ALEX - Earnings call transcript Q1 2018 | Alexander & Baldwin, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Alexander & Baldwin 2018 First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference Ms. Suzy Hollinger, Vice President of Investor Relations. Ms. yours. is floor the Hollinger,

Suzy Hollinger

Jim Thank the Officer, you, discuss With our to participate Q&A Clayton Benjamin; welcome today Real the Parker, Estate in Officer; are Aloha, & Baldwin's here and and and Chris Alexander CEO, earnings. Chief President to CFO. first Lance are Chief call. Accounting call Chun, and Andrea. of Mead, also quarter me will portion XXXX and

statements. but that in we the statements date historical actual business are risks operations, forward-looking commence, cause positions. Act results guarantees relevant of could presentation statements please involve call regarding statements Before forward-looking significant within Private future of as statements to, performance. number speak the uncertainties competitive that are the a those and limited growth Reform or not by statements are assumed the results include, meaning possible only this Such were not to statements that Litigation opportunities forward-looking of differ made facts and XXXX that contemplated forward-looking from and are of future and not note strategies, the Securities of materially These of

filings not could risk measures of in uncertainties, light be and of the Securities Exchange to up our Management Slides do forward-looking in presentation assumptions, and Company's results obligation of should in our during open statements of in to non-GAAP by statements. and Chris implied measures slides Form regarding related in to generally reconciliations. financial differ These be market undertake are our call non-GAAP any Form referring presentation will expressed Included financial of the limited We update the discussed status for use our update the or and events evaluated today's these turn company's and Jim, Company's Forward-looking other prevailing other that, context Appendix these factors let who a to recent alexanderbaldwin.com. factors open the information for materially XX-K, that statements. will are include to this some a today. presentation this not operating timing website, and important presentation business The some number to discuss the available cause most and factors. statement call will download certain XX-Q, at we'll today's questions. Company's and the your and over from and Commission. subject call conditions REIT performance forward-looking and with over risks, are but a actual then for the will other the to guidance. return turn and from strategic factors presentation will Chris. then financial remarks matters closing with for Chris to me is With those

Chris Benjamin

Thanks thanks for on call. Suzy, everybody the and being

Our story can several to past with down for this quarter three and the creation be is value very themes. consistent boiled

and excellent improving Continued performance our non-commercial our businesses. estate and/or strong commercial business, real monetizing focus of our estate real on strategy, execution core continued from

generated disposition spinoff and announced shortly but acquisition strategic of new am migration the the our community nearly previously I three Hawaii to Mainland with the than That years, strategic made officially properties strategic dispositions Mainland fronts acquisition assets sales completed we March that Hawaii Mainland proud migration funded of we years five our many in of $X Mainland not just two total proceeds. in entry neighborhood Terramar. XXXX and primarily after on dispositions billion past turn. Hawaii by successfully progress process million into Let highly locations in from which retail in Matson last the commercial over fund important of our the nothing have centers over me perhaps started take these invested and the more in only last commercial been in but $XXX great properties. catalyzed to of facilitated has our few the we've premier We in

Center grown and portfolio. created well. also the commence which time our the into and but shops Pu'unene income January company. completed leasing leasing project. later going quarter Shopping of More advanced endeavor the milestone Hala operating creative concentrated our Lau the reconversion important of by step another Center space marking distribution, focused Ho'okele new year, Shopping with closure XX% assets net special now repositioning We'll integrating in over for we've the strategic this Also Aikahi construction We're and portfolio monumental we new the open value importantly, up that attractive Shopping final the is Center including Park on first in a a quite the at

demonstrate the commercial are As I of with increased expect portfolio. quarter to Not guidance of developed. and by quarter. strong estate of multiple the but and X.X%, re-leasing the reaffirming the market our the we line during is of of X%. quality spreads which follows theme real the which estate while the commercial our This in our strong business NOI on quarters leasing only high in said, X% of the our full-year X.X% first purchased segment our achieved strong to results the growth plan company it schedule, second is profit Based continued continue. real strength performance of assets the XX.X% and we same-store performance increased NOI in was Hawaii core Operating our is we we same-store

and little I discussing underpinned market. Our Hawaii by and the spend time market commercial fundamentals portfolio a portfolio's estate want to is real performance solid

about by my and thinking volcanic in we're the been let the the Island begin impacted say comments of that me people activity. Kauai have I the market, and just rains Before who recent Big most

so. of committed working to the with as have local efforts tightly-knit have and they estate supporting impacted. islands the this member do agencies have and isolated on fortunate how we directly been our residents are we're a real are employees the While assets impacts been recovery geographically determine that been and significant, community those and not But to to best

