American Assets (AAT)
NYSE:AAT
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American Assets
(NYSE:AAT)
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Rating:56Neutral
Price Target:
$19.00
â–¼(-5.71% Downside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by a stable-to-moderate financial profile: strong cash generation is offset by 2025 operating softening and leverage constraints. Technically, the stock shows weak trend/momentum, while valuation is supported by a high dividend yield and the earnings call outlook is cautious but slightly improving on FFO guidance. The expanded credit facility provides an incremental liquidity positive.
Positive Factors
Strong cash generation
Consistent positive operating cash flow and materially improved free cash flow provide durable internal funding for dividends, capex and selective development. This recurring cash generation reduces reliance on capital markets and supports operational resilience through cyclical periods.
Negative Factors
High leverage
Above-average leverage in a rate-sensitive REIT constrains strategic flexibility. With interest coverage around ~3x and net debt/EBITDA near 6.9x, the company faces limited capacity for large acquisitions, slower ability to cut leverage quickly, and heightened sensitivity to interest-rate and NOI swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating cash flow and materially improved free cash flow provide durable internal funding for dividends, capex and selective development. This recurring cash generation reduces reliance on capital markets and supports operational resilience through cyclical periods.
Read all positive factors
American Assets (AAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.21B
Dividend Yield7.31%
Average Volume (3M)413.53K
Price to Earnings (P/E)16.1
Beta (1Y)0.71
Revenue Growth5.95%
EPS Growth5.06%
CountryUS
Employees230
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.05
Shares Outstanding61,390,938
10 Day Avg. Volume544,595
30 Day Avg. Volume413,529
Financial Highlights & Ratios
PEG Ratio-7.55
Price to Book (P/B)1.00
Price to Sales (P/S)2.63
P/FCF Ratio12.08
Enterprise Value/Market Cap2.34
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit10.55
Enterprise Value/Ebitda10.14
Forecast
1Y Price Target
$19.00Price Target Upside-5.71% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.43
Revenue Forecast (FY)$446.30M
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, developi...
How the Company Makes Money
AAT primarily makes money by generating rental and related property income from its real estate portfolio. Key revenue streams include (1) base rents paid by office and retail tenants under lease agreements; (2) multifamily rental income from resi...
American Assets Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The company reported several operational positives — office leasing momentum (material increases in leasing volume and spreads), exceptionally stable retail, healthy liquidity, and modest 2026 FFO upside potential — while simultaneously facing notable headwinds in multifamily and mixed-use performance, conservative credit reserves, elevated leverage (net debt/EBITDA ≈6.9x), and a near-term dividend coverage impact from elevated CapEx. Management’s outlook is cautious but constructive, targeting stabilization and gradual improvement; therefore the call presents a mix of promising operational momentum and measurable near-term financial/market challenges.Positive Updates
FFO Results and 2026 Guidance
Full-year 2025 FFO per share of $2.00 (approximately 3% above initial expectations); Q4 2025 FFO per share $0.47. 2026 FFO guidance range $1.96 to $2.10 with a midpoint of $2.03 (≈+1.5% vs 2025 midpoint). Management views guidance as conservative with upside potential if leasing and collections outperform.
Negative Updates
Multifamily and Mixed-Use Operating Pressure
Same-store multifamily NOI declined ~3.2% for 2025, driven by elevated concessions and new supply in San Diego and Portland. Mixed-use (including Waikiki hotel) same-store NOI declined ~6.7% YoY; Waikiki occupancy averaged ~82% (≈-360 bps YoY), ADR roughly flat near $370, and RevPAR down ≈7% to ~$296.
Read all updates
Q4-2025 Updates
Positive
Negative
FFO Results and 2026 Guidance
Full-year 2025 FFO per share of $2.00 (approximately 3% above initial expectations); Q4 2025 FFO per share $0.47. 2026 FFO guidance range $1.96 to $2.10 with a midpoint of $2.03 (≈+1.5% vs 2025 midpoint). Management views guidance as conservative with upside potential if leasing and collections outperform.
