Executive Summary

Q3 results were modest but exceeded internal expectations: diluted EPS of $0.20 vs S&P Global consensus of $0.15, and S&P-reported revenue of $51.84M vs $50.69M consensus; company-reported operating revenue was $50.25M, reflecting classification differences. Guidance was raised again on FFO, marking the third consecutive raise this year . EPS/Revenue estimates from S&P Global: 0.15/$50.69M; S&P actual revenue $51.84M; company operating revenue $50.25M*.
CRE fundamentals were stable: same-store NOI +0.6% YoY (vs +5.3% in Q2), leased occupancy 95.6%, and blended leasing spreads +4.4%. Management cited timing of move-outs/backfills, one-time tax items in 3Q24, and higher bad debt as temporary headwinds .
Balance sheet/liquidity remained sound: $284.3M of liquidity, Net Debt/TTM Adj. EBITDA 3.5x; the company expects $24.1M of proceeds in 1Q26 from a tenant purchase option at Kaka‘ako, targeting a 1031 exchange; capex included a $19.6M Sam’s Club TI in Q3 .
Stock catalysts: three consecutive guidance raises, visible internal growth (Maui and Komohana industrial), a robust SNO pipeline ($6.4M ABR) slated to turn economic through 2026, and an opening Hawai‘i transaction market with potential acquisition pipelines at 5–6% cap rates .

What Went Well and What Went Wrong

What Went Well
- “Overall third-quarter results exceeded expectations…we are raising FFO guidance for the year,” with CRE portfolio performing in line and an 11% anchor renewal spread in Kailua Town post-quarter .
- Internal growth advanced: vertical construction at Maui Business Park and ground-breaking at Komohana Industrial (91k sf Lowe’s BTS plus 30k sf spec) positioning incremental NOI of ~$1.0M and ~$2.8M at stabilization .
- Leasing execution steady: 49 leases, ~$3.3M ABR, blended comparable spreads +4.4% (retail +2.4%, industrial +6.0%); total leased occupancy 95.6% .
What Went Wrong
- Same-store NOI growth slowed to +0.6% YoY (from +5.3% in Q2), due to timing of earlier-year tenant move-outs/backfills, one-time real property tax items in 3Q24, and higher bad debt on a few tenants; mgmt quantified ~370 bps headwind vs prior-year comp .
- Land Operations muted in Q3 with $35K revenue and a ($0.3M) operating loss given absence of land sales, a reversal from outsized Q2 contribution .
- Slight sequential dip in total leased occupancy (-20 bps) and industrial occupancy (-70 bps) offset by retail strength; economic occupancy also ticked down QoQ .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025 Actual	Q3 2025 Consensus*
Total Operating Revenue ($M, company)	$53.74	$51.70	$50.25	$50.69*
Revenue ($M, S&P-defined)*	—	—	$51.84*	$50.69*
Diluted EPS ($)	$0.29	$0.35	$0.20	$0.15*
FFO per diluted share ($)	$0.36	$0.48	$0.29	—
CRE Same-Store NOI Growth (%)	4.2%	5.3%	0.6%	—
Total Leased Occupancy (%)	95.4%	95.8%	95.6%	—

YoY snapshot (Q3 2025 vs Q3 2024):

Net income to common: $14.3M vs $19.0M
Diluted EPS: $0.20 vs $0.26
FFO: $21.4M vs $28.2M; FFO/sh $0.29 vs $0.39
CRE operating revenue: $50.21M vs $49.38M
CRE operating profit: $22.72M vs $22.83M
Same-store NOI: $31.92M vs $31.73M (+0.6%)

Segment details:

Segment Metric ($M)	Q1 2025	Q2 2025	Q3 2025
CRE Operating Revenue	51.04	50.73	50.21
CRE Operating Profit	23.43	22.21	22.72
Land Ops Revenue	2.70	0.97	0.04
Land Ops Operating Profit	4.85	13.91	-0.30

KPIs and balance sheet:

KPI / Capital	Q1 2025	Q2 2025	Q3 2025
Comparable Leasing Spread (Improved)	10.2%	6.8%	4.4%
Retail / Industrial comparable spread	11.1% / 9.5%	7.4% / 4.7%	2.4% / 6.0%
Liquidity ($M)	323.9	307.6	284.3
Net Debt / TTM Adj. EBITDA (x)	3.6	3.3	3.5
Dividend per share	$0.2250	$0.2250	$0.2250

Notes: Q3 recognized $2.56M selling profit tied to Kaka‘ako Commerce Center sales-type lease option (closing expected 1Q26), boosting gains line, not operating revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income per diluted share	FY 2025	$0.91–$0.96	$0.95–$1.00	Raised
FFO per diluted share	FY 2025	$1.35–$1.40	$1.36–$1.41	Raised
FFO per share (CRE & Corporate)	FY 2025	$1.12–$1.16	$1.13–$1.17	Raised
Same-Store NOI Growth	FY 2025	3.4%–3.8%	3.4%–3.8%	Maintained

