ALEX - Earnings call transcript Q3 2021 | Alexander & Baldwin, Inc.

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Operator

Good day, and welcome to the Alexander & Baldwin Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Steve Swett with Investor Relations. Please go ahead.

Steve Swett

Thank you. our discuss to quarter Baldwin's welcome earnings. XXXX and call Alexander to third Aloha, for call our our and today Financial me With earnings Officer, and Brown, Benjamin; Officer. Officer; Chief are Chris Lance Operating Parker, Chief Brett Chief Executive President A&B's Chief present will Clayton for Accounting be call. is of portion Q&A the Officer, available also Chun, and the

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

by Kukuiula, results by risks other materially venture company's are of generally company status light The call that and market differ any the factors. of Forward-looking factors related information its in Form XX-K, from include, statements company's these should to These actual cause could of at and XX-Q to, and reconciliations. our the results not Included in with its forward-looking and by We pandemic appendix the during related referring & operations, of condition; will and evaluated not important factors a our factors of with Materials update. measures those section the is the to to financial slides most uncertainties, the are presentation this are related financial be businesses; company's liquidity Form do in and non-GAAP the certain risk the use limited company's today's impacts prevailing at the alternatives and call COVID-XX or obligation business other a this events to implied to Investors discussed these website to today's and www.alexanderbaldwin.com. evaluation the subject be the download to for measures of associated timing Slides today. statements. statement the regarding filings development other available on REIT Construction and presentation SEC. company's the a and Management and strategic Chris in number recent statements. expressed of update presentation presentation will non-GAAP but conditions assumptions forward-looking the of our the business; in risks from undertake with the of company's joint open

on our me up it update estate Brett Chris for turn matters. discuss we to over real will and With an some remarks, for financial to that, will your then it return Lance and will We operations, questions. presentation open closing for Chris. over let then the then will turn

Chris Benjamin

strong acknowledge our announced progress, to like to do that, but Thanks, quarter on to simplification and I operating I'm recent afternoon promotions before listeners. a good and Steve, excited Monday. performance that of report two on were I'd

A&B's commercial estate and and Under Operating our the expanded promoted to been commercial A&B now thrived his real company. a portfolio has played business. real into company. Lance transforming Chief Parker leadership, Lance core Officer huge role First, Hawaii is a has of in focused estate has

be we Lance's until position, to as has the been that a such pleased promoting businesses, to can and real Officer, progress Morita our and me I'm within that advancing collaboration previously from estate Lance Scott announced them Chief focus commercial Also, monetize on Nelson Counsel, signal our preserving Legal named about what report and continue XXXX. new to in President operations plan teams. real retire have focused his agenda as his legal and noncore doing expansion. commercial Scott's roles I'm company. estate by early our commercial tremendous this be excited Chun, who Our we'll estate for so Grace, ensuring Vice and so, they team will Corporate and to we between in replacing real about and

our to on Now third quarter results.

a levels. September. in holiday announced gathering strong did restrictions of variant, Delta XXXX Passenger season. Further, It's during produced far this X.X% economy. estate July in And recovery XX-month for remains come. quarter, week, no of we due beginning of XX% $X.XX of Hawaii results significant international performance again thus, last pullback up travelers, strong and peak of The sinking and environment. first not an alignment worst our quarter arrivals only is strong governor meaningful per in travel We improve, And portfolio the from positive. should sign in The Hawaii's same the for were a of strength travel tourism at November are further leasing last the the diluted XXXX to Delta outlook loosened summer core levels just Our commercial the for have help that small of share, of great economy This international environment dodged foundation our the spoke unemployment once fundamentals expectations delivering to variant, strong XXXX. the state's to portfolio quarter this federal requirements, the a while real XX% but year. the excellent are improved which travelers that low note so to with FFO continue Hawaii's state's we've international the also of levels that X. to with the essentially now growth important of very half more dramatically leasing welcome levels reflects

properties, parcels, our portfolio. not which resurgence is Although results we driving Kukuiula for results in venture the tourist Year-to-date generating Hawaii's projects annual project, market a proceeds The a is sales partnership made heavily we positive cash activity, see the in million. third XX good distributions, the sales bulk quarter. residential retail traffic activity bulk from sales Kukuiula benefit third the to quarter, third in main of are dependent to remains in economic parcel, bringing result at this the to and total tourism $XX estate we real XX proceeds continue broad approximately row drive on to of strong, that from at community-based $XX the also joint best million This two the providing during year-to-date the units last at making and in a various the closed our decade. we is ventures across quarter joint units where cash closed

