Core Insights - Alexander & Baldwin reported a significant GAAP earnings per share (EPS) of $0.35 for Q2 2025, exceeding expectations of $0.33, while GAAP operating revenue was slightly below expectations at $50.7 million [1][2] - The company raised its full-year guidance for earnings and other key financial metrics, reflecting strong demand in leasing and robust occupancy [1][12] Financial Performance - EPS (GAAP) increased by 169.2% year-over-year from $0.13 in Q2 2024 to $0.35 in Q2 2025 [2][5] - GAAP revenue rose to $51.7 million, a 5.1% increase from $49.2 million in Q2 2024 [2][6] - Funds from operations (FFO) per diluted share (non-GAAP) increased by 71.4% to $0.48 [2][5] - Same-store net operating income (NOI) growth (non-GAAP) was 5.3%, significantly higher than the 0.9% increase in Q2 2024 [2][6] Business Overview - Alexander & Baldwin is a Hawaii-based real estate investment trust (REIT) managing a portfolio of commercial properties, including 21 retail centers and 14 industrial properties [3][4] - The company benefits from high barriers to entry in the Hawaii market, which helps maintain high occupancy rates [4] Leasing Activity - The company signed 52 improved-property leases covering approximately 183,800 square feet, generating $6.1 million in new annualized rent [7] - Leasing spreads increased by 6.8% overall, with retail leases up 7.4% and industrial leasing spreads up 4.7% [7] Segment Performance - Land Operations saw a significant profit increase to $13.9 million, primarily due to one-time items [8] - Internal growth projects are advancing, including pre-construction of new buildings at Komohana Industrial Park and ongoing work at Maui Business Park [9][10] Financial Position - As of June 30, 2025, the company had $307.6 million in total liquidity, with a net debt to trailing twelve months adjusted EBITDA ratio of 3.3x [11] - The Board declared a regular quarterly dividend of $0.225 per share, maintaining a stable payout pattern [11][13] Future Outlook - Full-year 2025 EPS guidance was raised to $0.91–$0.96 per share, and FFO guidance was increased to $1.35–$1.40 per diluted share [12] - Same-store NOI growth expectations for FY2025 improved to 3.4%–3.8%, indicating optimism about ongoing leasing and rent growth [12]

