ALEX - Earnings call 3 2023 | Alexander & Baldwin, Inc.

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Operator

Welcome to the Alexander & Baldwin third Quarter 2023 Earnings Conference Call. [ Operator Instructions ]. Please note, this event is being recorded. I would now like to turn the conference over to Steve Swett, Investor Relations. Please go ahead...

Steve Swett

welcome Quarter call XXXX and & discuss Aloha, Third Baldwin's Earnings. you, to to our Alexander Thank With me Financial today Chief Executive for our earnings Lance and call Parker; our Chief Officer, Chun. Officer, Clayton are AMB's joined who available of Management, the also of Q&A in was by Vice to Senior They're President Millan, Asset call. the participate portion Kit

our please refer supplemental our on available investors.alexanderbaldwin.com/supplementals. call, to XXXX During website information our third at quarter

forward-looking please commence, Act not that statements within statements. call the this of are from are involve of a Reform note in historical number and that Private facts forward-looking actual cause those of differ Before could results statements that Litigation materially meaning by the contemplated risks relevant we Securities that to uncertainties XXXX the

are as to, or limited the statements the These and statements operations, strategies, but only forward-looking future statements assumed made of positions. are growth include, speak to possible competitive statements business not performance. opportunities of guarantees results and future date were forward-looking regarding Such not

Forward-looking or statements. with XX-Q the discussed filings operations, to but to market differ and actual and cause and Form in by company's to limited of financial factors related most and liquidity number the timing recent of as and other SEC. the subject by Materials the other and conditions as expressed status Form evaluation & conditions results the a risks, include, factors well factors REIT alternatives company to, company's could assumptions and business, Construction other its the those in certain of from the other XX-K, uncertainties, events company's business that materially the of These to factors implied forward-looking results prevailing are not statements related

Please company's Lance during reconciliations risk with this financial in these should referring third statements. included evaluated upon in measures these call our estate for to an the presentation today's to to Lance regarding non-GAAP today. not will up of supplement. measures to then will remarks, of any some for that, discuss obligation light update the important will questions. it overview our our With We quarter the information and refer XXXX and closing statement do financial undertake and update turn call use forward-looking will be return factors. Management we the over will of up provide on The in Clayton real matters. be presentation operations Lance. let me quarter open and call an open your non-GAAP where

and Steve, aloha, everyone. Thanks,

real again compared X.X% CRE same-store of and commercial and retail, Our half up in momentum lease to driven from our rents first by year, XXXX. last portfolio higher estate high-quality brown results base the primarily assets revenue was X.X%. was the Quarterly industrial quarter, of generated NOI third strong continuing up

While the continues Maui Hawaii Much the its wildfires the continues to open. economic economy of of be resilience, Maui in is demonstrate impact human to felt. and

in remain has tourism, wake on of the other In wildfire, Maui decrease seen an of those island, impacted has the certain while closed. fire islands areas the by However, the increased. expected directly particularly activity the

X.X% economy the counts visitor the spillover lower fact was state's numbers end were the to supported Most reports of year. compared by in state-wide rate year total Although a to earlier. September the compared still estimate are September than up XXXX, X.X% to year-to-date last broader unemployment is Hawaii. at XXXX limited This in

supports tourist our said community-based overall have we but dependent less economy. tourism state's before, the activity, As and is generally portfolio on

XX higher retail months occupancy metrics. CRE lower leased our portfolio to Turning at was points points basis leased occupancy XX XX earlier. quarter at Same-store end leasing basis XX.X%, was Same-store than XX%.

XX.X%. XXX industrial was of the at third XXXX lower leased than quarter basis points same-store occupancy In

XXXX of purposes, XX points XX attributable basis comparative economic to was the lease months was down industrial quarter. million. to months quarter For same-store XX.X%, the quarter economic and down occupancy base up million at basis was was XXX $X.X XXXX. rent This basis points occupancy Same-store to quarter industrial Annualized points points XX $X.X at economic same-store in XX.X%. S&O second end and end XX.X% Same-store quarter higher compares earlier million basis than XX occupancy to $X.X was leases from third of XX last earlier. occupancy retail

approximately our improved During XX.X%. third square spreads XX executed achieved we the for XXX,XXX and feet property quarter, in of leases portfolio blended

