American Assets (AAT) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: 6.67%
• Average Volume (3M): 312.61K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.77
• Revenue Growth: 11.68%
• EPS Growth: 37.31%
• Country: US
• Employees: 230
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 61,152,542
• 10 Day Avg. Volume: 358,649
• 30 Day Avg. Volume: 312,605
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 6.01
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: 10.93
• 1Y Price Target: $21.00
• Price Target Upside: 3.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $21.00 ▲(3.35% Upside)

The overall stock score of 62 reflects a stable financial performance with strong profitability margins, but challenges in revenue growth and cash flow generation. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. The earnings call indicates confidence with increased guidance, despite challenges in specific segments. Technical indicators suggest a balanced market sentiment with potential overbought conditions.

Positive Factors

Retail Portfolio Performance

The strong leasing performance and NOI growth in the retail portfolio indicate robust demand and effective management, supporting long-term revenue stability in this segment.

Increased 2025 Guidance

The upward revision in guidance reflects management's confidence in operational performance and strategic initiatives, suggesting potential for sustained growth.

Multifamily Portfolio Stability

High occupancy and rent increases in the multifamily segment demonstrate strong market demand and effective pricing strategies, contributing to long-term revenue growth.

Negative Factors

High Leverage

The high leverage poses a risk to financial stability, especially if interest rates rise, potentially impacting cash flow and limiting growth opportunities.

Cash Flow Challenges

Declining free cash flow suggests potential constraints on liquidity, which could hinder the company's ability to invest in growth or reduce debt.

Office Portfolio Challenges

The low occupancy and flat NOI in the office segment highlight ongoing challenges, which may affect long-term revenue and require strategic adjustments.

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 shows a stable financial position with strong profitability margins, but faces challenges in revenue growth and cash flow generation. The high leverage poses a risk, although operational efficiency remains a strength. Continued focus on improving revenue and managing debt levels will be crucial for future stability and growth.

Income Statement

The income statement shows a mixed performance. The gross profit margin remains strong at around 63%, indicating efficient cost management. However, the net profit margin has seen fluctuations, currently at 16.26% for TTM, which is an improvement from previous years. Revenue growth has been negative recently, which is a concern. The EBIT and EBITDA margins are solid, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.50 in TTM, which indicates significant leverage and potential risk if interest rates rise. Return on equity is modest at 6.27%, suggesting moderate profitability relative to equity. The equity ratio is not explicitly calculated, but the balance sheet structure shows a reasonable proportion of equity to assets.

Cash Flow

Cash flow analysis indicates challenges, with a negative free cash flow growth rate of -13.44% in TTM, suggesting declining cash generation. The operating cash flow to net income ratio is strong at 1.79, indicating good cash conversion from earnings. However, the free cash flow to net income ratio is moderate at 0.55, reflecting potential constraints in cash available for expansion or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	452.81M	457.85M	441.16M	422.65M	375.83M	344.57M
Gross Profit	284.89M	290.13M	277.21M	270.21M	246.05M	223.45M
EBITDA	248.83M	254.66M	249.94M	238.07M	212.22M	196.87M
Net Income	73.63M	56.80M	50.38M	44.15M	28.94M	-51.14M
Balance Sheet
Total Assets	2.96B	3.27B	2.98B	2.99B	3.02B	2.82B
Cash, Cash Equivalents and Short-Term Investments	143.74M	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	1.82B	2.15B	1.83B	1.80B	1.81B	1.56B
Stockholders Equity	1.13B	1.18B	1.20B	1.22B	1.24B	1.27B
Cash Flow
Free Cash Flow	98.24M	136.90M	105.77M	65.29M	63.74M	63.50M
Operating Cash Flow	179.09M	207.11M	188.75M	179.07M	168.33M	126.98M
Investing Cash Flow	-37.36M	-77.41M	-89.89M	-166.32M	-312.28M	-69.08M
Financing Cash Flow	-112.87M	213.07M	-65.55M	-102.70M	144.42M	-28.31M

American Assets Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 20.32 is below the 20-day moving average (MA) of 20.58, above the 50-day MA of 19.89, and below the 200-day MA of 20.49, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, 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	79 Outperform	$1.32B	16.88	7.70%	4.95%	5.60%	93.88%
UE	75 Outperform	$2.67B	24.29	8.07%	3.62%	6.09%	-65.94%
SAFE	72 Outperform	$1.12B	10.71	4.33%	4.57%	1.59%	―
ESRT	68 Neutral	$1.30B	31.98	4.30%	1.83%	1.77%	-8.72%
AAT	62 Neutral	$1.24B	16.59	6.26%	6.67%	11.68%	37.31%
AHH	60 Neutral	$693.24M	74.35	2.60%	8.92%	-25.73%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.

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.

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.