Alexander & Baldwin Reports Strong Financial Performance for Q4 and Full Year 2024

Strong Performance by Alexander & Baldwin, Inc.

In an impressive financial reveal, Alexander & Baldwin, Inc. (A&B), a leading commercial real estate company based in Hawai'i, announced its results for the fourth quarter and full year of 2024. The figures reflect a promising trajectory as the company navigates the competitive landscape of commercial real estate in the state.

Q4 2024 Highlights

For the fourth quarter of 2024, A&B reported a net income of $12.4 million, equating to $0.17 per diluted share. This is a notable recovery compared to the same quarter in 2023, where the company faced losses. The highlight of Q4 was the company's operating profit in Commercial Real Estate (CRE), which stood at $22 million.

Further breaking down the financials, A&B posted Funds From Operations (FFO) of $22 million, translating to $0.30 per diluted share. Meanwhile, Adjusted FFO came in at $14.2 million, or $0.19 per diluted share. The growth in Same-Store Net Operating Income (NOI) for CRE was recorded at 2.4%, with occupancy rates remaining healthy at 94.6% as of December 31, 2024.

Construction has also ramped up, as A&B began a new project for a 29,550 square foot warehouse at Maui Business Park II, indicating ongoing expansion plans. The company's proactive approach includes amending its revolving credit facility, extending the maturity to October 2028, thus enhancing its liquidity position.

Full-Year 2024 Performance

The full year depicted a robust financial picture for A&B, with total net income reaching $60.5 million, or $0.83 per diluted share, compared to $29.7 million in 2023. The total FFO for the year also showed substantial growth at $100 million, up from $79.4 million the previous year. Adjusted FFO followed suit at $80.1 million.

Adding to this accomplishment, the general and administrative expenses were reduced by $4.2 million, showcasing the company’s commitment to operational efficiency.

In terms of portfolio management, A&B successfully managed to improve its leasing spreads considerably, with a 11.7% increase noted in comparable blended leasing spreads for the improved portfolio. Notably, the retail spaces exhibited even stronger growth of 13.5%.

Investment and Future Outlook

In terms of strategic investments, A&B secured an acquisition of an 81,500 square foot food distribution facility, underscoring the company’s growth-focused strategy. Moving forward into 2025, A&B has set expectations of continued earnings growth from its robust portfolio amidst ongoing developments and acquisitions.

Lance Parker, the President and CEO of Alexander & Baldwin, expressed optimism regarding their outlook for the upcoming year, highlighting the company's agility in maneuvering through the market. "Our portfolio ended the year on a high note with better-than-expected results. Occupancy is healthy, and leasing volumes continue to trend well,” Parker stated.

Conclusion

The results from Alexander & Baldwin, Inc. unequivocally reflect its strong positioning within the commercial real estate market in Hawai'i. With a focus on growth, strategic investments, and operational efficiency, the company is poised for a promising 2025, making it an entity to watch closely in the coming years.