XX.X%. and industrial totaling related X Park for approximately feet GLA $XXX,XXX spreads included in Marketplace leases square ABR leases and This approximately of located ABR. of X.X% Kailua, properties With at XX leases including Queens feet for square at $XXX,XXX XX,XXX of XX,XXX of and to totaling activity leases Aikahi Center, retail spreads and GLA Shopping of

pipeline pleased and activity continued We are with active of the of leasing pace deals.

completed Our with grocery-anchored refresh quarter, items area in substantially at the list center final punch Marketplace, Manoa third the Manoa in only remaining. was neighborhood the only

that And bid-ask interest With rates, the over to call details. we when growth activity, turn options Clayton. now remain evaluating transaction I'll identify and we long-term as in disciplined drive financial opportunities deployment flow cash limiting capital higher spreads Clayton and for value.

Clayton Chun

of supplement. Thanks, Lance, on everyone. our Starting consolidated X and aloha, with metrics our Table

of to net or FFO per was or Core $XX.X per was For diluted income or million years collections XXXX metrics million XXXX, third $X.XX $X.XX million shareholders reserved from $X.XX previous share. $XX.X amounts diluted for third in of per benefited diluted the was $XXX,XXX share. per quarter diluted approximately $XX.X of share. share. FFO quarter of of $X.XX or the these Each available

third For of per diluted comparative previous $X.XX of in or $XXX,XXX quarter share. years amounts reserved was in XXXX, collections the purposes,

amounts decrease future amounts to to normalized in We previously collections expect quarters. of reserved

in our and on see results please details in package. release XXXX, earnings additional to prior For comparison supplemental information periods our

Table to commercial our turn now estate real on me Let results X.

operating year. last quarter NOI profit the as same-store was to quarter rent the ago $X.X $XX.X to year to or year last driven over million to period increased $XX.X base or X.X% $XX.X prior from to CRE million. by compared X.X% CRE $XXX,XXX quarter, revenues CRE increase This higher increased primarily million third same For a increased the million $X.X or million. X.X% compared this year. year

mentioned, expect As and impact previous years the in quarters. I previously collections in in quarter, minimal growth the we reserved had the to a third same-store to of normalize of collection in amounts years NOI amounts prior reserved coming

COVID. our the a we same-store in growth the recovery from outsized experienced expect As of result, to normalize NOI period post economic increases

$X.X to quarter the Turning quarter property of of quarter XXXX. in last sales year. highlighted no operations were unimproved XX. the the in in Table in to was EBITDA primarily due a the million Table of third third Adjusted year. sales third on X. last compared to There $X.X presented land million was is increased same negative change The the XXXX on G&A such quarter

The $X.X For compared third personnel-related XXXX. the XXXX, third in quarter $X.X were quarter of to million reduction due of the lower primarily million G&A to was G&A expenses expenses.

We reported the the in complete discontinued related income Grace remains operations Pacific. of from sale the quarter, as Grace million third in of operations $X.X to we entity. discontinued primarily work to

on time. details continue cannot this but this make we goal, We provide at additional to progress

liquidity outstanding is in we continued interest to XX% total million on Approximately credit our At as made of fixed. environment, Turning debt was increase and rate $XXX.X total our up well to proactive fixed taking And given of the high percentage ] rate our revolving as [ are of lateral debt facility. steps metrics end, maturities. approximately X. we $XXX.X balance liquidity had million available Table sheet $XXX.X million in of debt $XX.X our million, and and cash quarter

adjusted debt XXXX. EBITDA, Net EBITDA X.Xx consolidated X.Xx. to to in trailing at land months excluding operations, was of to debt X.Xx XX-month of the quarter Net end XX quarter adjusted third consolidated the was the trailing compared

we at price an approximately share. per stock of XX,XXX During shares average of repurchased the $XX.XX quarter,

to As we quarter we our time. in before, may normal allocation we October December. declare have with to use which plan our fourth $X.XX dividend dividend X. practice, dividend, share additional our expect from share paid repurchase a Board of With a provides our quarter respect tool, we Consistent on said third an per to capital time

are raising for and again year. results our guidance with pleased the are We

for FFO expect $X.XX We diluted in to of due core $X.XX costs. better-than-expected to transition-related the per G&A range share

of We X.XX% year X.XX%. X.XX%, turn a a of to the reserve closing and within reversals expect range range excluding call remarks. growth, same-store I'll NOI that, same-store NOI his prior With growth X.XX% and for over within Lance to

