Executive Summary & Q2 2025 Highlights Alexander & Baldwin reported strong Q2 2025 financial results, including increased net income and FFO, robust CRE Same-Store NOI growth, and an upward revision of full-year guidance [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Highlights) A&B reported **$25.1 million** net income and **$35.2 million** FFO for Q2 2025, with **5.3%** CRE Same-Store NOI growth Q2 2025 Key Financial Metrics (dollars in thousands) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------------ | :------ | :------ | | Net income available to A&B common shareholders | $25,128 | $9,104 | | Diluted earnings per share available to A&B | $0.35 | $0.13 | | FFO | $35,155 | $20,619 | | FFO per diluted share | $0.48 | $0.28 | | FFO per share related to CRE and Corporate | $0.29 | $0.28 | | Selling, general and administrative expense | $7,014 | $7,252 | - CRE Same-Store Net Operating Income ("NOI") growth of **5.3%**[6](index=6&type=chunk) - Leased occupancy as of June 30, 2025, was **95.8%**[6](index=6&type=chunk) - Comparable blended leasing spreads for the improved portfolio were **6.8%**[6](index=6&type=chunk) - Began pre-construction of two new buildings at Komohana Industrial Park that will add **105,000 sq. ft** of GLA, and pre-leased one building to a national tenant on a build-to-suit basis[6](index=6&type=chunk) Segment Financial & Operating Results This section details Commercial Real Estate and Land Operations performance, covering revenue, profit, occupancy, and development [Commercial Real Estate (CRE) Financial Results](index=2&type=section&id=CRE%20Financial%20Results%20for%20Q2%202025) Q2 2025 CRE operating revenue rose to **$50.7 million**, profit slightly decreased, and Same-Store NOI grew **5.3%** CRE Financial Results (dollars in thousands) | (dollars in thousands) | 2025 | 2024 | | :--------------------- | :--- | :--- | | CRE operating revenue | $50,731 | $49,208 | | CRE operating profit | $22,205 | $22,611 | | Same-Store NOI | $32,732 | $31,088 | | Same-Store NOI Growth | 5.3 % | 0.9 % | [Commercial Real Estate (CRE) Operating Metrics](index=2&type=section&id=CRE%20Operating%20Results%20for%20Q2%202025) Total leased occupancy improved to **95.8%** as of June 30, 2025, with **6.8%** comparable leasing spreads CRE Leased Occupancy Rates | Leased Occupancy | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change from prior quarter | Change from prior year | | :----------------------- | :------------ | :------------- | :------------ | :------------------------ | :--------------------- | | Total leased occupancy | 95.8% | 95.4% | 93.9% | 40 bps | 190 bps | | Retail portfolio occupancy | 95.4% | 95.2% | 92.8% | 20 bps | 260 bps | | Industrial portfolio occupancy | 98.2% | 97.3% | 97.1% | 90 bps | 110 bps | - During the second quarter of 2025, the Company executed a total of **52** improved-property leases for approximately **183,800 square feet** of gross leasable area or **$6.1 million** of annualized base rent, and two ground leases[13](index=13&type=chunk) - Comparable leasing spreads in our improved property portfolio were **6.8%** for the second quarter of 2025, which included **7.4%** for retail spaces and **4.7%** for industrial spaces[13](index=13&type=chunk) [Commercial Real Estate (CRE) Investment and Development Activity](index=2&type=section&id=CRE%20Investment%20Activity%20for%20Q2%202025) Pre-construction began for two new buildings at Komohana Industrial Park, including a **91,000-square-foot** build-to-suit for Lowe's - Pre-construction of two new buildings began at Komohana Industrial Park, including a **91,000-square-foot** build-to-suit distribution center pre-leased to Lowe's and a **30,000-square-foot** spec building. Construction is expected to be completed in the fourth quarter of 2026[14](index=14&type=chunk) - Construction continues for the **29,550-square-foot** warehouse and distribution center at Maui Business Park, which is pre-leased and expected to be placed in service in the first quarter of 2026[14](index=14&type=chunk) [Land Operations Performance](index=2&type=section&id=Land%20Operations) Land Operations generated an operating profit of **$13.9 million** for Q2 2025, primarily from legacy obligations and land sales - Land Operations operating profit was **$13.9 million** for the second quarter of 2025, due primarily to the resolution of legacy obligations, income from operations at a legacy joint venture and land sale margin[11](index=11&type=chunk) Financial Position & Capital Management This section reviews the company's financial position, including liquidity, debt, and dividend declarations [Liquidity and Debt](index=2&type=section&id=Balance%20Sheet%2C%20Capital%20Markets%20Activities%2C%20and%20Liquidity) As of June 30, 2025, A&B maintained **$307.6 million** total liquidity and a Net Debt to TTM Adjusted EBITDA ratio of **3.3x** - As of June 30, 2025, the Company had total liquidity of **$307.6 million**, consisting of cash on hand of **$8.6 million** and **$299.0 million** available on its revolving line of credit[14](index=14&type=chunk) - Net Debt to Trailing Twelve Months ("TTM") Consolidated Adjusted EBITDA was **3.3 times** as of June 30, 2025, with TTM Consolidated Adjusted EBITDA of **$135.6 million** for the twelve months ended June 30, 2025[14](index=14&type=chunk) [Dividends](index=2&type=section&id=Dividend) The company paid a Q2 2025 dividend of **$0.2250 per share** and declared an identical dividend for Q3 2025 - The Company paid a second quarter 2025 dividend of **$0.2250 per share** on July 9, 2025[14](index=14&type=chunk) - The Company's Board declared a third quarter 2025 dividend of **$0.2250 per share**, payable on October 7, 2025, to shareholders of record as of the close of business on September 12, 2025[14](index=14&type=chunk) Outlook & Company Information This section provides updated full-year 2025 guidance and an overview of Alexander & Baldwin's Hawai'i business [2025 Full-Year Guidance Update](index=3&type=section&id=2025%20Full-Year%20Guidance) A&B increased its full-year 2025 guidance for diluted EPS, FFO, and CRE Same-Store NOI growth 2025 Full-Year Guidance (per diluted share) | Metric | 2025 YTD Actual | Current Guidance | Previous Guidance | | :------------------------------------------------- | :-------------- | :--------------- | :---------------- | | Net Income (Loss) available to A&B common shareholders per diluted share | $0.64 | $0.91 to $0.96 | $0.68 to $0.74 | | FFO per diluted share | $0.84 | $1.35 to $1.40 | $1.17 to $1.23 | | FFO per share related to CRE and Corporate | $0.59 | $1.12 to $1.16 | $1.11 to $1.16 | | CRE Same-Store NOI growth % | 4.7% | 3.4% to 3.8% | 2.4% to 3.2% | [About Alexander & Baldwin](index=3&type=section&id=ABOUT%20ALEXANDER%20%26%20BALDWIN) A&B is a publicly-traded REIT focused on Hawai'i commercial real estate, managing **four million square feet** - Alexander & Baldwin, Inc. (NYSE: ALEX) (A&B) is the only publicly-traded real estate investment trust to focus exclusively on Hawai'i commercial real estate and is the state's largest owner of grocery-anchored, neighborhood shopping centers[17](index=17&type=chunk) - A&B owns, operates and manages approximately **four million square feet** of commercial space in Hawai'i, including **21** retail centers, **14** industrial assets, **four** office properties, and **146 acres** of ground lease assets[17](index=17&type=chunk) - Over its **155-year** history, A&B has evolved with the state's economy and played a leadership role in the development of various industries[17](index=17&type=chunk) Detailed Financial Statements This section presents detailed segment data, consolidated income statements, balance sheets, and cash flow statements [Segment Data and Income Statement](index=4&type=section&id=SEGMENT%20DATA%20%26%20OTHER%20FINANCIAL%20INFORMATION) This section provides detailed segment-level operating revenue and profit, alongside a consolidated income statement for

