mustafaU Written by Nick Ackerman. For some background on this monthly publication, here is my view on dividend growth stocks: Dividend growth stocks aren't always the most exciting investments out there. They often aren't grabbing the headlines, and they aren't the stocks running up hundreds of percentages in a year. In fact, they are often some of the least exciting stocks. And that is precisely their strongest selling point. With such a vast world of dividend growth stocks available out there, it is imp ...

Group 1 - Alexander & Baldwin Holdings (ALEX) is a real estate investment trust focused on retail, industrial, and office space primarily in Hawaii and the U.S. Mainland, with a Zacks Consensus Estimate for current year earnings increasing by 5.6% over the last 60 days [1] - ALEX has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 5.3%, which is higher than the industry average of 4.7% [1] - LCI Industries (LCII) supplies components to the recreational vehicle and manufactured housing industries, with a Zacks Consensus Estimate for current year earnings increasing nearly 7.2% over the last 60 days [1] Group 2 - Costamare (CMRE) operates as a containership owner, chartering vessels to liner companies, with a Zacks Consensus Estimate for current year earnings increasing nearly 12.0% over the last 60 days [2] - CMRE has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 3.4%, compared to the industry average of 2.1% [2]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Alexander & Baldwin, Inc. for the quarter ended March 31, 2024, including balance sheets, statements of operations, comprehensive income (loss), cash flows, and equity, along with detailed notes explaining the company's business, accounting policies, financial instruments, debt, segment results, and recent events [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total assets | $1,636,290 | $1,646,241 | | Total liabilities | $629,964 | $643,230 | | Total shareholders' equity | $1,006,326 | $1,003,011 | - Total assets decreased by approximately **$10 million** from December 31, 2023, to March 31, 2024, while total liabilities decreased by approximately **$13.2 million**, and total shareholders' equity increased by approximately **$3.3 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (YoY) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :----------- | | Total operating revenue | $61,202 | $50,390 | +21.5% | | Operating Income (Loss) | $23,783 | $14,244 | +67.0% | | Net Income (Loss) | $19,982 | $5,308 | +276.5% | | Net Income (Loss) Attributable to A&B Shareholders | $19,982 | $5,336 | +274.5% | | Basic EPS | $0.28 | $0.07 | +300.0% | | Diluted EPS | $0.28 | $0.07 | +300.0% | - Operating revenue increased by **$10.8 million**, primarily driven by higher revenues from the Land Operations segment's unimproved and other land sales, as well as the sale of two development parcels at Maui Business Park[101](index=101&type=chunk) - Net income significantly increased by **$14.67 million**, or **3x**, primarily due to improved operating income and a substantial reduction in loss from discontinued operations[100](index=100&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net Income (Loss) | $19,982 | $5,308 | | Other Comprehensive Income (Loss), net of tax | $729 | $(4,049) | | Comprehensive Income (Loss) Attributable to A&B Shareholders | $20,711 | $1,287 | - Other comprehensive income (loss) saw a positive shift from a loss of **$4.05 million** in Q1 2023 to a gain of **$0.73 million** in Q1 2024, mainly due to unrealized interest rate derivative gains[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Activity (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by (used in) operations | $16,061 | $5,511 | | Net cash provided by (used in) investing activities | $11,325 | $711 | | Net cash provided by (used in) financing activities | $(25,220) | $(27,830) | | Net increase (decrease) in cash, cash equivalents, restricted cash, and cash included in assets held for sale | $2,166 | $(21,608) | | Balance, end of period | $15,919 | $12,801 | - Net cash provided by operations increased significantly from **$5.5 million** in Q1 2023 to **$16.1 million** in Q1 2024, primarily due to higher cash proceeds from unimproved land and development sales[18](index=18&type=chunk)[150](index=150&type=chunk) - Investing activities shifted from a net use of cash to a net provision of cash, largely due to **$15.0 million** from discontinued operations in Q1 2024[18](index=18&type=chunk) [Condensed Consolidated Statements of Equity and Redeemable Noncontrolling