Ernest Rady, chairman and CEO of American Assets Trust, Inc. (NYSE: AAT), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.
Rady outlined the ongoing leasing efforts of a premier San Diego office building, the final piece of a three-building complex that is strategically located near major transportation hubs and retail centers. Despite projecting flat or slightly increased funds from operations (FFO) for the current year, Rady anticipates significant future growth once this building is fully leased, bolstering both revenue and shareholder value.
Looking ahead to 2025, Rady highlighted plans to secure investment grade ratings, which would position American Assets Trust to capitalize on acquisition opportunities in a turbulent real estate market. He expressed eagerness for potential transactions that could benefit shareholders amidst market uncertainties. Rady also discussed the strength of the company's diversified portfolio, noting robust performance in retail and residential sectors despite challenges in certain markets like San Francisco.
Addressing financial strategies, Rady mentioned intentions to refinance debt given favorable interest rates, underscoring the company's strong liquidity with over $100 million in cash reserves. Despite recent stock price fluctuations, he affirmed the company's commitment to increasing dividends, aiming to enhance shareholder satisfaction despite market volatility.