Payable on December 26, 2014
Nov 4 14
American Assets Trust, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, total revenue was $67.343 million against $65.318 million a year ago. Operating income was $23.036 million against $21.441 million a year ago. Net income attributable to the company's stockholders was $6.417 million or $0.15 per diluted share against $4.223 million or $0.11 per diluted share a year ago. FFO attributable to common stock and common units was $25.417 million or $0.42 per diluted share against $22.818 million or $0.39 per diluted share a year ago. Maintenance capital expenditures were $5.640 million against $4.839 million a year ago. The increase in quarterly FFO was mostly attributable to 3 things: the Embassy's - first was the Embassy Suites hotel in Hawaii added approximately $0.035 of FFO due to the seasonality of the hotel from their peak summer season. Secondly, the retail portfolio added approximately $1.4 of FFO due primarily to the higher percentage ramps at Alamo, Del Monte and Waikiki Beach Walk. The office portfolio added approximately $0.01 of FFO, primarily due to higher rents and parking income at City Center Bellevue and higher rents at the Lloyd District from new tenants. And lastly, other income decreased FFO by approximately $2.8 of FFO as a result of the nonrecurring termination fee income net of acquisition due diligence costs that the company received in second quarter related to a break fee that the company had built into a binding letter of intent, combined with the increase in the tax provision in the third quarter, primarily for the Embassy Suites hotel that resides within taxable REIT subsidiary.
For the nine months, total revenue was $193.522 million against $190.412 million a year ago. Operating income was $61.143 million against $40.694 million a year ago. Net income attributable to the company's stockholders was $14.732 million or $0.35 per diluted share against $10.538 million or $0.27 per diluted share a year ago. FFO attributable to common stock and common units was $71.905 million or $1.20 per diluted share against $66.036 million or $1.15 per diluted share a year ago. Maintenance capital expenditures were $8.956 million against $4.928 million a year ago.
The company increased its guidance for full year of 2014 FFO per diluted share to a range of $1.59 to $1.61 per share from the prior range of $1.56 to $1.62 per share, an increase of 1% over the prior midpoint. The company also expects net income in the range of $30.116 million to $31.355 million from previous range of $27.296 million to $30.863 million. FFO attributable to common stock and units expected to be in the range of $95.788 million to $97.027 million from previous range of $93.064 million to $96.631 million. The company is still anticipating full year of 2014 retail same-store growth to be down approximately 1.3%, primarily as a result of the Foodland vacancy at Waikele Shopping Center in Hawaii, as expected. For the full year, the company anticipates office same-store cash NOI to be up 5.9%. Additionally, operational capital expenditures are expected to finish the year at approximately $25 million to $28 million, with AFFO or FAD coming in a range of $1.16 to $1.22 per share. The company is below its original estimate of CapEx in 2014 due to the following factors: room renovation project at Embassy Suites came in considerably below budget due to using in-house construction management expertise for the design and purchase of the raw materials instead of outsourcing to third-party construction management; The company also had factored in a 25% premium for materials being transported to Hawaii, combined with a higher construction cost from all of the construction activity taking place in Waikiki.
The company is providing its initial guidance for a full year of 2015. FFO per diluted share expected to be in a range of $1.65 to $1.73, an increase of 6% from the 2014 annual guidance midpoint. Excluding the termination income from 2014 results, anticipated 2015 FFO per share growth is 7.6%, which is an increase of $0.12 to 2015 midpoint of $1.69. Net income is expected to be in the range of $44.080 million to $49.070 million. FFO attributable to common stock and units expected to be in the range of $102.153 million to $107.143 million. The company anticipates a reduction in interest expense of approximately $4.3 million from higher capitalized interest from ongoing developments and lower interest costs on the 2014 and 2015 CMBS maturities, which are being refinanced with unsecured private placement notes. Operational CapEx or capital expenditures are expected to be in the range of $33 million to $37 million. AFFO and FAD will be in the range of approximately $1.16 to $1.23 per share.
The company has declared a dividend on its common stock of $0.2325 per share for the quarter ending December 31, 2014, which is a 6% increase over the prior quarterly dividend of $0.22 per share. The dividend will be paid on December 26, 2014 to stockholders of record on December 12, 2014.
American Assets Trust, Inc. and American Assets Trust, L.P. Announce Issuance of $150 Million of 4.04% Senior Guaranteed Notes, Series A, Due October 31, 2021
Oct 31 14
American Assets Trust, Inc. and American Assets Trust, L.P. announced the closing of its first privately placed debt offering of $150,000,000 of seven-year senior guaranteed notes by the Operating Partnership. The Series A Notes are unsecured, will pay a fixed interest rate of 4.04% and are due on October 31, 2021. Prior to closing, the Operating Partnership entered into a one-month forward-starting interest swap to reduce the interest rate variability exposure of the projected interest cash outflows under the then-prospective private placement of the Series A Notes. As a result, net of the settlement of the forward-starting interest swap, the fixed interest rate in accordance with GAAP for the Series A Notes is approximately 3.88% per annum, through maturity. The company intends to use the proceeds from the private placement of the Series A Notes to refinance existing secured indebtedness and for other general corporate purposes. Additionally, in connection with and concurrent with the issuance of the Series A Notes, the company and Operating Partnership entered into a Note Purchase Agreement that also provides for the future private placement by the Operating Partnership of (i) $100,000,000 of ten-year senior guaranteed notes and (ii) $100,000,000 of ten-year senior guaranteed notes. The Series B Notes are unsecured, will pay a fixed interest rate of 4.45% and are due on February 2, 2025. The Series C Notes are unsecured, will pay a fixed interest rate of 4.50% and are due on April 1, 2025. The Series B Notes are expected to be issued on February 2, 2015 and the Series C Notes are expected to be issued on April 1, 2015, each subject to customary closing conditions.
American Assets Trust, Inc., Q3 2014 Earnings Call, Nov 05, 2014
Oct 3 14
American Assets Trust, Inc., Q3 2014 Earnings Call, Nov 05, 2014
American Assets Trust, Inc. to Report Q3, 2014 Results on Nov 04, 2014
Oct 3 14
American Assets Trust, Inc. announced that they will report Q3, 2014 results After-Market on Nov 04, 2014