(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
99.1 | |||||
99.2 |
Contact: | ||
Brett A. Brown | ||
(808) 525-8475 | ||
investorrelations@abhi.com |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Operating Revenue: | ||||||||||||||
Commercial Real Estate | $ | 39.9 | $ | 43.4 | ||||||||||
Land Operations1 | 17.1 | 11.0 | ||||||||||||
Materials & Construction1 | 24.0 | 26.4 | ||||||||||||
Total operating revenue | 81.0 | 80.8 | ||||||||||||
Operating Profit (Loss): | ||||||||||||||
Commercial Real Estate | 15.4 | 18.1 | ||||||||||||
Land Operations1 | 11.4 | 4.5 | ||||||||||||
Materials & Construction1 | (4.0) | (3.3) | ||||||||||||
Total operating profit (loss) | 22.8 | 19.3 | ||||||||||||
Gain (loss) on disposal of commercial real estate properties, net | 0.2 | 0.5 | ||||||||||||
Interest expense | (7.0) | (7.8) | ||||||||||||
Corporate and other expense | (6.0) | (6.2) | ||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 10.0 | 5.8 | ||||||||||||
Income tax benefit (expense) | (0.1) | — | ||||||||||||
Income (Loss) from Continuing Operations | 9.9 | 5.8 | ||||||||||||
Income (loss) from discontinued operations | — | (0.2) | ||||||||||||
Net Income (Loss) | 9.9 | 5.6 | ||||||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | ||||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Weighted-Average Number of Shares Outstanding: | ||||||||||||||
Basic | 72.5 | 72.3 | ||||||||||||
Diluted | 72.6 | 72.5 | ||||||||||||
Amounts Available to A&B Common Shareholders: | ||||||||||||||
Continuing operations available to A&B common shareholders | $ | 9.9 | $ | 6.4 | ||||||||||
Discontinued operations available to A&B common shareholders | — | (0.2) | ||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
1 As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. |
March 31, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments | ||||||||||||||
Real estate property | $ | 1,557.2 | $ | 1,549.7 | ||||||||||
Accumulated depreciation | (161.0) | (154.4) | ||||||||||||
Real estate property, net | 1,396.2 | 1,395.3 | ||||||||||||
Real estate developments | 73.6 | 75.7 | ||||||||||||
Investments in real estate joint ventures and partnerships | 124.0 | 134.1 | ||||||||||||
Real estate intangible assets, net | 59.1 | 61.9 | ||||||||||||
Real estate investments, net | 1,652.9 | 1,667.0 | ||||||||||||
Cash and cash equivalents | 32.0 | 57.2 | ||||||||||||
Restricted cash | 0.2 | 0.2 | ||||||||||||
Accounts receivable and retention, net | 33.2 | 43.5 | ||||||||||||
Inventories | 27.2 | 18.4 | ||||||||||||
Other property, net | 108.7 | 110.8 | ||||||||||||
Operating lease right-of-use assets | 18.2 | 18.6 | ||||||||||||
Goodwill | 10.5 | 10.5 | ||||||||||||
Other receivables | 13.9 | 14.2 | ||||||||||||
Prepaid expenses and other assets | 95.1 | 95.6 | ||||||||||||
Total assets | $ | 1,991.9 | $ | 2,036.0 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt | $ | 654.6 | $ | 687.1 | ||||||||||
Accounts payable | 13.2 | 9.8 | ||||||||||||
Operating lease liabilities | 18.5 | 18.4 | ||||||||||||
Accrued pension and post-retirement benefits | 34.9 | 34.7 | ||||||||||||
Deferred revenue | 68.7 | 66.9 | ||||||||||||
Accrued and other liabilities | 95.7 | 116.5 | ||||||||||||
Redeemable Noncontrolling Interest | 6.5 | 6.5 | ||||||||||||
Equity | 1,099.8 | 1,096.1 | ||||||||||||
Total liabilities and equity | $ | 1,991.9 | $ | 2,036.0 | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net income (loss) | $ | 9.9 | $ | 5.6 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||||||||||||||
Depreciation and amortization | 12.6 | 13.6 | ||||||||||||
Loss (gain) from disposals and asset transactions, net | (0.3) | (0.5) | ||||||||||||
Share-based compensation expense | 1.4 | 1.5 | ||||||||||||
Equity in (income) loss from affiliates, net of operating cash distributions | (2.1) | (2.9) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade, contracts retention, and other contract receivables | 5.4 | 7.0 | ||||||||||||
Inventories | (8.8) | — | ||||||||||||
Prepaid expenses, income tax receivable and other assets | (1.0) | 2.4 | ||||||||||||
Development/other property inventory | 2.2 | (3.2) | ||||||||||||
Accrued pension and post-retirement benefits | 0.9 | 0.6 | ||||||||||||
Accounts payable | 0.8 | (3.5) | ||||||||||||
Accrued and other liabilities | (0.4) | (1.7) | ||||||||||||
Net cash provided by (used in) operations | 20.6 | 18.9 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures for property, plant and equipment | (5.2) | (6.2) | ||||||||||||
Proceeds from disposal of assets | 0.5 | 5.9 | ||||||||||||
Payments for purchases of investments in affiliates and other investments | (0.6) | — | ||||||||||||
Distributions of capital from investments in affiliates and other investments | 15.7 | 3.2 | ||||||||||||
Net cash provided by (used in) investing activities | 10.4 | 2.9 | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Proceeds from issuance of notes payable and other debt | — | 108.0 | ||||||||||||
Payments of notes payable and other debt and deferred financing costs | (37.7) | (44.2) | ||||||||||||
Borrowings (payments) on line-of-credit agreement, net | 4.0 | 51.4 | ||||||||||||
Cash dividends paid | (21.8) | (13.8) | ||||||||||||
Proceeds from issuance (repurchase) of capital stock and other, net | (0.7) | (0.9) | ||||||||||||
Net cash provided by (used in) financing activities | (56.2) | 100.5 | ||||||||||||
Cash, Cash Equivalents and Restricted Cash | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (25.2) | 122.3 | ||||||||||||
Balance, beginning of period | 57.4 | 15.4 | ||||||||||||
Balance, end of period | $ | 32.2 | $ | 137.7 |
Three Months Ended March 31, | ||||||||||||||||||||
(amounts in millions; unaudited) | 2021 | 2020 | Change1 | |||||||||||||||||
Commercial Real Estate Operating Profit (Loss) | $ | 15.4 | $ | 18.1 | $ | (2.7) | ||||||||||||||
Plus: Depreciation and amortization | 9.5 | 10.2 | (0.7) | |||||||||||||||||
Less: Straight-line lease adjustments | (0.8) | (0.8) | — | |||||||||||||||||
Less: Favorable/(unfavorable) lease amortization | (0.2) | (0.3) | 0.1 | |||||||||||||||||
Plus: Other (income)/expense, net | (0.1) | (0.4) | 0.3 | |||||||||||||||||
Plus: Selling, general, administrative and other expenses | 1.5 | 2.1 | (0.6) | |||||||||||||||||
NOI | 25.3 | 28.9 | (3.6) | |||||||||||||||||
Less: NOI from acquisitions, dispositions, and other adjustments | (0.6) | (0.6) | — | |||||||||||||||||
Same-Store NOI | $ | 24.7 | $ | 28.3 | $ | (3.6) | ||||||||||||||
1 Amounts in this table are rounded to the nearest tenth of a million, but percentages were calculated based on thousands. Accordingly, a recalculation of some percentages, if based on the reported data, may be slightly different. |
Three Months Ended March 31, | ||||||||||||||
(amounts in millions; unaudited) | 2021 | 2020 | ||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||
Gain on the disposal of commercial real estate properties, net | (0.2) | (0.5) | ||||||||||||
FFO | $ | 19.2 | $ | 15.9 | ||||||||||
Exclude items not related to core business: | ||||||||||||||
Land Operations Operating Profit | (11.4) | (4.5) | ||||||||||||
Materials & Construction Operating (Profit) Loss | 4.0 | 3.3 | ||||||||||||
Loss from discontinued operations | — | 0.2 | ||||||||||||
Income (loss) attributable to noncontrolling interest | — | (0.6) | ||||||||||||
Income tax expense (benefit) | 0.1 | — | ||||||||||||
Non-core business interest expense | 3.5 | 4.0 | ||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 |
Three Months Ended March 31, | ||||||||||||||
(amounts in millions; unaudited) | 2021 | 2020 | ||||||||||||
CRE Operating Profit | $ | 15.4 | $ | 18.1 | ||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||
Corporate and other expense | (6.0) | (6.2) | ||||||||||||
Core business interest expense | (3.5) | (3.8) | ||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 |
TTM March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net Income (Loss) | $ | 9.5 | $ | (41.5) | ||||||||||
Adjustments: | ||||||||||||||
Depreciation and amortization | 52.3 | 53.2 | ||||||||||||
Interest expense | 29.5 | 31.8 | ||||||||||||
Income tax expense (benefit) | (0.3) | (0.9) | ||||||||||||
Consolidated EBITDA | $ | 91.0 | $ | 42.6 | ||||||||||
Asset impairments related to the Materials & Construction Segment | 5.6 | 49.7 | ||||||||||||
Consolidated Adjusted EBITDA | $ | 96.6 | $ | 92.3 |
Three Months Ended March 31, | |||||||||||
(amounts in millions; unaudited) | 2021 | 2020 | |||||||||
Materials & Construction Operating Profit (Loss)1 | $ | (4.0) | $ | (3.3) | |||||||
Materials & Construction depreciation and amortization | 2.6 | 2.8 | |||||||||
Materials & Construction EBITDA1 | (1.4) | (0.5) | |||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | |||||||||
M&C Adjusted EBITDA2 | $ | (1.4) | $ | 0.1 | |||||||
1 As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. | |||||||||||
2 See above for a discussion of management's use of non-GAAP financial measures and reconciliations from GAAP to non-GAAP measures. |
Company Overview | |||||
Company Profile | |||||
Glossary of Terms | |||||
Statement on Management's Use of Non-GAAP Financial Measures | |||||
Financial Summary | |||||
Table 1 – Condensed Consolidated Balance Sheets | |||||