Core Insights - Alexander & Baldwin, Inc. reported a net income of $25.1 million, or $0.35 per diluted share, for Q2 2025, a significant increase from $9.1 million, or $0.13 per diluted share, in Q2 2024 [1][4][19] - The company raised its guidance for 2025, reflecting confidence in its high-quality portfolio and internal growth strategy [3][14] Financial Performance - The company achieved a Commercial Real Estate (CRE) operating profit of $22.2 million for Q2 2025, compared to $22.6 million in Q2 2024 [4][19] - Funds From Operations (FFO) were reported at $35.2 million, or $0.48 per diluted share, up from $20.6 million, or $0.28 per diluted share, in the same quarter last year [4][29] - Same-Store Net Operating Income (NOI) grew by 5.3% year-over-year, reaching $32.7 million [6][8][27] Leasing and Occupancy - The total leased occupancy rate as of June 30, 2025, was 95.8%, an increase from 93.9% a year earlier [11] - The company executed 52 improved-property leases for approximately 183,800 square feet, generating $6.1 million in annualized base rent [9] - Comparable blended leasing spreads for the improved portfolio were 6.8%, with retail spaces at 7.4% and industrial spaces at 4.7% [9] Investment and Development Activities - The company began pre-construction of two new buildings at Komohana Industrial Park, which will add 105,000 square feet of Gross Leasable Area (GLA) [8][18] - Construction is ongoing for a 29,550-square-foot warehouse and distribution center at Maui Business Park, expected to be operational in Q1 2026 [18] Balance Sheet and Liquidity - As of June 30, 2025, the company had total liquidity of $307.6 million, including $8.6 million in cash and $299 million available on its revolving line of credit [18] - The net debt to trailing twelve months (TTM) Consolidated Adjusted EBITDA ratio was 3.3 times, with TTM Consolidated Adjusted EBITDA of $135.6 million [18] Dividend Information - The company paid a dividend of $0.2250 per share for Q2 2025 and declared the same amount for Q3 2025, payable on October 7, 2025 [18]

