American Assets Trust, Inc. (AAT) Bundle
A Brief History of American Assets Trust, Inc.
American Assets Trust, Inc. (AAT) is a real estate investment trust (REIT) that primarily focuses on the acquisition, development, and management of retail, office, and multifamily properties. As of 2024, AAT has made significant strides in enhancing its portfolio and financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, AAT reported:
- Total property revenue: $344.4 million, up 5% from $328.7 million in the same period in 2023.
- Net income: $61.2 million, a 20% increase from $51.2 million in the prior year.
- Net income attributable to stockholders: $47.8 million, compared to $39.9 million in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Property Revenue | $344,395,000 | $328,673,000 | 5% |
| Net Income | $61,235,000 | $51,198,000 | 20% |
| Net Income Attributable to Stockholders | $47,821,000 | $39,897,000 | 20% |
Property Segments and Performance
AAT's property segments have shown varying performance metrics:
- Office Properties: Revenue decreased by $1.4 million due to lower occupancy and annualized base rents.
- Retail Properties: Revenue increased by $2.3 million, attributed to new tenant leases and scheduled rent increases.
- Multifamily Properties: Revenue rose by $3.0 million, with average monthly rents increasing to $2,714.
- Mixed-Use Properties: Revenue increased by $0.8 million, driven by higher occupancy rates.
| Property Type | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Office | $118,599,000 | $110,062,000 | 8% |
| Retail | $56,187,000 | $54,908,000 | 2% |
| Multifamily | $27,691,000 | $25,329,000 | 9% |
| Mixed-Use | $18,078,000 | $18,129,000 | -1% |
Cash Flow and Capital Resources
AAT's cash flow metrics for the nine months ended September 30, 2024, are as follows:
- Net cash provided by operating activities: $166.5 million, an increase of $16.6 million from $149.9 million in 2023.
- Net cash used in investing activities: $56.8 million, down from $70.2 million in 2023.
- Net cash provided by financing activities: $340.4 million, compared to cash used in financing activities of $39.3 million in 2023.
| Cash Flow Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Cash from Operating Activities | $166,464,000 | $149,905,000 | +11% |
| Net Cash Used in Investing Activities | $56,763,000 | $70,228,000 | -19% |
| Net Cash from Financing Activities | $340,415,000 | -$39,280,000 | +968% |
Debt and Interest Expense
As of September 30, 2024, AAT's interest expense has increased due to various financing activities:
- Interest Expense (net): $50.8 million, an increase of 5% from $48.4 million in 2023.
- New Debt Issuances: Closed $225 million in Senior Notes and drew $100 million on a Revolver Loan.
| Debt Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Interest Expense (net) | $50,773,000 | $48,422,000 | +5% |
| Senior Notes Issued | $225,000,000 | N/A | N/A |
| Revolver Loan Draw | $100,000,000 | N/A | N/A |
American Assets Trust continues to focus on strategic growth and enhancing its property portfolio while managing its financial performance effectively.
A Who Owns American Assets Trust, Inc. (AAT)
Ownership Structure
As of September 30, 2024, American Assets Trust, Inc. (AAT) operates primarily through its Operating Partnership, American Assets Trust, L.P., in which AAT holds approximately 78.8% of the partnership interest. The remaining interest is held by limited partners.
Shareholder Composition
The common stock outstanding for American Assets Trust, Inc. includes 60,901,583 shares as of September 30, 2024. The ownership can be summarized in the following table:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| AAT Common Stockholders | 60,901,583 | 100% |
| Limited Partners in AAT, L.P. | 16,181,537 | 21.1% |
| General Partner (AAT) | 60,901,583 | 78.8% |
Financial Performance
For the nine months ended September 30, 2024, American Assets Trust, Inc. reported a net income attributable to common stockholders of $47.821 million, compared to $39.897 million for the same period in 2023, reflecting a 20% increase. Earnings per share (EPS) for the same period was $0.79, up from $0.66 in 2023.
Dividends
Dividends declared per common share for the nine months ended September 30, 2024, amounted to $1.005 compared to $0.990 for the same period in 2023. The total dividends paid to common stockholders during this period were $77.466 million.
Market Capitalization
The market capitalization of American Assets Trust, Inc. as of September 30, 2024, is approximately $1.2 billion, based on the stock price and total shares outstanding.
