American Assets Trust (AAT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a chang ...

Core Insights - American Assets Trust, Inc. is a real estate investment trust (REIT) with over 50 years of experience in acquiring, developing, and managing properties in select U.S. markets, focusing on high-demand, supply-constrained regions for competitive advantage [1] - The company's shares are currently priced at $18.55, reflecting a 33% decline over the past year, significantly underperforming the S&P 500, which has increased by 12% during the same period [2] - Argosy-Lionbridge Management has initiated a new position in American Assets Trust by acquiring 214,863 shares valued at $4.4 million, increasing its portfolio to 14 reportable positions totaling $152 million in U.S. equities [3][4] Financial Performance - American Assets Trust reported third-quarter funds from operations (FFO) of $0.49 per share, down from $0.71 a year earlier, but raised its full-year FFO outlook to a midpoint of $1.97, an increase of $0.02 from prior guidance [6] - The company has maintained healthy leasing spreads, with office and retail renewals capturing cash rent increases of 9% and 4%, respectively, while occupancy across multifamily portfolios remains resilient [6] Investment Perspective - The recent investment by Argosy-Lionbridge in a struggling REIT may indicate a value opportunity, as the company continues to generate stable cash flow and has reaffirmed rent growth in key markets [5] - For long-term investors, the fundamentals of American Assets Trust appear stronger than its stock performance suggests, with potential for recovery if leasing and occupancy trends stabilize [7]

A beaten-down REIT just raised guidance — here’s why one fund decided it was the right moment to jump in.New York City-based Argosy-Lionbridge Management disclosed a new position in American Assets Trust (AAT 0.96%) on November 14, revealing that it initiated an approximately $4.4 million stake as of September 30.What HappenedAccording to a filing with the Securities and Exchange Commission dated November 14, Argosy-Lionbridge Management initiated a new position in American Assets Trust (AAT 0.96%) by acqui ...

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Core Insights - American Assets Trust (AAT) is currently offering a not fully covered dividend yield, which has reached its highest level since the pandemic due to a 30% year-to-date decline in its common stock [1] Company Overview - AAT's dividend yield has expanded significantly, indicating potential investment opportunities despite the stock's recent performance [1] Market Context - The equity market is characterized by daily price fluctuations that can lead to substantial long-term wealth creation or destruction [1] - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Financial Performance - Total revenue for Q3 2025 was $109.578 million, a decrease of 10.7% compared to $122.810 million in Q3 2024[23] - Net income attributable to American Assets Trust, Inc. stockholders for Q3 2025 was $4.509 million, down 73.0% from $16.657 million in Q3 2024[23] - Earnings per common share (basic) for Q3 2025 was $0.07, a decrease of 75.0% from $0.28 in Q3 2024[23] - Rental income for Q3 2025 was $102.222 million, a decline of 3.1% from $105.549 million in Q3 2024[23] - Comprehensive income for the three months ended September 30, 2025, was $5,037,000, a decrease from $16,142,000 in 2024[34] - Net income for the nine months ended September 30, 2025, was $67.149 million, an increase from $61.235 million in 2024, representing a growth of approximately 3.5%[40] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $52.5 million, an increase from $47.8 million in 2024[132] - The total segments' profit for the nine months ended September 30, 2025, was $201.193 million, down 8.8% from $220.555 million in 2024[170] Assets and Liabilities - Total assets as of September 30, 2025, were $2.942 billion, down from $3.273 billion as of December 31, 2024[21] - Total liabilities decreased to $1.828 billion as of September 30, 2025, from $2.149 billion at the end of 2024[21] - The total equity of American Assets Trust, Inc. as of September 30, 2025, was $1.114 billion, down from $1.124 billion at the end of 2024[21] - Cash and cash equivalents decreased significantly to $138.714 million from $425.659 million at the end of 2024[21] - Total liabilities decreased to $1,827,664,000 as of September 30, 2025, from $2,149,044,000 as of December 31, 2024, a reduction of approximately 15%[30] - Cash and cash equivalents at the end of the period were $138.714 million, a decrease from $533.004 million at the end of the same period in 2024[40] Dividends and Distributions - The company declared dividends of $0.340 per common share for Q3 2025, slightly up from $0.335 in Q3 2024[23] - The company declared and paid dividends totaling $78,876,000 for the nine months ended September 30, 2025, compared to $77,466,000 for the same period in 2024, reflecting a slight increase[28] - The company declared dividends of $0.340 per share for each quarter in the first three quarters of 2025[125] - Distributions per unit increased to $0.340 for the three months ended September 30, 2025, compared to $0.335 in 2024[34] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $126,545,000, down from $166,464,000 in the same period of 2024, a decline of approximately 24%[28] - The company reported a net decrease in cash and cash equivalents of $286.945 million for the nine months ended September 30, 2025, compared to an increase of $450.116 million in 2024[40] - Cash paid for interest, net of amounts capitalized, was $72.664 million in 2025, up from $54.047 million in 2024, indicating a significant increase of about 34.5%[52] Real Estate Transactions - The company reported a gain on the sale of real estate of $44.476 million for the nine months ended September 30, 2025, compared to no gains reported in the same period of 2024[28] - The company recorded a gain of approximately $44.5 million from the sale of Del Monte Center, with net proceeds of about $117.8 million after closing costs[69] - The company acquired Genesee Park, a 192-unit apartment community, for $67.9 million on February 28, 2025[67] - For the period of acquisition through September 30, 2025, Genesee Park generated revenues of $2,695,000 but incurred operating expenses of $3,669,000, resulting in an operating loss of $974,000[68] Debt and Financing - The company had $1.6 billion of fixed-rate debt outstanding as of September 30, 2025, with an estimated fair value of $1.5 billion[292] - The Operating Partnership repaid the entirety of Term Loan B and Term Loan C on January 2, 2025, which had principal balances of $150,000,000 and $75,000,000 respectively[93] - The 3.375% Senior Notes issued on January 26, 2021, totaled $500,000,000 and are set to mature on February 1, 2031, with a yield to maturity of 3.502%[96] - The 6.150% Senior Notes issued on September 17, 2024, totaled $525,000,000 and are set to mature on October 1, 2034, with an effective interest rate of 6.209%[97][98] - As of September 30, 2025, total unsecured notes payable amounted to $1,612,228,000, a decrease from $1,935,756,000 as of December 31, 2024, representing a reduction of approximately 16.7%[92] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $84,811,000, slightly down from $85,002,000 in 2024[34] - General and administrative expenses for the nine months ended September 30, 2025, were $27,662,000, an increase from $26,647,000 in 2024[34] - Total rental expenses for the nine months ended September 30, 2025, were $91,746,000, compared to $90,707,000 for the same period in 2024[156] Rental Income and Future Rentals - For the nine months ended September 30, 2025, total property revenue was $153.992 million, a decrease of 6.1% from $164.050 million in the same period of 2024[168] - Minimum future rentals from noncancelable operating leases total $1,148,463,000, with the largest portion in 2026 at $252,343,000[148] - Rental revenue from office properties for the three months ended September 30, 2025, was $49,085,000, slightly up from $48,310,000 in 2024[155] Other Income and Expenses - Other income for the nine months ended September 30, 2025, was $2,769,000, significantly lower than $12,857,000 in 2024, which included a $10 million settlement[157] - The provision for uncollectible rental income was $389,000 in 2025, down from $1.095 million in 2024, indicating improved collection performance[40] Management and Agreements - The management fee for the retail portion of Waikiki Beach Walk is 3.0% of net revenues, while for the hotel portion, it is 6.0% of gross operating profit and 3.0% of gross revenues, capped at 3.5% of gross revenues for the fiscal year[140] - WBW Hotel Lessee LLC has a franchise license agreement with Embassy Suites Franchise LLC for 20 years, requiring a monthly royalty fee of 5.0% of gross room revenue and a program fee of 4.0% of gross room revenue[141] - The company has a management agreement with Outrigger for Waikele Center and Shops at Kalakaua, with a fixed management fee of $12,000 per month[140]