Interest](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20and%20Redeemable%20Noncontrolling%20Interest) Condensed Consolidated Statements of Equity and Redeemable Noncontrolling Interest (in thousands) | Metric | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Equity | $1,006,326 | $1,020,004 | | Accumulated Other Comprehensive Income (Loss) | $3,979 | $(2,242) | | Distributions in Excess of Accumulated Earnings | $(805,662) | $(785,364) | | Common Stock Stated Value | $1,808,009 | $1,807,610 | | Shares Outstanding | 72,592 | 72,593 | - Total equity decreased slightly year-over-year, while Accumulated Other Comprehensive Income (Loss) significantly improved from a negative balance to a positive one, reflecting gains from interest rate swaps[21](index=21&type=chunk)[79](index=79&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Background and Basis of Presentation](index=9&type=section&id=1.%20Background%20and%20Basis%20of%20Presentation) - Alexander & Baldwin, Inc. (A&B) is a fully integrated REIT headquartered in Honolulu, Hawai'i, operating in two segments: Commercial Real Estate (CRE) and Land Operations[23](index=23&type=chunk) - As of March 31, 2024, the CRE portfolio includes **22 retail centers**, **13 industrial assets**, and **four office properties**, totaling **3.9 million square feet** of gross leasable area, plus **142.0 acres** of commercial land[23](index=23&type=chunk) [2. Significant Accounting Policies](index=9&type=section&id=2.%20Significant%20Accounting%20Policies) - The company is evaluating the impact of new accounting pronouncements ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes) on its financial statements, with ASU 2023-06 (Disclosure Improvements) not expected to have a material impact[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) Interest and Other Income (Expense), Net (in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Interest income | $231 | $90 | | Post-retirement benefit (expense) | $(107) | $(176) | | Gain (loss) on fair value adjustments related to interest rate swaps | $3,675 | $0 | | Financing charges | $(2,350) | $0 | | Other income (expense), net | $(182) | $6 | | **Total Interest and other income (expense), net** | **$1,267** | **$(80)** | [3. Investments in Affiliates](index=10&type=section&id=3.%20Investments%20in%20Affiliates) - The company accounts for equity investments in limited liability companies where it has significant influence using the equity method[33](index=33&type=chunk) Summarized Financial Information of Equity Method Investments (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $39,370 | $37,935 | | Operating costs and expenses | $35,399 | $34,434 | | Gross Profit (Loss) | $3,971 | $3,501 | | Income (Loss) from Continuing Operations | $(700) | $(1,291) | | Income (Loss) related to joint ventures | $700 | $400 | | Return on investment operating cash distributions | $700 | $0 | [4. Fair Value Measurements](index=11&type=section&id=4.%20Fair%20Value%20Measurements) Fair Value of Derivative Financial Instruments (in thousands) | Instrument | Consolidated Balance Sheet Location | March 31, 2024 (Total) | December 31, 2023 (Total) | | :------------------------------------------ | :---------------------------------- | :----------------------- | :----------------------- | | Derivative financial instruments - interest rate swaps (Assets) | Prepaid expenses and other assets | $5,829 | $4,142 | | Derivative financial instruments - interest rate swaps (Liabilities) | Accrued and other liabilities | $0 | $(2,718) | - Interest rate swaps are classified as Level 2 measurements, based on interest rate pricing models and observable inputs[36](index=36&type=chunk) - One CRE improved property met the criteria for classification as held for sale, resulting in a **$2.2 million** impairment charge in 2023, with no additional fair value adjustment in Q1 2024. These are Level 3 measurements[39](index=39&type=chunk) [5. Notes Payable and Other Debt](index=13&type=section&id=5.%20Notes%20Payable%20and%20Other%20Debt) Notes Payable and Other Debt (in thousands) | Debt Type | March 31, 2024 (Principal Outstanding) | December 31, 2023 (Principal Outstanding) | | :-------------------------- | :------------------------------------- | :------------------------------------- | | Secured Debt | $188,341 | $189,713 | | Unsecured Debt | $223,375 | $237,400 | | Revolving Credit Facilities | $46,000 | $37,000 | | **Total debt (contractual)** | **$457,716** | **$464,113** | | Total debt (carrying value) | $457,574 | $463,964 | - Total contractual debt decreased by approximately **$6.4 million** from December 31, 2023, to March 31, 2024[44](index=44&type=chunk) [6. Derivative Instruments](index=13&type=section&id=6.