American Assets Trust, Inc.

Good day and welcome to the American Assets Trust Third Quarter 2022 Earnings Conference Call. As a reminder, today's conference call is being recorded. All participants will be in listen-only mode. Please note that statements made on this conference call include forward-looking statements based on current expectations, which statements are subject to risks and uncertainties discussed in the company's filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements as actual events could cause the company's results to differ materially from these forward-looking statements. It is now my pleasure to introduce your host, Mr. Adam Weil, President and COO for American Assets Trust. Thank you, Mr. Weil. You may begin.

Thank you, Operator. Good morning, everyone. Welcome to American Assets Trust. third quarter 2022 earnings call. Yesterday afternoon, our earnings release and supplemental information were furnished to the SEC on Form 8K. Both are now available on the investor section of our website, AmericanAssetsTrust.com. And with that quick intro, I'll turn the call over to Ernest Rady, our chairman and CEO, to begin the discussion of our third quarter 2022 results. Ernest?

Thanks, Adam, and good morning, everyone. As you all are aware, we are seeing considerable volatility in the capital markets and uncertainty in the economy. That seems likely to continue for the next few quarters at a minimum, given persistent inflation, rising interest rates, and national and global politics, not to mention what I consider to have been excessive and unprecedented fiscal stimulus in the United States. These are times unlike any other that I've seen, and it is clear there is no monetary policy playbook for a clear and obvious course correction. But that's why I feel more than ever quality matters, quality of our assets, quality of our balance sheet, and more than anything else, quality of our people who are the stewards of our organization that work hard to optimize our long-term growth shareholder wealth creation, and investing and improving what we consider to be among the best assets in our markets for each of our asset classes. As you've likely heard about an ongoing flight to quality in commercial real estate, we know that our irreplaceable properties are sought after by tenants, not just based on being the most desirable product, but also amongst the most desirable locations amenities, access to public transportation, path of growth, and sustainability elements. Of course, we also treat our tenants very well and are flexible with tenant lease requirements, which we believe also differentiates us from our peers. Though we may be in for prolonged macroeconomic challenges, we continue to believe that these factors will continue to contribute to our relative outperformance in the long In Q3 2022, we are encouraged by operating fundamentals and earnings trajectory as we built on our solid growth in Q1 and Q2. As you'll hear in a bit, we are now estimating 2022 to achieve our highest FFO per share since our IPO over 11 years ago, higher than pre-COVID 2019 FFO per share. and that is based on optimism for continued near-term growth across all our assets. Again, our growth this year has been notwithstanding the difficult economic cycle and volatility that we are faced with today. To me, that speaks volumes about American Antitrust, and we still see a meaningful opportunity for growth today. in the ensuing years, that we will do our absolute best to capitalize on the prospective lease-up of our new developments and continued rebound of our Waikiki Beach walk retail and embassy suites, particularly as Asian tourists begin to slowly return to Oahu. Clearly, the market view of AAP based on our share price is inconsistent with our actual performance and the quality of our assets and our people, and how we have executed our strategies, and stewardship, but we'll do our best to bridge that gap. I also want to mention the Board of Directors has approved the quarterly dividend of 32 cents for the fourth quarter. The dividend will be paid on December 22nd through shareholders of record December 8th. Finally, on the development front, both La Jolla Commons III and One Beach remain on time and on budget, and we continue to remain optimistic by the leasing prospects and base requirements, but we do not have any specific news to share on that front at this time. Adam, Bob, and Steve will go into more detail on our various asset segments, financial results, and guidance updates. On behalf of all of us at American Trust, we thank you for your confidence in allowing us to manage your company and for your continued support. I'm now going to turn the call back to Adam.