American Assets Trust acquires Genesee Park apartments

SAN DIEGO - American Assets Trust, Inc. (NYSE: NYSE:AAT), a San Diego-based real estate investment trust with a market capitalization of $1.7 billion, has expanded its multifamily property portfolio with the acquisition of Genesee Park, a 192-unit apartment community in San Diego, California. The property, which is currently 93% leased, was purchased for $67.9 million, utilizing cash on hand. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.54, indicating its ability to fund strategic acquisitions.

Genesee Park, characterized by its prime location, offers convenient access to public transportation, freeways, downtown San Diego, the international airport, and various local amenities. According to Adam Wyll, President and CEO of American Assets Trust, the company sees significant potential in the property through strategic asset management, including optimizing rental rates and potentially enhancing density to maximize value. The company’s strong operational performance is reflected in its healthy gross profit margin of 65% and revenue growth of 3.8% over the last twelve months.

The acquisition is in line with American Assets Trust’s strategic direction of investing in high-quality assets within key markets. The company, with over 55 years in the real estate business, manages a diverse portfolio that includes office, retail, and residential properties across the United States, focusing on markets with high barriers to entry. InvestingPro analysis shows the company has maintained dividend payments for 15 consecutive years, with a current attractive dividend yield of 6.1%. For deeper insights into AAT’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The press release statement notes that the company’s office and retail portfolios comprise approximately 4.1 million and 2.4 million rentable square feet, respectively. Additionally, American Assets Trust owns a mixed-use property and several multifamily units across various states, including California, Washington, Oregon, Texas, and Hawaii. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, presenting a potential opportunity for investors interested in REITs with strong dividend histories and diverse property portfolios.

While the press release contains forward-looking statements regarding market conditions and the company’s future plans, these are subject to various risks and uncertainties that could affect actual outcomes. Factors such as economic trends, tenant lease behaviors, financing availability, and broader market fluctuations are among the considerations that may impact the company’s performance. The company’s beta of 1.32 indicates moderate market sensitivity, while its debt-to-capital ratio of 0.55 suggests a balanced approach to leverage.

This news is based on a press release statement from American Assets Trust, Inc. and does not include any promotional content or subjective claims. The information provided is intended to present the facts surrounding the acquisition of Genesee Park and the company’s portfolio strategy without speculation on broader industry impacts or trends.

In other recent news, American Assets Trust reported its fourth-quarter 2024 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.15, compared to the projected $0.14. The company’s revenue also outperformed forecasts, reaching $113.46 million against the anticipated $110.54 million. Despite these strong financial results, the stock experienced a decline in after-hours trading. The company maintains a robust liquidity position, with $826 million available, including $426 million in cash and a $400 million credit line. Additionally, American Assets Trust announced a 1.5% increase in its quarterly dividend to $0.34 per share, reflecting confidence in its long-term financial performance. The firm is also in the process of selling Del Monte Center in Monterey, California, and acquiring a multifamily property in San Diego, which aligns with its strategy to focus on markets with greater operational efficiencies. Looking ahead, American Assets Trust provided a 2025 FFO per share guidance range of $1.87 to $2.01, with a midpoint of $1.94. Management anticipates flat to slightly positive same-store cash NOI growth and is focusing on leasing new developments.

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