Alexander & Baldwin (ALEX) 8-K Alexander & Baldwin, Inc.’s Real Estate Supplement Update

Exhibit 99.1

Alexander & Baldwin, Inc.’s Real Estate Supplement Update

Fourth Quarter 2015

(Unaudited)

About This Supplement Update

This periodic Supplement Update is designed to provide current and potential shareholders of Alexander & Baldwin, Inc. with additional information regarding the Company’s Real Estate operating segments. This information is supplemental to and does not replace the information provided to shareholders in the Company’s periodic filings with the Securities and Exchange Commission.

This Fourth Quarter 2015 Supplement updates Tables 7-15 of the Company’s 2014 Real Estate Supplement.

The information contained in this Supplement Update is unaudited and should be read in conjunction with the Company’s 2014 Real Estate Supplement, 2014 Form 10-K and other filings with the SEC through the date of this Supplement Update.

Feedback and suggestions regarding the contents of this Supplement Update are welcomed, and should be directed to Suzy P. Hollinger, Director, Investor Relations, via telephone at (808) 525-8422 or via email to shollinger@abinc.com.

Alexander & Baldwin, Inc. │Real Estate Supplement Update

Index to Real Estate Supplement Update

(Unaudited)

Fourth Quarter 2015

Forward-Looking Statements	2
Basis of Presentation	2
Real Estate Leasing Segment – Asset Descriptions and Statistics	3
Property Detail – Hawaii (Table 7)	3
Property Detail – Mainland (Table 8)	5
Comparable % Occupancy Data by Geographic Region and Asset Class (Table 9)	6
Weighted Average Gross Leasable Area by Geographic Region and Asset Class (Table 10)	6
Occupancy Trend Analysis – Last Five Quarters (Table 11)	6
Real Estate Leasing Net Operating Income (NOI) (Table 12)	7
Real Estate Leasing Same Store NOI (Table 13)	7
Statement on Management’s Use of Non-GAAP Financial Measures	8
Reconciliation of Real Estate Leasing Operating Profit to NOI and Same Store NOI (Table 14)	8
Portfolio Acquisitions and Dispositions	9
2015 and 2014 Improved Property Portfolio Acquisitions/Dispositions (Table 15)	9

1

Forward-Looking Statements

Statements in this Supplement Update that are not historical facts are “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. These forward-looking statements are not guarantees of future performance. This Supplement Update should be read in conjunction with pages 17-30 of Alexander & Baldwin, Inc.’s 2014 Form 10-K and other filings with the SEC through the date of this Supplement Update, which identify important factors that could affect the forward-looking statements in this Supplement Update. We do not undertake any obligation to update our forward-looking statements.

Basis of Presentation

The information contained in this Supplement Update does not purport to disclose all items required by accounting principles generally accepted in the United States of America (GAAP). The information contained in this Supplement Update is unaudited and should be read in conjunction with Alexander & Baldwin, Inc.’s 2014 Real Estate Supplement, 2014 Form 10-K and other filings with the SEC through the date of this Supplement Update.

