QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Page | ||||||||||||||
PART I. FINANCIAL INFORMATION | ||||||||||||||
Item 1. | ||||||||||||||
Condensed Consolidated Balance Sheets - As of September 30, 2023 and December 31, 2022 | ||||||||||||||
Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||||||||
Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2023 and 2022 | ||||||||||||||
Condensed Consolidated Statements of Equity and Redeemable Noncontrolling Interest - Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II. OTHER INFORMATION | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 4. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
September 30, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments | ||||||||||||||
Real estate property | $ | $ | ||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Real estate property, net | ||||||||||||||
Real estate developments | ||||||||||||||
Investments in real estate joint ventures and partnerships | ||||||||||||||
Real estate intangible assets, net | ||||||||||||||
Real estate investments, net | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net of allowances (credit losses and doubtful accounts) of $ | ||||||||||||||
Other property, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Other receivables, net of allowances of $ | ||||||||||||||
Prepaid expenses and other assets | ||||||||||||||
Assets held for sale | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued pension and post-retirement benefits | ||||||||||||||
Deferred revenue | ||||||||||||||
Accrued and other liabilities | ||||||||||||||
Liabilities associated with assets held for sale | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and Contingencies (Note 8) | ||||||||||||||
Redeemable Noncontrolling Interest | ||||||||||||||
Equity: | ||||||||||||||
Common stock - no par value; authorized, | ||||||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||||
Distributions in excess of accumulated earnings | ( | ( | ||||||||||||
Total A&B shareholders' equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||||||
Commercial Real Estate | $ | $ | $ | $ | ||||||||||||||||||||||
Land Operations | ||||||||||||||||||||||||||
Total operating revenue | ||||||||||||||||||||||||||
Operating Costs and Expenses: | ||||||||||||||||||||||||||
Cost of Commercial Real Estate | ||||||||||||||||||||||||||
Cost of Land Operations | ||||||||||||||||||||||||||
Selling, general and administrative | ||||||||||||||||||||||||||
Impairment of assets | ||||||||||||||||||||||||||
Total operating costs and expenses | ||||||||||||||||||||||||||
Gain (loss) on disposal of non-core assets, net | ||||||||||||||||||||||||||
Operating Income (Loss) | ||||||||||||||||||||||||||
Other Income and (Expenses): | ||||||||||||||||||||||||||
Income (loss) related to joint ventures | ||||||||||||||||||||||||||
Pension termination | ( | |||||||||||||||||||||||||
Interest and other income (expense), net (Note 2) | ( | |||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | ||||||||||||||||||||||||||
Income tax benefit (expense) | ||||||||||||||||||||||||||
Income (Loss) from Continuing Operations | ||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | ||||||||||||||||||||||||||
Net Income (Loss) | ||||||||||||||||||||||||||
Loss (income) attributable to discontinued noncontrolling interest | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings (Loss) Per Share Available to A&B Shareholders: | ||||||||||||||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Continuing operations available to A&B shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Discontinued operations available to A&B shareholders | ||||||||||||||||||||||||||
Net income (loss) available to A&B shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Continuing operations available to A&B shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Discontinued operations available to A&B shareholders | ||||||||||||||||||||||||||
Net income (loss) available to A&B shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-Average Number of Shares Outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Amounts Available to A&B Common Shareholders (Note 15): | ||||||||||||||||||||||||||
Continuing operations available to A&B common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Discontinued operations available to A&B common shareholders | ||||||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net Income (Loss) | $ | $ | $ | $ | ||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Unrealized interest rate hedging gain (loss) | ||||||||||||||||||||||||||
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | ( | ( | ( | |||||||||||||||||||||||
Realized interest rate hedging gain (loss) | ( | |||||||||||||||||||||||||
Employee benefit plans: | ||||||||||||||||||||||||||
Actuarial gain (loss) | ||||||||||||||||||||||||||
Amortization of net loss included in net periodic benefit cost | ||||||||||||||||||||||||||
Amortization of prior service credit included in net periodic benefit cost | ||||||||||||||||||||||||||
Pension termination | ||||||||||||||||||||||||||
Income taxes related to other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Comprehensive (income) loss attributable to discontinued noncontrolling interest | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive Income (Loss) Attributable to A&B Shareholders | $ | $ | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net income (loss) | $ | $ | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||||||||||||||
Loss (income) from discontinued operations | ( | ( | ||||||||||||
Depreciation and amortization | ||||||||||||||
Income tax expense (benefit) | ( | |||||||||||||
Loss (gain) from disposals and asset transactions, net | ( | ( | ||||||||||||
Impairment of assets | ||||||||||||||
Share-based compensation expense | ||||||||||||||
Loss (income) related to joint ventures, net of operating cash distributions | ( | |||||||||||||
Pension termination | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade and other receivables | ( | ( | ||||||||||||
Prepaid expenses, income tax receivable and other assets | ( | ( | ||||||||||||
Development/other property inventory | ( | |||||||||||||
Accrued pension and post-retirement benefits | ( | |||||||||||||
Accounts payable | ||||||||||||||
Accrued and other liabilities | ( | ( | ||||||||||||
Operating cash flows from continuing operations | ||||||||||||||
Operating cash flows from discontinued operations | ( | ( | ||||||||||||
Net cash provided by (used in) operations | ||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures for acquisitions | ( | |||||||||||||
Capital expenditures for property, plant and equipment | ( | ( | ||||||||||||
Proceeds from disposal of assets | ||||||||||||||
Payments for purchases of investments in affiliates and other investments | ( | ( | ||||||||||||
Distributions of capital and other receipts from investments in affiliates and other investments | ||||||||||||||
Investing cash flows from continuing operations | ( | |||||||||||||
Investing cash flows from discontinued operations | ( | |||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Payments of notes payable and other debt and deferred financing costs | ( | ( | ||||||||||||
Borrowings (payments) on line-of-credit agreement, net | ( | |||||||||||||
Cash dividends paid | ( | ( | ||||||||||||
Repurchases of common stock and other payments | ( | ( | ||||||||||||
Financing cash flows from continuing operations | ( | ( | ||||||||||||
Financing cash flows from discontinued operations | ( | |||||||||||||
Net cash provided by (used in) financing activities | ( | ( | ||||||||||||
Cash, Cash Equivalents, Restricted Cash, and Cash included in Assets Held for Sale | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and cash included in assets held for sale | ( | ( | ||||||||||||
Balance, beginning of period | ||||||||||||||
Balance, end of period | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Other Cash Flow Information: | ||||||||||||||
Interest paid, net of capitalized interest, for continuing operations | $ | $ | ||||||||||||
Interest paid, net of capitalized interest, for discontinued operations | $ | $ | ||||||||||||
Income tax (payments)/refunds, net | $ | $ | ||||||||||||
Noncash Investing and Financing Activities from continuing operations: | ||||||||||||||
Increase (decrease) in capital expenditures included in accounts payable and accrued and other liabilities | $ | $ | ||||||||||||
Operating lease liabilities arising from obtaining ROU assets | $ | $ | ||||||||||||
Finance lease liabilities arising from obtaining ROU assets | $ | $ | ||||||||||||
Dividends declared but unpaid at end of period | $ | $ | ||||||||||||
Repurchases of capital stock in accrued and other liabilities | $ | $ | ||||||||||||
Increase (decrease) in escrow and other receivables from dispositions | $ | $ | ||||||||||||
Noncash Investing and Financing Activities from discontinued operations: | ||||||||||||||
Increase (decrease) in capital expenditures included in liabilities associated with assets held for sale | $ | ( | $ | |||||||||||
Operating lease liabilities arising from obtaining ROU assets | $ | $ | ||||||||||||
Finance lease liabilities arising from obtaining ROU assets | $ | $ | ||||||||||||
Reconciliation of cash, cash equivalents, restricted cash, and cash included in assets held for sale: | ||||||||||||||
Beginning of the period: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Cash included in assets held for sale | ||||||||||||||
Cash, cash equivalents, restricted cash, and cash included in assets held for sale | $ | $ | ||||||||||||
End of the period: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Cash included in assets held for sale | ||||||||||||||
Cash, cash equivalents, restricted cash, and cash included in assets held for sale | $ | $ | ||||||||||||
Total Equity | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income (Loss) | (Distribution in Excess of Accumulated Earnings) Earnings Surplus | Total | Redeemable Non- Controlling Interest | ||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividend on common stock ($ | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued (repurchased), net | ( | ( | — | ( | — | |||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Total Equity | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income (Loss) | (Distribution in Excess of Accumulated Earnings) Earnings Surplus | Total | Redeemable Non- Controlling Interest | ||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||
Balance, July 1, 2023 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividend on common stock ($ | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued (repurchased), net | ( | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | $ |
Total Equity | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income (Loss) | (Distribution in Excess of Accumulated Earnings) Earnings Surplus | Total | Redeemable Non- Controlling Interest | ||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividend on common stock ($ | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued (repurchased), net | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Total Equity | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income (Loss) | (Distribution in Excess of Accumulated Earnings) Earnings Surplus | Total | Redeemable Non- Controlling Interest | ||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividend on common stock ($ | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued (repurchased), net | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Pension and post-retirement benefit (expense) | ( | ( | ( | |||||||||||||||||||||||
Other income (expense), net | ( | ( | ( | |||||||||||||||||||||||
Interest and other income (expense), net | $ | $ | ( | $ | $ |
Fair value of assets acquired | ||||||||
Assets acquired: | ||||||||
Land | $ | |||||||
Property and improvements | ||||||||
In-place leases | ||||||||
Total assets acquired | $ | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||
Gross Profit (Loss) | $ | $ | $ | $ | ||||||||||||||||||||||
Income (Loss) from Continuing Operations1 | $ | $ | $ | $ | ( | |||||||||||||||||||||
Net Income (Loss)1 | $ | $ | $ | $ | ||||||||||||||||||||||
1 Includes earnings from equity method investments held by the investee. |
Fair Value Measurements at | |||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet Location | Total | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Derivative financial instruments - interest rate swaps | Prepaid expenses and other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet Location | Total | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Derivative financial instruments - interest rate swaps | Prepaid expenses and other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative financial instruments - interest rate swaps | Accrued and other liabilities | $ | ( | $ | $ | ( | $ |
Fair Value Measurements at | Quantitative Information about | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | Valuation Technique/ Unobservable Inputs | Weighted Average Discount Rate | ||||||||||||||||||||||||||||||||||||||
Assets held for sale, net1,2 | $ | $ | $ | $ | $ | ( | Indicative bids | N/A | ||||||||||||||||||||||||||||||||||||
Long-lived assets3 | ( | Discounted cash flows/ | ||||||||||||||||||||||||||||||||||||||||||
Market comparables | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
1 Assets or liabilities are presented in Assets held for sale or Liabilities associated with assets held for sale, respectively, in the Condensed Consolidated Balance Sheets. Impairment loss is presented in Income (loss) from discontinued operations, net of income taxes in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