Core Viewpoint - American Assets Trust (AAT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for American Assets Trust suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, American Assets Trust is expected to earn $2.01 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1% over the past three months [8].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - For Q3 2025, funds from operations (FFO) were $0.49 per diluted share, slightly above internal projections, supported by leasing progress and disciplined expense management [3][14] - Total revenue for the quarter was $110 million, with net income attributable to common stockholders at $0.07 per diluted share [14] - Same-store cash NOI combined decreased by 0.8% compared to Q3 2024, reflecting a transition year [15] Business Line Data and Key Metrics Changes - The office portfolio ended the quarter 82% leased, with same-store office NOI increasing by 3.6% compared to Q3 2024 [4][15] - The retail portfolio was 98% leased, with same-store retail NOI declining by 2.6% due to credit-related rent losses [7][16] - The multifamily portfolio's same-store NOI declined by 8.3%, impacted by supply headwinds in San Diego [9][16] Market Data and Key Metrics Changes - The broader economic backdrop remains mixed, with interest rates stabilizing and inflation moderating but still above long-term targets [4] - Retail availability remains near record lows nationally, with asking rents continuing to rise [7] - In San Diego, multifamily occupancy improved to 94% leased, with recent leasing momentum noted [9] Company Strategy and Development Direction - The company focuses on owning irreplaceable coastal assets and maintaining a strong balance sheet, emphasizing long-term value creation [3][4] - The strategy includes converting leasing momentum into signed leases and sustaining positive leasing spreads across office and retail sectors [12] - The company is optimistic about capturing demand in healthy office submarkets, particularly with new developments like La Jolla Commons Tower 3 [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a mixed economic environment but remains confident in the long-term fundamentals of their assets [4][16] - There is optimism regarding leasing activity and potential recovery in tourism, particularly in Hawaii, as outbound travel trends improve [11][17] - The company anticipates raising its full-year 2025 guidance range to $1.93 to $2.01 per FFO share, reflecting year-to-date performance [19] Other Important Information - The board approved a quarterly dividend of $0.34 per share for Q4, payable on December 18 [13] - The company has total liquidity of approximately $539 million, with a net debt to EBITDA ratio of 6.7 times [18] Q&A Session Summary Question: Update on leasing pipeline for La Jolla Commons Tower 3 and One Beach Street - Management noted increased activity and signed leases with an international bank, indicating positive momentum towards stabilization [22][23] Question: Known move-outs for 2026 - Management forecasted about 180,000 square feet of potential move-outs but expressed confidence in strong leasing activity to offset this [26] Question: Current leverage profile and plans to reduce it - Management outlined plans to lease up One Beach Street and La Jolla Commons Tower 3 to improve leverage ratios, aiming for a net debt to EBITDA ratio below 6 times [28][29] Question: Multifamily segment performance and expectations - Management expects stability to improve as supply is absorbed and expenses normalize, with recent leasing success noted in San Diego [34][38] Question: Active tenant industries in the office market - Management highlighted a strong interest from AI-driven companies and law firms, indicating a flight to quality in leasing trends [40][41]