Alexander & Baldwin(ALEX) - 2025 Q2 - Quarterly Results

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 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] - Leased occupancy as of June 30, 2025, was 95.8%[6] - Comparable blended leasing spreads for the improved portfolio were 6.8%[6] - 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] 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 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 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] - 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] Commercial Real Estate (CRE) Investment and Development Activity 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] - 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] Land Operations Performance 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] Financial Position & Capital Management This section reviews the company's financial position, including liquidity, debt, and dividend declarations Liquidity and Debt 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] - 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] Dividends 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] - 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] 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 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 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] - 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] - 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] Detailed Financial Statements This section presents detailed segment data, consolidated income statements, balance sheets, and cash flow statements Segment Data and Income Statement This section provides detailed segment-level operating revenue and profit, alongside a consolidated income statement for