2 Assets held for sale of $ | ||||||||||||||||||||||||||||||||||||||||||||
3 Included in Real estate property in the Condensed Consolidated Balance Sheets. Impairment loss is presented in Cost of Land Operations in the Condensed Consolidated Statements of Operations and is recognized in the Land Operations segment. | ||||||||||||||||||||||||||||||||||||||||||||
Interest Rate (%) | Maturity Date | Principal Outstanding | ||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Secured: | ||||||||||||||||||||||||||
Laulani Village | 2024 | $ | $ | |||||||||||||||||||||||
Pearl Highlands | 2024 | |||||||||||||||||||||||||
Photovoltaic Financing | (1) | 2027 | ||||||||||||||||||||||||
Manoa Marketplace | (2) | 2029 | ||||||||||||||||||||||||
Subtotal | $ | $ | ||||||||||||||||||||||||
Unsecured: | ||||||||||||||||||||||||||
Series A Note | 2024 | $ | $ | |||||||||||||||||||||||
Series J Note | 2025 | |||||||||||||||||||||||||
Series B Note | 2026 | |||||||||||||||||||||||||
Series C Note | 2026 | |||||||||||||||||||||||||
Series F Note | 2026 | |||||||||||||||||||||||||
Series H Note | 2026 | |||||||||||||||||||||||||
Series K Note | 2027 | |||||||||||||||||||||||||
Series G Note | 2027 | |||||||||||||||||||||||||
Series L Note | 2028 | |||||||||||||||||||||||||
Series I Note | 2028 | |||||||||||||||||||||||||
Term Loan 5 | 2029 | |||||||||||||||||||||||||
Subtotal | $ | $ | ||||||||||||||||||||||||
Revolving Credit Facilities: | ||||||||||||||||||||||||||
A&B Revolver | (3) | 2025 | (4) | |||||||||||||||||||||||
Total debt (contractual) | $ | $ | ||||||||||||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||
Total debt (carrying value) | $ | $ | ||||||||||||||||||||||||
(1) Financing lease has an interest rate of | ||||||||||||||||||||||||||
(2) Loan has a stated interest rate of SOFR plus | ||||||||||||||||||||||||||
(3) Loan has a stated interest rate of SOFR plus | ||||||||||||||||||||||||||
(4) A&B Revolver has |
Effective | Maturity | Fixed Interest | Notional Amount at | Asset (Liability) Fair Value at | ||||||||||||||||||||||||||||
Date | Date | Rate | September 30, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||||||||||||||||||
4/7/2016 | 8/1/2029 | $ | $ | $ | ||||||||||||||||||||||||||||
Forward Interest Rate Swap Agreements | ||||||||||||||||||||||||||||||||
5/1/2024 | 12/9/2031 | $ | $ | $ | ( | |||||||||||||||||||||||||||
12/9/2024 | 12/9/2031 | $ | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Derivatives in Designated Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||
Amount of gain (loss) recognized in OCI on derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||
Realized interest rate hedging gain (loss) | $ | $ | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Commercial Real Estate | $ | $ | $ | $ | ||||||||||||||||||||||
Land Operations: | ||||||||||||||||||||||||||
Development sales revenue | ||||||||||||||||||||||||||
Unimproved/other property sales revenue | ||||||||||||||||||||||||||
Other operating revenue | ||||||||||||||||||||||||||
Land Operations | ||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Accounts receivable | $ | $ | ||||||||||||
Allowances (credit losses and doubtful accounts) | ( | ( | ||||||||||||
Accounts receivable, net of allowance for credit losses and allowance for doubtful accounts | $ | $ | ||||||||||||
Variable consideration1 | $ | $ | ||||||||||||
Prepaid rent | ||||||||||||||
Other deferred revenue | ||||||||||||||
Deferred revenue | $ | $ | ||||||||||||
1 Variable consideration deferred as of the end of the periods related to amounts received in the sale of agricultural land on Maui in 2018 that, under revenue recognition guidance, could not be included in the transaction price. | ||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Leased property - real estate | $ | $ | ||||||||||||
Less: accumulated depreciation | ( | ( | ||||||||||||
Property under operating leases - net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Lease payments | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease payments | ||||||||||||||||||||||||||
Revenues deemed uncollectible, net | ( | ( | ( | |||||||||||||||||||||||
Total rental income | $ | $ | $ | $ |
September 30, 2023 | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total future lease payments to be received | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Finance lease cost: | ||||||||||||||||||||||||||
Amortization of right-of-use assets | ||||||||||||||||||||||||||
Interest on lease liabilities | ||||||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
2023 Grants | 2022 Grants | |||||||||||||
Volatility of A&B common stock | ||||||||||||||
Average volatility of peer companies | ||||||||||||||
Risk-free interest rate |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Share-based expense: | ||||||||||||||||||||||||||
Time-based and market-based restricted stock units | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | |||||||||||||||||||||||||
Amortization of net loss | ||||||||||||||||||||||||||
Amortization of prior service credit | ||||||||||||||||||||||||||
Pension termination | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
Distributions and allocations to participating securities | ( | ( | ( | |||||||||||||||||||||||
Income (loss) from continuing operations available to A&B shareholders | ||||||||||||||||||||||||||
Income (loss) from discontinued operations | ||||||||||||||||||||||||||
Exclude: Loss (income) attributable to discontinued noncontrolling interest | ( | ( | ( | ( | ||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Denominator for basic EPS - weighted average shares outstanding | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Restricted stock unit awards | ||||||||||||||||||||||||||
Denominator for diluted EPS - weighted average shares outstanding |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Number of anti-dilutive securities |
September 30, 2023 | December 31, 2022 | |||||||||||||
Post-retirement plans | $ | ( | $ | ( | ||||||||||
Interest rate swap | ||||||||||||||
Accumulated other comprehensive income (loss) | $ | $ |
Employee Benefit Plans | Interest Rate Swap | Total | ||||||||||||||||||
Balance, January 1, 2023 | $ | ( | $ | $ | ||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes of $ | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)1 | ( | ( | ||||||||||||||||||
Other comprehensive income (loss), net of taxes | ||||||||||||||||||||
Balance, September 30, 2023 | $ | ( | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||||||
Commercial Real Estate | $ | $ | $ | $ | ||||||||||||||||||||||
Land Operations | ||||||||||||||||||||||||||
Total operating revenue | ||||||||||||||||||||||||||
Operating Profit (Loss): | ||||||||||||||||||||||||||
Commercial Real Estate1 | ||||||||||||||||||||||||||
Land Operations2,3 | ( | ( | ||||||||||||||||||||||||
Total operating profit (loss)2 | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Corporate and other expense4 | ( | ( | ( | ( | ||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | $ | $ | $ | $ | ||||||||||||||||||||||
1 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Land Operations segment that is eliminated in consolidation as well as pension termination charges of $ | ||||||||||||||||||||||||||
2 In December 2022, the Grace Disposal Group met the classification as held for sale and discontinued operations, and the Company changed the composition of its reportable segments based on how the chief operating decision maker assesses the performance of the Company's continuing operations. This caused reported amounts (i.e., operating profit and segment operating profit) in the historical period to be reclassified from the former M&C segment to the Land Operations segment or discontinued operations. All comparable information for the historical periods has been retrospectively adjusted to reflect the impact of these changes, resulting in changes to Land Operations Operating Profit (Loss) and Total operating profit (loss) of $ | ||||||||||||||||||||||||||
3 For the three and nine months ended September 30, 2022, Land Operations segment operating profit (loss) included equity in earnings (losses) from the Company's various joint ventures of $ | ||||||||||||||||||||||||||
4 Corporate and other expense includes pension termination charges of $ | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales1 | ( | ( | ( | ( | ||||||||||||||||||||||
Selling, general and administrative | ( | ( | ( | ( | ||||||||||||||||||||||
Operating income (loss) from discontinued operations1 | ||||||||||||||||||||||||||
Income (loss) related to joint ventures | ( | ( | ( | ( | ||||||||||||||||||||||
Interest and other income (expense), net | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes1 | ||||||||||||||||||||||||||
Income tax benefit (expense) attributable to discontinued operations | ||||||||||||||||||||||||||
Income (loss) from discontinued operations1 | ||||||||||||||||||||||||||
Loss (income) attributable to discontinued noncontrolling interest | ( | ( | ( | ( | ||||||||||||||||||||||
Income (loss) from discontinued operations attributable to A&B Shareholders1 | $ | $ | $ | $ | ||||||||||||||||||||||
1Includes $( |
September 30, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts of $ | ||||||||||||||
Inventories | ||||||||||||||
Other property, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Prepaid expenses and other assets | ||||||||||||||
Less: Impairment recognized on classification as held for sale | ( | ( | ||||||||||||
Total Assets held for sale | $ | $ | ||||||||||||
Notes payable and other debt | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued and other liabilities | ||||||||||||||
Total Liabilities associated with assets held for sale | $ | $ |
(amounts in millions, except percentage data and per share data; unaudited) | Three Months Ended September 30, | 2023 vs 2022 | ||||||||||||||||||||||||
2023 | 2022 | $ | % | |||||||||||||||||||||||
Operating revenue | $ | 52.5 | $ | 49.4 | $ | 3.1 | 6.3 | % | ||||||||||||||||||
Cost of operations | (27.3) | (29.2) | 1.9 | 6.5 | % | |||||||||||||||||||||
Selling, general and administrative | (7.6) | (9.6) | 2.0 | 20.8 | % | |||||||||||||||||||||
Impairment of assets | (0.6) | — | (0.6) | NM | ||||||||||||||||||||||
Operating income (loss) | 17.0 | 10.6 | 6.4 | 60.4 | % | |||||||||||||||||||||
Income (loss) related to joint ventures | 1.0 | 0.8 | 0.2 | 25.0 | % | |||||||||||||||||||||
Interest and other income (expense), net | 0.1 | (0.2) | 0.3 | NM | ||||||||||||||||||||||
Interest expense | (6.1) | (5.4) | (0.7) | (13.0) | % | |||||||||||||||||||||
Income (loss) from continuing operations | 12.0 | 5.8 | 6.2 | 106.9 | % | |||||||||||||||||||||
Discontinued operations (net of income taxes) | 3.9 | 1.0 | 2.9 | 3X | ||||||||||||||||||||||
Net income (loss) | 15.9 | 6.8 | 9.1 | 133.8 | % | |||||||||||||||||||||
(Income) loss attributable to discontinued noncontrolling interest | (1.3) | (0.4) | (0.9) | 2X | ||||||||||||||||||||||
Net income (loss) attributable to A&B | $ | 14.6 | $ | 6.4 | $ | 8.2 | 128.1 | % | ||||||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Basic earnings (loss) per share - continuing operations | $ | 0.16 | $ | 0.08 | $ | 0.08 | 100.0 | % | ||||||||||||||||||
Basic earnings (loss) per share - discontinued operations | 0.04 | 0.01 | 0.03 | 3X | ||||||||||||||||||||||
$ | 0.20 | $ | 0.09 | $ | 0.11 | 122.2 | % | |||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Diluted earnings (loss) per share - continuing operations | $ | 0.16 | $ | 0.08 | $ | 0.08 | 100.0 | % | ||||||||||||||||||
Diluted earnings (loss) per share - discontinued operations | 0.04 | 0.01 | 0.03 | 3X | ||||||||||||||||||||||
$ | 0.20 | $ | 0.09 | $ | 0.11 | 122.2 | % | |||||||||||||||||||
Continuing operations available to A&B common shareholders | $ | 12.0 | $ | 5.7 | $ | 6.3 | 110.5 | % | ||||||||||||||||||
Discontinued operations available to A&B common shareholders | 2.6 | 0.6 | 2.0 | 3X | ||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 14.6 | $ | 6.3 | $ | 8.3 | 131.7 | % | ||||||||||||||||||
Funds From Operations ("FFO")1 | $ | 21.1 | $ | 14.7 | $ | 6.4 | 43.5 | % | ||||||||||||||||||
Core FFO1 | $ | 21.8 | $ | 18.7 | $ | 3.1 | 16.6 | % | ||||||||||||||||||
FFO per diluted share | $ | 0.29 | $ | 0.20 | $ | 0.09 | 45.0 | % | ||||||||||||||||||
Core FFO per diluted share | $ | 0.30 | $ | 0.26 | $ | 0.04 | 15.4 | % | ||||||||||||||||||
Weighted average diluted shares outstanding (FFO/Core FFO)2 | 72.8 | 72.8 | ||||||||||||||||||||||||
1 For definitions of capitalized terms and a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 35. | ||||||||||||||||||||||||||
2 May differ from figure used in the consolidated statements of operations based on differing dilutive effects for net income (loss) versus FFO/Core FFO. |
(amounts in millions, except percentage data and per share data; unaudited) | Nine Months Ended September 30, | 2023 vs 2022 | ||||||||||||||||||||||||
2023 | 2022 | $ | % | |||||||||||||||||||||||
Operating revenue | $ | 156.0 | $ | 159.7 | $ | (3.7) | (2.3) | % | ||||||||||||||||||
Cost of operations | (82.9) | (92.0) | 9.1 | 9.9 | % | |||||||||||||||||||||
Selling, general and administrative | (26.2) | (27.7) | 1.5 | 5.4 | % | |||||||||||||||||||||
Impairment of assets | (0.6) | — | (0.6) | — | % | |||||||||||||||||||||
Gain (loss) on disposal of non-core assets, net | 1.1 | 54.0 | (52.9) | (98.0) | % | |||||||||||||||||||||
Operating income (loss) | 47.4 | 94.0 | (46.6) | (49.6) | % | |||||||||||||||||||||
Income (loss) related to joint ventures | 1.9 | 2.3 | (0.4) | (17.4) | % | |||||||||||||||||||||
Pension termination | — | (76.9) | 76.9 | 100.0 | % | |||||||||||||||||||||
