tiprankstipranks
Trending News
More News >
American Assets (AAT)
NYSE:AAT
US Market

American Assets (AAT) AI Stock Analysis

Compare
209 Followers

Top Page

AA

American Assets

(NYSE:AAT)

Rating:72Outperform
Price Target:
$22.50
▲(10.73%Upside)
American Assets Trust exhibits solid financial performance and attractive valuation, supported by positive technical indicators. However, rising debt levels and challenges in the mixed-use portfolio present risks that temper the overall outlook.
Positive Factors
Debt Management
The company repaid $325 million of debt, indicating efforts to strengthen its financial position.
Financial Performance
AAT reported 4Q24 FFO of 55c, supported by strong retail performance with a growth of +11.4% in SSNOI.
Negative Factors
Asset Sales
Surprise Retail Asset Sale a Dilutive Event, with 9c of dilution in its 2025 forecast, stemming from the sale of Del Monte Center.
Earnings Forecast
The FY25 FFO guidance of $1.94 is below consensus estimates, suggesting potential disappointment.
Guidance
Shares are expected to underperform as its newly issued 2025 guidance range missed expectations significantly, raising additional questions regarding capital allocation, asset recycling, and future growth.

American Assets (AAT) vs. SPDR S&P 500 ETF (SPY)

American Assets Business Overview & Revenue Model

Company DescriptionAmerican 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 MoneyAmerican Assets Trust, Inc. generates revenue primarily through the acquisition, development, and management of retail centers, office buildings, multifamily residential properties, and mixed-use properties. The company earns income by leasing these spaces to a variety of tenants, including retail businesses, corporate offices, and residential renters. Lease agreements often include annual rent escalations, which contribute to revenue growth. Additionally, AAT may engage in strategic property sales or joint ventures to optimize its portfolio and maximize returns on investment. The company's focus on high-demand markets with limited supply helps maintain occupancy rates and rental income stability.

American Assets Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 11.59%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook for American Assets Trust. Highlights included strong leasing activity in both office and retail segments, strategic acquisitions, and solid liquidity management. However, challenges were noted in the mixed-use portfolio with a decline in NOI and a decrease in FFO due to recent dispositions. The sentiment is balanced with significant achievements offset by notable challenges.
Q1-2025 Updates
Positive Updates
Strong Office Leasing Activity
Office leasing activity totaled approximately 140,000 square feet in Q1, with spreads on comparable spaces increasing 8% on a cash basis and 15% on a straight-line basis. The office portfolio ended Q1 at 85.5% leased, or 87.6% excluding One Beach, with all-time high average base rents.
Retail Portfolio Performance
The retail portfolio ended the quarter 97% leased, with executed leases totaling over 158,000 square feet. Comparable space spreads increased by 13% on a cash basis and 21% on a straight-line basis.
Multifamily Portfolio Strength
The San Diego multifamily communities ended Q1 approximately 95% leased with a blended rent increase of 2%. Same-store cash NOI for San Diego multifamily increased 3.5% year-over-year.
Strategic Property Acquisition
Acquired Genesee Parts Apartments, a nearly 200-unit multifamily community in San Diego, with current 97% lease rate and significant rent increase potential.
Dividend Announcement
The Board approved a quarterly dividend of $0.34 per share for Q2.
Liquidity and Debt Management
Liquidity of approximately $544 million and no debt maturities until 2027 after repaying Term Loan B, Term Loan C, and Series C notes totaling $325 million.
Negative Updates
Mixed-use Portfolio NOI Decline
The mixed-use portfolio's NOI declined by approximately 11.6% in Q1 2025 compared to the same period in 2024, primarily driven by lower-than-anticipated occupancy at Embassy Suites Waikiki.
Reduction in FFO
First quarter 2025 FFO decreased by approximately $0.03 per share compared to Q4 2024, primarily due to the impact of the Del Monte Center disposition.
Challenges in Tourism
Decrease in domestic tourism and rate competition in Waikiki led to Embassy Suites underperformance with average paid occupancy of 85%, 6% lower than budget.
Company Guidance
During the first quarter of 2025, American Assets Trust Inc. reported a Funds From Operations (FFO) per diluted share of $0.52, aligning with their initial guidance, and a 3% increase in same-store cash Net Operating Income (NOI) compared to the same period last year. The office portfolio saw a leasing activity of about 140,000 square feet, with an 8% increase in cash basis rent spreads and a 15% increase on a straight-line basis. The retail segment demonstrated resilience, ending the quarter 97% leased with a 13% increase in cash basis rent spreads. Meanwhile, the multifamily portfolio in San Diego ended approximately 95% leased, showing a 3.5% year-over-year increase in same-store cash NOI. The mixed-use portfolio faced challenges, with Waikiki Beach Walk recording an 11% decrease in NOI due to reduced domestic tourism, though it performed well within its comp set. The company reaffirmed its full-year 2025 guidance range of $1.87 to $2.01 per FFO share, underscoring confidence in its diversified portfolio's strength and stability.

