NYSE:AAT

Stock Analysis Report

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.

Rewards

Trading at 52.4% below its fair value

Earnings are forecast to grow 26.87% per year

Earnings grew by 96.8% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

AAT

-0.4%

US REITs

0.03%

US Market


1 Year Return

12.3%

AAT

12.2%

US REITs

18.6%

US Market

Return vs Industry: AAT matched the US REITs industry which returned 12.2% over the past year.

Return vs Market: AAT underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

AATIndustryMarket
7 Day-0.3%-0.4%0.03%
30 Day1.4%1.2%1.7%
90 Day-1.2%-0.3%5.7%
1 Year15.2%12.3%17.0%12.2%21.1%18.6%
3 Year19.6%11.1%35.2%18.3%45.6%36.2%
5 Year37.0%21.2%56.0%23.8%71.1%52.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAT ($47.4) is trading below our estimate of fair value ($99.56)

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 (61x) compared to the REITs industry average (38.8x).

PE vs Market: AAT is poor value based on its PE Ratio (61x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AAT is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AAT is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is American Assets Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAT's forecast earnings growth (26.9% per year) is above the savings rate (1.7%).

Earnings vs Market: AAT's earnings (26.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AAT's revenue (6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AAT's revenue (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 (7.8%).


Next Steps

Past Performance

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

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAT has high quality earnings.

Growing Profit Margin: AAT's current net profit margins (11.4%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: AAT's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: AAT's earnings growth over the past year (96.8%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: AAT earnings growth over the past year (96.8%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: AAT's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Assets Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AAT has a high level of physical assets or inventory.

Debt Coverage by Assets: AAT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: AAT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AAT has a sufficient allowance for bad loans.

Low Risk Liabilities: AAT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AAT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AAT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AAT has an appropriate level of bad loans.


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Upcoming Dividend Payment

Purchase American Assets Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: AAT's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: AAT's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AAT has been paying a dividend for less than 10 years.

Growing Dividend: AAT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), AAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of American Assets Trust's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Ernest Rady (82yo)

4.3yrs

Tenure

US$3,943,250

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 ($USD3.94M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Ernest's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: AAT's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

75yo

Average Age

Experienced Board: AAT's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$19,63822 Feb 19
Ernest Rady
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares450
Max PriceUS$43.64
BuyUS$75,69602 Jan 19
Ernest Rady
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,900
Max PriceUS$39.84
BuyUS$354,77502 Jan 19
American Assets, Inc.
EntityCompany
Shares8,905
Max PriceUS$39.84
BuyUS$167,19128 Dec 18
American Assets, Inc.
EntityCompany
Shares4,326
Max PriceUS$38.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


Management Team

  • Ernest Rady (82yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$3.94m
  • Jerry Gammieri (54yo)

    Vice President of Construction & Development

    • Tenure: 8.9yrs
    • Compensation: US$918.07k
  • Chris Sullivan (57yo)

    Vice President of Retail Properties

    • Tenure: 8.9yrs
  • Robert Barton (62yo)

    Executive VP & CFO

    • Tenure: 8.9yrs
    • Compensation: US$2.28m
  • Adam Wyll (44yo)

    Executive VP & COO

    • Tenure: 0.2yrs
    • Compensation: US$1.49m
  • Steve Center

    Vice President of Office Properties

    • Tenure: 2.1yrs
  • Valerie Gannaway

    Vice President of Real Estate Operations

    • Tenure: 2.9yrs
  • Abigail Rex

    Director of Multifamily

    • Tenure: 0yrs

Board Members

  • Ernest Rady (82yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$3.94m
  • Robert Sullivan (75yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$109.98k
  • Duane Nelles (75yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$113.98k
  • Tom Olinger (52yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$100.98k
  • Joy Schaefer (59yo)

    Director

    • Tenure: 0.5yrs

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$3.594b
  • Market Cap: US$2.822b
  • Shares outstanding: 76.35m
  • 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 ex ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 00:23
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.