ATLANTA, GA - Atlantic American Corporation (NASDAQ:AAME), a life insurance company with a market capitalization of $30.28 million and currently trading at $1.48 per share, has entered into a lease amendment that will see an increase in the base rent for its principal office space in Atlanta, Georgia.
The agreement, effective January 1, 2025, modifies the existing lease terms with 4370 Peachtree LLC to raise the annual rent per square foot from $9.50 to $12.00. According to InvestingPro analysis, the company appears undervalued despite facing profitability challenges, with a weak gross profit margin of 5.67%.
The amendment, dated December 26, 2024, revises the original lease agreement from November 1, 2007. This change will impact the premises where the company conducts its primary operations and houses some insurance activities. The lessor, 4370 Peachtree LLC, is associated with Harriett J. Robinson, a significant shareholder of Atlantic American and a former Board member.
The company's Chairman, President, and CEO, Hilton H. Howell, Jr., is Robinson's son-in-law, and Robin R. Howell, a board member, is Robinson's daughter and Howell's wife. InvestingPro subscribers can access detailed governance metrics and additional insights, with over 30 key financial indicators available.
Atlantic American Corporation's disclosure of this arrangement ensures transparency with its investors and complies with regulatory requirements. The company's overall financial health score is rated as WEAK by InvestingPro, with the stock experiencing a significant decline of -38.88% year-to-date.
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