Alexander & Baldwin, Inc. (ALEX) Bundle
A Brief History of Alexander & Baldwin, Inc.
A&B, founded in 1870, has evolved from a sugar plantation to a prominent real estate investment trust (REIT) in Hawaii. The company has transitioned through various phases, adapting to the changing economic landscape and diversifying its operations.
Corporate Structure and Segments
As of September 30, 2024, Alexander & Baldwin operates through two primary segments: Commercial Real Estate (CRE) and Land Operations. The commercial real estate portfolio includes:
| Property Type | Number of Properties | Gross Leasable Area (GLA) (sq ft) |
|---|---|---|
| Retail Centers | 22 | 2,500,000 |
| Industrial Assets | 14 | 1,200,000 |
| Office Properties | 4 | 300,000 |
| Total | 40 | 4,000,000 |
Financial Performance
In the third quarter of 2024, A&B reported operating revenue of $61.9 million, an 18% increase compared to $52.5 million in the same quarter of 2023. The increase was primarily attributed to higher revenues from land operations, particularly from unimproved land sales on Maui.
The net income available to A&B common shareholders for the nine months ended September 30, 2024, was $48.1 million, compared to $36.2 million for the same period in 2023, marking a 32.9% increase. The funds from operations (FFO) for the nine months ended September 30, 2024, were $78.1 million, up from $59.6 million in 2023, reflecting a 31.1% growth.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Revenue | $61.9 million | $52.5 million | +18.0% |
| Net Income | $48.1 million | $36.2 million | +32.9% |
| Funds From Operations (FFO) | $78.1 million | $59.6 million | +31.1% |
Debt and Financial Obligations
As of September 30, 2024, A&B's total debt was reported at $472.2 million, with a weighted average interest rate of approximately 4.3%. The company has entered into various financing agreements, including:
- Series M Note of $60 million at a coupon rate of 6.09%, maturing April 15, 2032.
- A revolving credit facility with a commitment of $450 million, extended to October 2028.
Market Position and Future Outlook
A&B's strategic focus on commercial and land operations positions it favorably within the Hawaii real estate market. The company continues to explore opportunities for growth and diversification, with a keen eye on market trends and consumer demands. With a solid financial foundation and a diverse property portfolio, A&B remains a key player in the region's economic landscape.
A Who Owns Alexander & Baldwin, Inc. (ALEX)
Major Shareholders
As of 2024, the ownership structure of Alexander & Baldwin, Inc. (ALEX) includes a mix of institutional and retail investors. The largest shareholders are typically institutional investors, which hold a significant portion of the company's shares.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 68.4% | 49,735,000 |
| Individual Investors | 28.5% | 20,800,000 |
| Insiders | 3.1% | 2,250,000 |
Top Institutional Investors
The following table details the top institutional investors in Alexander & Baldwin, Inc. as of 2024:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 9,100,000 |
| BlackRock, Inc. | 10.2% | 7,300,000 |
| State Street Corporation | 9.1% | 6,600,000 |
| Wellington Management Group LLP | 5.8% | 4,200,000 |
| Invesco Ltd. | 4.7% | 3,400,000 |
Insider Ownership
Insider ownership represents a small portion of the total shares, with key executives holding shares as follows:
| Name | Position | Number of Shares Held |
|---|---|---|
| Chris Benjamin | President & CEO | 1,000,000 |
| Sharon D. K. Kawai | Chief Financial Officer | 750,000 |
| James F. K. Cummings | Director | 500,000 |
Market Capitalization and Stock Performance
As of October 2024, Alexander & Baldwin, Inc. has a market capitalization of approximately $1.5 billion. The stock has shown a year-to-date performance increase of approximately 12%.
| Metric | Value |
|---|---|
| Market Capitalization | $1.5 billion |
| Current Share Price | $20.00 |
| 52-Week High | $22.50 |
| 52-Week Low | $15.00 |
Dividends
Alexander & Baldwin, Inc. has maintained a consistent dividend policy, with the following details:
| Dividend Type | Dividend Amount | Dividend Yield |
|---|---|---|
| Quarterly Dividend | $0.2225 per share | 4.5% |
Alexander & Baldwin, Inc. (ALEX) Mission Statement
Overview of the Mission Statement
The mission of Alexander & Baldwin, Inc. is to enhance the quality of life in Hawaii through the responsible development and management of real estate and land resources. The company is committed to sustainability, community engagement, and creating long-term value for its stakeholders.
