EX-99.1 2 q12025earningsrelease-quar.htm EX-99.1 Document

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Alexander & Baldwin, Inc. Reports First Quarter 2025 Results

HONOLULU, (April 24, 2025) /PRNewswire/—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 $21.4 million, or $0.29 per diluted share, and Commercial Real Estate ("CRE") operating profit of $23.4 million for the first quarter of 2025.
Q1 2025 Highlights
•Funds From Operations ("FFO") of $26.3 million, or $0.36 per diluted share
•FFO related to CRE and Corporate of $21.5 million, or $0.30 per diluted share
•CRE Same-Store Net Operating Income ("NOI") growth of 4.2%
•Leased occupancy as of March 31, 2025, was 95.4%
•Comparable blended leasing spreads for the improved portfolio were 10.2%
•Executed a 75-year ground lease at Maui Business Park which will contribute $0.01 of FFO per diluted share in 2025
Lance Parker, president and chief executive officer, stated: "Our portfolio performed well in the first quarter, achieving CRE Same-Store NOI growth of 4.2%. We converted five acres of non-income producing land into an income producing ground lease, demonstrating the strategic, capital efficient, internal growth opportunities that exist in our portfolio. Lastly, we progressed through our streamlining efforts by selling 90 acres of primarily agriculture-zoned land and settling certain liabilities at a legacy joint venture."
Consolidated Financial Results for Q1 2025
Below is a summary of select consolidated financial results.
(dollars in thousands, except per share data)Three Months Ended March 31,
20252024
Net income (loss) available to A&B common shareholders$21,433 $19,974 
Diluted earnings (loss) per share available to A&B shareholders
$0.29 $0.28 
(dollars in thousands, except per share data)Three Months Ended March 31,
20252024
FFO$26,346 $29,205 
FFO per diluted share$0.36 $0.40 
FFO per share related to CRE and Corporate$0.30 $0.29 
Selling, general and administrative expense$6,990 $7,239 




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CRE Financial Results for Q1 2025
Below is a summary of select CRE financial results.
(dollars in thousands)Three Months Ended March 31,
20252024
CRE operating revenue$51,043 $48,888 
CRE operating profit$23,426 $21,981 
Same-Store NOI$32,389 $31,090 
Same-Store NOI Growth4.2 %4.1 %
CRE Operating Results for Q1 2025
•During the first quarter of 2025, the Company executed a total of 42 improved-property leases for approximately 236,800 square feet of gross leasable area or $5.6 million of annualized base rent, and one ground lease.
•Comparable leasing spreads in our improved property portfolio were 10.2% for the first quarter of 2025, which included 11.1% for retail spaces and 9.5% for industrial spaces.
•Select occupancy information is included below for each of the quarters ended March 31, 2025, December 31, 2024 and March 31, 2024.
March 31, 2025
December 31, 2024
March 31, 2024
Change from prior quarterChange from prior year
Leased Occupancy
Total leased occupancy95.4%94.6%94.0%
80 bps
140 bps
Retail portfolio occupancy95.2%95.2%93.2%
0 bps
200 bps
Industrial portfolio occupancy97.3%95.2%96.8%
210 bps
50 bps
CRE Investment Activity for Q1 2025
•We transferred five acres of non-income producing land at Maui Business Park into our CRE portfolio, and executed a 75-year ground lease to a prominent self-storage developer. ABR for the lease is approximately $0.7 million, with fixed annual step ups and periodic fair-market value resets.
Land Operations
•Land Operations operating profit was $4.9 million for the first quarter of 2025, comprised of $2.2 million of margin from the sale of primarily agriculture-zoned land and $3.0 million from unconsolidated legacy joint ventures.
Balance Sheet, Capital Markets Activities, and Liquidity
•As of March 31, 2025, the Company had total liquidity of $323.9 million, consisting of cash on hand of $16.9 million and $307.0 million available on its revolving line of credit.
•Net Debt to Trailing Twelve Months ("TTM") Consolidated Adjusted EBITDA was 3.6 times as of March 31, 2025, with TTM Consolidated Adjusted EBITDA of $121.3 million for the twelve months ended March 31, 2025.
Dividend
•The Company paid a first quarter 2025 dividend of $0.2250 per share on April 7, 2025.
•The Company's Board declared a second quarter 2025 dividend of $0.2250 per share, payable on July 9, 2025, to shareholders of record as of the close of business on June 13, 2025.



