On November 2, 2023, Alexander & Baldwin Inc (ALEX, Financial) released its Q3 2023 earnings report, revealing a substantial increase in net income and commercial real estate operating profit. The Hawaii-based company, which focuses on owning, operating, and developing high-quality commercial real estate, reported a net income available to A&B common shareholders of $14.6 million, or $0.20 per diluted share. This is a significant increase from the $6.3 million, or $0.09 per diluted share, reported in the same quarter of 2022.
Financial Highlights
For Q3 2023, Alexander & Baldwin Inc (ALEX, Financial) reported a CRE operating profit of $20.6 million. The company's Nareit-defined Funds From Operations (FFO) stood at $21.1 million, or $0.29 per diluted share, while Core FFO was $21.8 million, or $0.30 per diluted share. The company also reported a CRE Same-Store NOI growth of 6.3% and a leased occupancy of 94.6% as of September 30, 2023.
President and CEO Lance Parker commented on the company's performance, stating,
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%."
CRE Performance
The company's CRE operating revenue increased by $1.7 million, or 3.7%, to $48.2 million, 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, 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, compared to $29.0 million in the same quarter of 2022.
Balance Sheet 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 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.
Outlook
The company revised its annual 2023 guidance to reflect its improved outlook. The revised Core FFO per diluted share is expected to be between $1.13 to $1.16, and CRE Same-Store NOI is expected to be between 2.75% to 4.25%.
Explore the complete 8-K earnings release (here) from Alexander & Baldwin Inc for further details.
