EX-99.1 2 v451973_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

   

 

 

Alexander & Baldwin, Inc.

Table of Contents

 

  

Section Page
Glossary of terms 4-5
Consolidated Balance Sheets 6
Consolidated Statements of Operations 7
Consolidated Condensed Statements of Cash Flows 8
Notes Payable & Long-Term Debt 9
Components of NAV 10-11
Property Report – Hawaii 12
Property Report - U.S. Mainland 13
Net Operating Income 14
Percent Occupancy 15
Commercial Real Estate Transactional Activity 16
Top Ten Tenants (In-Service Properties) Based Upon ABR 17
Lease Expiration Schedule 18
Commercial Portfolio Repositioning, Redevelopment & Development Summary 19
Active Development Projects 20
Landholdings as of September 30, 2016 21
Materials & Construction Select Data 22
Statement on Management’s Use of Non-GAAP Financial Measures 24
Reconciliation of Net Income (Loss) Available to A&B Shareholders to Funds From Operations 25
Reconciliation of Consolidated Net Income (Loss) to EBITDA 26
Reconciliation of Materials & Construction Segment Operating Profit to EBITDA 27
Reconciliation of Commercial Real Estate Operating Profit to NOI (Non-GAAP) 28
Reconciliation of Commercial Real Estate Operating Profit to NOI Trailing 12 mos (Non-GAAP)

29

 

 

Forward-Looking Statements

Statements in this Supplement 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 statement. These forward-looking statements are not guarantees of future performance. This Supplement should be read in conjunction with pages 17-29 of Alexander & Baldwin, Inc.’s 2015 Form 10-K and other filings with the SEC through the date of this Supplement, which identify important factors that could affect the forward-looking statements in this Supplement. We do not undertake any obligation to update our forward-looking statements.

 

Basis of Presentation

The information contained in this Supplement does not purport to disclose all items required by accounting principles generally accepted in the United States of America (GAAP). The information contained in this Supplement is unaudited and should be read in conjunction with Alexander & Baldwin, Inc.’s 2015 Form 10-K and other filings with the SEC through the date of this Supplement.

 

  2

 

 

Alexander & Baldwin, Inc.

Company Profile

 

 

Alexander & Baldwin, Inc. is a 146-year-old Hawaii company focused on creating value from its tremendous real estate assets.

 

Assets1 · $1.1B portfolio of primarily Hawaii grocery-anchored strip retail commercial properties located in prime neighborhood locations across the state
· Approximately $470M of active developments for sale on several major islands across the state
· 87,500 acres of land in Hawaii, making A&B the state’s fourth largest landowner
· Ownership of Hawaii’s largest materials and paving construction company

 

Hawaii-focused Strategy · Increase commercial real estate portfolio value and cash flow
· Accelerate monetization of development pipeline
· Leverage strong Materials & Construction segment positioning
· Minimize sugar cessation costs and successfully transition HC&S lands to diversified agriculture
· Continue disciplined and prudent financial management

 

Team · Led by Chris Benjamin, A&B president & CEO and Lance Parker, A&B Properties president
· Deep Hawaii market knowledge and network
· Reputation for integrity, performance and commitment to the community

 

COMMERCIAL REAL ESTATE HIGHLIGHTS

 

#1 Strip retail centers owner in Hawaii
ABR of $26.60 psf
2.9M Square feet of GLA in Hawaii

 

 

TRADING HIGHLIGHTS

 

ALEX NYSE listed ticker symbol
1.9B Market capitalization
129K 3-month average trading volume
Indices MID, DJUSRE, RTY

 

 

1 Represents book value as of September 30, 2016.

 

  3

 

 

Alexander & Baldwin, Inc.

Glossary of Terms

 

  

Annualized Base Rent (ABR) The current month's contractual rent multiplied by 12.
   
Backlog Backlog represents the amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded or government contracts in which the Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory.
   
Earnings Before Interest, Taxes, Depreciation and Amortization(EBITDA)

EBITDA is calculated for the Materials & Construction segment by adjusting consolidated segment operating profit (which excludes interest and tax expenses), as applicable, by adding back depreciation and amortization and subtracting income attributable to non-controlling interests. EBITDA is a Non-GAAP measure used by the Company in evaluating the 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 segment's ongoing core operations and should be not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

 

EBITDA is also presented for the Company on a consolidated basis. EBITDA is calculated by adjusting the Company’s consolidated net loss to exclude the impact of interest expense, income taxes, and depreciation and amortization. The Company provides this information to investors as an additional means of evaluating the performance of the Company’s operations and should be not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP. 