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2025 Full-Year Guidance
The Company revised its outlook for 2025 as follows.
2025 YTD ActualCurrentInitial
Net Income (Loss) available to A&B common shareholders per diluted share
$0.29
$0.68 to $0.74
$0.64 to $0.71
FFO per diluted share
$0.36
$1.17 to $1.23
$1.13 to $1.20
FFO per share related to CRE and Corporate$0.30
$1.11 to $1.16
$1.11 to $1.16
CRE Same-Store NOI growth %4.2%2.4% to 3.2%
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.

Investor Contact:
Jordan Hino
(808) 525-8475
investorrelations@abhi.com

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ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
SEGMENT DATA & OTHER FINANCIAL INFORMATION
(amounts in thousands, except per share data; unaudited)

Three Months Ended March 31,
20252024
Segment Operating Revenue:
Commercial Real Estate1
$51,043 $48,894 
Land Operations2
2,695 12,314 
Total segment operating revenue53,738 61,208 
Operating Profit (Loss):
Commercial Real Estate1
23,426 21,981 
Land Operations2
4,850 7,931 
Total operating profit (loss)28,276 29,912 
Gain (loss) on commercial real estate transactions4,103 — 
Interest expense(5,802)(5,510)
Corporate and other expense(5,322)(4,164)
Income (Loss) from Continuing Operations Before Income Taxes21,255 20,238 
Income tax benefit (expense)39 — 
Income (Loss) from Continuing Operations21,294 20,238 
Income (loss) from discontinued operations, net of income taxes 139 (256)
Net Income (Loss)$21,433 $19,982 
Basic Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders$0.29 $0.28 
Discontinued operations available to A&B shareholders— — 
Net income (loss) available to A&B shareholders$0.29 $0.28 
Diluted Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders$0.29 $0.28 
Discontinued operations available to A&B shareholders— — 
Net income (loss) available to A&B shareholders$0.29 $0.28 
Weighted-Average Number of Shares Outstanding:
Basic72,683 72,545 
Diluted72,820 72,666 
Amounts Available to A&B Common Shareholders:
Continuing operations available to A&B common shareholders$21,294 $20,230 
Discontinued operations available to A&B common shareholders139 (256)
Net income (loss) available to A&B common shareholders$21,433 $19,974 
1 Commercial Real Estate segment revenue and operating profit (loss) includes intersegment operating revenue, primarily from the Land Operations segment, that is eliminated in the consolidated results of operations.
2 Land Operations segment revenue and operating profit (loss) includes intersegment operating expense, from the Commercial Real Estate segment, that is eliminated in the consolidated results of operations.

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ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands; unaudited)
March 31, December 31,
20252024
ASSETS
Real estate investments
Real estate property$1,676,343 $1,670,879 
Accumulated depreciation(263,283)(255,641)
Real estate property, net1,413,060 1,415,238 
Real estate developments41,466 46,423 
Investments in sales-type leases, net of allowances (credit losses) of $17 as of March 31, 20259,216 — 
Investments in real estate joint ventures and partnerships5,907 5,907 
Real estate intangible assets, net29,795 31,176 
Real estate investments, net1,499,444 1,498,744 
Cash and cash equivalents16,855 33,436 
Restricted cash697 236 
Accounts receivable, net of allowances (credit losses and doubtful accounts) of $1,728 and $1,701 as of March 31, 2025, and December 31, 2024, respectively4,942 3,697 
Goodwill8,729 8,729 
Other receivables, net of allowances (credit losses) of $2,299 and $2,393 as of March 31, 2025, and December 31, 2024, respectively11,185 16,696 
Prepaid expenses and other assets106,762 108,894 
Total assets$1,648,614 $1,670,432 
LIABILITIES AND EQUITY
Liabilities:
Notes payable and other debt$452,843 $474,837 
Accounts payable4,490 4,529 
Accrued post-retirement benefits7,535 7,582 
Deferred revenue75,085 72,462 
Accrued and other liabilities103,518 107,479 
Total liabilities643,471 666,889 
Equity:
Total shareholders' equity1,005,143 1,003,543 
Total liabilities and equity$1,648,614 $1,670,432 