%20Derivative%20Instruments) - The company uses interest rate swaps to manage exposure to interest rate risk on variable-rate debt[46](index=46&type=chunk) Interest Rate Swap Agreements (in thousands) | Agreement Type | Notional Amount at March 31, 2024 | Asset (Liability) Fair Value at March 31, 2024 | Asset (Liability) Fair Value at December 31, 2023 | | :-------------------------------- | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Interest Rate Swap | $52,254 | $4,902 | $4,142 | | Forward Interest Rate Swap 1 | $57,000 | $584 | $(1,144) | | Forward Interest Rate Swap 2 | $73,000 | $343 | $(1,574) | - The company re-designated two forward interest rate swaps as cash flow hedges on February 29, 2024, after de-designating them in December 2023, resulting in a **$3.7 million** gain on valuation adjustment in Q1 2024[49](index=49&type=chunk) [7. Commitments and Contingencies](index=14&type=section&id=7.%20Commitments%20and%20Contingencies) - Bonds related to real estate activities totaled **$18.7 million** as of March 31, 2024, representing commercial bonds issued by third-party sureties[51](index=51&type=chunk) - The company is involved in ongoing legal proceedings concerning water licenses in East Maui, with recent developments including a Circuit Court order in January 2024 invalidating the BLNR's decision for 2016 permits and an ICA opinion in April 2024 holding that Sierra Club was not entitled to a contested case hearing for 2021 permits[52](index=52&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - Management believes that reasonably possible losses from all legal actions would not have a material effect on the company's consolidated financial statements[65](index=65&type=chunk) [8. Revenue and Contract Balances](index=18&type=section&id=8.%20Revenue%20and%20Contract%20Balances) Operating Revenue by Segment (in thousands) | Segment | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Commercial Real Estate | $48,888 | $47,870 | | Land Operations | $12,314 | $2,520 | | **Total operating revenue** | **$61,202** | **$50,390** | - Land Operations revenue increased significantly from **$2.52 million** in Q1 2023 to **$12.31 million** in Q1 2024, driven by development sales and unimproved/other property sales[68](index=68&type=chunk) Contract Balances (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Accounts receivable, net | $3,715 | $4,533 | | Deferred revenue | $72,460 | $70,353 | [9. Leases - The Company as a Lessor](index=19&type=section&id=9.%20Leases%20-%20The%20Company%20as%20a%20Lessor) Total Rental Income (in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Lease payments | $33,612 | $33,094 | | Variable lease payments | $15,649 | $15,644 | | Revenues deemed uncollectible, net | $(216) | $(724) | | **Total rental income** | **$49,045** | **$48,014** | Contractual Future Lease Payments to be Received (in thousands) | Year | Amount | | :--- | :----- | | 2024 | $97,815 | | 2025 | $120,052 | | 2026 | $106,642 | | 2027 | $94,345 | | 2028 | $79,135 | | 2029 | $62,174 | | Thereafter | $509,979 | | **Total future lease payments to be received** | **$1,070,142** | [10. Leases - The Company as a Lessee](index=19&type=section&id=10.%20Leases%20-%20The%20Company%20as%20a%20Lessee) Total Lease Cost (in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Operating lease cost | $477 | $596 | | Finance lease cost | $119 | $49 | | **Total lease cost - operating and finance leases** | **$596** | **$645** | [11. Share-based Payment Awards](index=20&type=section&id=11.%20Share-based%20Payment%20Awards) - The company granted approximately **310,100** restricted stock unit awards in Q1 2024 with a weighted average grant date fair value of **$17.91**, compared to **310,200** awards at **$22.36** in Q1 2023[73](index=73&type=chunk) Share-based Expense (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Time-based and market-based restricted stock units | $1,126 | $1,576 | [12. Income Taxes](index=20&type=section&id=12.%20Income%20Taxes) - The company operates as a REIT for federal income tax purposes and believes it will continue to qualify[75](index=75&type=chunk) - Tax years 2020 and later are open to audit, but management does not expect potential audits to have a material adverse effect[75](index=75&type=chunk) [13. Earnings Per Share ("EPS")](index=20&type=section&id=13.