Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Alexander & Baldwin, Inc. | a2019earningsrelease.htm |
| 8-K - 8-K - Alexander & Baldwin, Inc. | form8-kx2019q4earnings.htm |
Alexander & Baldwin, Inc.
Table of Contents
Company Overview | |
Company Profile | |
Glossary of Terms | |
Statement on Management's Use of Non-GAAP Financial Measures | |
Financial Summary | |
Table 1 – Consolidated Balance Sheets | |
Table 2 – Consolidated Statements of Operations | |
Table 3 – Segment Results | |
Table 4 – Consolidated Statements of Cash Flows | |
Table 5 – Debt Summary | |
Table 6 – Capitalization & Financial Ratios | |
Table 7 – Consolidated Metrics | |
Commercial Real Estate | |
Table 8 – CRE Metrics | |
Table 9 – Occupancy | |
Table 10 – Cash NOI and Same-Store Cash NOI by Type | |
Table 11 – Improved Property Report | |
Table 12 – Ground Lease Report | |
Table 13 – Top 10 Tenants Ranked by ABR | |
Table 14 – Lease Expiration Schedule | |
Table 15 – New & Renewed Lease Summary | |
Table 16 – Portfolio Repositioning, Redevelopment & Development Summary | |
Table 17 – Transactional Activity (2018- 2019) | |
Land Operations | |
Table 18 – Statement of Operating Profit, EBITDA and Adjusted EBITDA | |
Table 19 – Key Active Development-for-sale Projects and Investments | |
Table 20 – Landholdings at December 31, 2019 | |
Materials & Construction | |
Table 21 – Statement of Operating Profit, EBITDA and Adjusted EBITDA | |
Forward-Looking Statements
Statements in this Supplemental Information report that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that 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, those 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 Supplemental Information report should be evaluated in light of these important risk factors. The Company does not undertake any obligation to update any forward-looking statements.
Basis of Presentation
The information contained in this Supplemental Information report does not purport to disclose all items required by accounting principles generally accepted in the United States of America (GAAP).
Company Overview
Alexander & Baldwin, Inc.
Company Overview
Company Profile
Alexander & Baldwin, Inc. (“A&B” or the "Company") is a fully integrated real estate investment trust ("REIT") headquartered in Honolulu, Hawai‘i. The Company has a 150-year history of being an integral piece of Hawai‘i and its economy making it uniquely qualified to create value for shareholders through an investment and asset redeployment strategy focused on growth primarily in its commercial real estate holdings in Hawai‘i.
The Company operates through three reportable segments: Commercial Real Estate ("CRE"); Land Operations; and Materials & Construction ("M&C") and is composed of the following as of December 31, 2019:
• | A 3.9 million-square-foot portfolio of commercial real estate and 154 acres of ground leases throughout the Hawaiian islands, including 2.5 million square feet of largely grocery/drugstore-anchored retail centers; |
• | More than 29,000 acres of landholdings across its three segments, including development-for-hold and development-for-sale activities in select Hawai‘i locations; and |
• | Materials & Construction operations primarily through its wholly owned subsidiary, Grace Pacific LLC ("Grace Pacific"). |
Throughout this Supplemental Information report, references to "we," "our," "us" and "our Company" refer to Alexander & Baldwin, Inc., together with its consolidated subsidiaries.
Executive Officers | |||||
Christopher Benjamin | Brett Brown | ||||
President & Chief Executive Officer | Executive Vice President & Chief Financial Officer | ||||
Lance Parker | Nelson Chun | ||||
Executive Vice President & Chief Real Estate Officer | Executive Vice President & Chief Legal Officer | ||||
Jerrod Schreck | Meredith Ching | ||||
President, Grace Pacific | Executive Vice President, External Affairs | ||||
Contact Information | Equity Research | ||||
Corporate Headquarters | Evercore ISI | Piper Sandler & Co. | |||
822 Bishop Street | Sheila McGrath | Alexander Goldfarb | |||
Honolulu, HI 96813 | (212) 497-0882 | (212) 466-7937 | |||
sheila.mcgrath@evercoreisi.com | alexander.goldfarb@psc.com | ||||
Investor Relations | |||||
Brett Brown | JMP Securities LLC | ||||
Executive Vice President & Chief Financial Officer | Peter Martin | ||||
(808) 525-8401 | (415) 835-8904 | ||||
bbrown@abhi.com | pmartin@jmpsecurities.com | ||||
Transfer Agent & Registrar | Sidoti & Company, LLC | ||||
Computershare | Stephen O'Hara | ||||
P.O. Box 505000 | (212) 894-3329 | ||||
Louisville, KY 40233-5000 | sohara@sidoti.com | ||||
(866) 442-6551 | |||||
Other Company Information | |||||
Overnight Correspondence | |||||
Computershare | Stock exchange listing: | NYSE: ALEX | |||
462 South 4th Street, Suite 1600 | Corporate website: | www.alexanderbaldwin.com | |||
Louisville, KY 40202 | Grace Pacific website: | www.gracepacific.com | |||
Market capitalization at December 31, 2019: | $1.5 | B | |||
Shareholder website: www.computershare.com/investor | 3-month average trading volume: | 316K | |||
Online inquiries: www-us.computershare.com/investor/contact | Independent auditors: | Deloitte & Touche LLP | |||
1
Alexander & Baldwin, Inc.
Company Overview
Glossary of Terms
ABR | Annualized Base Rent ("ABR") is the current month's contractual base rent multiplied by 12. Base rent is presented without consideration of percentage rent that may, in some cases, be significant. |
Backlog | Backlog represents the total amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded. Backlog primarily consists of asphalt paving and, to a lesser extent, Grace Pacific’s consolidated revenue from its Prestress and construction-and traffic control-related products. Backlog includes estimated revenue from the remaining portion of contracts not yet completed, as well as revenue from approved change orders. The length of time that projects remain in backlog can span from a few days for a small volume of work to 36 months for large paving contracts and contracts performed in phases. This amount includes opportunity backlog consisting of government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory at the time of this disclosure. Circumstances outside the Company's control such as procurement or technical protests may arise that prevent the finalization of such contracts. |
Cash NOI | Cash Net Operating Income ("Cash NOI") represents total Commercial Real Estate cash-based operating revenues less direct property-related operating expenses. The calculation of Cash NOI excludes the impact of depreciation and amortization (including amortization of maintenance capital, tenant improvements and leasing commissions); straight-line lease adjustments (including amortization of lease incentives); amortization of favorable/unfavorable lease assets/liabilities; lease termination income; other income and expense, net; selling, general, administrative and other expenses; and impairment of commercial real estate assets. |
Comparable Lease | Comparable Leases are either renewals or new leases executed for units that have been vacated in the previous 12 months for comparable space and comparable lease terms. Expansions, contractions and strategic short-term renewals are excluded from the Comparable Lease pool. |
Consolidated Adjusted EBITDA | Consolidated Adjusted EBITDA is calculated by adjusting Consolidated EBITDA for non-cash asset impairments recorded in the M&C segment and the other-than-temporary impairment related to Kukui‘ula recorded in the Land Operations segment. |
CRE Portfolio | Composed of (1) leases of retail, industrial and office improved properties ("Improved Portfolio") and (2) ground leases ("Ground Leases") within the CRE segment. |
EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is calculated on a consolidated basis ("Consolidated EBITDA") by adjusting the Company’s consolidated net income (loss) to exclude the impact of interest expense, income taxes, and depreciation and amortization. EBITDA is calculated for each segment ("Segment EBITDA" or "Commercial Real Estate EBITDA," "Land Operations EBITDA" and "Materials & Construction EBITDA") by adjusting segment operating profit (which excludes interest and tax expenses), as applicable, by adding back depreciation and amortization recorded at the respective segment. |
Fixed-charge Coverage Ratio | The ratio of Consolidated Adjusted EBITDA to the sum of debt service (which includes interest payments and principal amortization of mortgage debt, excluding balloon payments), for the trailing twelve months. |
GAAP | Generally accepted accounting principles in the United States of America. |
GLA | Total area measured in square feet ("SF") available for lease in our retail, industrial or office properties. GLA is periodically adjusted based on remeasurement or reconfiguration of space and may change period over period for these remeasurements. |
Land Operations Adjusted EBITDA | Land Operations Adjusted EBITDA is calculated by adjusting Land Operations EBITDA for the other-than-temporary impairment related to the Company's investment in Kukui‘ula. |
Maintenance Capital Expenditures | Capital expenditures (on a cash basis) necessary to maintain building value, the current income stream and position in the market (including building improvements and tenant improvements allowances). |
M&C Adjusted EBITDA | M&C Adjusted EBITDA is calculated by adjusting Materials & Construction EBITDA for non-cash asset impairments recorded in the M&C segment and income attributable to noncontrolling interests as presented in our consolidated statements of operations. |
Net Debt | Net Debt is calculated by adjusting the Company's total debt to its notional amount (by excluding unamortized premium, discount and capitalized loan fees) and by subtracting cash and cash equivalents recorded in our consolidated balance sheets. |
Occupancy | The percentage of square footage leased and commenced to gross leasable space at the end of the period reported. |
Rent Spread | Percentage change in ABR in the first year of a signed lease relative to the ABR in the last year of the prior lease. |
Same-Store | The Company reports Cash NOI and Occupancy on a Same-Store basis, which includes the results of properties that were owned and operated for the entirety of the current and prior calendar year. The Same-Store pool excludes properties under development or redevelopment and also excludes properties acquired or sold during either of the comparable reporting periods. While there is management judgment involved in classifications, new developments and redevelopments are moved into the Same-Store pool after one full calendar year of stabilized operation. Properties included in held for sale are excluded from Same-Store. |
Stabilization | New developments and redevelopments are generally considered stabilized upon the initial attainment of 90% occupancy. |
Straight-line Rent | Non-cash revenue related to a GAAP requirement to average tenant rents over the life of the lease, regardless of the actual cash collected in the reporting period. |
TTM | Trailing twelve months. |
Year Built | Year of most recent repositioning/redevelopment or year built if no repositioning/redevelopment has occurred. |
2
Alexander & Baldwin, Inc.