Table 2 – Condensed Consolidated Statements of Operations | |||||
Table 3 – Segment Results | |||||
Table 4 – Condensed Consolidated Statements of Cash Flows | |||||
Table 5 – Debt Summary | |||||
Table 6 – Capitalization & Financial Ratios | |||||
Table 7 – Consolidated Metrics | |||||
Commercial Real Estate | |||||
Table 8 – CRE Metrics | |||||
Table 9 – Occupancy | |||||
Table 10 – NOI and Same-Store NOI by Type | |||||
Table 11 – Improved Property Report | |||||
Table 12 – Ground Lease Report | |||||
Table 13 – Top 10 Tenants Ranked by ABR | |||||
Table 14 – Lease Expiration Schedule | |||||
Table 15 – New & Renewal Lease Summary | |||||
Table 16 – Portfolio Repositioning, Redevelopment & Development Summary | |||||
Table 17 – Transactional Activity (2020 - 2021) | |||||
Land Operations | |||||
Table 18 – Statement of Operating Profit and EBITDA | |||||
Table 19 – Key Active Development-for-sale Projects and Investments | |||||
Table 20 – Landholdings | |||||
Materials & Construction | |||||
Table 21 – Statement of Operating Profit, EBITDA and Adjusted EBITDA |
Executive Officers | |||||||||||
Christopher Benjamin | Brett Brown | ||||||||||
President & Chief Executive Officer | Executive Vice President & Chief Financial Officer | ||||||||||
Lance Parker | Nelson Chun | ||||||||||
Executive Vice President & Chief Real Estate Officer | Executive Vice President & Chief Legal Officer | ||||||||||
Jerrod Schreck | Meredith Ching | ||||||||||
President, Grace Pacific | Executive Vice President, External Affairs | ||||||||||
Contact Information | Equity Research | ||||||||||
Corporate Headquarters | Evercore ISI | ||||||||||
822 Bishop Street | Sheila McGrath | ||||||||||
Honolulu, HI 96813 | (212) 497-0882 | ||||||||||
sheila.mcgrath@evercoreisi.com | |||||||||||
Investor Relations | |||||||||||
Brett Brown | Sidoti & Company, LLC | ||||||||||
Executive Vice President & Chief Financial Officer | Stephen O'Hara | ||||||||||
(808) 525-8475 | (212) 894-3329 | ||||||||||
investorrelations@abhi.com | sohara@sidoti.com | ||||||||||
Transfer Agent & Registrar | Piper Sandler & Co. | ||||||||||
Computershare | Alexander Goldfarb | ||||||||||
P.O. Box 505000 | (212) 466-7937 | ||||||||||
Louisville, KY 40233-5000 | alexander.goldfarb@psc.com | ||||||||||
(866) 442-6551 | |||||||||||
Other Company Information | |||||||||||
Overnight Correspondence | |||||||||||
Computershare | Stock exchange listing: | NYSE: ALEX | |||||||||
462 South 4th Street, Suite 1600 | Corporate website: | www.alexanderbaldwin.com | |||||||||
Louisville, KY 40202 | Grace Pacific website: | www.gracepacific.com | |||||||||
Market capitalization at March 31, 2021: | $1.2B | ||||||||||
Shareholder website: www.computershare.com/investor | 3-month average trading volume: | 419K | |||||||||
Online inquiries: www-us.computershare.com/investor/contact | Independent auditor: | Deloitte & Touche LLP |
ABR | Annualized Base Rent ("ABR") is the current month's contractual base rent multiplied by 12. Base rent is presented without consideration of percentage rent that may, in some cases, be significant. | ||||
Backlog | Backlog represents the total amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded. Backlog primarily consists of asphalt paving and, to a lesser extent, Grace Pacific’s consolidated revenue from its construction-and traffic control-related products. Backlog includes estimated revenue from the remaining portion of contracts not yet completed, as well as revenue from approved change orders. The length of time that projects remain in backlog can span from a few days for a small volume of work to 36 months for large paving contracts and contracts performed in phases. This amount includes opportunity backlog consisting of government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory at the time of this disclosure. Circumstances outside the Company's control such as procurement or technical protests may arise that prevent the finalization of such contracts. | ||||
Comparable Lease | Comparable Leases are either renewals (executed for the same units) or new leases (executed for units that have been vacated in the previous 12 months) for comparable space and comparable lease terms. Expansions, contractions and strategic short-term renewals are excluded from the Comparable Lease pool. | ||||
CRE Portfolio | Composed of (1) retail, industrial and office improved properties subject to operating leases ("Improved Portfolio") and (2) assets subject to ground leases ("Ground Leases") within the CRE segment. | ||||
Debt-service Coverage Ratio | The ratio of Consolidated Adjusted EBITDA to the sum of debt service – which includes interest expense, principal payments for financing leases and term debt, as well as principal amortization of mortgage debt, but excludes balloon payments – for the trailing twelve months. | ||||
EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is calculated on a consolidated basis ("Consolidated EBITDA") by adjusting the Company’s consolidated net income (loss) to exclude the impact of interest expense, income taxes and depreciation and amortization. EBITDA is calculated for each segment ("Segment EBITDA" or "Commercial Real Estate EBITDA," "Land Operations EBITDA" and "Materials & Construction EBITDA") by adjusting segment operating profit (which excludes interest expense and income taxes) to add back depreciation and amortization recorded at the respective segment. | ||||
FFO | Funds From Operations ("FFO") is presented by the Company as a widely used non-GAAP measure of operating performance for real estate companies. FFO is defined by the National Association of Real Estate Investment Trusts ("Nareit") December 2018 Financial Standards White Paper as follows: net income (calculated in accordance with GAAP), excluding (1) depreciation and amortization related to real estate, (2) gains and losses from the sale of certain real estate assets, (3) gains and losses from change in control and (4) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The Company presents different forms of FFO: •"Core FFO" represents a non-GAAP measure relevant to the operating performance of the Company's commercial real estate business (i.e., its core business). Core FFO is calculated by adjusting CRE operating profit to exclude items noted above (i.e., depreciation and amortization related to real estate included in CRE operating profit) and to make further adjustments to include expenses not included in CRE operating profit but that are necessary to accurately reflect the operating performance of its core business (i.e., corporate expenses and interest expense attributable to this core business) or to exclude items that are non-recurring, infrequent, unusual and unrelated to the core business operating performance (i.e., not likely to recur within two years or has not occurred within the prior two years). •FFO represents the Nareit-defined non-GAAP measure for the operating performance of the Company as a whole. The Company's calculation refers to net income (loss) available to A&B common shareholders as its starting point in the calculation of FFO. The Company presents both non-GAAP measures and reconciles each to the most directly-comparable GAAP measure as well as reconciling FFO to Core FFO. The Company's FFO and Core FFO may not be comparable to FFO non-GAAP measures reported by other REITs. These other REITs may not define the term in accordance with the current Nareit definition or may interpret the current Nareit definition differently. | ||||
GAAP | Generally accepted accounting principles in the United States of America. | ||||
GLA | Gross leaseable area ("GLA") measured in square feet ("SF"). GLA is periodically adjusted based on remeasurement or reconfiguration of space and may change period over period for these remeasurements. | ||||
Maintenance Capital Expenditures | As it relates to CRE segment capital expenditures (i.e., capitalizable costs on a cash basis), expenditures necessary to maintain building value, the current income stream and position in the market. Such expenditures may include building/area improvements and tenant space improvements. | ||||
Net Debt | Net Debt is calculated by adjusting the Company's total debt to its notional amount (by excluding unamortized premium, discount and capitalized loan fees) and by subtracting cash and cash equivalents recorded in the Company's consolidated balance sheets. | ||||
NOI | Net Operating Income ("NOI") represents total Commercial Real Estate contract-based operating revenue that is realizable (i.e., assuming collectability is deemed probable) less the direct property-related operating expenses paid or payable in cash. The calculation of NOI excludes the impact of depreciation and amortization (e.g., depreciation related to capitalized costs for improved properties, other capital expenditures for building/area improvements and tenant space improvements, as well as amortization of leasing commissions); straight-line lease adjustments (including amortization of lease incentives); amortization of favorable/unfavorable lease assets/liabilities; lease termination income; interest and other income (expense), net; selling, general, administrative and other expenses (not directly associated with the property); and impairment of commercial real estate assets. | ||||