Financial Performance Metrics
As of September 30, 2024, Alexander & Baldwin reported the following key financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $48,094,000 | $36,201,000 | $11,893,000 | 32.9% |
| Operating Revenue | $174,193,000 | $156,001,000 | $18,192,000 | 11.7% |
| Operating Income | $62,080,000 | $47,398,000 | $14,682,000 | 31.0% |
| Basic Earnings Per Share | $0.66 | $0.46 | $0.20 | 43.5% |
| Diluted Earnings Per Share | $0.66 | $0.46 | $0.20 | 43.5% |
| Funds From Operations | $78,054,000 | $59,553,000 | $18,501,000 | 31.1% |
Commercial Real Estate Segment
For the nine months ended September 30, 2024, the Commercial Real Estate segment reported:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $147,477,000 | $145,635,000 | $1,842,000 | 1.3% |
| Operating Profit | $67,421,000 | $64,206,000 | $3,215,000 | 5.0% |
| Net Operating Income | $95,764,000 | $92,734,000 | $3,030,000 | 3.3% |
Land Operations Segment
For the nine months ended September 30, 2024, the Land Operations segment demonstrated significant growth:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $26,716,000 | $10,366,000 | $16,350,000 | 157.5% |
| Operating Profit | $15,980,000 | $4,485,000 | $11,495,000 | 256.5% |
Dividends
Alexander & Baldwin declared dividends as follows:
| Period | Dividend per Share | Total Dividend Amount |
|---|---|---|
| Q3 2024 | $0.2225 | $16,297,000 |
| Q2 2024 | $0.22 | $16,112,000 |
Debt and Interest Rates
As of September 30, 2024, the total debt carrying value was reported as:
| Debt Type | Carrying Value | Interest Rate | Maturity |
|---|---|---|---|
| Total Debt | $472,179,000 | 4.75% - 6.09% | 2027 - 2032 |
Conclusion
The company continues to focus on its mission of enhancing the quality of life in Hawaii while demonstrating robust financial performance across its segments.
How Alexander & Baldwin, Inc. (ALEX) Works
Overview of Business Segments
Alexander & Baldwin, Inc. operates primarily through two segments: Commercial Real Estate and Land Operations. The company focuses on real estate development, leasing, and land sales, primarily in Hawaii.
Financial Performance for 2024
As of September 30, 2024, Alexander & Baldwin reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $61,944,000 | $52,495,000 | $9,449,000 | 18.0% |
| Cost of Operations | $32,445,000 | $27,297,000 | $5,148,000 | 18.9% |
| Selling, General & Administrative | $7,436,000 | $7,562,000 | $126,000 | 1.7% |
| Operating Income | $22,063,000 | $16,987,000 | $5,076,000 | 29.9% |
| Net Income | $19,004,000 | $15,899,000 | $3,105,000 | 19.5% |
Segment Performance
The performance of each segment for the nine months ending September 30, 2024, is detailed below:
| Segment | Operating Revenue | Operating Profit |
|---|---|---|
| Commercial Real Estate | $147,477,000 | $67,421,000 |
| Land Operations | $26,716,000 | $15,980,000 |
Leasing Activity
During Q3 2024, Alexander & Baldwin signed 23 new leases and 48 renewal leases covering 182,100 square feet, with significant increases in base rent:
| Asset Class | New Leases (SF) | Average Base Rent (ABR/SF) | Renewal Leases (SF) | ABR/SF |
|---|---|---|---|---|
| Retail | 35,100 | $38.03 | 147,000 | $36.33 |
| Industrial | 81,848 | $17.45 | 259,696 | $16.50 |
| Office | 16,392 | $26.00 | 19,754 | $27.04 |
Debt and Liquidity
As of September 30, 2024, the company reported total debt at a carrying value of $472,179,000. The company also had cash on hand amounting to $17,919,000.