Read all positive updates
Company Guidance
The company guided 2026 FFO per share to $1.96–$2.10 (midpoint $2.03), about 1.5% above 2025 actual FFO of $2.00, with portfolio-wide same-store cash NOI (ex-reserves) expected to rise ~2.2% (described as over 2%); by segment same-store NOI assumptions are office +3.3% (~+$0.06/sh), retail +1.7% (~+$0.02/sh), multifamily +2.2% (~+$0.01/sh) and mixed‑use −3.3% (~−$0.01/sh). Non‑same‑store contributions (La Jolla Commons III and Genesee Park) are expected to add ~+$0.03/sh; credit reserves are budgeted to reduce FFO by ~$0.04/sh (≈64 bps of expected 2026 revenue, ~ $0.02 office / $0.02 retail); G&A cuts are expected to add ~+$0.04/sh; higher interest expense (end of capitalized interest) and lower other income are each expected to reduce FFO by ~$0.02/sh; absence of 2025 termination fees reduces ~$0.025/sh; GAAP adjustments add ~+$0.01/sh; and the Del Monte sale removes ~$0.01/sh — these items net to roughly the $0.03 bridge from 2025 to the 2026 midpoint. Hotel assumptions (Embassy Suites Waikiki) call for revenue +2.5%, expense +4%, occupancy +1%, ADR about $360→$362 (+0.5%) and RevPAR ~$296→$302 (+2%). The Board declared a $0.34 quarterly dividend (Q1), 2025 payout was just under 100% with 2026 implied payout ~89% (targeting ~85% longer term); liquidity at Q4 was ~$529M (cash $129M + $400M revolver), net debt/EBITDA was 6.9x TTM (7.1x quarter annualized) with a 5.5x target, and interest coverage ~3x.American Assets Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
50
Neutral
Cash Flow
70
Positive
| 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
Positive
20.15
Price Trends
18.76
Positive
18.57
Positive
18.85
Positive
Market Momentum
0.14
Negative
64.16
Neutral
93.23
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 20.15 is above the 20-day moving average (MA) of 18.77, above the 50-day MA of 18.76, and above the 200-day MA of 18.85, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 93.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAT.
American Assets Risk Analysis
American Assets disclosed 73 risk factors in its most recent earnings report. American Assets reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Assets Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.08B | 8.57 | 4.81% | 5.13% | 1.30% | -6.14% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $904.15M | 23.09 | 4.56% | 2.16% | 0.45% | -24.85% | |
56 Neutral | $1.21B | 16.06 | 5.29% | 7.31% | 5.95% | 5.06% | |
54 Neutral | $2.05B | -8.52 | -12.68% | 10.29% | -28.94% | -28.24% |
* Real Estate Sector Average
AAT
American Assets
20.15
2.49
14.08%
SAFE
Safehold
15.45
1.07
7.43%
ESRT
Empire State Realty
5.34
-1.53
-22.26%
GNL
Global Net Lease
9.49
2.66
39.01%
American Assets Corporate Events
Business Operations and StrategyPrivate Placements and Financing
American Assets Amends Credit Facility, Expands Borrowing Capacity
Positive
Apr 1, 2026
On April 1, 2026, American Assets Trust, Inc. and its operating partnership amended and restated their credit agreement, boosting total unsecured borrowing capacity to $600 million, including a larger $500 million revolving credit facility and a $...
Business Operations and StrategyPrivate Placements and Financing
American Assets Trust Expands Credit Facility and Liquidity
Positive
Apr 1, 2026
On April 1, 2026, American Assets Trust, Inc. and its operating partnership entered into a Fourth Amended and Restated Credit Agreement, boosting total unsecured borrowing capacity to $600 million, including an expanded $500 million revolving cred...
Business Operations and StrategyFinancial Disclosures
American Assets Trust Reports Q4 and Full-Year 2025 Results
Negative
Feb 3, 2026
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 y...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.