American Assets (AAT) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 7.31%
• Average Volume (3M): 413.53K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.69
• Revenue Growth: 5.95%
• EPS Growth: 5.06%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.05
• Shares Outstanding: 61,390,938
• 10 Day Avg. Volume: 544,595
• 30 Day Avg. Volume: 413,529
• PEG Ratio: -7.55
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 12.08
• Enterprise Value/Market Cap: 2.33
• Enterprise Value/Revenue: 6.32
• Enterprise Value/Gross Profit: 10.35
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $17.00
• Price Target Upside: -11.69% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $19.50 ▲(1.30% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by a stable-to-moderate financial profile: strong cash generation is offset by elevated leverage and a 2025 top-line/profitability step-down. The earnings call adds a slightly cautious tone—only modest FFO growth guided and leverage/coverage remain constraints—while technicals are mixed and valuation is supported by a high dividend yield but tempered by a higher P/E.

Positive Factors

Office Leasing Momentum

Sustained office leasing strength—higher occupancy and material positive cash/GAAP spreads—improves recurring rent roll and raises same-store NOI potential. Durable leasing momentum reduces vacancy risk, supports rent reversion and steadier FFO, aiding medium-term cash flow and deleveraging efforts.

Retail Portfolio Stability

Very high retail occupancy, meaningful NOI share, and strong leasing spreads create a resilient cash-flow base. Limited near-term expirations reduce rollover risk, supporting margin sustainability and predictable distributable cash which helps offset cyclical weakness elsewhere in the portfolio.

Development Pipeline & Non‑Same‑Store Contributions

Concrete non‑same‑store project contributions and leasing pipeline convert development value into cash NOI. Expected incremental FFO and leasing ramps support earnings growth and provide structural levers to improve coverage and reduce leverage as projects stabilize and begin contributing to cash flow.

Negative Factors

Elevated Leverage

High leverage and modest interest coverage materially constrain financial flexibility. Elevated net leverage increases refinancing and interest-rate risk, limits capacity for opportunistic investment or accelerated deleveraging, and means operational improvements must outpace obligations to reach the firm's 5.5x target.

Negative Free Cash Flow & High Payout

Negative FCF growth and a high payout ratio compress internal funding for debt reduction and capital needs. With limited free cash generation the company faces slower balance-sheet repair and less cushion against cyclical dips, prolonging reliance on liquidity and capital markets to fund strategies.

Multifamily & Mixed‑Use Weakness

Declines in multifamily and mixed‑use results—from concessions, new supply and softer hotel demand—erode diversification benefits and increase earnings volatility. Persisting weakness in these segments can delay portfolio-wide NOI recovery, pressure FFO and slow the company's ability to reduce leverage and restore payout targets.

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 spaces, and residential units. The company earns rental income from long-term leases and short-term agreements, providing a stable revenue stream. Additionally, AAT may engage in property development and redevelopment activities, potentially leading to increased asset value and rental income upon completion. The company also benefits from strategic partnerships with local developers and businesses, enhancing its market presence and operational efficiency. AAT's revenue is further supported by its commitment to high-quality property management, which helps maintain occupancy rates and tenant satisfaction.

American Assets Financial Statement Overview

Summary

Cash flow is the main positive (healthy operating cash flow and improved free cash flow in 2025), but the financial profile is held back by a notable 2025 revenue/profit step-down and an elevated leverage position despite some improvement versus 2024.

Income Statement

Revenue has been volatile, with a sharp decline in 2025 versus modest growth in 2021–2024. Profitability remains solid for a diversified REIT (gross margin ~61% and EBITDA margin ~52% in 2025), but earnings power weakened in 2025 as net margin fell to ~13% from ~16% in 2024, and EBIT margin compressed meaningfully. Overall: strong underlying margins, but a notable recent top-line and profit step-down reduces the score.

Balance Sheet

Leverage is elevated and fluctuating: debt-to-equity sits around 1.47 in 2025 (peaked near 1.73 in 2024), which limits flexibility in a rate-sensitive REIT environment. Equity has been relatively stable, but returns on equity are modest (~4.9% in 2025), reflecting slower value creation relative to the balance sheet size. Improvement in leverage versus 2024 helps, but overall debt load remains a key constraint.

