American Assets (AAT) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 6.93%
• Average Volume (3M): 408.91K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.85
• Revenue Growth: 11.68%
• EPS Growth: 37.31%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 45
• Industry: REIT - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 61,152,542
• 10 Day Avg. Volume: 403,101
• 30 Day Avg. Volume: 408,912
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 10.59
• Enterprise Value/Ebitda: 10.80
• 1Y Price Target: $21.75
• Price Target Upside: 11.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $21.50 ▲(10.31% Upside)

American Assets Trust's overall stock score reflects a balanced financial performance with strong profitability and cash flow management, offset by high leverage risks. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. Technical indicators suggest neutral momentum, while the earnings call indicates steady performance with some sector-specific challenges.

Positive Factors

Debt repayment

Repayment of $325 million of debt indicates efforts to strengthen the company's financial position.

Lease agreements

Signing of 18 comparable retail leases with a +6.5% cash spread marks an improvement over previous quarters.

Retail performance

Strong retail performance with a growth of +11.4% in SSNOI supports the company's financial outlook.

Negative Factors

Dilution from asset sale

Surprise retail asset sale resulted in 9c of dilution in the 2025 forecast, impacting financial projections.

Guidance and expectations

Newly issued 2025 guidance range missed expectations significantly, raising questions about future growth.

Office occupancy

Decrease in office total occupancy to 85.0% reflects a decline in space utilization.

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 consistent revenue and profit growth, strong operational efficiency, and robust cash flow generation. However, rising debt levels pose potential risks, and net income growth is modest compared to revenue growth.

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	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	251.88M	254.66M	249.94M	238.07M	216.18M	196.87M
Net Income	82.68M	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	1.71B	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	1.20B	1.18B	1.20B	1.22B	1.24B	1.27B
Cash Flow
Free Cash Flow	113.49M	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	-31.44M	-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: Neutral
• Last Price: 19.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 19.49 is above the 20-day moving average (MA) of 19.49, below the 50-day MA of 19.96, and below the 200-day MA of 21.74, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, 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	75 Outperform	$1.34B	17.26	7.79%	4.86%	5.60%	93.88%
UE	75 Outperform	$2.58B	23.44	8.46%	3.69%	6.09%	-65.94%
SAFE	72 Outperform	$1.09B	10.49	4.38%	4.64%	1.59%	―
AAT	68 Neutral	$1.19B	16.01	6.26%	6.93%	11.68%	37.31%
ESRT	66 Neutral	$1.26B	31.06	4.36%	1.88%	1.77%	-8.72%
AHH	63 Neutral	$713.51M	76.52	3.55%	9.80%	-25.73%	―
Sector *	63 Neutral	$6.87B	13.26	-1.02%	7.28%	3.62%	-23.52%

American Assets Corporate Events

American Assets Reports Q2 2025 Financial Results

American Assets Trust, Inc. reported its financial results for the second quarter ending June 30, 2025, with a net income of $5.5 million for the quarter and $48.0 million for the first half of the year. The company experienced a decrease in Funds from Operations (FFO) compared to the previous year, primarily due to the absence of litigation income received in 2024 and increased interest expenses. Despite these challenges, the company increased its FFO guidance for 2025, reflecting a positive outlook. Leasing activity remained robust, with significant office and retail space leased during the quarter, although office occupancy rates saw a decline compared to the previous year.

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 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.