Occupancy | The Company has historically (through the period ended December 31, 2020) reported occupancy on a physical basis (i.e., based on timing of when the lessee has physical access to the space, henceforth, “Physical Occupancy”). Beginning in the period ended March 31, 2021, to provide additional transparency regarding the status of the spaces available in its improved properties, the Company presents two different types of occupancy ("Leased Occupancy" and "Economic Occupancy"). The Leased Occupancy percentage calculates the square footage leased (i.e., the space has been committed to by a lessee under a signed lease agreement) as a percentage of total available improved property space as of the end of the period reported. The Economic Occupancy percentage calculates the square footage under leases for which the lessee is contractually obligated to make lease-related payments (i.e., subsequent to the rent commencement date) to total available improved property space as of the end of the period reported. | ||||
Rent Spread | Percentage change in ABR in the first year of a signed lease relative to the ABR in the last year of the prior lease. | ||||
Same-Store | The Company reports NOI and Occupancy on a Same-Store basis, which includes the results of properties that were owned and operated for the entirety of the prior calendar year and current reporting period, year-to-date. The Same-Store pool excludes properties under development or redevelopment and also excludes properties acquired or sold during either of the comparable reporting periods. While there is management judgment involved in classifications, new developments and redevelopments are moved into the Same-Store pool after one full calendar year of stabilized operation. Properties included in held for sale are excluded from Same-Store. | ||||
Segment (or Consolidated) Adjusted EBITDA | Segment Adjusted EBITDA (or Consolidated Adjusted EBITDA) is calculated by adjusting Segment EBITDA (or Consolidated EBITDA) for items identified as non-recurring, infrequent or unusual that are not expected to recur in the segment’s normal operations (or in the Company’s core business). Segment Adjusted EBITDA may also be referred to as CRE Adjusted EBITDA, Land Operations Adjusted EBITDA or M&C Adjusted EBITDA (when applicable). In addition to the aforementioned adjustments, the Company further adjusts Materials & Construction EBITDA to exclude income attributable to noncontrolling interests as presented in its consolidated statements of operations to arrive at M&C Adjusted EBITDA. | ||||
Stabilization | New developments and redevelopments are generally considered stabilized upon the initial attainment of 90% occupancy. | ||||
Straight-line Rent | Non-cash revenue related to a GAAP requirement to average tenant rents over the life of the lease, regardless of the actual cash collected in the reporting period. | ||||
TTM | Trailing twelve months. | ||||
Year Built | Year of most recent repositioning/redevelopment or year built if no repositioning/redevelopment has occurred. |
March 31, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments | ||||||||||||||
Real estate property | $ | 1,557.2 | $ | 1,549.7 | ||||||||||
Accumulated depreciation | (161.0) | (154.4) | ||||||||||||
Real estate property, net | 1,396.2 | 1,395.3 | ||||||||||||
Real estate developments | 73.6 | 75.7 | ||||||||||||
Investments in real estate joint ventures and partnerships | 124.0 | 134.1 | ||||||||||||
Real estate intangible assets, net | 59.1 | 61.9 | ||||||||||||
Real estate investments, net | 1,652.9 | 1,667.0 | ||||||||||||
Cash and cash equivalents | 32.0 | 57.2 | ||||||||||||
Restricted cash | 0.2 | 0.2 | ||||||||||||
Accounts receivable and retention, net | 33.2 | 43.5 | ||||||||||||
Inventories | 27.2 | 18.4 | ||||||||||||
Other property, net | 108.7 | 110.8 | ||||||||||||
Operating lease right-of-use assets | 18.2 | 18.6 | ||||||||||||
Goodwill | 10.5 | 10.5 | ||||||||||||
Other receivables, net | 13.9 | 14.2 | ||||||||||||
Prepaid expenses and other assets | 95.1 | 95.6 | ||||||||||||
Total assets | $ | 1,991.9 | $ | 2,036.0 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt | $ | 654.6 | $ | 687.1 | ||||||||||
Accounts payable | 13.2 | 9.8 | ||||||||||||
Operating lease liabilities | 18.5 | 18.4 | ||||||||||||
Accrued pension and post-retirement benefits | 34.9 | 34.7 | ||||||||||||
Deferred revenue | 68.7 | 66.9 | ||||||||||||
Accrued and other liabilities | 95.7 | 116.5 | ||||||||||||
Total liabilities | 885.6 | 933.4 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Redeemable Noncontrolling Interest | 6.5 | 6.5 | ||||||||||||
Equity: | ||||||||||||||
Common stock - no par value; authorized, 150.0 million shares; outstanding, 72.5 million and 72.4 million shares at March 31, 2021 and December 31, 2020, respectively | 1,806.2 | 1,805.5 | ||||||||||||
Accumulated other comprehensive income (loss) | (56.0) | (60.0) | ||||||||||||
Distributions in excess of accumulated earnings | (650.4) | (649.4) | ||||||||||||
Total equity | 1,099.8 | 1,096.1 | ||||||||||||
Total liabilities and equity | $ | 1,991.9 | $ | 2,036.0 |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Operating Revenue: | ||||||||||||||
Commercial Real Estate | $ | 39.9 | $ | 43.4 | ||||||||||
Land Operations1 | 17.1 | 11.0 | ||||||||||||
Materials & Construction1 | 24.0 | 26.4 | ||||||||||||
Total operating revenue | 81.0 | 80.8 | ||||||||||||
Operating Costs and Expenses: | ||||||||||||||
Cost of Commercial Real Estate | 23.4 | 24.3 | ||||||||||||
Cost of Land Operations | 8.1 | 8.0 | ||||||||||||
Cost of Materials & Construction | 23.7 | 25.0 | ||||||||||||
Selling, general and administrative | 12.2 | 13.8 | ||||||||||||
Total operating costs and expenses | 67.4 | 71.1 | ||||||||||||
Gain (loss) on disposal of commercial real estate properties, net | 0.2 | 0.5 | ||||||||||||
Gain (loss) on disposal of non-core assets, net | 0.1 | — | ||||||||||||
Total gain (loss) on disposal of assets, net | 0.3 | 0.5 | ||||||||||||
Operating Income (Loss) | 13.9 | 10.2 | ||||||||||||
Other Income and (Expenses): | ||||||||||||||
Income (loss) related to joint ventures | 3.4 | 3.2 | ||||||||||||
Interest and other income (expense), net | (0.3) | 0.2 | ||||||||||||
Interest expense | (7.0) | (7.8) | ||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 10.0 | 5.8 | ||||||||||||
Income tax benefit (expense) | (0.1) | — | ||||||||||||
Income (Loss) from Continuing Operations | 9.9 | 5.8 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.2) | ||||||||||||
Net Income (Loss) | 9.9 | 5.6 | ||||||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | ||||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
Earnings (Loss) Per Share Available to A&B Shareholders: | ||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||
Weighted-Average Number of Shares Outstanding: | ||||||||||||||
Basic | 72.5 | 72.3 | ||||||||||||
Diluted | 72.6 | 72.5 | ||||||||||||
Amounts Available to A&B Common Shareholders: | ||||||||||||||
Continuing operations available to A&B common shareholders | $ | 9.9 | $ | 6.4 | ||||||||||
Discontinued operations available to A&B common shareholders | — | (0.2) | ||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
1 As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Operating Revenue: | ||||||||||||||
Commercial Real Estate | $ | 39.9 | $ | 43.4 | ||||||||||
Land Operations1 | 17.1 | 11.0 | ||||||||||||
Materials & Construction1 | 24.0 | 26.4 | ||||||||||||
Total operating revenue | 81.0 | 80.8 | ||||||||||||
Operating Profit (Loss): | ||||||||||||||
Commercial Real Estate2 | 15.4 | 18.1 | ||||||||||||
Land Operations1,3 | 11.4 | 4.5 | ||||||||||||
Materials & Construction1 | (4.0) | (3.3) | ||||||||||||
Total operating profit (loss) | 22.8 | 19.3 | ||||||||||||
Gain (loss) on disposal of commercial real estate properties, net | 0.2 | 0.5 | ||||||||||||
Interest expense | (7.0) | (7.8) | ||||||||||||
Corporate and other expense | (6.0) | (6.2) | ||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 10.0 | 5.8 | ||||||||||||
Income tax benefit (expense) | (0.1) | — | ||||||||||||
Income (Loss) from Continuing Operations | 9.9 | 5.8 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.2) | ||||||||||||
Net Income (Loss) | 9.9 | 5.6 | ||||||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | ||||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
1As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. | ||||||||||||||
2 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the consolidated results of operations. | ||||||||||||||
3 Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments. |
March 31, 2021 | December 31, 2020 | |||||||||||||
Accounts receivable and contracts retention, net by segment: | ||||||||||||||
Commercial Real Estate | $ | 3.0 | $ | 5.4 | ||||||||||
Land Operations | 0.9 | 0.8 | ||||||||||||
Materials & Construction | 29.3 | 37.3 | ||||||||||||
Total | $ | 33.2 | $ | 43.5 |
March 31, 2021 | December 31, 2020 | |||||||||||||
Identifiable Assets: | ||||||||||||||
Commercial Real Estate | $ | 1,499.8 | $ | 1,499.9 | ||||||||||
Land Operations | 245.0 | 258.4 | ||||||||||||
