Exploring American Assets Trust,’s Return on Equity
November 11, 2023

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American Assets Trust ($NYSE:AAT), Inc. (AAT) is a publicly-traded real estate investment trust (REIT) that acquires, develops, and operates real estate assets in some of the nation’s most dynamic markets. The company’s portfolio consists of retail, office, multi-family, and self-storage assets throughout the U.S. and Mexico. This article will explore American Assets Trust, Inc.’s return on equity (ROE), which measures how efficiently the company uses its shareholders’ capital to generate earnings. Return on equity is calculated by dividing net income by the total amount of capital that shareholders have invested in the company. A higher ROE indicates that the company is reinvesting profits back into the business to generate additional earnings. In the case of American Assets Trust, Inc., a high ROE can be seen as indicative of strong management and a company with good prospects for future growth.
However, it should be noted that returns on equity can be affected by a number of factors, including the company’s debt-to-equity ratio and its ability to generate profits from operating activities. Overall, American Assets Trust, Inc.’s return on equity is slightly lower than the industry average, but this does not necessarily mean that the company is not performing well. The company’s long-term prospects remain positive, and investors should continue to monitor its performance closely to ensure that their investments are achieving their desired returns.
Market Price
American Assets Trust, Inc. (AAT) experienced a decrease in stock price on Friday, with the stock opening at $18.6 and closing at $18.4, a 0.1% decrease from the prior closing price of $18.4. This is a noteworthy indicator of how the company is faring in terms of its return on equity. By looking at the company’s return on equity, we can gain insight into how efficiently the company is using invested capital to generate profit. Return on equity is a measure of profitability that looks at how much profit a company generates relative to the equity it has invested in its operations.
AAT’s return on equity can be determined through calculation of its net income divided by shareholder equity. It is an important metric for investors to consider when evaluating the financial performance of a company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AAT. More…
| Total Revenues | Net Income | Net Margin |
| 434.67 | 49.53 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AAT. More…
| Operations | Investing | Financing |
| 191.13 | -166.32 | -102.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AAT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.01k | 1.84k | 19.91 |
Key Ratios Snapshot
Some of the financial key ratios for AAT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 27.5% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale has conducted an analysis of AMERICAN ASSETS TRUST’s financials. Based on our Star Chart classification of the company as a ‘cow’, we conclude that it has the track record of paying out consistent and sustainable dividends. This type of company may be of interest to a wide range of investors, from those looking for steady and reliable returns to those seeking out growth opportunities. The company is strong in terms of assets, dividends, and profitability. AMERICAN ASSETS TRUST is also medium in terms of growth. Additionally, its intermediate health score of 4/10 considering its cashflows and debt suggests that it may be able to sustain future operations in times of crisis. More…

Peers
The company’s portfolio consists of office, retail, and multifamily properties. American Assets Trust is one of the largest REITs in the country and its properties are located in some of the most desirable markets in the country, including Los Angeles, San Diego, San Francisco, Seattle, Washington D.C., and Boston. The company’s competitors include Cominar Real Estate Investment Trust, Sunway Real Estate Investment Trust, and Sunlight Real Estate Investment Trust.
– Cominar Real Estate Investment Trust ($KLSE:5176)
Sunway Real Estate Investment Trust is a Malaysia-based real estate investment trust. The Trust’s objective is to generate regular and stable income distributions and long-term growth in net asset value per unit by investing in a diversified portfolio of income-producing real estate assets in Malaysia. The Trust’s portfolio consists of retail, office, hotel, industrial and healthcare properties. As of December 31, 2014, the Trust’s portfolio comprised a total of 52 properties with a gross floor area of approximately 12.1 million square feet.
– Sunway Real Estate Investment Trust ($SEHK:00435)
Sunlight Real Estate Investment Trust is a publicly traded real estate investment trust that owns and operates a portfolio of properties in the United States. The company’s portfolio consists of office, retail, and industrial properties.
Summary
American Assets Trust, Inc. (AAT) is a real estate investment trust that specializes in owning and operating premier urban office, retail, multifamily, and mixed-use properties in high-barrier-to-entry markets in Southern California and Hawaii. Investors looking to analyze AAT’s performance would typically review its return on equity (ROE). ROE provides a measure of how well a company uses its shareholders’ investments and reinvested profits to generate returns. The strong ROE may indicate that the company is well-managed and has effective capital allocation strategies.
However, investors should conduct further research and analysis to understand the company better and to make an informed decision about investing in AAT.
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