Interest and other income (expense), net | — | 0.1 | (0.1) | (100.0) | % | |||||||||||||||||||||
Interest expense | (17.0) | (16.7) | (0.3) | (1.8) | % | |||||||||||||||||||||
Income tax benefit (expense) | — | 18.1 | (18.1) | (100.0) | % | |||||||||||||||||||||
Income (loss) from continuing operations | 32.3 | 20.9 | 11.4 | 54.5 | % | |||||||||||||||||||||
Discontinued operations (net of income taxes) | 3.9 | 1.3 | 2.6 | 200.0 | % | |||||||||||||||||||||
Net income (loss) | 36.2 | 22.2 | 14.0 | 63.1 | % | |||||||||||||||||||||
(Income) loss attributable to discontinued noncontrolling interest | (2.9) | (1.2) | (1.7) | (141.7) | % | |||||||||||||||||||||
Net income (loss) attributable to A&B | $ | 33.3 | $ | 21.0 | $ | 12.3 | 58.6 | % | ||||||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Basic earnings (loss) per share - continuing operations | $ | 0.44 | $ | 0.29 | $ | 0.15 | 51.7 | % | ||||||||||||||||||
Basic earnings (loss) per share - discontinued operations | 0.02 | — | 0.02 | — | % | |||||||||||||||||||||
$ | 0.46 | $ | 0.29 | $ | 0.17 | 58.6 | % | |||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Diluted earnings (loss) per share - continuing operations | $ | 0.44 | $ | 0.29 | $ | 0.15 | 51.7 | % | ||||||||||||||||||
Diluted earnings (loss) per share - discontinued operations | 0.02 | — | 0.02 | — | % | |||||||||||||||||||||
$ | 0.46 | $ | 0.29 | $ | 0.17 | 58.6 | % | |||||||||||||||||||
Continuing operations available to A&B common shareholders | $ | 32.2 | $ | 20.7 | $ | 11.5 | 55.6 | % | ||||||||||||||||||
Discontinued operations available to A&B common shareholders | 1.0 | 0.1 | 0.9 | 9X | ||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 33.2 | $ | 20.8 | $ | 12.4 | 59.6 | % | ||||||||||||||||||
Funds From Operations ("FFO")1 | $ | 59.5 | $ | 48.1 | $ | 11.4 | 23.7 | % | ||||||||||||||||||
Core FFO1 | $ | 64.3 | $ | 60.0 | $ | 4.3 | 7.2 | % | ||||||||||||||||||
FFO per diluted share | $ | 0.82 | $ | 0.66 | $ | 0.16 | 24.2 | % | ||||||||||||||||||
Core FFO per diluted share | $ | 0.88 | $ | 0.82 | $ | 0.06 | 7.3 | % | ||||||||||||||||||
Weighted average diluted shares outstanding (FFO/Core FFO)2 | 72.8 | 72.8 | ||||||||||||||||||||||||
1 For definitions of capitalized terms and a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 35. | ||||||||||||||||||||||||||
2 May differ from figure used in the consolidated statements of operations based on differing dilutive effects for net income (loss) versus FFO/Core FFO. |
(amounts in millions, except percentage data and acres; unaudited) | Three Months Ended September 30, | 2023 vs 2022 | ||||||||||||||||||||||||
2023 | 2022 | $ | %1 | |||||||||||||||||||||||
Commercial Real Estate operating revenue | $ | 48.2 | $ | 46.5 | $ | 1.7 | 3.7 | % | ||||||||||||||||||
Commercial Real Estate operating costs and expenses | (25.1) | (25.0) | (0.1) | (0.4) | % | |||||||||||||||||||||
Selling, general and administrative | (1.7) | (1.8) | 0.1 | 5.6 | % | |||||||||||||||||||||
Impairment of real estate assets | (0.6) | — | (0.6) | — | % | |||||||||||||||||||||
Interest and other income (expense), net | (0.2) | 0.6 | (0.8) | NM | ||||||||||||||||||||||
Commercial Real Estate operating profit (loss) | $ | 20.6 | $ | 20.3 | $ | 0.3 | 1.5 | % | ||||||||||||||||||
Net Operating Income ("NOI")2 | $ | 31.0 | $ | 29.0 | $ | 2.0 | 6.9 | % | ||||||||||||||||||
Same-Store Net Operating Income ("Same-Store NOI")2 | $ | 30.8 | $ | 29.0 | $ | 1.8 | 6.3 | % | ||||||||||||||||||
Gross leasable area ("GLA") in square feet ("SF") for improved properties at end of period | 3.9 | 3.9 | — | — | % | |||||||||||||||||||||
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. | ||||||||||||||||||||||||||
2 For a discussion of management's use of non-GAAP financial measures and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 35. |
Nine Months Ended September 30, | 2023 vs 2022 | |||||||||||||||||||||||||
(amounts in millions, except percentage data; unaudited) | 2023 | 2022 | $ | %1 | ||||||||||||||||||||||
Commercial Real Estate operating revenue | $ | 145.6 | $ | 138.8 | $ | 6.8 | 4.9 | % | ||||||||||||||||||
Commercial Real Estate operating costs and expenses | (75.1) | (73.2) | (1.9) | (2.6) | % | |||||||||||||||||||||
Selling, general and administrative | (5.6) | (5.2) | (0.4) | (7.7) | % | |||||||||||||||||||||
Intersegment operating revenue, net2 | — | 0.2 | (0.2) | (100.0) | % | |||||||||||||||||||||
Impairment of real estate assets | (0.6) | — | (0.6) | — | % | |||||||||||||||||||||
Pension termination | — | (0.7) | 0.7 | 100.0 | % | |||||||||||||||||||||
Interest and other income (expense), net | (0.1) | 0.4 | (0.5) | NM | ||||||||||||||||||||||
Commercial Real Estate operating profit (loss) | $ | 64.2 | $ | 60.3 | $ | 3.9 | 6.5 | % | ||||||||||||||||||
Net Operating Income ("NOI")3 | $ | 92.7 | $ | 88.6 | $ | 4.1 | 4.7 | % | ||||||||||||||||||
Same-Store Net Operating Income ("Same-Store NOI")3 | $ | 92.4 | $ | 88.5 | $ | 3.9 | 4.3 | % | ||||||||||||||||||
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. | ||||||||||||||||||||||||||
2 Intersegment operating revenue, net for Commercial Real Estate is primarily from the Land Operations segment and is eliminated in the consolidated results of operations. | ||||||||||||||||||||||||||
3 For a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 35. |
Acquisitions | ||||||||||||||||||||||||||
Property | Location | Date (Month/Year) | Purchase Price | GLA (SF) | ||||||||||||||||||||||
Kaomi Loop Industrial | Oahu, HI | 05/2023 | $9.5 | 33,200 |
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
Leases | GLA (SF) | ABR2,4/SF | Rent Spread3 | Leases | GLA (SF) | ABR2,4/SF | Rent Spread3 | ||||||||||||||||||||||
Retail | 42 | 71,053 | $41.44 | 13.8% | 119 | 265,203 | $40.43 | 8.0% | |||||||||||||||||||||
Industrial | 18 | 77,176 | $14.51 | 4.1% | 56 | 232,331 | $16.01 | 7.1% | |||||||||||||||||||||
Office | 2 | 1,710 | $18.60 | —% | 8 | 11,771 | $31.07 | 3.8% | |||||||||||||||||||||
Subtotal - Improved | 62 | 149,939 | $27.32 | 11.2% | 183 | 509,305 | $29.07 | 7.6% | |||||||||||||||||||||
Ground | 2 | N/A1 | $0.3 | 27.6% | 6 | N/A1 | $5.0 | 37.8% | |||||||||||||||||||||
1 Not applicable for ground leases as such leases would not be comparable from a GLA (SF) perspective | |||||||||||||||||||||||||||||
2Annualized 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. | |||||||||||||||||||||||||||||
3 Rent spread is calculated for comparable leases, a subset of the total population of leases for the period presented (described above). | |||||||||||||||||||||||||||||
4 Current ABR, in millions, is presented for ground leases |
As of | As of | Basis Point Change | ||||||||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||||||
Leased Occupancy | 94.6% | 94.6% | — | |||||||||||||||||
Physical Occupancy | 93.9% | 93.8% | 10 | |||||||||||||||||
Economic Occupancy | 92.9% | 93.1% | (20) |
Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||||||
Retail | 94.0% | 93.3% | 70 | |||||||||||||||||
Industrial | 96.8% | 98.0% | (120) | |||||||||||||||||
Office | 84.5% | 89.1% | (460) | |||||||||||||||||
Total Leased Occupancy | 94.6% | 94.6% | — |
Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||||||
Retail | 91.9% | 91.3% | 60 | |||||||||||||||||
Industrial | 95.9% | 97.6% | (170) | |||||||||||||||||
Office | 83.5% | 85.7% | (220) | |||||||||||||||||
Total Economic Occupancy | 92.9% | 93.1% | (20) |
Same-Store Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||||||
Retail | 94.0% | 93.3% | 70 | |||||||||||||||||
Industrial | 96.7% | 98.0% | (130) | |||||||||||||||||
Office | 84.5% | 89.1% | (460) | |||||||||||||||||
Total Same-Store Leased Occupancy | 94.5% | 94.6% | (10) |
Same-Store Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||||||
Retail | 91.9% | 91.3% | 60 | |||||||||||||||||
Industrial | 95.8% | 97.5% | (170) | |||||||||||||||||
Office | 83.5% | 85.7% | (220) | |||||||||||||||||
Total Same-Store Economic Occupancy | 92.8% | 93.1% | (30) |
Three Months Ended September 30, | ||||||||||||||
(amounts in millions; unaudited) | 2023 | 2022 | ||||||||||||
Unimproved/other property sales revenue | 4.0 | — | ||||||||||||
Other operating revenue1 | 0.3 | 2.9 | ||||||||||||
Total Land Operations operating revenue | 4.3 | 2.9 | ||||||||||||
Land Operations operating costs and expenses | (2.2) | (4.2) | ||||||||||||
Selling, general and administrative | (0.5) | (0.6) | ||||||||||||
Intersegment operating charges, net2 | — | (0.1) | ||||||||||||
Earnings (loss) from joint ventures | 1.0 | 0.8 | ||||||||||||
Interest and other income (expense), net | 0.3 | (0.1) | ||||||||||||
Total Land Operations operating profit (loss) | $ | 2.9 | $ | (1.3) | ||||||||||
1 Other operating revenue includes revenue related to licensing and leasing of non-core legacy agricultural lands during the periods ended 2023 and 2022. Other revenue also includes trucking during the period ended 2022. | ||||||||||||||
2 Intersegment operating charges for Land Operations are primarily from the Commercial Real Estate segment and are eliminated in the consolidated results of operations. |
Nine Months Ended September 30, | ||||||||||||||
(amounts in millions; unaudited) | 2023 | 2022 | ||||||||||||
Development sales revenue | $ | — | $ | 6.3 | ||||||||||
Unimproved/other property sales revenue | 8.1 | 2.0 | ||||||||||||
Other operating revenue1 | 2.3 | 12.6 | ||||||||||||
Total Land Operations operating revenue | 10.4 | 20.9 | ||||||||||||
Land Operations operating costs and expenses | (7.8) | (18.8) | ||||||||||||
Selling, general and administrative | (1.4) | (3.0) | ||||||||||||
Gain (loss) on disposal of assets, net | 1.1 | 54.0 | ||||||||||||
Intersegment operating charges, net2 | (0.1) | (0.2) | ||||||||||||
Earnings (loss) from joint ventures | 1.9 | 2.3 | ||||||||||||
Pension termination | — | (62.2) | ||||||||||||
Interest and other income (expense), net | 0.4 | (0.1) | ||||||||||||
Total Land Operations operating profit (loss) | $ | 4.5 | $ | (7.1) | ||||||||||
1 Other operating revenue includes revenue related to trucking and licensing and leasing of non-core legacy agricultural lands during the periods ended 2023 and 2022. Other revenue also includes renewable energy during the period ended 2022. | ||||||||||||||
2 Intersegment operating charges primarily from CRE that are eliminated in the consolidated results of operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net Income (Loss) available to A&B common shareholders | $ | 14.6 | $ | 6.3 | $ | 33.2 | $ | 20.8 | ||||||||||||||||||
Depreciation and amortization of commercial real estate properties | 9.1 | 9.0 | 27.3 | 27.4 | ||||||||||||||||||||||
(Income) loss from discontinued operations, net of income taxes | (3.9) | (1.0) | (3.9) | (1.3) | ||||||||||||||||||||||
Income (loss) attributable to discontinued noncontrolling interest | 1.3 | 0.4 | 2.9 | 1.2 | ||||||||||||||||||||||
FFO | $ | 21.1 | $ | 14.7 | $ | 59.5 | $ | 48.1 | ||||||||||||||||||
Exclude items not related to core business: | ||||||||||||||||||||||||||
Land Operations operating (profit) loss | (2.9) | 1.3 | (4.5) | 7.1 | ||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | (18.1) | ||||||||||||||||||||||
Non-core business interest expense | 3.0 | 2.7 | 8.7 | 8.2 | ||||||||||||||||||||||
Impairment losses - abandoned development costs | 0.6 | — | 0.6 | — | ||||||||||||||||||||||
Pension termination - CRE and Corporate | — | — | — | 14.7 | ||||||||||||||||||||||
Core FFO | $ | 21.8 | $ | 18.7 | $ | 64.3 | $ | 60.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Commercial Real Estate Operating Profit (Loss) | $ | 20.6 | $ | 20.3 | $ | 64.2 | $ | 60.3 | ||||||||||||||||||
Depreciation and amortization of commercial real estate properties | 9.1 | 9.0 | 27.3 | 27.4 | ||||||||||||||||||||||
Corporate and other expense | (5.4) | (7.8) | (19.4) | (33.7) | ||||||||||||||||||||||
Core business interest expense | (3.1) | (2.7) | (8.3) | (8.5) | ||||||||||||||||||||||
Impairment losses - abandoned development costs | 0.6 | — | 0.6 | — | ||||||||||||||||||||||
Distributions to participating securities | — | (0.1) | (0.1) | (0.2) | ||||||||||||||||||||||
Pension termination - CRE and Corporate | — | — | — | 14.7 | ||||||||||||||||||||||
Core FFO | $ | 21.8 | $ | 18.7 | $ | 64.3 | $ | 60.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
CRE Operating Profit (Loss) | $ | 20.6 | $ | 20.3 | $ | 64.2 | $ | 60.3 | ||||||||||||||||||
Plus: Depreciation and amortization | 9.1 | 9.0 | 27.3 | 27.4 | ||||||||||||||||||||||
Less: Straight-line lease adjustments | (0.8) | (1.2) | (4.2) | (3.7) | ||||||||||||||||||||||
Less: Favorable/(unfavorable) lease amortization | (0.3) | (0.2) | (0.8) | (0.8) | ||||||||||||||||||||||
Less: Termination income | (0.1) | (0.1) | (0.1) | (0.1) | ||||||||||||||||||||||
Plus: Other (income)/expense, net | 0.2 | (0.6) | 0.1 | 0.3 | ||||||||||||||||||||||
Plus: Impairment losses - abandoned development costs | 0.6 | — | 0.6 | — | ||||||||||||||||||||||
Plus: Selling, general, administrative and other expenses | 1.7 | 1.8 | 5.6 | 5.2 | ||||||||||||||||||||||
NOI | 31.0 | 29.0 | 92.7 | 88.6 | ||||||||||||||||||||||
Less: NOI from acquisitions, dispositions, and other adjustments | (0.2) | — | (0.3) | (0.1) | ||||||||||||||||||||||
Same-Store NOI | $ | 30.8 | $ | 29.0 | $ | 92.4 | $ | 88.5 |
Nine Months Ended September 30, | ||||||||||||||||||||
(dollars in millions; unaudited) | 2023 | 2022 | Change | |||||||||||||||||
CRE property acquisitions, development and redevelopment | $ | 15.6 | $ | 4.8 | 225.0% | |||||||||||||||
Building/area improvements (Maintenance Capital Expenditures) | 5.2 | 3.5 | 48.6% | |||||||||||||||||
Tenant space improvements (Maintenance Capital Expenditures) | 2.1 | 2.4 | (12.5)% | |||||||||||||||||
Tenant space improvements - nonrecurring (Maintenance Capital Expenditures) | 0.1 | — | NM | |||||||||||||||||