%20Earnings%20Per%20Share%20(%22EPS%22)) Reconciliation of Income (Loss) to Net Income (Loss) Available to A&B Common Shareholders (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Income (loss) from continuing operations | $20,238 | $9,506 | | Net income (loss) available to A&B common shareholders | $19,974 | $5,306 | Weighted-Average Number of Shares Outstanding (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Denominator for basic EPS | 72,545 | 72,549 | | Denominator for diluted EPS | 72,666 | 72,629 | [14. Accumulated Other Comprehensive Income (Loss)](index=21&type=section&id=14.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Components of Accumulated Other Comprehensive Income (Loss) (in thousands) | Component | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Post-retirement plans | $(133) | $(150) | | Non-qualified benefit plans | $(48) | $(31) | | Interest rate swap | $4,160 | $3,431 | | **Total Accumulated other comprehensive income (loss)** | **$3,979** | **$3,250** | - Accumulated other comprehensive income (loss) increased by **$729 thousand** in Q1 2024, primarily due to unrealized interest rate hedging gains[81](index=81&type=chunk) [15. Segment Results](index=22&type=section&id=15.%20Segment%20Results) Operating Revenue by Segment (in thousands) | Segment | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Commercial Real Estate | $48,888 | $47,870 | | Land Operations | $12,314 | $2,520 | | **Total operating revenue** | **$61,202** | **$50,390** | Operating Profit (Loss) by Segment (in thousands) | Segment | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Commercial Real Estate | $21,981 | $20,877 | | Land Operations | $7,931 | $(92) | | **Total operating profit (loss)** | **$29,912** | **$20,785** | - Land Operations segment shifted from an operating loss of **$92 thousand** in Q1 2023 to an operating profit of **$7.93 million** in Q1 2024[83](index=83&type=chunk) [16. Held for Sale and Discontinued Operations](index=22&type=section&id=16.%20Held%20for%20Sale%20and%20Discontinued%20Operations) - Waipouli Town Center, a retail property, was classified as held for sale as of November 15, 2023, but is not considered discontinued operations as it does not represent a strategic shift or material impact[84](index=84&type=chunk) Income (Loss) from Discontinued Operations (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Revenue | $0 | $36,849 | | Operating income (loss) from discontinued operations | $(256) | $(4,187) | | Income (loss) from discontinued operations attributable to A&B Shareholders | $(256) | $(4,170) | - Loss from discontinued operations significantly decreased from **$4.2 million** in Q1 2023 (primarily Grace Disposal Group) to **$0.26 million** in Q1 2024 (related to former sugar operations cessation expenses)[85](index=85&type=chunk)[86](index=86&type=chunk) [17. Subsequent Events](index=24&type=section&id=17.%20Subsequent%20Events) - On April 15, 2024, the company entered into an unsecured note purchase and private shelf facility with Prudential for up to **$300.0 million**, and issued a **$60.0 million** Series M Note with a **6.09%** coupon rate maturing on April 15, 2032[88](index=88&type=chunk) - On April 23, 2024, the Board of Directors declared a cash dividend of **$0.2225 per share**, payable on July 8, 2024[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of Alexander & Baldwin, Inc.'s financial condition, results of operations, and liquidity for the three months ended March 31, 2024, compared to the prior year, covering business segments, consolidated performance, segment-specific results, non-GAAP financial measures, and capital resources, highlighting the company's simplification strategy and operational improvements [Introduction and Objective](index=25&type=section&id=Introduction%20and%20Objective) - The MD&A provides material information on the company's business, financial condition, results of operations, liquidity, and accounting policies, to be read with the condensed consolidated financial statements[91](index=91&type=chunk)[94](index=94&type=chunk) [Business Overview](index=26&type=section&id=Business%20Overview) - The company operates two segments: Commercial Real Estate (CRE), focused on owning, operating, and leasing retail, industrial, and office properties in Hawai'i, and Land Operations, which manages legacy landholdings and assets for monetization[97](index=97&type=chunk)[98](index=98&type=chunk) - A&B has pursued a simplification strategy since 2016, culminating in the sale of Grace Pacific, LLC and quarry land in November 2023, to focus on its Hawai'i commercial real estate portfolio[97](index=97&type=chunk) - In Q1 2024, the Land Operations segment completed the sale of approximately **330 acres** of land on Maui and Kauai for **$9.6 million**[97](index=97&type=chunk) [Consolidated Results of Operations](index=27&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated Financial Results (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :------------------------------------------ | :------ | :------ | :--------- | :--------- | | Operating revenue | $61,202 | $50,390 | $10,812 | 21.5% | | Cost of operations | $(30,203) | $(28,534) | $(1,669) | (5.8)% | | Selling, general and administrative | $(7,239) | $(8,729) | $1,490 | 17.1% | | Operating income (loss) | $23,783 | $14,244 | $9,539 | 67.0% | | Net income (loss) attributable to A&B | $19,982 | $5,336 | $14,646 | 3X | | Basic EPS - continuing operations | $0.28 | $0.13 | $0.15 | 115.4% | | Basic EPS - net income (loss) | $0.28 | $0.07 | $0.21 | 3X | | FFO | $29,205 | $18,568 | $10,637 | 57.3% | | Adjusted FFO | $25,530 | $16,012 | $9,518 | 59.4% | - Operating revenue increased by **21.5%** due to higher Land Operations sales, while operating income surged by **67.0%**[100](index=100&type=chunk)[101](index=101&type=chunk) - Net income attributable to A&B shareholders more than tripled, driven by improved continuing operations and a significant reduction in losses from discontinued operations[100](index=100&type=chunk)[105](index=105&type=chunk) [Analysis of Operating Revenue and Profit by Segment](index=29&type=section&id=Analysis%20of%20Operating%20Revenue%20and%20Profit%20by%20Segment) [Commercial Real Estate](index=29&type=section&id=Commercial%20Real%20Estate) Commercial Real Estate Financial Results (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :------------------------------------------ | :------ | :------ | :--------- | :--------- | | Operating revenue | $48,888 | $47,870 | $1,018 | 2.1% | | Operating profit (loss) | $21,981 | $20,877 | $1,104 | 5.3% | | Net Operating Income ("NOI") | $31,764 | $30,427 | $1,337 | 4.4% | | Same-Store Net Operating Income ("Same-Store NOI") | $31,547 | $30,313 | $1,234 | 4.1% | - CRE operating revenue and profit increased due to higher rental revenue and lower net bad debt expense[107](index=107&type=chunk) - Leasing activity in Q1 2024 included **12 new leases** and **32 renewal leases** covering **212,000 square feet**. Comparable new leases saw an **11.8%** average base rent increase, and comparable renewal leases saw a **7.2%** increase[109](index=109&type=chunk) Occupancy Rates | Occupancy Type | March 31, 2024 | March 31, 2023 | Basis Points Change | | :-------------------------- | :------------- | :------------- | :------------------ | | Leased Occupancy | 94.0% | 93.9% | 10 | | Physical Occupancy | 93.5% | 93.3% | 20 | | Economic Occupancy | 92.3% | 92.4% | (10) | [Land Operations](index=31&type=section&id=Land%20Operations) - Land Operations revenue of **$12.3 million** in Q1 2024 was primarily from unimproved and other land sales on Maui and Kauai, and sales of two development parcels at Maui Business Park[124](index=124&type=chunk) Land Operations Financial Results (in thousands) | Metric | Q1 2024 | Q1 2023 | | :------------------------------------------ | :------ | :------ | | Development sales revenue | $2,455 | $0 | | Unimproved/other property sales revenue | $9,625 | $850 | | Other operating revenue | $234 | $1,670 | | **Total Land Operations operating revenue** | **$12,314** | **$2,520** | | **Total Land Operations operating profit (loss)** | **$7,931** | **$(92)** | - The segment achieved an operating profit of **$7.9 million** in Q1 2024, a significant improvement from a **$0.1 million** loss in Q1 2023, driven by land sales and equity in earnings from an unconsolidated materials company[125](index=125&type=chunk)[127](index=127&type=chunk) [Use of Non-GAAP Financial Measures](index=32&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) [Funds from Operations and Adjusted Funds From Operations](index=32&type=section&id=Funds%20from%20Operations%20and%20Adjusted%20Funds%20From%20Operations) - FFO is a non-GAAP measure used to evaluate REIT operating performance, excluding real estate depreciation/amortization, gains/losses from real estate sales, and discontinued operations related to legacy businesses[129](index=129&type=chunk)[130](index=130&type=chunk) - Adjusted FFO further adjusts FFO by excluding share-based compensation, straight-line lease revenue, non-cash adjustments, maintenance capital expenditures, leasing commissions, and other non-comparable/non-operating items[131](index=131&type=chunk) FFO and Adjusted FFO Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :------------------------------------------ | :------ | :------ | | Net Income (Loss) available to A&B common shareholders | $19,974 | $5,306 | | **FFO** | **$29,205** | **$18,568** | | **Adjusted FFO** | **$25,530** | **$16,012** | [Net Operating Income and Same-Store Net Operating Income](index=34&type=section&id=Net%20Operating%20Income%20and%20Same-Store%20Net%20Operating%20Income) - NOI is a non-GAAP measure for evaluating unlevered performance of the Commercial Real Estate portfolio, reflecting contract-based income and cash-based property-level expenses[136](index=136&type=chunk)[137](index=137&type=chunk) - Same-Store NOI includes results from properties owned, operated, and stabilized for the entirety of the prior calendar year and current reporting period, excluding properties under development or acquired/sold[138](index=138&type=chunk)[139](index=139&type=chunk) NOI and Same-Store NOI Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | | CRE Operating Profit | $21,981 | $20,877 | | **NOI** | **$31,764** | **$30,427** | | **Same-Store NOI** | **$31,547** | **$30,313** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources include operating cash flows, available cash, and borrowing capacity under its credit facility. Primary needs are contractual obligations, capital expenditures, shareholder distributions, and working capital[142](index=142&type=chunk) - As of March 31, 2024, the company had **$411.6 million** in fixed-rate debt (**4.2%** weighted average) and **$46.0 million** in variable-rate debt (**6.5%** weighted average), with **$163.2 million** due in the next twelve months[144](index=144&type=chunk) - Operating cash flows from continuing operations increased by **$3.8 million** to **$16.5 million** in Q1 2024, driven by higher cash proceeds from land sales[150](index=150&type=chunk) Capital Expenditures by Type (in thousands) | Capital Expenditure Type | Q1 2024 | Q1 2023 | | :------------------------------------------ | :------ | :------ | | Ongoing maintenance capital expenditures | $2,018 | $1,312 | | Discretionary capital expenditures | $1,022 | $1,063 | | Capitalized indirect costs | $666 | $617 | | Corporate and other capital expenditures | $40 | $26 | | **Total Capital Expenditures** | **$3,746** | **$3,018** | [Other Matters](index=39&type=section&id=Other%20Matters) - General economic conditions, including market volatility, supply chain/labor constraints, inflation, and natural disasters, can negatively impact operating results[159](index=159&type=chunk) - The ultimate impact of these trends on the company's business, financial condition, results of operations, and liquidity is highly uncertain and cannot be reasonably predicted[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's most recent annual report on Form 10-K for detailed information on market risk, stating that there have been no material changes since December 31, 2023 - No material changes in quantitative and qualitative disclosures about market risk since December 31, 2023[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of March 31, 2024, and states that there have been no material changes in internal control over financial reporting during the fiscal first quarter - The company's disclosure controls and procedures were effective as of March 31, 2024[164](index=164&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal first quarter[165](index=165&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed information on legal proceedings and other contingencies provided in Note 7 of the Condensed Consolidated Financial Statements - Information on legal proceedings is incorporated from Note 7 of the financial statements[168](index=168&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's most recent annual report on Form 10-K - No material changes to risk factors since the most recent annual report on Form 10-K[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that no unregistered equity securities were sold during the reporting period and provides an update on the company's common stock repurchase program, under which no shares were repurchased in Q1 2024 - No equity securities were sold by the company that were not registered under the Securities Act during the period[170](index=170&type=chunk) - The Board authorized a **$100.0 million** common stock repurchase program from January 1, 2024, to December 31, 2025[170](index=170&type=chunk) - No shares were repurchased under the program during the quarter ended March 31, 2024, leaving **$100.0 million** available[171](index=171&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section states that none of the company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[172](index=172&type=chunk) [Item 6. Exhibit Index](index=42&type=section&id=Item%206.