AFG to sell Charleston Harbor Resort & Marina assets

CINCINNATI - American Financial Group, Inc. (NYSE: AFG) has entered into agreements to divest its Charleston Harbor Resort & Marina property, located in South Carolina. The sale, involving the resort’s hotels and marina, is projected to yield a net after-tax gain of approximately $100 million, or $1.20 per share.

The agreements stipulate a 60-day due diligence period, during which the buyers can opt out at their discretion. If not terminated, the transaction is expected to be finalized in the second or third quarter of 2025, subject to customary closing conditions.

Charleston Harbor Resort & Marina features two full-service hotels, a 459-slip marina, and other amenities such as a restaurant and retail store. Acquired by AFG in 2002, the property has undergone substantial enhancements, including the addition of The Beach Club luxury waterfront resort.

American Financial Group, an insurance holding company headquartered in Ohio, primarily operates through Great American Insurance Group in the property and casualty insurance sector, focusing on specialized commercial products. The company generated $8.01 billion in revenue over the last twelve months and maintains a strong dividend track record, having paid dividends consistently for 40 consecutive years. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in their comprehensive Pro Research Report, part of their coverage of over 1,400 US stocks.

The announcement includes forward-looking statements, which are based on current estimates and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Factors affecting future outcomes include market conditions, legislative and regulatory changes, and other risks outlined in AFG’s most recent Annual Report and filings with the Securities and Exchange Commission.

AFG’s decision to sell these assets is part of its strategic initiatives, and the company expects the transaction to contribute positively to its financial position. With a current dividend yield of 7.07% and an "InvestingPro Financial Health" rating of "GOOD," the company demonstrates strong fundamental performance. This news is based on a press release statement from American Financial Group.

In other recent news, American Financial Group has announced the promotion of Matthew J. Stevens to Vice President – Tax, where he will continue overseeing the company’s tax reporting and planning. Meanwhile, BMO Capital Markets has revised its outlook on American Financial, lowering the stock’s price target from $143 to $124, citing updated guidance on the company’s combined ratio and the effects of recent California wildfires on catastrophe losses. Jefferies also adjusted its financial outlook for the company, reducing the price target to $131 from $135, while maintaining a Hold rating, aligning the 2025 earnings per share (EPS) estimate with the company’s guidance.

Additionally, Keefe, Bruyette & Woods (KBW) downgraded American Financial’s stock rating from Outperform to Market Perform and reduced the price target to $144, reflecting lowered EPS estimates for 2025 and 2026 due to anticipated higher catastrophe losses and rising core loss ratios. Despite these adjustments, KBW acknowledges the company’s strong underwriting capabilities and conservative reserving practices. These developments come as investors and stakeholders evaluate American Financial’s current valuation and future performance.

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