American Assets Trust, Inc. Earnings Analysis: 2015 By the Numbers

American Assets Trust, Inc. reports financial results for the year ended December 31, 2015.

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

Highlights

  • Gross margins widened from 39.73% to 41.44% compared to the same period last year, operating (EBITDA) margins now 40.01% from 36.74%.
  • 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):

2011 2012 2013 2014 2015
Relevant Numbers (Annual)
Revenues 209.82 235.47 255.06 257.24 275.62
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -2.16 -2.71 15.22 21.76 38.51
Earnings Growth (YOY) -149.39 -25.43 661 42.94 77
Net Margin -1.03 -1.15 5.97 8.46 13.97
EPS 0.01 0.25 0.38 0.51 0.86
Return on Equity -0.52 -0.4 2.22 2.99 4.83
Return on Assets -0.15 -0.15 0.83 1.15 1.96

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

Earnings Growth Analysis

The company’s earnings growth was influenced by year-on-year improvement in gross margins from 39.73% to 41.44% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from 36.74% to 40.01% compared to the same period last year. For comparison, gross margins were 39.73% and EBITDA margins were 36.74% in the last reporting period.

Gross Margin Versus EBITDA Margin

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 11.94% to 17.01% and (2) one-time items. The company’s pretax margins are now 19.56% compared to 12.29% for the same period last year.

EBIT Margin Versus PreTax Margin
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 primarily includes rental of retail space. The Office segment primarily 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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