ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. American Assets Trust's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.74%.
As of today (2026-06-25), American Assets Trust's WACC % is 7.84%. American Assets Trust's ROC % is 3.58% (calculated using TTM income statement data).
American Assets Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
American Assets Trust (NYSE:AAT) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, American Assets Trust's WACC % is 7.84%. American Assets Trust's ROC % is 3.58% (calculated using TTM income statement data).
American Assets Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Assets Trust (AAT) has a ROC % of 3.74% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Assets Trust and its competitors.
Is American Assets Trust's ROC % too high?
American Assets Trust's current ROC % is 3.74%. The REITs industry median ROC % is 3.74. American Assets Trust's value of 3.74% is 0% at this industry median. Overall, American Assets Trust has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Assets Trust's ROC % compare to SAFE and ESRT?
American Assets Trust's ROC % of 3.74% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. American Assets Trust's value of 3.74% is 0% at this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Assets Trust's current ROC % of 3.74% is 0% at the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Assets Trust and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Assets Trust's current ROC % is 3.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Assets Trust stock overvalued right now?
Based on GuruFocus' analysis, American Assets Trust (AAT) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.60, compared to a current price of $24.15 — trading 17.2% above its estimated fair value. The current ROC % is 3.74% and 0% at the REITs industry median of 3.74. American Assets Trust's overall GF Score™ is 71/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For American Assets Trust (AAT), the current ROC % is 3.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Assets Trust (AAT) Overvalued in 2026?
Based on GuruFocus' analysis, American Assets Trust stock appears to be overvalued.
The current stock price of $24.15 is trading 17.2% above its estimated GF Value™ of $20.60.
GuruFocus considers American Assets Trust to be Modestly Overvalued.
Key valuation signals for AAT:
ROC %: 3.74%
GF Value™: $20.60 vs. price of $24.15 (17.2% above fair value)
No single metric tells the full story. See the AAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Assets Trust Inc is a self-administered real estate investment trust based in the United States. The company invests in, operates, and develops retail, office, residential, and mixed-use properties. Properties are predominantly located in South California, Northern California, Oregon, Washington, and Hawaii. American Assets operates through four segments based on property type: retail; office; mixed-use, which consists of retail and hotel components; and multifamily, which includes the company's apartment properties. The retail and office segments collectively contribute the majority of the total revenue.
71GF Score
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