Financial Performance - Alexander & Baldwin Holdings, Inc. reported quarterly funds from operations (FFO) of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing an increase from $0.35 per share a year ago, resulting in an FFO surprise of 28.57% [1] - The company posted revenues of $53.74 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.94%, although this represents a decline from year-ago revenues of $61.2 million [2] Market Performance - Alexander & Baldwin Holdings shares have declined approximately 6.2% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The company has consistently outperformed consensus FFO estimates over the last four quarters [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.29 on revenues of $52.5 million, and for the current fiscal year, it is $1.16 on revenues of $210.7 million [7] - The estimate revisions trend for Alexander & Baldwin Holdings is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust - Other industry, to which Alexander & Baldwin Holdings belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - The company reported a same store NOI growth of 4.2% for the quarter, with total NOI from the commercial real estate portfolio at $33.2 million, a 4.6% increase from Q1 of the previous year [9][14] - Total FFO was $0.36 per share for Q1 2025, which includes $0.06 from land operations and $0.30 from CRE and corporate [14][15] - G&A expenses decreased by $200,000 or 3.4% compared to the same period last year, totaling approximately $7 million [15] Business Line Data and Key Metrics Changes - The company executed 42 leases representing approximately 237,000 square feet of GLA and $5.6 million of ABR [11] - Leased occupancy was 95.4%, up 80 basis points sequentially and 140 basis points year-over-year [12] - Economic occupancy at quarter end was 93.9%, reflecting a 100 basis point increase from the previous quarter and a 160 basis point increase from the same period last year [12] Market Data and Key Metrics Changes - The company transferred a five-acre lot at Maui Business Park into its ground lease portfolio, signing a 75-year lease with a self-storage developer [10] - The ground lease transaction is expected to contribute nearly $0.01 in FFO for 2025 [10][27] Company Strategy and Development Direction - The company is focused on improving its CRE portfolio performance, pursuing internal and external growth, and streamlining its business and cost structure [9] - The management emphasized a commitment to a Hawaii-focused asset class diverse strategy, with the self-storage investment representing a strategic move into a new asset class [10][27] - The company is actively looking for additional growth opportunities despite macroeconomic uncertainties [17][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic uncertainty but noted that tenant metrics remain positive, with no significant concerns reported from tenants [20][29] - The company is taking proactive measures to mitigate potential impacts from tariffs on construction costs by pre-purchasing materials [30][55] - Management expressed confidence in navigating challenges due to their experience and historical resilience [20] Other Important Information - The company raised its total FFO guidance to a range of $1.17 to $1.23 per share, while maintaining guidance for same store NOI growth of 2.4% to 3.2% [17] - The company paid a first-quarter dividend of $0.025 per share and declared a second-quarter dividend of the same amount [16] Q&A Session Summary Question: Can you provide details on the self-storage transaction and the equity investment opportunity? - The self-storage deal involved converting non-income producing land into long-term rental income through a 75-year ground lease, with an opportunity to invest about 20% of the equity capital stack [24][27] Question: What are the current concerns from tenants regarding macroeconomic conditions? - Management reported no significant concerns from tenants, with leasing activity remaining robust despite some soft data discussions [29][38] Question: How does the company view its guidance in light of strong Q1 performance? - The company maintained a cautious approach in its guidance due to macroeconomic uncertainties, despite a strong Q1 performance [39][42] Question: Are there any anticipated fluctuations in occupancy or FFO due to move-outs? - Management indicated no known issues that would impact occupancy or FFO significantly for the remainder of the year [59] Question: Is there potential for additional legacy issues impacting future earnings? - While there is always a possibility of legacy issues arising, management does not anticipate any extraordinary impacts in the near term [65][66]