2

Real Estate Leasing Segment – Asset Descriptions and Statistics

Table 7

Property Detail - Hawaii

Property	Number of properties at 12/31/15		Island		Gross leasable area at 12/31/15 (sq. ft.)		Leased1 (percent)		Outstanding debt ($ in 000s)		4Q2015 NOI2 ($ in 000s)		4Q2015 % NOI to total Hawaii portfolio
Retail:
Pearl Highlands Center		1		Oahu		415,400		96	$	91,835	$	2,194		13.3
Kailua Retail		16		Oahu		414,300		93		10,992		3,096		18.8
Waianae Mall		1		Oahu		170,300		86		-		411		2.5
Kaneohe Bay Shopping Center3		1		Oahu		125,100		100		-		548		3.3
Waipio Shopping Center		1		Oahu		113,800		95		-		764		4.6
The Shops at Kukui'ula		1		Kauai		89,000		98		37,033		753		4.6
Lanihau Marketplace		1		Hawaii		88,300		99		-		397		2.4
Kunia Shopping Center		1		Oahu		60,400		87		-		480		2.9
Lahaina Square		1		Maui		50,200		73		-		113		0.7
Kahului Shopping Center		1		Maui		49,700		97		-		122		0.7
Napili Plaza		1		Maui		45,700		88		-		209		1.3
Gateway at Mililani Mauka		1		Oahu		34,900		94		-		317		1.9
Port Allen Marina Center		1		Kauai		23,600		84		-		106		0.7
Subtotal – Retail		28				1,680,700		93	$	139,860	$	9,510		57.7
Industrial:
Komohana Industrial Park4		1		Oahu		238,300		100	$	-	$	1,014		6.1
Kakaako Commerce Center		1		Oahu		204,400		93		-		555		3.4
Waipio Industrial		1		Oahu		158,400		99		-		534		3.2
P&L Building		1		Maui		104,100		98		-		305		1.8
Kailua Industrial/Other		6		Oahu		68,800		96		-		198		1.2
Port Allen		3		Kauai		63,800		89		-		145		0.9
Subtotal – Industrial		13				837,800		97	$	-	$	2,751		16.6
Office:
Kahului Office Building		1		Maui		59,600		82	$	-	$	305		1.9
Kahului Office Center		1		Maui		33,400		89		-		207		1.3
Stangenwald Building		1		Oahu		27,100		84		-		82		0.5
Judd Building5		1		Oahu		20,200		86		-		2		0.0
Gateway at Mililani Mauka South		1		Oahu		18,700		100		-		171		1.0
Maui Clinic Building		1		Maui		16,600		46		-		20		0.1
Lono Center		1		Maui		13,700		95		-		69		0.4
Subtotal – Office		7				189,300		83	$	-	$	856		5.2

Table 7 continued on the next page

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Table 7

Property Detail - Hawaii (Continued from previous page)

Property	Number of properties at 12/31/15		Island	Gross leasable area at 12/31/15 (sq. ft.)		Leased1 (percent)		Outstanding debt ($ in 000s)		4Q2015 NOI2 ($ in 000s)		4Q2015 % NOI to total Hawaii portfolio
Ground Leases
Kailua		20 acres	Oahu		-			$	-	$	904		5.5
Other Oahu		22 acres	Oahu		-				-		1,207		7.3
Neighbor Island		2,691 acres6	Neighbor Island		-				-		1,263		7.7
Subtotal - Ground Leases		2,733 acres			-			$	-	$	3,374		20.5
Total Hawaii		48			2,707,800		94	$	139,860	$	16,491		100.0

¹ Represents the average percentage of space leased during the period referenced or A&B’s ownership period, whichever is shorter. Space is considered leased when a tenancy agreement has been fully executed or the space is revenue producing.

² See page 8 for a statement regarding the Company’s use of non-GAAP financial measures and a reconciliation of Leasing operating profit to NOI for the total portfolio.

³ Kaneohe Bay Shopping Center is a leasehold property.

⁴ Includes ground leased income.

⁵ NOI for the quarter was lower due to a tenant rent credit related to the impact of a fire at the building.

⁶ Includes 64 ground leased urban acres.

Note: For portfolioasset class and geographic occupancy see Table 9 on page 6. Gross leasable area is periodically adjusted based on remeasurement or reconfiguration of space

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Table 8

Property Detail - Mainland

Property	Number of properties at 12/31/15		Location	Gross leasable area at 12/31/15 (sq. ft.)		Leased1 (percent)		Outstanding debt ($ in 000s)		4Q2015 NOI2 ($ in 000s)		4Q2015 % NOI to total Mainland portfolio
Retail:
Little Cottonwood Center		1	Sandy, UT		141,500		92	$	-	$	372		8.4
Royal MacArthur Center		1	Dallas, TX		44,800		96		-		247		5.6
Subtotal – Retail		2			186,300		93	$	-	$	619		14.0
Industrial:
Midstate Hayes		1	Visalia, CA		790,200		100	$	8,243	$	709		15.9
Sparks Business Center		1	Sparks, NV		396,100		96		-		427		9.6
Subtotal – Industrial		2			1,186,300		99	$	8,243	$	1,136		25.5
Office:
1800 and 1820 Preston Park		1	Plano, TX		198,800		89	$	-	$	983		22.1
Ninigret Office Park		1	Salt Lake City, UT		185,500		100		-		514		11.6
2868 Prospect Park		1	Sacramento, CA		163,300		100		-		565		12.7
Concorde Commerce Center		1	Phoenix, AZ		138,700		91		-		437		9.8
Deer Valley Financial Center		1	Phoenix, AZ		126,600		60		-		51		1.1
Gateway Oaks		1	Sacramento, CA		59,700		92		-		142		3.2
Subtotal – Office		6			872,600		89	$	-	$	2,692		60.5
Total Mainland		10			2,245,200		94	$	8,243	$	4,447		100.0

¹ Represents the average percentage of space leased during the period referenced or A&B’s ownership period, whichever is shorter. Space is considered leased when a tenancy agreement has been fully executed or the space is revenue producing.

