HONOLULU, Nov. 2, 2023
/PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE: ALEX)
("A&B" or "Company"), a Hawai'i-based company focused on
owning, operating, and developing high-quality commercial real
estate in Hawai'i, today announced net income available to A&B
common shareholders of $14.6 million,
or $0.20 per diluted share, and
Commercial Real Estate (CRE) operating profit of $20.6 million for the third quarter of 2023.
Quarterly Highlights for Q3 2023
- Nareit-defined Funds From Operations ("FFO") of $21.1 million, or $0.29 per diluted share / Core FFO of
$21.8 million, or $0.30 per diluted share
- CRE Same-Store Net Operating Income ("NOI") growth and CRE
Same-Store NOI growth excluding collections of previously reserved
amounts of 6.3%
- Leased occupancy as of September 30, 2023 was 94.6%
- Comparable new and renewal leasing spreads for the improved
portfolio were 5.5% and 12.3%, respectively
Lance Parker, president and chief
executive officer, stated: "In the third quarter, our commercial
real estate portfolio continued to perform well. CRE revenue
increased 3.7% over the same quarter in 2022, and CRE Same-Store
NOI increased by 6.3%. Total leased occupancy ticked up from last
quarter to 94.6%, and we continue to see robust leasing demand for
our high-quality retail and industrial properties, with blended
leasing spreads for the quarter at 11.2%."
"It has been nearly three months since the devastating wildfires
in Lahaina on the island of
Maui. The tragedy hits close to
our hearts with losses that include lives, homes, and livelihoods.
Our thoughts are with those who were impacted. I am grateful that
our employees and assets on the island were safe, and commend our
team and other members of the community for their immediate
response to support the people of Maui."
Financial Results for Q3 2023
- Net income available to A&B common shareholders and
diluted earnings per share available to A&B shareholders for
the third quarter of 2023 were $14.6
million and $0.20 per diluted
share, respectively, compared to $6.3
million and $0.09 per diluted
share in the same quarter of 2022.
- Income from continuing operations available to A&B
shareholders was $12.0 million,
or $0.16 per diluted share, compared
to $5.7 million, or $0.08 per diluted share, in the same quarter of
2022.
- FFO and FFO per-diluted share for the third quarter of 2023
were $21.1 million and $0.29 per diluted share, respectively, compared
to $14.7 million and $0.20 per diluted share in the same quarter of
2022.
- Core FFO and Core FFO per-diluted share for the third quarter
of 2023 were $21.8 million and
$0.30 per diluted share,
respectively, compared to $18.7
million and $0.26 per diluted
share in the same quarter of 2022.
CRE Highlights for Q3 2023
- CRE operating revenue increased by $1.7
million, or 3.7%, to $48.2
million, as compared to $46.5
million in the same quarter of 2022.
- CRE operating profit increased by $0.3
million, or 1.5%, to $20.6 million, as compared to $20.3 million in the same quarter of
2022.
- CRE NOI increased by
$2.0 million, or 6.9%, to
$31.0 million, as compared to
$29.0 million in the same quarter of
2022.
- CRE Same-Store NOI increased by $1.8
million, or 6.3%, to $30.8
million as compared to $29.0
million in the same quarter of 2022. Collections of
previously reserved amounts in the third quarter of 2023 were
$0.5 million compared to $0.4 million in the same quarter of 2022.
- During the third quarter of 2023, the Company executed a total
of 62 improved-property leases, covering approximately 149,900
square feet of gross leasable area ("GLA").
- Comparable leasing spreads in our improved property portfolio
were 11.2% for the third quarter of 2023, 4.1% for industrial
spaces and 13.8% for retail spaces.
- Significant leases executed in our improved property
portfolio during the third quarter of 2023 included:
- Fourteen leases related to properties located in Kailua, including Aikahi Park Shopping Center,
totaling approximately 25,000 square feet of GLA and $0.9 million of ABR.
- Four leases at Queens' Marketplace totaling approximately
12,400 square feet of GLA and $0.4
million of ABR.
- Overall leased occupancy was 94.6% as of September 30, 2023 and September 30,
2022.
- Overall Same-Store leased occupancy was 94.5% as of
September 30, 2023, a decrease of 10
basis point compared to September 30, 2022 .
