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1. Company Snapshot

1.a. Company Description


These core assets comprise nearly 72% of A&B's total assets.A&B's non-core assets include renewable energy generation facilities, approximately 27,000 acres of agricultural and conservation land and a vertically integrated paving business.A&B is achieving its strategic objective of becoming a Hawai'i-focused commercial real estate company by expanding and strengthening its Hawai'i CRE portfolio and monetizing non-core assets.


Over its 150-year history, A&B has evolved with the state's economy and played a leadership role in the development of the agricultural, transportation, tourism, construction, residential and commercial real estate industries.">

Alexander & Baldwin, Inc.("A&B") is Hawai'i's premier commercial real estate company and the largest owner of grocery-anchored, neighborhood shopping centers in the state.A&B owns, operates and manages approximately 3.9 million square feet of commercial space in Hawai'i, including 22 retail centers, ten industrial assets and four office properties, as well as 154 acres of ground leases.


These core assets comprise nearly 72% of A&B's total assets.A&B's non-core assets include renewable energy generation facilities, approximately 27,000 acres of agricultural and conservation land and a vertically integrated paving business.A&B is achieving its strategic objective of becoming a Hawai'i-focused commercial real estate company by expanding and strengthening its Hawai'i CRE portfolio and monetizing non-core assets.


Over its 150-year history, A&B has evolved with the state's economy and played a leadership role in the development of the agricultural, transportation, tourism, construction, residential and commercial real estate industries.

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1.b. Last Insights on ALEX

Alexander & Baldwin's recent performance was negatively driven by a 7.9% decline over four weeks, but the company is now technically in oversold territory, indicating a potential trend reversal. Strong agreement among Wall Street analysts in revising earnings estimates higher supports this notion. Additionally, the company's Q4 2024 earnings beat expectations, with FFO of $0.30 per share and CRE operating profit of $22.0 million, driven by solid growth in its commercial real estate segment."

1.c. Company Highlights

2. Alexander & Baldwin's Q3 2025 Earnings: A Strong Performance

The company reported a net income of $32.8 million, a 1.2% increase year-over-year, with same-store NOI growing by 0.6% to $31.9 million. Earnings per share (EPS) came in at $0.20, slightly below estimates of $0.28. The company's CRE portfolio performed in line with expectations, with leased occupancy at 95.6%, a 160 basis point increase from the same quarter last year. Clayton Chun, CFO, noted that same-store NOI growth was impacted by bad debt and one-time items, but these have largely been backfilled.

Publication Date: Nov -19

📋 Highlights
  • FFO Guidance Raised:: Full-year CRE and Corporate FFO guidance increased to $1.13–$1.17/share, up from prior expectations.
  • CRE Portfolio Performance:: Same-store NOI grew 0.6% YoY, with 49 leases executed (164k sq ft, $3.3M ABR) and blended leasing spreads up 4.4%.
  • Development Momentum:: Two new buildings at Komohana Industrial Park expected to generate $2.8M annual NOI by Q4 2026.
  • Financial Growth:: Q3 NOI reached $32.8M (+1.2% YoY), with same-store NOI at $31.9M (+60 bps YoY).
  • Capital Recycling Plan:: $24.1M proceeds from Kaka’ako Commerce Center sale to be reinvested via 1031 exchange.

CRE Portfolio Highlights

The CRE portfolio saw significant activity in Q3, with 49 leases executed, representing approximately 164,000 square feet of GLA and $3.3 million of ABR. The blended leasing spreads increased 4.4% on a comparable basis. The company also made progress on internal growth, with the groundbreaking of two new buildings at Komohana Industrial Park, expected to generate $2.8 million in annual NOI upon completion in Q4 2026.

Guidance and Outlook

The company raised its FFO guidance for 2025, with total FFO now expected to be between $1.36 and $1.41 per share. For 2026, the company expects a run rate for Land Operations of $3.75 million to $4.5 million, resulting in a modest loss in the absence of land sales. Analysts estimate next year's revenue growth at 1.6%.

Valuation and Return Metrics

With a P/E Ratio of 15.61 and an EV/EBITDA of 9.06, the company's valuation appears reasonable. The Dividend Yield stands at 5.72%, indicating an attractive return for income investors. ROE is at 7.27%, and ROIC is high at 63.28%, suggesting efficient capital allocation.

