HONOLULU, July 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 $25.1 million, or $0.35 per diluted share, and Commercial Real Estate ("CRE") operating profit of $22.2 million for the second quarter of 2025.
Q2 2025 Highlights
- Funds From Operations ("FFO") of $35.2 million, or $0.48 per diluted share
- FFO related to CRE and Corporate of $21.2 million, or $0.29 per diluted share
- CRE Same-Store Net Operating Income ("NOI") growth of 5.3%
- Leased occupancy as of June 30, 2025, was 95.8%
- Comparable blended leasing spreads for the improved portfolio were 6.8%
- Began pre-construction of two new buildings at Komohana Industrial Park that will add 105,000 sq. ft of GLA to our largest industrial asset, and pre-leased one building to a national tenant on a build-to-suit basis.
Lance Parker, president and chief executive officer, stated: "Our high-quality portfolio continues to perform well, and as a result, we are raising our guidance. I am equally pleased with the team's execution of our internal growth strategy - making meaningful progress constructing our build-to-suit warehouse on Maui and signing another build-to-suit lease on Oahu in the second quarter."
Consolidated Financial Results for Q2 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 | $ 25,128 | $ 9,104 | |
Diluted earnings (loss) per share available to A&B shareholders | $ 0.35 | $ 0.13 | |
(dollars in thousands, except per share data) | Three Months Ended | ||
2025 | 2024 | ||
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 Financial Results for Q2 2025 | |||
Below is a summary of select CRE financial results. | |||
(dollars in thousands) | Three Months Ended June 30, | ||
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 % | |
CRE Operating Results for Q2 2025
- 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.
- 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.
- Select occupancy information is included below for each of the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024.
June 30, 2025 | March 31, 2025 | June 30, 2024 | Change | Change | ||
Leased Occupancy | ||||||
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 | |
CRE Investment Activity for Q2 2025
- Pre-construction of two new buildings began at Komohana Industrial Park. The project will replace an existing 16,000-square-foot building on 5.7 acres of land with a 91,000-square-foot build-to-suit distribution center that is pre-leased to Lowe's and a 30,000-square-foot spec building that could be divided into two 15,000-square-foot-units. Construction of the two buildings is expected to be completed in the fourth quarter of 2026.
- Construction continues for the 29,550-square-foot warehouse and distribution center at Maui Business Park. 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 the first quarter of 2026.
Land Operations
- 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.
Balance Sheet, Capital Markets Activities, and Liquidity
- 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.
- 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.
Dividend
- The Company paid a second quarter 2025 dividend of $0.2250 per share on July 9, 2025.
- 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.
2025 Full-Year Guidance
The Company increased its outlook for 2025 as follows.
2025 YTD Actual | Current | Previous | ||
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
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.
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