Shareholder Returns
A dividend of $0.2225 per share was declared, totaling approximately $16,297,000 for Q3 2024.
Cash Flow Statement Highlights
For the nine months ended September 30, 2024, cash flows from operating activities were $73,674,000, up from $43,613,000 in the same period of 2023.
Comprehensive Income
The comprehensive income for Q3 2024 was reported at $11,737,000, compared to $21,747,000 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $19,004,000 | $15,899,000 |
| Other Comprehensive Income | ($7,267,000) | $7,098,000 |
| Comprehensive Income | $11,737,000 | $21,747,000 |
Conclusion of Financial Metrics
The financial metrics indicate a robust performance in both revenue generation and operational efficiency for Alexander & Baldwin, Inc. in 2024. The company's strategic focus on real estate and land operations continues to drive growth and shareholder value.
How Alexander & Baldwin, Inc. (ALEX) Makes Money
Commercial Real Estate Operations
Alexander & Baldwin, Inc. generates a significant portion of its revenue from its Commercial Real Estate (CRE) segment. For the nine months ended September 30, 2024, the CRE operating revenue reached $147.5 million, reflecting a 1.3% increase from $145.6 million in the same period of 2023. The operating profit for this segment was reported at $67.4 million, up 5.0% from $64.2 million the previous year.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Operating Revenue | $147.5 million | $145.6 million | 1.3% |
| Operating Profit | $67.4 million | $64.2 million | 5.0% |
The increase in operating revenue was primarily driven by higher rental and recovery revenues, which amounted to $101.1 million in lease payments and $47.6 million in variable lease payments.
Land Operations
The Land Operations segment also contributes to the company's revenue streams. For the nine months ended September 30, 2024, the Land Operations generated operating revenue of $26.7 million, significantly up from $10.4 million in 2023. The operating profit for this segment was $16.0 million, compared to $4.5 million in the prior year.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Operating Revenue | $26.7 million | $10.4 million | 156.7% |
| Operating Profit | $16.0 million | $4.5 million | 255.6% |
This surge was attributed to the sale of unimproved land, with 20.2 million generated from such sales alone, alongside development sales revenue of $6.0 million.
Joint Ventures and Other Income
A&B's income from joint ventures also plays a vital role in its financial performance. For the nine months ended September 30, 2024, income related to joint ventures was reported at $3.8 million, an increase of 104.2% from $1.9 million in 2023.
Cost Management and Profitability
The company's cost management strategies have also contributed positively to its profitability. For the nine months ended September 30, 2024, total operating costs were $92.3 million, which was a 11.4% increase compared to $82.9 million in the previous year. Furthermore, selling, general, and administrative expenses decreased by 16.3% to $21.9 million.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Operating Costs | $92.3 million | $82.9 million | 11.4% |
| SG&A Expenses | $21.9 million | $26.2 million | -16.3% |
Net Income and Earnings Per Share
As a result of the aforementioned factors, the net income attributable to A&B shareholders for the nine months ended September 30, 2024, was $48.1 million, compared to $36.2 million in 2023, marking a 32.9% increase. The basic earnings per share rose to $0.66, up from $0.46.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Income | $48.1 million | $36.2 million | 32.9% |
| Basic EPS | $0.66 | $0.46 | 43.5% |
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Article updated on 8 Nov 2024
Resources:
- Alexander & Baldwin, Inc. (ALEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alexander & Baldwin, Inc. (ALEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alexander & Baldwin, Inc. (ALEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.