Cash conversion efficiency remains strained, evidenced by a dividend payout ratio relative to AFFO that reached 0.70 in 2026Q1, limiting available capital for reinvestment.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | 168.84M | 167.12M | 207.11M | 188.75M | 179.07M | 168.33M | 126.98M | 153.82M | 136.51M | 145.85M | 122.66M | 110.72M | 105.61M | 92.73M | 75.94M | 65.36M | 48.35M | 47.5M | 47.59M |
| Operating CF Growth % | -35.26% | -19.31% | 9.72% | 5.41% | 6.38% | 32.56% | -17.44% | 12.68% | -6.41% | 18.91% | 10.78% | 4.84% | 13.89% | 22.11% | 16.19% | 35.2% | 1.78% | -0.19% | - |
| Operating CF / Revenue % | 38.53% | 38.31% | 45.23% | 42.78% | 42.37% | 44.79% | 36.85% | 41.94% | 41.26% | 46.31% | 41.57% | 40.17% | 40.62% | 36.36% | 32.25% | 31.15% | 37.49% | 40.58% | 39.35% |
| Net Income | 22.4M | 71.37M | 72.82M | 64.69M | 55.88M | 36.59M | 35.59M | 60.19M | 27.2M | 40.13M | 45.64M | 53.91M | 31.14M | 22.59M | 13.95M | 14.24M | 2.17M | 5.24M | -12.06M |
| Depreciation & Amortization | 129.13M | 127.31M | 125.46M | 119.5M | 123.34M | 116.31M | 108.29M | 96.2M | 107.09M | 83.28M | 71.32M | 63.39M | 66.57M | 66.78M | 61.85M | 57.64M | 38.01M | 30.23M | 31.46M |
| Stock-Based Compensation | 5.73M | 7.4M | 7.11M | 8.84M | 8.69M | 8.49M | 6.31M | 4.48M | 3.04M | 4.74M | 2.41M | 2.88M | 3.67M | 2.85M | 2.85M | 2.62M | 0 | 0 | 0 |
| Other Non-Cash Items | 8.65M | -37.92M | -1.17M | -3.29M | -8.3M | -12.68M | -31.79M | -4.84M | -523K | 298K | 836K | -726K | -682K | -57K | -634K | 9.07M | 9.79M | 13.5M | 25.72M |
| Working Capital Changes | 2.7M | -1.04M | 2.89M | -982K | -530K | 19.62M | -9.84M | -2.09M | -304K | 6.74M | 2.46M | -1.61M | 3.3M | 737K | -2.46M | -3.58M | -1.63M | -1.46M | 2.47M |
| Cash from Investing | -86.43M | -30.52M | -77.41M | -89.89M | -166.32M | -312.28M | -69.08M | -599.18M | -64.35M | -330.56M | -63.51M | -127.27M | -152.84M | -58.25M | -194.29M | -231.69M | -29.5M | -7.54M | 2.11M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 499.59M | 0 | 0 | 0 | 0 | 0 | 0 | -273.99M | 15.22M | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | -47.76M | 0 | -507.78M | 0 | -278.14M | -309K | 0 | 0 | 0 | 87.6M | -33.1M | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 47.72M | 0 | 8.19M | 0 | 0 | 0 | 12.26M | 0 | 0 | 27.57M | 4.99M | 0 | 0 | 0 |
| Other Investing | -10.19M | 41.74M | -7.2M | -6.91M | -52.54M | -207.65M | -5.59M | -510.86M | -9.94M | -283.07M | -3.88M | 6.91M | -8.17M | -2.58M | -899K | 23.71M | 8.02M | -536K | 22.03M |
| Cash from Financing | -107.98M | -432.9M | 213.07M | -65.55M | -102.7M | 144.42M | -28.31M | 497.55M | -106.84M | 221.91M | -54.27M | -2.89M | 57.6M | -27.97M | 48.11M | 237.09M | -1.08M | -34.75M | -49.96M |
| Dividends Paid | -88.84M | -105.25M | -103.37M | -80.21M | -77.54M | -88.94M | -76.51M | -80.61M | -51.49M | -67.54M | -64.08M | -42.45M | -54.31M | -49.5M | -48.45M | -46.12M | 0 | 0 | 0 |
| Common Dividends | -88.84M | -105.25M | -103.37M | -101.57M | -98.25M | -88.94M | -76.51M | -80.61M | -70.23M | -67.54M | -64.08M | -59.41M | -54.31M | -49.5M | -48.45M | -46.12M | 0 | -23.3M | -64.29M |
| Debt Issuance (Net) | 0 | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -2.39M | -2.39M | -1.45M | -831K | 0 | -865K | -672K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -16.75M | -250K | -5.39M | -23.5M | -21.47M | -5.08M | -125K | -2.44M | -3.25M | -3.28M | -2.86M | -10.28M | -6.92M | -1.4M | -1.72M | -57.35M | -18.45M | -147K | -11.68M |
| Net Change in Cash | -25.57M | -296.3M | 342.77M | 33.32M | -89.95M | 475K | 29.6M | 52.18M | -34.68M | 37.2M | 4.88M | -19.43M | 10.37M | 6.51M | -70.24M | 70.77M | 17.76M | 5.21M | -254K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 129.36M | 425.66M | 82.89M | 49.57M | 139.52M | 139.05M | 109.45M | 57.27M | 91.95M | 54.75M | 39.92M | 59.36M | 48.99M | 42.48M | 112.72M | 41.95M | 24.19M | 18.98M | 19.23M |
