Is a 33% Slide a Buying Opportunity? Inside One Fund’s New $4.4 Million American Assets Trust Position

New York City-based Argosy-Lionbridge Management disclosed a new position in American Assets Trust (NYSE:AAT) on November 14, revealing that it initiated an approximately $4.4 million stake as of September 30.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Argosy-Lionbridge Management initiated a new position in American Assets Trust (NYSE:AAT) by acquiring 214,863 shares valued at $4.4 million during the third quarter. The move increased the fund’s portfolio to 14 reportable positions totaling $152 million in U.S. equities.

What Else to Know

American Assets Trust now accounts for 2.9% of Argosy-Lionbridge’s reportable assets under management.

Top holdings after the filing:

• NYSE: REXR: $24.9 million (16.4% of AUM)
• NYSE: AIV: $23.1 million (15.2% of AUM)
• NYSE: ELME: $21.5 million (14.1% of AUM)
• NYSE: FR: $20.8 million (13.7% of AUM)
• NYSE: LEN: $19.6 million (12.9% of AUM)

As of Monday, shares of American Assets Trust were priced at $18.55, down 33% over the past year and well underperforming the S&P 500, which is up 12% in the same period.

Company Overview

Company Snapshot

• American Assets Trust owns and manages a diversified portfolio of office, retail, mixed-use, and multifamily properties concentrated in high-barrier-to-entry U.S. markets.
• The company operates as a vertically integrated REIT, generating revenue primarily through rental income and property management across office, retail, and residential segments.
• It serves commercial tenants, retailers, and residents in dynamic metropolitan areas, including Southern and Northern California, Oregon, Washington, Texas, and Hawaii.

American Assets Trust, Inc. is a real estate investment trust with over five decades of experience in acquiring, developing, and managing premier properties in select U.S. markets. The company leverages its deep market knowledge and integrated platform to deliver stable income and long-term value through a diversified portfolio. Its strategic focus on high-demand, supply-constrained regions provides a competitive advantage in tenant retention and asset performance.

Foolish Take

A fresh position in a beaten-down REIT can often signal a value call — and Argosy-Lionbridge’s move into American Assets Trust fits that pattern. The stock has lagged badly for years, but the company continues to produce stable cash flow, reaffirm rent growth in key markets, and even raise full-year guidance — all while maintaining a strong balance sheet. That combination makes this an investment worth watching.

The fund’s disclosure of a new $4.4 million stake comes as American Assets Trust posted third-quarter funds from operations (FFO) of $0.49 per share. Though that was lower than the $0.71 posted one year earlier, the firm did lift its full-year FFO outlook to a midpoint of $1.97 (up $0.02 from prior guidance). Leasing spreads remained healthy, with office and retail renewals capturing cash rent increases of 9% and 4%, respectively, and occupancy across multifamily portfolios also remained resilient.

For long-term investors, the setup is straightforward: AAT’s fundamentals look steadier than its stock chart suggests, and high-quality, supply-constrained markets tend to reward patience. Rising guidance amid a depressed share price could mark an inflection point — if leasing and occupancy trends continue to stabilize.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC if above a certain threshold.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: Annual dividend payment expressed as a percentage of a stock's current price.
Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
High-barrier-to-entry markets: Geographic areas where it is difficult for new competitors to enter due to regulations, costs, or limited available properties.
Vertically integrated: A company structure where multiple stages of production or service, from acquisition to management, are controlled in-house.
Mixed-use properties: Real estate developments combining residential, commercial, and/or retail spaces within a single project or building.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lennar. The Motley Fool has a disclosure policy.