HONOLULU, Feb. 27, 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 $12.4 million, or $0.17 per diluted share, and Commercial Real Estate ("CRE") operating profit of $22.0 million for the fourth quarter of 2024. The Company reported net income available to common shareholders of $60.5 million, or $0.83 per diluted share, and CRE operating profit of $89.4 million for the full year of 2024.
Q4 2024 Highlights
- Funds From Operations ("FFO") of $22.0 million, or $0.30 per diluted share
- Adjusted FFO of $14.2 million, or $0.19 per diluted share
- FFO related to CRE and Corporate of $19.0 million, or $0.26 per diluted share
- CRE Same-Store Net Operating Income ("NOI") growth of 2.4%, or 2.9% excluding collections of prior year reserves
- Leased occupancy as of December 31, 2024, was 94.6%
- Comparable blended leasing spreads for the improved portfolio were 14.0%
- Began construction of a 29,550 square foot warehouse and distribution center at Maui Business Park II
- Amended the Company's revolving credit facility, extending the term of the facility to October 2028
Full-Year 2024 Highlights
- FFO of $100.0 million, or $1.37 per diluted share
- Adjusted FFO of $80.1 million, or $1.10 per diluted share
- FFO related to CRE and Corporate of $81.1 million, or $1.11 per diluted share
- CRE Same-Store NOI growth of 2.9%, or 3.3% excluding collections of prior year reserves
- Comparable blended leasing spreads for the improved portfolio were 11.7%
- Reduced general and administrative expense by $4.2 million, or 12.4%, compared to 2023
- Closed on the acquisition of an 81,500 square foot food and distribution facility
- Established a new $200.0 million at-the-market ("ATM") equity offering program to replace our previous program that expired in August 2024
Lance Parker, president and chief executive officer, stated: "Our portfolio ended the year on a high note with better than expected results. Occupancy is healthy, leasing volumes continue to trend well and comparable leasing spreads are strong. Looking ahead to 2025, we are excited about our prospects to continue meaningful earnings growth organically through our portfolio, and through internal and external growth opportunities."
Consolidated Financial Results for Q4 and Full-Year 2024
Below is a summary of select consolidated financial results.
(dollars in thousands, except per share data) | Three months ended | Twelve months ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) available to A&B common shareholders | $ 12,438 | $ (3,530) | $60,514 | $29,706 | |||
Diluted earnings (loss) per share available to A&B shareholders | $ 0.17 | $ (0.05) | $ 0.83 | $ 0.41 | |||
FFO | $ 21,952 | $ 19,824 | $ 100,006 | $ 79,377 | |||
FFO per diluted share | $ 0.30 | $ 0.27 | $ 1.37 | $ 1.09 | |||
CRE & Corporate-related FFO per diluted share | $ 0.26 | $ 0.18 | $ 1.11 | $ 0.94 | |||
Adjusted FFO | $ 14,178 | $ 12,182 | $ 80,064 | $ 63,602 | |||
Adjusted FFO per diluted share | $ 0.19 | $ 0.17 | $ 1.10 | $ 0.87 | |||
Selling, general and administrative expense | $ 7,895 | $ 7,828 | $ 29,822 | $ 34,028 | |||
CRE Financial Results for Q4 and Full-Year 2024
Below is a summary of select CRE financial results.
(dollars in thousands) | Three Months Ended | Twelve Months Ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
CRE operating revenue | $ 49,888 | $ 48,336 | $ 197,365 | $ 193,971 | |||
CRE operating profit | $ 21,990 | $ 17,019 | $ 89,411 | $ 81,225 | |||
Same-Store NOI | $ 31,202 | $ 30,471 | $ 126,359 | $ 122,834 | |||
Same-Store NOI Growth | 2.4 % | 4.3 % | 2.9 % | 4.3 % | |||
Same-Store NOI, excluding collections of prior year reserves | $ 30,969 | $ 30,092 | $ 124,698 | $ 120,720 | |||
Same-Store NOI Growth, excluding collections of prior year reserves | 2.9 % | 4.8 % | 3.3 % | 6.8 % | |||
CRE Operating Results Results for Q4 and Full-Year 2024
- During the fourth quarter of 2024, the Company executed a total of 47 improved-property leases, or approximately 139,900 square feet of gross leasable area ("GLA"), and two ground leases. In 2024, there were 209 leases executed in our improved-property portfolio, or approximately 630,300 square feet of GLA, and three ground leases.