Company Overview
Statement on Management's Use of Non-GAAP Financial Measures
The Company presents the following non-GAAP financial measures in this Supplemental Information:
• | Consolidated EBITDA |
• | Consolidated Adjusted EBITDA |
• | Commercial Real Estate Cash NOI and Same-Store Cash NOI |
• | Commercial Real Estate EBITDA |
• | Land Operations EBITDA and Land Operations Adjusted EBITDA |
• | Materials & Construction EBITDA and M&C Adjusted EBITDA |
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.
EBITDA is a non-GAAP measure 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. The Company adjusts Consolidated EBITDA for the asset impairments recorded in the Materials & Construction segment and the other-than-temporary impairment of the Kukui‘ula joint venture recorded in the Land Operations segment, where applicable, as the Company believes these items are infrequent in nature. The Company adjusts Segment EBITDA for the same applicable adjustments used to arrive at Consolidated Adjusted EBITDA, as well as adjusts for income attributable to noncontrolling interests as presented in our consolidated statements of operations to arrive at M&C Adjusted EBITDA. By excluding these items from EBITDA and Segment 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.
Cash NOI is a non-GAAP measure used internally in evaluating the unlevered performance of the Company's Commercial Real Estate portfolio. The Company believes Cash NOI provides useful information to investors regarding the Company's financial condition and results of operations because it reflects only those cash income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the Company's properties as this measure is not affected by non-cash revenue and expense recognition items, the impact of depreciation and amortization expenses or other gains or losses that relate to the Company's ownership of properties. The Company believes the exclusion of these items from operating profit (loss) is useful because the resulting measure captures the actual cash-based revenue generated and actual expenses incurred in operating the Company's Commercial Real Estate portfolio as well as trends in occupancy rates, rental rates, and operating costs. Cash NOI should not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company reports Cash NOI and Occupancy on a Same-Store basis, which includes the results of properties that were owned and operated for the entirety of the current and prior calendar year. The Company believes that reporting on a Same-Store basis provides investors with additional information regarding the operating performance of comparable assets versus from other factors (such as the effect of developments, redevelopments, acquisitions or dispositions).
The calculations of these financial measures are described in the Glossary of Terms of this Supplemental Information. The Company's methods of calculating non-GAAP measures may differ from methods employed by other companies and thus may not be comparable to such other companies.
Required reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are set forth in the following tables of this Supplemental Information:
• | Refer to Table 7 for a reconciliation of consolidated net income to Consolidated EBITDA and Consolidated Adjusted EBITDA. |
• | Refer to Table 8 for a reconciliation of Commercial Real Estate operating profit to Cash NOI and Same-Store Cash NOI, and a reconciliation of Commercial Real Estate operating profit to Commercial Real Estate EBITDA. |
• | Refer to Table 18 for a reconciliation of Land Operations operating profit to Land Operations EBITDA and Land Operations Adjusted EBITDA. |
• | Refer to Table 21 for a reconciliation of Materials & Construction operating profit to Materials & Construction EBITDA and M&C Adjusted EBITDA. |
3
Financial Summary
Alexander & Baldwin, Inc.
Financial Summary
Table 1 – Consolidated Balance Sheets
($ in millions, unaudited)
December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Real estate investments | ||||||||
Real estate property | $ | 1,540.2 | $ | 1,293.7 | ||||
Accumulated depreciation | (127.5 | ) | (107.2 | ) | ||||
Real estate property, net | 1,412.7 | 1,186.5 | ||||||
Real estate developments | 79.1 | 155.2 | ||||||
Investments in real estate joint ventures and partnerships | 133.4 | 141.0 | ||||||
Real estate intangible assets, net | 74.9 | 59.8 | ||||||
Real estate investments, net | 1,700.1 | 1,542.5 | ||||||
Cash and cash equivalents | 15.2 | 11.4 | ||||||
Restricted cash | 0.2 | 223.5 | ||||||
Accounts receivable, net | 43.4 | 49.6 | ||||||
Contracts retention | 8.6 | 11.6 | ||||||
Inventories | 20.7 | 26.5 | ||||||
Other property, net | 124.4 | 135.5 | ||||||
Operating lease right-of-use assets | 21.8 | — | ||||||
Goodwill | 15.4 | 65.1 | ||||||
Other receivables | 27.4 | 56.8 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 10.0 | 9.2 | ||||||
Prepaid expenses and other assets | 97.1 | 93.5 | ||||||
Total assets | $ | 2,084.3 | $ | 2,225.2 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Notes payable and other debt | $ | 704.6 | $ | 778.1 | ||||
Accounts payable | 17.8 | 34.2 | ||||||
Operating lease liabilities | 21.6 | — | ||||||
Accrued pension and post-retirement benefits | 26.8 | 29.4 | ||||||
Indemnity holdbacks | 7.5 | 16.3 | ||||||
Deferred revenue | 67.6 | 63.2 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 7.9 | 5.9 | ||||||
Accrued and other liabilities | 95.5 | 81.9 | ||||||
Total liabilities | 949.3 | 1,009.0 | ||||||
Commitments and Contingencies | ||||||||
Redeemable Noncontrolling Interest | 6.3 | 7.9 | ||||||
Equity: | ||||||||
Common stock - no par value; authorized, 150 million shares; outstanding, 72.3 million and 72.0 million shares at December 31, 2019 and 2018, respectively | 1,800.1 | 1,793.4 | ||||||
Accumulated other comprehensive income (loss) | (48.8 | ) | (51.9 | ) | ||||
Distributions in excess of accumulated earnings | (626.2 | ) | (538.9 | ) | ||||
Total A&B shareholders' equity | 1,125.1 | 1,202.6 | ||||||
Noncontrolling interest | 3.6 | 5.7 | ||||||
Total equity | 1,128.7 | 1,208.3 | ||||||
Total liabilities and equity | $ | 2,084.3 | $ | 2,225.2 | ||||
4
Alexander & Baldwin, Inc.
Financial Summary
Table 2 – Consolidated Statements of Operations
(in millions, except per-share amounts; unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Revenue: | ||||||||||||||||
Commercial Real Estate | $ | 42.0 | $ | 35.4 | $ | 160.6 | $ | 140.3 | ||||||||
Land Operations | 31.7 | 216.9 | 114.1 | 289.5 | ||||||||||||
Materials & Construction | 33.9 | 47.3 | 160.5 | 214.6 | ||||||||||||
Total operating revenue | 107.6 | 299.6 | 435.2 | 644.4 | ||||||||||||
Operating Costs and Expenses: | ||||||||||||||||
Cost of Commercial Real Estate | 24.7 | 20.2 | 89.0 | 77.2 | ||||||||||||
Cost of Land Operations | 24.0 | 50.1 | 92.5 | 117.1 | ||||||||||||
Cost of Materials & Construction | 32.2 | 44.6 | 159.4 | 188.1 | ||||||||||||
Selling, general and administrative | 13.8 | 16.5 | 58.9 | 61.2 | ||||||||||||
Impairment of assets | — | 79.4 | 49.7 | 79.4 | ||||||||||||
Total operating costs and expenses | 94.7 | 210.8 | 449.5 | 523.0 | ||||||||||||
Gain (loss) on the sale of commercial real estate properties | — | 1.6 | — | 51.4 | ||||||||||||
Operating Income (Loss) | 12.9 | 90.4 | (14.3 | ) | 172.8 | |||||||||||
Other Income and (Expenses): | ||||||||||||||||
Income (loss) related to joint ventures | (0.8 | ) | (10.4 | ) | 5.3 | (4.1 | ) | |||||||||
Impairment of equity method investment | — | (188.6 | ) | — | (188.6 | ) | ||||||||||
Interest and other income (expense), net | 0.4 | 0.2 | 3.2 | 2.3 | ||||||||||||
Interest expense | (7.7 | ) | (8.9 | ) | (33.1 | ) | (35.3 | ) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 4.8 | (117.3 | ) | (38.9 | ) | (52.9 | ) | |||||||||
Income tax benefit (expense) | 0.9 | (18.1 | ) | 2.0 | (16.3 | ) | ||||||||||
Income (Loss) from Continuing Operations | 5.7 | (135.4 | ) | (36.9 | ) | (69.2 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.7 | ) | (0.4 | ) | (1.5 | ) | (0.6 | ) | ||||||||
Net Income (Loss) | 5.0 | (135.8 | ) | (38.4 | ) | (69.8 | ) | |||||||||
Loss (income) attributable to noncontrolling interest | 0.2 | (0.8 | ) | 2.0 | (2.2 | ) | ||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 5.2 | $ | (136.6 | ) | $ | (36.4 | ) | $ | (72.0 | ) | |||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.08 | $ | (1.89 | ) | $ | (0.49 | ) | $ | (1.01 | ) | |||||
Discontinued operations available to A&B shareholders | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||
Net income (loss) available to A&B shareholders | $ | 0.07 | $ | (1.90 | ) | $ | (0.51 | ) | $ | (1.02 | ) | |||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.08 | $ | (1.89 | ) | $ | (0.49 | ) | $ | (1.01 | ) | |||||
Discontinued operations available to A&B shareholders | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||
Net income (loss) available to A&B shareholders | $ | 0.07 | $ | (1.90 | ) | $ | (0.51 | ) | $ | (1.02 | ) | |||||
Weighted-Average Number of Shares Outstanding: | ||||||||||||||||
Basic | 72.3 | 72.0 | 72.2 | 70.6 | ||||||||||||
Diluted | 72.5 | 72.0 | 72.2 | 70.6 | ||||||||||||
Amounts Available to A&B Common Shareholders: | ||||||||||||||||
Continuing operations available to A&B common shareholders | $ | 5.9 | $ | (136.2 | ) | $ | (35.1 | ) | $ | (71.4 | ) | |||||
Discontinued operations available to A&B common shareholders | (0.7 | ) | (0.4 | ) | (1.5 | ) | (0.6 | ) | ||||||||
Net income (loss) available to A&B common shareholders | $ | 5.2 | $ | (136.6 | ) | $ | (36.6 | ) | $ | (72.0 | ) | |||||
5
Alexander & Baldwin, Inc.