Land Operations and Corporate | 0.1 | 0.3 | (66.7)% | |||||||||||||||||
Total capital expenditures1 | $ | 23.1 | $ | 11.0 | 110.0% |
Issuer Purchases of Equity Securities | |||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share¹ | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||
(in thousands) | |||||||||||||||||
July 1-31, 2023 | — | $ | — | 277,010 | $ | 145,400 | |||||||||||
August 1-31, 2023 | — | $ | — | 277,010 | $ | 145,400 | |||||||||||
September 1-30, 2023 | 91,710 | $ | 16.72 | 368,720 | $ | 143,867 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | ||||||||
ALEXANDER & BALDWIN, INC. | ||||||||
November 3, 2023 | By: /s/ Clayton K.Y. Chun | |||||||
Clayton K.Y. Chun | ||||||||
Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
November 3, 2023 | By: /s/ Anthony J. Tommasino | |||||||
Anthony J. Tommasino | ||||||||
Vice President and Controller |
8061414.v1 |
8061414.v1 |
Sincerely, | ||
/s/ Derek Kanehira | ||
Derek Kanehira | ||
Senior Vice President | ||
Dated: October 30, 2023 |
UNDERSTOOD AND AGREED: | ||
/s/ Jerrod M. Schreck | ||
JERROD M. SCHRECK |
Dated: | October 30, 2023 |
1. | You acknowledge that by reason of your position and duties with the Company and its subsidiary Grace Pacific LLC (“Grace”), you have had access to information of a confidential or sensitive nature. Subject to Section 13, you represent that you have held all such information confidential and agree that you will not use or disclose such confidential or sensitive information in the future (provided that it does not become public knowledge), except as required by subpoena or court process, in which event you agree that you will provide the Company sufficient written notice to contest such subpoena or court process; provided, however, this Section 1 does not waive your rights to enforce the terms of the Letter Agreement or this Release in an action, arbitration or proceeding. |
2. | Subject to Section 13, you agree that you will not disparage or speak negatively about the Company, its related companies including but not limited to Grace and its related companies, their respective products or services, and their respective shareholders, directors, officers, managers, members, employees, agents, partners, representatives, or investors; provided, however, this Section 2 does not (i) waive your rights to enforce the terms of the Letter Agreement or this Release in an action, arbitration or proceeding, or (ii) limit your ability to respond truthfully to any statement made by the Board (or any of its members), the Board Committees (or any of their members) or the Company’s directors or officers about you. The Company and Grace, including their respective directors, officers, managers and Board Members agree, subject to Section 13, not to disparage or speak negatively about you. |
3. | You understand and agree that, on or before the earlier of the Elimination Date (as defined in the Letter Agreement) or three days after any earlier date your employment with the Company terminates, you will turn over to such person as identified or directed by your supervisor or other Company management personnel, all files, memoranda, records and other documents, physical or personal property and keys belonging to the Company or Grace. |
4. | In exchange for, and expressly conditioned on the Company making the payments provided for in the Letter Agreement and otherwise honoring your rights under, and complying with the terms of, the Letter Agreement, and in consideration of the understandings as set forth in this Release and the Letter Agreement, and subject to the exceptions expressly provided below, you hereby release, and forever discharge the Company and its subsidiaries and affiliates (including but not limited to Grace and its subsidiaries and affiliates), and their respective directors, officers, managers, members, employees, trustees, agents, representatives, successors and assigns, from any and all claims, charges, demands, damages and causes of action of whatsoever kind (including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq., the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., the Hawaii Whistleblowers’ Protection Act, H.R.S. Chapter 378-61, et seq., the Hawaii Employment Practices Law, H.R.S. Chapter 378 and the Hawaii Civil Rights Act, H.R.S. Chapter 368), you now have, ever had or will have in the future, known or unknown, arising out of your employment with or separation from employment with the Company and Grace, other than vested benefits, if any, under Company benefit plans and any of the amounts payable to you under, or rights provided to you under, the Letter Agreement. |
The above release includes, but is not limited to, claims under all state, federal, and local laws, and Company or Grace policies and documents other than this Release. You agree that claims under the Federal Age Discrimination in Employment Act, 29 U.S.C. Sec. 621 et seq., as amended, are expressly waived. |
Notwithstanding the above, nothing in this Section 4 or this Release shall adversely impact, or preclude you from enforcing, your rights to the agreed-on payments and other rights expressly provided for or referred to in the Letter Agreement. |
a. | Nothing herein waives any claims or rights which may arise after the date of execution hereof. |
b. | You acknowledge and agree that you have twenty-one (21) days from your Elimination Date (or, if earlier, the separation of your employment by the Company other than for “Cause,” as defined in the Letter Agreement) to review and consider this Release. You may accept and sign this Release any time during this twenty-one (21) day period. However, if you do so, you are (i) voluntarily waiving your right to review this Release for twenty-one (21) days and (ii) should only do so if the Company has not induced you to waive this period by fraud, misrepresentation, threat to withdraw or alter the offer prior to the expiration of the twenty-one (21) day period. |
c. | For seven (7) days following the execution of this Release by you, you shall have the right to revoke this Release, and this Release shall not be effective until the expiration of this 7-day period. To revoke your execution of this Release, you must do so in writing to me before the expiration of this 7-day period. |
d. | You acknowledge and agree that the Company has advised you that you may consult with an attorney prior to execution of this Release, you have consulted with an attorney and you are entering into this Release freely, knowingly and voluntarily. |
e. | You acknowledge that you are receiving at least one payment to which you are not otherwise entitled in exchange for signing this Release. |
5. | In consideration for, among other terms, the above release of claims by you (subject to certain exceptions as stated above), the Company, on behalf of itself and its subsidiaries and affiliates (together with the Company, the “A&B Group”), voluntarily releases and forever discharges you from all claims that, as of the date when the Company signs this Release, the Company (or any such subsidiary or affiliate) had or claimed to have or, prior to that date, ever had or claimed to have had against you, including, without limit, any claims relating to your employment by and separation of employment with the Company, except that this release: |
a. | shall not apply to any claims against you relating to or arising out of any act of fraud, intentional misappropriation of funds, embezzlement or any other action with regard to any member of the A&B Group that constitutes a felony under any federal or state statute committed or perpetrated by you during the course of your employment with the Company or the A&B Group, |
b. | shall not apply to any claims against you relating to or arising out of any intentional misconduct or the material breach of your fiduciary duty occurring during the course of your employment with the Company or the A&B Group, |
c. | shall not apply to any claims that may not be released by the Company under applicable law, |
d. | shall not affect the Company’s rights to enforce this Release, and |
e. | shall not apply to withholding taxes due from you. |
6. | You acknowledge and represent that, other than the payments and rights provided for or referenced in the Letter Agreement (including, without limit, your ongoing D&O insurance coverage and indemnification rights), the Company has paid or provided you all salary, wages, bonuses, accrued vacation/paid time off, leave, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to you, if applicable, for services rendered. You further acknowledge and represent that you have received any statutory leave to which you were entitled or which you requested, if any, and that you did not sustain any workplace injury during your employment with the Company. |
7. | In connection with all matters relating to this Release, neither party admits that it has acted in any way unlawfully as to the other party. The releases are given for the purpose of making a full, final and amicable resolution of each party’s obligations to the other. |
8. | Any dispute regarding any aspect of the Letter Agreement or this Release or any act which allegedly has or would violate any provision of the Letter Agreement or this Release (“arbitrable dispute”) will be submitted to arbitration in Hawaii conducted by Dispute Prevention & Resolution, Inc. (“DPR”) before an experienced employment arbitrator licensed to practice law in Hawaii and selected in accordance with the rules of DPR as the exclusive remedy for such claim or dispute with the Company to pay for the arbitrator’s fees and any administrative fees assessed by DPR. Should any party to this Release hereafter institute any legal action or administrative proceeding against the other with respect to any Claim waived by this Release or to pursue any arbitrable dispute by any method other than said arbitration, the responding party, if it prevails, shall be entitled to recover from the initiating party all damages, costs, expenses, and attorneys’ fees incurred as a result of such action as allowed by Hawaii law. |
9. | Should any of the provisions herein be determined to be invalid, it is agreed that this shall not affect the enforceability of other provisions herein. The parties agree that this Release may not be amended or modified except by a written document signed by both parties. |
10. | Should either party institute any action or proceeding to enforce any provision hereof or for damages by reason of any alleged breach of any provision of this Release, or for a declaration of such party’s rights or obligations hereunder or to set aside any provision hereof, or for any other judicial remedy, each party shall pay its own attorney fees and expenses. |
11. | This Release shall be binding upon, and inure to the benefit of, the Company and Grace, its successors and/or assigns, and upon you and upon your respective heirs, administrators, representatives, executors, successors and assigns. |
12. | It is understood and agreed by both parties that this Release represents a compromise and settlement between the parties hereto, and that nothing contained in this Release shall be construed as an admission of liability by or on behalf of either party by whom liability is expressly denied. |
13. | This Release does not prohibit or restrict you, the Company, or any other person or entity from (i) initiating communications directly with, cooperating with, providing relevant information, or otherwise assisting in an investigation by (A) the U.S. Securities and Exchange Commission (“SEC”), or any other governmental, regulatory, or legislative body, or self-regulatory body, regarding a possible violation of any Federal or State law, in each case, without advance notice to the Company; or (B) the U.S. Equal Employment Opportunity Commission or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws; (ii) responding to any inquiry from any such governmental, regulatory, or legislative body or official or governmental authority; or (iii) participating, cooperating, testifying, or otherwise assisting in any governmental action, investigation, or proceeding relating to a possible violation of any such law, rule or regulation. |
14. | This Release, along with the Letter Agreement, contains the entire understanding of the parties hereto, and together, fully supersede any and all prior agreements or understandings pertaining to the subject matters of this Release except to the extent expressly referenced in this Release or the Letter Agreement. Each of the parties hereto acknowledge that no party or agent of any party has made any promise, representation or warranty whatsoever, either express or implied, not contained herein or in the Letter Agreement concerning the subject matters of this Release or the Letter Agreement to induce any other party to execute this Release, and each of the parties to this Release acknowledge that it has not executed this Release in reliance of any such promises, representations or warranties not specifically contained in this Release or the Letter Agreement. |
15. | You and the Company expressly understand and acknowledge that this Release may be pleaded as a defense to, and may be used as the basis for an attempted injunction against any action, suit, administrative or other proceeding which may be instituted, prosecuted or attempted as a result of an alleged breach of this Release by either party. |
16. | In the event you willfully violate any provision of this Release which causes the Company to suffer harm, the Company will have the right to terminate this Release without any obligation to make further payment to you. |