Hawaii often the to to market. is categorized many retail is length personal process. the commercial while Gateway right or actually household and to capita, low secondary and there tertiary market, Hawaii, the similar due measures, with California spending by to a further and By Strip relatively New per Hawaii and York. is which a in market. Turning low growth median income time now X permitting complexity per of unemployment, or complete income, zoning characterized characteristics Tier has capita retail supply as kept

with Mainland the the of and to-and-from stronger shipping have Hawaii. cost Hawaii strip peer high average We generally when because market also within markets penetration Demographics lower Internet of above companies. are retail than even portfolio principally the several compared are sales than

nation. a the rents foot As the highest square base in per are portfolio annualized our of for $XX.XX, result, $XXX among of average an sales grocer

X% this real same-store from Greenstreet said In addition, -box because own continued compared reaffirming as exposure is rent commercial I average strong center performance our a strip for in centers risk universe. low guidance percentage We're NOI. to and are to low to Greenstreet total year as we of big business our that our coverage our and of predominately the estate forecasting mid retailers at retailers increase X% neighborhood the particularly deems the as

address we improve businesses. that projects. business for making We're above on completing general non-REIT going performance theme I part materials business. These a the terms are to are migrating know referenced primarily we because out sale portfolio capital to We was of of the increasingly only it. previously the now need estate non-commercial investors on and our the to to reconversion this of simplifying until minimize focused and those objectives now into our is complete, improving real parts so third and the our the effort the capital talked relates that and/or struggle most highest and concerted in The our but with construction priority pull that we're development and efforts about to

internal frustration in business unusually we we've sporadic commodity been I our in reflected headwinds. pressure, the Among investors. competitive realignment We're review taken year-long financial few changes to operational that operational in role and materials other pricing aggregate new know and very like not Since outside The facilitate of Operation, a wet which we challenges with and start construction acquisition, assumed practices, and has shifts Let's strong transparency pending and recent the permitting its the had of our mix to and triggered poor. a and and and back whether, an in of our get focused promotions Grace for platform people are the and we're it the on to to a quarter remains results to fundamentally who asphalt steps but earlier it hires, sales several levels completion decision-making. late assets positive with business the the has both not operational has beyond financial which is upgrade management progress profitability. made increase of but greater initiatives be Pike with to tremendous of hot systems how of expanded some obviously our a Riegert where President We in March sell. amount were

company material I've just As a margins. revenue boost we material company sales are of not and a and you, help construction can many told expanded

continuing of for more suffice the medium the run With and optimistic about give retail homes, parcels sell residential these quarter details are and builder it year. much much well Jim but going actually In lots focus let attract operations undeveloped developments Performance outlook our to and existing either not I'll we're operations the not or our business, the for urban in financial should for year. positive performance coming capital land quarter through direction results term on into underway and in over various on the that it better as the this are industrial so of the say the about sell lots our I’m improving to even quite which is the to balance zoned going first quite condos, balance and and the lands. rate is for-sale of improve initiatives inventory, dramatically prospects on third-party efforts long town quarters.

diversified to our are tenants. lease advance efforts ag several advanced continue and we discussions addition, with in In

Kahului a the Finally, the expansion Maui park. of sales of of ag we’re expansion an including parcels airport couple an agricultural progressing and toward Maui land in for on

this provide Let more on activity. of a me all little color

balance our quarter first Milo about net O residential the and in Ka continue expect entire to O First the residential that several proceeds at units hope and year parcel including and the oceanfront together through collection in at inventory Kamalani, of Wailea, units. we Avenue several of inventory Wailea this cash Kamalani units We million more selling Keala $XX Kukui'ula. and XX sales including and generated Kahala Keala had

strategic our shift activity. we to has our of to while objectives been more activity reduce One for development development for-sale hold

development residential while housing realize for we entitled already that also land that communities. are ensuring want from landholdings our over to local best for and developed time our of some However, value much-needed is

of So Wailea, development is this O where a and of have are partners in seek parcels land Ka sell leads rather than to cases completion us developed Examples develop our and and capital and developers using of some Keala past. we Milo ourselves. these projects Wailea other third it ventures also for land parties to in and joint partners number the sold capital

