American Assets Trust, Inc. (AAT)
American Assets Trust (AAT) is a REIT focused on premier office, retail, and residential properties in high-barrier-to-entry markets. With a vertically integrated structure and a strong presence in key U.S. markets, AAT offers investors exposure to a diversified real estate portfolio.
Company Overview
American Assets Trust (AAT) offers a compelling investment opportunity through its diversified portfolio of high-quality office, retail, and residential properties in dynamic, high-barrier-to-entry markets, delivering a strong dividend yield and potential for long-term growth.
Investment Thesis
American Assets Trust presents a compelling investment opportunity due to its strategic focus on high-barrier-to-entry markets and its diversified portfolio of office, retail, and residential properties. The company's strong dividend yield of 7.18% offers attractive income potential. AAT's vertically integrated structure allows for efficient management and cost control, enhancing profitability. The company's established presence in key markets like Southern California and Hawaii provides a competitive advantage. Growth catalysts include strategic acquisitions and developments in existing markets. With a market capitalization of $1.16 billion and a P/E ratio of 20.46, AAT offers a balanced risk-reward profile for investors seeking exposure to the real estate sector.
Key Highlights
- Market capitalization of $1.16 billion, reflecting substantial investor interest and company size.
- Dividend yield of 7.18%, providing a significant income stream for investors.
- Profit margin of 12.9%, indicating efficient operations and profitability.
- Gross margin of 53.8%, showcasing the company's ability to manage costs effectively.
- Beta of 0.98, suggesting the stock's volatility is slightly less than the overall market.
Competitors
Strengths
- Diversified portfolio of office, retail, and residential properties.
- Focus on high-barrier-to-entry markets.
- Vertically integrated structure.
- Strong dividend yield.
Weaknesses
- Exposure to economic cycles.
- Dependence on rental income.
- Potential for vacancies.
- Sensitivity to interest rate changes.
Catalysts
- Upcoming: Potential acquisitions of new properties to expand the portfolio.
- Ongoing: Continued strong performance in high-barrier-to-entry markets.
- Ongoing: Successful lease-up of vacant space in existing properties.
- Ongoing: Completion of development projects and stabilization of occupancy.
Risks
- Potential: Economic downturn leading to decreased demand for office, retail, and residential space.
- Potential: Rising interest rates increasing borrowing costs and reducing property values.
- Potential: Increased competition from other REITs and property owners.
- Ongoing: Vacancy rates impacting rental income.
- Ongoing: Changes in zoning regulations affecting property development and value.
Growth Opportunities
- Strategic Acquisitions: AAT can expand its portfolio through strategic acquisitions of high-quality properties in its target markets. The market for commercial real estate acquisitions is substantial, with billions of dollars in transactions occurring annually. By carefully selecting properties that align with its investment criteria, AAT can increase its revenue and asset base. This strategy can be implemented on an ongoing basis, with potential acquisitions identified and executed throughout the year.
- Development Projects: AAT has the opportunity to develop new properties on existing land holdings or through the acquisition of development sites. This allows the company to create value by building properties that meet the specific needs of tenants and the market. Development projects can take several years to complete, but they can generate significant returns upon completion and stabilization. The timeline for these projects varies depending on the size and complexity of the development.
- Expansion in Existing Markets: AAT can deepen its presence in its existing markets by acquiring or developing additional properties. This allows the company to leverage its existing infrastructure and market knowledge to achieve economies of scale and increase its market share. The timeline for this strategy is ongoing, as AAT continuously evaluates opportunities to expand its presence in its core markets.
- Enhancement of Existing Properties: AAT can improve the value of its existing properties through renovations, upgrades, and repositioning. This can attract new tenants, increase rental rates, and enhance the overall appeal of the properties. The timeline for these projects varies depending on the scope of the improvements, but they can typically be completed within a few months to a year. This is an ongoing opportunity for AAT.
