American Assets Trust (AAT) Financials

American Assets Trust, Inc. (NYSE: AAT) has experienced some notable trends from Q2 2022 through Q2 2025 based on its income statements, cash flow statements, and balance sheets.

Positive Trends:

• Consistent positive net income across all quarters, with Q2 2025 reporting $7.12 million, showing the company remains profitable.
• Total revenue remained relatively stable and strong, with Q2 2025 total revenue at about $108 million, reflecting stable business operations.
• Depreciation expense steadily increased, indicating growth or acquisitions of property and equipment that may contribute to future revenue.
• Net cash from continuing operating activities has shown strength, with Q2 2025 at $49.2 million, suggesting robust cash-generating operations.
• Cash and due from banks increased from $60.7 million in Q2 2022 to $143.7 million in Q2 2025, improving liquidity position.
• Total common equity grew over the period, reaching approximately $1.18 billion in Q2 2025, indicative of financial solidity.
• The company consistently paid dividends, with a stable dividend per share of $0.34 in Q2 2025, which may indicate shareholder-friendly policies.

Neutral Observations:

• American Assets Trust reported no interest income or expense, indicating limited or no involvement in traditional lending or borrowing activities impacting net interest.
• Non-interest income primarily driven by “Other Non-Interest Income” and “Other Service Charges” has been a consistent revenue source.
• Long-term debt levels remained fairly stable around $1.68 billion by mid-2025, aligned with total liabilities growth.

Negative Trends and Risks:

• Net income per share declined sharply from $0.70 basic EPS in Q1 2025 to $0.09 in Q2 2025, signaling recent profit pressure.
• Significant volatility in “Other Gains / (Losses), net” which was negative $18.8 million in Q2 2025, negatively impacting pre-tax income.
• Large repayment of debt in Q1 2025 ($325 million) leads to a strong cash outflow from financing activities, potentially reducing financial flexibility.
• Provision for loan losses fluctuates, with an increased provision to $193,000 in Q2 2025 from negative values earlier, suggesting potential credit risks or conservative accounting.
• Decline in retained earnings from -$235.1 million in Q2 2022 to -$297.5 million in Q2 2025, indicating accumulated losses or significant cash payouts exceeding earnings.
• Net cash from investing activities remains consistently negative due to property and equipment purchases, possibly increasing future depreciation burden.
• The total equity and noncontrolling interest balance tightened slightly from $1.2 billion in early 2023 to $1.13 billion in Q2 2025, potentially indicating pressure on book value.

In summary, American Assets Trust demonstrates a stable operational foundation with solid cash flow from operations and maintaining dividends. However, recent quarters show earnings pressures and increased losses from other gains and expenses that have impacted net income and retained earnings. Investors should watch for how the company manages these pressures alongside its significant long-term debt and capital expenditures going forward.