Financial Summary
Table 3 – Segment Results
($ in millions, unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Revenue: | ||||||||||||||||
Commercial Real Estate | $ | 42.0 | $ | 35.4 | $ | 160.6 | $ | 140.3 | ||||||||
Land Operations | 31.7 | 216.9 | 114.1 | 289.5 | ||||||||||||
Materials & Construction | 33.9 | 47.3 | 160.5 | 214.6 | ||||||||||||
Total operating revenue | 107.6 | 299.6 | 435.2 | 644.4 | ||||||||||||
Operating Profit (Loss): | ||||||||||||||||
Commercial Real Estate1 | 15.6 | 13.5 | 66.2 | 58.5 | ||||||||||||
Land Operations2 | 4.9 | (36.0 | ) | 20.8 | (26.7 | ) | ||||||||||
Materials & Construction | (2.5 | ) | (80.4 | ) | (69.2 | ) | (73.2 | ) | ||||||||
Total operating profit (loss) | 18.0 | (102.9 | ) | 17.8 | (41.4 | ) | ||||||||||
Gain (loss) on the sale of commercial real estate properties | — | 1.6 | — | 51.4 | ||||||||||||
Interest expense | (7.7 | ) | (8.9 | ) | (33.1 | ) | (35.3 | ) | ||||||||
General corporate expenses | (5.5 | ) | (7.1 | ) | (23.6 | ) | (27.6 | ) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 4.8 | (117.3 | ) | (38.9 | ) | (52.9 | ) | |||||||||
Income tax benefit (expense) | 0.9 | (18.1 | ) | 2.0 | (16.3 | ) | ||||||||||
Income (Loss) from Continuing Operations | 5.7 | (135.4 | ) | (36.9 | ) | (69.2 | ) | |||||||||
Income (loss) from discontinued operations | (0.7 | ) | (0.4 | ) | (1.5 | ) | (0.6 | ) | ||||||||
Net Income (Loss) | 5.0 | (135.8 | ) | (38.4 | ) | (69.8 | ) | |||||||||
Loss (income) attributable to noncontrolling interest | 0.2 | (0.8 | ) | 2.0 | (2.2 | ) | ||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 5.2 | $ | (136.6 | ) | $ | (36.4 | ) | $ | (72.0 | ) | |||||
1 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the consolidated results of operations.
2 Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments.
6
Alexander & Baldwin, Inc.
Financial Summary
Table 4 – Consolidated Statements of Cash Flows
($ in millions, unaudited)
Year Ended December 31, | |||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | (38.4 | ) | $ | (69.8 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||
Depreciation and amortization | 50.5 | 42.8 | |||||
Deferred income taxes | — | 16.6 | |||||
Loss (gain) on asset transactions, net | (2.6 | ) | (54.0 | ) | |||
Impairment of assets and equity method investments | 49.7 | 268.0 | |||||
Share-based compensation expense | 5.4 | 4.7 | |||||
(Income) loss from affiliates, net of distributions of income | (1.4 | ) | 12.9 | ||||
Changes in operating assets and liabilities: | |||||||
Trade, contracts retention, and other contract receivables | 8.5 | (4.2 | ) | ||||
Inventories | 5.7 | 5.5 | |||||
Prepaid expenses, income tax receivable and other assets | 28.5 | (13.2 | ) | ||||
Accrued pension and post-retirement benefits | 4.6 | 3.6 | |||||
Accounts payable | (12.9 | ) | (9.0 | ) | |||
Accrued and other liabilities | 3.2 | 74.2 | |||||
Real estate development for sale proceeds, net of margins recognized in net income (loss) | 65.1 | 58.4 | |||||
Expenditures for real estate development for sale | (8.3 | ) | (26.6 | ) | |||
Net cash provided by (used in) operations | 157.6 | 309.9 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures for acquisitions | (218.4 | ) | (241.7 | ) | |||
Capital expenditures for property, plant and equipment | (36.7 | ) | (54.4 | ) | |||
Proceeds from disposal of property, investments and other assets | 4.4 | 171.7 | |||||
Payments for purchases of investments in affiliates and other investments | (3.3 | ) | (22.6 | ) | |||
Distributions of capital from investments in affiliates and other investments | 13.6 | 42.3 | |||||
Net cash provided by (used in) investing activities | (240.4 | ) | (104.7 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of notes payable and other debt | 125.9 | 548.4 | |||||
Payments of notes payable and other debt and deferred financing costs | (203.9 | ) | (467.8 | ) | |||
Borrowings (payments) on line-of-credit agreement, net | (0.3 | ) | 4.7 | ||||
Distribution to noncontrolling interests | (0.3 | ) | (0.7 | ) | |||
Cash dividends paid | (50.0 | ) | (156.6 | ) | |||
Proceeds from issuance (repurchase) of capital stock and other, net | (1.0 | ) | (1.5 | ) | |||
Payment of deferred acquisition holdback | (7.1 | ) | — | ||||
Net cash provided by (used in) financing activities | (136.7 | ) | (73.5 | ) | |||
Cash, Cash Equivalents and Restricted Cash | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (219.5 | ) | 131.7 | ||||
Balance, beginning of period | 234.9 | 103.2 | |||||
Balance, end of period | $ | 15.4 | $ | 234.9 | |||
7
Alexander & Baldwin, Inc.
Financial Summary
Table 5 – Debt Summary
At December 31, 2019
($ in millions, unaudited)
Scheduled principal payments | ||||||||||||||||||||||||||||||||||
Debt | Stated Rate (%) | Weighted- average Interest Rate (%) | Maturity Date | Weighted- average Maturity (Years) | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total Principal | Unamort Deferred Fin Cost/ (Discount) Premium | Total | |||||||||||||||||||||
Secured: | ||||||||||||||||||||||||||||||||||
Kailua Town Center | (1) | 5.95% | 2021 | 1.8 | $ | 0.4 | $ | 9.8 | $ | — | $ | — | $ | — | $ | — | $ | 10.2 | $ | — | $ | 10.2 | ||||||||||||
Kailua Town Center #2 | 3.15% | 3.15% | 2021 | 1.6 | 0.1 | 4.5 | — | — | — | — | 4.6 | (0.1 | ) | 4.5 | ||||||||||||||||||||
Heavy Equipment Financing | (2) | 4.80% | (2) | 1.6 | 1.2 | 1.1 | 0.8 | 0.5 | — | — | 3.6 | — | 3.6 | |||||||||||||||||||||
Laulani Village | 3.93% | 3.93% | 2024 | 4.3 | 0.7 | 1.1 | 1.1 | 1.2 | 57.9 | — | 62.0 | (0.7 | ) | 61.3 | ||||||||||||||||||||
Pearl Highlands | 4.15% | 4.15% | 2024 | 4.7 | 1.9 | 2.0 | 2.1 | 2.2 | 75.2 | — | 83.4 | 0.8 | 84.2 | |||||||||||||||||||||
Manoa Marketplace | (3) | 3.14% | 2029 | 8.3 | 1.6 | 1.7 | 1.7 | 1.8 | 1.8 | 50.9 | 59.5 | (0.3 | ) | 59.2 | ||||||||||||||||||||
Subtotal / Wtd Ave | 3.89% | 5.3 | $ | 5.9 | $ | 20.2 | $ | 5.7 | $ | 5.7 | $ | 134.9 | $ | 50.9 | $ | 223.3 | $ | (0.3 | ) | $ | 223.0 | |||||||||||||
Unsecured: | ||||||||||||||||||||||||||||||||||
Series D Note | 6.90% | 6.90% | 2020 | 0.3 | $ | 16.2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 16.2 | $ | — | $ | 16.2 | ||||||||||||
Bank syndicated loan | (4) | 3.51% | 2023 | 3.2 | — | — | — | 50.0 | — | — | 50.0 | — | 50.0 | |||||||||||||||||||||
Series A Note | 5.53% | 5.53% | 2024 | 3.1 | — | 7.1 | 7.1 | 7.1 | 7.2 | — | 28.5 | — | 28.5 | |||||||||||||||||||||
Series J Note | 4.66% | 4.66% | 2025 | 5.3 | — | — | — | — | — | 10.0 | 10.0 | — | 10.0 | |||||||||||||||||||||
Series B Note | 5.55% | 5.55% | 2026 | 3.9 | — | 1.0 | 9.0 | 9.0 | 9.0 | 18.0 | 46.0 | — | 46.0 | |||||||||||||||||||||
Series C Note | 5.56% | 5.56% | 2026 | 3.5 | 1.0 | 9.0 | 2.0 | 2.0 | 2.0 | 7.0 | 23.0 | — | 23.0 | |||||||||||||||||||||
Series F Note | 4.35% | 4.35% | 2026 | 3.9 | 2.4 | 4.5 | — | 5.5 | 2.4 | 7.2 | 22.0 | — | 22.0 | |||||||||||||||||||||
Series H Note | 4.04% | 4.04% | 2026 | 6.9 | — | — | — | — | — | 50.0 | 50.0 | — | 50.0 | |||||||||||||||||||||
Series K Note | 4.81% | 4.81% | 2027 | 7.3 | — | — | — | — | — | 34.5 | 34.5 | (0.1 | ) | 34.4 | ||||||||||||||||||||
Series G Note | 3.88% | 3.88% | 2027 | 4.6 | 5.4 | 1.5 | 6.0 | 5.0 | 1.5 | 15.6 | 35.0 | — | 35.0 | |||||||||||||||||||||
Series L Note | 4.89% | 4.89% | 2028 | 8.3 | — | — | — | — | — | 18.0 | 18.0 | (0.2 | ) | 17.8 | ||||||||||||||||||||
Series I Note | 4.16% | 4.16% | 2028 | 9.0 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||
Term Loan 5 | 4.30% | 4.30% | 2029 | 10.0 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||
Subtotal / Wtd Ave | 4.63% | 5.3 | $ | 25.0 | $ | 23.1 | $ | 24.1 | $ | 78.6 | $ | 22.1 | $ | 210.3 | $ | 383.2 | $ | (0.3 | ) | $ | 382.9 | |||||||||||||
Revolving Credit Facilities: | ||||||||||||||||||||||||||||||||||
GLP Asphalt revolving credit facility | (5) | 3.16% | 2020 | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
A&B Revolver | (6) | 3.61% | 2022 | 3.0 | — | — | 98.7 | — | — | — | 98.7 | — | 98.7 | |||||||||||||||||||||
Subtotal / Wtd Ave | 3.61% | 3.0 | $ | — | $ | — | $ | 98.7 | $ | — | $ | — | $ | — | $ | 98.7 | $ | — | $ | 98.7 | ||||||||||||||
Total / Wtd Ave | 4.25% | 5.0 | $ | 30.9 | $ | 43.3 | $ | 128.5 | $ | 84.3 | $ | 157.0 | $ | 261.2 | $ | 705.2 | $ | (0.6 | ) | $ | 704.6 | |||||||||||||
(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. | ||||||||||||||||||||||||||||||||||
(2) Loans have stated rates ranging from 4.08% to 5.00% and stated maturity dates ranging from 2021 to 2023. | ||||||||||||||||||||||||||||||||||
(3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. | ||||||||||||||||||||||||||||||||||
(4) Loan has a stated interest rate of LIBOR plus 1.60%, based on pricing grid. | ||||||||||||||||||||||||||||||||||
(5) Loan has a stated interest rate of LIBOR plus 1.25%. | ||||||||||||||||||||||||||||||||||
(6) Loan has a stated interest rate of LIBOR plus 1.65%, based on pricing grid. | ||||||||||||||||||||||||||||||||||
8
Alexander & Baldwin, Inc.