   
NAREIT Funds From Operations (FFO)

A supplemental measure of real estate company operating performance. It is computed by adjusting net income (loss) available to A&B shareholders computed in accordance with generally accepted accounting principles (GAAP) to add back depreciation and amortization of real estate assets and exclude extraordinary items and gains and losses on sales of commercial real estate. FFO is a Non-GAAP measure and should not be considered as an alternative to net income as an indication of the Company's performance and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. It is, however, a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of the Company's presentation of FFO to similarly titled measures for other real estate companies may not necessarily be meaningful due to possible differences in the calculation of the term.

 

Many publicly traded real estate industry peers are REITs and report operations using FFO as defined by the National Association of Real Estate Investment Trusts (“NAREIT”). Although we are not a REIT, management believes it is important to publish this measure to allow for easier comparison of our performance to our peers. A major difference between the A&B and its REIT peers is that A&B is a taxable entity and any taxable income generated likely results in payment of federal or state income taxes. REIT peers typically do not pay federal or state income taxes on their qualified REIT investments, but distribute a significant portion of their taxable income to shareholders.

   
GLA Gross leasable area.
   
GAAP Generally accepted accounting principles in the United States of America.
   
Occupancy The percentage of square footage leased to gross leasable space.

 

  4

 

 

Alexander & Baldwin, Inc.

Glossary of Terms (continued)

 

 

Net Operating Income Net operating income (NOI) is a Non-GAAP measure derived from commercial real estate revenues (determined in accordance with GAAP, less straight-line rental adjustments) minus property operating expenses (determined in accordance with GAAP). NOI does not have any standardized meaning prescribed by GAAP, and therefore, may differ from definitions of NOI used by other companies. NOI should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s financial performance, or as an alternative to cash flow from operating activities as a measure of the Company’s liquidity. NOI is commonly used as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. NOI excludes general and administrative expenses, straight-line rental adjustments, interest income, interest expense, depreciation and amortization expense, and gains on sales of interests in real estate. The Company believes that the Leasing segment’s operating profit is the most directly comparable GAAP measurement to NOI.
   
Same-store Properties that were owned throughout the entire duration of both periods under comparison, including stabilized properties.
   
Stabilized A commercial property is considered stabilized when it either reaches 80% economic occupancy or 12 months following acquisition or construction completion.
   
Straight-line rent GAAP requirement to average tenant rents over the life of the lease regardless of actual cash collected.
   
Year built Year of most recent repositioning/redevelopment or year built if no repositioning/redevelopment has occurred.

 

  5

 

 

Alexander & Baldwin, Inc.

Consolidated Balance Sheets (Unaudited)

 

($ in millions)

 

ASSETS  September 30, 2016   December 31, 2015 
Current Assets:          
Cash and cash equivalents  $5.8   $1.3 
Accounts and other notes receivable, net   38.4    38.6 
Contracts retention   12.4    11.5 
Costs and estimated earnings in excess of billings on uncompleted contracts   16.6    16.3 
Inventories   47.3    55.9 
Income tax receivable   11.5    14.0 
Prepaid expenses and other assets   12.6    14.9 
Total current assets   144.6    152.5 
Investments in affiliates   430.8    416.4 
Real estate developments   192.6    183.5 
Property, plant & equiptment – net   1,256.1    1,269.4 
Intangible assets - net   55.8    54.4 
Goodwill   102.3    102.3 
Other assets   42.0    63.8 
Total assets  $2,224.2   $2,242.3 
           
LIABILITIES AND EQUITY          
Current Liabilities:          
Notes payable and current portion of long-term debt  $82.4   $90.4 
Accounts payable   30.1    35.5 
Billings in excess of costs and estimated earnings on uncompleted contracts   2.7    2.6 
Accrued interest   3.9    5.5 
Indemnity holdback related to Grace acquisition   9.3    9.3 
HC&S cessation related liabilities - current   16.9    6.4 
Accrued and other liabilities   36.2    35.0 
Total current liabilities   181.5    184.7 
Long-term Liabilities:          
Long-term debt   523.9    496.6 
Deferred income taxes   184.2    202.1 
Accrued pension and postretirement benefits   58.6    59.7 
Other non-current liabilities   49.6    60.5 
Total long-term liabilities   816.3    818.9 
Commitments and Contingencies          
Redeemable Noncontrolling Interest   11.6    11.6 
Equity:          
Common stock   1,156.2    1,151.7 
Accumulated other comprehensive loss   (43.8)   (45.3)
Retained earnings   98.7    117.2 
Total A&B shareholders' equity   1,211.1    1,223.6 
Noncontrolling interest   3.7    3.5 
Total equity   1,214.8    1,227.1 
Total liabilities and equity  $2,224.2   $2,242.3 

