Overall Score

Revenue Model

AAT remains a diversified REIT with income supported by property cash flows and a 5.9% dividend yield.

Revenue quality is steady but not high-growth, with TTM price-to-sales at 3.19x and EV-to-sales at 6.85x.

Profitability

Margins are solid for a REIT, with gross margin at 60.6% and operating margin at 22.8%.

Bottom-line profitability remains modest, with net margin at 4.7% and return on equity at 1.8%.

Cash Flow

Cash generation is adequate, with free cash flow yield at 6.3% and operating cash flow coverage remaining strong.

Capital intensity is manageable, with capex at 18.2% of revenue and capex-to-operating cash flow at 47.4%.

Balance Sheet

Leverage remains elevated, with net debt-to-EBITDA at 6.9x and debt-to-assets at 59.4%.

Liquidity appears very strong on paper, with a current ratio of 111.5x and cash ratio of 61.2x.

Business Quality

The business benefits from recurring property cash flows and a negative cash conversion cycle of -96.4 days.

However, returns on capital remain only modest, with ROIC at 3.4% and ROCE at 3.5%.