American Assets Finding Success After IPO

http://www.reit.com Despite a rocky market when it held its initial public offering in January 2011, American Assets Trust Inc. (NYSE: AAT) seemed to hit a window that was supportive of its pricing, according to John Chamberlain, the company's president and CEO.

Chamberlain sat down with REIT.com for a video interview at REITWeek 2011: NAREIT's Investor Forum at the Waldorf=Astoria in New York to discuss the company's decision to go public. The company held its IPO on Jan. 13, 2011, raising $564 million. It marked the largest U.S. REIT IPO since Connecticut-based Starwood Property Trust Inc. (NYSE: STWD) went public in August 2009, raising more than $930 million.

"We were six times oversubscribed and were able to conclude things in relatively short order. Having access to capital through the public markets is something that is described as the next natural step in our company," Chamberlain said.

Prior to going public, Chamberlain said, the company was essentially being financed by the "checkbook" of Ernest Rady, the firm's chairman.

Chamberlain added that by the time of its IPO, American Assets had reached a size, scope and complexity that required it to leave the private market and head into the public domain. In the company's 45-year history, it had grown to include multiple sectors, with a portfolio that included industrial, retail and office buildings.

In addition, Chamberlain noted that American Assets has changed its geographic focus in conjunction with the IPO. The company decided to concentrate the bulk of its efforts in markets along the West Coast.

"While at one point our portfolio was spread across the United States and Canada, we deliberately began focusing our investment activity on the West Coast," he said. "On our road show, we made it clear that there were a number of coastal markets we were looking at."

American Assets recently announced acquisitions in Portland. Chamberlain said the company is looking forward to expanding to other markets on the West Coast, including Santa Barbara, Calif., and Seattle.

American Assets is headquartered in San Diego and was formed from the real estate business of privately held corporation American Assets Inc., which was founded in 1967.

By Matt Bechard

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