- Comparable leasing spreads in our improved property portfolio were 14.0% for the fourth quarter of 2024, which included 15.2% for retail spaces and 6.6% for industrial spaces. Full-year comparable leasing spreads for the improved property portfolio were 11.7%, including 13.5% for retail spaces and 7.4% for industrial spaces.
- Select occupancy information is included below for the periods ending December 31, 2024, September 30, 2024 and December 31, 2023.
December 31, | September 30, | December 31, | Change | Change | ||
Leased Occupancy | ||||||
Total leased occupancy | 94.6 % | 94.0 % | 94.7 % | 60 bps | (10) bps | |
Retail portfolio occupancy | 95.2 % | 92.9 % | 94.3 % | 230 bps | 90 bps | |
Industrial portfolio occupancy | 95.2 % | 97.4 % | 96.8 % | (220) bps | (160) bps | |
CRE Investment Activity for Full-Year 2024
- In September 2024, the Company closed on the off-market acquisition of an 81,500-square-foot distribution facility for $29.7 million. The facility is fully leased to Hansen Distribution Group, a broadline food service subsidiary of C&S Wholesale Grocers, and was an opportunity to recycle capital from Waipouli Town Center, which was sold in the fourth quarter of 2024.
- Construction began for the 29,550-square-foot warehouse and distribution center at Maui Business Park II. The single-user space includes 32' clear height and can accommodate up to 14 dock-high loading bays. The asset is pre-leased and is expected to be placed in service in late 2025.
Land Operations
- Land Operations operating profit was $2.9 million for the quarter ended December 31, 2024, comprised primarily of development sale margin.
- Land Operations operating profit was $18.9 million for the year ended December 31, 2024, comprised of $18.7 million of land sale margin and $4.6 million of equity in earnings from unconsolidated joint ventures.
Balance Sheet, Capital Markets Activities, and Liquidity
- As of December 31, 2024, the Company had total liquidity of $333.4 million, consisting of cash on hand of $33.4 million and $300.0 million available on its revolving line of credit.
- Net Debt to Trailing Twelve Months ("TTM") Consolidated Adjusted EBITDA was 3.6 times as of December 31, 2024, with TTM Consolidated Adjusted EBITDA of $122.6 million for the period ended December 31, 2024.
- In the fourth quarter of 2024, the Company amended its revolving credit facility, which extends the term of the facility to October 2028, with two six-month extension options, and provides for $450.0 million of borrowing capacity. The interest rate under the amended revolving credit facility remains unchanged from the prior facility at a rate of SOFR plus 1.05% based on a leverage-based pricing grid, plus a SOFR adjustment of 0.10%.
- The Company paid a fourth quarter 2024 dividend of $0.2250 per share on January 8, 2025.
- The Company's Board declared a first quarter 2025 dividend of $0.2250 per share, payable on April 7, 2025, to shareholders of record as of the close of business on March 14, 2025.
2025 Full-Year Guidance
The Company's initial outlook for 2025 is as follows.
2024 Actual | 2025 Guidance | ||
Net Income (Loss) available to A&B common shareholders per diluted share | $0.83 | $0.64 to $0.71 | |
FFO per diluted share | $1.37 | $1.13 to $1.20 | |
FFO per share related to CRE and Corporate | $1.11 | $1.11 to $1.16 | |
CRE Same-Store NOI growth % | 2.9 % | 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 142 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.
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