Financial Summary
Table 6 – Capitalization & Financial Ratios
At December 31, 2019
($ in millions, except number of shares and stock price; unaudited)
Debt | |||||
Secured debt | $ | 223.0 | |||
Unsecured term debt | 382.9 | ||||
Unsecured revolving credit facility | 98.7 | ||||
Total debt (A) | 704.6 | ||||
Add: Net unamortized deferred financing cost / discount (premium) | 0.6 | ||||
Less: Cash and cash equivalents | (15.2 | ) | |||
Net Debt | $ | 690.0 | |||
Market Capitalization | Shares | Stock Price | Market Value | ||
Common stock (NYSE:ALEX) | 72,258,124 | $20.96 | $ | 1,514.5 | |
Total market capitalization (B) | $ | 1,514.5 | |||
Total Capitalization (C) = (A) + (B) | $ | 2,219.1 | |||
Debt to total capitalization (A) / (C) | 31.8 | % | |||
Liquidity | |||||
Cash on hand | $ | 15.2 | |||
Unused committed line of credit | 349.6 | ||||
Total liquidity | $ | 364.8 | |||
Financial Ratios | |||||
Net debt to Consolidated Adjusted EBITDA1 | 7.4 x | ||||
Fixed-charge coverage ratio2 | 2 x | ||||
Fixed-rate debt to total debt | 78.9 | % | |||
Unencumbered CRE Assets Ratio3 | 75.4 | % | |||
1 Consolidated Adjusted EBITDA for the year ended December 31, 2019 ($92.9 million) includes the remaining gain recognized on the bulk agricultural land sale transaction of $6.7 million in the first quarter of 2019.
2 The ratio of Consolidated Adjusted EBITDA ($92.9 million) to the sum of debt service (which includes interest payments and principal amortization of mortgage debt and excludes balloon payments, or $45.9 million) for the year ended December 31, 2019.
3 The gross book value of unencumbered CRE property ($1,149.7 million) as a percent of total CRE property ($1,524.2 million).
9
Alexander & Baldwin, Inc.
Financial Summary
Table 7 – Consolidated Metrics
($ in millions, unaudited)
Consolidated EBITDA & Consolidated Adjusted EBITDA | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Income (Loss) | $ | 5.0 | $ | (135.8 | ) | $ | (38.4 | ) | $ | (69.8 | ) | |||||
Adjustments: | ||||||||||||||||
Depreciation and amortization | 13.9 | 11.2 | 50.5 | 42.8 | ||||||||||||
Interest expense | 7.7 | 8.9 | 33.1 | 35.3 | ||||||||||||
Income tax expense (benefit) | (0.9 | ) | 18.1 | (2.0 | ) | 16.3 | ||||||||||
Consolidated EBITDA | $ | 25.7 | $ | (97.6 | ) | $ | 43.2 | $ | 24.6 | |||||||
Asset impairments related to the Materials & Construction Segment | — | 77.8 | 49.7 | 77.8 | ||||||||||||
Other-than-temporary impairment of Kukui‘ula joint venture | — | 186.8 | — | 186.8 | ||||||||||||
Consolidated Adjusted EBITDA | $ | 25.7 | $ | 167.0 | $ | 92.9 | $ | 289.2 | ||||||||
Other discrete items impacting the respective periods: | ||||||||||||||||
Loss (income) attributable to noncontrolling interest | $ | 0.2 | $ | (0.8 | ) | $ | 2.0 | $ | (2.2 | ) | ||||||
(Income) loss from discontinued operations before interest, income taxes and depreciation and amortization | 0.7 | 0.4 | 1.5 | 0.6 | ||||||||||||
Goodwill and other long-lived asset impairments | — | 79.4 | 49.7 | 79.4 | ||||||||||||
Impairment of equity method investment | — | 188.6 | — | 188.6 | ||||||||||||
Loss (gain) on sale of commercial real estate properties | — | (1.6 | ) | — | (51.4 | ) | ||||||||||
Loss (gain) on bulk agricultural land sale | — | (162.2 | ) | (6.7 | ) | (162.2 | ) | |||||||||
Consolidated SG&A | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Consolidated SG&A | ||||||||||||||||
Commercial Real Estate | $ | 2.3 | $ | 2.2 | $ | 10.1 | $ | 6.9 | ||||||||
Land Operations | 1.1 | 2.1 | 5.2 | 6.7 | ||||||||||||
Materials & Construction | 4.4 | 5.3 | 20.2 | 20.6 | ||||||||||||
Corporate and Other | 6.0 | 6.9 | 23.4 | 27.0 | ||||||||||||
Total | $ | 13.8 | $ | 16.5 | $ | 58.9 | $ | 61.2 | ||||||||
10
Commercial Real Estate
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 8 – CRE Metrics
($ in millions, unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Revenues: | ||||||||||||||||
Base rents | $ | 27.9 | $ | 24.0 | $ | 109.5 | $ | 92.8 | ||||||||
Recoveries from tenants | 9.9 | 8.9 | 37.9 | 35.6 | ||||||||||||
Other revenues | 4.2 | 2.5 | 13.2 | 11.9 | ||||||||||||
Total Commercial Real Estate operating revenues | 42.0 | 35.4 | 160.6 | 140.3 | ||||||||||||
Operating Costs and Expenses: | ||||||||||||||||
Property operations | 10.3 | 9.5 | 37.5 | 36.8 | ||||||||||||
Property taxes | 4.0 | 3.2 | 14.8 | 12.4 | ||||||||||||
Depreciation and amortization | 10.4 | 7.5 | 36.7 | 28.0 | ||||||||||||
Total Commercial Real Estate operating costs and expenses | 24.7 | 20.2 | 89.0 | 77.2 | ||||||||||||
Selling, general and administrative | (2.3 | ) | (2.2 | ) | (10.1 | ) | (6.9 | ) | ||||||||
Intersegment operating revenues1 | 0.8 | 0.7 | 2.7 | 2.6 | ||||||||||||
Interest and other income (expense), net | (0.2 | ) | (0.2 | ) | 2.0 | (0.3 | ) | |||||||||
Operating Profit (Loss) | 15.6 | 13.5 | 66.2 | 58.5 | ||||||||||||
Plus: Depreciation and amortization | 10.4 | 7.5 | 36.7 | 28.0 | ||||||||||||
Less: Straight-line lease adjustments | (0.5 | ) | (1.3 | ) | (5.1 | ) | (4.0 | ) | ||||||||
Less: Favorable/(unfavorable) lease amortization | (0.5 | ) | (0.5 | ) | (1.6 | ) | (1.9 | ) | ||||||||
Less: Termination income | — | — | (0.1 | ) | (1.1 | ) | ||||||||||
Plus: Other (income)/expense, net | 0.2 | 0.2 | (2.0 | ) | 0.3 | |||||||||||
Plus: Selling, general, administrative and other expenses | 2.3 | 2.2 | 10.1 | 6.9 | ||||||||||||
Less: Legal costs previously capitalized2 | — | — | — | (0.5 | ) | |||||||||||
Cash NOI as adjusted | 27.5 | 21.6 | 104.2 | 86.2 | ||||||||||||
Less: Cash NOI from acquisitions, dispositions, and other adjustments | (8.1 | ) | (3.1 | ) | (25.7 | ) | (11.6 | ) | ||||||||
Same-Store Cash NOI as adjusted | $ | 19.4 | $ | 18.5 | $ | 78.5 | $ | 74.6 | ||||||||
Maintenance Capital Expenditures: | ||||||||||||||||
Building improvements | $ | 2.4 | $ | 2.5 | $ | 8.5 | $ | 7.8 | ||||||||
Tenant improvements | 1.0 | 2.0 | 3.6 | 8.7 | ||||||||||||
Total maintenance capital expenditures | $ | 3.4 | $ | 4.5 | $ | 12.1 | $ | 16.5 | ||||||||
Leasing Commissions: | $ | 0.7 | $ | 1.0 | $ | 2.2 | $ | 3.2 | ||||||||
1 Represents intersegment revenues, primarily base rents and expense recoveries from leases to tenants that operate as part of the Materials & Construction segment. These operating revenues, and the related rental expense incurred by these tenants, are eliminated in the consolidated results of operations. | ||||||||||||||||
2 Represents legal costs related to leasing activity that were previously capitalized when incurred and recognized as amortization expense over the term of the lease contract. Upon the Company's adoption of ASC 842, Leases, on January 1, 2019, such legal costs are directly expensed as operating costs and are included in Cash NOI. For comparability purposes, Cash NOI for the 2018 periods presented has been adjusted to include legal fees in conformity with Cash NOI for the 2019 periods presented. | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Commercial Real Estate Operating Profit (Loss) | $ | 15.6 | $ | 13.5 | $ | 66.2 | $ | 58.5 | ||||||||