- Both leased and Same-Store leased occupancy in the retail
portfolio were 94.0% as of September 30,
2023, each reflecting an increase of 70 basis points
compared to September 30, 2022.
- Leased occupancy in the industrial portfolio was 96.8% as of
September 30, 2023, a decrease of 120
basis points compared to September 30, 2022. Same-Store leased
occupancy in the industrial portfolio was 96.7% as of September 30, 2023, a decrease of 130 basis
points compared to September 30, 2022.
CRE Investment Activity
- The Manoa Marketplace redevelopment project is substantially
complete with only punch list items remaining. The project is
expected to generate a stabilized yield on total estimated project
costs in the range of 8.0% to 8.5%.
Land Operations
- Land Operations operating profit was $2.9 million for the quarter ended
September 30, 2023, as compared to an operating loss of
$1.3 million for the quarter ended
September 30, 2022. Results in the quarter ended
September 30, 2023, reflect unimproved/other property sales.
There were no such sales in the quarter ended September 30,
2022.
- Land Operations Adjusted EBITDA was $2.9
million for the third quarter of 2023, as compared to
$(1.3) million in the third quarter
of 2022.
Balance Sheet, Market Value and Liquidity
- As of September 30, 2023, the
Company had an equity market capitalization of $1.2 billion and $507.6 million in total debt, for a total
market capitalization of approximately $1.7 billion. The Company's debt-to-total
market capitalization was 29.5% as of September 30, 2023. The
Company's debt has a weighted-average maturity of 2.7 years, with a
weighted-average interest rate of 4.6%. 84% of the Company's debt
was at fixed rates at quarter end.
- As of September 30, 2023, the
Company had total liquidity of $429.7 million, consisting of cash on hand
of $11.8 million and
$417.9 million available on its
revolving line of credit.
- Net Debt to Trailing Twelve Months ("TTM") Consolidated
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA") was 4.4 times as of
September 30, 2023, with TTM Consolidated Adjusted EBITDA of
$113.0 million for the period ended
September 30, 2023.
- During the quarter ended September 30, 2023, the Company
repurchased 91,710 of its common shares at a weighted-average price
of $16.72 per share, for a total
investment of $1.5 million. These
shares were retired upon repurchase.
Dividend
- The Company paid a third quarter 2023 dividend of $0.22 per share on October 4, 2023.
- Consistent with historical practice, the Company's Board plans
to declare a fourth quarter 2023 dividend in December 2023, with payment in January 2024.
2023 Full-Year Guidance
- The Company revised its annual 2023 guidance to reflect its
improved outlook as follows:
|
2023
Guidance
|
|
Revised
|
Prior
|
Initial
|
Core FFO per diluted
share
|
$1.13 to
$1.16
|
$1.10 to
$1.14
|
$1.08 to
$1.13
|
CRE Same-Store
NOI
|
2.75% to
4.25%
|
2.5% to
4.25%
|
2% to 4%
|
CRE Same-Store NOI,
excluding prior year reserve reversals
|
5.75% to
6.75%
|
5.5% to
6.75%
|
5% to 6.5%
|
ABOUT ALEXANDER & BALDWIN
Alexander & Baldwin, Inc. (NYSE: ALEX) (A&B) is the
only publicly-traded real estate investment trust to focus
exclusively on Hawai'i commercial real estate and is the state's
largest owner of grocery-anchored, neighborhood shopping centers.
A&B owns, operates and manages approximately 3.9 million square
feet of commercial space in Hawai'i, including 22 retail centers,
13 industrial assets and four office properties, as well as 142.0
acres of ground leases. A&B is expanding and strengthening its
Hawai'i CRE portfolio and achieving its strategic focus on
commercial real estate by monetizing its remaining non-core assets.
Over its 153-year history, A&B has evolved with the state's
economy and played a leadership role in the development of the
agricultural, transportation, tourism, construction, residential
and commercial real estate industries. Learn more about A&B at
www.alexanderbaldwin.com.