² See page 8 for a statement regarding the Company’s use of non-GAAP financial measures and a reconciliation of Leasing operating profit to NOI for the total portfolio.

Note: For portfolioasset class and geographic occupancy see Table 9 on page 6. Gross leasable area is periodically adjusted based on remeasurement or reconfiguration of space.

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Table 9

Comparable % Occupancy Data by Geographic Region and Asset Class

	4Q 2015								4Q 2014								Percentage point change
Location	Retail		Industrial		Office		Total		Retail		Industrial		Office		Total		Retail			Industrial			Office			Total
Hawaii improved		93		97		83		94		94		98		84		94		(1	)		(1	)		(1	)		-
Mainland improved		93		99		89		94		90		99		89		94		3			-			-			-
Total		93		98		88		94		93		99		88		94		-			(1	)		-			-

Table 10

Weighted Average Gross Leasable Area by Geographic Region and Asset Class

	4Q 2015 (in sq. ft.)								4Q 2014 (in sq. ft.)								Percentage Change
Location	Retail		Industrial		Office		Total		Retail		Industrial		Office		Total		Retail			Industrial		Office			Total
Hawaii improved		1,680,700		837,800		189,300		2,707,800		1,553,400		701,600		189,000		2,444,000		8.2			19.4		0.2			10.8
Mainland improved		186,300		1,186,300		928,600		2,301,200		232,800		1,186,300		1,127,100		2,546,200		(20.0	)		-		(17.6	)		(9.6	)
Total		1,867,000		2,024,100		1,117,900		5,009,000		1,786,200		1,887,900		1,316,100		4,990,200		4.5			7.2		(15.1	)		0.4

Table 11

Occupancy Trend Analysis – Last Five Quarters¹

	4Q2015						3Q2015						2Q2015						1Q2015						4Q2014
	Number of properties		Weighted average sq. ft.		Percent Leased		Number of properties		Weighted average sq. ft.		Percent Leased		Number of properties		Weighted average sq. ft.		Percent Leased		Number of properties		Weighted average sq. ft.		Percent Leased		Number of properties		Weighted average sq. ft.		Percent Leased
Retail		30		1,867,000		93		30		1,856,900		94		30		1,856,900		94		29		1,773,900		94		30		1,786,200		93
Industrial		15		2,024,100		98		15		2,024,100		97		15		2,024,100		97		15		2,024,100		98		15		1,887,900		99
Office		13		1,117,900		88		14		1,145,900		91		14		1,145,900		91		15		1,317,800		88		15		1,316,100		88
Total		58		5,009,000		94		59		5,026,900		95		59		5,026,900		94		59		5,115,800		94		60		4,990,200		94

¹ Number of properties is as of quarter end.

Note: Gross leasable area is periodically adjusted based on remeasurement of reconfiguration of space.

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Table 12

Real Estate Leasing Net Operating Income (NOI)

(in millions)

	4Q 2015								4Q 2014								Percentage Change
Location	Retail		Industrial		Office		Total		Retail		Industrial		Office		Total		Retail		Industrial			Office		Total
Hawaii improved	$	9.5	$	2.8	$	0.8	$	13.1	$	8.7	$	2.3	$	0.8	$	11.8		9.2		21.7			-		11.0
Hawaii unimproved		-		-		-		3.4		-		-		-		3.0		-		-			-		13.3
Total Hawaii	$	9.5	$	2.8	$	0.8	$	16.5	$	8.7	$	2.3	$	0.8	$	14.8		9.2		21.7			-		11.5
Mainland improved		0.6		1.1		3.0		4.7		0.5		1.2		2.5		4.2		20.0		(8.3	)		20.0		11.9
Total	$	10.1	$	3.9	$	3.8	$	21.2	$	9.2	$	3.5	$	3.3	$	19.0		9.8		11.4			15.2		11.6

Table 13

Real Estate Leasing Same Store NOI¹

(in millions)