Financial Data and Key Metrics Changes - The company reported a same store NOI growth of 4.2% for the quarter, with total NOI from the commercial real estate portfolio at $33.2 million, representing a 4.6% increase from Q1 of the previous year [9][14] - Total FFO was $0.36 per share for Q1 2025, consisting of $0.06 from land operations and $0.30 from CRE and corporate, reflecting an 11.1% increase when normalized for previous adjustments [14][15] - The company raised its total FFO guidance to a range of $1.17 to $1.23 per share, while maintaining guidance for same store NOI growth of 2.4% to 3.2% [18] Business Line Data and Key Metrics Changes - The company executed 42 leases in its improved property portfolio, representing approximately 237,000 square feet of GLA and $5.6 million of ABR [11] - Leased occupancy was reported at 95.4%, up 80 basis points sequentially and 140 basis points year-over-year [12] - The company sold 90 acres of primarily agricultural zoned land, contributing approximately $0.06 million to land operations earnings for the quarter [10] Market Data and Key Metrics Changes - The company noted a significant lease at Kakaako Commerce Center, increasing leased occupancy to 95.6% at quarter end compared to 83.2% last quarter [10] - Economic occupancy at quarter end was 93.9%, up 100 basis points from the previous quarter and 160 basis points from the same period last year [12] Company Strategy and Development Direction - The company is focused on improving its CRE portfolio performance, internal and external growth, and streamlining its business and cost structure [9] - The recent ground lease transaction at Maui Business Park is seen as a strategic move to convert non-income producing land into long-term rental income, with plans for a self-storage facility [10][27] - The company aims to maintain a Hawaii-focused asset class diverse strategy while exploring opportunities in self-storage as a natural adjacency [10][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic uncertainty but emphasized strong first-quarter results and the ability to manage through challenges [21] - There have been no significant concerns from tenants regarding their operations, and leasing activity remains robust despite some discussions around tariffs [29][37] - The company is taking proactive measures to mitigate potential impacts from rising construction costs due to tariffs by pre-purchasing materials [30][55] Other Important Information - The company maintains a strong balance sheet with total liquidity of over $300 million and a net debt to adjusted EBITDA ratio of 3.6 times [16] - The first quarter dividend of $0.025 per share was paid on April 7, with a second quarter dividend declared [17] Q&A Session Summary Question: Can you provide details on the self-storage transaction and the equity investment opportunity? - The self-storage transaction involved a 75-year ground lease, converting non-income producing land into long-term rental income, with an immediate financial benefit of about a penny of FFO for 2025 [24][26] Question: What are the current concerns from tenants regarding macroeconomic conditions? - Management reported no real-time concerns from tenants, with positive metrics in tenant interest and sales [29][30] Question: How does the company view its guidance in light of strong Q1 performance? - The company maintained guidance for certain metrics due to macroeconomic uncertainties, despite a strong first quarter performance [39][41] Question: Are there any anticipated fluctuations in occupancy or FFO due to move-outs? - Management indicated no known issues that would impact occupancy or FFO significantly for the remainder of the year [59] Question: Is there potential for additional growth opportunities beyond the Maui Business Park deal? - The company is actively looking for additional growth opportunities and remains optimistic about placing capital later in the year [70]

