Morgan Stanley Discusses American Assets Trust Management-held Investor Day

According to a research report released by Morgan Stanley, American Assets Trust AAT turned out a bullish result for both retail and hotel assets on management-held investor day in Oahu. “AAT's portfolio includes Waikele Center, Waikiki Beach Walk (hotel & retail), and the Shops at Kalakaua. Year-on-year RevPAR trends at Beach Walk are positive; ADR is up, driving margins. At Waikele, management is backfilling Borders with Gap Outlet, opening shortly, and another outlet concept that could take occupancy in the fall (rents ~10% above Borders). Waikele is adjacent to Simon's outlet center (the centers share a shuttle), so the leasing is synergistic and reflects on the strength of outlet tenant demand,” Morgan Stanley recapped in the report. Morgan Stanley maintains its Overweight rating on American Assets Trust, which closed yesterday at $21.47.