SAN DIEGO, CA – American Assets Trust, Inc. (NYSE:AAT) and its operating partnership, American Assets Trust, L.P., have entered into a significant financial agreement, as reported in a recent SEC filing. On Tuesday, the real estate investment trust (REIT) issued $525 million in aggregate principal amount of 6.15% Senior Notes due in 2034.
The notes were issued under an indenture dated January 26, 2021, between the operating partnership, American Assets Trust, Inc. as the guarantor, and U.S. Bank Trust Company, National Association, as the trustee. An officers’ certificate dated Tuesday established the form and terms of the notes, including the guarantee.
This financial move by American Assets Trust, which specializes in office, retail, and residential properties, represents a strategic effort to secure long-term capital. The notes will mature in a decade, providing the company with a stable financial foundation for the foreseeable future.
In other recent news, American Assets Trust, a real estate investment trust, has priced a public offering of senior notes at $525 million. These notes, which carry an interest rate of 6.150% and mature on October 1, 2034, are guaranteed by the company.
The offering is expected to close by September 17, 2024. The company plans to utilize the net proceeds to repay existing debt and reduce the outstanding balance on its revolving credit facility, with remaining funds allocated for working capital and other corporate purposes.
The transaction is managed jointly by Wells Fargo (NYSE:WFC) Securities, Mizuho, and PNC Capital Markets LLC under an existing shelf registration statement and prospectus. This offering is a part of recent developments in the company's financial strategy.
However, the company has cautioned that forward-looking statements are based on current expectations and assumptions, and are not guarantees of future performance. The final prospectus supplement and accompanying prospectus will be available from the managing book-runners upon request.
InvestingPro Insights
In light of American Assets Trust, Inc.'s recent financial maneuvering, current data from InvestingPro offers a deeper dive into the company's financial status. With a market capitalization of approximately $2.08 billion, American Assets Trust is trading at a P/E ratio of 30.53, which is slightly higher at 30.79 when adjusted for the last twelve months as of Q2 2024. This valuation suggests that the company is trading at a premium relative to its near-term earnings growth.
InvestingPro Tips highlight that while American Assets Trust has raised its dividend for three consecutive years and maintained dividend payments for 14 consecutive years, it is currently trading near its 52-week high with a price that's 98.11% of this peak. This performance is underscored by a strong return over the last three months, with a price total return of 26.28%, and an impressive six-month price total return of 30.49%. Additionally, the company's short-term obligations currently exceed its liquid assets, which is an important consideration for investors looking at the company's immediate financial health.
For those interested in exploring further, there are additional InvestingPro Tips available, providing comprehensive analysis and deeper insights into American Assets Trust's financials and market performance. Visit https://www.investing.com/pro/AAT for more detailed tips and metrics.
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