American Assets Trust (NYSE:AAT) has announced the sale of Del Monte Shopping Center in Monterey, California for $123.5 million before closing prorations. The transaction represents a strategic move to optimize the company’s portfolio and focus on markets offering greater economies of scale and operational efficiencies.
According to President and CEO Adam Wyll, the divestment aligns with AAT’s long-term growth objectives and demonstrates the company’s commitment to delivering strong results for stakeholders. The company expressed confidence in the new ownership’s ability to continue building upon the shopping center’s success.
American Assets Trust (NYSE:AAT) ha annunciato la vendita del Del Monte Shopping Center a Monterey, California, per 123,5 milioni di dollari prima delle proroghe di chiusura. Questa transazione rappresenta una mossa strategica per ottimizzare il portafoglio dell’azienda e concentrarsi su mercati che offrono maggiori economie di scala ed efficienze operative.
Secondo il Presidente e CEO Adam Wyll, la dismissione è in linea con gli obiettivi di crescita a lungo termine di AAT e dimostra l’impegno dell’azienda nel fornire risultati solidi per gli stakeholder. L’azienda ha espresso fiducia nella capacità del nuovo proprietario di continuare a costruire sul successo del centro commerciale.
American Assets Trust (NYSE:AAT) ha anunciado la venta del Del Monte Shopping Center en Monterey, California, por 123.5 millones de dólares antes de las prorrogas de cierre. La transacción representa un movimiento estratégico para optimizar la cartera de la empresa y centrarse en mercados que ofrecen mayores economías de escala y eficiencias operativas.
Según el Presidente y CEO Adam Wyll, la desinversión se alinea con los objetivos de crecimiento a largo plazo de AAT y demuestra el compromiso de la empresa de ofrecer resultados sólidos a los interesados. La empresa expresó confianza en la capacidad del nuevo propietario para continuar construyendo sobre el éxito del centro comercial.
American Assets Trust (NYSE:AAT)는 캘리포니아 몬터레이에 위치한 Del Monte Shopping Center를 1억 2천 3백 50만 달러에 매각했다고 발표했습니다. 이번 거래는 회사의 포트폴리오를 최적화하고 규모의 경제와 운영 효율성을 제공하는 시장에 집중하기 위한 전략적 조치를 나타냅니다.
회장 겸 CEO인 아담 윌(Adam Wyll)에 따르면, 이번 매각은 AAT의 장기 성장 목표와 일치하며 이해관계자에게 강력한 결과를 제공하겠다는 회사의 의지를 보여줍니다. 회사는 새로운 소유자가 쇼핑 센터의 성공을 지속적으로 발전시킬 수 있을 것이라고 확신하고 있습니다.
American Assets Trust (NYSE:AAT) a annoncé la vente du Del Monte Shopping Center à Monterey, Californie, pour 123,5 millions de dollars avant les prorogations de clôture. La transaction représente un mouvement stratégique pour optimiser le portefeuille de l’entreprise et se concentrer sur des marchés offrant de plus grandes économies d’échelle et des efficacités opérationnelles.
Selon le président et PDG Adam Wyll, la cession s’aligne sur les objectifs de croissance à long terme d’AAT et démontre l’engagement de l’entreprise à fournir des résultats solides pour les parties prenantes. L’entreprise a exprimé sa confiance dans la capacité du nouveau propriétaire à continuer de développer le succès du centre commercial.
American Assets Trust (NYSE:AAT) hat den Verkauf des Del Monte Shopping Center in Monterey, Kalifornien, für 123,5 Millionen Dollar vor Abschlussprorationen bekannt gegeben. Die Transaktion stellt einen strategischen Schritt dar, um das Portfolio des Unternehmens zu optimieren und sich auf Märkte zu konzentrieren, die größere Skaleneffekte und betriebliche Effizienzen bieten.
Laut Präsident und CEO Adam Wyll steht die Veräußerung im Einklang mit den langfristigen Wachstumszielen von AAT und zeigt das Engagement des Unternehmens, starke Ergebnisse für die Stakeholder zu liefern. Das Unternehmen äußerte Vertrauen in die Fähigkeit des neuen Eigentümers, den Erfolg des Einkaufszentrums weiter auszubauen.
