2024 FFO Guidance
Q: Is $1 the new baseline FFO for 2024?
A: Management explained that the $1 midpoint guidance reflects a shift to primarily commercial real estate operations, without the significant contributions from land sales that boosted previous FFO figures. Thus, 2024 FFO is more reflective of ongoing CRE performance, lacking the episodic gains from noncore business sales seen in past years.

Acquisition Opportunities
Q: Are there more potential property acquisitions in Hawaii this year?
A: While the market remains challenging with limited marketed deals and pricing impacted by capital markets, management expects to see more deal flow through off-market opportunities. With the company's simplification completed, they have resources focused on sourcing acquisitions and are exploring both external growth and internal opportunities like repositioning assets and adding photovoltaic installations to increase NOI.

2024 Leasing Spreads Outlook
Q: Will 2024 leasing spreads match the strong 8% seen in 2023?
A: The year has started strong, with consistent demand across all retail categories. While exact spreads are difficult to project, recent activity has been consistent with last year's performance, suggesting another solid leasing year.

Use of Grace Proceeds
Q: How were the proceeds from the Grace sale used?
A: The company received $45 million in December and $15 million in January from the Grace transaction. These proceeds were applied to reduce net debt by paying down the revolver in late December and early January.

Office Portfolio Repurposing
Q: What are plans for repurposing underperforming office assets?
A: Management is exploring options for their four office properties, particularly the three in Maui facing softness. Opportunities include redevelopment or capital recycling through user sales, given current occupancy levels. They will be evaluating these options throughout 2024.

Capital Allocation from Land Sales
Q: How will proceeds from future land sales be used?
A: With under 4,000 acres of noncore land remaining, the company plans to opportunistically monetize these assets. Proceeds are intended to be recycled into CRE growth opportunities, but may be temporarily used to repay debt in the interim.

Impact of Land Operations on FFO
Q: How do Land Operations affect 2024 FFO guidance?
A: The decrease in FFO guidance is primarily due to reduced margins from Land Operations, as previous years included significant margins from land sale transactions. In 2024, these margins are expected to be less impactful, aligning FFO more closely with CRE performance.

Lower G&A Expenses
Q: Are lower G&A expenses due to reduced headcount?
A: Yes, as the company has simplified, they've identified ways to reduce overhead, including lowering personnel expenses through a reduced headcount.

Upcoming Debt Maturities
Q: What are the plans for the debt maturities in 2024?
A: The company has a $57 million mortgage maturing in May, which is being addressed with a potential unsecured note. For the mortgage maturing in December, they are exploring various options and will provide details as they become available.

Noncash Charges
Q: What was the $2 million abandoned development cost?
A: This was a noncash charge taken during the quarter as the company was cleaning up its balance sheet, related to the abandonment of certain development costs.

Distressed Acquisition Opportunities
Q: Are there distressed asset opportunities in the market?
A: The company isn't seeing many distressed opportunities in the marketplace. While the market isn't necessarily drying up, there's typically less marketed activity in Hawaii, and they don't expect significant distress due to the nature of local assets and leverage levels.