Alexander & Baldwin, Inc.

Third quarter 2025 portfolio NOI was $32.8 million, up 1.2% year over year, and same-store NOI was $31.9 million, up 60 basis points year over year. CRE and corporate FFO per share was $0.30, up $0.02 or 7.1% from the prior year quarter; total company FFO was $0.29 per share. G&A was $6.1 million, about $1.4 million lower year over year, while net debt to adjusted EBITDA was 3.5x, total liquidity was $284.3 million, 89% of debt was fixed rate, and the weighted average interest rate was 4.7%. For 2025, management reaffirmed same-store NOI growth guidance of 3.4% to 3.8%, and raised CRE and corporate FFO guidance to $1.13-$1.17 per share and total FFO guidance to $1.36-$1.41 per share. The company also said the Kaka'ako Commerce Center sale is expected to close in Q1 2026 and generate $24.1 million of proceeds for a 10/31 exchange.

Lance Parker said the quarter exceeded expectations and that the company is making steady progress on both internal and external growth. He highlighted leasing strength, including an 11% lease spread on a Kailua Town renewal, and pointed to development projects at Komohana Industrial Park and Maui Business Park as future NOI drivers. His tone was upbeat and confident, stressing that this was the third straight quarter of raised guidance and that the portfolio and growth pipeline are performing well.

Clayton Chun emphasized the specific drivers behind the quarter: higher base rent, lower G&A, and higher portfolio NOI. He noted that same-store NOI was held back by earlier move-outs, one-time 2024 recoveries, and isolated bad debt, while G&A was $6.1 million and full-year G&A is expected to be flat to $0.01 per share lower versus 2024. He also outlined balance-sheet metrics of $284.3 million in liquidity, 3.5x net debt to adjusted EBITDA, 89% fixed-rate debt, and a 4.7% weighted average interest rate, and he said the guidance raise was driven primarily by lower-than-expected interest expense in Q3.

Analysts focused on when the $6.4 million of SNO would become economic, and management said normal SNO typically takes 9 to 12 months, with the Maui project expected in Q1 2026 and Komohana more toward Q4 2026 or Q1 2027. They also asked about the $24.1 million Kaka'ako sale proceeds, and management said the reinvestment property has not yet been identified but they expect enough time before the Q1 2026 closing. Other questions centered on G&A, where Clayton said fourth-quarter costs will likely rise to around $9 million due to timing items and transaction-related costs, and on acquisition competition, where Lance said the market is opening up and that local knowledge gives A&B an edge.