Materials & Construction1 | 206.0 | 211.9 | ||||||||||||
Other assets | 41.1 | 65.8 | ||||||||||||
Total assets | $ | 1,991.9 | $ | 2,036.0 | ||||||||||
Book value by segment: | ||||||||||||||
Commercial Real Estate | $ | 1,234.2 | $ | 1,234.4 | ||||||||||
Land Operations | 145.5 | 157.7 | ||||||||||||
Materials & Construction | 166.7 | 169.9 | ||||||||||||
Other assets and liabilities2 | (440.1) | (459.4) | ||||||||||||
Total3 | $ | 1,106.3 | $ | 1,102.6 | ||||||||||
1 Such amounts are inclusive of the carrying value of the Company's unconsolidated investment, Pohaku Pa'a LLC, which was $25.8 million and $26.7 million as of March 31, 2021 and December 31, 2020, respectively. | ||||||||||||||
2 Primarily composed of corporate debt, partially offset by other assets and liabilities, net. | ||||||||||||||
3 Equals the sum of consolidated total equity and the redeemable noncontrolling interest presented on the consolidated balance sheets. |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income (loss) | $ | 9.9 | $ | 5.6 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||||||
Depreciation and amortization | 12.6 | 13.6 | |||||||||
Loss (gain) from disposals and asset transactions, net | (0.3) | (0.5) | |||||||||
Share-based compensation expense | 1.4 | 1.5 | |||||||||
Equity in (income) loss from affiliates, net of operating cash distributions | (2.1) | (2.9) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade, contracts retention, and other contract receivables | 5.4 | 7.0 | |||||||||
Inventories | (8.8) | — | |||||||||
Prepaid expenses, income tax receivable and other assets | (1.0) | 2.4 | |||||||||
Development/other property inventory | 2.2 | (3.2) | |||||||||
Accrued pension and post-retirement benefits | 0.9 | 0.6 | |||||||||
Accounts payable | 0.8 | (3.5) | |||||||||
Accrued and other liabilities | (0.4) | (1.7) | |||||||||
Net cash provided by (used in) operations | 20.6 | 18.9 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures for property, plant and equipment | (5.2) | (6.2) | |||||||||
Proceeds from disposal of assets | 0.5 | 5.9 | |||||||||
Payments for purchases of investments in affiliates and other investments | (0.6) | — | |||||||||
Distributions of capital from investments in affiliates and other investments | 15.7 | 3.2 | |||||||||
Net cash provided by (used in) investing activities | 10.4 | 2.9 | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Proceeds from issuance of notes payable and other debt | — | 108.0 | |||||||||
Payments of notes payable and other debt and deferred financing costs | (37.7) | (44.2) | |||||||||
Borrowings (payments) on line-of-credit agreement, net | 4.0 | 51.4 | |||||||||
Cash dividends paid | (21.8) | (13.8) | |||||||||
Proceeds from issuance (repurchase) of capital stock and other, net | (0.7) | (0.9) | |||||||||
Net cash provided by (used in) financing activities | (56.2) | 100.5 | |||||||||
Cash, Cash Equivalents and Restricted Cash | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (25.2) | 122.3 | |||||||||
Balance, beginning of period | 57.4 | 15.4 | |||||||||
Balance, end of period | $ | 32.2 | $ | 137.7 |
Scheduled Principal Payments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Interest Rate (%) | Weighted-average Interest Rate (%) | Maturity Date | Weighted-average Maturity (Years) | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total Principal | Premium (discount/debt issuance costs), net | Total | |||||||||||||||||||||||||||||||||||||
Secured: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Kailua Town Center | (1) | 5.95% | 2021 | 0.5 | $ | 9.7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9.7 | $ | — | $ | 9.7 | ||||||||||||||||||||||||||||
Kailua Town Center #2 | 3.15% | 3.15% | 2021 | 0.4 | 4.4 | — | — | — | — | — | 4.4 | — | 4.4 | |||||||||||||||||||||||||||||||||||||
Heavy Equipment Financing | (2) | 2.98% | (2) | 1.4 | 0.9 | 1.0 | 0.7 | 0.2 | — | — | 2.8 | — | 2.8 | |||||||||||||||||||||||||||||||||||||
Laulani Village | 3.93% | 3.93% | 2024 | 3.0 | 0.9 | 1.2 | 1.2 | 57.8 | — | — | 61.1 | (0.5) | 60.6 | |||||||||||||||||||||||||||||||||||||
Pearl Highlands | 4.15% | 4.15% | 2024 | 3.6 | 1.5 | 2.1 | 2.2 | 75.1 | — | — | 80.9 | 0.6 | 81.5 | |||||||||||||||||||||||||||||||||||||
Manoa Marketplace | (3) | 3.14% | 2029 | 7.3 | 1.3 | 1.7 | 1.8 | 1.8 | 1.9 | 49.0 | 57.5 | (0.2) | 57.3 | |||||||||||||||||||||||||||||||||||||
Subtotal / Wtd Ave | 3.86% | 4.2 | $ | 18.7 | $ | 6.0 | $ | 5.9 | $ | 134.9 | $ | 1.9 | $ | 49.0 | $ | 216.4 | $ | (0.1) | $ | 216.3 | ||||||||||||||||||||||||||||||
Unsecured: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bank syndicated loan | (4) | 3.15% | 2023 | 1.9 | $ | — | $ | — | $ | 50.0 | $ | — | $ | — | $ | — | $ | 50.0 | $ | — | $ | 50.0 | ||||||||||||||||||||||||||||
Series A Note | 5.53% | 5.53% | 2024 | 1.8 | 7.1 | 7.1 | 7.1 | 7.1 | — | — | 28.4 | — | 28.4 | |||||||||||||||||||||||||||||||||||||
Series J Note | 4.66% | 4.66% | 2025 | 4.1 | — | — | — | — | 10.0 | — | 10.0 | — | 10.0 | |||||||||||||||||||||||||||||||||||||
Series B Note | 5.55% | 5.55% | 2026 | 2.7 | — | 9.0 | 9.0 | 9.0 | 16.0 | 2.0 | 45.0 | — | 45.0 | |||||||||||||||||||||||||||||||||||||
Series C Note | 5.56% | 5.56% | 2026 | 2.3 | 9.0 | 2.0 | 2.0 | 2.0 | 3.0 | 4.0 | 22.0 | — | 22.0 | |||||||||||||||||||||||||||||||||||||
Series F Note | 4.35% | 4.35% | 2026 | 3.1 | 4.5 | — | 5.5 | 2.4 | 3.3 | 4.0 | 19.7 | — | 19.7 | |||||||||||||||||||||||||||||||||||||
Series H Note | 4.04% | 4.04% | 2026 | 5.7 | — | — | — | — | — | 50.0 | 50.0 | — | 50.0 | |||||||||||||||||||||||||||||||||||||
Series K Note | 4.81% | 4.81% | 2027 | 6.1 | — | — | — | — | — | 34.5 | 34.5 | (0.1) | 34.4 | |||||||||||||||||||||||||||||||||||||
Series G Note | 3.88% | 3.88% | 2027 | 4.0 | 1.5 | 6.0 | 5.0 | 1.5 | 6.0 | 9.6 | 29.6 | — | 29.6 | |||||||||||||||||||||||||||||||||||||
Series L Note | 4.89% | 4.89% | 2028 | 7.1 | — | — | — | — | — | 18.0 | 18.0 | — | 18.0 | |||||||||||||||||||||||||||||||||||||
Series I Note | 4.16% | 4.16% | 2028 | 7.7 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||||||||||||||||||
Term Loan 5 | 4.30% | 4.30% | 2029 | 8.7 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||||||||||||||||||
Subtotal / Wtd Ave | 4.48% | 4.4 | $ | 22.1 | $ | 24.1 | $ | 78.6 | $ | 22.0 | $ | 38.3 | $ | 172.1 | $ | 357.2 | $ | (0.1) | $ | 357.1 | ||||||||||||||||||||||||||||||
Revolving Credit Facilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
GLP Asphalt revolving credit facility | (5) | 1.36% | 2021 | — | $ | 1.2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1.2 | $ | — | $ | 1.2 | ||||||||||||||||||||||||||||
A&B Revolver | (6) | 1.99% | 2022 | 1.5 | — | 80.0 | — | — | — | — | 80.0 | — | 80.0 | |||||||||||||||||||||||||||||||||||||
Subtotal / Wtd Ave | 1.98% | 1.5 | $ | 1.2 | $ | 80.0 | $ | — | $ | — | $ | — | $ | — | $ | 81.2 | $ | — | $ | 81.2 | ||||||||||||||||||||||||||||||
Total / Wtd Ave | 3.97% | 4.0 | $ | 42.0 | $ | 110.1 | $ | 84.5 | $ | 156.9 | $ | 40.2 | $ | 221.1 | $ | 654.8 | $ | (0.2) | $ | 654.6 | ||||||||||||||||||||||||||||||
(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Loans have a weighted average stated interest rate of approximately 3.0% and stated maturity dates ranging from 2021 to 2024. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Loan has a stated interest rate of LIBOR plus 1.80%, based on a pricing grid, and its LIBOR component is swapped through maturity (total rate currently at 3.15% based on the spread calculated by the pricing grid). | ||||||||||||||||||||||||||||||||||||||||||||||||||
(5) Loan has a stated interest rate of LIBOR plus 1.25%. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(6) Loan has a stated interest rate of LIBOR plus 1.85% based on a pricing grid. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | |||||||||||
Secured debt | $ | 216.3 | |||||||||
Unsecured term debt | 357.1 | ||||||||||
Unsecured revolving credit facility | 81.2 | ||||||||||
Total debt (A) | $ | 654.6 | |||||||||
Add: Net unamortized deferred financing cost / discount (premium) | 0.2 | ||||||||||
Less: Cash | (32.0) | ||||||||||
Net Debt | $ | 622.8 | |||||||||
Market Capitalization | Shares | Stock Price | Market Value | ||||||||
Common stock (NYSE:ALEX) | 72,469,682 | $16.79 | $ | 1,216.8 | |||||||
Total equity market capitalization (B) | $ | 1,216.8 | |||||||||
Total Market Capitalization (C) = (A) + (B) | $ | 1,871.4 | |||||||||
Total Debt to Total Market Capitalization (A) / (C) | 35.0 | % | |||||||||
Liquidity | |||||||||||
Cash on hand | $ | 32.0 | |||||||||
Unused committed line of credit | 368.9 | ||||||||||
Total liquidity | $ | 400.9 | |||||||||
Financial Ratios | |||||||||||
Net Debt to TTM Consolidated Adjusted EBITDA1 | 6.4 | ||||||||||
Debt-service Coverage Ratio2 | 2.1 | ||||||||||
Fixed-rate debt to total debt | 87.6% | ||||||||||
Unencumbered CRE Property Ratio3 | 75.6% |
Consolidated EBITDA & Consolidated Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended March 31, | TTM March 31, | |||||||||||||||||||
2021 | 2020 | 2021 | ||||||||||||||||||
Net Income (Loss) | $ | 9.9 | $ | 5.6 | $ | 9.5 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Depreciation and amortization | 12.6 | 13.6 | 52.3 | |||||||||||||||||
Interest expense | 7.0 | 7.8 | 29.5 | |||||||||||||||||
