The following is a summary of the Alexander & Baldwin, Inc. (ALEX) Q2 2024 Earnings Call Transcript:
Financial Performance:
Net income available to shareholders was $9.1 million, or $0.13 per diluted share.
Income from continuing operations available to shareholders increased by 8% to $11.7 million, or $0.16 per diluted share.
Total company FFO was $20.6 million, or $0.28 per diluted share, a slight increase from $19.8 million, or $0.27 per diluted share, year-over-year.
Adjusted FFO was $16.9 million, or $0.23 per diluted share, showing a decrease compared to $18 million, or $0.25 per diluted share in the previous year.
Business Progress:
Total NOI grew by 1.1%, with same-store NOI excluding collections of prior year reserves growing by 1.7%.
Executed 47 leases in the improved property portfolio with blended spreads of 7.3%.
pre-construction work progressed at Maui Business Park with construction expected to begin in early 2025, anticipating $1 million of additional ABR.
Five photovoltaic projects are being developed which are expected to add between $400,000 and $600,000 of incremental NOI in the next 18 months.
Closed the sale of 81 acres of non-core land in July at a price of $10.5 million as part of efforts to streamline business and cost structure.
Opportunities:
The unemployment rate in Hawaii was 2.9%, compared to the national average of 4.1%, indicating robust local economic conditions.
Although May year-to-date visitor arrivals were down 4.1% due to the Maui wildfires, foot traffic at retail centers grew by 3.3%, highlighting recovery potential.
Management anticipates being opportunistic with capital recycling to make accretive acquisitions, considering improvements in the investment market.
Risks:
The ongoing impact of the Maui wildfires saw visitor arrivals down by almost 25% on the island, indicating potential prolonged challenges for tourism-centric businesses.
Fluctuations in quarterly results as experienced this quarter due to structural portfolio changes, such as the renewal of the Windward City Shopping Center ground lease.
More details: Alexander & Baldwin Inc IR
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