Depreciation and amortization | 10.4 | 7.5 | 36.7 | 28.0 | ||||||||||||
Commercial Real Estate EBITDA | $ | 26.0 | $ | 21.0 | $ | 102.9 | $ | 86.5 | ||||||||
11
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 9 – Occupancy
(Unaudited)
Occupancy | ||||||
As of December 31, 2019 | As of December 31, 2018 | Percentage Point Change | ||||
Retail | 93.3% | 93.4% | (0.1) | |||
Industrial | 95.3% | 90.1% | 5.2 | |||
Office | 90.9% | 93.8% | (2.9) | |||
Total | 93.9% | 92.4% | 1.5 | |||
Same-Store Occupancy | ||||||
As of December 31, 2019 | As of December 31, 2018 | Percentage Point Change | ||||
Retail | 94.4% | 93.3% | 1.1 | |||
Industrial | 94.1% | 90.1% | 4.0 | |||
Office | 90.9% | 93.8% | (2.9) | |||
Total | 94.1% | 92.2% | 1.9 | |||
12
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 10 – Cash NOI and Same-Store Cash NOI by Type
($ in thousands, unaudited)
Total Portfolio Cash NOI | ||||||||||||||||||||
Three Months Ended December 31, | Percentage Change | Year Ended December 31, | Percentage Change | |||||||||||||||||
2019 | 20181 | 2019 | 20181 | |||||||||||||||||
Retail | $ | 17,856 | $ | 14,476 | 23.3% | $ | 68,983 | $ | 56,078 | 23.0% | ||||||||||
Industrial | 4,423 | 3,200 | 38.2% | 16,586 | 12,740 | 30.2% | ||||||||||||||
Ground | 4,219 | 2,890 | 46.0% | 14,911 | 11,673 | 27.7% | ||||||||||||||
Office | 986 | 1,000 | (1.4)% | 3,758 | 4,183 | (10.2)% | ||||||||||||||
Total Hawai‘i Portfolio | $ | 27,484 | $ | 21,566 | 27.4% | $ | 104,238 | $ | 84,674 | 23.1% | ||||||||||
Other | 12 | 55 | NM | (2 | ) | 1,537 | NM | |||||||||||||
Total | $ | 27,496 | $ | 21,621 | 27.2% | $ | 104,236 | $ | 86,211 | 20.9% | ||||||||||
Same-Store Cash NOI | ||||||||||||||||||||
Three Months Ended December 31, | Percentage Change | Year Ended December 31, | Percentage Change | |||||||||||||||||
2019 | 20181 | 2019 | 20181 | |||||||||||||||||
Retail | $ | 11,740 | $ | 11,405 | 2.9% | $ | 49,046 | $ | 46,417 | 5.7% | ||||||||||
Industrial | 3,459 | 3,179 | 8.8% | 13,802 | 12,719 | 8.5% | ||||||||||||||
Ground | 3,180 | 2,893 | 9.9% | 11,928 | 11,463 | 4.1% | ||||||||||||||
Office | 987 | 1,000 | (1.3)% | 3,755 | 4,044 | (7.1)% | ||||||||||||||
Total | $ | 19,366 | $ | 18,477 | 4.8% | $ | 78,531 | $ | 74,643 | 5.2% | ||||||||||
1 Upon the Company's adoption of ASC 842, Leases, on January 1, 2019, Cash NOI now includes the impact of legal fees that are not directly related to lease execution. Historically, these legal costs were capitalized and amortized over the lease term. For comparability purposes, the Company adjusted 2018 Cash NOI to also include legal fees, see Table 8 for reconciliation. |
Changes in Same-Store portfolio as it relates to the comparable prior period and the current period are as follows:
Additions | |
Date | Property |
6/17 | Honokohau Industrial |
13
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 11 – Improved Property Report
($ in thousands, except per square foot amounts; unaudited)
Property | Island | Year Built/ Renovated | Current GLA (SF) | Occupancy | ABR | ABR PSF | 2019 Cash NOI | 2019 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Retail: | ||||||||||||||||||
1 | Pearl Highlands Center | (1) | Oahu | 1992-1994 | 411,400 | 99.8 % | $ | 11,236 | $ | 27.38 | $ | 10,456 | 11.7% | Sam's Club, Regal Cinemas, 24 Hour Fitness, Ulta Salon | ||||
2 | Kailua Retail | (1)(3) | Oahu | 1947-2014 | 319,100 | 96.5 % | 11,251 | 36.81 | 11,661 | 13.1% | Whole Foods Market, Foodland, CVS/Longs Drugs, Ulta Salon | |||||||
3 | Laulani Village | Oahu | 2012 | 175,800 | 99.3 % | 6,415 | 37.09 | 6,119 | 6.9% | Safeway, Ross, Walgreens, Petco | ||||||||
4 | Waianae Mall | (1) | Oahu | 1975 | 170,300 | 87.0 % | 3,068 | 20.72 | 2,674 | 3.1% | CVS/Longs Drugs, City Mill | |||||||
5 | Manoa Marketplace | (1) | Oahu | 1977 | 140,900 | 85.2 % | 3,922 | 33.14 | 4,046 | 4.5% | Safeway, CVS/Longs Drugs | |||||||
6 | Queens' MarketPlace | Hawai‘i Island | 2007 | 134,700 | 90.1 % | 5,426 | 53.71 | 3,324 | 3.7% | Island Gourmet | ||||||||
7 | Kaneohe Bay Shopping Center (Leasehold) | (1) | Oahu | 1971 | 125,400 | 100.0 % | 3,125 | 24.92 | 2,668 | 3.0% | Safeway, CVS/Longs Drugs | |||||||
8 | Pu‘unene Shopping Center | Maui | 2017 | 120,500 | 64.6 % | 3,284 | 46.35 | 2,863 | 3.2% | Planet Fitness, Petco, Ulta Salon, Target (shadow-anchored) | ||||||||
9 | Hokulei Village | Kauai | 2015 | 119,200 | 98.2 % | 4,093 | 35.23 | 3,870 | 4.3% | Safeway, Petco | ||||||||
10 | Waipio Shopping Center | (1) | Oahu | 1986, 2004 | 113,800 | 100.0 % | 3,303 | 29.02 | 3,590 | 4.0% | Foodland | |||||||
11 | Aikahi Park Shopping Center | (1) | Oahu | 1971 | 98,000 | 82.1 % | 1,951 | 24.49 | 2,113 | 2.4% | Safeway | |||||||
12 | Lanihau Marketplace | (1) | Hawai‘i Island | 1987 | 88,300 | 94.6 % | 1,747 | 20.90 | 1,447 | 1.6% | Sak' N Save, CVS/Longs Drugs | |||||||
13 | The Shops at Kukui‘ula | (1) | Kauai | 2009 | 86,100 | 93.0 % | 4,121 | 54.70 | 3,996 | 4.5% | CVS/Longs Drugs, Eating House, Living Foods Market | |||||||
14 | Kunia Shopping Center | (1) | Oahu | 2004 | 60,600 | 95.0 % | 2,345 | 40.74 | 2,378 | 2.7% | ||||||||
15 | Waipouli Town Center | Kauai | 1980 | 56,600 | 93.9 % | 948 | 17.84 | 684 | 0.8% | Foodland | ||||||||
16 | Lau Hala Shops | (3) | Oahu | 2018 | 46,300 | 100.0 % | 2,652 | 57.32 | 1,778 | 2.0% | UFC Gym, Down to Earth | |||||||
17 | Napili Plaza | (1) | Maui | 1991 | 45,600 | 87.6 % | 1,221 | 30.56 | 1,262 | 1.4% | Napili Market | |||||||
18 | Kahului Shopping Center | (1) | Maui | 1951 | 45,300 | 93.6 % | 672 | 15.83 | 300 | 0.3% | ||||||||
19 | Gateway at Mililani Mauka | (1) | Oahu | 2008, 2013 | 34,900 | 93.2 % | 1,825 | 56.19 | 1,812 | 2.0% | CVS/Longs Drugs (shadow-anchored) | |||||||
20 | Port Allen Marina Center | (1) | Kauai | 2002 | 23,600 | 92.0 % | 591 | 27.27 | 642 | 0.7% | ||||||||
21 | The Collection | Oahu | 2017 | 12,000 | 100.0 % | 559 | 46.64 | 367 | 0.4% | |||||||||
22 | Ho‘okele Shopping Center | (2) | Maui | 2019 | 69,100 | N/A | — | — | 927 | 1.0% | Safeway | |||||||
Subtotal – Retail | 2,497,500 | 93.3% | $ | 73,755 | $ | 33.12 | $ | 68,977 | 77.3% | |||||||||
Industrial: | ||||||||||||||||||
23 | Komohana Industrial Park | (1) | Oahu | 1990 | 238,300 | 87.0 % | $ | 2,669 | $ | 12.87 | $ | 4,225 | 4.7% | |||||
24 | Kaka‘ako Commerce Center | (1) | Oahu | 1969 | 201,100 | 93.3 % | 2,544 | 14.40 | 2,260 | 2.5% | ||||||||
25 | Waipio Industrial | (1) | Oahu | 1988-1989 | 158,400 | 98.8 % | 2,514 | 16.07 | 2,548 | 2.9% | ||||||||
26 | Opule Industrial | Oahu | 2005-2006, 2018 | 151,500 | 100.0 % | 2,320 | 15.31 | 1,901 | 2.1% | |||||||||
27 | P&L Warehouse | (1) | Maui | 1970 | 104,100 | 100.0 % | 1,492 | 14.53 | 1,439 | 1.6% | ||||||||
28 | Kapolei Enterprise Center | Oahu | 2019 | 93,000 | 100.0 % | 1,507 | 16.19 | 883 | 1.0% | |||||||||