Income tax expense (benefit) | 0.1 | — | (0.3) | |||||||||||||||||
Consolidated EBITDA | $ | 29.6 | $ | 27.0 | $ | 91.0 | ||||||||||||||
Asset impairments related to the Materials & Construction Segment | — | — | 5.6 | |||||||||||||||||
Consolidated Adjusted EBITDA | $ | 29.6 | $ | 27.0 | $ | 96.6 | ||||||||||||||
Other discrete items impacting the respective periods - income/(loss): | ||||||||||||||||||||
Income (loss) attributable to noncontrolling interest | $ | — | $ | (0.6) | $ | 0.2 | ||||||||||||||
Income (loss) from discontinued operations before interest, income taxes and depreciation and amortization | — | (0.2) | (0.6) | |||||||||||||||||
Gain (loss) on disposal of commercial real estate properties, net | 0.2 | 0.5 | 0.2 | |||||||||||||||||
Gain (loss) on disposal of non-core assets, net | 0.1 | — | 9.2 | |||||||||||||||||
Consolidated SG&A | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Commercial Real Estate | $ | 1.5 | $ | 2.1 | ||||||||||
Land Operations | 0.9 | 1.2 | ||||||||||||
Materials & Construction | 3.9 | 4.5 | ||||||||||||
Corporate | 5.9 | 6.0 | ||||||||||||
Selling, general and administrative | $ | 12.2 | $ | 13.8 |
FFO & Core FFO | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||
Gain on the disposal of commercial real estate properties, net | (0.2) | (0.5) | ||||||||||||
FFO | $ | 19.2 | $ | 15.9 | ||||||||||
Exclude items not related to core business: | ||||||||||||||
Land Operations Operating Profit | (11.4) | (4.5) | ||||||||||||
Materials & Construction Operating (Profit) Loss | 4.0 | 3.3 | ||||||||||||
Loss from discontinued operations | — | 0.2 | ||||||||||||
Income (loss) attributable to noncontrolling interest | — | (0.6) | ||||||||||||
Income tax expense (benefit) | 0.1 | — | ||||||||||||
Non-core business interest expense | 3.5 | 4.0 | ||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 |
CRE Operating Profit | $ | 15.4 | $ | 18.1 | ||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||
Corporate and other expense | (6.0) | (6.2) | ||||||||||||
Core business interest expense | (3.5) | (3.8) | ||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 | ||||||||||
Net income available to A&B common shareholders per diluted share | $ | 0.14 | $ | 0.09 | ||||||||||
FFO per diluted share | $ | 0.26 | $ | 0.22 | ||||||||||
Core FFO per diluted share | $ | 0.21 | $ | 0.25 | ||||||||||
Weighted average diluted shares outstanding (FFO/Core FFO) | 72.6 | 72.5 |
Other Discrete Items | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Other discrete items impacting the respective periods - income/(loss): | ||||||||||||||
CRE segment straight-line lease adjustments | $ | 0.8 | $ | 0.8 | ||||||||||
CRE segment favorable/(unfavorable) lease amortization | $ | 0.2 | $ | 0.3 | ||||||||||
Consolidated stock based compensation | $ | (1.4) | $ | (1.5) | ||||||||||
CRE segment capital expenditures: | ||||||||||||||
Development and redevelopment | 3.2 | 3.5 | ||||||||||||
Building/area improvements (Maintenance Capital Expenditures) | 1.2 | 1.3 | ||||||||||||
Tenant space improvements (Maintenance Capital Expenditures) | 0.2 | 0.7 | ||||||||||||
Total CRE capital expenditures | $ | 4.6 | $ | 5.5 | ||||||||||
Leasing commissions paid: | $ | 0.3 | $ | 0.3 |
NOI and Same-Store NOI | Three Months Ended March 31, | |||||||||||||
2021 | 2020 | |||||||||||||
Operating Revenue: | ||||||||||||||
Base rental income, net | $ | 26.6 | $ | 28.9 | ||||||||||
Recoveries from tenants | 9.5 | 10.4 | ||||||||||||
Other revenue | 3.8 | 4.1 | ||||||||||||
Total Commercial Real Estate operating revenue | $ | 39.9 | $ | 43.4 | ||||||||||
Operating Costs and Expenses: | ||||||||||||||
Property operations | 9.3 | 10.1 | ||||||||||||
Property taxes | 4.6 | 4.0 | ||||||||||||
Depreciation and amortization | 9.5 | 10.2 | ||||||||||||
Total Commercial Real Estate operating costs and expenses | $ | 23.4 | $ | 24.3 | ||||||||||
Selling, general and administrative | (1.5) | (2.1) | ||||||||||||
Intersegment operating revenues1 | 0.3 | 0.7 | ||||||||||||
Interest and other income (expense), net | 0.1 | 0.4 | ||||||||||||
Operating Profit (Loss) | $ | 15.4 | $ | 18.1 | ||||||||||
Plus: Depreciation and amortization | 9.5 | 10.2 | ||||||||||||
Less: Straight-line lease adjustments | (0.8) | (0.8) | ||||||||||||
Less: Favorable/(unfavorable) lease amortization | (0.2) | (0.3) | ||||||||||||
Plus: Other (income)/expense, net | (0.1) | (0.4) | ||||||||||||
Plus: Selling, general, administrative and other expenses | 1.5 | 2.1 | ||||||||||||
NOI | $ | 25.3 | $ | 28.9 | ||||||||||
Less: NOI from acquisitions, dispositions and other adjustments | (0.6) | (0.6) | ||||||||||||
Same-Store NOI | $ | 24.7 | $ | 28.3 | ||||||||||
Occupancy: | ||||||||||||||
Leased Occupancy | 93.8 | % | 94.9 | % | ||||||||||
Physical Occupancy | 93.1 | % | 94.7 | % | ||||||||||
Economic Occupancy | 92.4 | % | 93.8 | % | ||||||||||
1 Primarily intersegment operating revenue (e.g., base rental income and expense recoveries) from leases with entities that are part of Materials & Construction. Such operating revenue (and also the related expense recorded by these entities in other segments) is eliminated in the consolidated results of operations. | ||||||||||||||
Other Discrete Items | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
CRE segment capital expenditures: | ||||||||||||||
Development and redevelopment | $ | 3.2 | $ | 3.5 | ||||||||||
Building/area improvements (Maintenance Capital Expenditures) | 1.2 | 1.3 | ||||||||||||
Tenant space improvements (Maintenance Capital Expenditures) | 0.2 | 0.7 | ||||||||||||
Total CRE capital expenditures | $ | 4.6 | $ | 5.5 | ||||||||||
Leasing commissions paid: | $ | 0.3 | $ | 0.3 |
Commercial Real Estate EBITDA | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Commercial Real Estate Operating Profit (Loss) | $ | 15.4 | $ | 18.1 | ||||||||||
Depreciation and amortization | 9.5 | 10.2 | ||||||||||||
Commercial Real Estate EBITDA | $ | 24.9 | $ | 28.3 |
Reconciliation of CRE Billings to Operating Revenue | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
CRE billings collected1 | $ | 38.4 | $ | 43.4 | ||||||||||
CRE billings uncollected1 | 5.8 | 1.8 | ||||||||||||
Total CRE billings prior to adjustments1 | 44.2 | 45.2 | ||||||||||||
Revenue charges against uncollectable billed receivables2 | (1.5) | (0.6) | ||||||||||||
Impact of other relief modifications/other adjustments3 | (2.5) | (0.1) | ||||||||||||
Intercompany billings4 | (1.1) | (1.4) | ||||||||||||
Straight-line lease adjustments | 0.8 | 0.8 | ||||||||||||
Favorable/unfavorable lease amortization | 0.2 | 0.3 | ||||||||||||
Other miscellaneous activity5 | (0.2) | (0.8) | ||||||||||||
Total CRE operating revenue | $ | 39.9 | $ | 43.4 | ||||||||||
1 CRE billings collected and uncollected as of April 16, 2021 prior to the applied impact of other relief modifications (e.g., rent forgiveness) and other adjustments. | ||||||||||||||
2 Includes only charges to accounts receivable (i.e., excludes charges to the straight-line lease receivable presented in Other receivables, net in the condensed consolidated balance sheets, which are included in the reconciling item, straight-line lease adjustments). | ||||||||||||||
3 Represents the impact of other relief modifications and other adjustments applied in the period against revenue recorded. | ||||||||||||||
4 Includes intercompany billings between segments and intra-CRE segment billings which are eliminated in producing consolidated financial results and segment results. | ||||||||||||||
5 Includes timing differences between billing and revenue recognition (e.g., deferred revenue, unbilled receivables) as well as other minor adjustments to revenue outside of the billings subledger. |
Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 91.9% | 93.7% | (180) | |||||||||||||||||
Industrial | 97.8% | 97.4% | 40 | |||||||||||||||||
Office | 93.0% | 94.3% | (130) | |||||||||||||||||
Total Improved Portfolio | 93.8% | 94.9% | (110) |
Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 89.9% | 92.4% | (250) | |||||||||||||||||
Industrial | 97.7% | 97.4% | 30 | |||||||||||||||||
Office | 91.2% | 87.5% | 370 | |||||||||||||||||
Total Improved Portfolio | 92.4% | 93.8% | (140) |
Same-Store Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 91.8% | 93.7% | (190) | |||||||||||||||||
Industrial | 97.8% | 97.4% | 40 | |||||||||||||||||
Office | 93.0% | 94.3% | (130) | |||||||||||||||||
Total Improved Portfolio | 93.8% | 94.9% | (110) |
Same-Store Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 89.9% | 92.4% | (250) | |||||||||||||||||
Industrial | 97.7% | 97.4% | 30 | |||||||||||||||||
Office | 91.2% | 87.5% | 370 | |||||||||||||||||
Total Improved Portfolio | 92.4% | 93.8% | (140) |
NOI | |||||||||||||||||||||||||||||
Three Months Ended March 31, | Percentage Change | Q1 2021 as a % of NOI | Q1 2020 as a % of NOI | ||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Retail | $ | 15,349 | $ | 19,183 | (20.0)% | 60.6% | 66.3% | ||||||||||||||||||||||
Industrial | 4,533 | 4,639 | (2.3)% | 17.9% | 16.0% | ||||||||||||||||||||||||
Ground | 4,410 | 4,139 | 6.5% | 17.4% | 14.3% | ||||||||||||||||||||||||
Office | 1,065 | 978 | 8.9% | 4.1% | 3.4% | ||||||||||||||||||||||||