Group 1 - The Board of Directors of Alexander & Baldwin, Inc. approved a third quarter 2025 dividend of $0.225 per share, payable on October 7, 2025, to shareholders of record as of September 12, 2025 [1] Group 2 - Alexander & Baldwin, Inc. is the only publicly-traded real estate investment trust focusing exclusively on Hawai'i commercial real estate and is the largest owner of grocery-anchored neighborhood shopping centers in the state [2] - The company owns, operates, and manages approximately 4.0 million square feet of commercial space in Hawai'i, including 21 retail centers, 14 industrial assets, four office properties, and 146 acres of ground lease assets [2] - Over its 155-year history, Alexander & Baldwin has played a leadership role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, residential, and commercial real estate [2]

REIT Performance Overview - In June, REITs achieved an average total return of +2.56%, but underperformed compared to broader market indices such as NASDAQ (+6.6%), S&P 500 (+5.1%), and Dow Jones (+4.5%) [1] - The Vanguard Real Estate ETF (VNQ) underperformed the average REIT in June (+0.69% vs. +2.56%) but has outperformed year-to-date (+2.01% vs. -5.65%) [1] - The spread between 2025 FFO multiples of large cap REITs (17.6x) and small cap REITs (13.3x) narrowed, with large caps contracting by 0.2 turns and small caps expanding by 0.4 turns [1] Property Type Performance - 72.22% of REIT property types averaged positive returns in June, with an 11.07% total return spread between the best (Office +7.60%) and worst (Self-Storage -3.47%) performing property types [5][6] - Over the first half of 2025, large cap REITs outperformed small caps by 581 basis points, while micro cap REITs (+7.19%) outperformed larger peers in June [3] Year-to-Date Performance - The average year-to-date total return for REITs in 2025 is -5.65%, which is worse than the -3.86% return for the REIT sector in the first half of 2024 [12] - Health Care (+8.98%) and Casinos (+7.35%) were the top performers over the first half of the year, while Hotel (-15.35%), Office (-15.27%), and Shopping Center REITs (-13.66%) struggled with double-digit declines [7][10] Price/FFO Metrics - The average P/FFO for the REIT sector increased from 13.6x to 13.7x in June, with 50% of property types experiencing multiple expansion [8] - Data Centers (27.6x), Land (24x), and Multifamily (23x) currently trade at the highest average multiples among REIT property types, while Hotels (6.3x), Offices (8.9x), and Malls (9.1x) have single-digit FFO multiples [8][9] Individual Securities Performance - Wheeler REIT (WHLR) led the sector in June with a return of +52.26%, but has the worst total return in the first half of 2025 at -98.72% [10] - Presidio Property Trust (SQFT) closed the first half of the year with a -34.62% year-to-date total return, having regained compliance with NASDAQ's minimum bid price requirement through a reverse stock split [11] Dividend Yield Insights - High dividend yields are a significant attraction for investors in the REIT sector, with many REITs trading below their NAV, resulting in attractive yields [15]