29 | Honokohau Industrial | (1) | Hawai‘i Island | 2004-2006, 2008 | 86,500 | 100.0 % | 1,197 | 13.84 | 1,150 | 1.4% | ||||||||
30 | Kailua Industrial/Other | (1) | Oahu | 1951-1974 | 69,000 | 93.4 % | 1,116 | 17.85 | 922 | 1.0% | ||||||||
31 | Port Allen | (1) | Kauai | 1983, 1993 | 63,800 | 100.0 % | 739 | 11.58 | 736 | 0.8% | ||||||||
32 | Harbor Industrial | (1) | Maui | 1930 | 51,100 | 87.2 % | 538 | 12.08 | 522 | 0.6% | ||||||||
Subtotal – Industrial | 1,216,800 | 95.3% | $ | 16,636 | $ | 14.53 | $ | 16,586 | 18.6% | |||||||||
14
Property | Island | Year Built/ Renovated | Current GLA (SF) | Occupancy | ABR | ABR PSF | 2019 Cash NOI | 2019 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Office: | ||||||||||||||||||
33 | Kahului Office Building | (1) | Maui | 1974 | 59,400 | 87.4% | $ | 1,496 | $ | 30.44 | $ | 1,385 | 1.6% | |||||
34 | Gateway at Mililani Mauka South | (1) | Oahu | 1992, 2006 | 37,100 | 100.0 % | 1,641 | 44.18 | 1,419 | 1.6% | ||||||||
35 | Kahului Office Center | (1) | Maui | 1991 | 33,400 | 87.7% | 765 | 26.09 | 737 | 0.7% | ||||||||
36 | Lono Center | (1) | Maui | 1973 | 13,700 | 88.9% | 305 | 25.10 | 214 | 0.2% | ||||||||
Subtotal – Office | 143,600 | 90.9% | $ | 4,207 | $ | 32.93 | $ | 3,755 | 4.1% | |||||||||
Total – Hawai‘i Improved Portfolio | 3,857,900 | 93.9% | $ | 94,598 | $ | 27.03 | $ | 89,318 | 100.0% | |||||||||
(1) Included in the Same-Store pool. | ||||||||||||||||||
(2) Development completed but not yet stabilized. Upon initial stabilization the property will be included in Occupancy. NOI not included in Same-Store portfolio. | ||||||||||||||||||
(3) In prior periods, Lau Hala was combined into Kailua Retail. However, starting in the prior period Supplemental Information for the three and six months ended June 30, 2019, we began presenting information for Lau Hala separately and excluded such Lau Hala information from Kailua Retail. | ||||||||||||||||||
15
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 12 – Ground Lease Report
($ in thousands, unaudited)
Property Name (1) | Location (City, Island) | Acres | Property Type | Exp. Year | Current ABR | 2019 Cash NOI | Next Rent Step | Step Type | Next ABR ($ in $000) | Previous Rent Step | Previous Step Type | Previous ABR ($ in $000) | |||||||||
1 | Windward City Shopping Center | (2) | Kaneohe, Oahu | 15.4 | Retail | 2035 | $ | 2,800 | $ | 2,800 | 2023 | FMV Reset | FMV | 2017 | Fixed Step | $ | 2,100 | ||||
2 | Owner/Operator | Kapolei, Oahu | 36.4 | Industrial | 2025 | 2,271 | 1,527 | 2020 | Fixed Step | 2,328 | 2019 | Fixed Step | 2,216 | ||||||||
3 | Owner/Operator | Honolulu, Oahu | 9.0 | Retail | 2045 | 1,886 | 1,453 | 2020 | Fixed Step | 2,075 | — | Fixed Step | 1,715 | ||||||||
4 | Kaimuki Shopping Center | (2) | Honolulu, Oahu | 2.8 | Retail | 2040 | 1,344 | 1,335 | 2020 | FMV Reset | FMV | 2016 | Fixed Step | 1,296 | |||||||
5 | S&F Industrial | (2) | Pu‘unene, Maui | 52.0 | Heavy Industrial | 2059 | 1,275 | 1,161 | 2024 | Fixed Step | 1,433 | 2019 | Fixed Step | 751 | |||||||
6 | Owner/Operator | (2) | Kaneohe, Oahu | 3.7 | Retail | 2048 | 990 | 989 | 2023 | Fixed Step | 1,059 | 2018 | Option | 694 | |||||||
7 | Windward Town and Country Plaza I | (2) | Kailua, Oahu | 3.4 | Retail | 2062 | 753 | 753 | 2022 | Fixed Step | 963 | 2012 | FMV Reset | 160 | |||||||
8 | Windward Town and Country Plaza II | (2) | Kailua, Oahu | 2.2 | Retail | 2062 | 485 | 485 | 2022 | Fixed Step | 621 | 2012 | FMV Reset | N/A | |||||||
9 | Owner/Operator | (2) | Kailua, Oahu | 1.9 | Retail | 2034 | 450 | 391 | 2024 | Fixed Step | 470 | 2019 | Negotiated | 641 | |||||||
10 | Owner/Operator | (2) | Honolulu, Oahu | 0.5 | Retail | 2028 | 348 | 354 | 2020 | Fixed Step | 357 | 2019 | Fixed Step | 340 | |||||||
11 | Owner/Operator | (2) | Honolulu, Oahu | 0.5 | Parking | 2023 | 319 | 314 | 2020 | Fixed Step | 329 | 2019 | Fixed Step | 310 | |||||||
12 | Pali Palms Plaza | (2) | Kailua, Oahu | 3.3 | Office | 2037 | 257 | 275 | 2022 | FMV Reset | FMV | 2012 | Negotiated | 226 | |||||||
13 | Seven-Eleven Kailua Center | (2) | Kailua, Oahu | 0.9 | Retail | 2033 | 243 | 243 | 2020 | Fixed Step | 248 | 2019 | FMV Reset | 181 | |||||||
14 | Owner/Operator | (2) | Kahului, Maui | 0.8 | Retail | 2026 | 242 | 237 | 2020 | Fixed Step | 249 | 2019 | Fixed Step | 235 | |||||||
15 | Owner/Operator | (2) | Kailua, Oahu | 1.2 | Retail | 2022 | 237 | 222 | — | — | — | 2013 | FMV Reset | 120 | |||||||
16 | Owner/Operator | (2) | Kahului, Maui | 0.4 | Retail | 2020 | 214 | 210 | Option | Fixed Step | 220 | 2019 | Fixed Step | 207 | |||||||
17 | Owner/Operator | (2) | Kahului, Maui | 0.8 | Industrial | 2020 | 200 | 197 | 2020 | Option | 209 | 2019 | Fixed Step | 192 | |||||||
18 | Owner/Operator | (2) | Kahului, Maui | 0.5 | Retail | 2029 | 173 | 298 | 2020 | Fixed Step | 179 | 2019 | Fixed Step | 168 | |||||||
19 | Owner/Operator | (2) | Kahului, Maui | 0.4 | Retail | 2027 | 158 | 239 | 2022 | Fixed Step | 181 | 2017 | Negotiated | 128 | |||||||
20 | Owner/Operator | (2) | Kailua, Oahu | 0.4 | Retail | 2022 | 151 | 151 | 2020 | Fixed Step | 158 | 2019 | Negotiated | 144 | |||||||
Remainder | (2) | Various | 17.3 | Various | Various | 1,336 | 1,277 | Various | Various | — | — | — | — | ||||||||
Total - Ground Leases | 153.8 | $ | 16,132 | $ | 14,911 | ||||||||||||||||
(1) Excludes intersegment ground leases, primarily from our Materials & Construction segment, which are eliminated in our consolidated results of operations. | |||||||||||||||||||||
(2) Included in Same-Store pool. | |||||||||||||||||||||
16
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 13 – Top 10 Tenants Ranked by ABR
($ in thousands, unaudited)
Tenant1 | Number of Leases | ABR | % of Total Improved Portfolio ABR | GLA (SF) | % of Total Improved Portfolio GLA | ||||||||||
Albertsons Companies (including Safeway) | 7 | $ | 6,853 | 7.2 | % | 286,024 | 7.4 | % | |||||||
Sam's Club | 1 | 3,308 | 3.5 | % | 180,908 | 4.7 | % | ||||||||
CVS Corporation (including Longs Drugs) | 6 | 2,752 | 2.9 | % | 150,411 | 3.9 | % | ||||||||
Foodland Supermarket & related companies | 10 | 2,608 | 2.8 | % | 146,901 | 3.8 | % | ||||||||
Ross Dress for Less | 2 | 1,992 | 2.1 | % | 65,484 | 1.7 | % | ||||||||
Coleman World Group | 2 | 1,780 | 1.9 | % | 115,495 | 3.0 | % | ||||||||
Ulta Salon, Cosmetics, & Fragrance, Inc. | 3 | 1,508 | 1.6 | % | 33,985 | 0.9 | % | ||||||||
24 Hour Fitness USA | 1 | 1,375 | 1.5 | % | 45,870 | 1.2 | % | ||||||||
Petco Animal Supplies Stores | 3 | 1,316 | 1.3 | % | 34,282 | 0.9 | % | ||||||||
Whole Foods Market | 1 | 1,210 | 1.3 | % | 31,647 | 0.8 | % | ||||||||
Total | 36 | $ | 24,702 | 26.1 | % | 1,091,007 | 28.3 | % | |||||||
1 Excludes intersegment ground leases, primarily from the Materials & Construction segment, which are eliminated in the consolidated results of operations. | |||||||||||||||
17
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 14 – Lease Expiration Schedule
At December 31, 2019
