HONOLULU, April 24, 2025 -- Alexander & Baldwin, Inc. (NYSE: ALEX) ("A&B" or "Company"), a Hawai'i-based owner, operator and developer of high-quality commercial real estate in Hawai'i, today announced net income available to A&B common shareholders of $21.4 million, or $0.29 per diluted share, and Commercial Real Estate ("CRE") operating profit of $23.4 million for the first quarter of 2025.
Q1 2025 Highlights
- Funds From Operations ("FFO") of $26.3 million, or $0.36 per diluted share
- FFO related to CRE and Corporate of $21.5 million, or $0.30 per diluted share
- CRE Same-Store Net Operating Income ("NOI") growth of 4.2%
- Leased occupancy as of March 31, 2025, was 95.4%
- Comparable blended leasing spreads for the improved portfolio were 10.2%
- Executed a 75-year ground lease at Maui Business Park which will contribute $0.01 of FFO per diluted share in 2025
Lance Parker, president and chief executive officer, stated: "Our portfolio performed well in the first quarter, achieving CRE Same-Store NOI growth of 4.2%. We converted five acres of non-income producing land into an income producing ground lease, demonstrating the strategic, capital efficient, internal growth opportunities that exist in our portfolio. Lastly, we progressed through our streamlining efforts by selling 90 acres of primarily agriculture-zoned land and settling certain liabilities at a legacy joint venture."
Consolidated Financial Results for Q1 2025
Below is a summary of select consolidated financial results.
(dollars in thousands, except per share data) | Three Months Ended | ||
2025 | 2024 | ||
Net income (loss) available to A&B common shareholders | $ 21,433 | $ 19,974 | |
Diluted earnings (loss) per share available to A&B shareholders | $ 0.29 | $ 0.28 | |
(dollars in thousands, except per share data) | Three Months Ended | ||
2025 | 2024 | ||
FFO | $ 26,346 | $ 29,205 | |
FFO per diluted share | $ 0.36 | $ 0.40 | |
FFO per share related to CRE and Corporate | $ 0.30 | $ 0.29 | |
Selling, general and administrative expense | $ 6,990 | $ 7,239 | |
CRE Financial Results for Q1 2025
Below is a summary of select CRE financial results.
(dollars in thousands) | Three Months Ended | ||
2025 | 2024 | ||
CRE operating revenue | $ 51,043 | $ 48,888 | |
CRE operating profit | $ 23,426 | $ 21,981 | |
Same-Store NOI | $ 32,389 | $ 31,090 | |
Same-Store NOI Growth | 4.2 % | 4.1 % | |
CRE Operating Results for Q1 2025
- During the first quarter of 2025, the Company executed a total of 42 improved-property leases for approximately 236,800 square feet of gross leasable area or $5.6 million of annualized base rent, and one ground lease.
- Comparable leasing spreads in our improved property portfolio were 10.2% for the first quarter of 2025, which included 11.1% for retail spaces and 9.5% for industrial spaces.
- Select occupancy information is included below for each of the quarters ended March 31, 2025, December 31, 2024 and March 31, 2024.
March 31, 2025 | December 31, 2024 | March 31, 2024 | Change | Change | ||
Leased Occupancy | ||||||
Total leased occupancy | 95.4 % | 94.6 % | 94.0 % | 80 bps | 140 bps | |
Retail portfolio occupancy | 95.2 % | 95.2 % | 93.2 % | 0 bps | 200 bps | |
Industrial portfolio occupancy | 97.3 % | 95.2 % | 96.8 % | 210 bps | 50 bps | |
CRE Investment Activity for Q1 2025
- We transferred five acres of non-income producing land at Maui Business Park into our CRE portfolio, and executed a 75-year ground lease to a prominent self-storage developer. ABR for the lease is approximately $0.7 million, with fixed annual step ups and periodic fair-market value resets.
Land Operations
- Land Operations operating profit was $4.9 million for the first quarter of 2025, comprised of $2.2 million of margin from the sale of primarily agriculture-zoned land and $3.0 million from unconsolidated legacy joint ventures.
Balance Sheet, Capital Markets Activities, and Liquidity
- As of March 31, 2025, the Company had total liquidity of $323.9 million, consisting of cash on hand of $16.9 million and $307.0 million available on its revolving line of credit.
- Net Debt to Trailing Twelve Months ("TTM") Consolidated Adjusted EBITDA was 3.6 times as of March 31, 2025, with TTM Consolidated Adjusted EBITDA of $121.3 million for the twelve months ended March 31, 2025.
Dividend
- The Company paid a first quarter 2025 dividend of $0.2250 per share on April 7, 2025.
- The Company's Board declared a second quarter 2025 dividend of $0.2250 per share, payable on July 9, 2025, to shareholders of record as of the close of business on June 13, 2025.
2025 Full-Year Guidance
The Company revised its outlook for 2025 as follows.
2025 YTD Actual | Current | Initial | ||
Net Income (Loss) available to A&B common shareholders per diluted share | $0.29 | $0.68 to $0.74 | $0.64 to $0.71 | |
FFO per diluted share | $0.36 | $1.17 to $1.23 | $1.13 to $1.20 | |
FFO per share related to CRE and Corporate | $0.30 | $1.11 to $1.16 | $1.11 to $1.16 | |
CRE Same-Store NOI growth % | 4.2 % | 2.4% to 3.2% | 2.4% to 3.2% |
ABOUT ALEXANDER & BALDWIN
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. 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. Over its 155-year history, A&B has evolved with the state's economy and played a leadership role in the development of the agricultural, transportation, tourism, construction, residential and commercial real estate industries.
Learn more about A&B at www.alexanderbaldwin.com.
Investor
This News is brought to you by Qube Mark, your trusted source for the latest updates and insights in marketing technology. Stay tuned for more groundbreaking innovations in the world of technology.