in to Turning with sales. our simplification efforts, potential advancing pleased several progress I'm our land

about zone on commercial leverage interest We we land achieve to X.Xx again transactions to transactions real a our quarter our our to portfolio delevering improved further Kukuiula. adjusted advantage our we real Lance EBITDA from debt growth, net that was as discussing in to has And describe strengthened of do of we close, balance and commercial end, At urban stronger balance focus have assets taking but flow some we existing perhaps acquisition expect metrics growth. sheet possibly combination year sales X.Xx ago. and and how powder cash land, of compared estate expect before are improved we're such will even to conclusion now estate reinvestment dry The through close our the positioning into ourselves some before efforts. our for including agricultural with and efforts. they land always cautious year-end, monetization sheet and toward both move additional noncore debt noncore our

the to positive Materials in segment third generated & adjusted million, positive the $X.X Construction, Turning sequential reflecting of quarter, quarter X.X performance. improvement – of EBITDA in another of EBITDA M&C

continuation encouraged of that the and in contracted underlying support Most in seeing factors built should backlog notably, by finally we more added We this to the converted be positive are work. trend. we're that XXXX a to of XXXX

Parker, sorry, As as revenue. it The we're be reminder, contract work chart – winning but estate must Lance in before confirmed earnings to greater generate will a these in over the more the as in Already to a real ahead. bidder, started turn the I'm our fourth backlog we with commercial new quarters the Operating benefits paving to significant is Chief a be to Lance? I'm added volumes. to result, work call contracted and when converted of see has quarter, on positions as productive With work quarter, our in review slide, the an that, uptick the work additional third can added we've recent and uptick Officer, the this jobs shown to pleased the the us do highlights. in drive in who

Lance Parker

record-level the performance In in continue through achieved half performance standard up over we'll were overall for up Chris. average reflecting another and leases consecutive year, me, into an is leased quarter, you, XX, for XX% basis well. X.X% XXXX. leased third improved X.X% excuse sequentially XX.X%. represents volume with basis XX.X%, year-over-year, record perform The and and strong and of at acceleration the quarter, portfolio Thank same-store quarter points Both see We saw third the approximately XXX,XXX and strong square end of collections. we spreads Beginning XX the the our points the new leases was including another consecutive spreads feet confidence during retail XX very trends NOI of of CRE first XXXX, giving performance same-store new executed and operations. sequentially, quarter continues to that to leases. us XX up year-end greatly CRE tenant leasing prior – with occupancy to positive of occupancy of

we growth. recent success acquisitions. our With shifting to in to attention our monetization, are Turning

have With liquidity, growth advantage has and to we including prudently The as million reopening, $XXX pursue of capacity As of portfolio, slowed an powder forward. significantly credit line dry strong active we pipeline. as cash uncover on a reviewing well total of taking the plenty are relationships transaction going and market. flows now which of our during our strategy cash CRE our our from market, in our local to value restocking COVID, sharpshooter, Hawaii-focused and best we decades-long and are is

regard In fact, were we to expire, scale, XXXX that pleased Shopping With expand Aikahi a in to an our our set mentioned, acquired We first additional we acquisition forward industrial announce industrial to as our center using expand build-out two years. Chris toward have is Kailua. industrial Center Albeit shops. smaller are portfolio and reached desire Efforts continue funds our to from upgrade substantial as of property the located back given this It's and Honolulu, port footprint. adjacent minutes within sharing the the completion on urban also the look portfolio in airport. refresh the underway our great the immediately acquisitions well-located fundamentals growth. core work central to market to activity, especially pivot redevelopment strong growing Park has additional and and CRE tenant and we to in of be to the

We with incremental completed is here annual of will have next of in leasing uplift receive and XXXX X%. additional returns realized million to million, representing NOI NOI anticipated to income projected $X.X incremental $X.X year X.X% as

within and Waikiki flagship are enhance near is next incorporated center. property Ala design few of in well-located elements to Sustainable center Manoa pipeline, improve This the to experience our campus options. Moana. Marketplace. will University be the pleased our of the building miles are an community shopping service neighborhood efforts shopping Plans extremely share and grocery-anchored the redevelopment in this We to Waikiki a and and of dining,

project, repositioning the expect XXXX $X and this on cost anticipate stabilized a double invest we digits. For to in million low return approximately in