17. | This Release shall not be effective unless and until you execute and return one of the two originals hereof executed by the Company and the seven (7) day revocation period, as described in Section 4(c) herein, has lapsed without a revocation of this Release by you. The Company expressly agrees that it may not at any time after the Letter Agreement is signed revoke this Release or modify any of the terms hereof. |
18. | This Release shall be deemed to have been entered into in the State of Hawaii and shall be construed and interpreted in accordance with the laws of the State of Hawaii. |
Pursuant to 29 C.F.R. § 1625.22(e)(6), I hereby knowingly and voluntarily waive the twenty-one (21) day pre-execution consideration period set forth in 29 U.S.C. § 626(f)(1)(F)(i) |
By /s/ Lance K. Parker | ||||||||
Lance K. Parker | ||||||||
President and Chief Executive Officer | ||||||||
Date: | November 3, 2023 |
By /s/ Clayton K.Y. Chun | ||||||||
Clayton K.Y. Chun | ||||||||
Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
Date: | November 3, 2023 |
/s/ Lance K. Parker | |||||
Name: | Lance K. Parker | ||||
Title: | President and Chief Executive Officer | ||||
Date: | November 3, 2023 |
/s/ Clayton K.Y. Chun | |||||
Name: | Clayton K.Y. Chun | ||||
Title: | Executive Vice President, Chief Financial Officer and Treasurer | ||||
Date: | November 3, 2023 |
Total Number of S&S Citations | 0 | ||||
Mine Act § 104(b) Orders | 0 | ||||
Mine Act § 104(d) Citations and Orders | 0 | ||||
Mine Act § 110(b)(2) Violations | 0 | ||||
Mine Act § 107(a) Orders | 0 | ||||
Total Dollar Value of Proposed MSHA Assessments | Not assessed to date | ||||
Total Number of Mining Related Fatalities | 0 | ||||
Received Written Notice of Pattern of Violation under Mine Act §104(e) (yes/no) | No | ||||
Received Written Notice of Potential to Have Pattern under Mine Act §104(e) (yes/no) | No |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances (credit losses and doubtful accounts) | $ 3.1 | $ 2.5 |
Allowance for credit losses on other receivables | $ 3.7 | $ 2.7 |
Common stock authorized (in shares) | 225,000,000 | 225,000,000 |
Common stock outstanding (in shares) | 72,500,000 | 72,500,000 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.61 |
Background and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Description of Business: Alexander & Baldwin, Inc. ("A&B" or the "Company") is a fully integrated real estate investment trust ("REIT") headquartered in Honolulu, Hawai‘i, whose history in Hawai‘i dates back to 1870. Over time, the Company has evolved from a 571-acre sugar plantation on Maui to become one of Hawai‘i's premier commercial real estate companies and the owner of the largest grocery-anchored, neighborhood shopping center portfolio in the state. The Company operates in two segments: Commercial Real Estate ("CRE") and Land Operations. As of September 30, 2023, the Company's commercial real estate portfolio resides entirely in Hawai‘i and consists of 22 retail centers, 13 industrial assets and four office properties, representing a total of 3.9 million square feet of gross leasable area ("GLA"), as well as 142.0 acres of land under ground leases. Throughout this quarterly report on Form 10-Q, references to "we," "our," "us" and "our Company" refer to Alexander & Baldwin, Inc., together with its consolidated subsidiaries. Basis of Presentation: The interim condensed consolidated financial statements are unaudited. Because of the nature of the Company's operations, the results for interim periods are not necessarily indicative of results to be expected for the year. While these condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated balance sheets as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income (loss), cash flows, and equity and redeemable noncontrolling interest for each of the three years ended December 31, 2022, 2021, and 2020, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2022 ("2022 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC"). Reclassifications: Prior to December 31, 2022, the Company operated and reported on three segments: Commercial Real Estate; Land Operations; and Materials & Construction ("M&C"). During the fourth quarter of 2022, the Company's wholly-owned subsidiary, Grace Pacific LLC ("Grace Pacific") and Company-owned quarry land on Maui ("Maui Quarries") (collectively, the "Grace Disposal Group"), which made up the majority of activity in the Company’s former M&C segment, met the criteria for classification as held for sale and discontinued operations. Accordingly, the assets and liabilities associated with the Grace Disposal Group are classified as held for sale in the condensed consolidated balance sheets, its financial results are classified as discontinued operations in the condensed consolidated statements of operations and cash flows for all periods presented, and the Company’s former Materials and Construction ("M&C") segment has been eliminated. As a result of this strategic shift, the chief operating decision maker began reviewing all investments in unconsolidated affiliates together within the Land Operations segment. This change resulted in a reorganization to present the income (loss) related to one joint venture, which historically was included in the results of the former M&C segment, to now be included in the results of the Land Operations segment. All comparable information for the historical periods has been retrospectively adjusted to reflect the impact of these changes. Refer to Note 18 – Held for Sale and Discontinued Operations for additional information regarding the Grace Disposal Group, including the assets held for sale, liabilities associated with held for sale and income (loss) from discontinued operations. Unless otherwise noted, disclosures within the remaining notes to these condensed consolidated financial statements relate solely to the Company's continuing operations. Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences.
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Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting PoliciesThe Company's significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2022 Form 10-K. Changes to the Company's significant accounting policies are included herein. Recently issued accounting pronouncements In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform, establishing ASC Topic 848, and amended the standard thereafter through ASU No. 2021-01 and ASU No. 2022-06 (collectively, "ASC 848"). ASC 848 provides optional practical expedients and exceptions related to the impacts of reference rate reform that affect certain debt, leases, derivatives and other contracts if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company adopted ASU 2020-04 during the second quarter of 2023 after modifying certain debt to update the reference rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company will continue to assess the impact of the guidance and may apply other elections as applicable going forward but does not expect the application will have a material effect on its financial position or results of operations. Interest and other income (expense), net Interest and other income (expense), net for the three and nine months ended September 30, 2023 and 2022, included the following (in millions):
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Real Estate Asset Acquisitions |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Asset Acquisitions | REAL ESTATE ASSET ACQUISITIONS During the nine months ended September 30, 2023, the Company acquired one industrial commercial real estate asset for $9.5 million. A portion of the transaction was structured to qualify as a reverse like-kind exchange under Section 1031 of the Internal Revenue Code and accordingly, was acquired by a variable interest entity ("VIE") formed by an exchange accommodation titleholder using funds loaned by the Company. The Company operated the VIE pursuant to a management agreement. Furthermore, as the primary beneficiary with the ability to control the activities that most significantly impacted the VIE's economic performance and all the risks and rewards of ownership, the Company consolidated the VIE. The Company did not relinquish property to close the reverse like-kind exchange within the 180-day timeframe, as such, on October 30, 2023, the ownership of the property was conveyed to the Company in accordance with the terms of the like-kind exchange agreements and therefore is no longer a VIE. The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):
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Investments in Affiliates |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliates | Investments in AffiliatesThe Company's investments in affiliates principally consist of equity investments in limited liability companies in which the Company has the ability to exercise significant influence over the operating and financial policies of these investments. Accordingly, the Company accounts for its investments using the equity method of accounting. Operating results presented in the Company's condensed consolidated financial statements include the Company's proportionate share of net income (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2023 and 2022, is as follows (in millions):
During the nine months ended September 30, 2023 and 2022, Income (loss) related to joint ventures was $1.9 million and $2.3 million, respectively, and return on investment operating cash distributions was zero and $3.3 million, respectively.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following tables present the fair value of those assets and (liabilities) measured on a recurring basis as of September 30, 2023 and December 31, 2022, (in millions):
Derivative Financial Instruments: The Company records its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are classified as Level 2 measurements in the fair value hierarchy and are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs (refer to Note 7 – Derivative Instruments for fair value information regarding the Company's derivative instruments). Non-Recurring Fair Value Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The Company’s process for identifying and recording impairment is discussed in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2022 Form 10-K. The following table presents the fair value hierarchy and quantitative information about the significant unobservable inputs used to determine the fair value of long-lived assets held and used and assets held for sale, net for which a nonrecurring fair value adjustment was recorded (in millions):
Assets Held for Sale, net: As a result of the Grace Disposal Group's classification as held for sale as of December 31, 2022, the Company measured the disposal group at its fair value less costs to sell and recorded an impairment charge of $89.8 million for the year ended December 31, 2022. During the nine months ended September 30, 2023, the Company recorded no additional fair value adjustments related to assets and liabilities held for sale. The fair value of the Grace Disposal Group is classified as a Level 3 measurement in the fair value hierarchy because it is determined using significant unobservable inputs such as management assumptions about expected sales proceeds from third parties. Impairment of Long-lived Assets Held and Used and Finite-Lived Intangible Assets: During the year ended December 31, 2022, the Company recognized an impairment charge of $5.0 million related to parcels of conservation and agriculture zoned land on Oahu. During the nine months ended September 30, 2023, the Company did not recognize any impairment of long-lived assets held and used or finite-lived intangible assets. The Company classifies these fair value measurements as Level 3 in the fair value hierarchy because they involve significant unobservable inputs such as cash flow projections, discount rates, and management assumptions. Abandoned development costs: During the nine months ended September 30, 2023, the Company recorded an impairment charge of $0.6 million related to the abandonment of potential CRE development projects, which is presented in Impairment of assets in the Condensed Consolidated Statements of Operations. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on our condensed consolidated balance sheets include cash and cash equivalents, restricted cash, accounts and notes receivable, net and notes payable and other debt. The fair value of the Company's cash and cash equivalents, restricted cash, accounts receivable, net and short-term borrowings approximate their carrying values due to the short-term nature of the instruments, which is classified as Level 1 measurement in the fair value hierarchy. The fair value of the Company's notes receivable approximated the carrying amount of $3.3 million and $1.9 million as of September 30, 2023 and December 31, 2022, respectively. The fair value of these notes is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan-to-value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made, and is classified as a Level 3 measurement in the fair value hierarchy. At September 30, 2023, the carrying amount of the Company's notes payable and other debt was $507.6 million and the corresponding fair value was $488.3 million. At December 31, 2022, the carrying amount of the Company's notes payable and other debt was $472.2 million and the corresponding fair value was $449.2 million. The fair value of debt is calculated by discounting the future cash flows of the debt at rates based on instruments with similar risk, terms and maturities as compared to the Company's existing debt arrangements, and is classified as a Level 3 measurement in the fair value hierarchy.
