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American Assets Trust CEO Invests in Company

- By Jennifer Chiou

American Assets Trust Inc. (AAT) CEO, President, Chairman and 10% owner Ernest Rady (Insider Trades) bought 10,407 shares of the company on Feb. 24. The price per share was $43.92, for a total transaction of $457,075.


American Assets Trust is a real estate investment trust (REIT) that focuses on acquiring, improving, developing and managing premiere retail, office and residential properties throughout the U.S. The company has a market cap of $2.85 billion.

Including his aforementioned transaction, Rady has purchased 1,016,689 shares of the company in 28 transactions since 2013. He also made the sole two insider purchases of American Assets Trust in 2017 to date, which amount to 14,653 total shares. There is no clear trend in total American Assets Trust insider trades from year to year since 2013, but the total of insider shares purchased in 2016, is about eight times the total insider shares of American Assets Trust purchased in 2013. There were 196,954 shares and 26,000 shares purchased in 2016 and 2013. For more information about insider trades with American Assets Trust , click here.

The company reported increase in total assets from the three months ended Dec. 31, 2016 compared to the corresponding three months of the previous year. The company reported total assets of $1.974 billion in the fourth quarter of 2015, and total assets of $1.987 billion in the fourth quarter of 2016. Revenue also increased from $71.530 million to $76.562 million when comparing the same periods of time. Net income also followed the same trend, increasing from $8.212 million, or 18 cents per share, to $8.861 million, or 19 cents per share. The company also increased dividends per common share to 26 cents from 25 cents.

The company announced that its development efforts at Torrey Point, which includes two Class A office buildings around 88,000 square feet total and over look the Torrey Pines State Park Beach, Torrey Reserve and Pacific Ocean, are expected to be stabilized in 2018. In 2017, the company also projects to incur remaining costs for development, which amounts to a total of about $56 million, and of which about $32 million has already been incurred to date.

American Assets Trust annual revenue and annual net income both follow an increasing trend line; since 2012, the company's annual revenue increased about 14.72%. For more American Assets Trust financial statistics, click here.

In the fourth quarter of 2016, Paul Tudor Jones (Trades, Portfolio) increased his stake in American Assets Trust while Ron Baron (Trades, Portfolio) decreased his stake in the company. Jones purchased 732 shares of the company at an average per share price of $40.76 per share, increasing his stake in American Assets Trust by 13.33%. Baron decreased his stake by 1.38%, selling 13,000 shares for an average per share price of $40.76. The total estimated gain of each holding since the initial investment is about 17% and 95%. For more information about guru trades with American Assets Trust , click here.

According to GuruFocus.com information, Gilead Sciences Inc. has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.

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This article first appeared on GuruFocus.