Management also implied Q4 same-store NOI growth around 4.4% at midpoint (embedded in guidance commentary) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Internal development pipeline (Maui BTS; Komohana)	Executed 75-year ground lease at Maui; pre-construction at Komohana; guidance raised	Vertical construction underway at Maui; Komohana groundbreaking; expected stabilized NOI ~$1.0M (Maui) and ~$2.8M (Komohana)	Advancing; visibility improving
Leasing spreads & occupancy	Strong spreads (Q1 10.2%, Q2 6.8%); occupancy up to 95.8%	Spreads moderated to 4.4%; occupancy 95.6%; noted mix effects and isolated negative new rent outlier	Moderating spreads; stable occupancy
SNO & timing	Not detailed	$6.4M ABR in SNO; Maui ~$1M economic in Q1’26; Komohana in 4Q’26–1Q’27	Building earnings backlog
Capital recycling / dispositions	Streamlining legacy lands; Q2 land ops profit from resolutions/sales	Tenant option at Kaka‘ako ($24.1M proceeds, plan 1031 in 1Q26)	Opportunistic recycling
G&A/operating efficiency	Q1/Q2 G&A ~$7.0M; cost control	Q3 G&A $6.1M; Q4 uptick to ~+$9M driven by timing and deal pursuits	Controlled but set to rise in Q4
M&A/market backdrop	Guidance raises; internal growth focus	Three portfolios marketing; cap rates generally 5–6%; leveraging local edge	Pipeline improving
Debt & liquidity	Net Debt/Adj. EBITDA 3.6x→3.3x; liquidity ~$308–324M	3.5x; liquidity $284M; 89% fixed-rate debt; WAC ~4.7%	Stable leverage

Management Commentary

CEO Lance Parker: “We are pleased that overall third-quarter results exceeded expectations, and we remain confident in our full-year outlook. As a result, we are raising FFO guidance for the year… We also advanced construction on two industrial projects, positioning us well for future growth” .
CFO Clayton Chun on drivers: “Same-store NOI…was impacted by…one-time [3Q24] real property tax items…higher bad debt…and move-outs… We quantified that to be about 370 bps collectively” .
Strategic capital: “The sale [Kaka‘ako floors] is expected to close in the first quarter of 2026 and will generate $24.1 million of proceeds that we expect to recycle into an acquisition…via a 1031 exchange” .
Growth pipeline: “We broke ground on two new buildings [Komohana]…pre-leased to Lowe’s…and [Maui] remains on schedule, with completion anticipated in the first quarter of 2026” .

Q&A Highlights

SNO timing/impact: ~$6.4M ABR SNO turning economic over 9–12 months; Maui BTS ~~$1M in Q1’26; Komohana BTS in 4Q’26–1Q’27 (~~$2M) .
Capital deployment: $24.1M Kaka‘ako proceeds intended for 1031 acquisition; asset not yet identified given closing in 1Q26 .
G&A cadence: Q3 $6.1M benefited from timing; Q4 expected “around 9-ish” as deal-related costs flow through .
Leasing spreads mix: Isolated new-lease outlier in Kailua drove small negative; renewals remain healthy .
Market color: Live portfolios (2 retail, 1 industrial) with cap rates generally 5–6%; ALEX sees local knowledge as competitive advantage .
Capex: Sam’s Club TI of ~$19.6M paid in Q3 .
Asset strategy: Pursuing renewal on 36-acre industrial ground lease; Maui office block disposition process ongoing .

Estimates Context

Q3 2025 vs S&P Global consensus:
- EPS: $0.20 actual vs $0.15 consensus → beat by $0.05 .
- Revenue: S&P “actual” $51.84M vs consensus $50.69M → beat; Company-reported operating revenue was $50.25M (differences due to classification of gains/other income vs operating revenue) .
- Number of estimates: EPS (2), Revenue (3)*.
  Values with asterisk retrieved from S&P Global.

Estimates (S&P Global)*	Q3 2025
Primary EPS Consensus Mean ($)	0.15
Revenue Consensus Mean ($M)	50.69
Revenue Actual per S&P ($M)	51.84
EPS Estimates (#)	2
Revenue Estimates (#)	3

Key Takeaways for Investors

Three straight guidance raises with Q4 set up for an acceleration in same-store NOI at the midpoint; incremental visibility from SNO rolling on in 2026 should support 2026/2027 estimates .
EPS beat vs consensus and maintained occupancy underscore portfolio resilience despite transient headwinds (bad debt, prior-year comps) .
Internal development remains a multi-year growth driver (Maui, Komohana) with underwritten 7.0–8.1% yields and pre-leasing (Lowe’s) reducing execution risk .
Capital recycling and a more liquid Hawai‘i market (5–6% cap rates) create optionality; $24.1M pending proceeds and ample liquidity ($284M) enable opportunistic acquisitions .
Near-term modeling items: Q4 G&A uptick (~$9M), limited Land Ops contribution absent sales, and continued investment in TIs (e.g., Sam’s) .
Balance sheet remains conservative (3.5x Net Debt/TTM Adj. EBITDA; ~89% fixed-rate), providing rate insulation and flexibility .
Watch catalysts: Portfolio acquisitions, lease-up/economic commencement of SNO, ground lease renewal outcomes, and progress on non-core asset sales .

Footnotes:

Values retrieved from S&P Global.

Sources: Company 8-K/press release and supplemental (Oct 30, 2025) and prior quarters; Q3 2025 earnings call transcript (Oct 30, 2025). Citations inline.

Alexander & Baldwin, Inc. (ALEX)·Q3 2025 Earnings Summary