Among as we're parcels look Kahului. are even several for and recapitalization leverage, and urban O Wailea which reduce have shift capital So are outside seeking our we candidates the that in from sale. assets to focus JVs, we some our or properties

where the could deployment. in but testing quarter the the discuss team Kukui'ula consistent but of primary of to we're the this in in for de-levering difficult focus over these earnings me detail. done. our vertical impact first We're With to more investment timing addition, feel projects assets now efforts on to shareholders our this for significant migration a In but that will and further don't market background, Mainland buildout enhance is is believe and absorption economic for turn Jim development that priorities to Success predict. most is our support early our let the with process the of initiating strategic that interest call process in is investment the process these our greatly we capital seek accelerated

Jim Mead

Thanks Chris, good afternoon.

achieve results Before we our for to I the year. ability better go you about to into overall feel give the plan context, good our

that slow we plan by has weather working and back Hawaii and core for our development later, I remainder acquisition few our in ground estate of Our the is material sale other will real of the impacted we plan. the consistent schedule the And and were the from and but half and the to transactions very lost the few first ahead the speak is of quarter. Land commercial portfolio first items are was a development results Mainland good Terramar although construction generating year. which properties hard that make of and sales materials plan to performance completed with

get So for guidance as generally be the any to when we year. won’t surprises are on we there track

$X.XX to properties Turning our share per $X.XX of Terramar fund we acquisition. sold per earnings, to the diluted share included gains earnings from the of

So $X.XX. we without a gains loss those of had

due venture the builder at the underperformance joint the schedule. and closed also impairments that sales expected transaction was got end the seasonality execution net quarter million. in a prices assets other In better had Kukui'ula QX we construction then segment. taken was fourth loss a like loss of in to last the the So great. We ahead materials of and land of started in underwritten sales we mainland of at In at our our and total, gains feel we last seven sales, $X.X had of words, totaling the and ended year

Park. we Slide discussed on estate Turning had our spread metrics. In same-store to very on we with XXX% tenant retail retail achieving the availability volume commercial rents. of our vacancy an Komohana continues was so strong achieve industrial Chris with very was in continues as real uptick total, feet square to XX,XXX well. anticipate next foot pace XX.X% are over and low QX. perform portfolio Leasing to leasing overall in particular our in down of square releasing industrial to anticipated portfolio to couple move-out that guidance full-year a in at We and well X.X% the portfolio. previously in results enjoy XX underpin included XXX,XXX in the Occupancy Hawaii quarters the Hawaii Industrial show continues

relatively activities the first one $X.X to operating here and vacancy coil construction a the due segment at the individual quarter. is event venture in million held plan affect especially on X.X% with large and builder the net partner. to point loss portfolio pace we vacancies same-store of at growth NOI are should up of joint remediation that a development considering loss was the are $X.X property. quarter overall quarter on only the discrete operation so occupancy. plan contributor for at this our issues out on million, this XX% of is leasing I and Our a small activity land also same was Retail excellent The produced our

During included $XX from activities and related the quarter, housing cash active our we million. Kahala sale in for full-some a joint our activities. of into development $X.X at million million the $XX.X described very generated in a we sales very from Kukui'ula that from totaling a the will closing this translate And $X.X venture development distribution million closings net pipeline development of Kamalani a Maui in believe XXXX. Chris land and including for

operating operation same segment profit QX. However, the QX had normal in our and the we expect and year for the ended from in are we activities so also back would in the plan land

debt Our to to by success plan assets of both our capital efforts the future depends capital company to upon bring year-end and reduce requirements. reduce partners monetize in our