 

  6

 

 

Alexander & Baldwin, Inc.
Consolidated Statements of Operations (Unaudited)

 

($ in millions, except per-share amounts)

 

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2016   2015   2016   2015 
                 
Operating revenue:                    
Commercial Real Estate  $32.9   $33.0   $102.3   $100.5 
Real Estate Development and Sales   12.8    19.9    13.4    87.8 
Materials and Construction   52.1    51.0    144.8    165.3 
Agribusiness   40.9    40.8    89.7    95.5 
Total operating revenue   138.7    144.7    350.2    449.1 
                     
Operating costs and expenses:                    
Cost of Commercial Real Estate   19.4    20.8    60.3    61.3 
Cost of Real Estate Development and Sales   3.1    6.7    3.3    47.4 
Cost of  Construction contracts and Materials   41.0    40.7    114.9    134.1 
Cost of Agribusiness revenues   38.8    49.8    87.6    107.1 
Selling, general and administrative   14.7    12.6    42.6    41.3 
REIT evaluation costs   1.9    -    3.8    - 
HC&S cessation costs   17.6    -    51.6    - 
Gain on the sale of improved property   -    -    (8.0)   (1.9)
Total operating costs and expenses   136.5    130.6    356.1    389.3 
Operating income (loss)   2.2    14.1    (5.9)   59.8 
                     
Other income and (expense):                    
Income related to joint ventures   0.1    2.9    3.5    30.7 
Reductions in solar investments   (0.2)   (0.1)   (9.7)   (1.7)
Interest income and other   0.5    0.4    1.6    0.8 
Interest expense   (6.4)   (6.5)   (20.1)   (20.2)
Income (loss) before income taxes   (3.8)   10.8    (30.6)   69.4 
Income tax expense (benefit)   (2.4)   3.8    (21.6)   26.4 
Net income (loss)   (1.4)   7.0    (9.0)   43.0 
Income attributable to noncontrolling interest   (0.5)   (0.3)   (1.1)   (1.2)
Net income (loss) attributable to A&B  $(1.9)  $6.7   $(10.1)  $41.8 
                     
Earnings (loss) per share:                    
Basic - Net income (loss) available to A&B shareholders  $(0.03)  $0.11   $(0.19)  $0.83 
Diluted  - Net income (loss) available to A&B shareholders  $(0.03)  $0.11   $(0.19)  $0.82 
                     
Weighted average number of shares outstanding:                    
   Basic   49.0    48.9    49.0    48.8 
   Diluted   49.0    49.4    49.0    49.3 
                     
Supplemental information ($ in millions)                    
EBITDA  $31.3   $31.1   $73.0   $131.4 
Operating profit  $10.2   $22.2   $19.0   $107.0 

 

Note: See appendix for a statement about management’s use of Non-GAAP financial measures and required reconciliations.

 

  7

 

 

Alexander & Baldwin, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)

 

($ in millions)

 

   Nine Months Ended 
   September 30, 
   2016   2015 
         
Cash flows from operating activities:  $48.4   $115.3 
           
Cash flows from investing activities:          
Capital expenditures for property, plant and equipment   (105.3)   (34.9)
Capital expenditures related to 1031 commercial property transactions   (6.2)   (1.3)
Proceeds from disposal of property and other assets   11.4    5.1 
Proceeds from disposals related to 1031 commercial property transactions   59.3    25.2 
Payments for purchases of investments in affiliates and investments   (36.0)   (22.5)
Proceeds from investments in affiliates   6.0    37.6 
Change in restricted cash associated with 1031 transactions   16.2    (2.7)
Net cash provided by (used in) investing activities   (54.6)   6.5 
           
Cash flows from financing activities:          
Proceeds from issuance of long-term debt   222.0    71.0 
Payments of long-term debt and deferred financing costs   (191.1)   (182.1)
Payments under line-of-credit, net   (11.8)   (0.4)
Distribution to noncontrolling interests   (0.5)   (1.1)
Dividends paid   (8.8)   (7.4)
(Tax withholding payments) proceeds from issuance of capital stock and other, net   0.9    (0.5)
Net cash provided by (used in) financing activities   10.7    (120.5)
           
Cash and cash equivalents:          
Net increase (decrease) for the year   4.5    1.3 
Balance, beginning of year   1.3    2.8 
Balance, end of year  $5.8   $4.1 

  

  8

 

 

Alexander & Baldwin, Inc.

