Q2 2025 Alexander & Baldwin Inc (Hawaii) Earnings Call Transcript
Key Points
- Alexander & Baldwin Inc (ALEX) achieved a same-store NOI growth of 5.3% for the quarter, driven by a 140 basis points improvement in same-store economic occupancy.
- The company continued construction at its build-to-suit on Maui, with an anticipated completion date in the first quarter of 2026, expecting an annual NOI uplift of $1 million.
- Alexander & Baldwin Inc (ALEX) executed 52 leases in its improved property portfolio, representing approximately 184,000 square feet of GLA and $6.1 million of ABR.
- The company's leased occupancy was 95.8%, up 40 basis points sequentially and 190 basis points compared to the second quarter of last year.
- The company reported Q2 CRE and corporate-related FFO per share of $0.29, a 3.6% increase from the same quarter last year.
- The comparable leasing spread of 6.8% was lower than in previous quarters, attributed to the absence of major outliers driving the spread.
- The company expects a lower same-store NOI growth rate in the third quarter due to strong Q3 results in 2024.
- The $20 million tenant improvement for Sam's Club is considered non-recurring for AFFO purposes, which may not align with typical industry practices.
- Japanese and Canadian tourist numbers have declined, although this has been offset by increased US West Coast visitors.
- The company is operating below its target leverage range of 5 to 6 times net debt-to-adjusted EBITDA, currently at 3.3 times, which may limit aggressive debt reduction strategies.
Good afternoon, ladies and gentlemen. Welcome to the Alexander & Baldwin's second-quarter earnings call.
(Operator Instructions) This call is being recorded on Thursday, July 24, 2025.
I would now like to turn the conference over to [Shane Mensch]. Thank you. Please go ahead.
Thank you, operator. Aloha. Welcome to Alexander & Baldwin's second-quarter 2025 earnings conference call. My name is Shane Mensch. I'm a Leasing Manager at Alexander & Baldwin.
With me today are A&B's Chief Executive Officer, Lance Parker; and Chief Financial Officer, Clayton Chun. We are also joined by Kit Millan, Senior Vice President of Asset Management, who is available to participate in the Q&A portion of the call.
During our call, please refer to our second-quarter 2025 financial presentation, available on our website at investors.alexanderbaldwin.com/events.
Before we commence, please note that the statements in this presentation are not historical facts, and are forward-looking
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