Core Insights - Chipotle Mexican Grill is partnering with artist Alex Warren to host a unique album listening party for his new album, "You'll Be Alright, Kid," at nearly 4,000 locations across the U.S., Canada, UK, and France on July 17, 2025 [1][2][8] - The album will officially debut on streaming platforms on July 18, 2025, with pre-orders available [3][8] - The event aims to enhance customer engagement by combining music and dining experiences, showcasing Chipotle's commitment to music curation in its restaurants [5] Company Initiatives - The Alex Warren Bowl, featuring a specific menu item, was launched in April 2025 and is available for a limited time through the Chipotle app and website [4] - Customers who order the Alex Warren Bowl during the listening party will have a chance to win an autographed vinyl album [4][6] - Chipotle is also a presenting partner of Warren's world tour, collaborating to share exclusive content and experiences [5] Artist Background - Alex Warren has achieved significant success with his single "Ordinary," which has spent multiple weeks at 1 on the Billboard Hot 100 and has over 2.4 billion total career streams [10][11] - His upcoming album will include new tracks and is positioned as a continuation of his previous work, focusing on themes of healing and resilience [10][12] - Warren has been recognized as a breakout star in 2025, with accolades from various music platforms and a successful global tour [10][12]

Core Viewpoint - Eighteen publicly traded US real estate investment trusts (REITs) are projected to increase their dividend payouts in the third quarter, as per forecasts from S&P Global Market Intelligence [2] Group 1: Dividend Payouts - Eighteen REITs are expected to raise their dividends in Q3 [2] - The analysis includes a total of 137 public REITs, with 119 not projected to increase dividends [2]

Core Viewpoint - Alexander & Baldwin, Inc. (A&B) will report its second quarter 2025 results on July 24, 2025, and will host a conference call and webcast to discuss its operating and financial performance [1][2]. Company Overview - A&B is the only publicly-traded real estate investment trust focused exclusively on Hawai'i commercial real estate and is the largest owner of grocery-anchored neighborhood shopping centers in the state [5]. - The company owns, operates, and manages approximately 4.0 million square feet of commercial space in Hawai'i, which includes 21 retail centers, 14 industrial assets, and four office properties, along with 146 acres of ground lease assets [5]. - Over its 155-year history, A&B has played a leadership role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, residential, and commercial real estate [5]. Conference Call Details - The conference call and webcast will feature discussions led by senior management, including the president and CEO, CFO, and other executives [3]. - Participants can listen to the call by dialing in at least five minutes prior to the start time, with specific numbers provided for domestic and international callers [3]. - Access to the webcast will be available online, and earnings documents will be downloadable from A&B's investor website after the market closes on the reporting date [4].

Portfolio Overview - The company has a portfolio of 39 properties with 4.0 million sq ft of GLA and a leased occupancy of 95.4%[4] - The ground lease portfolio covers 145.5 acres with a weighted average lease term of 13.7 years[4,55] - The company's TTM NOI is $128.9 million, with Retail/Grocery contributing 63% ($81.3 million), Industrial 18% ($22.7 million), and Ground Lease 16% ($20.7 million)[26] Market Dynamics - Honolulu's household income is the highest out of all comparable markets[13] - Conservation land accounts for 48% (1,973,792 acres) and agricultural & rural land accounts for 47% (1,937,698 acres) of the state acreage[20] - Urban land only accounts for 5% (200,898 acres) of the state acreage[20] Retail Portfolio - The retail portfolio consists of 21 properties with 2.5 million GLA and a leased occupancy of 95.2%[28] - The retail portfolio's NOI is $21.6 million with an ABR PSF of $37.62 and a weighted average lease term of 6.1 years[28] - The average retail SS NOI growth since REIT conversion is 3.7%[28] Industrial Portfolio - The industrial portfolio includes 14 properties with 1.4 million GLA and a leased occupancy of 97.3%[45] - The industrial portfolio's NOI is $5.6 million with an ABR PSF of $16.79 and a weighted average lease term of 4.0 years[45] - The average industrial SS NOI growth since REIT conversion is 4.8%[45] Ground Lease Portfolio - The ground lease portfolio covers 145.5 acres and generates $5.0 million in NOI[55] - The 5-year NOI CAGR for the ground lease portfolio is 5.7% with a weighted average lease term of 13.7 years[56] Capital and Liquidity - The company has total liquidity of $324 million, including $17 million in cash and $307 million in undrawn revolver capacity[121] - Total debt is $453 million, with 97.1% at fixed rates and a weighted-average interest rate of 4.65%[121,122] Guidance - The company's full-year 2025 guidance for FFO per diluted share is $1.17 to $1.23[129] - The company's full-year 2025 guidance for CRE Same-Store NOI is 2.4% to 3.2%[129]