Notes Payable & Long-Term Debt (Unaudited)

As of September 30, 2016

 

($ in millions, unaudited)

 

                   Principal payments         
Debt:  Stated rate %   Weighted average interest rate   Maturity date   Weighted average maturity date
 (years)		   2016   2017   2018   2019   2020   Thereafter   Total principal   Unamortized deferred financing cost/(discount) premium   Total 
Secured Debt:                                                                 
Pearl Highlands   4.15    4.15    2024    3.16   $0.5   $1.9   $1.9   $2.0   $2.1   $82.1   $90.5   $-   $90.5 
Midstate Hayes   6.38    6.38    2017    0.05    -    8.2    -    -    -    -    8.2    -    8.2 
KTC III   (a)    5.95    2021    0.25    0.1    0.2    0.2    0.3    0.3    9.7    10.8    -    10.8 
GLP Asphalt Plant   (b)    5.95    2021    0.08    0.3    1.2    1.3    1.4    1.5    0.3    6.0    -    6.0 
Manoa Marketplace   (c)    3.135    2029    3.27    -    -    -    0.7    1.6    57.7    60.0    0.3    59.7 
Kahala Avenue Lots   (d)    3.15    2016    0.01    6.3    -    -    -    -    -    6.3    -    6.3 
The Shops at Kukuiula   (e)    2.83    2016    0.04    35.2    -    -    -    -    -    35.2    -    35.2 
                                                                  
Subtotal                  6.86   $42.4   $11.5   $3.4   $4.4   $5.5   $149.8   $217.0   $0.3   $216.7 
                                                                  
Unsecured Debt:                                                                 
Prudential Series A   5.53    5.53    2024    0.49   $-   $-   $-   $-   $-   $28.5   $28.5   $-   $28.5 
Prudential Series B   5.55    5.55    2026    0.96    -    -    -    -    -    46.0    46.0    -    46.0 
Prudential Series C   5.56    5.56    2026    0.43    -    -    1.0    1.0    1.0    22.0    25.0    -    25.0 
Prudential Series D   6.90    6.90    2020    0.46    -    16.3    16.3    16.2    16.2    -    65.0    -    65.0 
Prudential Series E   3.90    3.90    2024    0.82    3.4    5.6    9.8    9.8    9.0    33.9    71.5    -    71.5 
Prudential Series F   4.35    4.35    2026    0.42    -    -    -    -    2.4    19.6    22.0    -    22.0 
Prudential Series G   3.88    3.88    2027    0.81    -    -    7.5    7.5    5.4    29.6    50.0    0.9    49.1 
Unsecured term note #1   3.31    3.31    2018    0.01    0.5    1.9    0.9    -    -    -    3.3    -    3.3 
Unsecured term note #2   2.00    2.00    2018    0.00    0.2    0.7    0.1    -    -    -    1.0    -    1.0 
Unsecured term note #3   2.65    2.65    2016    -    0.1    -    -    -    -    -    0.1    -    0.1 
Unsecured term note #4   5.19    5.19    2019    0.04    0.5    2.0    2.1    2.3    -    -    6.9    -    6.9 
Unsecured term note #5   1.85    1.85    2017    0.01    0.7    2.5    -    -    -    -    3.2    -    3.2 
Revolving credit line   (f)    2.04    2021    0.74    -    -    -    -    68.0    -    68.0    -    68.0 
                                                                  
Subtotal                  5.19   $5.4   $29.0   $37.7   $36.8   $102.0   $179.6   $390.5   $0.9   $389.6 
                                                                  
Total                  5.79   $47.8   $40.5   $41.1   $41.2   $107.5   $329.4   $607.5   $1.2   $606.3 

 

(a) Loan has a stated interest rate of LIBOR plus 1.5%, but is swapped through maturity to a 5.95% fixed rate.   Liquidity:    
(b) Loan has a stated interest rate of LIBOR plus 1.0%, but is swapped through maturity to a 5.98% fixed rate.   Cash and cash equivalents  $5.8 
(c) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.135% fixed rate.   Restricted cash (1031)  $1.2 
(d) Loan has an effective interest rate of 3.15% for 2016.    Available under unsecured credit facility  $269.3 
(e) Loan has an effective interest rate of 2.83% for 2016.         
(f) LIBOR plus 175 bps, based on pricing grid.   Ratios:     
      Principal debt to total enterprise value   24.4%
      Principal debt to total assets   27.3%

  

  9

 

 

Alexander & Baldwin, Inc.

