In November 2010, Ackman gave a presentation on why the housing sector was destined for an upswing. As of yet he does not own any home builder stock.
In the first quarter, Ackman increased his position in Alexander & Baldwin Inc. (ALEX) 3,389,942 shares; he now owns 3,561,943 shares. The company owns over 87,000 acres of land in the Hawaiian islands. A subsidiary of the company, A&B Properties, develops the company’s raw lands and re-invests proceeds into new properties – primarily commercial – creating value for shareholders.
In the first quarter of 2011, Alexander & Baldwin reported net income of $5.2 million, declined from $17.3 million in the first quarter of 2010. The company’s first quarter earnings beat the outlook the company issued on March 18 mainly due to property sales, it said in a statement. “Performance from our real estate and agribusiness segments was, however, better than anticipated, helping us achieve overall profitability for the quarter,” A&B’s CEO Stanley Kuriyama said.
Ackman at one point had plans to found a real estate investment trust out of the land Target (TGT) owned around its stores. The board rejected his plan in 2009, and in the first quarter of 2011 he sold out of his position.