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American Assets
(NYSE:AAT)
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Rating:57Neutral
Price Target:
$21.00
▼(-7.65% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily held back by weakened profitability/returns alongside elevated leverage, despite steady operating cash generation. Earnings call commentary adds support via reaffirmed FFO guidance, strong liquidity, and identifiable embedded upside from office stabilization, but execution and timing risks remain. Technicals are mixed (near-term weakness vs longer-term uptrend), while valuation is constrained by a very high P/E despite a strong dividend yield.
Positive Factors
Diversified occupancy and rental base
High retail and multifamily occupancy, combined with record average base rents across office, retail, and multifamily, supports recurring rental income. The diversified portfolio reduces reliance on one property type and provides a durable operating foundation as leases renew.
Negative Factors
Elevated leverage
Leverage remains materially above management’s long-term target, limiting financial flexibility and increasing the importance of successful leasing and EBITDA growth. Higher debt also leaves less capacity for acquisitions, redevelopment, or absorbing prolonged operating weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified occupancy and rental base
High retail and multifamily occupancy, combined with record average base rents across office, retail, and multifamily, supports recurring rental income. The diversified portfolio reduces reliance on one property type and provides a durable operating foundation as leases renew.
Read all positive factors
American Assets (AAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield6.64%
Average Volume (3M)451.37K
Price to Earnings (P/E)70.1
Beta (1Y)0.71
Revenue Growth-11.57%
EPS Growth-75.67%
CountryUS
Employees232
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.29
Shares Outstanding61,404,213
10 Day Avg. Volume360,827
30 Day Avg. Volume451,372
Financial Highlights & Ratios
PEG Ratio-9.67
Price to Book (P/B)1.00
Price to Sales (P/S)2.63
P/FCF Ratio12.08
Enterprise Value/Market Cap2.42
Enterprise Value/Revenue6.91
Enterprise Value/Gross Profit11.40
Enterprise Value/Ebitda13.09
Forecast
1Y Price Target
$23.50Price Target Upside3.34% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.39
Revenue Forecast (FY)$443.73M
American Assets Business Overview & Revenue Model
Company Description
American Assets Trust, Inc. (AAT) operates as a fully integrated and internally managed real estate investment trust (REIT), headquartered in San Diego, California. The company boasts an extensive history spanning more than 50 years, specializing ...
How the Company Makes Money
AAT primarily makes money by owning and operating commercial real estate and collecting recurring rental revenue from tenants under lease agreements. Its main revenue stream is base rent paid by office, retail, and multifamily tenants across its p...
American Assets Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism. Results showed operating stability with record average base rents, high retail and multifamily occupancy, clear leasing momentum (notably via a spec-suite program) and strong liquidity with an extended credit facility. Management reaffirmed guidance and quantified meaningful embedded FFO upside (~$0.29 per share) tied primarily to office lease-ups. Offsetting this optimism are elevated leverage (net debt/EBITDA ~6.9x vs a 5.5x target), a one-time $1.2M receivable reserve, hotel NOI pressure and timing uncertainty around several large office lease commencements that are described as binary risks. Overall the company appears fundamentally stable with upside potential but execution- and timing-dependent near-term risks.Positive Updates
FFO and Earnings
Second quarter FFO of $0.51 per diluted share, ahead of internal expectations; net income attributable to common stockholders of $0.09 per diluted share.
Negative Updates
One-Time Office Tenant Reserve
Recorded a one-time reserve of approximately $1.2 million for an office tenant receivable; this reduced reported same-store NOI and was not assumed recoverable in 2026 guidance, although the space has been backfilled.
Read all updates
Q2-2026 Updates
Positive
Negative
FFO and Earnings
Second quarter FFO of $0.51 per diluted share, ahead of internal expectations; net income attributable to common stockholders of $0.09 per diluted share.