Components of NAV

 

($ in millions)

 

Commercial Real Estate - Company Information  Commercial Real Estate - Hawaii Market Information
           
Income producing assets  NOI TTM Ended
September 30, 2016		   Hawaii market cap rate information
Income producing assets		  Range of Market
Cap Rates
           
Hawaii retail  $44.7   Hawaii retail  4.0% - 6.0%
Hawaii industrial  $11.1   Hawaii industrial  5.0% - 7.0%
Hawaii office  $3.7   Hawaii office  6.0% - 8.0%
Hawaii ground leases  $12.3       
Mainland retail  $2.3       
Mainland industrial  $4.7       
Mainland office  $8.2       
Total  $87.0       

 

Materials & Construction Company Information  Materials & Construction - Market Information
                           
Materials & Construction
historical EBITDA		  1Q   2Q   3Q   4Q   Total   Materials and Construction peers:  Ticker
2016  $10.4   $7.8   $8.0        $26.2   Cementos Argos S.A  CMT
2015  $9.5   $9.7   $10.2   $11.7   $41.1   CEMEX S.A.B. de C.V  CX
2014  $7.2   $11.4   $9.0   $10.4   $38.0   CRH plc  CRH
2013    (a)       (a)      (a)    $6.8   $6.8   HeidelbergCement AG  HDELY
                            Martin Marietta Materials, Inc  MLM
                            Monarch Cement Co  MCEM
                            Summit Materials Inc  SUM

Development Sales - Company Information

  Vulcan Materials Company  VMC
                       Book    Specialty Construction Companies:   
                       Value as    Colas SA  RE.PA
                       of September   Granite Construction Inc  GVA
                       30, 2016   Great Lakes Dredge & Dock Corp  GLDD

Active Development Projects 

  (b)    Orion Group Holdings, Inc  ORN
Residential units                       $ 75.5   Sterling Construction Co. Inc  TPCSTRL
Lot sales                       $  392.0   Tutor Perini Corporation   TPC
                       $ 467.5       

 

(a)Grace Pacific was acquired on October 1, 2013
(b)The book value of active development projects includes land stated at it's acquisition value.  In the case of development projects on A&B's historical landholdings, such as Kamalani and Maui Business Park, the value of land would be approximately $150 per acre.

  

  10

 

 

Alexander & Baldwin, Inc.

Components of NAV (Cont.)

($ in millions, except Nominal Sales Data)

 

Landholdings - Company Information
                     
       A&B Nominal Sales January 2011-September 2016 
Landholdings not valued elsewhere  Acres   Acres Sold   Average   High   Low 
Urban   253    70   $2,002,575   $4,600,000   $435,600 
Urban entitlement process   740                     
Agriculture   55,230    1,861   $28,700   $151,600   $13,750 
Conservation (c)   29,835                     
Total   86,058                     
                          
Other Company Information
                          
Total debt at September 30, 2016                   $606.3 
                          
Shares outstanding at September 30, 2016 (in millions)                   49.0 

 

(c)Conservation land is generally utilized in the collection of water, which benefits the agricultural land, and therefore, generally these lands should not be separately valued.

 

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Alexander & Baldwin, Inc.