	4Q 2015								4Q 2014								Percentage Change
Location	Retail		Industrial		Office		Total		Retail		Industrial		Office		Total		Retail		Industrial			Office		Total
Hawaii improved	$	8.8	$	2.2	$	0.9	$	11.9	$	8.4	$	2.1	$	0.8	$	11.3		4.8		4.8			12.5		5.3
Hawaii unimproved		-		-		-		3.4		-		-		-		3.0		-		-			-		13.3
Total Hawaii	$	8.8	$	2.2	$	0.9	$	15.3	$	8.4	$	2.1	$	0.8	$	14.3		4.8		4.8			12.5		7.0
Mainland improved		0.6		1.1		2.7		4.4		0.6		1.2		1.9		3.7		-		(8.3	)		42.1		18.9
Total	$	9.4	$	3.3	$	3.6	$	19.7	$	9.0	$	3.3	$	2.7	$	18.0		4.4		-			33.3		9.4

¹ Same Store NOI relates to properties that were operated throughout the duration of both periods under comparison.

Note: See page 8 for a statement on the Company’s use of non-GAAP financial measures and a reconciliation of Leasing operating profit to Real Estate Leasing NOI and Real Estate Leasing same store NOI.

7

Statement on Management’s Use of Non-GAAP Financial Measures

 

The Company calculates NOI as operating profit from continuing operations, less general and administrative expenses, straight-line rental adjustments, interest income, interest expense, depreciation and amortization, and gains on sales of interests in real estate. NOI is considered by management to be an important and appropriate supplemental performance metric because management believes it helps both investors and management understand the ongoing core operations of our properties excluding corporate and financing-related costs and noncash depreciation and amortization. NOI is an unlevered operating performance metric of our properties and allows for a useful comparison of the operating performance of individual assets or groups of assets. This measure thereby provides an operating perspective not immediately apparent from GAAP income (loss) from operations or net income (loss). NOI should not be considered as an alternative to GAAP net income as an indicator of the Company's financial performance, or as an alternative to cash flow from operating activities as a measure of the Company's liquidity. Other real estate companies may use different methodologies for calculating NOI, and accordingly, the Company's presentation of NOI may not be comparable to other real estate companies. The Company believes that the Real Estate Leasing segment's operating profit from continuing operations is the most directly comparable GAAP measurement to NOI. The Company also calculates NOI for properties that were owned throughout the entire duration of both periods under comparison and refers to this calculation as “same-store NOI.” A reconciliation of Real Estate Leasing segment operating profit to Real Estate Leasing segment NOI and same-store NOI is as follows:

Table 14

Reconciliation of Real Estate Operating Profit to NOI and Same Store NOI¹ (Non-GAAP)

(in millions)

	4Q 2015			4Q 2014
Real Estate Leasing segment operating profit before discontinued operations	$	13.5		$	11.6
Less amounts reported in discontinued operations		-			-
Real Estate Leasing segment operating profit after subtracting discontinued operations	$	13.5		$	11.6
Adjustments:
Depreciation and amortization	$	7.1		$	7.0
Straight-line lease adjustments		(0.2	)		(0.9	)
General and administrative expenses		0.8			1.3
Real Estate Leasing segment NOI	$	21.2		$	19.0
Acquisitions/ disposition and other adjustments		(1.5	)		(1.0	)
Real Estate Leasing segment same store NOI1	$	19.7		$	18.0

¹ NOI related to properties that were operated throughout the duration of both periods under comparison.

8

Portfolio Acquisitions and Dispositions

 

Table 15

2015 Property Portfolio Acquisitions/Dispositions

Property acquired in 2015	Acquisition date (month/year)		Acquisition price (in millions)		Gross leasable area (sq. ft.)		Leased percentage at acquisition
Aikahi Park Shopping Center - Leasehold Improvements		5/15	$	2		98,000		86

Property disposed in 2015	Disposition date (month/year)		Disposition price (in millions)		Gross leasable area (sq. ft.)		Leased percentage at disposition
Union Bank		12/15	$	10		84,000		53
San Pedro Plaza		5/15	$	17		171,900		69
Wilshire Shopping Center		3/15	$	4		46,500		72
Total			$	31		302,400

2014 Property Portfolio Acquisitions/Dispositions

Property acquired in 2014	Acquisition date (month/year)		Acquisition price (in millions)		Gross leasable area (sq. ft.)		Leased percentage at acquisition
Kakaako Commerce Center		12/14	$	39		204,400		90

Property disposed in 2014	Disposition date (month/year)		Disposition price (in millions)		Gross leasable area (sq. ft.)		Leased percentage at disposition
Maui Mall		1/14	$	64		185,700		97

9