Our analysis is based on comparing American Assets Trust, Inc. with the following peers – Vornado Realty Trust, Washington Real Estate Investment Trust, VEREIT, Inc. Class A, ACRE Realty Investors, Inc., EPR Properties, Federal Realty Investment Trust, HMG/Courtland Properties, Inc. and Boston Properties, Inc. (VNO-US, WRE-US, VER-US, AIII-US, EPR-US, FRT-US, HMG-US and BXP-US).
American Assets Trust, Inc.’s dividend yield is 2.44 percent and its dividend payout is 140.28 percent. This compares to a peer average dividend yield of 3.36 percent and a payout level of 82.82 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 25 out of a possible score of 100, points to unsustainability as well.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), AAT-US paid a medium quality dividend, which represents a yield of 2.41% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), AAT-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.88x), investing cash flow (coverage of -0.99x), issuance cash flow (coverage of 0.15x) and twelve-month prior cash (coverage of 0.80x), for a total dividend coverage of 1.85x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||4.37||3.89||3.12||2.44||3.25||2.44|
|Dividend Payout (%)||333.86||221.64||173.87||110.17||140.28||140.28|
A complete list of metrics and analysis is available on the company page.
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust. Its portfolio is comprised of retail shopping centers; office properties; a mixed-use property and a retail shopping center; and multifamily properties. The company operates through four segments: Retail, Office, Multifamily and Mixed-Use. The Retail segment includes rental of retail space. The Office segment includes rental of office space. The Multifamily segment includes rental of apartments. The Mixed-Use segment includes rental of retail space and other tenant services. American Assets Trust was founded on July 16, 2010 and is headquartered in San Diego, CA
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