2024-06-11 11:09:54 ET
Summary
- American Assets Trust is a diversified REIT with a 50.1% exposure to the office sector.
- Net operating income grew 1.5% Y/Y in Q1 2024 on strength in hotels.
- Occupancy was down Y/Y in offices but increased in all other property sectors.
- The company trades at a market-implied cap rate of around 8.3% with a potential 0.3% boost from development projects coming online.
- Net debt accounts for 49% of enterprise value, with refinancing likely to weigh on FFO growth.
Introduction
American Assets Trust ( AAT ) has marginally outperformed the Vanguard Real Estate Index Fund ETF ( VNQ ) so far in 2024, with the shares delivering a mid-single-digit decline:
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For further details see:
American Assets Trust: Office Weakness Trumps Green Shoots In Mixed-Use