%20Exhibit%20Index) This section provides a list of exhibits filed with the Form 10-Q, including material contracts, certifications, and XBRL-formatted financial data - Includes the Third Amended and Restated Note Purchase and Private Shelf Agreement dated April 15, 2024[174](index=174&type=chunk) - Certifications of the Chief Executive Officer and Chief Financial Officer are included as exhibits[174](index=174&type=chunk) - Financial statements are formatted in Inline XBRL[174](index=174&type=chunk) [Signature](index=43&type=section&id=Signature) This section contains the signatures of authorized officers, including the Executive Vice President, Chief Financial Officer and Treasurer, and the Vice President and Controller, certifying the filing of the report - The report was signed by Clayton K.Y. Chun, Executive Vice President, Chief Financial Officer and Treasurer, and Anthony J. Tommasino, Vice President and Controller, on April 26, 2024[178](index=178&type=chunk)

Financial Data and Key Metrics Changes - Total NOI growth was 4.4%, with same-store NOI growth of 4.1% and 3.9% when excluding collections of previously reserved amounts [8] - Net income available to shareholders was $20 million or $0.28 per diluted share, compared to $18.6 million or $0.26 per diluted share in the same quarter last year [12] - FFO was $29.2 million or $0.40 per diluted share, an increase from $18.6 million or $0.26 per diluted share in Q1 2023 [12][13] - G&A expenses decreased by $1.5 million or 17.1% to $7.2 million compared to $8.7 million in Q1 2023 [14] Business Line Data and Key Metrics Changes - In the Land Operations segment, over 300 acres of land were sold, generating nearly $7.9 million in operating profit, compared to an operating loss of $92,000 in the same period last year [9] - The company executed 44 leases in its improved property portfolio for approximately 212,000 square feet, achieving blended spreads of 7.8% [8] Market Data and Key Metrics Changes - Unemployment in Hawaii was 3.1% at the end of February, lower than the national average of 3.9% [11] - Visitor arrivals in Hawaii were flat at 1.5 million in the first two months of 2024 compared to 2023, with arrivals from Japan more than 80% higher than the same period in 2023 [11] Company Strategy and Development Direction - The company plans to continue prioritizing the sale of non-core assets and is raising its guidance for 2024 based on strong Q1 results [9][17] - The company is focusing on internal growth initiatives and is encouraged by external investment opportunities being underwritten [20] Management's Comments on Operating Environment and Future Outlook - Management indicated that the economic environment remains favorable, with expectations for retail and industrial assets to perform consistently [17][33] - The company expects same-store NOI growth to be slightly negative in the second quarter of 2024 due to prior year rent step-ups and tenant move-outs [18][42] Other Important Information - The company is transitioning from reporting core FFO to AFFO, which was $25.5 million or $0.35 per diluted share for Q1 2024, compared to $16 million or $0.22 per diluted share in the same period last year [13] - Total debt outstanding was $458 million, with total liquidity of $470 million [15] Q&A Session Summary Question: How much was the FFO from land sales in the first quarter? - The $0.11 in revised guidance reflects the actual impact of first-quarter performance [22] Question: What are the plans for the space vacated at Waianae Mall? - Discussions are ongoing for a backfill with a high credit tenant, and the company is optimistic about finalizing a deal [25] Question: How do you view the balance of industrial and retail property types? - The company sees favorable market conditions across all asset classes and is agnostic regarding capital allocation between different property types [33] Question: What is the expected impact of the land sales on overhead expenses? - The land sales are expected to eliminate a few hundred thousand dollars in carrying costs as part of the simplification process [39] Question: What is the company's long-term target for leverage? - The long-term target for net debt-to-EBITDA is 5 to 6 times, and the company is currently in good shape from a balance sheet perspective [54]

Premier Commercial Real Estate Company First Quarter 2024 Earnings Presentation April 25, 2024 Safe Harbor Statement Statements in this presentation that are not historical facts are forward-looking statements within t ...

