NYSE:AAT

Stock Analysis Report

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Executive Summary

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California.


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has American Assets Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

AAT

-0.6%

US REITs

1.5%

US Market


1 Year Return

-43.8%

AAT

-11.7%

US REITs

6.9%

US Market

Return vs Industry: AAT underperformed the US REITs industry which returned -12.6% over the past year.

Return vs Market: AAT underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

AATIndustryMarket
7 Day-0.6%-0.6%1.5%
30 Day-12.0%-2.9%5.9%
90 Day-1.8%4.5%17.9%
1 Year-42.3%-43.8%-8.1%-11.7%9.2%6.9%
3 Year-28.6%-34.1%11.3%-2.1%36.4%27.5%
5 Year-26.6%-35.6%38.9%10.4%64.9%47.0%

Price Volatility Vs. Market

How volatile is American Assets Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Assets Trust undervalued compared to its fair value and its price relative to the market?

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAT ($26.37) is trading below our estimate of fair value ($36.83)

Significantly Below Fair Value: AAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAT is poor value based on its PE Ratio (32.4x) compared to the US REITs industry average (26.9x).

PE vs Market: AAT is poor value based on its PE Ratio (32.4x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: AAT is poor value based on its PEG Ratio (15.9x)


Price to Book Ratio

PB vs Industry: AAT is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is American Assets Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAT's forecast earnings growth (2% per year) is below the savings rate (2.2%).

Earnings vs Market: AAT's earnings (2% per year) are forecast to grow slower than the US market (22.5% per year).

High Growth Earnings: AAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: AAT's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: AAT's revenue is forecast to decline over the next 3 years (-2.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAT's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has American Assets Trust performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAT has high quality earnings.

Growing Profit Margin: AAT's current net profit margins (12.5%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: AAT's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: AAT's earnings growth over the past year (49.2%) exceeds its 5-year average (2% per year).

Earnings vs Industry: AAT earnings growth over the past year (49.2%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: AAT's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is American Assets Trust's financial position?


Financial Position Analysis

Short Term Liabilities: AAT's short term assets ($129.8M) exceed its short term liabilities ($71.9M).

Long Term Liabilities: AAT's short term assets ($129.8M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: AAT's debt to equity ratio (102.6%) is considered high.

Reducing Debt: AAT's debt to equity ratio has reduced from 141% to 102.6% over the past 5 years.

Debt Coverage: AAT's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: AAT's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is American Assets Trust current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAT's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: AAT's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (4.59%).


Stability and Growth of Payments

Stable Dividend: AAT's dividend payments have been volatile in the past 10 years.

Growing Dividend: AAT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), AAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Ernest Rady (83yo)

4.83yrs

Tenure

US$3,784,465

Compensation

Mr. Ernest Sylvan Rady founded American Assets Trust, Inc. in 1967 and has been its Executive Chairman of The Board since January 2011. Mr. Rady has been the Chief Executive Officer and President at Americ ...


CEO Compensation Analysis

Compensation vs Market: Ernest's total compensation ($USD3.78M) is about average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Ernest's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ernest Rady
Chairman4.83yrsUS$3.78m10.49% $213.4m
Robert Barton
Executive VP & CFO9.5yrsUS$2.09m0.25% $5.2m
Adam Wyll
Executive VP & COO0.75yrUS$1.59m0.16% $3.3m
Jerry Gammieri
Vice President of Construction & Development9.5yrsUS$849.77k0.084% $1.7m

7.2yrs

Average Tenure

59yo

Average Age

Experienced Management: AAT's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ernest Rady
Chairman4.83yrsUS$3.78m10.49% $213.4m
Robert Sullivan
Independent Director9.5yrsUS$110.02k0.024% $486.3k
Duane Nelles
Independent Director9.5yrsUS$114.02k0.26% $5.2m
Thomas Olinger
Independent Director9.5yrsUS$108.52k0.027% $546.9k
Joy Schaefer
Independent Director1.08yrsUS$77.02k0.0053% $107.2k

9.5yrs

Average Tenure

76yo

Average Age

Experienced Board: AAT's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Assets Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Assets Trust, Inc.
  • Ticker: AAT
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.035b
  • Market Cap: US$1.584b
  • Shares outstanding: 76.46m
  • Website: https://www.americanassetstrust.com

Number of Employees


Location

  • American Assets Trust, Inc.
  • 11455 El Camino Real
  • Suite 200
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AATNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2011

Biography

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 retail, office 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 23:55
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.