Financial Performance - Net income available to A&B common shareholders for Q1 2025 was $21.4 million, or $0.29 per diluted share, compared to $19.9 million, or $0.28 per diluted share in Q1 2024[2][6]. - Net income for the three months ended March 31, 2025, was $21,433,000, an increase of 7.2% compared to $19,982,000 in 2024[27]. - The company reported a net income of $61.988 million for the trailing twelve months ending March 31, 2025[46]. Funds From Operations (FFO) - Funds From Operations (FFO) for Q1 2025 was $26.3 million, or $0.36 per diluted share, down from $29.2 million, or $0.40 per diluted share in Q1 2024[7][6]. - Funds From Operations (FFO) for the three months ended March 31, 2025, was $26,346,000, down from $29,205,000 in 2024, indicating a decrease of 9.9%[37]. - Funds from operations (FFO) per diluted share for Q1 2025 was $0.36, with full-year guidance between $1.13 and $1.23[39]. Revenue and Operating Income - Total segment operating revenue for Q1 2025 was $53.7 million, down from $61.2 million in Q1 2024[22]. - Commercial Real Estate (CRE) operating profit increased to $23.4 million in Q1 2025 from $22.0 million in Q1 2024, with CRE Same-Store Net Operating Income (NOI) growth of 4.2%[4][9]. - Same-Store NOI for the three months ended March 31, 2025, was $32,389,000, reflecting a 4.2% increase from $31,090,000 in 2024[32]. Cash Flow and Liquidity - Operating cash flows from continuing operations increased to $25,882,000, up from $16,464,000, representing a 57.5% increase year-over-year[27]. - Total liquidity as of March 31, 2025, was $323.9 million, consisting of $16.9 million in cash and $307.0 million available on the revolving line of credit[16]. - Total cash, cash equivalents, and restricted cash at the end of the period was $17,552,000, down from $15,919,000 at the end of the same period in 2024[27]. Debt and Capital Expenditures - Total debt as of March 31, 2025, was $452.843 million, a decrease from $474.837 million as of December 31, 2024[42]. - Net debt as of March 31, 2025, was $436.315 million, down from $441.748 million at the end of 2024[42]. - The Company incurred capital expenditures of $4,169,000 for property, plant, and equipment during the three months ended March 31, 2025, compared to $3,746,000 in 2024[27]. Dividends and Guidance - The company declared a second quarter 2025 dividend of $0.2250 per share, payable on July 9, 2025[16]. - The company revised its 2025 guidance, projecting FFO per diluted share to be between $1.17 and $1.23, compared to the initial guidance of $1.13 to $1.20[18]. - Net income available to A&B common shareholders per diluted share for Q1 2025 was $0.29, with full-year guidance ranging from $0.64 to $0.74[39]. Impairment and Future Outlook - The company identified non-cash impairment as a non-recurring item affecting its financial performance[45]. - The company anticipates future growth opportunities and strategies, although specific projections are subject to market conditions and other risks[47].

Group 1 - The Board of Directors of Alexander & Baldwin, Inc. approved a second quarter 2025 dividend of $0.225 per share, payable on July 9, 2025, to shareholders of record as of June 13, 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]

Core Insights - Alexander & Baldwin, Inc. has executed a 75-year ground lease for 4.7 acres at its Maui Business Park Phase II project, indicating strong commercial activity and interest in the area [1][2] - The lease agreement is with a prominent self-storage developer, which aligns with the company's strategy to transform non-income generating land into productive assets [2] - Maui Business Park Phase II is a 125-acre mixed-use development that has attracted various businesses and is located near key infrastructure such as Kahului Harbor and Kahului Airport [3] Company Overview - Alexander & Baldwin, Inc. 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 [4] - The company manages approximately 4.0 million square feet of commercial space in Hawai'i, including 21 retail centers, 14 industrial assets, and four office properties [4] - Over its 155-year history, the company has played a significant role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, and commercial real estate [4]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha benefits from Cress's expertise in quantitative strategies, which form the foundation of its Quant Rating system designed to provide insights for investors [1][2] - The platform offers a systematic stock recommendation tool, Alpha Picks, aimed at helping long-term investors build high-quality portfolios [1] Industry Experience - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as a knowledgeable figure in the investment industry [4]

Core Viewpoint - Alexander & Baldwin, Inc. (A&B) will report its first quarter 2025 results on April 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 [4]. - 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 142 acres of ground lease assets [4]. - Over its 155-year history, A&B has played a significant role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, residential, and commercial real estate [4].

Alexander & Baldwin Holdings, Inc. (ALEX) closed the last trading session at $17.58, gaining 0.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $22 indicates a 25.1% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $1.41. While the lowest estimate of $21 indicates a 19.5% increase from the current price level, the most optimi ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RLJ, APLE, ARE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. A Buy, Sell, or Hold rating in this article does not constitute a Buy, Sell, or Hold recommendation. All investors should exercise t ...