- Mixed-Use Developments: AAT can capitalize on the growing demand for mixed-use properties by developing projects that combine office, retail, and residential components. These developments create vibrant, walkable communities that appeal to a wide range of tenants and residents. The timeline for mixed-use developments can be longer than for single-use projects, but they can generate higher returns and create long-term value. This is an ongoing strategy for AAT.
Opportunities
- Strategic acquisitions of high-quality properties.
- Development of new properties in existing markets.
- Expansion into new markets.
- Enhancement of existing properties.
Threats
- Economic downturn.
- Increased competition.
- Rising interest rates.
- Changes in zoning regulations.
Competitive Advantages
- High-barrier-to-entry markets: Focus on markets with limited new development and strong demand.
- Vertically integrated structure: Allows for efficient management and cost control.
- Long-standing relationships: Established relationships with tenants, brokers, and other industry professionals.
- Diversified portfolio: Reduces risk through diversification across property types and geographic locations.
About
American Assets Trust, Inc. (AAT) is a full-service, vertically integrated, and self-administered real estate investment trust (REIT) headquartered in San Diego, California. The company's roots trace back to 1967 with the founding of American Assets, Inc., a privately held corporation. In 2011, AAT was formed to succeed the real estate business of its predecessor, inheriting a legacy of experience and deep market knowledge. AAT specializes in acquiring, improving, developing, and managing premier office, retail, and residential properties across the United States, focusing on high-growth, high-barrier-to-entry markets. These markets primarily include Southern California, Northern California, Oregon, Washington, Texas, and Hawaii. The company's diversified portfolio includes approximately 3.4 million rentable square feet of office space, 3.1 million square feet of retail space, a mixed-use property featuring 97,000 rentable square feet of retail space and a 369-room all-suite hotel, and 2,112 multifamily units. AAT's vertically integrated structure allows for efficient management and control over its properties, contributing to its strong performance and long-standing relationships within its core markets.
What They Do
- Acquires premier office, retail, and residential properties.
- Improves existing properties through renovations and upgrades.
- Develops new properties in strategic locations.
- Manages its portfolio of properties.
- Leases space to tenants.
- Provides property management services.
- Operates a mixed-use property with retail space and a hotel.
Business Model
- Generates revenue through rental income from office, retail, and residential properties.
- Increases property values through strategic acquisitions and developments.
- Enhances profitability through efficient property management and cost control.
- Distributes a portion of its earnings to shareholders through dividends.
Industry Context
American Assets Trust operates within the REIT sector, specifically focusing on diversified properties. The REIT industry benefits from favorable tax regulations and the demand for income-generating assets. Market trends include the increasing urbanization and the growing demand for mixed-use properties. The competitive landscape includes other REITs such as Alexandria Real Estate Equities (ALEX), SL Green Realty (SLG), and Boston Properties (BXP). AAT differentiates itself through its focus on high-barrier-to-entry markets and its vertically integrated structure, allowing for greater control and efficiency in its operations.
Key Customers
- Office tenants seeking high-quality space in prime locations.
- Retail tenants looking for locations in vibrant shopping centers.
- Residential tenants seeking apartments in desirable communities.
- Hotel guests seeking accommodations in a mixed-use environment.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $110M | $4M | $0.05 |
| Q3 2025 | $110M | $6M | $0.08 |
| Q2 2025 | $108M | $7M | $0.09 |
| Q1 2025 | $109M | $54M | $0.71 |
Source: Company filings
Chart & Info
Price Chart
American Assets Trust, Inc. (AAT) stock price: $18.74 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future, indicating that executives believe in its growth potential.
- •Community sentiment has been leaning positive, with discussions highlighting the company's strong portfolio of properties in key markets.
- •Analysts have noted a favorable outlook on the real estate sector, which could benefit AAT given its focus on high-demand areas.
- •Recent developments in leasing activity show promising signs of increased occupancy rates, reflecting robust demand for their properties.
Why Bear
- •Some investors express concerns over rising interest rates, which could impact the real estate market and AAT's financing costs.