Alexander & Baldwin, Inc. Reports First Quarter 2024 Results HONOLULU, HI (April 25, 2024) /PRNewswire/—Alexander & Baldwin, Inc. (NYSE: ALEX) ("A&B" or "Company"), a Hawai‘i- based owner, operator and developer of high-quality commercial real estate in Hawai‘i, today announced net income available to A&B common shareholders of $20.0 million, or $0.28 per diluted share, and Commercial Real Estate ("CRE") operating profit of $22.0 million for the first quarter of 2024. Q1 2024 Highlights • Funds From Operati ...

Core Viewpoint - Alexander & Baldwin, Inc. has successfully completed a private placement of a $60 million unsecured note, which will be utilized to pay down existing mortgage debt and for general corporate purposes [1][2]. Group 1: Financial Details - The Series M Note has a fixed interest rate of 6.09% and matures on April 15, 2032 [1]. - Proceeds from the Series M Note will be used to pay down the mortgage note secured by Laulani Village, which matures on May 1, 2024 [1]. - Interest on the Series M Note will be paid semi-annually, with the principal due at maturity [1]. Group 2: Management Commentary - Clayton Chun, A&B's CFO, expressed satisfaction with the financing arrangement, highlighting its role in extending debt maturity and maintaining a balance sheet primarily composed of fixed-rate unsecured debt [2]. - The company plans to utilize a Forward Interest Rate Swap with a fixed rate of 4.88% to manage variable interest payments on its revolving credit facility starting May 1, 2024 [2]. Group 3: Company Overview - Alexander & Baldwin, Inc. is the only publicly-traded real estate investment trust focused exclusively on commercial real estate in Hawai'i and is the largest owner of grocery-anchored neighborhood shopping centers in the state [3]. - The company manages approximately 3.9 million square feet of commercial space, including 22 retail centers, 13 industrial assets, and four office properties, along with 142.0 acres of ground lease assets [3]. - Over its 154-year history, A&B has played a significant role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, and commercial real estate [3].

HONOLULU, April 8, 2024 /PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE: ALEX) (A&B) will report results for the first quarter 2024, after the market closes, on Thursday, April 25, 2024. In connection with this announcement, A&B will host a conference call and webcast on Thursday, April 25, 2024, at 5:00 p.m. ET. The call and webcast will feature a discussion on first quarter 2024 operating and financial performance, followed by questions from sell-side research analysts participating in the interactive por ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Alexander & Baldwin, Inc. (ALEX) is a Hawai’i-based exclusive publicly-traded real estate investment trust. The Zacks Consensus Estimate for its current year earnings has been revised nearly 6% downward over the last 60 days.Cisco Systems, Inc. (CSCO) is a company that engages is the business of internet protocol based networking and other products. The Zacks Consensus Estimate for its current year earnings has been revised 5.1% downw ...

Alexander & Baldwin, Inc. (NYSE:ALEX) Q4 2023 Earnings Conference Call February 28, 2024 5:00 PM ET Company Participants Steve Swett – Investor Relations Lance Parker – Chief Executive Officer Clayton Chun – Chief Financial Officer Kit Millan – Senior Vice President, Asset Management Conference Call Participants Rob Stevenson – Janney Alexander Goldfarb – Piper Sandler Mitch Germain – Citizens JMP Brendan McCarthy – Sidoti Operator Good day, and welcome to the Fourth Quarter and Full Year 2023 Alexander & B ...