So land important development to our and a execution our and is of big team. us focus strategy of

in EBITDA Turning costs, and $X.X of materials segment substantially reduced higher our reduced by versus plan and year we largest million poor were paving was million the last $X.X The paving reported XX%. in result weather last than $X.X operating our comparison and profit construction The million adjusted volumes contributors for year. day to million material quarter. $X.X lower available our to

improvement SG&A result to in reduced compresses also the management prior margins costs in about running volumes related a paving incurred we spoken as business business we and calls largely have We highest initiatives so fixed reorganization. of

team side profitability. activity seeing large and of sales the results management to margin third-party its we the we're our though a On already high of articulated from positive Grace is which execution recently a new driver and strategy expand material

we're are on commitments. remainder to we ahead third-party catch hard half know on first more land the the of but funding don't of working under during encouraging results year year’s the make the optimistic how three delayed completed a exchanges paving firm have much $XX assumption than profit. mainland yet can We much These verbal already a weather With of activities. Terramar We million of budget by sale sourced our increased improvement focus of are regain sales the our stat and up the we lost contractor sales we and sales, financed The can noncore that cautiously was mortgage. quarter Hawaii for sales, schedule. XXXX through acquisition asset

You we this with million million cost distribution financing million We term a $XX in in that penalties. term cash bank quarter fourth year fixed prepayment carries five $XXX prefund special $XXX term low is the the on This unlike supplemented will to of and rate recall in that a bank the loans closed institutional no facility portion January. QX. financing

so average annual a million years life amortization we average have it of of average And three its piece closed We this of can short maturity our capital debt reduce an the fixing to refinancing our next the cash selected monetization financings few a that we a of our debt over E payments nine proceeds had with debt able the were in to requirements We maturity by increase Series to repay extent our part years. structure we and due large provides activities. in debt because $XX from April.

was the by the Slide the year debt distribution. X.X most during years maturity expect because XX% increases debt balance changes would to paying plan the which the during rate special to fixed average the impact Our and I quarter, years is of of debt our XX our six percentage fixed refinancing pro forma from offloading significant for recaps the of sheet the end. increase year rate includes

that end the as distribution will and all included had equity recall of year we all for that special You debt at nonintuitive purposes. balance treatment sheet count purposes for accounting some share

see none sheet $XXX the anticipated guidance guidance is accurately estate reflect metrics commercial is that achieve business of XXXX at and can presented this the changing very now guidance in schedule presented from call balance the year particularly the composition special quarter’s real last in the certain of segment year key end. our on of perform We and number year You we the to outstanding and well million distribution. shares this cash stock of our

Although on we expectations episodic did calculate not forecast. and give specific of its profit sales guidance to land generally because difficult

We are and more we’ve as have material be land clarity comfortable should meet half be the execution progress expected the progresses. from with QX the made provide able which will our year to the profits weighted towards of second not to is sales internal to plans year.

execution said a of for earlier said and would track I goal strategy and that debt our by that our I of recall result. on the call year As successful are depends the we mid-five EBITDA achieving end to land still debt the in times upon development we're you reduction will targeting

there opportunity and materials the we whether for starting feel such construction we the behind as during because while business in plan As ground but formal back of year. second is remainder did still the quarter the of good not gain uncertainties provide guidance are

me the turn back Chris. Let call to

Chris Benjamin

course we’re migration, Most of course can of hasn’t that vision we several REIT our stay story. reflects and But our progress and value. translated this into continually tell the strategies years. Jim. simplify disappointed stock to only and Mainland past true over advancing recently We’ve the the made Thanks with the continue a in strong our price conversion

operating our well we’re environment the of Our commercial the perform and fortunate fundamentals portfolio that strong. continues and portfolio our to

real to grow our meet year track full advance to guidance expect projects operating major for the on to net future financial We’re significantly estate and commercial income.

other executing in on that creating shareholder to on our segments, And segments. several strategic construction. long-term forward diligent in building our these we've and Jim incrementally commercial formal critical our the just That Executing out our priorities is and remain tenanting I'm will real our progress portfolio business turned materials headway estate to concludes the take look guidance two priorities call. but spaces for future discussed with to operations land questions. pleased we're your made and on priorities and these renewing you focus our happy on I We comments. to value. of toward has our updating achieving leases, our

Operator

Our [Operator McGrath Evercore. the Sheila question with from comes first of Instructions] line

Your line is open.