| Cash at End | 118.34M | 129.36M | 425.66M | 82.89M | 49.57M | 139.52M | 139.05M | 109.45M | 57.27M | 91.95M | 44.8M | 39.92M | 59.36M | 48.99M | 42.48M | 112.72M | 41.95M | 24.19M | 18.98M |
| Free Cash Flow | 92.59M | 94.86M | 136.9M | 105.77M | 65.29M | 63.74M | 63.5M | 65.49M | 82.1M | 98.36M | 63.03M | -23.45M | -39.06M | 37.06M | 41.36M | -177.15M | 10.82M | 40.49M | 27.67M |
| FCF Growth % | -18.41% | -30.71% | 29.43% | 62% | 2.43% | 0.38% | -3.04% | -20.23% | -16.53% | 56.05% | 368.78% | 39.97% | -205.41% | -10.41% | 123.35% | -1737.25% | -73.28% | 46.34% | - |
| FCF / Revenue % | 21.13% | 21.75% | 29.9% | 23.98% | 15.45% | 16.96% | 18.43% | 17.86% | 24.81% | 31.23% | 21.36% | -8.51% | -15.02% | 14.53% | 17.57% | -84.43% | 8.39% | 34.6% | 22.88% |
West Coast office exposure
As reported in quarterly financial disclosures, AAT's dividend payout ratio relative to AFFO has fluctuated significantly, reaching a high of 0.70 in 2026Q1, which suggests that the company's ability to sustain current distribution levels may be increasingly sensitive to ongoing portfolio-level cash flow volatility.
The wide variance in the dividend-to-AFFO ratio indicates that while the dividend is currently covered, the margin of safety is narrowing. Investors should monitor whether the recent trend of higher payout ratios persists, as it may limit the company's flexibility to fund necessary property improvements without relying on external capital.
Based on the provided cash flow data, recurring capital expenditures, including tenant improvements and leasing commissions, consistently consume a substantial portion of FFO, with quarterly outflows frequently exceeding $17 million, thereby limiting the net cash available for distribution to shareholders or further strategic portfolio expansion.
The persistent level of capital reinvestment appears necessary to maintain occupancy in the company's office assets, effectively acting as a structural drag on AFFO. This suggests that the true cash-generating capacity of the portfolio is lower than headline FFO figures might imply, warranting caution regarding future dividend growth potential.
According to the company's reported financial statements, the substantial gap between GAAP Net Income and FFO highlights the distortive impact of non-cash depreciation charges, which consistently obscure the actual cash-generating capacity of AAT's high-quality, long-term real estate assets in coastal California and Hawaii.
The reliance on FFO as a primary performance metric is essential here, as GAAP Net Income fails to reflect the economic reality of the company's stable, income-producing assets. Analysts should focus on the FFO-to-Net Income spread to gauge the extent to which non-cash accounting entries are suppressing reported earnings relative to actual operational performance.
As indicated by the historical data, the conversion of GAAP operating cash flow into FFO has been inconsistent, with the FFO-to-Net Income ratio showing extreme swings, such as the 7.52 multiple observed in 2026Q1, suggesting that operational cash flow is subject to significant timing differences.
This volatility may imply that working capital fluctuations or non-recurring items are creating noise in the cash flow statement. Investors should monitor these conversion trends to determine if the underlying cash flow quality is stabilizing or if the current operational environment is creating persistent friction in cash realization.
Quick answers to the most common questions about buying AAT stock.
American Assets Trust, Inc. (AAT) generated $167.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
American Assets Trust, Inc. (AAT) generated $94.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
American Assets Trust, Inc. (AAT) spent $72.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, American Assets Trust, Inc. (AAT) returned $105.3M to shareholders via cash dividends and spent $2.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.