American Assets Trust Founder Buys $3 Million in Stock After Management Voices 'Significant Frustration' With Share Price

February 20, 2026 · by Fintool Agent

AAT

Ernest Rady, the founder and Executive Chairman of American Assets Trust (NYSE: AAT), spent approximately $3 million buying company stock over three consecutive trading days this week—his largest open-market purchase since May 2023 and a signal of conviction just two weeks after management publicly called the stock's valuation "significantly frustrating."

SEC filings show Rady acquired 159,866 shares between February 17-19 at prices ranging from $18.53 to $18.83 per share. 1 The purchases increase his beneficial ownership to over 8 million shares—representing roughly 35.6% of the San Diego-based REIT on a fully diluted basis. 2

The transaction details:

What makes this purchase notable: Rady has never sold a single share of AAT since the company went public in 2011.

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The Timing: Two Weeks After an Earnings Call That Aired Management's Frustration

On February 4, during AAT's Q4 2025 earnings call, CEO Adam Wyll made unusually candid remarks about the company's stock price:

"I want to address a point of significant frustration for our management team and board, which is our current share price. It is clear that many listed real estate companies have remained largely out of favor with the broader investment community throughout much of 2025, often trading at a substantial discount to the intrinsic value and quality of the underlying assets. AAT is no exception. The public market valuation, in our view, fails to reflect the trophy nature of our primarily coastal portfolio and our long-term growth prospects." 1

Two weeks later, Rady backed up those words with $3 million of his own money.

The stock currently trades at $18.87—down approximately 17% from its 52-week high of $22.79 and roughly flat since Rady's previous major buying spree in May 2023, when he purchased nearly $18 million worth of shares at similar price levels.

The Pattern: Rady Buys the Dip, Never Sells

This isn't the first time Rady has stepped in when AAT shares have been under pressure. In May 2023, when the stock traded in the $17-19 range amid regional banking fears and commercial real estate concerns, Rady purchased approximately 940,000 shares worth ~$18 million over a two-week period.

His buying history reveals a consistent pattern:

• 71 total open-market purchases since the 2011 IPO
• Zero sales—ever
• Purchases tend to cluster when shares trade in the $17-19 range
• Current total stake: ~8 million shares worth ~$150 million

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The Fundamental Picture: Earnings Reset, Dividend Maintained

AAT's Q4 2025 results showed a challenging year for the diversified REIT:

For full-year 2025, FFO came in at $2.00 per share versus $2.58 in 2024—a 22% decline driven by higher interest expense from a $525 million senior notes issuance, the sale of Del Monte Center, and pressure from office occupancy.

2026 guidance calls for FFO of $1.96-$2.10 per share (midpoint $2.03), representing a modest 1.5% improvement at the midpoint. 2

Despite the earnings pressure, AAT maintained its quarterly dividend at $0.34 per share ($1.36 annually), giving the stock a yield of approximately 7.2% at current prices. Management expects dividend coverage to improve as office developments stabilize. 3

Portfolio Snapshot: Office Challenges, Retail Strength

AAT's diversified portfolio spans office, retail, multifamily, and mixed-use properties across coastal markets in California, Washington, Oregon, Texas, and Hawaii. The current leasing picture shows bifurcation:

Management is targeting 86-88% office occupancy by year-end 2026, viewing the current year as "a period of stabilization and recovery" rather than expecting rapid improvement. 4

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What to Watch

Near-term catalysts:

• Q1 2026 earnings (expected late April)
• Progress on One Beach Street office leasing
• Office occupancy trajectory toward 86-88% target

Key risks:

• Continued office market weakness in San Diego and Portland
• Higher-for-longer interest rates pressuring cap rates
• Tourism softness at Waikiki Beach Walk mixed-use property

For Rady, the decision appears straightforward: at these prices, he'd rather own more of the company he founded 55+ years ago than hold the cash. Whether the market agrees with his valuation of AAT's "trophy" coastal assets remains to be seen—but the founder is putting his money where his mouth is.

Related:

• American Assets Trust Company Profile