American Assets Trust, Inc. Releases Tax Status of 2024 Distributions

Rhea-AI Summary

American Assets Trust (NYSE: AAT) has disclosed the tax treatment of its 2024 dividend distributions for common stock shareholders. The company distributed a total of $1.34 per share through four quarterly payments of $0.335, each paid in March, June, September, and December 2024.

Of the total distribution, $1.092388 per share qualified as taxable ordinary dividends and Section 199A dividends, while $0.247612 per share was classified as return of capital. The company reported no long-term capital gains, unrecaptured Section 1250 gains, or foreign taxes for 2024.

Positive

• Consistent quarterly dividend payments maintained at $0.335 per share throughout 2024
• Total annual dividend distribution of $1.34 per share

Negative

• 18.5% of dividend distribution classified as return of capital, potentially indicating earnings didn't fully cover dividend payments

Insights

Financial Tax Specialist

American Assets Trust's 2024 dividend tax treatment breakdown offers important insights for investors. The REIT maintained steady quarterly distributions of $0.335 per share, totaling $1.34 annually.

The tax composition reveals two key elements:

• 81.52% ($1.092388) qualifies as Section 199A dividends, which means individual investors can potentially benefit from a 20% tax deduction on this portion, effectively lowering their tax burden.
• 18.48% ($0.247612) is classified as return of capital, which is particularly advantageous for investors. This portion isn't immediately taxable but instead reduces their cost basis in the stock. Taxes on this amount are deferred until the stock is sold.

For a simplified example: if an investor owned 1,000 shares and received $1,340 in total distributions, approximately $1,092 would be taxable as ordinary income (but eligible for the Section 199A deduction), while $248 would reduce their cost basis in the stock.

The absence of capital gains distributions and the significant Section 199A dividend component aligns with typical REIT distribution patterns, as REITs are required to distribute at least 90% of their taxable income to shareholders. The return of capital component suggests the REIT's distributions partially exceeded its taxable earnings, which isn't uncommon in the industry due to non-cash deductions like depreciation.

SAN DIEGO, Jan. 21, 2025 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE: AAT) (the “Company”) announced today the tax treatment of its 2024 dividend distributions as follows:

Security Descriptions: Common Stock
CUSIP: 024013104
Ticker Symbol: AAT

Record Date	Payable Date	Total Distribution Per Share	Allocable to 2024	Taxable Ordinary Dividend	LT Capital Gain	Unrecaptured Sec. 1250 Gain	Section 199A Dividends	Return of Capital
03/07/24	03/21/24	$0.335	$0.335	$0.273097	$0.000000	$0.000000	$0.273097	$0.061903
06/06/24	06/20/24	$0.335	$0.335	$0.273097	$0.000000	$0.000000	$0.273097	$0.061903
09/05/24	09/19/24	$0.335	$0.335	$0.273097	$0.000000	$0.000000	$0.273097	$0.061903
12/05/24	12/19/24	$0.335	$0.335	$0.273097	$0.000000	$0.000000	$0.273097	$0.061903
	Total	$1.340	$1.340	$1.092388	$0.000000	$0.000000	$1.092388	$0.247612

The Company did not incur any foreign taxes during 2024. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of the Company’s dividend distributions and the information contained herein.

About American Assets Trust, Inc.

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation’s most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes. For additional information, please visit www.americanassetstrust.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; investment returns from our developed properties may be less than anticipated; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; system failures or security incidents through cyber attacks; the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT, for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs. While forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission. The company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Source: American Assets Trust, Inc.

Investor and Media Contact:

American Assets Trust

Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607

FAQ

What was AAT's total dividend distribution per share for 2024?

American Assets Trust's total dividend distribution for 2024 was $1.34 per share, paid in four quarterly installments of $0.335 each.

How much of AAT's 2024 dividend qualified as ordinary taxable dividend?

Of the total distribution, $1.092388 per share qualified as taxable ordinary dividend and Section 199A dividend.

What portion of AAT's 2024 dividend was return of capital?

The return of capital portion was $0.247612 per share, representing 18.5% of the total distribution.

What were the dividend payment dates for AAT in 2024?

AAT paid dividends on March 21, June 20, September 19, and December 19, 2024.

Did AAT distribute any long-term capital gains in 2024?

No, AAT did not distribute any long-term capital gains or unrecaptured Section 1250 gains in 2024.