- •Community discussions have raised questions about the company's ability to adapt to changing market conditions, particularly in the retail sector.
- •Recent quarterly reports have shown mixed performance metrics, leading to skepticism about sustained growth in a competitive environment.
- •There are worries about potential regulatory changes affecting property management, which could pose challenges to AAT's operations.
Latest News
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Mixed 2025 Earnings and Steady Dividend: Is AAT Redefining Its Resilience Story?
Simply Wall St. · Feb 8, 2026
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Mixed 2025 Earnings and Steady Dividend: Is AAT Redefining Its Resilience Story?
Yahoo! Finance: AAT News · Feb 8, 2026
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American Assets Trust Q4 Earnings Call Highlights
Yahoo! Finance: AAT News · Feb 5, 2026
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American Assets Trust Q4 Earnings Call Highlights
MarketBeat · Feb 5, 2026
Technical Analysis
Rationale
AI-generated technical analysis for AAT including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for AAT.
Make a Prediction
Set your price target for American Assets Trust, Inc. (AAT), choose a timeframe, and track your prediction accuracy.
Current price: $18.74
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for AAT.
Price Targets
Wall Street price target analysis for AAT.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -4.7% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 10/100
Gross margin of 62.3% shows excellent pricing power and a strong competitive moat.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 10/100
Insiders bought +$3.01M net in recent filings, a strong confidence signal from those who know the company best.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
News sentiment is mixed, with a balance of positive and negative coverage in recent days.
What does this score mean?
The MoonshotScore rates AAT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Mixed 2025 Earnings and Steady Dividend: Is AAT Redefining Its Resilience Story?
Mixed 2025 Earnings and Steady Dividend: Is AAT Redefining Its Resilience Story?
American Assets Trust Q4 Earnings Call Highlights
American Assets Trust Q4 Earnings Call Highlights
Frequently Asked Questions
What does American Assets Trust, Inc. do?
American Assets Trust, Inc. (AAT) is a real estate investment trust (REIT) that owns, develops, and manages a diversified portfolio of high-quality office, retail, and residential properties. The company focuses on high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington, Texas, and Hawaii. AAT generates revenue primarily through rental income from its properties and distributes a portion of its earnings to shareholders through dividends. Its vertically integrated structure allows for efficient management and cost control, contributing to its strong performance.
Is AAT stock a good buy?
AAT stock may be a good buy for investors seeking income and exposure to the real estate sector. The company's strong dividend yield of 7.18% provides an attractive income stream. AAT's focus on high-barrier-to-entry markets and its diversified portfolio offer some protection against economic downturns. However, investors should consider the risks associated with the real estate sector, such as rising interest rates and potential vacancies. With a P/E ratio of 20.46, AAT's valuation appears reasonable compared to its peers.
What are the main risks for AAT?
The main risks for AAT include economic downturns, rising interest rates, and increased competition. An economic downturn could lead to decreased demand for office, retail, and residential space, resulting in lower rental income and property values. Rising interest rates could increase borrowing costs and reduce property values. Increased competition from other REITs and property owners could put pressure on rental rates and occupancy levels. Vacancy rates can impact rental income, and changes in zoning regulations can affect property development and value.
Is AAT a good stock to buy?
Whether AAT is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the AAT MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is AAT data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for AAT?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to American Assets Trust, Inc..
Who are AAT's main competitors?
American Assets Trust, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how AAT compares.
What do analysts say about AAT?
Analyst ratings and price targets for AAT are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is AAT's market cap?
Market capitalization reflects the total market value of AAT's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has AAT stock performed recently?
Check the Chart & Info tab for AAT's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in AAT?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for AAT-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling AAT?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for AAT.
Is AAT a good stock for beginners?
American Assets Trust, Inc. (AAT) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is AAT for first-time investors?
Every stock carries risk, including American Assets Trust, Inc. (AAT). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like AAT.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- The information provided is based on available data and should not be considered financial advice.
- Investors should conduct their own due diligence before making any investment decisions.