DCF Tool

AAT

American Assets Trust Inc – Other Financial Vehicles
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The Company has over 50 years of acquiring, improving, developing and managing premier office, retail and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington and Hawaii. The Company's office portfolio comprises approximately 3.4 million square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the Company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 multifamily units. In 2011, the Company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.
Analysis Results
Intrinsic Value $67.64
Latest Price $18.08
Relative Value 73% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 135 129
2024 141 127
2025 146 125
2026 152 124
2027 158 122
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 4740 million. This corresponds to a present value of 3480 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 627 million. Adding in the terminal value gives a total present value of 4110 million.

There are presently 60.7 million outstanding shares, so the intrinsic value per share is 67.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 155,184,000
Current Cash 49,571,000
Current Liabilities 105,604,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,000
Change in NCWC 4,888,000
EBIT 114,734,000
Tax Provision 850,000
Depreciation and Amortization 123,338,000
Capital Expenditure -113,781,000
Unlevered Free Cash Flow 127,459,820
Current Assets 239,424,000
Current Cash 139,524,000
Current Liabilities 104,779,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,879,000
Change in NCWC 7,261,000
EBIT 99,869,000
Tax Provision 738,000
Depreciation and Amortization 116,306,000
Capital Expenditure -104,588,000
Unlevered Free Cash Flow 116,873,680
Current Assets 228,159,000
Current Cash 137,333,000
Current Liabilities 102,966,000
Current Debt 0
Non-Cash Working Capital (NCWC) -12,140,000
Change in NCWC 9,806,000
EBIT 88,581,000
Tax Provision -9,000
Depreciation and Amortization 108,292,000
Capital Expenditure -63,488,000
Unlevered Free Cash Flow 143,191,000
Current Assets 183,466,000
Current Cash 99,303,000
Current Liabilities 106,109,000
Current Debt 0
Non-Cash Working Capital (NCWC) -21,946,000
Change in NCWC -10,298,000
EBIT 113,685,000
Tax Provision 819,000
Depreciation and Amortization 96,205,000
Capital Expenditure -88,327,000
Unlevered Free Cash Flow 109,738,814
Current Assets 113,806,000
Current Cash 47,956,000
Current Liabilities 77,498,000
Current Debt 0
Non-Cash Working Capital (NCWC) -11,648,000
Change in NCWC -17,519,000
EBIT 79,535,000
Tax Provision 327,000
Depreciation and Amortization 107,093,000
Capital Expenditure -54,411,000
Unlevered Free Cash Flow 113,753,252
Current Assets 147,657,000
Current Cash 82,610,000
Current Liabilities 59,176,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,871,000
Change in NCWC -5,941,000
EBIT 93,646,000
Tax Provision 214,000
Depreciation and Amortization 83,278,000
Capital Expenditure -47,496,000
Unlevered Free Cash Flow 122,990,290
Current Assets 108,699,000
Current Cash 44,801,000
Current Liabilities 52,086,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,812,000
Change in NCWC -177,000
EBIT 97,941,000
Tax Provision 566,000
Depreciation and Amortization 71,319,000
Capital Expenditure -59,633,000
Unlevered Free Cash Flow 108,250,194
Current Assets 102,333,000
Current Cash 39,925,000
Current Liabilities 50,419,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,989,000
Change in NCWC 22,251,000
EBIT 94,151,000
Tax Provision 295,000
Depreciation and Amortization 63,392,000
Capital Expenditure -134,174,000
Unlevered Free Cash Flow 45,107,649
Current Assets 117,330,000
Current Cash 59,357,000
Current Liabilities 68,235,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,262,000
Change in NCWC -11,885,000
EBIT 83,669,000
Tax Provision 460,000
Depreciation and Amortization 66,568,000
Capital Expenditure -144,674,000
Unlevered Free Cash Flow -7,539,773
Current Assets 102,316,000
Current Cash 48,987,000
Current Liabilities 51,706,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,623,000
Change in NCWC -4,753,000
EBIT 81,101,000
Tax Provision 645,000
Depreciation and Amortization 66,775,000
Capital Expenditure -55,675,000
Unlevered Free Cash Flow 85,197,036
Current Assets 90,674,000
Current Cash 42,479,000
Current Liabilities 41,819,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,376,000
Change in NCWC -4,192,000
EBIT 72,686,000
Tax Provision 1,016,000
Depreciation and Amortization 61,853,000
Capital Expenditure -34,582,000
Unlevered Free Cash Flow 94,361,480

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