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Notes Payable and Other Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Other Debt | Notes Payable and Other Debt As of September 30, 2023 and December 31, 2022, notes payable and other debt consisted of the following (dollars in millions):
On March 5, 2021, the Financial Conduct Authority announced a timeline for the phase-out of LIBOR. The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency subsequently issued a joint statement saying that banks should stop entering into new contracts with LIBOR as soon as possible but at least by December 31, 2021. As of January 1, 2022, LIBOR could only be used for legacy LIBOR obligations entered into prior to December 31, 2021, and the publication of US dollar LIBOR ceased on June 30, 2023. The Secured Overnight Financing Rate ("SOFR") and Bloomberg Short Term Bank Yield Index ("BSBY") were identified as replacements to LIBOR by the Federal Reserve-formed Alternative Reference Rates Committee. As of September 30, 2023, the Company had entered into agreements that transitioned its LIBOR-based notes payable and other debt to other acceptable benchmarks, as described below. On April 28, 2023, the Company entered into the First Amendment to the Third Amended and Restated Credit Agreement ("A&B Revolver") with Bank of America N.A., as administrative agent, First Hawaiian Bank, KeyBank National Association, Wells Fargo Bank, National Association, and other lenders party thereto, which transitioned the interest rate from LIBOR to a benchmark based on SOFR. All other terms of the agreement remain substantially unchanged. The Company entered into a note modification agreement with First Hawaiian Bank which transitioned the interest rate on the Manoa Marketplace secured note from LIBOR to a benchmark based on SOFR effective August 1, 2023. All other terms of the agreement remain substantially unchanged.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company is exposed to interest rate risk related to its variable-rate interest debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk. Cash Flow Hedges of Interest Rate Risk The Company has three interest rate swap agreements designated as cash flow hedges, whose key terms are as follows (dollars in millions):
The asset related to the interest rate swap and the forward interest rate swaps as of September 30, 2023, is presented within Prepaid expenses and other assets in the condensed consolidated balance sheets. The liability related to the forward interest rate swaps and the asset related to the interest rate swap as of December 31, 2022, are presented within Accrued and other liabilities and Prepaid expenses and other assets, respectively, in the condensed consolidated balance sheets. The changes in fair value of the cash flow hedges are recorded in Accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related variable-rate debt. The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statements of comprehensive income (loss) during the three and nine months ended September 30, 2023 and 2022, (in millions):
As of September 30, 2023, the Company expects to reclassify $2.3 million of net gains (losses) on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and other financial arrangements The Company has various financial commitments and other arrangements including standby letters of credit and bonds that are not recorded as liabilities on the Company's condensed consolidated balance sheet as of September 30, 2023: •Standby letters of credit issued by the Company's lenders under the Company's revolving credit facility totaled $1.1 million as of September 30, 2023. These letters of credit primarily relate to the Company's workers' compensation plans and if drawn upon, the Company would be obligated to reimburse the issuer. •Bonds related to the Company's real estate activities totaled $18.7 million as of September 30, 2023, and represent commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). If drawn upon, the Company would be obligated to reimburse the surety that issued the bond for the amount of the bond, reduced for the work completed to date. •Bonds related to Grace Pacific totaled $357.4 million as of September 30, 2023, and represent the face value of construction bonds issued by third party sureties (bid, performance and payment bonds). If drawn upon, the Company would be obligated to reimburse the surety that issued the bond for the amount of the bond, reduced for the work completed to date. As of September 30, 2023, the Company's maximum remaining exposure, in the event of defaults on all existing contractual construction obligations, was approximately $139.1 million. The Company also provides certain bond indemnities and guarantees of indebtedness for unconsolidated affiliates accounted for as equity method investments related to Grace Pacific. •Bond indemnities are provided for the benefit of the third-party surety in exchange for construction bonds (bid, performance and payment bonds). Under such bond indemnities, the Company and the joint venture partners agree to indemnify the surety bond issuer from all losses and expenses arising from the failure of the joint venture to complete the specified bonded construction; the Company may be obligated to reimburse the surety that issued the bond for the amount of the bond, reduced for the work completed to date if the joint venture does not perform. •Guarantees of indebtedness may be provided by the Company for the benefit of financial institutions providing credit to unconsolidated equity method investees. As of September 30, 2023, the Company had no such arrangements with third party lenders related to its unconsolidated equity method investees and no amounts outstanding. The recorded amounts of the bond indemnities and guarantee of indebtedness were not material individually or in the aggregate. Other than those described above, obligations of the Company's joint ventures do not have recourse to the Company, and the Company's "at-risk" amounts are limited to its investment. Legal proceedings and other contingencies Prior to the sale of approximately 41,000 acres of agricultural land on Maui to Mahi Pono Holdings, LLC ("Mahi Pono") in December 2018, the Company, through East Maui Irrigation Company, LLC ("EMI"), also owned approximately 16,000 acres of watershed lands in East Maui and held four water licenses to approximately 30,000 acres owned by the State of Hawai‘i in East Maui. The sale to Mahi Pono included the sale of a 50% interest in EMI (which closed February 1, 2019), and provided for the Company and Mahi Pono, through EMI, to jointly continue the existing process to secure a long-term lease from the State for delivery of irrigation water to Mahi Pono for use in Central Maui. The last of these water license agreements expired in 1986, and all four agreements were then extended as revocable permits that were renewed annually. In 2001, a request was made to the State Board of Land and Natural Resources (the "BLNR") to replace these revocable permits with a long-term water lease. Pending the completion by the BLNR of a contested case hearing it ordered to be held on the request for the long-term lease, the BLNR has kept the existing permits on a holdover basis. Three parties (Healoha Carmichael; Lezley Jacintho; and Na Moku Aupuni O Ko‘olau Hui) filed a lawsuit on April 10, 2015, (the "Initial Lawsuit") alleging that the BLNR has been renewing the revocable permits annually rather than keeping them in holdover status. The lawsuit challenged the BLNR’s decision to continue the revocable permits for calendar year 2015 and asked the court to void the revocable permits and to declare that the renewals were illegally issued without preparation of an environmental assessment ("EA"). In December 2015, the BLNR decided to reaffirm its prior decisions to keep the permits in holdover status. This decision by the BLNR was challenged by the three parties. In January 2016, the court ruled in the Initial Lawsuit that the renewals were not subject to the EA requirement, but that the BLNR lacked legal authority to keep the revocable permits in holdover status beyond one year (the "Initial Ruling"). The Initial Ruling was appealed to the Intermediate Court of Appeals ("ICA") of the State of Hawai‘i. In May 2016, while the appeal of the Initial Ruling was pending, the Hawai‘i State Legislature passed House Bill 2501, which specified that the BLNR has the legal authority to issue holdover revocable permits for the disposition of water rights for a period not to exceed three years. The governor signed this bill into law as Act 126 in June 2016. Pursuant to Act 126, the annual authorization of the existing holdover permits was sought and granted by the BLNR in December 2016, November 2017 and November 2018 for calendar years 2017, 2018, and 2019. No extension of Act 126 was approved by the Hawai‘i State Legislature in 2019. In June 2019, the ICA vacated the Initial Ruling, effectively reversing the determination that the BLNR lacked authority to keep the revocable permits in holdover status beyond one year (the "ICA Ruling"). The ICA remanded the case back to the trial court to determine whether the holdover status of the permits was both (a) "temporary" and (b) in the best interest of the State, as required by statute. The plaintiffs filed a motion with the ICA for reconsideration of its decision, which was denied on July 5, 2019. On September 30, 2019, the plaintiffs filed a request with the Supreme Court of Hawai‘i to review and reverse the ICA Ruling. On November 25, 2019, the Supreme Court of Hawai‘i granted the plaintiffs' request to review the ICA Ruling and, on May 5, 2020, oral argument was held. On October 11, 2019, the BLNR took up the renewal of all the existing water revocable permits in the state, acting under the ICA Ruling, and approved the continuation of the four East Maui water revocable permits for another one-year period through December 31, 2020. On November 13, 2020, the BLNR approved another renewal of such permits through December 31, 2021. On March 2, 2022, the Supreme Court of Hawai’i vacated the ICA’s ruling relating to the BLNR's decision to continue the revocable permits for the calendar year 2015, holding that Hawaii Revised Statutes Chapter 343 (the Hawaii Environmental Policy Act) did apply to the permits. The court remanded the matter back to the Circuit Court to determine if any exceptions would apply and, if not, how HRS Chapter 343 should be applied in light of the steps taken by A&B/EMI toward the long-term water lease. The Supreme Court of Hawai’i also determined that the BLNR had the statutory authority to continue the permits for more than one year, but required BLNR to make findings of fact and conclusions of law determining that the action would serve the best interests of the State. A&B/EMI will continue to defend against the plaintiffs’ claims on remand. In a separate matter, on December 7, 2018, a contested case request filed by the Sierra Club (contesting the BLNR's November 2018 approval of the 2019 revocable permits) was denied by the BLNR. On January 7, 2019, the Sierra Club filed a lawsuit in the circuit court of the first circuit in Hawai‘i against BLNR, A&B and EMI, seeking to invalidate the 2019 and 2020 holdovers of the revocable permits for, among other things, failure to perform an EA. The lawsuit also sought to enjoin A&B/EMI from diverting more than 25 million gallons a day until a permit or lease is properly issued by the BLNR, and for the imposition of certain conditions on the revocable permits by the BLNR. The count seeking to invalidate the revocable permits based on the failure to perform an EA was dismissed by the court, based on the ICA Ruling in the Initial Lawsuit. The Sierra Club’s lawsuit was amended to include a challenge to the BLNR’s renewal of the revocable permits for calendar year 2020. After a full trial on the merits held beginning in August of 2020, the court ruled, on April 6, 2021, against the Sierra Club on its lawsuit challenging the 2019 and 2020 revocable permits. On February 17, 2022, the Sierra Club filed its notice of appeal challenging the decision on the August 2020 trial. The court separately considered a lawsuit filed by the Sierra Club appealing the BLNR’s decision to deny it a contested case hearing on the 2021 revocable permits, which were granted by the BLNR on or about November 13, 2020. In that case, on May 28, 2021, the court issued an interim decision that the Sierra Club’s due process rights were violated, ordered the BLNR to hold a contested case hearing on the 2021 permits, and that the permits would be vacated. On July 30, 2021, the court modified its ruling to say that the permits would not be invalidated, but left in place pending the outcome of the contested case hearing. The contested case hearing was held by the BLNR in December 2021 to address the continuation of the revocable permits for both calendar years 2021 and 2022 and BLNR issued a decision on June 30, 2022. On December 27, 2021, while BLNR’s decision in the contested case hearing was pending, the court further modified its ruling to allow the permits to remain in place until the earlier of May 1, 2022, the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022, or further order of the court. On April 26, 2022, the court orally granted an extension of the May 1, 2022 deadline to the earlier of June 15, 2022, or the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022, or as may be further ordered by the court. On June 1, 2022, the court granted an extension of the June 15, 2022 deadline to the earlier of July 15, 2022 or the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022 or as may be further ordered by the court. On June 30, 2022, the BLNR issued its final decision on the contested case hearing on the permits for calendar years 2021 and 2022, approving the continuation of the permits through the end of calendar year 2022. The Sierra Club filed a notice of appeal of that decision to the Circuit Court of the First Circuit in Hawai‘i and on March 31, 2023, the Circuit Court entered its Order on Appeal dismissing the Sierra Club's appeal as moot. The Company and the BLNR also appealed the court’s determination that the Sierra Club was entitled to a contested case hearing on the 2021 revocable permits. On November 10, 2022, the BLNR voted to continue the revocable permits for calendar year 2023 and, at that same meeting, denied the Sierra Club’s oral request for a contested case hearing. The Sierra Club subsequently submitted a written request to the BLNR for a contested case hearing on the continuation of the revocable permits, which the BLNR denied on December 9, 2022. On November 29, 2022, the Sierra Club filed an appeal of BLNR’s decisions to deny its oral request for a contested case hearing and to continue the revocable permits for 2023 and on December 15, 2022, the Sierra Club amended its appeal to also challenge the BLNR’s denial of its written request for a contested case hearing. On June 16, 2023, the Circuit Court entered its Decision on Appeal; and Interim Modification of Permits Pursuant to HRS 91-14(g) in which the court concluded that the Sierra Club was again entitled to a contested case hearing on the continuation of the revocable permits for calendar year 2023. The court also modified BLNR’s decision to continue the revocable permits by reducing the cap to 31.50 million gallons per day. A&B/EMI filed motions to increase the modified cap and for leave to take an immediate appeal. On August 11, 2023, the court entered its order denying A&B/EMI’s motion for leave to take an immediate appeal. On September 8, 2023, the court entered its ruling denying without prejudice A&B/EMI’s motion to increase the modified cap. On August 17, 2023, Sierra Club filed its First Motion to Modify Permits, asking the court to impose conditions on the revocable permits requiring A&B/EMI to determine the water needs of the County of Maui Fire Department and to line one reservoir. The court has not yet ruled on that motion. In connection with A&B’s obligation to continue the existing process to secure a long-term water lease from the State, A&B and EMI will defend against the remaining claims made by the Sierra Club. In addition to the litigation described above, the Company is a party to, or may be contingently liable in connection with, other legal actions arising in the normal conduct of its businesses. While the outcomes of such litigation and claims cannot be predicted with certainty, in the opinion of management after consultation with counsel, the reasonably possible losses would not have a material effect on the Company's consolidated financial statements as a whole. Further note that certain of the Company's properties and assets may become the subject of other types of claims and assessments at various times (e.g., environmental matters based on normal operations of such assets). Depending on the facts and circumstances surrounding such potential claims and assessments, the Company records an accrual if it is deemed probable that a liability has been incurred and the amount of loss can be reasonably estimated/valued as of the date of the financial statements.