Core Insights - Alexander & Baldwin Holdings, Inc. reported $51.7 million in revenue for the quarter ended June 2025, reflecting a year-over-year increase of 1.3% and an EPS of $0.48 compared to $0.16 a year ago [1] - The reported revenue slightly exceeded the Zacks Consensus Estimate of $51.6 million, resulting in a surprise of +0.2%, while the EPS surprise was +23.08% against a consensus estimate of $0.39 [1] Financial Performance - Operating Revenue from Commercial Real Estate was $50.73 million, which was below the estimated $51.12 million, but showed a year-over-year increase of +3.1% [4] - Operating Revenue from Land Operations was reported at $0.97 million, significantly lower than the estimated $6.85 million, indicating a year-over-year decline of -47.2% [4] - Diluted earnings per share were reported at $0.35, surpassing the average estimate of $0.22 based on three analysts [4] Market Performance - Shares of Alexander & Baldwin Holdings have returned +1.9% over the past month, in contrast to the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Alexander & Baldwin Holdings, Inc. reported quarterly funds from operations (FFO) of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.28 per share a year ago, indicating a positive performance trend [1][2] Financial Performance - The company achieved revenues of $51.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.20% and up from $51.05 million year-over-year [2] - Over the last four quarters, Alexander & Baldwin Holdings has consistently exceeded consensus FFO estimates [2] Stock Performance and Outlook - The stock has gained approximately 1.2% since the beginning of the year, while the S&P 500 has increased by 8.1%, indicating underperformance relative to the broader market [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the sustainability of the recent FFO numbers [3][4] Estimate Revisions and Market Position - The current consensus FFO estimate for the upcoming quarter is $0.29 on revenues of $52 million, and for the current fiscal year, it is $1.33 on revenues of $208.15 million [7] - The estimate revisions trend prior to the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry, to which Alexander & Baldwin Holdings belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - The company reported a second quarter NOI of $33.6 million, reflecting a 6.3% increase year-over-year, driven by a 5.3% same store NOI growth [12][14] - FFO per share for Q2 was $0.29, a 3.6% increase from the same quarter last year, while total company FFO was $0.48 per share, up $0.20 from Q2 of the previous year [12][14] - General and administrative expenses decreased by 3.3% year-over-year to approximately $7 million for the quarter [13] Business Line Data and Key Metrics Changes - The company executed 52 leases in its improved property portfolio, representing approximately 184,000 square feet of GLA and $6.1 million of ABR [9] - Blended leasing spreads were reported at 6.8% on a comparable basis, with leased occupancy at 95.8%, up 40 basis points sequentially and 190 basis points year-over-year [10] - Economic occupancy at quarter end was 94.8%, an increase of 90 basis points from the previous quarter and 200 basis points from the same period last year [10] Market Data and Key Metrics Changes - The transaction market in Hawaii is beginning to open up, with the company seeing a number of exciting acquisition opportunities [9] - The company noted that while there is active capital looking for opportunities in Hawaii, it remains competitive, particularly in the mid-range deal sizes [46][47] Company Strategy and Development Direction - The company is focused on three priorities for 2025: improving CRE portfolio performance, internal and external growth, and streamlining business and cost structure [6] - The company is actively adding to its industrial asset base through current developments and is optimistic about future acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in portfolio performance and growth prospects, raising the 2025 guidance for same store NOI to a range of 3.4% to 3.8% [14][15] - Management acknowledged potential challenges in the third quarter due to strong results in the same period last year, but expects the fourth quarter to align more closely with first half performance [49] Other Important Information - The company has total liquidity of over $300 million and a net debt to adjusted EBITDA ratio of 3.3 times, with approximately 95% of its debt at fixed rates [14] - A second quarter dividend of $0.025 per share was paid, with a third quarter dividend declared at the same rate [14] Q&A Session Summary Question: Improvement in the transaction market - Management noted that the market is starting to open up with more opportunities across asset classes, although no specific deal profiles were highlighted [20] Question: Comparable leasing spreads - Management explained that while the leasing activity was strong, there were no major outliers affecting the spreads, leading to a slight decrease compared to previous quarters [21][22] Question: Below market lease expirations - Management indicated that growth is driven by market fundamentals rather than specific mark-to-market opportunities, with strong sales and foot traffic supporting performance [25][26] Question: Impact of Sam's Club TI on AFFO - Management clarified that the $20 million TI is considered non-recurring for AFFO calculations, as it is atypical and related to a long-term lease extension [30][56] Question: Legacy issues and future obligations - Management expressed confidence that they are fully reserved for legacy obligations and do not expect any material issues in the near term [42][43] Question: Competitive landscape in investment sales - Management acknowledged active competition in the market but emphasized their local knowledge and balance sheet strength as competitive advantages [46][47] Question: Same store growth dynamics - Management explained that while the first half of the year showed strong performance, the third quarter's growth may be impacted by strong results from the previous year [49] Question: Health of tenants - Management reported no signs of trouble among tenants, with strong customer traffic and sales trends observed [75] Question: Impact of tariffs on construction costs - Management noted that inflation has impacted construction costs, but they are taking measures to mitigate these risks [76]

Financial Performance - The company achieved a 6.3% NOI growth in Q2 2025[12] - Same-store NOI growth was 5.3%[10, 12, 35] - Spreads for new & renewal leases were 6.8%[12] - Net income was $25.1 million, or $0.35 per diluted share[15] - FFO was $35.2 million, or $0.48 per diluted share[15] - FFO related to CRE and Corporate was $21.2 million, or $0.29 per diluted share[15] Occupancy and Leases - Leased occupancy reached 95.8% as of June 30, 2025[12] - Economic occupancy was 94.8% as of June 30, 2025[12] - ABR for SNO leases was $5.8 million[12] Financial Position - The company's net debt to TTM Consolidated Adjusted EBITDA was 3.3x, compared to 3.6x in Q4 2024[23] - 95.3% of the company's debt was at fixed rates, with a weighted-average interest rate of 4.67%[23] - Total debt was $450 million[22] - Total liquidity was $308 million, including $9 million in cash and $299 million undrawn revolver[22] Guidance - The company revised its full-year 2025 guidance for net income to $0.91 to $0.96 per diluted share[25] - The company revised its full-year 2025 guidance for FFO to $1.35 to $1.40 per diluted share[25] - The company revised its full-year 2025 guidance for CRE Same-Store NOI to 3.4% to 3.8%[25]

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]