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In a challenging market environment, American Assets Trust Inc (NYSE:AAT) stock has touched a 52-week low, dipping to $19.55, while offering a notable 6.7% dividend yield. According to InvestingPro analysis, the company has maintained dividend payments for 15 consecutive years, demonstrating remarkable financial stability. This latest price level reflects a notable decline amidst broader market trends and sector-specific headwinds, with the stock down nearly 20% over the past six months. Despite these challenges, AAT maintains strong fundamentals with a healthy current ratio of 1.54 and an EBITDA of $252 million. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive ProTips available to subscribers, covering crucial aspects like valuation multiples and profitability metrics.
In other recent news, American Assets Trust reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.15, compared to the forecast of $0.14. The company’s revenue also exceeded projections, totaling $113.46 million against the anticipated $110.54 million. In addition to these financial results, American Assets Trust expanded its multifamily property portfolio by acquiring Genesee Park, a 192-unit apartment community in San Diego, for $67.9 million. This acquisition aligns with the company’s strategy of investing in high-quality assets within key markets.
The company maintains a strong liquidity position with $826 million available, including $426 million in cash and a $400 million credit line. American Assets Trust also provided a 2025 guidance range for funds from operations (FFO) per share, estimating between $1.87 and $2.01, with a midpoint of $1.94. This guidance reflects a decrease from the 2024 FFO per share of $2.58. Despite the positive earnings report, the stock experienced a decline, which may indicate investor concerns over future market conditions.
Additionally, the company announced a 1.5% increase in its quarterly dividend to $0.34 per share for the first quarter. The acquisition of Genesee Park and the sale of Del Monte Center in Monterey, California, are part of the company’s strategic portfolio adjustments. These moves are intended to focus on markets where American Assets Trust can achieve greater operational efficiencies and long-term growth.
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