Highlands retail additional Finally, of to in call is to focus of a largest This broader example on and and power bring a It Brett? Brett another tenants. beginning rooftop The more annual of for our rooftop expected is select will XXX% to financial to asset. initiative energy the of details. Pearl now will X.X-megawatt common I'll system energy we provide of system $XXX,XXX the have efficiency portfolio. of at the approximately of NOI center. area XXXX offset to part later commenced also be solar and be to turn photovoltaic generate sized over our operational construction the our Center, to

Brett Brown

Thanks, everyone. our with Lance, afternoon, and good results. Starting financial

recorded we million of to of the $X.XX quarter, net or the share $X.XX For per of million $X.X compared $X income third XXXX. net share income or same per in quarter

reserved or million per same per million year. $XX.X with or tenant share past $X.XX million million or to funds compared from the due in per share share $X.XX or months year. prior $X.XX performance, XX was compared quarter FFO the prior Third quarter of $X.XX in improved in higher second to of FFO per the core third in collections quarter. of current flat operations the FFO second or $X.XX first amounts. the $XX.X Growth quarter $XX.X in Core up basis, share was and the was over per were resulting $XX.X from rent same so payments the On share our continued our quarter, per a real XX% previously relative quarter FFO to and increased was third the portfolio reflecting of commercial core sequential Both across quarter the far estate share strengthening XXXX. to $X.XX

than or our the reflects $X.X from in or improved NOI of was XXXX. resulted quarter, the our third now turn results of period $XX.X collections, Estate Real the rents. was to XXXX. and $X.X of than million million which of year me overall same rent million segment. both quarter recovery Let again, current revenues $XX XX% prior increase higher The XX% in the CRE ago quarter tenants Commercial higher the million of including

included third to related reserves than $XX.X third quarter Same-store recovery or of the the higher $XXX,XXX XXXX. The balances. of was NOI of rent previously million reserved reversal XX% quarter million of NOI $X.X XXXX of

XX. leasing leasing. a We to quarter Turning volumes had for record new with

As standard totaling overall, leases approximately we feet. XXX,XXX completed square XX

spreads leases, new X.X% comparable portfoliowide for For and were X.X% leases.

and the we're in and continued seeing volume of quarter, term leasing approximately a totaling extensions, X.X activity high quarter, we this square average tenant The X,XXX down XX across feet addition, three demand at lease Hawaii from second the excellent the COVID-related modification In reflects weighted years. signed market. fundamentals of exceptional

Our the $XX venture million where were A&B quarter $X XX million. in units land and of $X.X approximately third $X.X of resulting sold, the operations primarily million in joint quarterly of is generated total to parcels the XXXX. million EBITDA and related Included in business produced results proceeds income Kukuiula, of cash to revenue of bulk

due As partner Chris straight Kukuiula, a to quarter. third a mentioned, we the for activity sales at received distribution

the further & with Construction of paving the third generated million quarter, Materials sequential EBITDA for the attributable of $X.X segment Our projects. commencement increase adjusted to

to year in Finally, the quarter the our million last $XX to pandemic expenses for $XX.X consolidated simplification reflecting of continue to XXXX G&A, levels XXXX we've with Reportable are the experienced our from transaction. we related reductions G&A total we below advance our the process pleased of the costs of the respect up year-end of year, as $XX be to in now nearly streamlining streamlining this range to We efforts. well been million, expect termination and $XX our and million steady of a pension XXXX the G&A were with million, expect progress to making G&A third refinancing and our efforts. due height G&A the and decreases G&A the QX combination very low at

Let to balance our metrics. liquidity sheet turn me and now

million, including leverage of our At on liquidity unencumbered of $XXX to and small five quarter we in capacity and debt approximately our which liquidity EBITDA off $XXX $XXX net adjusted loans outstanding total range XXXX, value. facility. of the was facility, billion draw XX, were our million with a totaling two at gross assets times book million now total of debt ample September This $X.X million pool cash the of and credit within had exceeds remaining million, six we $XX mortgage $XX to to on had We properties end. these target adding credit quarter, paid

