American Assets Trust, Inc. :AAT-US: Earnings Analysis: Q4, 2016 By the Numbers : February 16, 2017

American Assets Trust, Inc. reports financial results for the quarter ended December 31, 2016.

We analyze the earnings along side the following peers of American Assets Trust, Inc. – Vornado Realty Trust, Federal Realty Investment Trust and Boston Properties, Inc. (VNO-US, FRT-US and BXP-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 76.56 million, Net Earnings of USD 8.86 million.
  • Gross margins narrowed from 38.87% to 38.60% compared to the same period last year, operating (EBITDA) margins now 39.81% from 39.31%.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 76.56 75.08 70.92 69.93 71.53
Revenue Growth (%YOY) 7.03 6.36 7.34 7.03 7.6
Earnings (mil) 8.86 8.47 7.6 7.65 8.21
Earnings Growth (%YOY) 7.9 -37.52 -12.74 -4.68 16.91
Net Margin (%) 11.57 11.29 10.72 10.94 11.48
EPS 0.19 0.19 0.17 0.17 0.18
Return on Equity (%) 4.29 4.18 3.74 3.71 3.95
Return on Assets (%) 1.78 1.71 1.54 1.55 1.65

Access our Ratings and Scores for American Assets Trust, Inc.

Market Share Versus Profits

Revenues History
Earnings History

AAT-US‘s change in revenue this period compared to the same period last year of 7.03% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that AAT-US is holding onto its market share. Also, for comparison purposes, revenues changed by 1.98% and earnings by 4.57% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s gross margins showed no year-on-year improvement. In spite of this, the company’s earnings rose, influenced primarily by the improvement in operating margins (EBITDA margins) from 39.31% to 39.81%. For comparison, gross margins were 39.96% and EBITDA margins were 39.33% in the last period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 15.21% to 16.09% and (2) one-time items. The company’s pretax margins are now 16.21% compared to 15.44% for the same period last year.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for American Assets Trust, Inc.

Company Profile

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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