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]

Analyst's Disclosure: I/we have a beneficial long position in the shares of ALEX 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. I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged ...

Financial Performance - Operating revenue for the first quarter of 2025 decreased by 12.2%, or $7.5 million, to $53.7 million compared to the same period in 2024, primarily due to lower revenues from the Land Operations segment's land sales[100] - Cost of operations decreased by 10.4%, or $3.1 million, to $27.1 million, mainly due to lower cost of sales associated with land sales in the Land Operations segment[101] - Net income for the first quarter of 2025 was $21.4 million, an increase of 7.3% or $1.5 million compared to $20.0 million in 2024[99] - Funds From Operations (FFO) decreased by 9.8%, or $2.9 million, to $26.3 million for the first quarter of 2025 compared to $29.2 million in 2024[99] - Adjusted FFO decreased by 12.7%, or $3.2 million, to $22.3 million for the first quarter of 2025 compared to $25.5 million in 2024[99] - Same-store net operating income (NOI) increased to $32.4 million in Q1 2025 from $31.1 million in Q1 2024, a growth of 4.2%[140] Real Estate Operations - Gain on commercial real estate transactions was $4.1 million, attributed to a ground lease agreement for a 4.7-acre land parcel in Maui Business Park[102] - Commercial Real Estate operating revenue increased by 4.4%, or $2.2 million, to $51.0 million for the first quarter of 2025 compared to the same period in 2024[107] - Commercial Real Estate operating profit rose by 6.6%, or $1.4 million, to $23.4 million for the first quarter of 2025 compared to the prior year[107] - Land Operations segment reported total operating revenue of $2.7 million for Q1 2025, down from $12.3 million in Q1 2024, with operating profit decreasing from $7.9 million to $4.9 million[122][123] Leasing Activity - The Company signed 10 new leases and 32 renewal leases covering a total of 236,800 square feet of GLA, with new leases averaging $16.34 per square foot and renewal leases averaging $27.58 per square foot[109] - The average base rent for 6 comparable new leases increased by 34.6% over expiring leases, while 27 comparable renewal leases saw a 6.4% increase[109] - As of March 31, 2025, the Leased Occupancy rate was 95.4%, up from 94.0% in the previous year, representing a 140 basis point increase[114] - Economic Occupancy improved to 93.9% as of March 31, 2025, compared to 92.3% a year earlier, marking a 160 basis point increase[116] - The retail sector's Leased Occupancy increased to 95.2% from 93.2%, while the industrial sector rose to 97.3% from 96.8%, and the office sector decreased to 79.5% from 83.9%[115] Cash Flow and Capital Expenditures - Operating cash flows from continuing operations for Q1 2025 were $25.9 million, an increase of $9.4 million compared to $16.5 million in Q1 2024, representing a growth of 56.8%[148] - Total capital expenditures for real estate in Q1 2025 amounted to $4,053,000, an increase of 9.3% compared to $3,706,000 in Q1 2024[154] - Cash used in investing activities for continuing operations was $0.8 million in Q1 2025, down from $3.7 million in Q1 2024[152] - Cash used in financing activities for continuing operations was $41.3 million in Q1 2025, up from $25.2 million in Q1 2024, primarily due to cash dividend payments of $16.5 million and debt repayments of $16.6 million[154] Debt and Financial Position - As of March 31, 2025, the company had $440.2 million in fixed-rate debt and $13.0 million in variable-rate debt, with a total weighted average interest rate of 4.62%[143] - The company had $16.9 million in cash on hand as of March 31, 2025, and $307.0 million of available capacity under its revolving credit facility[150] - The Company intends to maintain compliance with financial covenants to ensure continued access to its credit facilities[142] Stock and Market Considerations - The Company has authorized a stock repurchase program of up to $100.0 million, with no shares repurchased during Q1 2025[155] - The company entered into an at-the-market equity distribution agreement allowing for the sale of common stock up to $200.0 million, with no shares sold as of March 31, 2025[151] - The Company faces potential negative impacts from general economic conditions, including inflationary pressures and market volatility, which could affect operating results[158] - The impact of an elevated federal funds rate has contributed to credit tightening and volatility in various industries, including banking and housing[158] - Management's estimates in financial statements are subject to uncertainty, and actual results may differ materially from these estimates[159] - There have been no material changes in market risk disclosures since December 31, 2024[162]