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Revenue and Contract Balances |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Contract Balances | Revenue and Contract Balances The Company generates revenue through its Commercial Real Estate and Land Operations segments. Through its Commercial Real Estate segment, the Company owns and operates a portfolio of commercial real estate properties and generates income (i.e., revenue) as a lessor through leases of such assets. Refer to Note 10 – Leases - The Company as a Lessor for further discussion of lessor income recognition. The Land Operations segment generates revenue from contracts with customers. The Company further disaggregates revenue from contracts with customers by revenue type when appropriate if the Company believes disaggregation best depicts how the nature, amount, timing, and uncertainty of the Company's revenue and cash flows are affected by economic factors. Revenue by type for the three and nine months ended September 30, 2023 and 2022, was as follows (in millions):
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in millions): For the three and nine months ended September 30, 2023, the Company did not recognize any revenue related to the Company's variable consideration and other deferred revenue reported as of December 31, 2022.
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Leases - The Company as a Lessor |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases - The Company as a Lessor | Leases - The Company as a Lessor The Company leases real estate property to tenants under operating leases. Such activity is primarily composed of operating leases within its CRE segment. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2023, and December 31, 2022, were as follows (in millions):
Total rental income (i.e., revenue) under these operating leases during the three and nine months ended September 30, 2023 and 2022, relating to lease payments and variable lease payments were as follows (in millions):
Contractual future lease payments to be received on non-cancelable operating leases as of September 30, 2023, were as follows (in millions):
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Leases - The Company as a Lessee |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases - The Company as a Lessee | Leases - The Company as a Lessee There have been no material changes from the Company's leasing activities as a lessee described in Note 13 to the consolidated financial statements included in Item 8 of the Company's 2022 Form 10-K. The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2023 and 2022, (in millions):
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Leases - The Company as a Lessee | Leases - The Company as a Lessee There have been no material changes from the Company's leasing activities as a lessee described in Note 13 to the consolidated financial statements included in Item 8 of the Company's 2022 Form 10-K. The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2023 and 2022, (in millions):
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Share-Based Payment Awards |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Awards | Share-based Payment Awards The 2022 Incentive Compensation Plan ("2022 Plan") allows for the granting of stock options, stock appreciation rights, stock awards, restricted stock units, dividend equivalent rights, and other awards. The shares of common stock authorized to be issued under the 2022 Plan are to be drawn from the shares of the Company's authorized but unissued common stock or from shares of its common stock that the Company acquired, including shares purchased on the open market or private transactions. During the nine months ended September 30, 2023, the Company granted approximately 403,400 of restricted stock unit awards with a weighted average grant date fair value of $21.82. During the nine months ended September 30, 2022, the Company granted approximately 306,300 of restricted stock unit awards with a weighted average grant date fair value of $25.56. The fair value of the Company's time-based awards is determined using the Company's stock price on the date of grant. The fair value of the Company's market-based performance awards is estimated using the Company's stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted-average assumptions:
The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions):
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans During 2022, the Company completed the termination of its funded single-employer defined benefit pension plans that covered certain non-bargaining unit employees and bargaining unit employees of the Company and transferred the life insurance benefits for retirees as of June 30, 2022, to an insurance company. The Company continues to maintain its plans that provide retiree health care and the remaining life insurance benefits to certain salaried and hourly employees. Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2023 and 2022, are shown below (in millions):
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has been organized and operates in a manner that enables it to qualify, and believes it will continue to qualify, as a REIT for federal income tax purposes. The Company’s effective tax rate for the nine months ended September 30, 2023, differed from the effective tax rate for the same period in 2022 primarily due to the tax benefit recognized in 2022 on the termination of the Company's defined benefit pension plans. As of September 30, 2023, tax years 2019 and later are open to audit by the tax authorities. The Company believes the result of any potential audits will not have a material adverse effect on its results of operations, financial condition, or liquidity.
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Earnings Per Share (“EPS”) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (“EPS”) | Earnings Per Share ("EPS")Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards as well as adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued. The following table provides a reconciliation of income (loss) from continuing operations to net income (loss) from continuing operations available to A&B common shareholders and net income (loss) available to A&B common shareholders (in millions):
The number of shares used to compute basic and diluted earnings per share is as follows (in millions):
The number of anti-dilutive securities, excluded from the calculation of diluted earnings per common share, consisted of the following (in millions):
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) For the nine months ended September 30, 2023, other comprehensive income (loss) principally includes unrealized interest rate hedging gains and losses and associated reclassification adjustments to interest expense. The components of Accumulated other comprehensive income (loss), net of taxes, were as follows as of September 30, 2023 and December 31, 2022, (in millions):
The changes in Accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2023, were as follows (in millions, net of taxes):
1 Amounts reclassified from Accumulated other comprehensive income (loss) related to interest rate swap settlements are presented as an adjustment to Interest expense in the Condensed Consolidated Statements of Operations. Amounts reclassified from Accumulated other comprehensive income (loss) related to employee benefit plan items are presented as part of Interest and other income (expense), net in the Condensed Consolidated Statements of Operations.
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Segment Results |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | Segment Results Operating segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (its Chief Executive Officer) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company operates and reports on two segments: Commercial Real Estate and Land Operations. Reportable segment information for the three and nine months ended September 30, 2023 and 2022, is summarized below (in millions):
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Held for Sale and Discontinued Operations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for Sale and Discontinued Operations | Held for Sale and Discontinued Operations Assets and liabilities associated with the Grace Disposal Group are presented in the Condensed Consolidated Balance Sheets as Assets held for sale and Liabilities associated with assets held for sale, respectively, and the results of operations are presented as discontinued operations in the Condensed Consolidated Statements of Operations and Cash Flows. While the ultimate outcome of the plan to dispose of the Grace Disposal Group is neither certain nor guaranteed, the Company intends to conduct the respective businesses in the ordinary course in substantially the same manner in which it previously has been conducted until a sale occurs. The following table summarizes income (loss) from discontinued operations included in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022, (in millions):
The assets and liabilities held for sale included in the Condensed Consolidated Balance Sheets as of September 30, 2023 and 2022, were as follows (in millions):
During the nine months ended September 30, 2023, the Company recorded no additional fair value adjustments related to assets and liabilities held for sale. Related Party Transactions within Discontinued Operations and Held for Sale: The Company enters into contracts in the ordinary course of business, as a supplier, with affiliate entities that require accounting under the equity method due to the Company's financial interests in such entities and also with affiliate parties that are members in entities in which the Company also is a member and holds a controlling financial interest. Related to the periods during which such relationships existed, revenues earned from transactions with such affiliates were $5.1 million and $9.0 million for the three months ended September 30, 2023 and 2022, respectively, and $13.2 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. Expenses recognized from transactions with such affiliates were $0.9 million and $1.6 million for the three months ended September 30, 2023 and 2022, respectively, and $4.4 million and $4.0 million for the nine months ended September 30, 2023 and 2022, respectively. Receivables from these affiliates were $1.3 million and $6.9 million as of September 30, 2023 and December 31, 2022, respectively. Amounts due to these affiliates were $0.2 million and $0.4 million as of September 30, 2023 and December 31, 2022, respectively.
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Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The interim condensed consolidated financial statements are unaudited. Because of the nature of the Company's operations, the results for interim periods are not necessarily indicative of results to be expected for the year. While these condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated balance sheets as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income (loss), cash flows, and equity and redeemable noncontrolling interest for each of the three years ended December 31, 2022, 2021, and 2020, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2022 ("2022 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC"). |
Reclassifications | Reclassifications: Prior to December 31, 2022, the Company operated and reported on three segments: Commercial Real Estate; Land Operations; and Materials & Construction ("M&C"). During the fourth quarter of 2022, the Company's wholly-owned subsidiary, Grace Pacific LLC ("Grace Pacific") and Company-owned quarry land on Maui ("Maui Quarries") (collectively, the "Grace Disposal Group"), which made up the majority of activity in the Company’s former M&C segment, met the criteria for classification as held for sale and discontinued operations. Accordingly, the assets and liabilities associated with the Grace Disposal Group are classified as held for sale in the condensed consolidated balance sheets, its financial results are classified as discontinued operations in the condensed consolidated statements of operations and cash flows for all periods presented, and the Company’s former Materials and Construction ("M&C") segment has been eliminated. As a result of this strategic shift, the chief operating decision maker began reviewing all investments in unconsolidated affiliates together within the Land Operations segment. This change resulted in a reorganization to present the income (loss) related to one joint venture, which historically was included in the results of the former M&C segment, to now be included in the results of the Land Operations segment. All comparable information for the historical periods has been retrospectively adjusted to reflect the impact of these changes. Refer to Note 18 – Held for Sale and Discontinued Operations for additional information regarding the Grace Disposal Group, including the assets held for sale, liabilities associated with held for sale and income (loss) from discontinued operations. Unless otherwise noted, disclosures within the remaining notes to these condensed consolidated financial statements relate solely to the Company's continuing operations. |
Rounding | Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform, establishing ASC Topic 848, and amended the standard thereafter through ASU No. 2021-01 and ASU No. 2022-06 (collectively, "ASC 848"). ASC 848 provides optional practical expedients and exceptions related to the impacts of reference rate reform that affect certain debt, leases, derivatives and other contracts if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company adopted ASU 2020-04 during the second quarter of 2023 after modifying certain debt to update the reference rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company will continue to assess the impact of the guidance and may apply other elections as applicable going forward but does not expect the application will have a material effect on its financial position or results of operations.
