American Assets Trust, Inc. (NYSE:AAT) Q1 2024 Earnings Call Transcript

Ravi Vaidya: Got it. Just one more here. Just speaking about Hawaii, I know that Japanese tourist hasn’t fully come back here, given weakness in the Yen, but what are you seeing from demand domestically at your property? There’s a lot of concern regarding health of the consumer, but there’s just wanting to see if that’s translated to foot traffic and visitation in Waikiki.

Ernest Rady: What’s the question? Domestic tourism to embassy.

Bob Barton: Oh, at the embassy, yes. Ravi, I think it’s still somewhat muted. We’re seeing Japanese tourism come back slowly. But if you look at the Japanese Yen, I looked at it yesterday, it was what, 157 to the dollar, and pre-COVID it was 108. So it’s difficult from a pricing power for the Japanese to come to Hawaii at this point in time. But those that can afford it. Love to come back to Waikiki. So what’s been interesting is that the U.S. west has really supported the occupancy. I mean, we had, I think what it is, I think we had 92% occupancy in the first quarter, compared to something like 82% in first quarter of the prior year. So we’re still, we still have occupancy, but we’re just not having the same tourism or the same, same guest experience.

Ernest Rady: It’s a great property and it’s going to get occupied by one way or another. So we’re glad we had that property, let me tell you.

Ravi Vaidya: Got it. Thank you so much.

Ernest Rady: Thank you, sir.

Bob Barton: Thank you, Ravi.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Ernest Rady for any closing remarks. Please go ahead.

Ernest Rady: Thank you guys for your interest in our company. You know, we do the best for you and we’ll continue to do that. And we hope we come through this with finding some additional opportunities in addition to enjoying the quality of the properties that we do have. So thank you.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.