American Assets (AAT) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: 7.1%
• Average Volume (3M): 389.71K
• Price to Earnings (P/E): 18.8
• 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): 0.07
• Shares Outstanding: 61,152,542
• 10 Day Avg. Volume: 335,718
• 30 Day Avg. Volume: 389,711
• PEG Ratio: -2.46
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 11.57
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 7.01
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: 12.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.41
• Revenue Forecast (FY): $432.29M

• Rating: 59 Neutral
• Price Target: $20.00 ▲(2.77% Upside)

The overall stock score reflects a mix of solid financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's high leverage and declining revenue are significant risks, but strong leasing performance and increased guidance provide some optimism.

Positive Factors

Leasing Performance

High leasing rates and increasing rent spreads indicate strong demand for AAT's retail properties, supporting stable revenue streams and long-term growth.

Guidance Increase

Increased guidance reflects management's confidence in operational performance, suggesting robust business fundamentals and potential for future earnings growth.

Cash Flow Generation

Strong cash flow generation relative to net income indicates efficient operations, providing financial flexibility and supporting ongoing investments and debt management.

Negative Factors

High Leverage

Elevated leverage levels can constrain financial flexibility and increase risk, necessitating focus on debt reduction to ensure long-term financial stability.

Multifamily Portfolio Challenges

Declining NOI in the multifamily segment due to supply headwinds may pressure revenue and profitability, requiring strategic adjustments to address market conditions.

Hawaii Hotel Performance

Weak performance in the hotel segment due to softer tourism impacts revenue diversification, highlighting the need for strategic initiatives to boost occupancy and rates.

American Assets Business Overview & Revenue Model

Company Description

American Assets Trust, Inc. (AAT) is a real estate investment trust (REIT) headquartered in San Diego, California. The company primarily invests in and operates a diversified portfolio of income-producing properties across the retail, office, and multifamily residential sectors. AAT focuses on acquiring, developing, and managing high-quality real estate assets located in key markets along the West Coast of the United States, emphasizing sustainable practices and community engagement in its operations.

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

American Assets demonstrates solid profitability and operational efficiency, with strong margins and cash flow generation. However, the company faces challenges with declining revenue and high leverage, which could impact future growth and financial stability. Continued focus on revenue growth and debt management will be crucial.

Income Statement

American Assets shows a stable gross profit margin around 61.6% in TTM, slightly down from previous years. The net profit margin improved to 13.99% in TTM, indicating better cost management despite a revenue decline of 2.92%. EBIT and EBITDA margins remain strong, though slightly decreased, reflecting operational efficiency. However, the negative revenue growth rate is a concern.

Balance Sheet

The company has a high debt-to-equity ratio of 1.44 in TTM, indicating significant leverage, which is common in the REIT industry but poses a risk. Return on equity improved slightly to 5.20%, showing better utilization of equity. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Operating cash flow to net income ratio is strong at 2.27, indicating good cash generation relative to net income. However, free cash flow growth is negative at -4.98%, and the free cash flow to net income ratio is moderate at 0.55, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.58M	457.85M	441.16M	422.65M	375.83M	344.57M
Gross Profit	270.76M	290.13M	277.21M	270.21M	246.05M	223.45M
EBITDA	239.28M	273.69M	249.94M	238.30M	212.22M	197.31M
Net Income	64.08M	72.82M	64.69M	55.88M	36.59M	35.59M
Balance Sheet
Total Assets	2.94B	3.27B	2.98B	2.99B	3.02B	2.82B
Cash, Cash Equivalents and Short-Term Investments	138.71M	425.66M	82.89M	49.57M	139.52M	137.33M
Total Debt	1.71B	2.03B	1.71B	1.67B	1.68B	1.44B
Total Liabilities	1.83B	2.15B	1.83B	1.80B	1.81B	1.56B
Stockholders Equity	1.17B	1.18B	1.20B	1.22B	1.24B	1.27B
Cash Flow
Free Cash Flow	93.35M	136.90M	105.77M	65.29M	63.74M	63.50M
Operating Cash Flow	167.19M	207.11M	188.75M	179.07M	168.33M	126.98M
Investing Cash Flow	-30.26M	-77.41M	-89.89M	-166.32M	-312.28M	-69.08M
Financing Cash Flow	-531.22M	213.07M	-65.55M	-102.70M	144.42M	-28.31M

American Assets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 19.46 is above the 20-day moving average (MA) of 18.87, above the 50-day MA of 19.07, and above the 200-day MA of 19.16, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 52.37 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
ALEX	74 Outperform	$1.10B	15.04	7.32%	5.94%	-3.94%	64.29%
SAFE	66 Neutral	$1.01B	8.81	4.82%	5.05%	1.30%	-6.14%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.18B	33.92	3.80%	2.07%	0.45%	-24.85%
AHH	61 Neutral	$553.06M	51.04	4.09%	9.01%	-39.94%	―
GNL	61 Neutral	$1.81B	―	-12.53%	10.24%	-28.94%	-28.24%
AAT	59 Neutral	$1.16B	18.75	5.29%	7.10%	5.95%	5.06%

American Assets Corporate Events

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.

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.

American Assets Reports Q3 2025 Financial Results

American Assets Trust, Inc. reported its financial results for the third quarter of 2025, showing a net income of $4.5 million for the quarter and $52.5 million for the nine months ending September 30, 2025. The company increased its Funds from Operations (FFO) guidance for 2025, reflecting a positive outlook despite a decrease in FFO compared to the previous year due to factors such as increased interest expenses and lower occupancy rates in certain segments. The company also reported significant leasing activity, with 306,500 square feet of office and retail space leased during the quarter.