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Significant Accounting Policies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Other Income (Expense), Net | Interest and other income (expense), net for the three and nine months ended September 30, 2023 and 2022, included the following (in millions):
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Real Estate Asset Acquisitions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):
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Investments in Affiliates (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information for Equity Method Investments | Operating results presented in the Company's condensed consolidated financial statements include the Company's proportionate share of net income (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2023 and 2022, is as follows (in millions):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value of those assets and (liabilities) measured on a recurring basis as of September 30, 2023 and December 31, 2022, (in millions):
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Schedule of Fair Value of the Long-Lived Assets Held-for-sale | The following table presents the fair value hierarchy and quantitative information about the significant unobservable inputs used to determine the fair value of long-lived assets held and used and assets held for sale, net for which a nonrecurring fair value adjustment was recorded (in millions):
|
Notes Payable and Other Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable and Other Debt | As of September 30, 2023 and December 31, 2022, notes payable and other debt consisted of the following (dollars in millions):
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedges of Interest Rate Swaps | The Company has three interest rate swap agreements designated as cash flow hedges, whose key terms are as follows (dollars in millions):
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Schedule of Derivative Instruments in Consolidated Statements of Comprehensive Income (Loss) | The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statements of comprehensive income (loss) during the three and nine months ended September 30, 2023 and 2022, (in millions):
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Revenue and Contract Balances (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | Revenue by type for the three and nine months ended September 30, 2023 and 2022, was as follows (in millions):
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Schedule of Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in millions):
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Leases - The Company as a Lessor (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Historical Cost, and Accumulated Depreciation on Leased Property | The historical cost of, and accumulated depreciation on, leased property as of September 30, 2023, and December 31, 2022, were as follows (in millions):
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Schedule of Total Rental Income Under Operating Leases | Total rental income (i.e., revenue) under these operating leases during the three and nine months ended September 30, 2023 and 2022, relating to lease payments and variable lease payments were as follows (in millions):
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Schedule of Future Minimum Rentals on Non-cancelable Operating Leases | Contractual future lease payments to be received on non-cancelable operating leases as of September 30, 2023, were as follows (in millions):
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Leases - The Company as a Lessee (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Other Amounts Relating to Finance and Operating Leases | The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2023 and 2022, (in millions):
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Share-Based Payment Awards (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assumptions of Market-based Awards | The fair value of the Company's market-based performance awards is estimated using the Company's stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted-average assumptions:
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Schedule of Compensation Cost Related to Share-Based Payments | The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions):
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss | Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2023 and 2022, are shown below (in millions):
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Earnings Per Share (“EPS”) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Income and Computation of Earnings per Share | The following table provides a reconciliation of income (loss) from continuing operations to net income (loss) from continuing operations available to A&B common shareholders and net income (loss) available to A&B common shareholders (in millions):
The number of shares used to compute basic and diluted earnings per share is as follows (in millions):
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Schedule of Antidilutive Securities Outstanding | The number of anti-dilutive securities, excluded from the calculation of diluted earnings per common share, consisted of the following (in millions):
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of Accumulated other comprehensive income (loss), net of taxes, were as follows as of September 30, 2023 and December 31, 2022, (in millions):
The changes in Accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2023, were as follows (in millions, net of taxes):
1 Amounts reclassified from Accumulated other comprehensive income (loss) related to interest rate swap settlements are presented as an adjustment to Interest expense in the Condensed Consolidated Statements of Operations. Amounts reclassified from Accumulated other comprehensive income (loss) related to employee benefit plan items are presented as part of Interest and other income (expense), net in the Condensed Consolidated Statements of Operations.
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Segment Results (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Segment Information | Reportable segment information for the three and nine months ended September 30, 2023 and 2022, is summarized below (in millions):
|
Held for Sale and Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups Including Discontinued Operations | The following table summarizes income (loss) from discontinued operations included in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022, (in millions):
The assets and liabilities held for sale included in the Condensed Consolidated Balance Sheets as of September 30, 2023 and 2022, were as follows (in millions):
|
Background and Basis of Presentation (Details) ft² in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
a
ft²
segment
property
|
Dec. 31, 2022
segment
|
|
Property, Plant and Equipment [Line Items] | ||
Number of operating segments | segment | 2 | 3 |
Number of reportable segments | segment | 2 | 3 |
Gross leasable area (in sqft) | ft² | 3.9 | |
Area of ground leases owned (acres) | a | 142.0 | |
Retail centers | ||
Property, Plant and Equipment [Line Items] | ||
Number of properties | 22 | |
Industrial assets | ||
Property, Plant and Equipment [Line Items] | ||
Number of properties | 13 | |
Office properties | ||
Property, Plant and Equipment [Line Items] | ||
Number of properties | 4 |
Significant Accounting Policies (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Accounting Policies [Abstract] | ||||
Interest income | $ 0.1 | $ 0.0 | $ 0.3 | $ 0.2 |
Pension and post-retirement benefit (expense) | 0.1 | (0.1) | (0.2) | (0.6) |
Other income (expense), net | (0.1) | (0.1) | (0.1) | 0.5 |
Interest and other income (expense), net | $ 0.1 | $ (0.2) | $ 0.0 | $ 0.1 |
Real Estate Asset Acquisitions (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
property
|
Dec. 31, 2022
USD ($)
|
|
Assets acquired: | ||
Total assets | $ 1,785.9 | $ 1,787.3 |
In-place lease | ||
Assets acquired: | ||
Weighted-average amortization period of in-place/favorable leases | 10 years | |
Real Estate Acquisitions | ||
Real Estate [Line Items] | ||
Number of commercial real estate assets purchased | property | 1 | |
Purchase consideration | $ 9.5 | |
Assets acquired: | ||
Land | 3.0 | |
Property and improvements | 6.1 | |
In-place leases | 0.4 | |
Total assets | $ 9.5 |
Investments in Affiliates - Schedule of Financial Information for Equity Method Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement | ||||
Revenues | $ 52.5 | $ 49.4 | $ 156.0 | $ 159.7 |
Operating costs and expenses | 35.5 | 38.8 | 109.7 | 119.7 |
Income (loss) from continuing operations | 12.0 | 5.8 | 32.3 | 2.8 |
Net income (loss) | 14.6 | 6.4 | 33.3 | 21.0 |
Equity Method Investments | ||||
Income Statement | ||||
Revenues | 41.4 | 37.0 | 120.0 | 97.8 |
Operating costs and expenses | 36.1 | 31.8 | 106.2 | 89.5 |
Gross Profit (Loss) | 5.3 | 5.2 | 13.8 | 8.3 |
Income (loss) from continuing operations | 1.1 | 2.0 | 0.3 | (2.7) |
Net income (loss) | $ 1.1 | $ 2.3 | $ 0.3 | $ 2.9 |
Investments in Affiliates - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Income (loss) related to joint ventures | $ 1.0 | $ 0.8 | $ 1.9 | $ 2.3 |
Dividends and distributions from unconsolidated affiliates | $ 0.0 | $ 3.3 |
Derivative Instruments - Schedule of Cash Flow Hedges of Interest Rate Swaps (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Millions |
Sep. 30, 2023
USD ($)
swap_agreement
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate swap agreements | swap_agreement | 3 | |
Interest Rate Swap, Effective 04/07/2016 | ||
Derivative [Line Items] | ||
Fixed interest rate (percent) | 3.14% | |
Notional amount | $ 53.1 | |
Fair value of interest rate derivative asset | $ 6.2 | $ 5.5 |
Forward Interest Rate Swap, Effective May 1,2024 | ||
Derivative [Line Items] | ||
Fixed interest rate (percent) | 4.88% | |
Notional amount | $ 57.0 | |
Fair value of interest rate derivative asset | $ 1.7 | |
Fair value of interest rate swap liability | (1.3) | |
Forward Interest Rate Swap, Effective December 9, 2024 | ||
Derivative [Line Items] | ||
Fixed interest rate (percent) | 4.83% | |
Notional amount | $ 73.0 | |
Fair value of interest rate derivative asset | $ 1.7 | |
Fair value of interest rate swap liability | $ (1.5) |
Revenue and Contract Balances - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 52.5 | $ 49.4 | $ 156.0 | $ 159.7 |
Commercial Real Estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Commercial Real Estate | 48.2 | 46.5 | 145.6 | 138.8 |
Land Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Land Operations | 4.3 | 2.9 | 10.4 | 20.9 |
Land Operations | Development sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Land Operations | 0.0 | 0.0 | 0.0 | 6.3 |
Land Operations | Unimproved/other property sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Land Operations | 4.0 | 0.0 | 8.1 | 2.0 |
Land Operations | Other operating revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Land Operations | $ 0.3 | $ 2.9 | $ 2.3 | $ 12.6 |
Revenue and Contract Balances - Schedule of Contract Balances (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 6.7 | $ 8.6 |
Allowances (credit losses and doubtful accounts) | (3.1) | (2.5) |
Accounts receivable, net of allowance for credit losses and allowance for doubtful accounts | 3.6 | 6.1 |
Variable consideration | 62.0 | 62.0 |
Prepaid rent | 7.4 | 4.4 |
Other deferred revenue | 2.5 | 2.4 |
Deferred revenue | $ 71.9 | $ 68.8 |
Revenue and Contract Balances - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 0 | $ 0 |
Leases - The Company as a Lessor - Schedule of Historical Cost and Accumulated Depreciation of Leased Property (Details) - Leased property - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessor, Lease, Description [Line Items] | ||
Leased property - real estate | $ 1,597.4 | $ 1,572.0 |
Less: accumulated depreciation | (222.6) | (201.8) |
Property under operating leases - net | $ 1,374.8 | $ 1,370.2 |
Leases - The Company as a Lessor - Schedule of Total Rental Income Under Operating Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Lease payments | $ 33.4 | $ 32.8 | $ 100.6 | $ 96.6 |
Variable lease payments | 15.3 | 14.2 | 46.3 | 44.4 |
Revenues deemed uncollectible, net | (0.3) | (0.2) | (0.8) | 0.5 |
Total rental income | $ 48.4 | $ 46.8 | $ 146.1 | $ 141.5 |
Leases - The Company as a Lessor - Schedule of Future Minimum Rentals on Non-cancelable Operating Leases as Lessor (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Future minimum rentals on non-cancelable leases | |
2023 | $ 32.8 |
2024 | 126.6 |
2025 | 110.5 |
2026 | 96.8 |
2027 | 85.1 |
2028 | 70.9 |
Thereafter | 552.3 |
Total future lease payments to be received | $ 1,075.0 |
Leases - The Company as a Lessee (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 0.4 | $ 0.7 | $ 1.5 | $ 2.0 |
Amortization of right-of-use assets | 0.0 | 0.0 | 0.1 | 0.0 |
Interest on lease liabilities | 0.1 | 0.0 | 0.1 | 0.0 |
Total lease cost | $ 0.5 | $ 0.7 | $ 1.7 | $ 2.0 |
Share-Based Payment Awards - Narrative (Details) - 2022 Plan - Time-based and market-based restricted stock units - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 403,400 | 306,300 |
Granted (in dollars per share) | $ 21.82 | $ 25.56 |
Share-Based Payment Awards - Schedule of Fair Value Assumptions of Market-based Awards (Details) - Time-based and market-based restricted stock units - 2022 Plan - Time-Based Vesting |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of A&B common stock, minimum (percent) | 31.80% | |
Volatility of A&B common stock, maximum (percent) | 49.10% | |
Volatility of A&B common stock (percent) | 47.70% | |
Average volatility of peer companies, minimum (percent) | 33.60% | |
Average volatility of peer companies, maximum (percent) | 48.20% | |
Average volatility of peer companies (percent) | 49.50% | |
Risk-free interest rate, minimum (percent) | 3.80% | |
Risk-free interest rate, maximum (percent) | 4.50% | |
Risk-free interest rate (percent) | 1.40% |
Share-Based Payment Awards - Schedule of Compensation Cost related to Share-based Payments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Time-based and market-based restricted stock units | 2022 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Time-based and market-based restricted stock units | $ 1.0 | $ 1.6 | $ 5.3 | $ 4.6 |
Employee Benefit Plans (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Components of Net Periodic Benefit Cost | ||||
Pension termination | $ 0.0 | $ 76.9 | ||
Pension and Post-retirement Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 0.1 | $ 0.1 | 0.1 | 1.5 |
Interest cost | 0.1 | 0.0 | 0.4 | 0.9 |
Expected return on plan assets | 0.0 | 0.0 | 0.0 | (2.5) |
Amortization of net loss | 0.0 | 0.1 | 0.0 | 1.9 |
Amortization of prior service credit | 0.0 | 0.0 | 0.0 | 0.1 |
Pension termination | 0.0 | 0.0 | 0.0 | 76.9 |
Net periodic benefit cost | $ 0.2 | $ 0.2 | $ 0.5 | $ 78.8 |
Earnings Per Share (“EPS”) - Schedule of Antidilutive Securities Outstanding (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Number of anti-dilutive securities (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Segment Results - Narrative (Details) - segment |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 3 |
Number of reportable segments | 2 | 3 |
Held for Sale and Discontinued Operations - Related Party Transactions within Discontinued Operations and Held for Sale (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues | $ 52.5 | $ 49.4 | $ 156.0 | $ 159.7 | |
Other receivables | 7.3 | 7.3 | $ 6.9 | ||
Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of assets | 0.0 | ||||
Affiliated Entity | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues | 5.1 | 9.0 | 13.2 | 12.9 | |
Expenses from transactions | 0.9 | $ 1.6 | 4.4 | $ 4.0 | |
Other receivables | 1.3 | 1.3 | 6.9 | ||
Amounts due to affiliates | $ 0.2 | $ 0.2 | $ 0.4 |
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