($ in thousands, unaudited)
Total Improved Portfolio | ||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Improved Portfolio Leased GLA | ABR Expiring | % of Total Improved Portfolio Expiring ABR | |||||||
2020 | 147 | 469,191 | 13.2% | $ | 10,434 | 10.0% | ||||||
2021 | 161 | 600,189 | 16.9% | 15,040 | 14.4% | |||||||
2022 | 169 | 399,427 | 11.2% | 13,000 | 12.5% | |||||||
2023 | 114 | 266,212 | 7.5% | 9,046 | 8.7% | |||||||
2024 | 78 | 436,011 | 12.3% | 12,462 | 11.9% | |||||||
2025 | 30 | 153,365 | 4.3% | 4,864 | 4.7% | |||||||
2026 | 21 | 179,077 | 5.0% | 4,663 | 4.5% | |||||||
2027 | 24 | 155,882 | 4.4% | 4,679 | 4.5% | |||||||
2028 | 37 | 237,143 | 6.7% | 9,737 | 9.3% | |||||||
Thereafter | 52 | 541,899 | 15.2% | 17,452 | 16.7% | |||||||
Month-to-month | 96 | 117,934 | 3.3% | 2,935 | 2.8% | |||||||
Total | 929 | 3,556,330 | 100.0% | $ | 104,312 | 100.0% | ||||||
Retail Portfolio | ||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Retail Leased GLA | ABR Expiring | % of Total Retail Expiring ABR | |||||||
2020 | 90 | 254,120 | 11.2% | $ | 6,993 | 8.7% | ||||||
2021 | 96 | 347,670 | 15.3% | 11,070 | 13.7% | |||||||
2022 | 118 | 222,567 | 9.8% | 9,841 | 12.2% | |||||||
2023 | 90 | 205,299 | 9.1% | 8,054 | 10.0% | |||||||
2024 | 64 | 364,579 | 16.1% | 11,169 | 13.9% | |||||||
2025 | 26 | 78,142 | 3.4% | 3,409 | 4.2% | |||||||
2026 | 15 | 24,252 | 1.1% | 1,434 | 1.8% | |||||||
2027 | 22 | 78,290 | 3.5% | 3,137 | 3.9% | |||||||
2028 | 33 | 192,235 | 8.5% | 8,795 | 10.9% | |||||||
Thereafter | 46 | 443,180 | 19.6% | 14,881 | 18.5% | |||||||
Month-to-month | 52 | 55,919 | 2.4% | 1,856 | 2.2% | |||||||
Total | 652 | 2,266,253 | 100.0% | $ | 80,639 | 100.0% | ||||||
Industrial Portfolio | ||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Industrial Leased GLA | ABR Expiring | % of Total Industrial Expiring ABR | |||||||
2020 | 49 | 195,602 | 16.9% | $ | 2,780 | 14.7% | ||||||
2021 | 51 | 230,250 | 19.9% | 3,327 | 17.5% | |||||||
2022 | 41 | 158,794 | 13.7% | 2,520 | 13.3% | |||||||
2023 | 18 | 51,014 | 4.4% | 725 | 3.8% | |||||||
2024 | 9 | 55,968 | 4.8% | 890 | 4.7% | |||||||
2025 | 3 | 69,902 | 6.0% | 1,271 | 6.7% | |||||||
2026 | 5 | 140,741 | 12.1% | 2,416 | 12.7% | |||||||
2027 | 1 | 75,824 | 6.5% | 1,438 | 7.6% | |||||||
2028 | 1 | 40,505 | 3.5% | 793 | 4.2% | |||||||
Thereafter | 4 | 86,921 | 7.5% | 2,032 | 10.7% | |||||||
Month-to-month | 38 | 54,027 | 4.7% | 784 | 4.1% | |||||||
Total | 220 | 1,159,548 | 100.0% | $ | 18,976 | 100.0% | ||||||
18
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 15 – New & Renewed Lease Summary
At December 31, 2019
(Unaudited)
Comparable Leases Only1 | ||||||||||||||||||||
Total - New and Renewed Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||
4th Quarter 2019 | 52 | 124,021 | $ | 28.24 | $ | 17.11 | 7.7 | 29 | 43,003 | $ | 37.14 | $ | 34.19 | 8.6% | ||||||
3rd Quarter 2019 | 55 | 114,061 | $ | 26.62 | $ | 1.97 | 3.7 | 35 | 77,276 | $ | 29.72 | $ | 28.04 | 6.0% | ||||||
2nd Quarter 2019 | 53 | 207,602 | $ | 25.47 | $ | 3.40 | 4.7 | 36 | 106,247 | $ | 27.82 | $ | 25.88 | 7.5% | ||||||
1st Quarter 2019 | 54 | 119,763 | $ | 28.49 | $ | 8.41 | 3.7 | 32 | 74,622 | $ | 24.83 | $ | 22.51 | 10.3% | ||||||
Trailing four quarters | 214 | 565,447 | $ | 26.95 | $ | 7.18 | 4.9 | 132 | 301,148 | $ | 28.90 | $ | 26.78 | 7.9% | ||||||
Total - New Leases | Leases | GLA Unit Area | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||
4th Quarter 2019 | 23 | 78,101 | $ | 22.37 | $ | 26.71 | 9.7 | 3 | 3,835 | $ | 25.55 | $ | 17.62 | 45.0% | ||||||
3rd Quarter 2019 | 23 | 40,300 | $ | 21.05 | $ | 3.91 | 3.2 | 6 | 7,588 | $ | 32.76 | $ | 31.30 | 4.7% | ||||||
2nd Quarter 2019 | 16 | 98,348 | $ | 24.02 | $ | 3.76 | 3.5 | 4 | 14,373 | $ | 27.68 | $ | 24.69 | 12.1% | ||||||
1st Quarter 2019 | 29 | 55,851 | $ | 34.26 | $ | 18.03 | 4.2 | 7 | 10,710 | $ | 33.10 | $ | 30.49 | 8.6% | ||||||
Trailing four quarters | 91 | 272,600 | $ | 25.21 | $ | 13.28 | 5.4 | 20 | 36,506 | $ | 30.10 | $ | 27.02 | 11.4% | ||||||
Total - Renewed Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread2 | ||||||||||
4th Quarter 2019 | 29 | 45,920 | $ | 38.23 | $ | 0.78 | 4.3 | 26 | 39,168 | $ | 38.27 | $ | 35.81 | 6.9% | ||||||
3rd Quarter 2019 | 32 | 73,761 | $ | 29.66 | $ | 0.91 | 4.0 | 29 | 69,688 | $ | 29.38 | $ | 27.68 | 6.2% | ||||||
2nd Quarter 2019 | 37 | 109,254 | $ | 26.78 | $ | 3.07 | 5.7 | 32 | 91,874 | $ | 27.85 | $ | 26.06 | 6.8% | ||||||
1st Quarter 2019 | 25 | 63,912 | $ | 23.44 | $ | — | 3.3 | 25 | 63,912 | $ | 23.44 | $ | 21.18 | 10.7% | ||||||
Trailing four quarters | 123 | 292,847 | $ | 28.57 | $ | 1.50 | 4.5 | 112 | 264,642 | $ | 28.73 | $ | 26.75 | 7.4% | ||||||
Three Months Ended December 31, 2019 | Year Ended December 31, 2019 | |||||||||||||||||||
Leases | GLA | ABR/SF | Rent Spread2 | Leases | GLA | ABR/SF | Rent Spread2 | |||||||||||||
Retail | 35 | 91,698 | $ | 31.24 | 11.5% | Retail | 113 | 239,887 | $ | 41.02 | 8.8% | |||||||||
Industrial | 14 | 23,755 | $ | 16.78 | 2.7% | Industrial | 83 | 285,719 | $ | 14.95 | 7.0% | |||||||||
Office | 3 | 8,568 | $ | 27.90 | 0.7% | Office | 18 | 39,841 | $ | 28.32 | 5.3% | |||||||||
1 Per Glossary of Terms, Comparable Leases are either renewals or new leases executed for units that have been vacated in the previous 12 months for comparable space and comparable lease terms. Expansions, contractions and strategic short-term renewals are excluded from the Comparable Lease pool.
.
2 Rent Spread is calculated for Comparable Leases, a subset of the total population of new and renewed leases for the period defined.
19
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 16 – Portfolio Repositioning, Redevelopment & Development Summary
At December 31, 2019
($ in millions, unaudited)
Leasing Activity | ||||||||||||
Project1 | Phase | Target In-service | Target Stabilization | Book Value of Land & Related Costs | Total Estimated Project Capital Costs & Contributed Land Basis | Project Capital Costs Incurred to Date | Estimated Incremental Stabilized Cash NOI | Estimated Stabilized Yield on Total Project Capital Costs | Projected GLA (SF) | % Leased | % Under Letter of Intent | Total |
Redevelopment | ||||||||||||
Aikahi Park Shopping Center | Pre-construction | Mid 2021 | 4Q21 | N/A | $18.0 - $18.8 | $1.1 | $1.5 - $1.7 | 8.2 - 9.0% | 98,000 | 82 | 6 | 88 |
1 During 2019, Ho‘okele Shopping Center (a center that was being developed on a parcel adjacent to Maui Business Park and was included in this table in prior periods) was divided into two phases. Phase 1, which contemplates a Safeway, gas station, and related shops, commenced operations in Q3 2019 and was included in Table 11 - Improved Property Report in this period. Phase 2 will commence development at a later time pending the attainment of lease commitments for the future space and will be considered for inclusion in this table at that future time. | ||||||||||||
20
Alexander & Baldwin, Inc.
