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Alexander & Baldwin, Inc. (A&B) is a fully integrated real estate investment trust (REIT) headquartered in Honolulu, Hawai‘i, with over 150 years of history. The company focuses on managing and growing its commercial real estate portfolio in Hawai‘i while simplifying its operations by monetizing non-core assets. A&B specializes in owning, operating, and leasing retail, industrial, and urban ground lease properties, as well as managing legacy landholdings and development activities.
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Commercial Real Estate (CRE) - Owns, operates, and leases a portfolio of retail, industrial, and office properties, with a focus on grocery-anchored shopping centers and urban ground leases in Hawai‘i. The portfolio includes approximately 3.9 million square feet of gross leasable area and 142.0 acres of ground lease assets.
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Land Operations - Manages legacy landholdings and assets, generating revenue through real estate development, land sales, and joint ventures. The portfolio includes approximately 3,316 acres of legacy landholdings and 51 acres of core landholdings.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Lance K. Parker ExecutiveBoard | President and Chief Executive Officer | None | Joined ALEX in 2004; held various leadership roles, including COO and Chief Real Estate Officer; became CEO on July 1, 2023. | View Report → |
Clayton K.Y. Chun Executive | EVP, Chief Financial Officer, Treasurer | None | Oversees financial operations; responsible for compliance with SEC regulations; no external roles listed. | |
Diana M. Laing Board | Director | Director at CareTrust REIT, Inc. (Nasdaq: CTRE) and Host Hotels (Nasdaq: HST) | Director since 2019; served as Interim CFO and EVP at ALEX in 2018-2019; extensive finance and accounting expertise. | |
Douglas M. Pasquale Board | Lead Independent Director | CEO of Capstone Enterprises Corporation; Director at Sunstone Hotel Investors, Terreno Realty, and Dine Brands Global | Director since 2012; extensive REIT and corporate governance expertise; former CEO of Nationwide Health Properties. | |
Eric K. Yeaman Board | Chairman of the Board | Founder & Managing Partner of Hoku Capital LLC; Director at Alaska Air Group, Inc. (NYSE: ALK) | Director since 2012; became Chairman in October 2020; extensive experience in finance and telecommunications. | |
John T. Leong Board | Director | CEO of Kupu and Pono Pacific Land Management, LLC | Director since 2020; expertise in environmental and community matters; active in Hawaii's business and non-profit sectors. | |
Shelee Kimura Board | Director | CEO of Hawaiian Electric Company; Member of Shidler College Advisory Council; Board member of Mid-Pacific Institute, Parents and Children Together, and Nā Kama Kai | Appointed to ALEX Board in 2023; brings expertise in energy, finance, and community development. | |
Thomas A. Lewis, Jr. Board | Director | None | Director since 2017; former CEO of Realty Income Corporation; extensive REIT and finance experience. |
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Given that a significant portion of your FFO this quarter was driven by land sales and income from a legacy joint venture, how sustainable are these income streams, and what strategies are in place to mitigate potential volatility in future earnings as you continue to monetize land assets?
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With upcoming vacancies totaling approximately 63,000 square feet that may extend into 2025, how do you anticipate these vacancies impacting your occupancy rates and NOI, and what proactive measures are you taking to mitigate potential negative effects on your financial performance?
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You mentioned the use of the revolver to refinance debt and an extended debt maturity profile; however, with rising interest rates and significant debt maturing in the near term, how do you plan to manage your debt levels while pursuing growth opportunities, and under what circumstances would you consider utilizing the ATM program to strengthen your balance sheet?
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Despite your focus on reducing G&A expenses, the reductions appear modest quarter over quarter. Can you provide more specifics on the cost categories where efficiencies are being realized, and what additional steps are planned to achieve more substantial and sustainable reductions in your overall cost structure?
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The acquisition pipeline has remained challenging, with limited opportunities and increased competition. How does management plan to accelerate growth in the CRE portfolio in this environment, and are there considerations to expand your investment criteria or geographic focus to enhance deal flow?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
81,500‑sqft Food Distribution Facility in Pearl City, O’ahu | 2024 | Alexander & Baldwin acquired a fully leased (100% occupancy) 81,500‑sqft food distribution facility for $29.7 million, leased to Hansen Distribution Group, to expand its industrial portfolio with immediate FFO accretion as part of a capital recycling strategy funded by the Waipouli Town Center sale. |
Industrial Commercial Real Estate Asset – Reverse Like‑Kind Exchange Property | 2024 | The company executed a reverse like‑kind exchange acquisition involving a VIE structure for a net asset value of approximately $29.8 million, covering 81,495 sqft of GLA in Waihona Industrial, Oʻahu, with in‑place leases averaging 12.8 years. |
Kaomi Loop Industrial | 2023 | The industrial property on Oʻahu was purchased for $9.5 million at a 5.6% going‑in cap rate and encompasses 33,200 sqft of GLA, positioning the asset to be accretive to long‑term value. |
Industrial Building with 8,400 Sq Ft of GLA (Intercompany Acquisition) | 2022 | An intercompany acquisition transferred an occupied industrial building with 8,400 sqft of GLA from the Materials & Construction segment to the Commercial Real Estate segment, currently utilized by Grace Pacific’s GP Roadway Solutions division. |
Recent press releases and 8-K filings for ALEX.
- Financial Performance: Reported net income of $21.4M, diluted EPS of $0.29, with FFO of $26.3M and FFO per share of $0.36 .
- Commercial Real Estate: Achieved same-store NOI growth of 4.2-4.6% and posted a CRE operating profit of $23.4M with leased occupancy at 95.4% .
- Leasing Initiatives: Executed 42 improved-property leases covering approx. 237,000 square feet .
- Strategic Growth Transaction: Secured a 75-year ground lease at Maui Business Park converting about five acres of non-income-producing land into an income asset, contributing about $0.01 to FFO and opening a self-storage equity opportunity .
- Dividend & Guidance Update: Declared a Q1 dividend of $0.2250 per share, revised full-year guidance, and raised total FFO guidance to $1.17-$1.23 per share .
- Liquidity: Reported liquidity in excess of $300 million .
- Additional Portfolio Initiative: Sold agriculture-zoned land .
- Alexander & Baldwin executed a 75-year ground lease for 4.7 acres at its Maui Business Park Phase II project in Kahului, Maui, aimed at enhancing its commercial real estate portfolio.
- The transaction, involving a prominent self-storage developer, reflects a strategic move to convert non-income generating land into a productive asset.