- Alexander & Baldwin (ALEX, Financial) reports robust Q1 2025 results with a net income of $21.4 million, up 7.3% from the previous year.
- Commercial Real Estate (CRE) operating profit hits $23.4 million with a Same-Store Net Operating Income growth of 4.2%.
- Total leased occupancy reaches an impressive 95.4%, with favorable leasing spreads of 10.2%.
Alexander & Baldwin, Inc. (ALEX), a prominent player in the commercial real estate sector in Hawai'i, announced strong financial outcomes for the first quarter of 2025. The company's net income surged to $21.4 million, translating to $0.29 per diluted share, marking a 7.3% increase from $19.97 million in Q1 2024. The Commercial Real Estate (CRE) segment alone generated an operating profit of $23.4 million, underpinned by a Same-Store Net Operating Income growth of 4.2%.
The company's portfolio exhibited resilience, with total leased occupancy levels reaching 95.4% as of the end of March 2025. Remarkably, retail occupancy stood at 95.2%, while industrial occupancy was even higher at 97.3%. This growth was primarily driven by strong leasing demand, evidenced by comparable leasing spreads of 10.2% across A&B’s portfolio. Specifically, retail spaces experienced an 11.1% increase, and industrial spaces rose by 9.5%.
A strategic highlight for A&B this quarter was the execution of a 75-year ground lease at Maui Business Park, which successfully converted five acres of non-income producing land into an asset generating approximately $0.7 million in annual base rent. This transaction is anticipated to enhance Funds From Operations (FFO) by $0.01 per share in 2025.
Adding to this, A&B maintained solid liquidity of $323.9 million and a strong balance sheet, with a Net Debt to Trailing Twelve Months Consolidated Adjusted EBITDA ratio of 3.6x. Reflecting management’s confidence in future performance, the company revised its 2025 guidance upward, now projecting net income per diluted share at $0.68-$0.74 and FFO per share at $1.17-$1.23. A&B also declared a consistent second-quarter dividend of $0.2250 per share, sustaining shareholder returns.