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ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOWS
(amounts in thousands; unaudited)
Three Months Ended March 31,
20252024
Cash Flows from Operating Activities:
Net income (loss)$21,433 $19,982 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Loss (income) from discontinued operations(139)256 
Depreciation and amortization9,207 9,034 
Provision for (reversal of) credit losses17 — 
(Gain) loss on commercial real estate transactions and other disposals, net(4,296)(23)
(Gain) loss on de-designated interest rate swap valuation adjustment— (3,675)
Share-based compensation expense1,370 1,126 
Loss (income) related to joint ventures, net of operating cash distributions(1,025)50 
Changes in operating assets and liabilities:
Trade and other receivables(1,524)(486)
Prepaid expenses and other assets(2,471)(3,435)
Development/other property inventory4,564 (2,925)
Accrued post-retirement benefits(47)(1,697)
Accounts payable(58)(1,242)
Accrued and other liabilities(1,149)(501)
Operating cash flows from continuing operations25,882 16,464 
Operating cash flows from discontinued operations115 (403)
Net cash provided by (used in) operations25,997 16,061 
Cash Flows from Investing Activities:
Capital expenditures for property, plant and equipment(4,169)(3,746)
Proceeds from disposal of assets3,468 184 
Payments for purchases of investments in affiliates and other investments(92)(113)
Investing cash flows from continuing operations(793)(3,675)
Investing cash flows from discontinued operations— 15,000 
Net cash provided by (used in) investing activities(793)11,325 
Cash Flows from Financing Activities:
Payments of notes payable and other debt and deferred financing costs(16,560)(15,441)
Borrowings (payments) on line-of-credit agreement, net(7,000)9,000 
Cash dividends paid(16,524)(16,447)
Repurchases of common stock and other payments(1,240)(2,332)
Financing cash flows from continuing operations(41,324)(25,220)
Financing cash flows from discontinued operations— — 
Net cash provided by (used in) financing activities(41,324)(25,220)
Cash, Cash Equivalents, and Restricted Cash
Net increase (decrease) in cash, cash equivalents, and restricted cash(16,120)2,166 
Balance, beginning of period33,672 13,753 
Balance, end of period$17,552 $15,919 

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USE OF NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP measures when evaluating operating performance because management believes that they provide additional insight into the Company's and segments' operating results, and/or the underlying business trends affecting performance on a consistent and comparable basis from period to period. These measures generally are provided to investors as an additional means of evaluating the performance of ongoing operations. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for or superior to, financial measures calculated in accordance with GAAP.

NOI and Same-Store NOI

NOI is a non-GAAP measure used internally in evaluating the unlevered performance of the Company's Commercial Real Estate portfolio. Management believes NOI provides useful information to investors regarding the Company's financial condition and results of operations because it reflects only the contract-based income that is realizable (i.e., assuming collectability is deemed probable) and direct property-related expenses paid or payable in cash that are incurred at the property level, as well as trends in occupancy rates, rental rates and operating costs. When compared across periods, NOI can be used to determine trends in earnings of the Company's properties as this measure is not affected by non-contract-based revenue (e.g., straight-line lease adjustments required under GAAP and amortization of lease incentives and favorable/unfavorable lease assets/liabilities); by non-cash expense recognition items (e.g., the impact of depreciation related to capitalized costs for improved properties and building/tenant space improvements, amortization of leasing commissions, or impairments); by non-cash income related to sales-type leases; or by other income, expenses, gains, or losses that do not directly relate to the Company's ownership and operations of the properties (e.g., indirect selling, general, administrative and other expenses, as well as lease termination income and interest and other income (expense), net). Management believes the exclusion of these items from Commercial Real Estate operating profit (loss) is useful because it provides a performance measure of the revenue and expenses directly involved in owning and operation real estate assets. NOI should not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company reports NOI and Occupancy on a Same-Store basis, which includes the results of properties that were owned, operated, and stabilized for the entirety of the prior calendar year and current reporting period, year-to-date.
The Same-Store pool excludes properties under development, and properties acquired or sold during either of the comparable reporting periods. The Same-Store pool may also exclude properties that are fully or partially taken out of service for the purpose of redevelopment or repositioning. Management judgment is involved in the classification of properties for exclusion from the same-store pool when they are no longer considered stabilized due to redevelopment or other factors. Properties are moved into the Same-Store pool after one full calendar year of stabilized operation. Management believes that reporting on a Same-Store basis provides investors with additional information regarding the operating performance of comparable assets separate from other factors (such as the effect of developments, redevelopments, acquisitions or dispositions).