The of repurchase an program with along at-the-market of our established issuance for we go share to $XXX is authorized stock. authorization. equity to existing up common quarter, the million ATM issuance During

term funds August quarter, to an the we the $XXX ratings-based of bank the in we cost recast any facility, repurchase points. did the total from to further During facility, other completed as up by third ATM added improvements. million among extending achieving credit quarter, may $XXX XXXX our by million million the $XX any Under pricing lowered not or loan, out credit to the increasing syndicated was rating to shares. issue shares under a grid XX investment-grade and the of the during a order reduce Also to term basis spreads our repay agreement, capacity we

very have pivot provide will and are tools necessary our all steps and tools as end, XX-months the to EBITDA quarter shareholder facility, material debt markets recast robust the credit from happy line ensure value facility, adjusted and essentially to the times debt last as we We share X.X ATM no was support ago. now and X.X we At capital our maximize have banks closing to capital down new our credit and XXXX. enhance the markets have to the simplification of to After repurchase we intended capabilities other until These one us authorization growth. complete REIT. trailing Together, lenders year consolidated times, a our the to in are maturities options. net with quarter

total stands to fourth payment declare to in quarter at dividend at XXXX. today. XX% capitalization our in to end debt XX% at quarter and December Our plans January With with our a market dividend, Board respect stood

guidance range of share $X.XX Regarding per share. from range of are $X.XX core for per to our $X.XX guidance, raising a we a FFO $X.XX per to XXXX to share

compensation ERP to over implementation to turn his our our fourth Additionally, CRE which With year-to-date guidance on costs updated This G&A rents for to NOI collections and reserve of the we of Chris? remarks. year, same-store Chris the for an lower the I'll call guidance of of reflects expectations remainder X% XX%. well incentive performance range outlook are closing performance-based the XX% to updated that, due as quarter our strong accruals. range as to from includes increasing the XX% higher and portfolio

Chris Benjamin

significant Thanks, to growth strengthening balance further and portfolio the pleased our from Brett. this We growth continues commercial new quarter, leasing we're Hawaii record as generating support were advancing very fundamentals simplification and benefit to robust our results activity our of real our sheet with economy. NOI Strategically, the in estate.

While completed and entire as I just it's to good a for their in dedication the focus the beginning team to we back year. one, our October we want A&B thank was acknowledge pivot this growth. the small and work acquisition

Action to released Make a call environmental, taking Scotland making how Climate progress called With and place our aligned on the responsibility I'll our Global be which for end, week, We a is private for that, our Forum website, conference commitment Goals. corporate and responsible panel components second annual the a our Sustainable to I'm questions. Lastly, Development COPXX to is the UN excited The Hawaii quick recently Everyone's your open report, practices, governance tomorrow. at which this Business speaking with partners on on forum we'll note social be be and are success. Goals of Local highlights now panelist is long-standing and on To discussing our Action, key this citizens. available sector corporate Hawaii's in commitment the

Operator

Thank Instructions] from Daniel Sandler. Piper you question And first the ahead. go will Santos be from [Operator Please

Daniel Santos

was particular And XX to happening might seem we my XX plans on but like us you would definitely course, us of a the and like business the of than to into first thank questions. recovery. some It for give disclosed Grace haven't outlook you in sell, months. I you one that's of is that maybe looks sort sort I what's faster more expected. Hey, on insight taking bit My detail some give wondering that driving any next if business, what the then, for know

Chris Benjamin

that for and those take thanks the Chris, is This two Dan, – questions. me let question. Yes.

revenue. you been. to has taken us, last And there I'm all, a actually faster hear has you think last little the you the longer and been We've contracted generate hopes we turn for the expected, it's largely than that to had of Grace first high happening So frankly, for year. built profitability backlog bit because the say backlog year recovery because is of into and that thrilled frustrating recovery that it over it jobs had

the chart So that why happened what into respect are we contracted we that's showed quarter jobs. excited to with and the about backlog in converting third

business of doing elaborate that's there certain is briefly to Just a on important, to are why with construction the work issues barriers often one in areas.

common move also the are from, one. of you most bigger that the total, you choose the a keep scheduling course, is and to The to issues. part of number And crews jobs your then, of different the have contracted productive. rain example, fully and your pivot work For island, are better there to able flex

got, amount as certain because expect volume crews So you've though you in wouldn't expect our would of more and necessarily the of result to doubled, revenue we work to day, more more that jobs do productive we contracted so a even can't a a contracted than keep higher work. has our double