Contact:
Clayton Chun
(808) 525-8475
investorrelations@abhi.com
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
SEGMENT DATA &
OTHER FINANCIAL INFORMATION
|
(amounts in millions,
except per share data; unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
Commercial Real
Estate
|
|
$
48.2
|
|
$
46.5
|
|
$
145.6
|
|
$
138.8
|
Land
Operations
|
|
4.3
|
|
2.9
|
|
10.4
|
|
20.9
|
Total operating
revenue
|
|
52.5
|
|
49.4
|
|
156.0
|
|
159.7
|
Operating Profit
(Loss):
|
|
|
|
|
|
|
|
|
Commercial Real
Estate
|
|
20.6
|
|
20.3
|
|
64.2
|
|
60.3
|
Land
Operations
|
|
2.9
|
|
(1.3)
|
|
4.5
|
|
(7.1)
|
Total operating
profit (loss)
|
|
23.5
|
|
19.0
|
|
68.7
|
|
53.2
|
Interest
expense
|
|
(6.1)
|
|
(5.4)
|
|
(17.0)
|
|
(16.7)
|
Corporate and other
expense
|
|
(5.4)
|
|
(7.8)
|
|
(19.4)
|
|
(33.7)
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
|
12.0
|
|
5.8
|
|
32.3
|
|
2.8
|
Income tax benefit
(expense)
|
|
—
|
|
—
|
|
—
|
|
18.1
|
Income (Loss) from
Continuing Operations
|
|
12.0
|
|
5.8
|
|
32.3
|
|
20.9
|
Income (loss) from
discontinued operations, net of income taxes
|
|
3.9
|
|
1.0
|
|
3.9
|
|
1.3
|
Net Income
(Loss)
|
|
$
15.9
|
|
$
6.8
|
|
$
36.2
|
|
$
22.2
|
Loss (income)
attributable to discontinued noncontrolling interest
|
|
(1.3)
|
|
(0.4)
|
|
(2.9)
|
|
(1.2)
|
Net Income (Loss)
Attributable to A&B Shareholders
|
|
$
14.6
|
|
$
6.4
|
|
$
33.3
|
|
$
21.0
|
|
|
|
|
|
|
|
|
|
Basic Earnings
(Loss) Per Share of Common Stock:
|
|
|
|
|
|
|
|
|
Continuing operations
available to A&B shareholders
|
|
$
0.16
|
|
$
0.08
|
|
$
0.44
|
|
$
0.29
|
Discontinued
operations available to A&B shareholders
|
|
0.04
|
|
0.01
|
|
0.02
|
|
—
|
Net income (loss)
available to A&B shareholders
|
|
$
0.20
|
|
$
0.09
|
|
$
0.46
|
|
$
0.29
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share of Common Stock:
|
|
|
|
|
|
|
|
|
Continuing operations
available to A&B shareholders
|
|
$
0.16
|
|
$
0.08
|
|
$
0.44
|
|
$
0.29
|
Discontinued
operations available to A&B shareholders
|
|
0.04
|
|
0.01
|
|
0.02
|
|
—
|
Net income (loss)
available to A&B shareholders
|
|
$
0.20
|
|
$
0.09
|
|
$
0.46
|
|
$
0.29
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
72.6
|
|
72.7
|
|
72.6
|
|
72.7
|
Diluted
|
|
72.8
|
|
72.8
|
|
72.8
|
|
72.8
|
|
|
|
|
|
|
|
|
|
Amounts Available to
A&B Common Shareholders:
|
|
|
|
|
|
|
|
|
Continuing operations
available to A&B common shareholders
|
|
$
12.0
|
|
$
5.7
|
|
$
32.2
|
|
$
20.7
|
Discontinued
operations available to A&B common shareholders
|
|
2.6
|
|
0.6
|
|
1.0
|
|
0.1
|
Net income (loss)
available to A&B common shareholders
|
|
$
14.6
|
|
$
6.3
|
|
$
33.2
|
|
$
20.8
|
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(amounts in millions;
unaudited)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
Real estate
investments
|
|
|
|
|
Real estate
property
|
|
$
1,619.9
|
|
$
1,598.9
|
Accumulated
depreciation
|
|
(223.0)
|
|
(202.3)
|
Real estate property,
net
|
|
1,396.9
|
|
1,396.6
|
Real estate
developments
|
|
60.0
|
|
59.9
|
Investments in real
estate joint ventures and partnerships
|
|
7.4
|
|
7.5
|
Real estate intangible
assets, net
|
|
38.3
|
|
43.6
|
Real estate
investments, net
|
|
1,502.6
|
|
1,507.6
|
Cash and cash
equivalents
|
|
11.8
|
|
33.3
|
Restricted
cash
|
|
0.2
|
|
1.0
|
Accounts receivable,
net
|
|
3.6
|
|
6.1
|
Other property,
net
|
|
2.2
|
|
2.5
|
Operating lease
right-of-use assets
|
|
2.2
|
|
5.4
|
Goodwill
|
|
8.7
|
|
8.7
|
Other
receivables
|
|
7.3
|
|
6.9
|
Prepaid expenses and
other assets
|
|
102.6
|
|
89.0
|
Assets held for
sale
|
|
144.7
|
|
126.8
|
Total