Reconciliations of CRE operating profit to CRE NOI and Same-Store NOI are as follows:
Three Months Ended March 31,
(amounts in thousands; unaudited)20252024Change
CRE Operating Profit$23,426 $21,981 $1,445 
Depreciation and amortization9,158 8,975 183 
Straight-line lease adjustments(226)(592)366 
Favorable/(unfavorable) lease amortization(43)(96)53 
Sales-type lease adjustments(50)— (50)
Termination fees and other(482)(1)(481)
Interest and other income (expense), net(8)(59)51 
Selling, general, and administrative 1,453 1,556 (103)
NOI33,228 31,764 1,464 
Less: NOI from acquisitions, dispositions, and other adjustments(839)(674)(165)
Same-Store NOI32,389 31,090 1,299 
Same-Store NOI % change4.2 %
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The forward looking guidance included in this release includes certain forward-looking information, including CRE Same-Store NOI growth %, that is not presented in accordance with GAAP. In reliance on the exception in Item 10(e)(1)(i)(B) of Regulation S-K, we do not provide a quantitative reconciliation of such forward-looking CRE Same-Store NOI growth % amounts to the most directly comparable GAAP financial measure. These forward-looking same-store calculations include only activity from properties owned for comparable periods. We are unable, without unreasonable effort, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items, including but not limited to, (i) occupancy changes; (ii) terms for new and renewal leases; (iii) collections from tenants; and (iv) other nonrecurring/unplanned income or expense items. These items are inherently uncertain and depend on various factors, many of which are beyond our control, and the unavailable components could have a significant impact on our future financial results.
Funds From Operations and FFO Related to CRE and Corporate
FFO serves as a supplemental measure to net income calculated in accordance with GAAP and management believes is useful for comparing the Company’s performance and operations to those of other REITs because it excludes items included in net income that do not relate to or are not indicative of its operating and financial performance, such as depreciation and amortization related to real estate, which assumes that the value of real estate assets diminishes predictably over time instead of fluctuating with market conditions, and items that can make periodic or peer analysis more difficult, such as gains and losses from the sale of CRE properties, impairment losses related to CRE properties, and income (loss) from discontinued operations. Management believes that FFO more accurately provides an investor an indication of the Company’s ability to incur and service debt, make capital expenditures and fund other needs.
FFO related to CRE and Corporate is a supplemental non-GAAP measure that refines FFO to reflect the operating performance of the Company's commercial real estate business. FFO related to CRE and Corporate is calculated by adjusting FFO to exclude the operating performance of the Company’s Land Operations segment. The Company also provides a reconciliation from CRE Operating Profit to FFO related to CRE and Corporate by including corporate, interest, and income tax expenses attributable to its commercial real estate business, and by excluding gains or losses on and depreciation and amortization of CRE properties, as well as distributions to participating securities. Management believes that FFO related to CRE and Corporate provides an additional measure to compare the Company’s performance by excluding legacy items from the Land Operations segment.

FFO and FFO related to CRE and Corporate do not represent alternatives to net income calculated in accordance with GAAP and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. In addition, FFO and FFO related to CRE and Corporate do not represent and should not be considered alternatives to cash generated from operating activities determined in accordance with GAAP, nor should they be used as measures of the Company’s liquidity, or cash available to fund the Company’s needs or pay distributions. FFO and FFO related to CRE and Corporate should be considered only as supplements to net income as a measure of the Company’s performance.

The Company reconciles FFO and FFO related to CRE and Corporate to the most directly-comparable GAAP measure, Net Income (Loss) available to A&B common shareholders. The Company's FFO and FFO related to CRE and Corporate may not be comparable to such metrics reported by other REITs due to possible differences in the interpretation of the current Nareit definition used by such REITs

Reconciliations of net income (loss) available to A&B common shareholders to FFO are as follows (amounts in thousands):

Three Months Ended March 31,
20252024
Net Income (Loss) available to A&B common shareholders21,433 19,974 
Depreciation and amortization of commercial real estate properties9,155 8,975 
(Gain) loss on commercial real estate transactions1
(4,103)— 
(Income) loss from discontinued operations, net of income taxes(139)256 
FFO26,346 29,205 
1 Includes selling profits from a sales-type lease.




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Reconciliations of net income (loss) available to A&B common shareholders to FFO related to CRE and Corporate, and CRE operating profit to FFO related to CRE and Corporate, are as follows (amounts in thousands):
Three Months Ended March 31,
20252024
Net Income (Loss) available to A&B common shareholders$21,433 $19,974 
Depreciation and amortization of commercial real estate properties9,155 8,975 
(Gain) loss on commercial real estate transactions1
(4,103)— 
(Income) loss from discontinued operations, net of income taxes(139)256 
Land Operations Operating Profit(4,850)(7,931)
FFO related to CRE and Corporate$21,496 $21,274 


Three Months Ended March 31,
20252024
CRE Operating Profit$23,426 $21,981 
Corporate Operating Profit(5,297)(4,164)
Loss on disposal of commercial real estate assets, net(25)— 
CRE properties depreciation and amortization9,155 8,975 
Interest Expense(5,802)(5,510)
Income Taxes39 — 
Distributions to participating securities— (8)
FFO related to CRE and Corporate$21,496 $21,274 