Cash Flow

Cash generation is a relative strength. Operating cash flow was positive and healthy in 2025 (~$167M), and free cash flow improved to ~$95M with strong growth versus 2024. Free cash flow has consistently been positive across the period, supporting dividends/capex needs. The main watch-out is that free cash flow covers only a moderate portion of net income in 2025 (about 57%), suggesting earnings-to-cash conversion isn’t consistently strong year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	436.20M	457.85M	441.16M	422.65M	375.83M
Gross Profit	266.61M	290.13M	277.21M	270.21M	246.05M
EBITDA	277.57M	273.69M	249.94M	238.30M	212.22M
Net Income	71.37M	72.82M	64.69M	55.88M	36.59M
Balance Sheet
Total Assets	2.92B	3.27B	2.98B	2.99B	3.02B
Cash, Cash Equivalents and Short-Term Investments	129.36M	425.66M	82.89M	49.57M	139.52M
Total Debt	1.71B	2.03B	1.71B	1.67B	1.68B
Total Liabilities	1.83B	2.15B	1.83B	1.80B	1.81B
Stockholders Equity	1.15B	1.18B	1.20B	1.22B	1.24B
Cash Flow
Free Cash Flow	94.86M	136.90M	105.77M	65.29M	63.74M
Operating Cash Flow	167.12M	207.11M	188.75M	179.07M	168.33M
Investing Cash Flow	-30.52M	-77.41M	-89.89M	-166.32M	-312.28M
Financing Cash Flow	-432.90M	213.07M	-65.55M	-102.70M	144.42M

American Assets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.25 is above the 20-day moving average (MA) of 18.63, above the 50-day MA of 18.67, and above the 200-day MA of 19.14, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 87.53 is Negative, 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
SAFE	70 Outperform	$1.14B	9.96	4.82%	5.13%	1.30%	-6.14%
ALEX	69 Neutral	$1.51B	20.67	7.32%	4.97%	-3.94%	64.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.01B	23.42	―	2.16%	0.45%	-24.85%
AHH	61 Neutral	$476.11M	-76.74	―	9.50%	-39.94%	―
GNL	59 Neutral	$2.12B	-7.96	-12.53%	10.29%	-28.94%	-28.24%
AAT	57 Neutral	$1.18B	21.12	5.29%	7.31%	5.95%	5.06%

American Assets Corporate Events

American Assets Trust Reports Q4 and Full-Year 2025 Results

On February 3, 2026, American Assets Trust reported its financial results for the fourth quarter and full year ended December 31, 2025, showing net income available to common stockholders of $3.1 million for the quarter and $55.6 million for the year, or $0.05 and $0.92 per diluted share, respectively. Funds from operations fell to $0.47 per diluted share in the quarter and $2.00 for the year, down from $0.55 and $2.58, respectively, in 2024, largely reflecting the absence of sizable lease termination fees and litigation income recognized in the prior year and the impact of the Del Monte Center sale, while same-store cash NOI was essentially flat in the quarter and up 0.5% for the year. Operationally, the REIT maintained solid leasing activity in the fourth quarter of 2025, signing 37 office and retail leases totaling about 236,800 square feet and 466 multifamily leases, with high renewal rates and positive rent spreads—office comparable leases achieved average cash and straight-line rent increases of 6.6% and 11.5%, respectively, and retail comparable leases posted 0.3% cash and 24.3% straight-line rent growth. Portfolio metrics at year-end 2025 showed office occupancy under pressure at 83.1% while retail and multifamily remained strong at 97.7% and 93.7%, respectively, and the company set 2026 FFO guidance at a midpoint of $2.03 per diluted share, framing a more normalized earnings profile after the one-time items that benefited 2024 results.

The most recent analyst rating on (AAT) stock is a Sell with a $17.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.

American Assets Extends $400M Credit Facility

On November 13, 2025, American Assets Trust, L.P., the operating partnership of American Assets Trust, Inc., exercised a six-month extension option on its $400 million unsecured revolving credit facility, extending the maturity date to July 5, 2026. This extension aims to provide the company with greater flexibility in evaluating refinancing alternatives and timing related actions, without impacting its business operations, financial position, or access to credit.

The most recent analyst rating on (AAT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.

American Assets Extends Credit Facility Maturity

On November 13, 2025, American Assets Trust, L.P. exercised its first six-month extension option on its $400 million unsecured revolving credit facility, extending the maturity date to July 5, 2026. This strategic move allows the company greater flexibility in refinancing decisions and timing, without affecting its business operations or financial position.

The most recent analyst rating on (AAT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on American Assets stock, see the AAT Stock Forecast page.