American Assets Trust, Inc.

Good day, ladies and gentlemen, and welcome to the Q2 2019 American Assets Trust, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session, and instructions will be given at that time. If anyone should require assistance during the call, you may press star, then zero on your touchtone telephone. As a reminder, this call is being recorded. It is now my pleasure to introduce Senior Vice President, General Counsel, Adam Weil.

Good morning. I'd like to thank everyone for joining us today for American Asset Trust 2019 Second Quarter Earnings Conference Call. Joining me on the call are Ernest Rady and Bob Barton. These and other members of our management team are available to take your questions at the conclusion of our prepared remarks. Our 2019 Second Quarter Supplemental Disclosure Package provides a significant amount of valuable information with respect to the company's operating and financial performance. The document is currently available on our website. Certain matters discussed on this call may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any annualized or projected information, as well as statements referring to expected or anticipated events or results. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, our future operations and our actual performance may differ materially from the information contained in our forward-looking statements. and we can give no assurance that these expectations will be attained. Risks inherent in these assumptions include but are not limited to future economic conditions, including interest rates, real estate conditions, and the risks and costs of construction. Earnings release and supplemental reporting package that we issued yesterday in our annual report filed in Form 10-K and our other financial disclosure documents provide a more in-depth discussion of risk factors that may affect our financial conditions and results of operations. Additionally, this call will contain non-GAAP financial information, including funds from operations, or FFO, earnings before interest, taxes, depreciation and amortization, or EBITDA, and net operating income, or NOI. American Assets is providing this information as a supplement to information prepared in accordance with generally accepted accounting principles. Explanations of such non-GAAP items and reconciliations to net income are contained in the company's supplemental operating and financial data for the second quarter of 2019. furnished to the Securities and Exchange Commission, and this information is available on the company's website at www.americanassetstrust.com. I'll now turn the call over to our Chairman, President, and CEO, Ernest Rady, to begin our discussion of second quarter results. Ernest?

Thank you, Adam. That was very eloquent. And good morning, everyone. Thank you for joining American Assets Trust second quarter 2019 earnings call. We continue to make great progress on all fronts as we continue to focus our efforts on earnings growth combined with growth and asset value for our shareholders. We saw a lot of positive developments during the second quarter of 2019 and we remain very optimistic going forward. First of all, I want to welcome all of our new stockholders and we sincerely appreciate your confidence and support. The whole transaction turned out well for everyone. Existing stockholders got enhanced marketability and another investment property for growth. Our new stockholders got immediate appreciation. So far, we've had better than expected leasing success with our recent acquisition of La Jolla Commons as we were very fortunate to be able to source and sign a new 73,000 square foot lease within two weeks of closing. Bob will talk more about the details of the acquisitions and impact of the recent lease that was signed. Secondly, at Oregon Square, we have completed the modern renovation of the 830 building and increased the square footage from 33,000 square feet to 55,000 square feet. The 830 building is now 100% leased to WeWork at current market rates, slightly above our initial estimates. We are now proceeding to do a similar modern renovation on the adjacent 710 buildings at Oregon Square, and prospective tenants of Oregon began indicating interest. Also, during the second quarter, our sustainability achievements included Haslow on 8th in Portland being designated as the first in the world to receive neighborhood LEED green certification. The Landmark at One Market being designated as the first green USA certification in San Francisco. BREEAM is B-R-E-E-A-M. We filed our first comprehensive sustainability report with G-R-E-S-B. We posted our net asset value internal estimate of $51.50 a share on our website. And Bob will discuss that in more detail later. In our view, the office markets in San Francisco and Bellevue, Washington remain strong. The Safeway store at White Kelly Center remains on track to open in the fourth quarter of 19. We continue to reinvest and improve our existing assets and remain optimistic about the future of this portfolio and our ability to narrow the price to net asset value gap. On behalf of all of us at American Assets Trust, we thank you for your confidence in allowing us to manage your company and we look forward to your continued support. I'll now turn it over to Bob Barton, our Executive Vice President of CDFO. Bob, please.