I'd And one probably things, other news. too. good say of that's in the that's So the been have things There business. encouraging most

in pickup the activity in been our activity not Just paving pickup but and paving our mix to aggregate generally, helped the hot sell because helpful we providers. only has people's construction rock Hawaii, other other has in activity sales,

that get right fourth do rainier window quarter. to I'm fourth So – the to with tend now. quarter. in out always rain the have reality the I have quarter the does at actually caveat fourth improving it we outlook for forecasts looking an

I prepared quarter. cognizant our we positions an us, or October, have we better great start So we to in & that a even be in off have good we're we October outlook is But asterisk fact of monetization though of business. had be for the for for always Construction to a fourth it to well. so think, Materials going weather, and have on the the That

we our wanted performance We earnings business impacted not the other we COVID monetize to you that last said turn think when year to some I around. significantly. and know, As chose factors

to that. next earnings for possible monetize table this year. trajectory we're And think toward monetization the to XXXX nice will set steady progress to in have the business. it's making a certainly good I positive we try to look But in

Daniel Santos

on on, apologies a you was is it. of if answer. quarter is is of next is My you wondering provide pronunciation, that acceleration. it one Kukuiula, very you some was that think as best a That then maybe Got I you some – the question could sort for considering your decade. said helpful you of and were sales noncore what mentioned of one And assets your you're color – assets offshoot, considering a that it driving the selling. in

give So is – there insight of maybe us calculus what driving sort on some what internal your what's the and sell. you're deciding to

Chris Benjamin

Yes.

try all I'll track to thanks. So keep of those questions.

at as we've what I minor year said clarification, So already is actually better is any or probably year-to-date since that just a Kukuiula, than our XXXX had so.

a than more decade. So

and our decade, over Our be in quarterly really made utilities we investment available. lots would roadways, And more are more result, – to more several result, annual is there in bring having great for driver I the drivers. which that the years is, inventory grading news. One best an inventory and market, ago two biggest building to think which out single putting the meant not a

So of lot coincided Hawaii. residential the in of surge pandemic-driven for land in demand that inventory with completion the a

at probably is of there. Kukuiula. And our benefited business. got there probably pandemic obviously, the tough pandemic state, on our a our it's the few It's – one has the business here And people lot is very was that linings – of and of sales from the part so been parts it the we big a portion devastating for from silver overall, are and probably

monetization. activity market not driving the in and few at and did that not there Kukuiula. elsewhere. marketing because market We to project of project. selected would project the reaction we and currently, with both because work better And process, in on buyer all we chasing was that land and So strong because the the We Hawaii the the the have generally sell as then a get of what's run went a deals, liked in capital surge of to performance strong didn't years to have a a we the performance ago. out decided as positions We of really that's for us

we'd a Now But transactions to or these sell least in this redeploy potential always that transaction real capital growth, our with Kukuiula, close. feel if consistent to us close which again, allow our at would advancing we're it that estate when we that caveat know do never which we they'll toward interest strategy. toward then commercial is, will year

a was there I third forgotten. think question that I've there

me. to feel free So remind

think the strategic strategically, I sort do of asking And really we ultimately. monetize you want – think that we was want to real question what think not how estate, were monetize. everything we I commercial is about to

next with to the developments We've doing think, lands sale had overall, the on may Now also about a to XXXX. pleased pace, some get And pricing to with financial But sold of pleased balance of necessarily transactions don't – We've we've it urgency it with possibly that year. very done haven't well. delevering undertaking been the good we've in the and we We've desire our several fire years. date. simplification we a we're assets. I and I'm for patient trying I'm We've mode. results been ag it. Kukuiula, sold been off. actually Grace, sell in some we well this year.

Daniel Santos

from That’s you. it. Got That’s me. super Thank helpful. all

Chris Benjamin

Dan. Thanks,

Operator

[Operator from The next be Instructions] go will Evercore. from question McGrath Sheila Please ahead.

Sheila McGrath

Yes.

You looking small must or give up the you actively on us acquisitions. could at industrial square I pricing these cap mentioned and you're noncore a since And the property. you assets, detail if transaction, but more little per bit be it's price teeing foot. a also know just rate

pipeline more some on us lease give or now, the could industrial, you looks If ground detail right retail.

Lance Parker

Sheila, this is Lance. Good afternoon.

Sheila McGrath

Hi, Lance. Congrats.