Financial Performance - Net income for Q1 2025 was $21.4 million, or $0.29 per diluted share[16] - Funds From Operations (FFO) for Q1 2025 reached $26.3 million, translating to $0.36 per diluted share[16] - FFO related to CRE and Corporate was $21.5 million, or $0.30 per diluted share[16] - Same-store NOI growth was 4.2% in Q1 2025[11, 13, 37] - Spreads for new and renewal leases were 10.2% as of March 31, 2025[13] Occupancy and Leases - Leased occupancy stood at 95.4% as of March 31, 2025[13] - Economic occupancy was 93.9% as of March 31, 2025[13] - ABR (Annual Base Rent) for SNO (Small National/Other) leases was $3.4 million as of March 31, 2025[13] Balance Sheet and Capital Structure - Total debt amounted to $453 million[21] - The company's total liquidity was $324 million, including $17 million in cash and a $307 million undrawn revolver[21] - Net debt to TTM Consolidated Adjusted EBITDA was 3.6x, consistent with Q4 2024[22] - 97.1% of the company's debt was at fixed rates, with a weighted-average interest rate of 4.65%[22] Guidance - The company raised its FFO per share guidance for the full year 2025 to a range of $1.17 to $1.23[14, 24] - Net Income available to A&B common shareholders per diluted share is expected to be $0.68 to $0.74 for full year 2025[24]

Core Insights - Alexander & Baldwin Holdings, Inc. reported revenue of $53.74 million for the quarter ended March 2025, reflecting a year-over-year decline of 12.2% [1] - The earnings per share (EPS) for the same period was $0.36, an increase from $0.28 a year ago, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $51.7 million by 3.94%, while the EPS surpassed the consensus estimate of $0.28 by 28.57% [1] Financial Performance Metrics - The company's operating revenue from Commercial Real Estate was $51.04 million, exceeding the two-analyst average estimate of $50.20 million, with a year-over-year increase of 4.4% [4] - In contrast, the operating revenue from Land Operations was reported at $2.70 million, significantly lower than the average estimate of $1.50 million, showing a year-over-year decline of 78.1% [4] - The diluted earnings per share were reported at $0.29, compared to the average estimate of $0.15 from three analysts, indicating stronger-than-expected earnings performance [4] Stock Performance - Over the past month, shares of Alexander & Baldwin Holdings have returned -3.9%, which is better than the Zacks S&P 500 composite's decline of -5.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported a same-store NOI growth of 4.2% for the quarter, with the commercial real estate (CRE) portfolio generating $33.2 million of NOI, representing a 4.6% increase from Q1 of last year [10][18] - Total FFO was $0.36 per share for Q1 2025, consisting of $0.06 from land operations and $0.30 from CRE and corporate [19] - G&A expenses were approximately $7 million, a decrease of 3.4% compared to the same period last year [21] - The company raised its total FFO per share guidance to a range of $1.17 to $1.23, reflecting better-than-expected results in land operations [23] 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 [13] - Leased occupancy was 95.4%, up 80 basis points sequentially and 40 basis points year-over-year [14] - The company sold 90 acres of primarily agricultural land, contributing approximately 6 cents to land operations earnings for the quarter [13] Market Data and Key Metrics Changes - The company backfilled approximately 75% of a 50,000 square feet industrial vacancy by signing a lease at Kakaako Commerce Center [24] - 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 [14] Company Strategy and Development Direction - The company is focusing on improving its CRE portfolio performance, internal and external growth, and streamlining its business and cost structure [10] - A notable transaction involved transferring a five-acre lot at Maui Business Park into the ground lease portfolio, which is expected to contribute nearly a penny in FFO for 2025 [12] - The company is committed to a Hawaii-focused asset class diverse strategy, with self-storage being a new area of investment [12][36] 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 [27] - There have been no significant concerns from tenants regarding their operations, and leasing activity remains robust [40][51] - The company is taking proactive measures to mitigate potential impacts from tariffs on construction costs by pre-purchasing materials [42][70] 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 [22] - The Board declared a second-quarter 2025 dividend of $0.225 per share, payable on July 9 [23] Q&A Session Summary Question: Can you provide details on the self-storage transaction and the equity investment opportunity? - The self-storage transaction involved converting non-income-producing land into long-term rental income through a 75-year ground lease, contributing nearly a penny of FFO for 2025 [34][35] Question: What are the concerns from tenants regarding macroeconomic uncertainty? - While there is some uncertainty around tariffs, there have been no real-time concerns from tenants, and leasing activity remains positive [40][51] Question: Is the construction completion delay related to tariffs? - The delay in construction completion is due to the natural course of construction and not directly related to tariffs [44] Question: How significant is the impact of tariffs on building materials? - An 8% increase in steel prices was noted, and the company is taking steps to pre-purchase materials to mitigate costs [69][70] Question: Are there any anticipated drags on FFO as the year progresses? - There are no known anticipated drags due to move-outs or other factors at this time [78] Question: Is there potential for additional legacy issues impacting future earnings? - While there is always a possibility of legacy issues arising, the company does not anticipate anything out of the ordinary in the near term [86]