1Includes selling profits from a sales-type lease.
Reconciliations of net income (loss) available to A&B common shareholders per diluted share, to the forward-looking range of FFO per diluted share, are as follows:
Reconciliations of Net Income available to A&B common shareholders to FFO and FFO related to CRE and Corporate
Three Months Ended March 31, 2025
Full-Year 2025 Guidance - Current1
Full-Year 2025 Guidance - Initial
LowHighLowHigh
Net Income (Loss) available to A&B common shareholders per diluted share$0.29 $0.68 $0.74 $0.64 $0.71 
Depreciation and amortization of commercial real estate properties 0.13 0.49 0.49 0.49 0.49 
(Gain) loss on commercial real estate transactions(0.06)— — — — 
FFO per diluted share$0.36 $1.17 $1.23 $1.13 1.13$1.20 
Less: Land Operations Operating Profit per diluted share2
0.06 0.06 0.07 0.02 0.04 
FFO per diluted share related to CRE and Corporate$0.30 $1.11 $1.16 $1.11 $1.16 
1 The Full-Year 2025 Guidance - Current is as of the date of this earnings release and assumes that diluted shares equal the latest year-to-date ending amount.
2 Land Operations operating profit (loss) divided by diluted shares is equal to FFO per diluted share related to Land Operations as there are no reconciling items between Land Operations operating profit (loss) and FFO for the Land Operations segment.
Net Debt

Net Debt is calculated by adjusting the Company's total debt to its notional amount (by excluding unamortized premium, discount and capitalized loan fees) and by subtracting cash and cash equivalents recorded in the Company's consolidated balance sheets.

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A reconciliation of the Company's Net Debt is as follows.
March 31, December 31,
(amounts in thousands; unaudited)20252024
Debt
Secured debt$55,706$54,714
Unsecured term debt254,137270,123
Unsecured revolving credit facility143,000150,000
Total debt452,843474,837
Net unamortized deferred financing cost / discount (premium)327347
Cash and cash equivalents(16,855)(33,436)
Net debt$436,315$441,748

EBITDA and Adjusted EBITDA

The Company may report various forms of EBITDA (e.g. Consolidated EBITDA, Consolidated Adjusted EBITDA, and Land Operations EBITDA) as non-GAAP measures used by the Company in evaluating the segments' and Company's operating performance on a consistent and comparable basis from period to period. The Company provides this information to investors as an additional means of evaluating the performance of the segments' and Company’s ongoing operations.

The Company also adjusts Consolidated EBITDA to arrive at Consolidated Adjusted EBITDA for items identified as non-recurring, infrequent or unusual that are not expected to recur in the segment’s normal operations (or in the Company’s core business).

As an illustrative example, the Company identified non-cash impairment as a non-recurring, infrequent or unusual item that is not expected to recur in the consolidated or segment’s normal operations. By excluding these items from Consolidated EBITDA to arrive at Consolidated Adjusted EBITDA, the Company believes it provides meaningful supplemental information about its operating performance and facilitates comparisons to historical operating results. Such non-GAAP measures should not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Reconciliations of the Company's consolidated net income to Consolidated EBITDA and Consolidated Adjusted EBITDA are as follows:
TTM March 31, TTM December 31,
(amounts in thousands, unaudited)20252024
Net Income (Loss)$61,988 $60,537 
Adjustments:
Depreciation and amortization36,485 36,312 
Interest expense23,461 23,169 
Income tax expense (benefit)135 174 
Consolidated EBITDA122,069 120,192 
Asset impairments256 256 
(Gain) loss on commercial real estate transactions(4,103)— 
(Gain) loss on fair value adjustments related to interest rate swaps— (3,675)
Non-recurring financing-related charges— 2,350 
(Income) loss from discontinued operations, net of income taxes and excluding depreciation, amortization and interest expense3,071 3,466 
Consolidated Adjusted EBITDA$121,293 $122,589 
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FORWARD-LOOKING STATEMENTS

Statements in this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding possible or assumed future results of operations, business strategies, growth opportunities and competitive positions. Such forward-looking statements speak only as of the date the statements were made and are not guarantees of future performance. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from those expressed in or implied by the forward-looking statements. These factors include, but are not limited to, prevailing market conditions and other factors related to the Company's REIT status and the Company's business, the evaluation of alternatives by the Company related to its remaining legacy assets, and the risk factors discussed in Part I, Item 1A of the Company's most recent Form 10-K under the heading "Risk Factors", Form 10-Q, and other filings with the Securities and Exchange Commission. The information in this release should be evaluated in light of these important risk factors. We do not undertake any obligation to update the Company's forward-looking statements.
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