Commercial Real Estate
Table 17 – Transactional Activity (2018- 2019)
($ in millions, unaudited)
Dispositions | ||||||||
Property | Type | Location (Island/City, State) | Date (Month/Year) | Sales Price | GLA (SF) | |||
Lahaina Square | Retail | Maui, HI | 11/18 | $ | 11.3 | 44,800 | ||
Judd Building | Office | Oahu, HI | 3/18 | 6.0 | 20,200 | |||
Stangenwald Building | Office | Oahu, HI | 3/18 | 7.2 | 27,100 | |||
Sparks Business Center | Industrial | Sparks, Nevada | 3/18 | 38.3 | 396,100 | |||
Kaiser Permanente | Ground Lease | Maui, HI | 3/18 | 21.5 | N/A | |||
Royal MacArthur Center | Retail | Dallas, TX | 3/18 | 14.2 | 44,900 | |||
Little Cottonwood Shopping Center | Grocery Anchored | Sandy, UT | 3/18 | 23.4 | 141,500 | |||
1800 and 1820 Preston Park | Office | Plano, TX | 3/18 | 24.1 | 198,800 | |||
Deer Valley Financial Center | Office | Phoenix, AZ | 2/18 | 15.0 | 126,600 | |||
Concorde Commerce Center | Office | Phoenix, AZ | 1/18 | 9.5 | 138,700 | |||
Total | $ | 170.5 | 1,138,700 | |||||
Acquisitions | ||||||||
Property | Type | Location (Island/City, State) | Date (Month/Year) | Purchase Price | GLA (SF) | |||
Queens' MarketPlace | Retail | Hawai‘i Island, HI | 5/19 | $ | 90.3 | 134,700 | ||
Waipouli Town Center | Retail | Kauai, HI | 5/19 | 17.8 | 56,600 | |||
Kapolei Business Park West | Ground Lease | Oahu, HI | 4/19 | 41.1 | N/A | |||
Kapolei Enterprise Center | Industrial | Oahu, HI | 4/19 | 26.8 | 93,000 | |||
Home Depot Iwilei | Ground Lease | Oahu, HI | 3/19 | 42.4 | N/A | |||
Opule Street Industrial | Industrial | Oahu, HI | 12/18 | 40.0 | 151,500 | |||
The Collection | Retail | Oahu, HI | 7/18 | 6.9 | 12,000 | |||
Laulani Village | Retail | Oahu, HI | 2/18 | 124.4 | 175,600 | |||
Hokulei Village | Retail | Kauai, HI | 2/18 | 68.7 | 119,200 | |||
Pu‘unene Shopping Center | Retail | Maui, HI | 2/18 | 63.6 | 120,400 | |||
Total | $ | 522.0 | 863,000 | |||||
21
Land Operations
Alexander & Baldwin, Inc.
Land Operations
Table 18 – Statement of Operating Profit, EBITDA and Adjusted EBITDA
($ in millions, unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Development sales revenue | $ | 26.0 | $ | 11.5 | $ | 57.2 | $ | 54.3 | ||||||||
Unimproved/other property sales revenue | — | 199.0 | 32.4 | 210.5 | ||||||||||||
Other operating revenues1 | 5.7 | 6.4 | 24.5 | 24.7 | ||||||||||||
Total Land Operations operating revenue | $ | 31.7 | $ | 216.9 | $ | 114.1 | $ | 289.5 | ||||||||
Land operations operating costs and expenses | (25.3 | ) | (52.2 | ) | (97.9 | ) | (124.0 | ) | ||||||||
Impairment of assets | — | (1.6 | ) | — | (1.6 | ) | ||||||||||
Impairment of equity method investment | — | (188.6 | ) | — | (188.6 | ) | ||||||||||
Earnings (loss) from joint ventures | (1.4 | ) | (10.7 | ) | 3.9 | (4.7 | ) | |||||||||
Interest and other income (expense), net | (0.1 | ) | 0.2 | 0.7 | 2.7 | |||||||||||
Land Operations operating profit (loss) | $ | 4.9 | $ | (36.0 | ) | $ | 20.8 | $ | (26.7 | ) | ||||||
1 Other operating revenues includes revenue related to trucking, renewable energy and diversified agriculture.
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Land Operations Operating Profit (Loss) | $ | 4.9 | $ | (36.0 | ) | $ | 20.8 | $ | (26.7 | ) | ||||||
Land Operations depreciation and amortization | 0.4 | 0.5 | 1.6 | 1.9 | ||||||||||||
Land Operations EBITDA | 5.3 | (35.5 | ) | 22.4 | (24.8 | ) | ||||||||||
Other-than-temporary impairment of Kukui‘ula joint venture | — | 186.8 | — | 186.8 | ||||||||||||
Land Operations Adjusted EBIDTA | $ | 5.3 | $ | 151.3 | $ | 22.4 | $ | 162.0 | ||||||||
22
Alexander & Baldwin, Inc.
Land Operations
Table 19 – Key Active Development-for-sale Projects and Investments
At December 31, 2019
($ in millions except per square foot amounts, unaudited)
Construction Timing | Sales Closing Timing | ||||||||||||||||||||||||||||
Project | Location | Product Type | Est. Economic Interest1 | Planned Units or Saleable Acres | Avg Size of Remaining Units (SF) or Lots (Acres) | Units/ Acres Closed | Unit/ Acres Remaining | Target Sales Price Range per SF/per Unit for Remaining | Est. Total Project/ Investment Cost2 | A&B Projected Capital Commitment3 | Total Project Costs Incurred to Date | A&B Gross Investment (Life to Date) | A&B Net Book Value | Start / Est. Start | Est. Substantial Completion | Start / Est. Start | Est. End | ||||||||||||
Maui Business Park (Phase II) | Kahului, Maui | Light industrial lots | 100% | 125 acres | 1.9 acres | 44 acres | 81 acres | $38-$60 per SF | $ | 91 | N/A | $ | 59 | $ | 59 | $ | 32 | 2011 | 2021 | 2012 | 2030+ | ||||||||
Kukui‘ula | Poipu, Kauai | Resort residential | 85% +/- 5% | 1,425 units | N/A | 221 units | 1204 units | $1.1M per unit | $ | 1,071 | $ | 343 | $ | 635 | $ | 323 | $ | 116 | 2006 | 2041 | 2006 | 2042 | |||||||
Other Kukui‘ula Related Investments4 5 | Poipu, Kauai | Resort residential | 75% +/- 5% | 58 units | N/A | 39 units | 19 units | $1.7M per unit | $ | 102 | $ | 53 | $ | 79 | $ | 52 | $ | 21 | 2012 | 2018 | 2013 | 2021 | |||||||
1 Estimated economic interest represents the Company's estimated share of distributions after return of capital contributions based on current forecasts of sales activity. Actual results could differ materially from projected results due to the timing of expected sales, increases or decreases in estimated sales prices or costs and other factors. As a result, estimated economic interests are subject to change. Further, as it relates to certain of our joint venture projects, information disclosed herein is obtained from our joint venture partners, who maintain the books and records of the related ventures. | |||||||||||||||||||||||||||||
2 Includes land cost at book value, including capitalized interest, but excluding sales commissions and closing costs. | |||||||||||||||||||||||||||||
3 Includes land cost at contribution value and total expected A&B capital to be contributed. The estimate includes due diligence costs and capitalized interest, but excludes capital projected to be contributed by equity partners, third-party debt, and amounts expected to be funded from project cash flows and/or buyer deposits. | |||||||||||||||||||||||||||||
4 Includes joint venture investments in two vertical construction, development-for-sale projects at Kukui‘ula, as well as notes receivable from a Kukui‘ula development-for-sale project ($13.1 million as of December 31, 2019). Prior to Q3 2019, a third joint venture investment in a vertical construction, development-for-sale project was included, however all units in this project were sold and the joint venture activity was closed. All related information from this joint venture was removed from this table. | |||||||||||||||||||||||||||||
5 In 2019, management of the joint venture investments revised its strategic plans for the future development and marketing of land and units in the project. Such process resulted in an increase to the total planned units for the project and also revisions to the target sales price per unit and estimated total project cost as well as the expected sales closing estimated end dates. | |||||||||||||||||||||||||||||
23
Alexander & Baldwin, Inc.
Land Operations
Table 20 – Landholdings at December 31, 2019
(in acres, unaudited)
Type | Kauai | Maui | Oahu | Total Acres |
Land used in other operations | 20 | 21 | — | 41 |
Urban land, not in active development/use | ||||
Urban Developable, with full or partial infrastructure | 6 | 110 | — | 116 |
Urban Developable, with limited or no infrastructure | 29 | 186 | — | 215 |
Urban Other | 6 | 23 | — | 29 |
Subtotal - Urban land, not in active development | 41 | 319 | — | 360 |
Agriculture-related | ||||
Agriculture/Other | 6,358 | 6,264 | 75 | 12,697 |
Urban entitlement process | 260 | 357 | — | 617 |
Conservation & preservation | 13,309 | 392 | 509 | 14,210 |
Subtotal - Agriculture-related | 19,927 | 7,013 | 584 | 27,524 |
Total Land Operations Landholdings | 19,988 | 7,353 | 584 | 27,925 |
24
Materials & Construction
Alexander & Baldwin, Inc.
Materials & Construction
Table 21 – Statement of Operating Profit, EBITDA and Adjusted EBITDA
($ in millions, unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Profit (Loss)1 | $ | (2.5 | ) | $ | (80.4 | ) | $ | (69.2 | ) | $ | (73.2 | ) | ||||
Materials & Construction depreciation and amortization | 2.9 | 3.0 | 11.4 | 12.1 | ||||||||||||
Materials & Construction EBITDA | 0.4 | (77.4 | ) | (57.8 | ) | (61.1 | ) | |||||||||
Asset impairments related to the Materials & Construction segment | — | 77.8 | 49.7 | 77.8 | ||||||||||||
Loss (income) attributable to noncontrolling interest | 0.2 | (0.8 | ) | 2.0 | (2.2 | ) | ||||||||||
M&C Adjusted EBITDA | $ | 0.6 | $ | (0.4 | ) | $ | (6.1 | ) | $ | 14.5 | ||||||
Other discrete items impacting the respective periods: | ||||||||||||||||
One-time charges related to the evaluation of strategic options for the Materials & Construction segment | 0.3 | 0.4 | 1.8 | 2.2 | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Aggregate tons delivered (tons in thousands) | 166.4 | 176.2 | 786.9 | 718.2 | ||||||||||||
Asphalt tons delivered (tons in thousands) | 55.8 | 85.6 | 293.8 | 498.2 | ||||||||||||
Backlog at period end (in millions) | $79.5 | $128.7 | ||||||||||||||
1 The Company's GPRM Prestress operating unit is a 51% owned consolidated joint venture and GLP Asphalt is a 70% owned consolidated joint venture.
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