Sheila McGrath

give results. a The leasing quarter were wasn’t that and those quarter, detail able leasing I was I was you the to industrial mentioned glean if the little the strong wondering bit more after the spreads could in release In if on some strong industrial spreads? you

Lance Parker

industrial that over to purchased our middle think we thesis park big Honokohau, Hawaii. month-to-month one about So we last on long-term. was with opportunities of when that that's the on investment them the of ability the those from the in XX,XXX foot leases talked square that industrial to we spreads I half was And almost fact the bought convert island rents regard there, of or the year tenants and were that to of

So we've spreads process [indiscernible] get leasing through that systematically a good as working result. been

Sheila McGrath

that leasing did quarter? first happen within So the

Lance Parker

first That within did happen quarter, correct. the

Sheila McGrath

down JV of am debt is as there just from source tax more - of then land source I primarily debt a leakage sales. using to or by wondering lot by you getting And is paydown. mentioned land with mid if the a tax sales to EBITDA Xs capital leakage on Jim net efficient the of

Jim Mead

what the transact when - as right sell things right, tax for we out Yes so we leakage the there taxes be. we to of generally predict TRS. it’s always difficult now is And There will possibility out transact.

So they are taxable transactions. potentially

our in assets we’re am sell against get So could tax kind I year. to is… don't looking that say though I trying what the I the through think there to would but that be to that’s some plan of leakage, that

Chris Benjamin

could for a maybe guess I I second. jump in

taxable such of margin is helping our will be as they and of lot these important terms would that some Kahala, some development be in of the assets, course assets think capital of while and of delever. profit Wailea very certainly also of I cash that return assets a generating of the that there first is some some all to

capital not So reform somewhat. tax obviously tax does as as far goes, have And would then hit the of any reduce implications. within it return the tax

the would to So of the majority we pay I available debt. proceeds think reality - be down it would is be vast would that the

Sheila McGrath

And maybe obviously think then anything was wondering active, Chris on looking capital acquisitions about to at how would super quarter is new the in there and that sourcing fund if first you just pipeline you're I’m opportunities?

Chris Benjamin

much the most That looking debt. recapitalization on done possibility That course for And a about I variety or sell let source more our would on bit either of on talked is would in be we're with pipeline referenced our to we then that disposition I then couple work could try say proceeds land ourselves get an Jim and for we’re I'd or looking situation if upgrade reference be Lance we ag that of were attractive of capital new if certainly working chime little side the a a most eligible into of I also focus right to focus in most mean to new the generate assets that of year these on we've an not would acquire as end or But have think say XXXX year. better Maui. primary additional we that would would I the put place either a that this teams perhaps to sheet deals well. delevering, a deals to some now some And cash But transaction. to of active better of the that we leave year. next but acquisitive more have we being with delever actively - to some would be look parcels the by balance And attractive proceeds sales. did to reasons really

now focused agreement not I we've way I sheet is our we’re disposition on guess that a Lance but balance the a given think good little side. to right the bit pipeline, in side got is all than paraphrase So acquisition more

Operator

question of Steve Sidoti. [Operator comes with Instructions] next line Our the from O'Hara

line open. Your is

Steve O'Hara

about - or Grace talking pretty what’s rough numbers? saying are about improving Hi, you of just so about talk you’re you’re could talking talking what a seems - you improving about improving of about first off the last like year’s you’re

Chris Benjamin

our are we be this to first it. the first I point the now had make right talked EBITDA difficult rate to four of be change very it��s closer about it whether quarter We in maybe that the quarter last than is handicap I the certainly given dollars for going we’re – that would or and year hit we not the wanted is can $XX I that times number. a EBITDA the couple we're Well where on exceeded to number range balance run million of million year. to be to a while say result we’ll that can't and within say even that of What lot million a X and of is that call the to