assets
|
|
$
1,785.9
|
|
$
1,787.3
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Notes payable and
other debt
|
|
$
507.6
|
|
$
472.2
|
Accounts
payable
|
|
6.1
|
|
4.5
|
Operating lease
liabilities
|
|
2.0
|
|
4.9
|
Accrued pension and
post-retirement benefits
|
|
10.1
|
|
10.1
|
Deferred
revenue
|
|
71.9
|
|
68.8
|
Accrued and other
liabilities
|
|
78.4
|
|
102.1
|
Liabilities associated
with assets held for sale
|
|
71.3
|
|
81.0
|
Redeemable
Noncontrolling Interest
|
|
9.7
|
|
8.0
|
Equity
|
|
1,028.8
|
|
1,035.7
|
Total liabilities and
equity
|
|
$
1,785.9
|
|
$
1,787.3
|
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED CASH FLOWS
|
(amounts in millions;
unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
(loss)
|
|
$
36.2
|
|
$
22.2
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operations:
|
|
|
|
|
Loss (income) from
discontinued operations
|
|
(3.9)
|
|
(1.3)
|
Depreciation and
amortization
|
|
27.6
|
|
28.8
|
Income tax expense
(benefit)
|
|
—
|
|
(18.3)
|
Loss (gain) from
disposals and asset transactions, net
|
|
(1.1)
|
|
(53.9)
|
Impairment of
assets
|
|
0.6
|
|
—
|
Share-based
compensation expense
|
|
5.3
|
|
4.6
|
Loss (income) related
to joint ventures, net of operating cash distributions
|
|
(1.9)
|
|
1.0
|
Pension
termination
|
|
—
|
|
76.9
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
|
(0.1)
|
|
(2.5)
|
Prepaid expenses,
income tax receivable and other assets
|
|
(3.5)
|
|
(3.7)
|
Development/other
property inventory
|
|
(1.5)
|
|
9.5
|
Accrued pension and
post-retirement benefits
|
|
—
|
|
(31.3)
|
Accounts
payable
|
|
0.3
|
|
1.0
|
Accrued and other
liabilities
|
|
(2.2)
|
|
(2.4)
|
Operating cash flows
from continuing operations
|
|
55.8
|
|
30.6
|
Operating cash flows
from discontinued operations
|
|
(12.2)
|
|
(21.6)
|
Net cash provided by
(used in) operations
|
|
43.6
|
|
9.0
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital expenditures
for acquisitions
|
|
(9.5)
|
|
—
|
Capital expenditures
for property, plant and equipment
|
|
(13.6)
|
|
(11.0)
|
Proceeds from disposal
of assets
|
|
3.3
|
|
73.1
|
Payments for purchases
of investments in affiliates and other investments
|
|
(0.2)
|
|
(0.5)
|
Distributions of
capital and other receipts from investments in affiliates and other
investments
|
|
—
|
|
0.1
|
Investing cash flows
from continuing operations
|
|
(20.0)
|
|
61.7
|
Investing cash flows
from discontinued operations
|
|
0.6
|
|
(5.7)
|
Net cash provided by
(used in) investing activities
|
|
(19.4)
|
|
56.0
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Payments of notes
payable and other debt and deferred financing costs
|
|
(33.7)
|
|
(21.9)
|
Borrowings (payments)
on line-of-credit agreement, net
|
|
69.0
|
|
(50.0)
|
Cash dividends
paid
|
|
(64.2)
|
|
(57.7)
|
Repurchases of common
stock and other payments
|
|
(3.6)
|
|
(5.0)
|
Financing cash flows
from continuing operations
|
|
(32.5)
|
|
(134.6)
|
Financing cash flows
from discontinued operations
|
|
(10.7)
|
|
6.1
|
Net cash provided by
(used in) financing activities
|
|
(43.2)
|
|
(128.5)
|
|
|
|
|
|
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
|
|
(19.0)
|
|
(63.5)
|
Balance, beginning of
period
|
|
34.4
|
|
71.0
|
Balance, end of
period
|
|
$
15.4
|
|
$
7.5
|
USE OF NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP measures when evaluating operating
performance because management believes that they provide
additional insight into the Company's and segments' core operating
results, and/or the underlying business trends affecting
performance on a consistent and comparable basis from period to
