American Assets Tr Stock Price, News & Analysis

American Assets Trust, Inc. (NYSE: AAT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) headquartered in San Diego, California. The company focuses on acquiring, improving, developing and managing office, retail and residential properties in the United States. According to its public disclosures, it has over 55 years of experience in real estate, succeeding to the real estate business of American Assets, Inc., a privately held corporation founded in 1967. American Assets Trust, Inc. was formed in 2011 to continue that business.

The company’s portfolio is concentrated in what it describes as dynamic, high-barrier-to-entry markets, primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. Its properties are organized across several core property types: office, retail, multifamily residential and a mixed-use asset that combines retail space with a hotel component. The company reports that its office portfolio comprises approximately 4.1–4.3 million rentable square feet and its retail portfolio comprises approximately 2.4 million rentable square feet. In addition, it owns one mixed-use property that includes approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel, as well as thousands of multifamily units.

Business model and property segments

American Assets Trust, Inc. operates as a REIT, which means its business is centered on owning and operating income-producing real estate. Public information describes four primary segments based on property type:

• Office – A portfolio of multi-tenant office properties totaling roughly 4.1–4.3 million rentable square feet in markets such as Southern California, Northern California, Washington, Oregon, Texas and Hawaii.
• Retail – Shopping center and retail properties totaling approximately 2.4 million rentable square feet, including assets the company characterizes as premier retail destinations.
• Multifamily – Apartment communities totaling more than 2,100 multifamily units, with disclosures referencing 2,110 and 2,302 units at different times, reflecting portfolio activity.
• Mixed-use – One mixed-use property that combines retail space (about 94,000 rentable square feet) with a 369-room all-suite hotel.

In its earnings releases and supplemental information, the company discusses performance and leasing activity across these segments, including metrics such as leased percentages for office, retail, multifamily and the mixed-use hotel component, as well as same-store cash net operating income (NOI) by segment. These disclosures indicate that segment-level performance and occupancy are key internal measures of its operations.

Geographic focus and portfolio evolution

American Assets Trust, Inc. emphasizes a geographic focus on high-barrier-to-entry markets in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. Its public communications describe these markets as among the nation’s most dynamic. The company’s portfolio composition evolves over time through acquisitions, dispositions and development activity that it reports in its news releases and financial results.

For example, the company has disclosed the sale of Del Monte Shopping Center, a retail property in Monterey, California, and the acquisition of Genesee Park, a 192-unit apartment community in San Diego, California. It has also reported development and redevelopment activity at properties such as One Beach Street and La Jolla Commons III, and notes that certain assets may be excluded from same-store metrics due to significant redevelopment or recent acquisition.

Experience and corporate history

According to multiple company announcements, American Assets Trust, Inc. has over 55 years of experience in acquiring, improving, developing and managing office, retail and residential properties. That experience stems from American Assets, Inc., a privately held corporation founded in 1967. In 2011, American Assets Trust, Inc. was formed to succeed to the real estate business of American Assets, Inc. The company highlights its long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes as part of its background.

Stock information and investor focus

American Assets Trust, Inc. trades on the New York Stock Exchange under the ticker symbol AAT. As a publicly traded REIT in the finance and insurance sector, under the industry classification "Other Financial Vehicles," it regularly provides investors with earnings releases, supplemental financial information and guidance. These materials discuss metrics such as net income available to common stockholders, funds from operations (FFO), same-store cash NOI, leasing spreads, portfolio leased percentages and liquidity.

The company also reports on its unsecured revolving credit facility and other financing arrangements. For instance, an 8-K filing describes the exercise of an extension option under its $400 million unsecured revolving credit facility, extending the maturity date and explaining that the extension was intended to adjust the timing of recasting the credit agreement and to provide flexibility in evaluating refinancing alternatives.

Leasing and operating metrics

American Assets Trust, Inc. provides detailed leasing statistics in its quarterly financial results. These include:

• Portfolio leased percentages for office, retail, multifamily and the mixed-use hotel component at various quarter-ends.
• Same-store leased percentages that exclude properties undergoing significant redevelopment, recently acquired assets and land held for development.
• Leasing activity, such as the number of office and retail leases signed in a quarter, comparable leased square footage and the proportion of renewals.
• Leasing spreads on a comparable basis, showing cash-basis and straight-line basis percentage changes over prior rent for office and retail leases.
• Average monthly base rent per leased multifamily unit at different quarter-ends.

