Alexander & Baldwin Reports Impressive Q3 Earnings Growth

Overview of Q3 Earnings Report

Alexander & Baldwin, Inc. (NYSE: ALEX), a prominent name in Hawaii's commercial real estate landscape, has reported its financial results for the third quarter of 2025, showcasing remarkable growth in key performance metrics.

Quarterly Financial Performance Insights

The company announced a net income of $14.3 million, translating to $0.20 per diluted share. Additionally, the Commercial Real Estate (CRE) operating profit reached $22.7 million during this quarter. This represents a significant achievement for the company, reflecting effective management and strategic positioning in the market.

Key Highlights

• Funds From Operations ("FFO") stood at $21.4 million, or $0.29 per diluted share, showcasing strong operational efficiency.
• The FFO associated with CRE and Corporate was $21.7 million, equivalent to $0.30 per diluted share, indicating robust performance in these segments.
• CRE Same-Store Net Operating Income ("NOI") saw an increase of 0.6%, demonstrating stable growth.
• The leased occupancy rate as of September 30, 2025, was reported at 95.6%, indicating strong demand for the company's properties.

Strategic Developments

Alexander & Baldwin is also advancing its industrial development projects with notable progress. The company is actively constructing a build-to-suit facility at the Maui Business Park and has initiated ground-breaking for two new buildings at Komohana Industrial, expected to contribute over 150,000 square feet of gross leasable area upon completion.

Management Comments

Lance Parker, the President and CEO of Alexander & Baldwin, remarked, "We are pleased that overall third-quarter results have exceeded expectations, and we remain confident in our full-year outlook. Our commercial real estate portfolio has showcased strong performance during the quarter alongside advancements in our construction projects. These developments position us favorably for future growth. With increasing momentum in Hawaii’s investment market, we are optimistic about both internal and external growth opportunities."

Financial Guidance for 2025

The company has raised its FFO guidance for the year, reflecting strong confidence in its operational and financial performance for 2025. Management expects that maintained focus on commercial real estate development areas will yield positive results amidst evolving market conditions.

About Alexander & Baldwin, Inc.

Alexander & Baldwin, Inc. operates as Hawaii's only publicly traded real estate investment trust focusing exclusively on commercial real estate. The firm holds a diversified portfolio of approximately 4 million square feet in commercial spaces across retail, industrial, and office sectors, alongside significant ground lease assets. Over its 155-year history, the company has played a crucial role in shaping Hawaii's economy.

Frequently Asked Questions

1. What were the key highlights from A&B's Q3 performance?

A&B reported net income of $14.3 million, with an FFO of $21.4 million, demonstrating robust operational efficiency and earnings growth.

2. What is the company's outlook for the rest of 2025?

The company has raised its FFO guidance, expressing strong confidence in its ongoing growth and development strategies.

3. How is A&B enhancing its commercial real estate portfolio?

A&B is actively developing new industrial spaces and has executed lease renewals, enhancing its property portfolio and occupancy rates.

4. What is FFO and why is it important?

Funds From Operations (FFO) is a key performance measure for REITs, giving investors insight into the operational income and financial performance of the company.

5. How does A&B position itself in Hawaii's market?

A&B is the largest owner of grocery-anchored, neighborhood shopping centers in Hawaii, underlining its significant influence on the local commercial real estate market.

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