American Assets Trust, Inc. (NYSE:AAT) Q3 2023 Earnings Call Transcript October 25, 2023 11:00 AM ET

Company Participants

Adam Wyll - President & Chief Operating Officer

Ernest Rady - Chairman & Chief Executive Officer

Robert Barton - EVP, Treasurer & Chief Financial Officer

Steve Center - SVP, Office Properties

ABIGAIL REX - Vice President, Multifamily, San Diego

Conference Call Participants

Ravi Vaidya - Mizuho

Adam Kramer - Morgan Stanley

Operator

Good day and welcome to the American Assets Trust Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, today's event is being recorded.

I would now like to turn the conference over to Adam Wyll, President and Chief Operating Officer. Please go ahead.

Adam Wyll

Thank you. Good morning, everyone. Welcome to American Assets Trust third quarter 2023 earnings call. Yesterday afternoon, our earnings release and supplemental information were furnished to the SEC on Form 8-K. Both are now available on the Investors 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 2023 results. Ernest?

Ernest Rady

Thanks, Adam, and good morning, everyone. During these times when the economic and business landscapes are so unpredictable, it has become imperative for us to focus on what we can control, including how we can adapt to meeting the evolving market demands in such a turbulent economy. Along these lines, we have a history of overcoming challenges with resilience, and we are confident that our high-quality operating platform and real estate portfolio will remain steadfast in spite of market adversely.

As we face persistent inflation, higher for longer federal funds rates, much tighter credit conditions, and truly unfortunate geopolitical instability in war. We are certainly not naive to the fact that the office sector, in particular, seems to be painted with a broad negative brush. It may take time for the office sector to see a meaningful bifurcation of performance, and value between the more modernized and amenities office projects like ours versus that of commodity office. But we are confident that we'll be on the right side of that equation. And not to mention, as we see replacement costs for high of the property like ours soaring and likely to continue to climb over the years to come, I think that today's real estate prices for premier properties will be a bargain in the future.