Lance Parker

Thank appreciate you. I that.

foot distance is minutes' The urban to yard. warehouse Honolulu, about it's to a warehouse industrial walking the and as itself industrial as the XX,XXX with port time drive So to well-located regard the airport. square well small in acquisition, extremely literally

are starting our industrial has represents The excited team I more And fruits growth the was were that to to little to labor of and thawing. – it pretty market been we see we into through our market the strong knowing So toward fruits, bit and pivoting looking here of it's a a years. nevertheless, terms tight for think how of buy in small market. investments COVID, submarket some but

excited So to be sellers. with engaged potential more

existing assets, be classes. to into will our buy In our asset of three continue terms priority to

So those retail, industrial to room with us this for sufficient acquisition, ground grow to asset in We here leases Hawaii. as think well. in continue classes there's

will our really be that so focus. And

in the terms to with – be In cap are. amount compression just I of some liquidity to expect market how tight And earlier to market, in see pricing, chasing Chris' of significant would things comments a given rate opportunities. the

good was industrial a do particular asset seen, is really about add But location And us in. good, for We there clear, to additional feel for cap in pricing it's some the XX-foot so dock-high And a is indicated, think for that as and the portfolio. building asset X.X% we've attributes, good of then achieved. pricing loading, the very going just about actually the growth. room we to I this expectations pricing we given some that our

Sheila McGrath

reversals not can nonrecurring forward? Okay. in NOI how – to those the there a you anything just And Brett, Great. same-store increase. us we if like numbers, want And like that in maybe retail work. then deferrals should to is remind pull be I careful on monster and the – know was that

Brett Brown

Sheila. question, Good

our a earnings as for, the if current the deferrals, period. reserved they So impact not did weren't generally, reminder, in

was So anything recorded XXXX. income in XXXX deferred from we as

$X.XX in $XXX,XXX a of the positive per reversals, did reserve about as far impact or quarter impact share. current and that the As about had

that the rents that the current That's so – year, And with was about impact. quarter. the forward also quarter, We rent reversals had something fourth in into I the and is big say. picked we in or pleased – anticipate percentage that should and so current the $X.X don't going million, we a reserve up that the that's percentage

And opportunities so current And get going reversal as And being you certainty. on less that – rents there expectation originally reserved reserve the percentage becomes of just lower quarter. when was away a then rents the further catch-up those is were some cautious those are the forward. the from in

conservative, in go being forward again, the So including that either. not

Sheila McGrath

account share, for? and – how was the was a much the So percentage $X.XX that $XXX,XXX but did rent

Brett Brown

per That's share. about $X.XX

Sheila McGrath

$X.XX.

ag – able to just to pay should you we and large deal structure you think you like ag without noncore did I'm taxes? it execute think on side, Do just tax that that. commercial land there was then you'll sounds about you Kukuiula. significant And able the on it that Chris, these how leakage. be and Okay. The lands, were so no having wondering to last

Chris Benjamin

Sorry, okay. Sheila. I do,

would credits most taxable over within or think the TRS, sell believe, and next that losses But we and leakage. Kukuiula, I within year of period standpoint, we into current sits when or lot of though some from to be I book And a also related land sell carryforwards that the balance losses. are And – past shelter this past year the is that income hope sufficient selling of tax REIT do the a the – within the most have, most favorable. to then expect that we to it from any of next subsidiary. we to even likely

ago, years book basis a big Kukuiula write-off the and so in had recall quite few is that high. a You'll we tax

so shelter And would to provide that also tax would that leakage. allow some avoid us

Sheila McGrath

you. Thank Okay.

Chris Benjamin

Thanks, Sheila.

Operator

be Backer Sidoti. question ahead. go from from And Marla Please the next will

Marla Backer

for you did. you everything Thank

So I can acquisition extent that it. provide getting the more follow-up pipeline have color the a you little question to a bit on on

Given dependent divesting about? they're Are that the an of acquisitions you've there some any assets noncore noncore your talking the – that's in is any of the selling timing issue given not not here? assumption? assets, potential liquidity, on been of Or way timing

Chris Benjamin

assets. is the This I'll joining would a is to either in available depend on us Thanks, income-producing order larger the bit enable to jump front. would able overall, But they feel anything assets us any in going let to Obviously, from we investments, to additional close the I do or need we do would for cash short then I keep with we But transition looking the anticipate Chris, – sales liquidity. would investments. into objective acquisition not of our term, from Clayton. and that answer to to, we the non are if we that near is on assets or start. Brett here. And magnitude Marla, for nonincome-producing want Lance or be while – certainly would in that handle

not evolution, disposing that an something dependent growth important now. of on, we're it's it's right to So assets fund many but