Lance Parker

Clayton. Thanks,

demonstrated lease again, ground quarter, of quality outstanding third strength assets. of and the team the The and retail, industrial our our

take the town we Before assets thankful more physically moment None years took in our than and remarks, acknowledge damaged Maui, where safe. devastating our the that of conclude are would wildfire, physically our in company to wildfire employees were Lahaina our of from the like I the island are root ago. prepared we to XXX a

The our people to with hearts belief now our the Hawaii's of and to other close that, home. deep my selfless With we call to lives, we'll commitment and immediate call hit islands reinforce and to that share response continued of that does up tragedy to family. to open livelihoods community Maui members homes continues a questions. the each the However, losses include extended the

Operator

begin session. ]. Instructions We question-and-answer will the now Operator [

question is Sandler. The first Connor from Piper Mitchell of

Connor Mitchell

a about thinking big So picture.

to that the fits residents original Or the see in has of from movement? During bit you stream maybe lot mainland a it constant a the pandemic, there's islands. moving slowed were Do pickup a the the of this? guys

Lance Parker

either was a demographic during of a population will, of more basis in I more major transient permanent a time of I people on or other would we haven't But you COVID -- a period terms for really a from there were Lance. Connor, if it's slowed. say from that moving probably areas. it's inflow shift, basis. of mean lot seen on a

Connor Mitchell

I And previous you calls little on then discussions. and a on and a tourism it's know topic touched been Okay. bit,

some stores lifted more have seen to think maybe So restrictions, in any Japan or in restrictions, May, you come? uptick Japanese since travel I signs has back of

Lance Parker

that compare Japanese if frame, we Yes. to XX%. tourism, say about I still time would pre-pandemic down XXXX it

XXXX down still far really see tourism improvement from bright it's XXXX, So to up Asian compared look we about numbers, that to of if starting we're room the given September still at in is so they're September there's XXXX, significantly. of down just And still go. of the to side a X.Xx, big market. that But just how plenty

Connor Mitchell

Does CRE primarily on I that's the of the it the rent as quarter G&A. if then, And you, Maybe Clay, sounded to have healthy increase. And this forgive higher the guidance and well? me guys in touched the the spreads misheard base guidance? increase any was saw in you Okay. NOI lower like it due you impact but

Clayton Chun

overall. G&A into for It mention core year-to-date also also does. the flows But guess, the performance, FFO, that guidance NOI is same-store reflect and did guidance FFO. call, we Yes. through reflective Yes, in does that guidance updated I the Conor. as better-than-expected had of, The core the provided better-than-expected I increased

contemplating as so well the And both same-store G&A it's as effect. this

Connor Mitchell

Appreciate And maybe one that. me last then well. as for one Okay.

You bid-ask then you touched wider. -- Lance, the you touched stock the also being a about the guys And market, buyback. transaction talked bit on little

about tighter strategy with rates thinking the market, increasing going with you some higher allocation next capital and capital guys repurchase your think allocation then So a in rates the about do how year, maturing program. forward maybe debt and rising stock the transaction

Lance Parker

availability the say I certainly clearly, interest environment helped as and of opportunities rates that hurdle Yes. rate high would has well. not

And damper bit of across a is of for put transactions. so really that's a allocation But external terms the really us, board. in sort capital little

that think the yields where are can we cost lean internal of environment, control to I we're timing our so opportunities continue given toward current going accretive and get also to to higher capital. And

whether So the to for be our repositioning the another like our assets opportunity extent us photovoltaic is Marketplace, or within that stock portfolio whether that in continued market, Manoa invest... will underappreciated it's to of it's

Operator

would I to for over back conference the like session. remarks. question-and-answer our concludes Swett closing to turn Steve This

Steve Swett

Thank you, for Kate, and thank today. joining us you all

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

Operator

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

may You now disconnect.

Alexander & Baldwin (ALEX) 2 Nov 232023 Q3 Earnings call transcript