Property Report - Hawaii


Property     City/Island  Year built / renovated  Number of buildings   Gross leasable area at 09/30/16
(sq. ft.)		   Leased %   ABR per leased sq. ft.   3Q2016
NOI
($ in 000s)		   3Q2016 % NOI to HI portfolio NOI   Total Principal Debt
($ in 000s)		 
                       (a)              (b)      
Retail                                            
Pearl Highlands Center     Oahu  1992-1994   1    415,200    97   $23.88   $2,429    13.1   $90,496 
Kailua Retail     Oahu  1947-2014   15    316,400    96   $29.19    2,416    13.1    10,842 
Waianae Mall     Oahu  1975   1    170,300    86   $18.83    525    2.8    - 
Manoa Marketplace     Oahu  1977   1    139,300    97   $34.34    1,174    6.4    60,000 
Kaneohe Bay Shopping Center  (c)  Oahu  1971/2008   1    124,800    100   $22.83    591    3.2    - 
Waipio Shopping Center     Oahu  1986-2004   1    113,800    99   $26.63    838    4.5    - 
Aikahi Park Shopping Center     Oahu  1971   1    98,000    82   $16.72    707    3.8    - 
The Shops at Kukui'ula     Kauai  2009   1    89,000    94   $45.90    990    5.4    35,168 
Lanihau Marketplace     Hawaii  1987   1    88,300    99   $20.74    498    2.7    - 
Kunia Shopping Center     Oahu  2004   1    60,600    81   $37.63    459    2.5    - 
Lahaina Square     Maui  1973   1    50,200    77   $17.38    108    0.6    - 
Kahului Shopping Center     Maui  1951   1    49,900    86   $19.56    135    0.7    - 
Napili Plaza     Maui  1991   1    45,700    89   $26.95    271    1.5    - 
Gateway at Mililani Mauka     Oahu  2008, 2011, 2013   4    34,900    91   $50.90    417    2.3    - 
Port Allen Marina Center     Kauai  2002   1    23,600    92   $22.01    93    0.5    - 
Subtotal – Retail            32    1,820,000    94   $26.60   $11,651    63.1   $196,506 
                                             
Industrial                                            
Komohana Industrial Park  (d)  Oahu  1990   1    238,300    100   $11.37   $1,102    5.9   $- 
Kakaako Commerce Center     Oahu  1971   1    206,000    79   $12.66    458    2.5    - 
Waipio Industrial     Oahu  1988-1989   5    158,400    100   $14.55    581    3.1    - 
P&L Building     Maui  1970   1    104,100    100   $12.60    330    1.8    - 
Kailua Industrial/Other     Oahu  1951-1974   6    68,800    96   $13.21    180    1.0    - 
Port Allen     Kauai  1983 -1993   3    63,800    100   $11.38    162    0.9    - 
Subtotal – Industrial            17    839,400    95   $12.59   $2,813    15.2   $- 
                                             
Office                                            
Kahului Office Building     Maui  1974/1996   1    59,600    86   $27.61   $326    1.8   $- 
Gateway at Mililani Mauka South  (e)  Oahu  1992, 2006, 2008, 2016   3    37,100    93   $43.24    323    1.8    - 
Kahului Office Center     Maui  1991   1    33,400    88   $25.99    192    1.0    - 
Stangenwald Building     Oahu  1901/1980   1    27,100    92   $18.40    104    0.6    - 
Judd Building     Oahu  1898/1979   1    20,200    86   $17.98    46    0.2    - 
Maui Clinic Building  (f)  Maui  1958/2010   1    16,600    28   $25.82    (14)   (0.1)   - 
Lono Center     Maui  1973   1    13,700    80   $26.95    33    0.2    - 
Subtotal – Office            9    207,700    83   $27.92   $1,010    5.5   $- 
                                             
Ground Leases                                            
Kailua     Oahu  19 acres   -    -    -    -   $862    4.7   $- 
Other Oahu     Oahu  22 acres   -    -    -    -    1,214    6.5    - 
Neighbor Islands  (g)  Neighbor Islands  3143 acres   -    -    -    -    924    5.0    - 
Subtotal - Ground Leases        3184 acres   -    -    -    -    3,000    16.2   $- 
Total Hawaii            58    2,867,100    93   $22.49   $18,474    100.0   $196,506 

 

(a)Represents the average percentage of space leased during the period referenced or A&B's ownership period, whichever is shorter.
(b)See page appendix for a statement about management's use of non-GAAP financial measures and required reconciliations.
(c)A&B owns the leasehold improvements of this center and does not own the fee interest.
(d)Includes ground lease income.
(e)A 18,415-square-foot expansion was completed and added to the commercial portfolio in June 2016.
(f)Negative NOI and low occupancy relates to property repositioning.
(g)Includes 64 ground leased urban acres.

 

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Alexander & Baldwin, Inc.

