American Assets (AAT) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 6.77%
• Average Volume (3M): 437.25K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.87
• Revenue Growth: 12.64%
• EPS Growth: 49.11%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Diversified
• EPS (TTM): 0.70
• Shares Outstanding: 61,134,730
• 10 Day Avg. Volume: 327,710
• 30 Day Avg. Volume: 437,254
• PEG Ratio: 0.36
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

American Assets Trust exhibits a strong overall position with robust financial performance and effective cash management. The technical analysis reflects a bearish trend, but the valuation is attractive with a substantial dividend yield. The earnings call and recent corporate events highlight strategic strengths and resilience in leasing activities. While there are challenges in the mixed-use segment, the overall outlook remains positive, supported by a balanced financial strategy and market adaptability.

Positive Factors

Debt Repayment

The company repaid $325 million of debt, indicating efforts to strengthen its financial position.

Lease Improvement

AAT signed 18 comparable retail leases in 4Q24 at a +6.5% cash spread, which is an improvement over the T-4 quarter average of +4.5%.

Retail Performance

AAT reported 4Q24 FFO of 55c, supported by strong retail performance with a growth of +11.4% in SSNOI.

Negative Factors

Earnings Disappointment

The FY25 FFO guidance of $1.94 is below consensus estimates, suggesting potential disappointment.

Guidance Miss

Shares are expected to underperform as its newly issued 2025 guidance range missed expectations significantly.

Office Occupancy

Office total occupancy decreased to 85.0%, reflecting a decline in space utilization.

American Assets Business Overview & Revenue Model

Company Description

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 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, Oregon, Washington, Texas and Hawaii. The company's office portfolio comprises approximately 3.4 million rentable square feet, and its retail portfolio comprises approximately 3.1 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 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.

How the Company Makes Money

American Assets Trust, Inc. generates revenue primarily through the leasing of its diversified portfolio of real estate assets. The company collects rental income from tenants occupying its retail, office, and residential properties. This rental income forms the core of AAT's revenue stream. Additionally, the company may engage in property development and redevelopment projects, enhancing the value and appeal of its assets, which can lead to increased rental rates and occupancy levels. The trust also benefits from strategic partnerships and joint ventures that expand its market reach and portfolio diversity, contributing to its financial stability and growth.

American Assets Financial Statement Overview

Summary

American Assets demonstrates strong financial health with solid profitability margins, effective leverage management, and robust cash flow generation. The company shows consistent revenue growth and stable financial metrics, positioning it well within the REIT industry. Potential risks include leverage typical for the industry, but overall the financial strategy is balanced and sustainable.

Income Statement

American Assets shows solid profitability with consistent gross and net profit margins. The TTM data reveals a gross profit margin of 56.36% and a net profit margin of 17.57%, both indicating strong operational efficiency. Revenue growth has been moderate year-over-year, signaling steady expansion. The EBIT and EBITDA margins also reflect healthy profitability, with TTM figures of 37.45% and 55.27% respectively, highlighting operational strength.

Balance Sheet

The company maintains a strong equity position, with a debt-to-equity ratio of 1.46, indicating a balanced leverage level typical for the REIT industry. The equity ratio stands at 38.81%, reflecting a stable capital structure. Return on Equity (ROE) at 6.95% for TTM suggests moderate returns on shareholder investments, consistent with industry expectations.

Cash Flow

American Assets has demonstrated robust cash flow management. The TTM period shows a high operating cash flow to net income ratio of 1.90, indicating effective conversion of net income into cash. Free cash flow remains strong, with a free cash flow to net income ratio of 1.16, underscoring solid cash generation relative to earnings. The company also shows positive free cash flow growth, evidencing effective capital expenditure management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
455.77M	457.85M	441.16M	422.65M	375.83M	344.57M
	Gross Profit
256.81M	290.13M	277.21M	270.21M	246.05M	223.45M
	EBIT
170.62M	129.20M	121.75M	114.73M	99.87M	88.58M
	EBITDA
251.87M	273.69M	249.94M	238.07M	216.18M	196.87M
	Net Income Common Stockholders
80.07M	56.80M	50.38M	43.51M	28.38M	27.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
143.91M	425.66M	82.89M	49.57M	139.52M	137.33M
	Total Assets
2.97B	3.27B	2.98B	2.99B	3.02B	2.82B
	Total Debt
1.69B	2.03B	1.71B	1.65B	1.65B	1.41B
	Net Debt
-143.91M	1.61B	1.63B	1.60B	1.51B	1.27B
	Total Liabilities
1.82B	2.15B	1.83B	1.80B	1.81B	1.56B
	Stockholders Equity
1.15B	1.18B	1.20B	1.22B	1.24B	1.27B
Cash Flow		Free Cash Flow
93.06M	136.90M	105.77M	65.29M	63.74M	63.50M
	Operating Cash Flow
189.20M	207.11M	188.75M	179.07M	168.33M	126.98M
	Investing Cash Flow
-64.11M	-77.41M	-89.89M	-166.32M	-312.28M	-69.08M
	Financing Cash Flow
-112.39M	213.07M	-65.55M	-102.70M	144.42M	-28.31M

American Assets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAT, the sentiment is Negative. The current price of 19.32 is above the 20-day moving average (MA) of 19.22, below the 50-day MA of 19.38, and below the 200-day MA of 23.71, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AAT.

American Assets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAT	73 Outperform	$1.23B	15.21	6.74%	6.77%	12.64%	49.11%
AHH	73 Outperform	$736.79M	127.54	3.05%	10.38%	-12.13%	-14.54%
UE	73 Outperform	$2.42B	29.06	6.48%	3.83%	6.18%	-72.21%
ALEX	67 Neutral	$1.29B	20.86	6.47%	5.04%	4.31%	39.56%
ESRT	64 Neutral	$1.28B	25.09	5.44%	1.84%	1.41%	3.11%
SAFE	60 Neutral	$1.11B	10.46	4.51%	4.57%	1.54%	―
Sector *	60 Neutral	$2.82B	10.38	0.33%	8508.19%	5.98%	-17.49%

American Assets Corporate Events

American Assets Reports Q1 2025 Financial Results

American Assets Trust, Inc. reported its financial results for the first quarter of 2025, highlighting a net income of $42.5 million, or $0.70 per diluted share, and a 10% year-over-year decrease in Funds from Operations (FFO) per diluted share to $0.52. The company completed the sale of Del Monte Center for $123.5 million and acquired Genesee Park for $67.9 million, while leasing significant office and retail space with notable rent increases. Despite a decrease in FFO due to prior litigation income and increased interest expenses, the company saw improvements in its same-store retail segment and achieved a gain from the sale of Del Monte Center.