American Assets (AAT) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 6.75%
• Average Volume (3M): 384.30K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.70
• Revenue Growth: 5.95%
• EPS Growth: 5.06%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.07
• Shares Outstanding: 61,152,542
• 10 Day Avg. Volume: 514,220
• 30 Day Avg. Volume: 384,298
• PEG Ratio: -2.46
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 11.57
• Enterprise Value/Market Cap: 2.61
• Enterprise Value/Revenue: 7.01
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: 13.19
• 1Y Price Target: $21.00
• Price Target Upside: 7.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.41
• Revenue Forecast (FY): $430.80M

• Rating: 59 Neutral
• Price Target: $20.00 ▲(2.30% Upside)

The overall stock score reflects a mix of solid financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's high leverage and declining revenue are significant risks, but strong leasing performance and increased guidance provide some optimism.

Positive Factors

Leasing Performance

High leasing rates and increasing rent spreads indicate strong demand for AAT's retail properties, supporting stable revenue streams and long-term growth.

Guidance Increase

Increased guidance reflects management's confidence in operational performance, suggesting robust business fundamentals and potential for future earnings growth.

Cash Flow Generation

Strong cash flow generation relative to net income indicates efficient operations, providing financial flexibility and supporting ongoing investments and debt management.

Negative Factors

High Leverage

Elevated leverage levels can constrain financial flexibility and increase risk, necessitating focus on debt reduction to ensure long-term financial stability.

Multifamily Portfolio Challenges

Declining NOI in the multifamily segment due to supply headwinds may pressure revenue and profitability, requiring strategic adjustments to address market conditions.

Hawaii Hotel Performance

Weak performance in the hotel segment due to softer tourism impacts revenue diversification, highlighting the need for strategic initiatives to boost occupancy and rates.

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 generates revenue primarily through leasing its properties to tenants, which includes retail stores, office tenants, and residential renters. The company earns rental income from long-term leases and short-term leases, depending on the property type. Additionally, American Assets may generate income from property management services offered to third-party owners. The company's revenue model also includes potential gains from property sales and development projects, enhancing its overall profitability. Key partnerships with tenants, local governments, and investment firms can also contribute to its earnings by providing opportunities for new developments and joint ventures.

American Assets Financial Statement Overview

Summary

American Assets demonstrates solid profitability and operational efficiency, with strong margins and cash flow generation. However, the company faces challenges with declining revenue and high leverage, which could impact future growth and financial stability. Continued focus on revenue growth and debt management will be crucial.

Income Statement

American Assets shows a stable gross profit margin around 61.6% in TTM, slightly down from previous years. The net profit margin improved to 13.99% in TTM, indicating better cost management despite a revenue decline of 2.92%. EBIT and EBITDA margins remain strong, though slightly decreased, reflecting operational efficiency. However, the negative revenue growth rate is a concern.

Balance Sheet

The company has a high debt-to-equity ratio of 1.44 in TTM, indicating significant leverage, which is common in the REIT industry but poses a risk. Return on equity improved slightly to 5.20%, showing better utilization of equity. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Operating cash flow to net income ratio is strong at 2.27, indicating good cash generation relative to net income. However, free cash flow growth is negative at -4.98%, and the free cash flow to net income ratio is moderate at 0.55, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.58M	457.85M	441.16M	422.65M	375.83M	344.57M
Gross Profit	270.76M	290.13M	277.21M	270.21M	246.05M	223.45M
EBITDA	233.79M	254.66M	249.94M	238.07M	212.22M	196.87M
Net Income	61.48M	56.80M	50.38M	44.15M	28.94M	-51.14M
Balance Sheet
Total Assets	2.94B	3.27B	2.98B	2.99B	3.02B	2.82B
Cash, Cash Equivalents and Short-Term Investments	138.71M	425.66M	82.89M	49.57M	139.52M	137.33M
Total Debt	1.69B	2.03B	1.71B	1.67B	1.68B	1.44B
Total Liabilities	1.83B	2.15B	1.83B	1.80B	1.81B	1.56B
Stockholders Equity	1.17B	1.18B	1.20B	1.22B	1.24B	1.27B
Cash Flow
Free Cash Flow	93.35M	136.90M	105.77M	65.29M	63.74M	63.50M
Operating Cash Flow	167.19M	207.11M	188.75M	179.07M	168.33M	126.98M
Investing Cash Flow	-30.26M	-77.41M	-89.89M	-166.32M	-312.28M	-69.08M
Financing Cash Flow	-531.22M	213.07M	-65.55M	-102.70M	144.42M	-28.31M

American Assets Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.55
• 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 Neutral. The current price of 19.55 is above the 20-day moving average (MA) of 19.45, below the 50-day MA of 19.98, and below the 200-day MA of 19.76, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AAT.

American Assets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEX	76 Outperform	$1.13B	15.42	7.32%	5.68%	-3.94%	64.29%
SAFE	69 Neutral	$955.79M	8.37	4.82%	5.15%	1.30%	-6.14%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.25B	35.67	3.80%	1.88%	0.45%	-24.85%
AAT	59 Neutral	$1.18B	19.02	5.29%	6.75%	5.95%	5.06%
AHH	56 Neutral	$510.58M	47.12	4.09%	9.72%	-39.94%	―
GNL	52 Neutral	$1.72B	―	-12.53%	10.66%	-28.94%	-28.24%

American Assets Corporate Events

American Assets Trust Earnings Call Highlights Mixed Results

American Assets Trust’s recent earnings call painted a mixed picture, with strong leasing performances in the office and retail segments and an increased dividend, but also highlighted significant challenges in the multifamily and hotel segments. The company also acknowledged the need to address elevated leverage levels.

American Assets Trust Reports Q3 2025 Financial Results

American Assets Trust, Inc. is a real estate investment trust (REIT) based in San Diego, California, specializing in the acquisition, improvement, development, and management of premier office, retail, and residential properties across the United States, particularly in high-barrier-to-entry markets.

American Assets Reports Q3 2025 Financial Results

American Assets Trust, Inc. reported its financial results for the third quarter of 2025, showing a net income of $4.5 million for the quarter and $52.5 million for the nine months ending September 30, 2025. The company increased its Funds from Operations (FFO) guidance for 2025, reflecting a positive outlook despite a decrease in FFO compared to the previous year due to factors such as increased interest expenses and lower occupancy rates in certain segments. The company also reported significant leasing activity, with 306,500 square feet of office and retail space leased during the quarter.

The most recent analyst rating on (AAT) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.

American Assets Trust Faces Financial Challenges Amid Tariff-Induced Risks

American Assets Trust faces significant business risks due to changes in trade policies, including the imposition of tariffs. These tariffs could negatively impact the operations and profitability of their tenants, affecting their ability to meet lease obligations. Additionally, tariffs on construction materials could increase costs and delay development projects, further straining financial performance. Consequently, the company’s ability to lease space and manage operating costs may be adversely affected, posing a threat to its overall financial condition.