American Assets (AAT)
NYSE:AAT
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American Assets
(NYSE:AAT)
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Rating:61Neutral
Price Target:
$22.00
â–²(5.72% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by mixed financial quality: solid property-level margins and positive cash generation are offset by sharp net income/ROE compression and a debt-heavy balance sheet. Technicals add support with an uptrend and healthy (not overbought) momentum. Valuation is a headwind due to the very high P/E, partially offset by the attractive dividend yield, while the earnings call was moderately positive on guidance and liquidity but tempered by leverage and payout ratio risks.
Positive Factors
Strong property-level margins & cash generation
Consistently high property-level gross and EBITDA margins, together with positive operating and free cash flow, provide durable cash generation to fund leasing costs, dividends and selective redevelopments. This margin base cushions earnings volatility from non-operating items and supports long-term asset reinvestment.
Negative Factors
Elevated leverage metrics
High leverage relative to the company's long-run target constrains financial flexibility and increases refinancing and interest-rate risk. With net debt/EBITDA near 6.9x and debt/equity ~1.5x, capital allocation must prioritize de-levering or face higher spread sensitivity, limiting capacity for acquisitions or aggressive redevelopment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong property-level margins & cash generation
Consistently high property-level gross and EBITDA margins, together with positive operating and free cash flow, provide durable cash generation to fund leasing costs, dividends and selective redevelopments. This margin base cushions earnings volatility from non-operating items and supports long-term asset reinvestment.
Read all positive factors
American Assets (AAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield7.31%
Average Volume (3M)413.53K
Price to Earnings (P/E)54.4
Beta (1Y)0.78
Revenue Growth-12.40%
EPS Growth-77.27%
CountryUS
Employees230
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.30
Shares Outstanding61,390,938
10 Day Avg. Volume544,595
30 Day Avg. Volume413,529
Financial Highlights & Ratios
PEG Ratio-7.55
Price to Book (P/B)1.00
Price to Sales (P/S)2.63
P/FCF Ratio12.08
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue6.51
Enterprise Value/Gross Profit10.71
Enterprise Value/Ebitda12.26
Forecast
1Y Price Target
$19.00Price Target Upside-8.70% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.43
Revenue Forecast (FY)$446.09M
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, developi...
How the Company Makes Money
AAT primarily makes money by generating rental and related property income from its real estate portfolio. Key revenue streams include (1) base rents paid by office and retail tenants under lease agreements; (2) multifamily rental income from resi...
American Assets Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: management demonstrated clear balance sheet progress (upsized revolver, ~$518M liquidity), solid leasing traction in office (notably spec suites), strong retail and multifamily occupancy and record retail rents, and maintained the dividend while reaffirming full-year FFO guidance. Offsetting these positives are elevated leverage and a high Q1 payout ratio, flat office NOI, a notable Q4 Genentech vacancy that lowers year-end occupancy expectations, and softness at the Waikiki hotel driven by rate pressure and tourism headwinds. Overall, the positives (liquidity, leasing momentum, retail/multifamily stability, guidance reaffirmation) modestly outweigh the near-term challenges and execution risks.Positive Updates
FFO and Net Income Performance
Reported Q1 2026 FFO per diluted share of $0.51 (up $0.04 vs. Q1 2025) and net income attributable to common stockholders of $0.08 per share.
Negative Updates
Elevated Dividend Payout Ratio
First quarter payout ratio ≈111%, well above historical IPO-era range of ~65%–85%; management attributes elevation to timing of leasing-related capital (TIs, leasing commissions and spec suite investment) tied to signed leases.