years as do it's And very been years for lot as we that over new environments at more environment still into been change, financial are competitive of business that accept are business performance revenue you point number I think had earlier. higher business. sales expect we what the in process that in is proactively to know money the some drive change, insight better I think been think want much much I also going down of for And issues reasons but of the control. however the is our the main Even that's and been in in So last a million the addressing when where that rolling $XX that make would make I we that be to us margin margin year It changes, has on. that sleeves I and the few business. to drivers are better extent of help goes it’s better to management trending purchased performance part some outside up got changes convey to to the because But a that I'm we some that increase we systems pricing are give there trying change, sales. number it's our changes next changes, commodity of going of our look are markets going of referenced to we material that a increased activity performance that couple

out see. lot point the and that a focus direction part a things this there's very of taking of feel steps about But encouraged it’s business. we’re with and you're very the I I good personally but going our the at and an on realize going I'm is by energy at and we're So there wait Grace to Grace

Steve O'Hara

And then - you seems expectations it mean can I it for maybe think sticking a expectations I quick I just up performed now. your that while has don’t to me guess there's remind real with or like

it’s the of of kind it’s so that been hedge I mean I - free bidding So terms been weather in the was there within process. change the competition organization think was left just through and without or it or that unexpected same issues? like market going more team anything right everybody's was you the kind the guys place in forces that maybe of management

Chris Benjamin

Steve. question tough answer a it’s Yes, to

that did performance. soon just that don't acquisition there are although was a them, it’s changes I think we shortly combination in we our fairly these there we things changes would And certainly in there a here. hope impacted of business. think a what environment certainly environmental we've about pricing acquired commodity a them destiny number of after by happen recently pass not. the that number external mean a I I be more and There quickly own improvements competitive environmental some weather to happened that changes, there that after of issues pass that more were have there while very is could things more general feeling decided I of were few would that some the a proactive was was controlling number of they And are our got think that of one

the blood number consultants take some importantly so order really we I drivers in us a our And in the we independent of the take look and come in has some actions some getting that also systems to fresh at make led very an complete of have of referenced really that management most positions business. profitability new to into folks some the changes to hard digging and it and getting way improving Making view operate. and sure engaging in financial including briefly

a been proactive we internally both are now really only the are factors combination I a it's very of ones. driven we the that way. thing in that and driven feel externally And that while So can doing control internally

Steve O'Hara

maybe I answered of lower And release I than just in bit you coming on in this expect property part? [indiscernible] up the little trend guide your full is may of spread that it year the it or one was maybe mix think it is a but have down quarter or the think question then is conservatism things just on

Lance Parker

do the spreads also in quarter, able that in the out feeling about terms really the we've good as we just things up our comfortable had said, or have I say the feel the for it’s XXXX leasing quarters XXXX recognizing for as look quarter. be portfolio obviously coming rather. high as other next just that are we've just about we in environment So we’re going seen that first good but of would in we three to volume been the to guidance but rest general, accomplish good the of leasing with That we reaffirming strong and not very opportunity

Steve O'Hara

lower. going online I or they’re And to that ongoing come then come shops that of XXXX might or I think in impact the press look how to if type spreads have the just maybe mean you guess kind of are soon number about forward? release talked mean going online NOI you talk expect on starting it about what like projects that I I lastly you to in and a But sounds and recent of

Chris Benjamin

we that’s any ground-up our slides today, a have development and a for also schedule the hold only projects So of had but I repositioning development had don't it’s in Ho'okele, our supplement. projects. think It’s schedule we not like

expect sort not generate NOI, we the believe when to on only I general detail what so stabilize. timing gives of those also expect of but to we projects And that

Clayton So jump feel in. and to Lance free

Lance Parker

X.X% referenced were So then stated Lau little to NOI kind the incremental the and X.X% far we the Steve in you referencing as incremental is Hala stabilized property which cash impact. as of supplemental for we

Chris Benjamin

question that part to I another you Did that have missed?