period. These measures generally are provided to investors as an
additional means of evaluating the performance of ongoing core
operations. The non-GAAP financial information presented herein
should be considered supplemental to, and not as a substitute for
or superior to, financial measures calculated in accordance with
GAAP.
NOI is a non-GAAP measure used internally in evaluating the
unlevered performance of the Company's Commercial Real Estate
portfolio. The Company believes NOI provides useful information to
investors regarding the Company's financial condition and results
of operations because it reflects only the contract-based income
and cash-based expense items that are incurred at the property
level. When compared across periods, NOI can be used to determine
trends in earnings of the Company's properties as this measure is
not affected by non-contract-based revenue (e.g., straight-line
lease adjustments required under GAAP); by non-cash expense
recognition items (e.g., the impact of depreciation and
amortization expense or impairments); or by other expenses or gains
or losses that do not directly relate to the Company's ownership
and operations of the properties (e.g., indirect selling, general,
administrative and other expenses, as well as lease termination
income). The Company believes the exclusion of these items from
operating profit (loss) is useful because the resulting measure
captures the contract-based revenue that is realizable (i.e.,
assuming collectability is deemed probable) and the direct
property-related expenses paid or payable in cash that are incurred
in operating the Company's Commercial Real Estate portfolio, as
well as trends in occupancy rates, rental rates and operating
costs. NOI should not be viewed as a substitute for, or superior
to, financial measures calculated in accordance with GAAP.
The Company reports NOI and Occupancy on a Same-Store basis,
which includes the results of properties that were owned and
operated for the entirety of the prior calendar year and current
reporting period, year-to-date. The Company believes that reporting
on a Same-Store basis provides investors with additional
information regarding the operating performance of comparable
assets separate from other factors (such as the effect of
developments, redevelopments, acquisitions or dispositions).
Reconciliations of Commercial Real Estate operating profit
(loss) to Commercial Real Estate NOI and Same-Store NOI are as
follows:
|
|
Three Months Ended
September 30,
|
|
|
(amounts in millions;
unaudited)
|
|
2023
|
|
2022
|
|
Change1
|
CRE Operating Profit
(Loss)
|
|
$
20.6
|
|
$
20.3
|
|
$
0.3
|
Plus: Depreciation and
amortization
|
|
9.1
|
|
9.0
|
|
0.1
|
Less: Straight-line
lease adjustments
|
|
(0.8)
|
|
(1.2)
|
|
0.4
|
Less:
Favorable/(unfavorable) lease amortization
|
|
(0.3)
|
|
(0.2)
|
|
(0.1)
|
Less: Termination
income
|
|
(0.1)
|
|
(0.1)
|
|
—
|
Plus: Other
(income)/expense, net
|
|
0.2
|
|
(0.6)
|
|
0.8
|
Plus: Impairment of
real estate assets
|
|
0.6
|
|
—
|
|
0.6
|
Plus: Selling,
general, administrative and other expenses
|
|
1.7
|
|
1.8
|
|
(0.1)
|
NOI
|
|
31.0
|
|
29.0
|
|
2.0
|
Less: NOI from
acquisitions, dispositions, and other adjustments
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Same-Store
NOI
|
|
$
30.8
|
|
$
29.0
|
|
$
1.8
|
Less: Collections of
amounts reserved in previous years
|
|
0.5
|
|
0.4
|
|
0.1
|
Same-Store NOI
excluding collections of amounts reserved in previous
years
|
|
$
30.3
|
|
$
28.6
|
|
$
1.7
|
|
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.