Total Hawai‘i Portfolio | 25,357 | 28,939 | (12.4)% | 100.0% | 100.0% | ||||||||||||||||||||||||
Other | (19) | (11) | NM | —% | —% | ||||||||||||||||||||||||
Total CRE Portfolio | $ | 25,338 | $ | 28,928 | (12.4)% | 100.0% | 100.0% |
Same-Store NOI | |||||||||||||||||||||||||||||
Three Months Ended March 31, | Percentage Change | Q1 2021 as a % of NOI | Q1 2020 as a % of NOI | ||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Retail | $ | 14,744 | $ | 18,574 | (20.6)% | 59.6% | 65.6% | ||||||||||||||||||||||
Industrial | 4,533 | 4,639 | (2.3)% | 18.3% | 16.4% | ||||||||||||||||||||||||
Ground | 4,403 | 4,127 | 6.7% | 17.8% | 14.6% | ||||||||||||||||||||||||
Office | 1,065 | 978 | 8.9% | 4.3% | 3.4% | ||||||||||||||||||||||||
Total CRE Portfolio | $ | 24,745 | $ | 28,318 | (12.6)% | 100.0% | 100.0% |
Dispositions | Additions | |||||||||||||
Date | Property | Date | Property | |||||||||||
2/21 | Residual Maui land | 1/21 | Home Depot Iwilei | |||||||||||
1/21 | Kapolei Business Park West | |||||||||||||
1/21 | Kapolei Enterprise Center | |||||||||||||
1/21 | Waipouli Town Center | |||||||||||||
1/21 | Queens' MarketPlace | |||||||||||||
1/21 | Pu'unene Shopping Center |
Property | Island | Year Built/ Renovated | Current GLA (SF) | Leased / Economic Occupancy | ABR | ABR PSF | Q1 2021 NOI | Q1 2021 % NOI to Improved Portfolio NOI | Retail Anchor Tenants | |||||||||||||||||||||||||||||
Retail: | ||||||||||||||||||||||||||||||||||||||
1 | Pearl Highlands Center | Oahu | 1992-1994 | 411,400 | 96.1 | % | 96.1 | % | $ | 10,787 | $ | 27.30 | $ | 2,146 | 10.3 | % | Sam's Club, Regal Cinemas, 24 Hour Fitness, Ulta Salon | |||||||||||||||||||||
2 | Kailua Retail | Oahu | 1947-2014 | 326,200 | 95.3 | % | 94.6 | % | 10,719 | 34.93 | 2,583 | 12.3 | % | Whole Foods Market, Foodland, CVS/Longs Drugs, Ulta Salon | ||||||||||||||||||||||||
3 | Laulani Village | Oahu | 2012 | 175,800 | 96.6 | % | 96.6 | % | 6,431 | 37.89 | 1,528 | 7.3 | % | Safeway, Ross, Walgreens, Petco | ||||||||||||||||||||||||
4 | Waianae Mall | Oahu | 1975 | 170,800 | 95.8 | % | 84.1 | % | 3,383 | 23.78 | 641 | 3.1 | % | CVS/Longs Drugs, City Mill | ||||||||||||||||||||||||
5 | Manoa Marketplace | Oahu | 1977 | 142,100 | 89.2 | % | 84.6 | % | 4,018 | 33.64 | 926 | 4.4 | % | Safeway, CVS/Longs Drugs | ||||||||||||||||||||||||
6 | Queens' MarketPlace | Hawai‘i Island | 2007 | 134,000 | 91.9 | % | 90.4 | % | 4,124 | 41.53 | 915 | 4.4 | % | Island Gourmet Market | ||||||||||||||||||||||||
7 | Kaneohe Bay Shopping Center (Leasehold) | Oahu | 1971 | 125,400 | 96.6 | % | 96.6 | % | 3,095 | 25.55 | 675 | 3.2 | % | Safeway, CVS/Longs Drugs | ||||||||||||||||||||||||
8 | Hokulei Village | Kauai | 2015 | 119,200 | 97.3 | % | 97.3 | % | 4,097 | 35.34 | 1,009 | 4.8 | % | Safeway, Petco | ||||||||||||||||||||||||
9 | Pu‘unene Shopping Center | Maui | 2017 | 118,000 | 68.1 | % | 68.1 | % | 3,848 | 47.89 | 1,031 | 4.9 | % | Planet Fitness, Petco, Ulta Salon, Target (shadow-anchored) | ||||||||||||||||||||||||
10 | Waipio Shopping Center | Oahu | 1986, 2004 | 113,800 | 99.3 | % | 99.3 | % | 3,362 | 29.74 | 764 | 3.7 | % | Foodland | ||||||||||||||||||||||||
11 | Aikahi Park Shopping Center | Oahu | 1971 | 97,500 | 93.6 | % | 82.8 | % | 1,979 | 24.78 | 490 | 2.3 | % | Safeway | ||||||||||||||||||||||||
12 | Lanihau Marketplace | Hawai‘i Island | 1987 | 88,300 | 91.3 | % | 91.3 | % | 1,633 | 20.25 | 365 | 1.7 | % | Sack N Save, CVS/Longs Drugs | ||||||||||||||||||||||||
13 | The Shops at Kukui‘ula | Kauai | 2009 | 86,100 | 80.7 | % | 76.4 | % | 1,983 | 34.60 | 49 | 0.2 | % | CVS/Longs Drugs | ||||||||||||||||||||||||
14 | Ho‘okele Shopping Center | (1) | Maui | 2019 | 71,400 | 94.7 | % | 88.0 | % | 2,503 | 39.84 | 605 | 2.9 | % | Safeway | |||||||||||||||||||||||
15 | Kunia Shopping Center | Oahu | 2004 | 60,600 | 93.9 | % | 93.9 | % | 2,277 | 40.05 | 557 | 2.7 | % | |||||||||||||||||||||||||
16 | Waipouli Town Center | Kauai | 1980 | 56,600 | 40.8 | % | 40.8 | % | 460 | 19.94 | 166 | 0.8 | % | AutoZone | ||||||||||||||||||||||||
17 | Lau Hala Shops | Oahu | 2018 | 46,300 | 100.0 | % | 100.0 | % | 2,853 | 61.67 | 47 | 0.2 | % | UFC Gym, Down to Earth | ||||||||||||||||||||||||
18 | Napili Plaza | Maui | 1991 | 45,600 | 86.3 | % | 86.3 | % | 1,208 | 31.70 | 94 | 0.5 | % | Napili Market | ||||||||||||||||||||||||
19 | Kahului Shopping Center | Maui | 1951 | 45,300 | 93.6 | % | 93.6 | % | 694 | 16.35 | 95 | 0.5 | % | |||||||||||||||||||||||||
20 | Gateway at Mililani Mauka | Oahu | 2008, 2013 | 34,900 | 96.6 | % | 90.6 | % | 1,836 | 58.14 | 551 | 2.6 | % | CVS/Longs Drugs (shadow-anchored) | ||||||||||||||||||||||||
21 | Port Allen Marina Center | Kauai | 2002 | 23,600 | 88.0 | % | 88.0 | % | 521 | 25.13 | 104 | 0.5 | % | |||||||||||||||||||||||||
22 | The Collection | Oahu | 2017 | 5,900 | 100.0 | % | 100.0 | % | 356 | 60.34 | 8 | — | % | |||||||||||||||||||||||||
Subtotal – Retail | 2,498,800 | 91.9 | % | 89.9 | % | $ | 72,167 | $ | 32.67 | $ | 15,349 | 73.3 | % | |||||||||||||||||||||||||
Industrial: | ||||||||||||||||||||||||||||||||||||||
23 | Komohana Industrial Park | Oahu | 1990 | 238,300 | 100.0 | % | 100.0 | % | $ | 3,389 | $ | 14.22 | $ | 1,354 | 6.5 | % | ||||||||||||||||||||||
24 | Kaka‘ako Commerce Center | Oahu | 1969 | 201,500 | 93.0 | % | 93.0 | % | 2,689 | 14.35 | 408 | 1.9 | % | |||||||||||||||||||||||||
25 | Waipio Industrial | Oahu | 1988-1989 | 158,400 | 99.4 | % | 99.4 | % | 2,541 | 16.14 | 628 | 3.0 | % | |||||||||||||||||||||||||
26 | Opule Industrial | Oahu | 2005-2006, 2018 | 151,500 | 100.0 | % | 100.0 | % | 2,445 | 16.14 | 620 | 3.0 | % | |||||||||||||||||||||||||
27 | P&L Warehouse | Maui | 1970 | 104,100 | 100.0 | % | 100.0 | % | 1,547 | 14.85 | 394 | 1.9 | % | |||||||||||||||||||||||||
28 | Kapolei Enterprise Center | Oahu | 2019 | 93,000 | 100.0 | % | 100.0 | % | 1,543 | 16.58 | 388 | 1.9 | % | |||||||||||||||||||||||||
29 | Honokohau Industrial | Hawai‘i Island | 2004-2006, 2008 | 86,500 | 100.0 | % | 100.0 | % | 1,249 | 14.44 | 304 | 1.4 | % | |||||||||||||||||||||||||
30 | Kailua Industrial/Other | Oahu | 1951-1974 | 69,000 | 91.2 | % | 88.3 | % | 1,046 | 17.59 | 207 | 1.0 | % | |||||||||||||||||||||||||
31 | Port Allen | Kauai | 1983, 1993 | 64,600 | 100.0 | % | 100.0 | % | 680 | 10.53 | 73 | 0.3 | % | |||||||||||||||||||||||||
32 | Harbor Industrial | Maui | 1930 | 51,100 | 89.5 | % | 89.5 | % | 564 | 12.34 | 157 | 0.7 | % | |||||||||||||||||||||||||
Subtotal – Industrial | 1,218,000 | 97.8 | % | 97.7 | % | $ | 17,693 | $ | 14.89 | $ | 4,533 | 21.6 | % |
Property | Island | Year Built/ Renovated | Current GLA (SF) | Leased / Economic Occupancy | ABR | ABR PSF | Q1 2021 NOI | Q1 2021 % NOI to Improved Portfolio NOI | Retail Anchor Tenants | |||||||||||||||||||||||||||||
Office: | ||||||||||||||||||||||||||||||||||||||
33 | Kahului Office Building | Maui | 1974 | 59,400 | 92.0 | % | 89.9 | % | $ | 1,544 | $ | 28.94 | $ | 395 | 1.9 | % | ||||||||||||||||||||||
34 | Gateway at Mililani Mauka South | Oahu | 1992, 2006 | 37,100 | 100.0 | % | 100.0 | % | 1,675 | 45.09 | 433 | 2.1 | % | |||||||||||||||||||||||||
35 | Kahului Office Center | Maui | 1991 | 33,400 | 93.5 | % | 89.7 | % | 788 | 26.26 | 201 | 0.9 | % | |||||||||||||||||||||||||
36 | Lono Center | Maui | 1973 | 13,700 | 77.0 | % | 77.0 | % | 280 | 26.60 | 36 | 0.2 | % | |||||||||||||||||||||||||
Subtotal – Office | 143,600 | 93.0 | % | 91.2 | % | $ | 4,287 | $ | 32.72 | $ | 1,065 | 5.1 | % | |||||||||||||||||||||||||
Total – Hawai‘i Improved Portfolio | 3,860,400 | 93.8 | % | 92.4 | % | $ | 94,147 | $ | 26.69 | $ | 20,947 | 100.0 | % | |||||||||||||||||||||||||
(1) Property is currently not included in the Same-Store pool. |
Property Name (1) | Location (City, Island) | Acres | Property Type | Exp. Year | Current ABR | Q1 2021 NOI | Next Rent Step | Step Type | Next ABR ($ in $000) | Previous Rent Step | Previous Step Type | Previous ABR ($ in $000) | |||||||||||||||||||||||||||||
1 | Owner/Operator | Kapolei, Oahu | 36.4 | Industrial | 2025 | $ | 3,110 | $ | 778 | 2022 | Fixed Step | 3,203 | 2021 | Fixed Step | $ | 2,328 | |||||||||||||||||||||||||
2 | Windward City Shopping Center | Kaneohe, Oahu | 15.4 | Retail | 2035 | 2,800 | 699 | 2023 | FMV Reset | FMV | 2017 | Fixed Step | 2,100 | ||||||||||||||||||||||||||||
3 | Owner/Operator | Honolulu, Oahu | 9.0 | Retail | 2045 | 2,075 | 519 | 2025 | Fixed Step | 2,283 | 2020 | Fixed Step | 1,886 | ||||||||||||||||||||||||||||
4 | Kaimuki Shopping Center | Honolulu, Oahu | 2.8 | Retail | 2040 | 1,728 | 431 | 2022 | Fixed Step | 2,039 | 2020 | FMV Reset | 1,344 | ||||||||||||||||||||||||||||
5 | S&F Industrial | Pu'unene, Maui | 52.0 | Heavy Industrial | 2059 | 1,275 | 356 | 2024 | Fixed Step | 1,433 | 2019 | Fixed Step | 751 | ||||||||||||||||||||||||||||
6 | Owner/Operator | Kaneohe, Oahu | 3.7 | Retail | 2048 | 990 | 247 | 2023 | Fixed Step | 1,059 | 2018 | Option | 694 | ||||||||||||||||||||||||||||
7 | Windward Town and Country Plaza I | Kailua, Oahu | 3.4 | Retail | 2062 | 753 | 188 | 2022 | Fixed Step | 963 | 2012 | FMV Reset | 160 | ||||||||||||||||||||||||||||
8 | Windward Town and Country Plaza II | Kailua, Oahu | 2.2 | Retail | 2062 | 485 | 121 | 2022 | Fixed Step | 621 | 2012 | FMV Reset | 485 | ||||||||||||||||||||||||||||