Marla Backer

sorry. then, And

Lance Parker

just into have, given us. in recycle was patient to we them into advantages we those to I appropriate comments, the buyers little to Lance. historically capital. nor dependent But TRS, can proceeds to we receive to having replacing on for acquisitions bit been to It's those the basis. a We've Marla. use particularly in on the once going that, Hi, the market, are proceeds, be add Chris' XXXX a reinvest earlier tax-efficient more we

Marla Backer

Are accrued of And obviously, you. of in across niche any you improvements and there had pretty those reversals concerns? of improvements much some you're Or board? where Thank that the seeing revenues you're your terms XXXX, have now. deferrals rental then you tenants are Okay. the you the seeing among terms what seeing sectors in in and still

Lance Parker

see statement. of maybe general. tenant to just that very well that, supply continue third general terms basis. for And then three collections, from and across seen into This and level business and consistent, of a we deals there Tenant had throughout sort terms guess track on a would speak And executed. there. interest. out which we make broad QX we in and year, which been say some health pretty tenant as our regard their base, is Lance to that's know to a in say in have would recovery I things chain issues for again. we questions I I But the as to to models to that. that had sort obviously there board, they've are tenants changes of account look shortages, with that labor the heard with of we our remains strong consistency that into our the leasing consistent we've quarter see we interest similarly, And of is that one monthly of And health, obviously, continuing heading QX obviously improvement in that's through is tenant number we on tracking is the and QX. I of QX. sales, to

good I lag a that's that, those our is generally, continues just to would be one that. maybe have the might segment within And one the the all nicely. else say I bit. about a within So that to improving But I say think feeling portfolio. that of theater other everything we exception than would industry statements

Marla Backer

much. very Thanks Okay.

Chris Benjamin

you, Thank Marla.

Operator

a is follow-up from Sheila ahead. Evercore. question go next the Please from McGrath And

Sheila McGrath

a Yes. now, on it's I gains With levels. that as to you're stabilized? having expect more discussions being pre-pandemic had or do question retail you occupancy. like It looks occupancy realistic any you're back

Lance Parker

little could would Sheila. bit growth, for there opportunity – some of be I there a think

we As point, see I your of continue strong majority where in point we is any – interest. expect indicated, this And so leasing of for to see to just tenants available. our in continue vacancy But spaces to we have larger the with handful at vacancy discussions wouldn't portfolio. of improvement our that, portion that within be mid-box to a potential I while near-term

material So retail I toward growth on in year. stability year-to-date. to the plan wouldn't achieve the the portfolio end of within any of able we've that the certainly been But heading terms numbers

Sheila McGrath

of to dividend kind certain decision, know then, Chris, policy. the just the thought comments And on payout the but Okay. broad-based Board can – or is I a you're ratio policy, – you dividend managing a us on it's that remind you are

Chris Benjamin

have converted of has the pretty distribution, beyond and broad delevering, process a been go XXX% to XXX% taxable to that. Yes. taxable REIT much to been REIT has been we sticking Thanks, Sheila. policy, that We've been in But of not E&P income. much The the distribute REIT we've income. since pretty of same big to which we chosen had while

no – exactly monitor be dividend we can year but goal. has going there's earnings where taken use January our to we to a the that's we do so approach And performance make have to be so closely, that been before final that, December obviously flexibility our also for approval. been to of declaration So the we're the payment and assured of knowing the

So declare I last in release, referenced years. dividend of believe payment to we've in the a expect as would few we our as was Board in in January, done for the December couple

Sheila McGrath

Okay. Thank you.

Chris Benjamin

Thank you.

Operator

our remarks. to Swett would gentlemen, you. Thank to back for I session. concludes the Ladies Steve like any turn and over question-and-answer conference closing this

Steve Swett

Chad. you, for everybody, Thank thanks, us And today. joining

us call email free questions, have or day. at feel If please a great you follow-up to XXX-XXX-XXXX Aloha, have at investorrelations@abhi.com. any us and

Operator

The conference Thank now presentation. concluded. attending for has today's you

You may now disconnect.

Alexander & Baldwin (ALEX) 6 Nov 212021 Q3 Earnings call transcript