Summary of Alexander & Baldwin (ALEX) 2025 Conference Call Company Overview - **Company Name**: Alexander & Baldwin (ALEX) - **Type**: Diversified Hawaiian Real Estate Investment Trust (REIT) - **History**: Established 155 years ago, converted to a REIT in 2017 - **Focus**: Exclusively operates in Hawaii, leveraging unique market conditions and high barriers to entry [2][4] Portfolio Composition - **Net Operating Income (NOI) Breakdown**: - Retail: Approximately 66% (primarily grocery-anchored) [4][6] - Industrial: About 18% [5][6] - Ground Leases: Roughly 17% [5][6] - Office: Approximately 3-4% (considered non-strategic) [5][9] Growth Opportunities - **Retail Sector**: Strong fundamentals with potential for tenant demand growth; many large retailers lack a presence in Hawaii, presenting long-term opportunities [6][7] - **Industrial Sector**: Extremely tight market with a vacancy rate of 1.2% on Oahu; logistical challenges create opportunities for growth [7][8] - **Existing Portfolio**: High occupancy rates (95.4% overall, 95.2% in retail) with potential for further increases [11] Recent Transactions and Developments - **Maui Business Park**: Secured a 75-year ground lease with a self-storage developer; ongoing construction of a 30,000 square foot industrial building [13][15] - **Oahu Developments**: Building a 21,000 square foot facility pre-leased to Lowe's, capitalizing on retail-driven industrial demand [16][17] Financial Metrics - **Debt Metrics**: Net debt to adjusted EBITDA ratio of 3.6 times; total liquidity over $300 million [26] - **Dividend Policy**: Targets a payout of 100% of re-taxable income; consistent dividend payer since REIT conversion [27][28] Economic Context - **Tourism Impact**: Tourism accounts for about 20% of Hawaii's GDP; visitor counts up 3.2% year-to-date compared to 2024, though still below pre-COVID levels [30][31] - **Government Spending**: Also represents about 20% of GDP; stable federal funding due to Hawaii's strategic military importance [32][33] Challenges and Barriers - **Zoning and Development**: High barriers to entry for new developments; lengthy entitlement processes can take years [39][40] - **Construction Costs**: Elevated due to reliance on imported materials; management's local expertise helps navigate these challenges [41] Investment Thesis - **Differentiated Strategy**: Focused on Hawaii with a diverse asset class portfolio; historically strong performance with a CAGR in same-store NOI growth [42][43] - **Valuation Opportunity**: Current stock price does not reflect the underlying real estate value and growth potential [44] Conclusion - **Overall Positioning**: Alexander & Baldwin presents a unique investment opportunity in a specialized market with strong fundamentals and growth potential, despite challenges in development and construction [42][44]

Core Insights - Alexander & Baldwin, Inc. (A&B) is participating in Nareit's REITweek: 2025 Investor Conference in New York, where the management will present an overview of the company's business and operations [1][2] - The presentation is scheduled for June 3, 2025, from 9:30 a.m. to 10:00 a.m. Eastern Time, and will be accessible via a webcast [2] - A&B is the only publicly-traded real estate investment trust focused exclusively on Hawai'i commercial real estate, owning approximately 4.0 million square feet of commercial space in the state [3] Company Overview - A&B is the largest owner of grocery-anchored neighborhood shopping centers in Hawai'i, managing 21 retail centers, 14 industrial assets, and four office properties, along with 146 acres of ground lease assets [3] - The company has a 155-year history and has played a significant role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, and commercial real estate [3]