American Assets Trust (NYSE:AAT) - Share price, News & Analysis

Q: What is the Fair Price of AAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AAT ($30.02) is trading below our estimate of [[fair value]] ($34.38)

AAT fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	5/6
Financial Health	1/6
Dividends	4/6

AAT Stock Overview

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

Rewards

Trading at 12.7% below our estimate of its fair value

Earnings are forecast to grow 11.55% per year

Earnings grew by 123.4% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.26% is not well covered by earnings

American Assets Trust Competitors

Broadstone Net Lease

NYSE:BNL

US$3.8b

Essential Properties Realty Trust

NYSE:EPRT

US$2.9b

Armada Hoffler Properties

NYSE:AHH

US$1.2b

PS Business Parks

NYSE:PSB

US$6.5b

Price History & Performance

Summary of all time highs, changes and price drops for American Assets Trust
Historical stock prices
Current Share Price	US$30.02
52 Week High	US$40.83
52 Week Low	US$28.42
Beta	1.14
1 Month Change	-12.12%
3 Month Change	-21.97%
1 Year Change	-19.21%
3 Year Change	-36.61%
5 Year Change	-25.12%
Change since IPO	41.27%

Recent News & Updates

Jun 22

American Assets Trust: Offering A Nearly 10-Year High Dividend Yield

AAT is offering a nearly 10-year high dividend yield of 4.3%. AAT is trading at a 10-year low price-to-FFO ratio due to its 22% decline this year, along with the broad market. AAT is resilient to high inflation. Thanks to its strong position in its markets, it raises its rents meaningfully year after year.

Shareholder Returns

	AAT	US REITs	US Market
7D	2.8%	6.3%	6.3%
1Y	-19.2%	-8.3%	-18.8%

Return vs Industry: AAT underperformed the US REITs industry which returned -8.3% over the past year.

Return vs Market: AAT matched the US Market which returned -18.8% over the past year.

Price Volatility

Is AAT's price volatile compared to industry and market?
AAT volatility
AAT Average Weekly Movement	4.4%
REITs Industry Average Movement	4.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: AAT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AAT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	208	Ernest Rady	https://www.americanassetstrust.com

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.

American Assets Trust Fundamentals Summary

How do American Assets Trust's earnings and revenue compare to its market cap?
AAT fundamental statistics
Market Cap	US$2.32b
Earnings (TTM)	US$37.64m
Revenue (TTM)	US$390.52m

48.3x

P/E Ratio

4.7x

P/S Ratio

Is AAT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAT income statement (TTM)
Revenue	US$390.52m
Cost of Revenue	US$131.18m
Gross Profit	US$259.34m
Other Expenses	US$221.70m
Earnings	US$37.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.62
Gross Margin	66.41%
Net Profit Margin	9.64%
Debt/Equity Ratio	136.7%

How did AAT perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is AAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AAT. This is calculated by dividing AAT's market cap by their current preferred multiple.
What is AAT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.32b

AAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.7x
Enterprise Value/EBITDA	15.2x
PEG Ratio	4.2x

Price to Earnings Ratio vs Peers

How does AAT's PE Ratio compare to its peers?

AAT PE Ratio vs Peers

The above table shows the PE ratio for AAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	32.6x
BNL Broadstone Net Lease	33.4x	3.4%	US$3.8b
EPRT Essential Properties Realty Trust	26.8x	14.5%	US$2.9b
AHH Armada Hoffler Properties	57.6x	-2.4%	US$1.2b
PSB PS Business Parks	11.8x	-38.7%	US$6.5b
AAT American Assets Trust	48.3x	11.5%	US$2.3b

Forward PE

Price-To-Earnings vs Peers: AAT is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the peer average (32.6x).

Price to Earnings Ratio vs Industry

How does AAT's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: AAT is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the US REITs industry average (31.6x)

Price to Earnings Ratio vs Fair Ratio

What is AAT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	48.3x
Fair PE Ratio	36.5x

Price-To-Earnings vs Fair Ratio: AAT is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the estimated Fair Price-To-Earnings Ratio (36.5x).

Share Price vs Fair Value

What is the Fair Price of AAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAT ($30.02) is trading below our estimate of fair value ($34.38)

Significantly Below Fair Value: AAT is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: AAT is poor value based on its PEG Ratio (4.2x)

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAT's forecast earnings growth (11.5% per year) is above the savings rate (1.9%).

Earnings vs Market: AAT's earnings (11.5% per year) are forecast to grow slower than the US market (13.8% per year).

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

Revenue vs Market: AAT's revenue (4.6% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: AAT's revenue (4.6% per year) is forecast to grow slower than 20% 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 (5.1%).

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAT has high quality earnings.

Growing Profit Margin: AAT's current net profit margins (9.6%) are higher than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: AAT's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: AAT's earnings growth over the past year (123.4%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: AAT earnings growth over the past year (123.4%) exceeded the REITs industry 69.5%.

Return on Equity

High ROE: AAT's Return on Equity (4%) is considered low.

Discover strong past performing companies

Financial Health

How is American Assets Trust's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAT's short term assets ($167.0M) exceed its short term liabilities ($68.8M).

Long Term Liabilities: AAT's short term assets ($167.0M) do not cover its long term liabilities ($1.7B).

Debt to Equity History and Analysis

Debt Level: AAT's net debt to equity ratio (130.6%) is considered high.

Reducing Debt: AAT's debt to equity ratio has increased from 134.8% to 136.7% over the past 5 years.

Debt Coverage: AAT's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: AAT's interest payments on its debt are not well covered by EBIT (1.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AAT's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AAT's dividend (4.26%) is in the top 25% of dividend payers in the US market (4.25%)

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 increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.9%), AAT's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (154%), AAT's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure

CEO

Ernest Rady (84 yo)

6.75yrs

Tenure

US$5,061,774

Compensation

Mr. Ernest Sylvan Rady founded American Assets Trust, Inc. in 1967 and has been its Executive Chairman of The Board since January 2011. He serves as Executive Chairman at American Assets Capital Advisers,...

CEO Compensation Analysis

Compensation vs Market: Ernest's total compensation ($USD5.06M) is about average for companies of similar size in the US market ($USD5.48M).

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

Leadership Team

Experienced Management: AAT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: AAT's board of directors are seasoned and experienced ( 11.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31