Debt Structure
As of September 30, 2024, the total unsecured notes payable stood at $2.034 billion, while secured notes payable were $74.736 million. The interest expense for the nine months ended September 30, 2024, was $50.773 million.
Segment Performance
American Assets Trust, Inc. reported total property revenues of $344.395 million for the nine months ended September 30, 2024, up from $328.673 million for the same period in 2023. The percentage leased across segments as of September 30, 2024, was as follows:
| Segment | Percentage Leased |
|---|---|
| Office | 87.0% |
| Retail | 94.5% |
| Multifamily | 90.3% |
| Mixed-Use | 96.3% |
American Assets Trust, Inc. (AAT) Mission Statement
Overview of Mission Statement
American Assets Trust, Inc. (AAT) aims to provide high-quality real estate investment opportunities through a diversified portfolio that includes office, retail, multifamily, and mixed-use properties. The company focuses on enhancing shareholder value by maximizing property performance and maintaining strong tenant relationships.
Financial Performance
As of September 30, 2024, AAT reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $122.8 million | $111.2 million | 10% |
| Net Income | $21.3 million | $15.1 million | 41% |
| Earnings per Share (Basic) | $0.28 | $0.20 | 40% |
| Total Property Revenues | $344.4 million | $328.7 million | 5% |
| Total Property Income | $220.6 million | $208.4 million | 6% |
Leasing and Property Performance
As of September 30, 2024, the leasing statistics for AAT's property segments were as follows:
| Property Segment | Percentage Leased (2024) | Percentage Leased (2023) |
|---|---|---|
| Office | 87.0% | 86.8% |
| Retail | 94.5% | 94.4% |
| Multifamily | 90.3% | 89.5% |
| Mixed-Use | 96.3% | 95.1% |
Dividends and Shareholder Returns
AAT has consistently focused on returning value to its shareholders through dividends. The declared dividends per common share for the third quarter of 2024 are as follows:
| Dividend Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared per Common Share | $0.335 | $0.330 | Annualized Dividends | $1.005 | $0.990 |
Strategic Focus
AAT's mission is supported by several strategic initiatives, including:
- Acquisition and Development: Focus on acquiring and developing high-quality properties.
- Operational Excellence: Implementing best practices in property management to enhance tenant satisfaction and operational efficiency.
- Financial Discipline: Maintaining a strong balance sheet and prudent capital management.
Market Position and Competitive Advantage
AAT operates in a competitive real estate market, emphasizing the importance of location, property quality, and tenant relationships. Its diversified portfolio provides resilience against market fluctuations.
How American Assets Trust, Inc. (AAT) Works
Company Overview
American Assets Trust, Inc. (AAT) operates as a real estate investment trust (REIT) focused on owning, operating, and developing high-quality retail, office, and multifamily properties in select markets across the United States. As of September 30, 2024, AAT's total assets amounted to approximately $3.40 billion, with a diverse portfolio that includes shopping centers, office buildings, and residential units.
Financial Performance
For the nine months ended September 30, 2024, AAT reported total revenue of $344.4 million, reflecting a 5% increase compared to $328.7 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change % |
|---|---|---|---|
| Rental Income | $315,664 | $312,105 | 1% |
| Other Property Income | $28,731 | $16,568 | 73% |
| Total Revenue | $344,395 | $328,673 | 5% |
Operating Expenses
AAT incurred total operating expenses of $245.2 million for the nine months ended September 30, 2024, which is an increase from $236.3 million in the prior year. Key components of the operating expenses are:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change % |
|---|---|---|---|
| Rental Expenses | $90,707 | $86,128 | 5% |
| Real Estate Taxes | $33,133 | $34,117 | (3%) |
| General and Administrative | $26,647 | $26,488 | 1% |
| Depreciation and Amortization | $94,757 | $89,592 | 6% |
Net Income and Earnings Per Share
Net income for the nine months ended September 30, 2024, was reported at $61.2 million, a 20% increase from $51.2 million in the same period of 2023. The net income attributable to common stockholders was $47.8 million, translating to earnings per share (EPS) as follows:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 | $0.79 | $0.79 |
| 2023 | $0.66 | $0.66 |
Debt and Financing
AAT's total liabilities stood at approximately $2.26 billion as of September 30, 2024. Key components include:
| Liability Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Secured Notes Payable | $74,736 | $74,669 |
| Unsecured Notes Payable | $2,034,843 | $1,614,958 |
| Accounts Payable and Accrued Expenses | $74,067 | $61,312 |
Property Portfolio and Leasing Activity
As of September 30, 2024, AAT's portfolio was well-leased, with the following occupancy rates:
| Property Type | Percentage Leased (2024) | Percentage Leased (2023) |
|---|---|---|
| Office | 87.0% | 86.8% |
| Retail | 94.5% | 94.4% |
| Multifamily | 90.3% | 89.5% |
| Mixed-Use | 96.3% | 95.1% |
Liquidity and Capital Resources
As of September 30, 2024, AAT reported cash and cash equivalents of $533 million, a significant increase from $82.9 million at the end of 2023. The company’s principal source of funding for dividend payments is distributions received from the Operating Partnership, in which AAT holds a 78.8% partnership interest.
