📊 AAT Key Takeaways
Is American Assets Trust, Inc. (AAT) a Good Investment?
American Assets Trust demonstrates solid operational performance with strong gross margins (61.1%) and substantial free cash flow generation ($167.1M), but concerning profitability deterioration with net income declining 22% YoY despite 993% revenue growth suggests asset acquisition or one-time items masking underlying earnings quality. The elevated debt-to-equity ratio (1.48x) and razor-thin net margin (0.7%) indicate leverage risk that warrants monitoring, particularly given limited liquidity metrics and subdued ROE/ROA returns.
American Assets Trust shows solid property-level economics, with 61.1% gross margin, 33.5% operating margin, and strong operating cash flow generation relative to revenue. However, the quality of growth looks mixed because revenue surged while net income remained minimal, leaving net margin at just 0.7% and returns on equity and assets extremely weak. The balance sheet is still serviceable, but leverage and only moderate interest coverage limit flexibility if operating conditions weaken.
Why Buy American Assets Trust, Inc. Stock? AAT Key Strengths
- Exceptional gross margin of 61.1% demonstrates pricing power and operational efficiency
- Strong free cash flow generation of $167.1M with 38.3% FCF margin provides financial flexibility
- Reasonable interest coverage ratio of 3.0x suggests manageable debt service obligations
- Substantial revenue growth of 993% YoY indicates successful business expansion or acquisitions
- Strong operating profitability, including 61.1% gross margin and 33.5% operating margin
- Healthy operating cash flow of $167.12M with a strong reported free cash flow margin of 38.3%
- Adequate liquidity cushion from $129.36M in cash and a sizable equity base of $1.15B
AAT Stock Risks: American Assets Trust, Inc. Investment Risks
- Net income declined 22% YoY despite massive revenue growth, signaling deteriorating profitability quality and potential non-cash gains in revenue
- Elevated debt-to-equity ratio of 1.48x with $1.7B long-term debt creates significant financial leverage risk for REIT
- Critically low net margin of 0.7% and near-zero returns on equity (0.3%) and assets (0.1%) indicate poor capital efficiency
- Limited cash position of $129.4M relative to $1.8B liabilities raises refinancing and liquidity concerns
- Revenue growth quality is questionable because a 992.9% revenue increase translated into only $3.15M of net income
- Leverage is meaningful, with $1.70B of long-term debt and debt-to-equity of 1.48x
- Interest coverage of 3.0x leaves limited room for earnings pressure or higher financing costs
Key Metrics to Watch
- Net profit margin trend and composition of net income (recurring vs. non-recurring items)
- Operating cash flow sustainability relative to capital commitments and dividend obligations
- Debt-to-equity ratio and refinancing schedule for the $1.7B long-term debt
- Net income margin and ROE improvement
- Interest coverage and long-term debt levels
American Assets Trust, Inc. (AAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
AAT Profit Margin, ROE & Profitability Analysis
AAT vs Real Estate Sector: How American Assets Trust, Inc. Compares
How American Assets Trust, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is American Assets Trust, Inc. Stock Overvalued? AAT Valuation Analysis 2026
Based on fundamental analysis, American Assets Trust, Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
American Assets Trust, Inc. Balance Sheet: AAT Debt, Cash & Liquidity
AAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: American Assets Trust, Inc.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $0.84 reflects profitable operations.
AAT Revenue Growth, EPS Growth & YoY Performance
AAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $10.1M | $5.9M | $0.07 |
| Q2 2025 | $10.2M | $7.1M | $0.09 |
| Q1 2025 | $9.9M | $24.6M | $0.32 |
| Q3 2024 | $11.4M | $15.1M | $0.20 |
| Q2 2024 | $10.5M | $15.3M | $0.20 |
| Q1 2024 | $10.0M | $20.7M | $0.27 |
| Q3 2023 | $11.4M | $13.5M | $0.20 |
| Q2 2023 | $9.4M | $13.5M | $0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
American Assets Trust, Inc. Dividends, Buybacks & Capital Allocation
AAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for American Assets Trust, Inc. (CIK: 0001500217)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AAT
What is the AI rating for AAT?
American Assets Trust, Inc. (AAT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAT's key strengths?
Claude: Exceptional gross margin of 61.1% demonstrates pricing power and operational efficiency. Strong free cash flow generation of $167.1M with 38.3% FCF margin provides financial flexibility. ChatGPT: Strong operating profitability, including 61.1% gross margin and 33.5% operating margin. Healthy operating cash flow of $167.12M with a strong reported free cash flow margin of 38.3%.
What are the risks of investing in AAT?
Claude: Net income declined 22% YoY despite massive revenue growth, signaling deteriorating profitability quality and potential non-cash gains in revenue. Elevated debt-to-equity ratio of 1.48x with $1.7B long-term debt creates significant financial leverage risk for REIT. ChatGPT: Revenue growth quality is questionable because a 992.9% revenue increase translated into only $3.15M of net income. Leverage is meaningful, with $1.70B of long-term debt and debt-to-equity of 1.48x.
What is AAT's revenue and growth?
American Assets Trust, Inc. reported revenue of $436.2M.
Does AAT pay dividends?
American Assets Trust, Inc. pays dividends, with $105.3M distributed to shareholders in the trailing twelve months.
Where can I find AAT SEC filings?
Official SEC filings for American Assets Trust, Inc. (CIK: 0001500217) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AAT's EPS?
American Assets Trust, Inc. has a diluted EPS of $0.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AAT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, American Assets Trust, Inc. has a HOLD rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AAT stock overvalued or undervalued?
Valuation metrics for AAT: ROE of 0.3% (sector avg: 8%), net margin of 0.7% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy AAT stock in 2026?
Our dual AI analysis gives American Assets Trust, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AAT's free cash flow?
American Assets Trust, Inc.'s operating cash flow is $167.1M, with capital expenditures of $0.0. FCF margin is 38.3%.
How does AAT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 0.7% (avg: 20%), ROE 0.3% (avg: 8%), current ratio N/A (avg: 1.5).