Acquisition Prospects and Capital Allocation

Lance Parker, CEO, expressed optimism about acquisition prospects, citing the company's competitive edge due to local knowledge. The company is exploring opportunities in the market, with a focus on portfolios being marketed. Clayton Chun noted that share buybacks are considered as one of the capital allocation tools, alongside acquisitions and internal development opportunities.

3. NewsRoom

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Connor Clark & Lunn Investment Management Ltd. Purchases 9,673 Shares of Alexander & Baldwin Holdings, Inc. $ALEX

Nov -17

Source: defenseworld.net

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Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

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Alexander & Baldwin Amends Credit Facility, Adds $200 Million Term Loan to Support Strategic Growth

Nov -06

Source: prnewswire.com

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Alpha Announces New Drilling Results from Ongoing 2025 Exploration Program at the Aburna Gold Project

Nov -05

Source: feeds.newsfilecorp.com

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Alexander & Baldwin, Inc. (ALEX) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Alexander & Baldwin Holdings (ALEX) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -31

Source: zacks.com

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Alexander & Baldwin Holdings, Inc. (ALEX) Q3 FFO Beat Estimates

Oct -30

Source: zacks.com

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Alexander & Baldwin, Inc. Reports Third Quarter 2025 Results

Oct -30

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Commercial Real Estate

Expected Growth: 4.83%

Alexander & Baldwin's 4.83% commercial real estate growth is driven by Hawaii's strong tourism industry, increasing demand for industrial and logistics spaces, and a growing e-commerce sector. Additionally, the company's strategic redevelopment of underutilized properties and focus on high-quality, amenity-rich spaces contribute to its growth.

Land Operations

Expected Growth: 4.82%

Alexander & Baldwin's Land Operations segment growth of 4.82% is driven by increasing demand for commercial and industrial properties in Hawaii, strategic land acquisitions, and a strong pipeline of development projects. Additionally, the company's focus on diversifying its portfolio and expanding its commercial leasing business also contributes to the growth.

7. Detailed Products

Commercial Real Estate

Alexander & Baldwin, Inc. owns and operates a diverse portfolio of commercial properties, including office buildings, retail centers, and industrial facilities.

Land Development

The company develops and sells residential and commercial land, as well as master-planned communities, to builders, developers, and individuals.

Agriculture

Alexander & Baldwin, Inc. is one of Hawaii's largest farmers, growing and harvesting a variety of crops, including coffee, macadamia nuts, and papayas.

Materials and Construction

The company operates a construction materials business, providing asphalt, concrete, and other building materials to contractors and builders.

Investment Properties

Alexander & Baldwin, Inc. invests in and manages a portfolio of income-generating properties, including office buildings, shopping centers, and apartments.

8. Alexander & Baldwin, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Alexander & Baldwin, Inc. is medium due to the availability of alternative land uses and the potential for new entrants to offer similar services.

Bargaining Power Of Customers

The bargaining power of customers for Alexander & Baldwin, Inc. is low due to the company's diversified portfolio of properties and the lack of concentration among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Alexander & Baldwin, Inc. is medium due to the company's reliance on a few key suppliers for materials and services.

Threat Of New Entrants

The threat of new entrants for Alexander & Baldwin, Inc. is high due to the relatively low barriers to entry in the real estate industry and the potential for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Alexander & Baldwin, Inc. is high due to the competitive nature of the real estate industry and the presence of several established players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.64%
Debt Cost 5.98%
Equity Weight 68.36%
Equity Cost 10.11%
WACC 8.80%
Leverage 46.29%

11. Quality Control: Alexander & Baldwin, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Modiv

A-Score: 7.1/10

Value: 6.6

Growth: 7.8

Quality: 4.7

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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BrightSpire Capital

A-Score: 6.3/10

Value: 6.8

Growth: 4.6

Quality: 3.9

Yield: 10.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Alexander & Baldwin

A-Score: 6.2/10

Value: 4.3

Growth: 3.7

Quality: 6.3

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Armada Hoffler Properties

A-Score: 6.0/10

Value: 6.5

Growth: 5.7

Quality: 4.7

Yield: 10.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Empire State Realty Trust

A-Score: 4.2/10

Value: 5.7

Growth: 4.4

Quality: 4.4

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Presidio Property Trust

A-Score: 2.8/10

Value: 5.6

Growth: 0.8

Quality: 2.6

Yield: 5.0

Momentum: 3.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.22$

Current Price

15.22$

Potential

-0.00%

Expected Cash-Flows