|
FFO is presented by the Company as a widely used non-GAAP
measure of operating performance for real estate companies. The
Company believes that, subject to the following limitations, FFO
provides a supplemental measure to net income (calculated in
accordance with GAAP) for comparing its performance and operations
to those of other REITs. FFO does not represent an alternative to
net income calculated in accordance with GAAP. In addition, FFO
does not represent cash generated from operating activities in
accordance with GAAP, nor does it represent cash available to pay
distributions and should not be considered as an alternative to
cash flow from operating activities, determined in accordance with
GAAP, as a measure of the Company's liquidity. The Company presents
different forms of FFO:
- Core FFO represents a non-GAAP measure relevant to the
operating performance of the Company's commercial real estate
business (i.e., its core business). Core FFO is calculated by
adjusting CRE operating profit to exclude items in a manner
consistent with FFO (i.e., depreciation and amortization related to
real estate included in CRE operating profit) and to make further
adjustments to include expenses not included in CRE operating
profit but that are necessary to accurately reflect the operating
performance of its core business (i.e., corporate expenses and
interest expense attributable to this core business) or to exclude
items that are non-recurring, infrequent, unusual and unrelated to
the core business operating performance (i.e., not likely to recur
within two years or has not occurred within the prior two years).
The Company believes such adjustments facilitate the comparable
measurement of the Company's core operating performance over time.
The Company believes that Core FFO, which is a supplemental
non-GAAP financial measure, provides an additional and useful means
to assess and compare the operating performance of REITs.
- FFO represents the Nareit-defined non-GAAP measure for the
operating performance of the Company as a whole. The Company's
calculation refers to net income (loss) available to A&B common
shareholders as its starting point in the calculation of FFO.
The Company presents both non-GAAP measures and reconciles each
to the most directly-comparable GAAP measure as well as reconciling
FFO to Core FFO. The Company's FFO and Core FFO may not be
comparable to FFO non-GAAP measures reported by other REITs. These
other REITs may not define the term in accordance with the current
Nareit definition or may interpret the current Nareit definition
differently.
Reconciliations of net income (loss) available to A&B common
shareholders to FFO and Core FFO are as follows:
|
|
Three Months Ended
September 30,
|
(amounts in millions;
unaudited)
|
|
2023
|
|
2022
|
Net Income (Loss)
available to A&B common shareholders
|
|
$
14.6
|
|
$
6.3
|
Depreciation and
amortization of commercial real estate properties
|
|
9.1
|
|
9.0
|
(Income) loss from
discontinued operations, net of income taxes
|
|
(3.9)
|
|
(1.0)
|
Income (loss)
attributable to discontinued noncontrolling interest
|
|
1.3
|
|
0.4
|
FFO
|
|
$
21.1
|
|
$
14.7
|
Exclude items not
related to core business:
|
|
|
|
|
Land Operations
operating (profit) loss
|
|
(2.9)
|
|
1.3
|
Non-core business
interest expense
|
|
3.0
|
|
2.7
|
Impairment losses -
abandoned development costs
|
|
0.6
|
|
—
|
Core
FFO
|
|
$
21.8
|
|
$
18.7
|
Reconciliations of Core FFO starting from Commercial Real Estate
operating profit (loss) are as follows:
|
|
Three Months Ended
September 30,
|
(amounts in millions
except per share amounts; unaudited)
|
|
2023
|
|
2022
|
Commercial Real
Estate Operating Profit (Loss)
|
|
$
20.6
|
|
$
20.3
|
Depreciation and
amortization of commercial real estate properties
|
|
9.1
|
|
9.0
|
Corporate and other
expense
|
|
(5.4)
|
|
(7.8)
|
Core business interest
expense
|
|
(3.1)
|
|
(2.7)
|
Impairment losses -
abandoned development costs
|
|
0.6
|
|
—
|
Distributions to
participating securities
|
|
—
|
|
(0.1)
|
Core
FFO
|
|
$
21.8
|
|
$
18.7
|
|
|
|
|
|
FFO per diluted
share
|
|
$
0.29
|
|
$
0.20
|
Core FFO per diluted
share
|
|
$
0.30
|
|
$
0.26
|
Weighted average
diluted shares outstanding (FFO/Core FFO)
|
|
72.8
|
|
72.8
|
The Company may report various forms of Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA"), on a
consolidated basis or a segment basis (e.g., "Consolidated EBITDA"
or "Land Operations EBITDA"), as non-GAAP measures used by the
Company in evaluating the Company's and segments' operating
performance on a consistent and comparable basis from period to
period. The Company provides this information to investors as an
additional means of evaluating the performance of the Company's and
segments' ongoing operations.