Steve O'Hara

is out stays they you mean leasing expect healthy NOI in just guess on that could online. and all here. based I schedule, the just and there we the for would you are you that these And growth rate back have going a that assuming you're targeting or XXXX I number have seem but and projects laid bring go project maybe I talked any on look to projects about of that it maybe type environment

Chris Benjamin

NOI. we from not all summary as and reach about generate projects that till would middle talked expect online Hilands in to this we've those the just a referring in out have [indiscernible]. out $X.X of the say about million different XXXX, building for project stuff yet total that pipeline expected XXXX million about have and our in growth we XXXX we’re on Steve anywhere assets but to, to four same-store stabilization Pearl million NOI of What high-level - of growth Those of cost that you're to of come of a So our case and I projected year expectations. reaffirmed the first got $X.X or we $XX are case projects

do the by to sense our until or the in expect they in So late guidance that would portfolio. any will the that additive year. probably not development from which repositioning how is provided existing we table get NOI of but help not good can the have XX I the same-store table to supplement, we on think a pretty NOI, using And new

Operator

have Evercore. from we a follow McGrath And up Sheila question with

Your line open. is

Sheila McGrath

leased at open of what assuming in next and Just I'm when into open on Lau phase it year stabilization left it's that and XX% kind more once is to just year opens the leased will will at right? that shops late Hala not all everything

Lance Parker

Sheila. correct That’s

just right have in available. the spaces are now line that So we

restaurants to end six as expect well two would So between phase in toward these the our year. the Company open of total are and Roy's we of have a which which are we Maui as Green

have to year sort earth that floor and they for that and there at got and second be we be to expect location doing coterminous won’t They’re the The open is some actually about work then inked down that least space. and in have in first entire for last another to half U.S. Seagem existing will tenant Kailua of they the their be deals tenant will another expiration. be and already with we the deal time

Sheila McGrath

to on there the a space is of amount activity lease? decent remaining And

Lance Parker

those so that to dust users provide starting pickup We're be screens in going there those of the look I we for day last to a have really closer to expected construction. to slide if we’re week the screens we’d for activity we see tenants was We in were was completion to base be deck and just think, the particularly literally of the types nice inline a that that local that down the able took down. the you really took shot more

to up. do expect now with that point us at activity pick the we project, So in

Sheila McGrath

how you in that. the kind about process leasing talk change just you could operation going is then just that reconversion view how or did And is for talk cost and savings strategically that push some you the about see how do if Chris benefits in-house. was that And wondering with you change? management a of I bringing

Chris Benjamin

dramatically it for that positions undertaken today We overall management. amazing really thing. and respect looking few with reasons and the of think both in-house been of undertaking and some bringing to a a let from accounting absolutely still we’re a the I Yes, I could of leasing it's it's few going. but it's be on fill so how very property Lance last and property accounting of we’re and elaborate can me the it’s and let they’ve management, things that a but positions talk job. can dramatic employees, we’re open bringing respect got leasing to positions. speaking remarkable still it's But couple I all company it’s strategic all and I'd effort that a little very With done broadly been work, say say talk it’s still Lance property and a property more can say our been some strategic specifically different a bit that, huge in is have very and we’re jump Lance company but lot still - think and years both a management to transition, people really lot about broadly those management property transitioning still done in has then it's stress everything an I I wish of would stabilized, we’re - on changed

Lance Parker

if higher So truly hopefully to going which from we’re It’s deal I provide ways really still really cost and benefit our portfolio, would ultimately higher times, aside just our with the customer take for But down in-house leaves away what project. which course to advantage into at really them being and I lead I closer investment properties add ability all mean just number competitive the all underwrite. rents. able one think these which able better being the the leasing the retention win better do in to property services measure of end to at I we to that. time team our Terramar be day and to the that being gave did I from and think And you of it Sheila of is to look us management retention the think being able turn first quicker of will in that to to tenants service our to savings

some measure as are we need in-house. to fill of away that and benefits we’ll do XXXX. Chris So continue positions additional me right mentioned, throughout we that of still out And harder have we’re seeing the to that that to those bringing sort to

Operator

Suzy now any to concludes this like remarks. I’d for back to closing the call over today’s you. Hollinger session. Q&A Thank And turn

Suzy Hollinger

you Thank the today. everyone for on call being

(XXX) earnings, have call please area If at regarding code questions further me XXX-XXXX. Thanks. you

Operator

conclude Ladies gentlemen, today's conference. in disconnect. thank have day. does you great now and and program the Everyone, participating for you a This may

Alexander & Baldwin (ALEX) 8 May 182018 Q1 Earnings call transcript