Read all updates
Q1-2026 Updates
Positive
Negative
FFO and Net Income Performance
Reported Q1 2026 FFO per diluted share of $0.51 (up $0.04 vs. Q1 2025) and net income attributable to common stockholders of $0.08 per share.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 FFO guidance of $1.96–$2.10 per share (midpoint $2.03) after reporting Q1 FFO of $0.51 and net income of $0.08; liquidity was ~$518M (cash $118M and $400M revolver available) following an April 1 recast that upsized the revolver to $500M and extended the $100M term loan to 4/1/2030, giving $600M total unsecured capacity and no debt maturities until 2027; leverage metrics: net debt/EBITDA 6.9x (long‑term target ≤5.5x) and interest/fixed‑charge coverage 3.0x; the Board approved a $0.34 quarterly dividend (payable June 18, record June 4) with a Q1 payout ratio of ~111% expected to moderate to the low‑/mid‑90% range for the remaining quarters and land in the upper‑90% range for the year (long‑run 65–85%); management noted ~250k sq ft of signed‑but‑not‑commenced office (about $0.07 of 2026 guidance, ~$5M+), Q1 office leasing of ~237k sq ft with comparable cash leasing spreads of 4.8% and straight‑line spreads of 10.6%, office portfolio 84.5% leased (same‑store 86%), retail 98% leased with average base rent $30/sf, multifamily same‑store NOI +3% and ~96% leased (San Diego 98%, Hassalo 93%), and Waikiki RevPAR $305 (+2%), ADR $332 (‑6%) and NOI ≈$2.4M; guidance excludes future acquisitions/dispositions or refinancing and could trend toward the top end if retail collections, office lease commencements, multifamily performance, or tourism improve.American Assets Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
57
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 438.19M | 436.20M | 457.85M | 441.16M | 422.65M | 375.83M |
| Gross Profit | 266.23M | 266.61M | 290.13M | 277.21M | 270.21M | 246.05M |
| EBITDA | 232.53M | 277.57M | 273.69M | 249.94M | 238.30M | 212.22M |
| Net Income | 22.40M | 71.37M | 72.82M | 64.69M | 55.88M | 36.59M |
Balance Sheet | ||||||
| Total Assets | 2.90B | 2.92B | 3.27B | 2.98B | 2.99B | 3.02B |
| Cash, Cash Equivalents and Short-Term Investments | 118.34M | 129.36M | 425.66M | 82.89M | 49.57M | 139.52M |
| Total Debt | 1.69B | 1.71B | 2.03B | 1.71B | 1.67B | 1.68B |
| Total Liabilities | 1.83B | 1.83B | 2.15B | 1.83B | 1.80B | 1.81B |
| Stockholders Equity | 1.14B | 1.15B | 1.18B | 1.20B | 1.22B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 92.59M | 94.86M | 136.90M | 105.77M | 65.29M | 63.74M |
| Operating Cash Flow | 168.84M | 167.12M | 207.11M | 188.75M | 179.07M | 168.33M |
| Investing Cash Flow | -86.43M | -30.52M | -77.41M | -89.89M | -166.32M | -312.28M |
| Financing Cash Flow | -107.98M | -432.90M | 213.07M | -65.55M | -102.70M | 144.42M |
American Assets Technical Analysis
Positive
20.81
Price Trends
18.96
Positive
18.66
Positive
18.88
Positive
Market Momentum
0.42
Negative
75.81
Negative
99.07
Negative
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 20.81 is above the 20-day moving average (MA) of 19.04, above the 50-day MA of 18.96, and above the 200-day MA of 18.88, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 75.81 is Negative, neither overbought nor oversold. The STOCH value of 99.07 is Negative, 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 73 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 0 New Risks
American Assets Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $925.41M | 97.10 | 3.11% | 2.16% | 1.53% | -31.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.04B | 8.42 | 4.75% | 5.13% | 4.14% | 7.22% | |
61 Neutral | $1.26B | 54.41 | 1.96% | 7.31% | -12.40% | -77.27% | |
58 Neutral | $1.95B | 9.78 | -12.68% | 10.29% | -38.47% | -26.88% |
* Real Estate Sector Average
AAT
American Assets
20.58
2.92
16.51%
SAFE
Safehold
14.49
-0.13
-0.88%
ESRT
Empire State Realty
5.41
-1.78
-24.79%
GNL
Global Net Lease
9.17
2.34
34.32%
American Assets Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
American Assets Trust Reports Q1 2026 Results and Outlook
Neutral
Apr 28, 2026
American Assets Trust reported first quarter 2026 results on April 28, 2026, posting net income available to common stockholders of $5.1 million, or $0.08 per diluted share, and funds from operations of $0.51 per diluted share, slightly below the ...
Business Operations and StrategyPrivate Placements and Financing
American Assets Amends Credit Facility, Expands Borrowing Capacity
Positive
Apr 1, 2026
On April 1, 2026, American Assets Trust, Inc. and its operating partnership amended and restated their credit agreement, boosting total unsecured borrowing capacity to $600 million, including a larger $500 million revolving credit facility and a $...
Business Operations and StrategyPrivate Placements and Financing
American Assets Trust Expands Credit Facility and Liquidity
Positive
Apr 1, 2026
On April 1, 2026, American Assets Trust, Inc. and its operating partnership entered into a Fourth Amended and Restated Credit Agreement, boosting total unsecured borrowing capacity to $600 million, including an expanded $500 million revolving cred...
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.