9 | Owner/Operator | Kailua, Oahu | 1.9 | Retail | 2034 | 450 | 90 | 2024 | Fixed Step | 470 | 2019 | Negotiated | 641 | ||||||||||||||||||||||||||||
10 | Owner/Operator | Honolulu, Oahu | 0.5 | Retail | 2028 | 366 | 91 | 2022 | Fixed Step | 375 | 2021 | Fixed Step | 357 | ||||||||||||||||||||||||||||
11 | Owner/Operator | Honolulu, Oahu | 0.5 | Parking | 2023 | 329 | 82 | 2021 | Fixed Step | 339 | 2020 | Fixed Step | 319 | ||||||||||||||||||||||||||||
12 | Seven-Eleven Kailua Center | Kailua, Oahu | 0.9 | Retail | 2033 | 253 | 63 | 2022 | Fixed Step | 258 | 2021 | Fixed Step | 248 | ||||||||||||||||||||||||||||
13 | Owner/Operator | Kahului, Maui | 0.8 | Retail | 2026 | 249 | 62 | 2021 | Fixed Step | 257 | 2020 | Fixed Step | 242 | ||||||||||||||||||||||||||||
14 | Owner/Operator | Kailua, Oahu | 1.2 | Retail | 2022 | 237 | 55 | — | — | — | 2013 | FMV Reset | 120 | ||||||||||||||||||||||||||||
15 | Owner/Operator | Kahului, Maui | 0.4 | Retail | 2021 | 220 | 55 | — | — | — | 2020 | Option | 214 | ||||||||||||||||||||||||||||
16 | Owner/Operator | Kahului, Maui | 0.8 | Industrial | 2025 | 209 | 52 | 2021 | Fixed Step | 218 | 2020 | Option | 200 | ||||||||||||||||||||||||||||
17 | Pali Palms Plaza | Kailua, Oahu | 3.3 | Office | 2037 | 200 | 66 | 2022 | FMV Reset | FMV | 2012 | Negotiated | 259 | ||||||||||||||||||||||||||||
18 | Owner/Operator | Kahului, Maui | 0.5 | Retail | 2029 | 179 | 56 | 2021 | Fixed Step | 184 | 2020 | Fixed Step | 173 | ||||||||||||||||||||||||||||
19 | Owner/Operator | Kailua, Oahu | 0.4 | Retail | 2022 | 166 | 41 | 2022 | Fixed Step | 174 | 2021 | Fixed Step | 158 | ||||||||||||||||||||||||||||
20 | Owner/Operator | Kahului, Maui | 0.4 | Retail | 2027 | 158 | 65 | 2022 | Fixed Step | 181 | 2017 | Negotiated | 128 | ||||||||||||||||||||||||||||
Remainder | Various | 15.6 | Various | Various | 1,391 | 293 | Various | Various | — | — | — | — | |||||||||||||||||||||||||||||
Total - Ground Leases | 152.0 | $ | 17,622 | $ | 4,410 | ||||||||||||||||||||||||||||||||||||
(1) Excludes intercompany ground leases which are eliminated in the consolidated results of operations. | |||||||||||||||||||||||||||||||||||||||||
Tenant1 | Number of Leases | ABR | % of Total Improved Portfolio ABR | GLA (SF) | % of Total Improved Portfolio GLA | ||||||||||||||||||||||||
Albertsons Companies (including Safeway) | 7 | $ | 6,920 | 7.3 % | 286,024 | 7.4 % | |||||||||||||||||||||||
Sam's Club | 1 | 3,308 | 3.6 % | 180,908 | 4.6 % | ||||||||||||||||||||||||
CVS Corporation (including Longs Drugs) | 6 | 2,752 | 3.0 % | 150,411 | 3.9 % | ||||||||||||||||||||||||
Foodland Supermarket & related companies | 9 | 2,258 | 2.4 % | 116,227 | 3.0 % | ||||||||||||||||||||||||
Ross Dress for Less | 2 | 1,992 | 2.1 % | 65,484 | 1.7 % | ||||||||||||||||||||||||
Coleman World Group | 2 | 1,889 | 2.0 % | 115,495 | 3.0 % | ||||||||||||||||||||||||
GP/RM Prestress, LLC2 | 1 | 1,636 | 1.7 % | N/A | N/A | ||||||||||||||||||||||||
24 Hour Fitness USA | 1 | 1,513 | 1.6 % | 45,870 | 1.2 % | ||||||||||||||||||||||||
Ulta Salon, Cosmetics, & Fragrance, Inc. | 3 | 1,508 | 1.6 % | 33,985 | 0.9 % | ||||||||||||||||||||||||
Petco Animal Supplies Stores | 3 | 1,358 | 1.4 % | 34,282 | 0.9 % | ||||||||||||||||||||||||
Total | 35 | $ | 25,134 | 26.7% | 1,028,686 | 26.6% | |||||||||||||||||||||||
1 The table excludes ground leases as such leases would not be comparable from a GLA perspective. | |||||||||||||||||||||||||||||
2 The leased premises in the GP/RM Prestress, LLC lease includes warehouse and yard space. Due to the yard space, GLA is not presented due to lack of comparability. |
Total Improved Portfolio | ||||||||||||||||||||||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Improved Portfolio Leased GLA | ABR Expiring | % of Total Improved Portfolio Expiring ABR | |||||||||||||||||||||||||||
2021 | 148 | 326,219 | 9.1% | $ | 7,466 | 7.0% | ||||||||||||||||||||||||||
2022 | 185 | 446,522 | 12.4% | 13,487 | 12.7% | |||||||||||||||||||||||||||
2023 | 143 | 334,409 | 9.3% | 10,968 | 10.3% | |||||||||||||||||||||||||||
2024 | 93 | 482,223 | 13.4% | 13,225 | 12.5% | |||||||||||||||||||||||||||
2025 | 62 | 495,355 | 13.8% | 11,735 | 11.1% | |||||||||||||||||||||||||||
2026 | 29 | 207,925 | 5.8% | 5,416 | 5.1% | |||||||||||||||||||||||||||
2027 | 22 | 150,758 | 4.2% | 4,346 | 4.1% | |||||||||||||||||||||||||||
2028 | 41 | 226,370 | 6.3% | 9,059 | 8.5% | |||||||||||||||||||||||||||
2029 | 31 | 165,122 | 4.6% | 6,794 | 6.4% | |||||||||||||||||||||||||||
2030 | 15 | 133,684 | 3.7% | 3,457 | 3.3% | |||||||||||||||||||||||||||
Thereafter | 29 | 464,837 | 13.0% | 14,837 | 14.0% | |||||||||||||||||||||||||||
Month-to-month | 123 | 159,354 | 4.4% | 5,212 | 5.0% | |||||||||||||||||||||||||||
Total | 921 | 3,592,778 | 100.0% | $ | 106,002 | 100.0% | ||||||||||||||||||||||||||
Retail Portfolio | ||||||||||||||||||||||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Retail Leased GLA | ABR Expiring | % of Total Retail Expiring ABR | |||||||||||||||||||||||||||
2021 | 81 | 105,968 | 4.7% | $ | 3,877 | 4.8% | ||||||||||||||||||||||||||
2022 | 123 | 238,038 | 10.5% | 9,959 | 12.2% | |||||||||||||||||||||||||||
2023 | 105 | 214,268 | 9.4% | 8,808 | 10.8% | |||||||||||||||||||||||||||
2024 | 69 | 365,393 | 16.1% | 11,229 | 13.8% | |||||||||||||||||||||||||||
2025 | 52 | 315,226 | 13.9% | 8,557 | 10.5% | |||||||||||||||||||||||||||
2026 | 19 | 32,969 | 1.5% | 1,882 | 2.3% | |||||||||||||||||||||||||||
2027 | 20 | 73,166 | 3.2% | 2,804 | 3.4% | |||||||||||||||||||||||||||
2028 | 37 | 181,462 | 8.0% | 8,117 | 10.0% | |||||||||||||||||||||||||||
2029 | 28 | 147,661 | 6.5% | 6,165 | 7.6% | |||||||||||||||||||||||||||
2030 | 11 | 51,140 | 2.3% | 1,565 | 1.9% | |||||||||||||||||||||||||||
Thereafter | 27 | 452,587 | 19.9% | 14,449 | 17.6% | |||||||||||||||||||||||||||
Month-to-month | 77 | 90,585 | 4.0% | 4,118 | 5.1% | |||||||||||||||||||||||||||
Total | 649 | 2,268,463 | 100.0% | $ | 81,530 | 100.0% | ||||||||||||||||||||||||||
Industrial Portfolio | ||||||||||||||||||||||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Industrial Leased GLA | ABR Expiring | % of Total Industrial Expiring ABR | |||||||||||||||||||||||||||
2021 | 55 | 202,544 | 17.0% | $ | 3,056 | 15.5% | ||||||||||||||||||||||||||
2022 | 49 | 182,554 | 15.3% | 2,790 | 14.2% | |||||||||||||||||||||||||||
2023 | 30 | 99,544 | 8.4% | 1,408 | 7.1% | |||||||||||||||||||||||||||
2024 | 16 | 99,199 | 8.3% | 1,532 | 7.8% | |||||||||||||||||||||||||||
2025 | 8 | 172,941 | 14.5% | 2,925 | 14.8% | |||||||||||||||||||||||||||
2026 | 7 | 158,755 | 13.3% | 2,629 | 13.3% | |||||||||||||||||||||||||||
2027 | 1 | 75,824 | 6.4% | 1,438 | 7.3% | |||||||||||||||||||||||||||
2028 | 1 | 40,505 | 3.4% | 793 | 4.0% | |||||||||||||||||||||||||||
2029 | 2 | 8,431 | 0.7% | 176 | 0.9% | |||||||||||||||||||||||||||
2030 | 1 | 74,990 | 6.3% | 1,623 | 8.2% | |||||||||||||||||||||||||||
Thereafter | 2 | 12,250 | 1.0% | 388 | 2.0% | |||||||||||||||||||||||||||
Month-to-month | 44 | 63,924 | 5.4% | 958 | 4.9% | |||||||||||||||||||||||||||
Total | 216 | 1,191,461 | 100.0% | $ | 19,716 | 100.0% |
Comparable Leases Only1 | ||||||||||||||||||||||||||||||||
Total - New and Renewal Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||||||||||||||
1st Quarter 20213 | 51 | 121,571 | $ | 23.99 | $ | 6.67 | 2.3 | 26 | 77,333 | $ | 22.20 | $ | 21.87 | 1.5% | ||||||||||||||||||
4th Quarter 20203 | 65 | 367,728 | $ | 22.59 | $ | 4.42 | 5.0 | 25 | 264,313 | $ | 20.59 | $ | 18.96 | 8.6% | ||||||||||||||||||
3rd Quarter 20203 | 70 | 174,708 | $ | 33.15 | $ | 1.32 | 2.5 | 23 | 62,191 | $ | 21.94 | $ | 21.05 | 4.2% | ||||||||||||||||||
2nd Quarter 2020 | 42 | 176,535 | $ | 26.40 | $ | 3.96 | 6.8 | 32 | 151,081 | $ | 24.07 | $ | 22.94 | 4.9% | ||||||||||||||||||
Trailing four quarters | 228 | 840,542 | $ | 25.79 | $ | 4.01 | 4.5 | 106 | 554,918 | $ | 21.91 | $ | 20.68 | 5.9% | ||||||||||||||||||
Total - New Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||||||||||||||
1st Quarter 2021 | 11 | 15,798 | $ | 37.89 | $ | 48.90 | 5.2 | 4 | 5,286 | $ | 29.11 | $ | 23.64 | 23.2% | ||||||||||||||||||
4th Quarter 2020 | 23 | 37,001 | $ | 17.16 | $ | 2.17 | 2.1 | 4 | 3,468 | $ | 39.98 | $ | 37.73 | 6.0% | ||||||||||||||||||
3rd Quarter 2020 | 16 | 26,419 | $ | 21.84 | $ | 5.21 | 5.4 | 3 | 2,879 | $ | 28.64 | $ | 37.93 | (24.5)% | ||||||||||||||||||
2nd Quarter 2020 | 11 | 19,871 | $ | 41.59 | $ | 10.04 | 7.1 | 4 | 6,296 | $ | 15.80 | $ | 14.93 | 5.8% | ||||||||||||||||||
Trailing four quarters | 61 | 99,089 | $ | 26.61 | $ | 12.01 | 4.5 | 15 | 17,929 | $ | 26.46 | $ | 25.60 | 3.4% | ||||||||||||||||||
Total - Renewal Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||||||||||||||
1st Quarter 20213 | 40 | 105,773 | $ | 21.92 | $ | 0.37 | 1.9 | 22 | 72,047 | $ | 21.69 | $ | 21.74 | (0.2)% | ||||||||||||||||||
4th Quarter 20203 | 42 | 330,727 | $ | 23.20 | $ | 4.67 | 5.3 | 21 | 260,845 | $ | 20.33 | $ | 18.71 | 8.6% | ||||||||||||||||||
3rd Quarter 20203 | 54 | 148,289 | $ | 35.17 | $ | 0.63 | 1.9 | 20 | 59,312 | $ | 21.61 | $ | 20.23 | 6.8% | ||||||||||||||||||
2nd Quarter 2020 | 31 | 156,664 | $ | 24.48 | $ | 3.19 | 6.8 | 28 | 144,785 | $ | 24.43 | $ | 23.29 | 4.9% | ||||||||||||||||||
Trailing four quarters | 167 | 741,453 | $ | 25.68 | $ | 2.94 | 4.5 | 91 | 536,989 | $ | 21.76 | $ | 20.52 | 6.0% | ||||||||||||||||||