The company also reports same-store cash NOI by segment, indicating percentage changes over comparable periods. These disclosures show how office, retail, multifamily and mixed-use segments contribute to overall same-store cash NOI and how that measure changes over time.

Capital structure, liquidity and dividends

In its financial statements and earnings releases, American Assets Trust, Inc. discloses information about its capital structure, including secured and unsecured notes payable, construction in progress, net real estate and cash and cash equivalents. It reports gross real estate assets and liquidity, including availability on its revolving credit facility and cash balances. The company has highlighted that only a small portion of its assets are encumbered by mortgages, based on the number of assets with secured debt compared to total assets.

The company also declares regular dividends on its common stock, with specific per-share amounts and payment dates disclosed in its quarterly results. It provides guidance on expected FFO per diluted share for upcoming periods and explains that this guidance reflects management’s view of market conditions and assumptions about leasing, rental rates, occupancy, interest rates and planned acquisition and development activity.

Use of non-GAAP measures

American Assets Trust, Inc. frequently references non-GAAP financial measures such as funds from operations (FFO) and same-store cash NOI. In its releases, the company states that it considers FFO and same-store cash NOI meaningful in measuring operating performance, and it provides reconciliations of these measures to net income. It also explains adjustments such as the exclusion of lease termination fees and tenant improvement reimbursements from same-store cash NOI to provide what it describes as a more accurate measure of operating performance.

Regulatory filings and disclosures

The company files periodic and current reports with the U.S. Securities and Exchange Commission (SEC), including Form 8-K filings that furnish earnings releases and supplemental financial information, as well as disclosures about its credit facility. These filings identify American Assets Trust, Inc. as a Maryland corporation with its principal executive offices in San Diego, California, and provide its SEC file number and employer identification number.

FAQs about American Assets Trust, Inc. (AAT)

• What is American Assets Trust, Inc.?
  

  American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT) that acquires, improves, develops and manages office, retail and residential properties in the United States. It is headquartered in San Diego, California and trades on the New York Stock Exchange under the ticker AAT.

• What property types are in American Assets Trust, Inc.’s portfolio?
  

  The company reports four main property categories: office properties totaling approximately 4.1–4.3 million rentable square feet, retail properties totaling approximately 2.4 million rentable square feet, one mixed-use property that includes retail space and a 369-room all-suite hotel, and multifamily apartment communities with more than 2,100 units.

• Where are American Assets Trust, Inc.’s properties located?
  

  Public disclosures state that the company’s properties are located in high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii.

• How long has American Assets Trust, Inc. been involved in real estate?
  

  The company reports over 55 years of experience in acquiring, improving, developing and managing real estate. It was formed in 2011 to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967.

• How does American Assets Trust, Inc. describe its business segments?
  

  The company discusses its operations by segment: office, retail, multifamily and mixed-use. It reports segment-level metrics such as same-store cash net operating income, leased percentages and leasing spreads for each segment.

• What financial metrics does American Assets Trust, Inc. emphasize?
  

  In its earnings releases, the company highlights net income available to common stockholders, funds from operations (FFO), FFO per diluted share, same-store cash net operating income (NOI), leasing spreads, portfolio leased percentages and liquidity measures such as cash and credit facility availability.

• Does American Assets Trust, Inc. pay dividends?
  

  Yes. The company discloses regular cash dividends on its common stock in its quarterly financial results, including the dividend amount per share and payment dates.

• What is notable about American Assets Trust, Inc.’s credit facility?
  

  An 8-K filing describes a $400 million unsecured revolving credit facility under a Third Amended and Restated Credit Agreement. The company reported exercising a six-month extension option to move the facility’s maturity date and stated that the extension was intended to provide flexibility in evaluating refinancing alternatives.

• How does American Assets Trust, Inc. use non-GAAP measures like FFO and same-store cash NOI?
  

  The company states that FFO and same-store cash NOI are meaningful supplemental measures of operating performance. It provides reconciliations of these measures to net income and explains adjustments such as excluding lease termination fees and tenant improvement reimbursements from same-store cash NOI.

• What recent portfolio changes has American Assets Trust, Inc. reported?
  

  Recent announcements include the sale of Del Monte Shopping Center in Monterey, California, and the acquisition of Genesee Park, a 192-unit apartment community in San Diego, California. The company has also referenced development and redevelopment activity at properties such as La Jolla Commons III and One Beach Street.