American Assets (AAT) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 6.77%
• Average Volume (3M): 497.36K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.81
• Revenue Growth: 12.64%
• EPS Growth: 49.11%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 61,134,730
• 10 Day Avg. Volume: 338,848
• 30 Day Avg. Volume: 497,362
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 10.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $22.00 ▲(10.39%Upside)

American Assets' stock score is driven by solid financial performance and a strong dividend yield. Technical indicators and earnings call sentiment present a mixed outlook, with notable strengths in leasing and acquisitions balanced by challenges in mixed-use portfolio performance and rising debt levels.

Positive Factors

Debt Management

The company repaid $325 million of debt, indicating efforts to strengthen its financial position.

Leasing Activity

AAT signed 18 comparable retail leases at a +6.5% cash spread, showing improvement over previous quarters.

Retail Performance

AAT reported strong retail performance with a growth of +11.4% in SSNOI.

Negative Factors

Dilutive Events

The sale of Del Monte Center resulted in 9c of dilution in its 2025 forecast.

Guidance Expectations

The new guidance range missed expectations significantly, raising questions about future growth.

Occupancy Rates

Office total occupancy decreased to 85.0%, indicating a decline in space utilization.

American Assets Business Overview & Revenue Model

Company Description

American Assets Trust, Inc. (AAT) is a full-service, vertically integrated, and self-administered real estate investment trust (REIT) that focuses on acquiring, improving, and managing premier retail, office, and residential properties throughout the United States. The company primarily operates in high-barrier-to-entry markets in Southern California, Northern California, Oregon, Washington, Texas, and Hawaii, providing high-quality spaces that cater to a diverse range of tenants.

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 displays solid financial performance with consistent revenue and profit growth, supported by strong operational efficiency. However, rising debt levels and modest net income growth compared to revenue growth suggest areas for improvement.

Income Statement

American Assets has shown consistent revenue growth over the years, with a notable increase in total revenue from $344.6 million in 2020 to $457.9 million in 2024. The gross profit margin remains strong, hovering around 63%, indicating efficient cost management. Net profit margin has improved from 8% in 2020 to 12.4% in 2024, reflecting enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, supporting operational efficiency. However, the net income growth, while positive, is modest compared to revenue growth, suggesting room for improvement in cost control or operational leverage.

Balance Sheet

The balance sheet of American Assets reflects a stable financial position with a debt-to-equity ratio of approximately 1.73 in 2024, indicating moderate leverage. The equity ratio is around 35.9%, showing a reasonable level of equity financing. Return on Equity (ROE) has improved from 2.2% in 2020 to 4.8% in 2024, suggesting better utilization of equity. However, the high level of total debt, which has increased over the years, poses a potential risk if not managed carefully.

Cash Flow

American Assets has demonstrated strong cash flow generation with operating cash flow increasing from $126.9 million in 2020 to $207.1 million in 2024. Free cash flow has also grown, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, highlighting efficient cash conversion. However, fluctuations in investing and financing cash flows suggest variability in capital allocation strategies, which could impact future cash flow stability.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

American Assets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.93
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAT, the sentiment is Negative. The current price of 19.93 is below the 20-day moving average (MA) of 20.33, below the 50-day MA of 20.04, and below the 200-day MA of 22.22, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 9.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AAT.

American Assets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UE	78 Outperform	$2.58B	31.03	6.48%	3.69%	6.18%	-72.21%
ALEX	75 Outperform	$1.33B	17.06	7.79%	4.91%	5.60%	93.88%
AAT	70 Outperform	$1.22B	15.04	6.74%	6.77%	12.64%	49.11%
AHH	68 Neutral	$713.48M	123.51	3.05%	9.93%	-12.13%	-14.54%
SAFE	62 Neutral	$1.06B	9.96	4.51%	4.92%	1.54%	―
ESRT	59 Neutral	$1.25B	32.83	5.44%	1.89%	4.36%	-8.72%
Sector *	54 Neutral	$1.24B	3.84	0.67%	6.03%	-2.39%	-129.28%

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.