Consolidated EBITDA is calculated by adjusting the Company's
consolidated net income (loss) to exclude the impact of interest
expense, income taxes and depreciation and amortization. Land
Operations EBITDA is calculated by adjusting Land Operations
operating profit (which excludes interest expense and income taxes)
to add back depreciation and amortization recorded at the Land
Operations segment.
The Company also adjusts Consolidated EBITDA or Land Operations
EBITDA (to arrive at "Consolidated Adjusted EBITDA" or "Land
Operations Adjusted EBITDA") for items identified as non-recurring,
infrequent or unusual that are not expected to recur in the
Company's core business or segment's normal operations.
As an illustrative example, the Company identified non-cash
pension termination charges as a non-recurring, infrequent or
unusual item that is not expected to recur in the consolidated or
segment's normal operations (or in the Company's core business). By
excluding these items from Segment EBITDA and Consolidated EBITDA
to arrive at Segment Adjusted EBITDA or Consolidated Adjusted
EBITDA, the Company believes it provides meaningful supplemental
information about its core operating performance and facilitates
comparisons to historical operating results. Such non-GAAP measures
should not be viewed as a substitute for, or superior to, financial
measures calculated in accordance with GAAP.
Reconciliations of the Company's consolidated net income to
Consolidated EBITDA and Consolidated Adjusted EBITDA are as
follows:
|
|
TTM September
30,
|
(amounts in millions,
unaudited)
|
|
2023
|
|
2022
|
Net Income
(Loss)
|
|
$
(35.5)
|
|
$
28.6
|
Adjustments:
|
|
|
|
|
Depreciation and
amortization
|
|
36.8
|
|
38.8
|
Interest
expense
|
|
22.3
|
|
22.8
|
Income tax expense
(benefit)
|
|
(0.2)
|
|
(18.2)
|
Depreciation and
amortization related to discontinued operations
|
|
1.5
|
|
7.0
|
Interest expense
related to discontinued operations
|
|
0.6
|
|
0.1
|
Consolidated
EBITDA
|
|
$
25.5
|
|
$
79.1
|
Asset
impairments
|
|
5.6
|
|
—
|
Pension
termination
|
|
—
|
|
76.9
|
(Income) loss from
discontinued operations, net of income taxes and excluding
depreciation, amortization and interest expense
|
|
81.9
|
|
23.1
|
Consolidated
Adjusted EBITDA
|
|
$
113.0
|
|
$
179.1
|
FORWARD-LOOKING STATEMENTS
Statements in this release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding possible or assumed future results
of operations, business strategies, growth opportunities and
competitive positions. Such forward-looking statements speak only
as of the date the statements were made and are not guarantees of
future performance. Forward-looking statements are subject to a
number of risks, uncertainties, assumptions and other factors that
could cause actual results and the timing of certain events to
differ materially from those expressed in or implied by the
forward-looking statements. These factors include, but are not
limited to, prevailing market conditions and other factors related
to the Company's REIT status and the Company's business, the
evaluation of alternatives by the Company related to its non-core
assets and business, and the risk factors discussed in the
Company's most recent Form 10-K, Form 10-Q and other filings with
the Securities and Exchange Commission. The information in this
release should be evaluated in light of these important risk
factors. We do not undertake any obligation to update the Company's
forward-looking statements.
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SOURCE Alexander & Baldwin, Inc.