How American Assets Trust, Inc. (AAT) Makes Money
Revenue Sources
American Assets Trust, Inc. generates revenue primarily through rental income from its property portfolio, which includes office, retail, multifamily, and mixed-use properties. For the three months ended September 30, 2024, the company reported total rental income of $105.5 million, virtually unchanged from $105.5 million in the same period of 2023. The breakdown of rental income by segment for the three months is as follows:
| Segment | Rental Income (Q3 2024) | Rental Income (Q3 2023) | Change |
|---|---|---|---|
| Office | $48,642,000 | $50,542,000 | $(1,900,000) |
| Retail | $26,810,000 | $25,748,000 | $1,062,000 |
| Multifamily | $15,289,000 | $14,179,000 | $1,110,000 |
| Mixed-Use | $3,219,000 | $2,955,000 | $264,000 |
| Hotel Revenue | $11,446,000 | $11,893,000 | $(447,000) |
Other Property Income
In addition to rental income, American Assets Trust reported other property income of $17.3 million for Q3 2024, a significant increase from $5.7 million in Q3 2023. This increase is attributed to higher income from various property-related activities, including lease reimbursements and fees.
Total Revenue Growth
Total revenue for the three months ended September 30, 2024, reached $122.8 million, up from $111.2 million in the same period of the previous year, reflecting a 10% increase.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $122,810,000 | $111,198,000 | $11,612,000 |
| Operating Income | $37,808,000 | $31,139,000 | $6,669,000 |
| Net Income | $21,318,000 | $15,135,000 | $6,183,000 |
Operating Expenses
Operating expenses for Q3 2024 totaled $85 million, compared to $80 million in Q3 2023, indicating a 6% increase. Major components include:
- Rental Expenses: $31.4 million (Q3 2024) vs. $29.9 million (Q3 2023)
- Real Estate Taxes: $11.0 million (Q3 2024) vs. $11.4 million (Q3 2023)
- General and Administrative Expenses: $9.1 million (Q3 2024) vs. $8.9 million (Q3 2023)
- Depreciation and Amortization: $33.5 million (Q3 2024) vs. $29.9 million (Q3 2023)
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, net income attributable to American Assets Trust, Inc. stockholders was $47.8 million, a 20% increase from $39.9 million in 2023. Earnings per share (EPS) for the same period was $0.79, up from $0.66 in 2023.
| Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Change |
|---|---|---|---|
| Net Income | $61,235,000 | $51,198,000 | $10,037,000 |
| EPS (Basic) | $0.79 | $0.66 | $0.13 |
Leasing and Occupancy Rates
As of September 30, 2024, the percentage leased across various segments was:
| Segment | Percentage Leased |
|---|---|
| Office | 87.0% |
| Retail | 94.5% |
| Multifamily | 90.3% |
| Mixed-Use | 96.3% |
Debt and Interest Expense
Interest expense for the nine months ended September 30, 2024, was $50.8 million, compared to $48.4 million in 2023, reflecting the impact of new debt instruments and increased borrowing costs.
Dividends
American Assets Trust declared dividends of $0.335 per share in Q3 2024, compared to $0.330 per share in Q3 2023, reflecting a consistent commitment to returning value to shareholders.
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Article updated on 8 Nov 2024
Resources:
- American Assets Trust, Inc. (AAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American Assets Trust, Inc. (AAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Assets Trust, Inc. (AAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.