Read all positive updates
Company Guidance
Management reaffirmed full‑year FFO guidance of $1.96–$2.10 per diluted share (midpoint $2.03) and said mid‑year outlook supports the midpoint with upside into the upper half if retail tenants cure bad‑debt reserves, office lease commencements accelerate, multifamily occupancy/rate growth outperforms, or Waikiki tourism improves; Q2 FFO was $0.51 (net income $0.09) and portfolio same‑store cash NOI rose 0.3% (1.3% excl. a ~$1.2M one‑time office receivable reserve). Segment results: office same‑store NOI +0.4% (+2.4% excl. reserve) with the office portfolio 84.4% leased and ~110k sq ft signed in Q2 (cash spreads 9%, straight‑line 10%), ~200k sq ft signed but not yet commenced representing >$10M annualized base rent; retail 98% leased with ~139k sq ft signed (cash spreads 3%, straight‑line 20%); multifamily >94% leased excl. RV (San Diego 96% leased, renewal rents +5%, new leases -2%, blended +3%; Hassalo 88% leased, blended +2%). Management highlighted $0.29 per share of incremental FFO potential from office stabilization (La Jolla $0.15, One Beach $0.08, Bellevue $0.06), of which $0.14 is from signed leases ($0.03 recognized YTD, ~$0.02 in 2H‑26 and ~$0.09 in 2027) and $0.15 is speculative; liquidity totaled ~$610M (≈$110M cash + $500M revolver), net debt/EBITDA 6.7x (quarterly annualized) and 6.9x TTM with a long‑term target ≤5.5x, interest and fixed‑charge coverage ~3.0x, and guidance excludes unannounced acquisitions, dispositions or financings.American Assets Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 439.74M | 436.20M | 457.85M | 441.16M | 422.65M | 375.83M |
| Gross Profit | 266.55M | 266.61M | 290.13M | 277.21M | 270.21M | 246.05M |
| EBITDA | 232.16M | 277.57M | 273.69M | 249.94M | 238.30M | 212.22M |
| Net Income | 20.69M | 71.37M | 72.82M | 64.69M | 55.88M | 36.59M |
Balance Sheet | ||||||
| Total Assets | 2.89B | 2.92B | 3.27B | 2.98B | 2.99B | 3.02B |
| Cash, Cash Equivalents and Short-Term Investments | 109.70M | 129.36M | 425.66M | 82.89M | 49.57M | 139.52M |
| Total Debt | 1.72B | 1.71B | 2.03B | 1.71B | 1.67B | 1.68B |
| Total Liabilities | 1.84B | 1.83B | 2.15B | 1.83B | 1.80B | 1.81B |
| Stockholders Equity | 1.12B | 1.15B | 1.18B | 1.20B | 1.22B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 88.65M | 94.86M | 136.90M | 105.77M | 65.29M | 63.74M |
| Operating Cash Flow | 168.56M | 167.12M | 207.11M | 188.75M | 179.07M | 168.33M |
| Investing Cash Flow | -89.81M | -30.52M | -77.41M | -89.89M | -166.32M | -312.28M |
| Financing Cash Flow | -112.79M | -432.90M | 213.07M | -65.55M | -102.70M | 144.42M |
American Assets Technical Analysis
Negative
22.74
Price Trends
21.79
Negative
22.85
Negative
20.86
Negative
Market Momentum
-0.29
Positive
31.76
Neutral
6.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAT, the sentiment is Negative. The current price of 22.74 is above the 20-day moving average (MA) of 21.34, above the 50-day MA of 21.79, and above the 200-day MA of 20.86, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 31.76 is Neutral, neither overbought nor oversold. The STOCH value of 6.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $759.83M | 13.76 | 8.92% | 7.76% | 14.26% | ― | |
59 Neutral | $567.29M | 21.91 | 11.69% | 10.32% | 10.78% | -30.46% | |
57 Neutral | $1.26B | 70.10 | 1.81% | 6.64% | -11.57% | -75.67% | |
53 Neutral | $1.70B | -26.37 | -0.84% | 10.67% | -29.60% | 77.14% | |
52 Neutral | $815.45M | 171.69 | 0.69% | 3.00% | 2.04% | -91.73% | |
47 Neutral | $819.31M | -4.10 | -13.35% | 6.54% | -1.08% | -37.72% |
* Real Estate Sector Average
AAT
American Assets
21.29
2.62
14.03%
CTO
CTO Realty Growth
20.25
5.15
34.06%
GOOD
Gladstone Commercial
12.00
1.66
16.04%
ESRT
Empire State Realty
4.93
-2.68
-35.18%
GNL
Global Net Lease
7.28
0.28
4.06%
JBGS
JBG Smith Properties
11.39
-9.25
-44.82%
American Assets Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
American Assets Trust posts softer Q2 2026 results
Negative
Jul 28, 2026
American Assets Trust reported second-quarter 2026 net income available to common stockholders of $5.2 million, or $0.09 per diluted share, and $10.3 million, or $0.17 per diluted share, for the first half of 2026, with funds from operations of $0...
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.