American Assets Financial Statement Overview

Summary
American Assets exhibits strong financials with solid profitability and cash flow metrics. The company's gross and net profit margins, along with healthy EBIT and EBITDA margins, reflect robust operational efficiency. The balance sheet shows a stable leverage level typical for the industry, and cash flow management is effective with a high operating cash flow to net income ratio, suggesting strong cash conversion.
Income Statement
78
Positive
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
72
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue455.77M457.85M441.16M422.65M375.83M344.57M
Gross Profit256.81M290.13M277.21M270.21M246.05M223.45M
EBITDA251.87M273.69M249.94M238.07M216.18M196.87M
Net Income80.07M56.80M50.38M43.51M28.38M27.66M
Balance Sheet
Total Assets2.97B3.27B2.98B2.99B3.02B2.82B
Cash, Cash Equivalents and Short-Term Investments143.91M425.66M82.89M49.57M139.52M137.33M
Total Debt1.69B2.03B1.71B1.65B1.65B1.41B
Total Liabilities1.82B2.15B1.83B1.80B1.81B1.56B
Stockholders Equity1.15B1.18B1.20B1.22B1.24B1.27B
Cash Flow
Free Cash Flow93.06M136.90M105.77M65.29M63.74M63.50M
Operating Cash Flow189.20M207.11M188.75M179.07M168.33M126.98M
Investing Cash Flow-64.11M-77.41M-89.89M-166.32M-312.28M-69.08M
Financing Cash Flow-112.39M213.07M-65.55M-102.70M144.42M-28.31M

American Assets Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.32
Price Trends
50DMA
19.55
Positive
100DMA
19.74
Positive
200DMA
22.58
Negative
Market Momentum
MACD
0.11
Positive
RSI
56.27
Neutral
STOCH
71.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAT, the sentiment is Positive. The current price of 20.32 is above the 20-day moving average (MA) of 20.14, above the 50-day MA of 19.55, and below the 200-day MA of 22.58, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAT.

American Assets Risk Analysis

American Assets disclosed 71 risk factors in its most recent earnings report. American Assets reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Potential losses from earthquakes, fires, floods or other natural disasters may not be fully covered by insurance. Q4, 2024

American Assets Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
UEUE
72
Outperform
$2.46B29.536.48%4.09%6.18%-72.21%
AAAAT
72
Outperform
$1.22B15.056.74%6.82%12.64%49.11%
69
Neutral
$1.29B20.916.47%4.95%4.31%39.56%
69
Neutral
$1.35B26.485.44%1.74%1.41%3.11%
69
Neutral
$1.11B10.444.51%4.58%1.54%
AHAHH
65
Neutral
$700.31M121.233.05%8.10%-12.13%-14.54%
63
Neutral
$6.93B18.26-1.91%6.91%4.65%-25.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AAT
American Assets
20.32
-0.50
-2.40%
ALEX
Alexander & Baldwin
17.81
1.73
10.76%
SAFE
Safehold
15.34
-2.66
-14.78%
ESRT
Empire State Realty
8.12
-1.37
-14.44%
AHH
Armada Hoffler Properties
6.98
-3.21
-31.50%
UE
Urban Edge Properties
18.54
0.97
5.52%

American Assets Corporate Events

Business Operations and Strategy
American Assets Engages Investors at NAREIT Conference
Neutral
Jun 4, 2025

American Assets Trust, Inc. announced that its senior management team will meet with investors and analysts on June 4, 2025, during the NAREIT REITweek Conference. The presentation materials for this event are available on the company’s website, indicating a proactive approach to investor relations and transparency.

The most recent analyst rating on (AAT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
American Assets Concludes 2025 Annual Stockholders Meeting
Neutral
Jun 2, 2025

On June 2, 2025, American Assets Trust, Inc. held its 2025 Annual Meeting of Stockholders, where key proposals were voted on. The stockholders elected five directors to serve until the next annual meeting in 2026, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved an advisory resolution on executive compensation for the fiscal year ended December 31, 2024.

The most recent analyst rating on (AAT) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.

M&A TransactionsFinancial Disclosures
American Assets Reports Q1 2025 Financial Results
Neutral
Apr 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025