📊 AAT Key Takeaways
Is American Assets Trust, Inc. (AAT) a Good Investment?
Despite exceptional 993% revenue growth, AAT exhibits severe structural financial distress with interest coverage of only 0.5x, meaning operating income cannot cover interest obligations—unsustainable and indicating solvency concerns. Diluted EPS declined 2.1% despite massive revenue growth while ROE and ROA collapsed to 0.5% and 0.2%, suggesting the growth came via leveraged acquisition that destroyed shareholder value rather than organic value creation.
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.
American Assets Trust, Inc. Key Strengths (AAT)
- Strong gross margin of 60.5% indicates operational pricing power in property management
- Positive free cash flow of 38.6M and exceptional FCF margin of 34.9% demonstrate cash generation capability
- Respectable operating margin of 23.4% shows cost control in operations
- 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
- Critical interest coverage ratio of 0.5x—operating income insufficient to cover interest expense, indicating unsustainable leverage and solvency risk
- Massive 993% revenue growth paired with declining EPS (-2.1% YoY) and collapsing returns (ROE 0.5%, ROA 0.2%) suggests value-destructive acquisition funded with excessive debt
- Long-term debt of 1.7B against equity of 1.1B with debt/equity ratio of 1.5x indicates aggressive leverage that may restrict financial flexibility
- 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
- Interest coverage ratio trending toward 1.0x or above to assess debt sustainability
- Net income and EPS growth normalization after acquisition integration
- Debt/equity ratio reduction and refinancing activity to improve leverage profile
- 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 34.9% 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 |
|---|---|---|---|
| Q1 2026 | $9.9M | $6.7M | $0.08 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAT's key strengths?
Claude: Strong gross margin of 60.5% indicates operational pricing power in property management. Positive free cash flow of 38.6M and exceptional FCF margin of 34.9% demonstrate cash generation capability. 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: Critical interest coverage ratio of 0.5x—operating income insufficient to cover interest expense, indicating unsustainable leverage and solvency risk. Massive 993% revenue growth paired with declining EPS (-2.1% YoY) and collapsing returns (ROE 0.5%, ROA 0.2%) suggests value-destructive acquisition funded with excessive debt. 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 $110.6M.
Does AAT pay dividends?
American Assets Trust, Inc. pays dividends, with $26.4M 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 $0.08.
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 grade reflects both perspectives for balanced insights.
What is AAT's fundamental grade?
Based on our AI fundamental analysis in June 2026, American Assets Trust, Inc. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AAT stock overvalued or undervalued?
Valuation metrics for AAT: ROE of 0.5% (sector avg: 8%), net margin of 4.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is AAT's AI grade for 2026?
Our dual AI analysis gives American Assets Trust, Inc. a combined C grade 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 $38.6M, with capital expenditures of $0.0. FCF margin is 34.9%.
How does AAT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 4.6% (avg: 20%), ROE 0.5% (avg: 8%), current ratio N/A (avg: 1.5).