American Assets (AAT) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 6.82%
• Average Volume (3M): 510.12K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.82
• 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: 638,849
• 30 Day Avg. Volume: 510,116
• PEG Ratio: 0.69
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.37
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 12.42
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: $20.00
• Price Target Upside: -1.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• 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 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 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 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

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
EBITDA	251.87M	273.69M	249.94M	238.07M	216.18M	196.87M
Net Income	80.07M	56.80M	50.38M	43.51M	28.38M	27.66M
Balance Sheet
Total Assets	2.97B	3.27B	2.98B	2.99B	3.02B	2.82B
Cash, Cash Equivalents and Short-Term Investments	143.91M	425.66M	82.89M	49.57M	139.52M	137.33M
Total Debt	1.69B	2.03B	1.71B	1.65B	1.65B	1.41B
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: Positive
• Last Price: 20.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UE	72 Outperform	$2.46B	29.53	6.48%	4.09%	6.18%	-72.21%
AAT	72 Outperform	$1.22B	15.05	6.74%	6.82%	12.64%	49.11%
ALEX	69 Neutral	$1.29B	20.91	6.47%	4.95%	4.31%	39.56%
ESRT	69 Neutral	$1.35B	26.48	5.44%	1.74%	1.41%	3.11%
SAFE	69 Neutral	$1.11B	10.44	4.51%	4.58%	1.54%	―
AHH	65 Neutral	$700.31M	121.23	3.05%	8.10%	-12.13%	-14.54%
Sector *	63 Neutral	$6.93B	18.26	-1.91%	6.91%	4.65%	-25.39%

American Assets Corporate Events

American Assets Engages Investors at NAREIT Conference

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.

American Assets Concludes 2025 Annual Stockholders Meeting

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.

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.