Positive
- Significant cash inflow of $123.5M from asset sale
- Strategic portfolio optimization for better operational efficiency
- Alignment with long-term growth strategy
Negative
- Reduction in retail property portfolio
- Loss of revenue stream from Del Monte Shopping Center
Insights
American Assets Trust (NYSE: AAT) has announced the sale of Del Monte Shopping Center in Monterey, California for
This divestiture appears to be part of a strategic portfolio optimization rather than a distressed sale. The company’s language about focusing on “markets where we can achieve greater economies of scale” suggests AAT is likely consolidating its geographic footprint to enhance operational efficiency. The Monterey location may have been an outlier in their portfolio that didn’t benefit from management synergies with other nearby properties.
For investors, the critical question revolves around capital redeployment. Potential uses of the
- Debt reduction to strengthen the balance sheet
- Property acquisitions in core markets where AAT has stronger presence
- Share repurchases, particularly attractive at current valuation levels
- Special dividends, though less likely given the strategic focus on growth
From a financial perspective, this transaction will immediately impact AAT’s quarterly funds from operations (FFO), removing the income stream from Del Monte while potentially creating a one-time gain depending on the property’s book value. The sale price represents a significant monetization that could materially alter AAT’s leverage ratios and investment capacity.
This move aligns with broader industry trends where retail REITs are pruning non-core assets to focus on properties with stronger growth profiles or in markets where they can leverage existing operational infrastructure. The timing suggests management may view current market conditions as favorable for retail asset dispositions, potentially indicating their view on the retail real estate cycle.
Investors should watch for management commentary in the upcoming earnings call regarding the intended use of proceeds and whether this sale represents an isolated transaction or the beginning of a more comprehensive portfolio restructuring strategy.
SAN DIEGO, Feb. 25, 2025 (GLOBE NEWSWIRE) — American Assets Trust, Inc. (NYSE:AAT) (the “Company”) announced today the sale of Del Monte Shopping Center, a premier retail destination in Monterey, California, for approximately
“The sale of Del Monte Center is a strategic decision that allows us to focus on markets where we can achieve greater economies of scale and operational efficiencies while aligning with our long-term growth objectives. We are proud of the value we have created at Del Monte Center and confident that the new ownership will continue to build upon its success. This transaction reflects our commitment to optimizing our portfolio and delivering strong results for our stakeholders over the long-term,” said Adam Wyll, the Company’s President and Chief Executive Officer.
About American Assets Trust, Inc.
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (“REIT”), headquartered in San Diego, California. The Company has over 55 years of experience in 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, Washington, Oregon, Texas and Hawaii. The Company’s office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 2.4 million rentable square feet. In addition, the Company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 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. For additional information, please visit www.americanassetstrust.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; decreased rental rates or increased vacancy rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; fluctuations in interest rates and increased operating costs; our failure to obtain necessary outside financing; our inability to develop or redevelop our properties due to market conditions; investment returns from our developed properties may be less than anticipated; general economic conditions; financial market fluctuations; risks that affect the general office, retail, multifamily and mixed-use environment; the competitive environment in which we operate; system failures or security incidents through cyber attacks; the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as the outbreak of COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including the ability of our company, our properties and our tenants to operate; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; risks related to joint venture arrangements; on-going and/or potential litigation; difficulties in completing dispositions; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for American Assets Trust, Inc. to continue to qualify as a REIT, for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.
Source: American Assets Trust, Inc.
Investor and Media Contact:
Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607
FAQ
How much did American Assets Trust sell Del Monte Shopping Center for?
American Assets Trust sold Del Monte Shopping Center for approximately $123.5 million, before closing prorations.
Why did AAT sell Del Monte Shopping Center in Monterey?
AAT sold Del Monte Shopping Center to focus on markets with greater economies of scale and operational efficiencies, aligning with their long-term growth objectives.
When did American Assets Trust announce the Del Monte Shopping Center sale?
American Assets Trust announced the Del Monte Shopping Center sale on February 25, 2025.
What are the strategic benefits of AAT’s Del Monte Shopping Center sale?
The sale allows AAT to optimize its portfolio, achieve better operational efficiencies, and focus on markets with greater economies of scale.