Three Months Ended March 31, 2021 | TTM Ended March 31, 2021 | |||||||||||||||||||||||||||||||
Leases | GLA | ABR/SF | Rent Spread2 | Leases | GLA | ABR/SF | Rent Spread2 | |||||||||||||||||||||||||
Retail | 32 | 54,402 | $ | 37.30 | 3.0% | Retail | 149 | 607,200 | $ | 29.70 | 6.7% | |||||||||||||||||||||
Industrial | 16 | 64,709 | $ | 12.39 | (0.2)% | Industrial | 66 | 207,468 | $ | 13.70 | 4.2% | |||||||||||||||||||||
Office | 3 | 2,460 | $ | 34.83 | —% | Office | 13 | 25,874 | $ | 31.00 | 1.5% |
Leasing Activity | ||||||||||||||||||||||||||||||||||||||
Project | Phase | Target In-service | Target Stabilization | Book Value of Land & Related Costs | Total Estimated Project Capital Costs | Project Capital Costs Incurred to Date | Estimated Incremental Stabilized NOI | Estimated Stabilized Yield on Total Project Capital Costs | Projected GLA (SF) | % Leased | % Under Letter of Intent | Total | ||||||||||||||||||||||||||
Redevelopment | ||||||||||||||||||||||||||||||||||||||
Aikahi Park Shopping Center | Construction | 4Q2021 | 2Q2022 | N/A | $18.0 - $18.8 | $8.5 | $1.5 - $1.7 | 8.2 - 9.0% | 98,000 | 94% | — | 94% |
Dispositions | |||||||||||||||||
Property | Type | Location | Date (Month/Year) | Sales Price | GLA (SF) | ||||||||||||
The Collection (Suites 2 & 3) | Retail | Oahu, HI | 2/20 | $ | 6.0 | 6,100 | |||||||||||
Residual Maui land | Land | Maui, HI | 2/21 | 0.3 | N/A | ||||||||||||
Total | $ | 6.3 | 6,100 | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Development sales revenue | $ | — | $ | 3.6 | ||||||||||
Unimproved/other property sales revenue | 11.3 | 2.1 | ||||||||||||
Other operating revenue1,2 | 5.8 | 5.3 | ||||||||||||
Total Land Operations operating revenue | $ | 17.1 | $ | 11.0 | ||||||||||
Land Operations operating costs and expenses3 | (8.2) | (8.1) | ||||||||||||
Selling, general and administrative | (0.9) | (1.2) | ||||||||||||
Gain (loss) on disposal of assets, net | 0.1 | — | ||||||||||||
Earnings (loss) from joint ventures | 3.6 | 3.0 | ||||||||||||
Interest and other income (expense), net | (0.3) | (0.2) | ||||||||||||
Total Land Operations operating profit (loss)2 | $ | 11.4 | $ | 4.5 | ||||||||||
Three Months Ended March 31, | TTM March 31, | |||||||||||||||||||
2021 | 2020 | 2021 | ||||||||||||||||||
Land Operations Operating Profit (Loss)2 | $ | 11.4 | $ | 4.5 | $ | 22.3 | ||||||||||||||
Land Operations depreciation and amortization | 0.3 | 0.4 | 1.4 | |||||||||||||||||
Land Operations EBITDA | $ | 11.7 | $ | 4.9 | $ | 23.7 | ||||||||||||||
1 Other operating revenue includes revenue related to trucking, renewable energy and diversified agriculture. | ||||||||||||||||||||
2 As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. | ||||||||||||||||||||
3 Includes intersegment operating charges primarily from CRE that are eliminated in the consolidated results of operations. |
Construction Timing | Sales Closing Timing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Project | Location | Product Type | Est. Economic Interest1 | Planned Units or Saleable Acres | Avg Size of Remaining Units (SF) or Lots (Acres) | Units / Acres Closed | Unit / Acres Remaining | Target Sales Price Range per SF / per Unit for Remaining | Est. Total Project Cost / Investment Cost2 | A&B Projected Capital Commitment3 | Total Project Costs Incurred to Date | A&B Gross Investment (Life to Date) | A&B Net Book Value | Start / Est. Start | Est. Substantial Completion | Start / Est. Start | Est. End | ||||||||||||||||||||||||||||||||||||||||||
Maui Business Park (Phase II) | Kahului, Maui | Light industrial lots | 100% | 116.7 acres | 1.2 acres | 50.1 acres | 66.6 acres | $38-$60 per SF | $ | 90 | N/A | $ | 73 | $ | 73 | $ | 33 | 2011 | 2021 | 2012 | 2030+ | ||||||||||||||||||||||||||||||||||||||
Kukui‘ula | Poipu, Kauai | Resort residential | 75% +/- 5% | 1,425 units | N/A | 388 units* | 1,037 units | $1.6M per unit | $ | 1,071 | $ | 343 | $ | 656 | $ | 323 | $ | 110 | 2006 | 2041 | 2006 | 2042 | |||||||||||||||||||||||||||||||||||||
Other Kukui‘ula Related Investments4 | Poipu, Kauai | Resort residential | 75% +/- 5% | 58 units | N/A | 52 units | 6 units | $2.3M per unit | $ | 102 | $ | 53 | $ | 80 | $ | 52 | $ | 14 | 2012 | 2018 | 2013 | 2022 | |||||||||||||||||||||||||||||||||||||
* For context, during the first quarter of 2021, a large parcel of land was sold by the joint venture as part of a bulk sale transaction to a third-party developer which represented 150 of the units contemplated in the total project. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Estimated economic interest represents the Company's estimated share of distributions after return of capital contributions based on current forecasts of sales activity. Actual results could differ materially from projected results due to the timing of expected sales, increases or decreases in estimated sales prices or costs and other factors. As a result, estimated economic interests are subject to change. Further, as it relates to certain of our joint venture projects, information disclosed herein is obtained from our joint venture partners, who maintain the books and records of the related ventures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 Includes land cost at book value, including capitalized interest, but excluding sales commissions and closing costs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 Includes land cost at contribution value and total expected A&B capital to be contributed. The estimate includes due diligence costs and capitalized interest, but excludes capital projected to be contributed by equity partners, third-party debt, and amounts expected to be funded from project cash flows and/or buyer deposits. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 Includes two joint venture investments in vertical construction, development-for-sale projects at Kukui‘ula, as well as notes receivable from a Kukui‘ula development-for-sale project. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Type | Kauai | Maui | Oahu | Total Acres | ||||||||||
Land used in other operations | — | 21 | — | 21 | ||||||||||
Urban land, not in active development/use | ||||||||||||||
Urban Developable, with full or partial infrastructure | 2 | 110 | — | 112 | ||||||||||
Urban Developable, with limited or no infrastructure | 29 | 123 | — | 152 | ||||||||||
Urban Other | 1 | 23 | — | 24 | ||||||||||
Subtotal - Urban land, not in active development/use | 32 | 256 | — | 288 | ||||||||||
Agriculture-related | ||||||||||||||
Agriculture/Other | 6,155 | 5,372 | 75 | 11,602 | ||||||||||
Urban entitlement process | 260 | 357 | — | 617 | ||||||||||
Conservation & preservation | 12,488 | 355 | 509 | 13,352 | ||||||||||
Subtotal - Agriculture-related | 18,903 | 6,084 | 584 | 25,571 | ||||||||||
Total Land Operations Landholdings | 18,935 | 6,361 | 584 | 25,880 | ||||||||||
Three Months Ended March 31, | TTM March 31, | ||||||||||||||||
2021 | 2020 | 2021 | |||||||||||||||
Materials & Construction | |||||||||||||||||
Operating revenue | $ | 24.0 | $ | 26.4 | $ | 114.2 | |||||||||||
Operating costs and expenses | (23.7) | (25.0) | (105.5) | ||||||||||||||
Selling, general and administrative | (3.9) | (4.5) | (14.4) | ||||||||||||||
Intersegment operating charges, net1 | (0.2) | (0.6) | (1.2) | ||||||||||||||
Impairment of assets | — | — | (5.6) | ||||||||||||||
Gain (loss) on disposal of assets, net | — | — | 0.2 | ||||||||||||||
Income (loss) related to joint ventures | (0.2) | 0.3 | 0.8 | ||||||||||||||
Interest and other income (expense), net | — | 0.1 | 0.3 | ||||||||||||||
Operating Profit (Loss)2,3 | $ | (4.0) | $ | (3.3) | $ | (11.2) | |||||||||||
Materials & Construction depreciation and amortization | 2.6 | 2.8 | 10.6 | ||||||||||||||
Materials & Construction EBITDA3 | $ | (1.4) | $ | (0.5) | $ | (0.6) | |||||||||||
Impairment of assets | — | — | 5.6 | ||||||||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | (0.2) | ||||||||||||||
Materials & Construction Adjusted EBITDA3 | $ | (1.4) | $ | 0.1 | $ | 4.8 | |||||||||||
Other discrete items impacting the respective periods - income/(loss): | |||||||||||||||||
One-time charges related to the evaluation of strategic options for the Materials & Construction segment | $ | (0.1) | $ | (0.1) | $ | (0.5) | |||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||||||||
Backlog at period end4 | $ | 127.2 | $ | 126.7 | |||||||||||||
1 Primarily intersegment rent expense from leases with the CRE segment. Such operating charges (and also the related revenue recorded by the other segments) are eliminated in the consolidated results of operations. | |||||||||||||||||
2 Includes the results of GLP Asphalt, a 70%-owned, consolidated joint venture, and GPRM Prestress ("GPRM"), a 51% previously owned, consolidated joint venture that was disposed of at the end of Q2 2020. | |||||||||||||||||
3 As described in the Company’s other filings with the SEC, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes. | |||||||||||||||||
4 Commencing with the Supplemental Information for the three and six months ended June 30, 2020, the backlog for each of the period presented excludes backlog related to GPRM (due to its disposal at the end of Q2 2020). |
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