Property Report – U.S. Mainland

 

Property  City/State  Year built / renovated  Number of buildings  Gross leasable area at 09/30/16
(sq. ft.)		   Leased %   Annualized Base Rent (ABR)
($ in 000s)		   ABR per leased sq. ft.   3Q2016
NOI
($ in 000s)		   3Q2016 % NOI to ML portfolio NOI   Total Principal debt
 ($ in 000s)		 
                  (a)               (b)            
Retail:                                            
Little Cottonwood Center  Sandy, UT  1998-2008  1   141,500    94   $1,445   $10.76   $330    12.9   $- 
Royal MacArthur Center  Dallas, TX  2006  1   44,900    90    909   $22.49    216    8.4    - 
Subtotal – Retail        2   186,400    93   $2,354   $13.47   $546    21.3   $- 
                                             
Industrial:                                            
Midstate Hayes  Visalia, CA  2002-2008  4   790,200    89   $2,728   $4.11   $648    25.3   $8,221 
Sparks Business Center  Sparks, NV  1996-1998  1   396,100    95    1,845   $4.96    449    17.5    - 
Subtotal – Industrial        5   1,186,300    91   $4,573   $4.41   $1,097    42.8   $8,221 
                                             
Office:                                            
1800 and 1820 Preston Park  Plano, TX  1997-1998/2010  2   198,800    87   $3,206   $18.53   $480    18.7   $- 
Concorde Commerce Center  Phoenix, AZ  1998  1   138,700    91    2,573   $20.37    330    12.8    - 
Deer Valley Financial Center  Phoenix, AZ  2001  1   126,600    82    1,603   $15.70    112    4.4    - 
Subtotal – Office        4   464,100    87   $7,382   $18.39   $922    35.9   $- 
Total Mainland        11   1,836,800    90   $14,309   $8.87   $2,565    100.0   $8,221 

 

(a)Represents the average percentage of space leased during the period reference or A&B's ownership period, whichever is shorter.
(b)See page appendix for a statement about management's use of non-GAAP financial measures and required reconciliations.

  

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Alexander & Baldwin, Inc.

Net Operating Income (NOI)

 

($ in millions, unaudited)

 

      3Q16   3Q15   % Change 
Location     Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total 
Hawaii  (a)  $11.7   $2.8   $1.0   $3.0   $18.5   $9.9   $2.7   $0.9   $2.9   $16.4    18.2    3.7    11.1    3.4    12.8 
Mainland      0.5    1.1    1.0    -    2.6    0.6    1.1    2.3    -    4.0    (16.7)   -    (56.5)   -    (35.0)
Total     $12.2   $3.9   $2.0   $3.0   $21.1   $10.5   $3.8   $3.2   $2.9   $20.4    16.2    2.6    (37.5)   3.4    3.4 
                                                                               
      Nine months ended September 30, 2016   Nine months ended September 30, 2015   % Change 
Location     Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total 
Hawaii  (a)  $35.2   $8.4   $2.8   $8.9   $55.3   $29.2   $8.1   $2.8   $9.6   $49.7    20.5    3.7    -    (7.3)   11.3 
Mainland      1.7    3.5    5.3    -    10.5    1.9    3.5    7.6    -    13.0    (10.5)   -    (30.3)   -    (19.2)
Total     $36.9   $11.9   $8.1   $8.9   $65.8   $31.1   $11.6   $10.4   $9.6   $62.7    18.6    2.6    (22.1)   (7.3)   4.9 

 

Same Store NOI

($ in millions, unaudited)

 

      3Q16   3Q15   % Change 
                                                                
Location     Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total 
Hawaii  (b)  $10.5   $2.8   $0.7   $3.0   $17.0   $9.9   $2.7   $0.7   $2.8   $16.1    6.1    3.7    -    7.1    5.6 
Mainland      0.5    1.1    0.9    -    2.5    0.6    1.1    1.0    -    2.7    (16.7)   -    (10.0)   -    (7.4)
Total     $11.0   $3.9   $1.6   $3.0   $19.5   $10.5   $3.8   $1.7   $2.8   $18.8    4.8    2.6    (5.9)   7.1    3.7 
                                                                               
      Nine months ended September 30, 2016   Nine months ended September 30, 2015   % Change 
Location     Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total   Retail   Industrial   Office   Ground   Total 
Hawaii  (c)  $28.6   $8.4   $2.1   $9.8   $48.9   $27.1   $8.1   $2.3   $10.0   $47.5    5.5    3.7    (8.7)   (2.0)   2.9 
Mainland      1.7    3.5    2.8    -    8.0    1.9    3.4    3.0    -    8.3    (10.5)   2.9    (6.7)   -    (3.6)
Total     $30.3   $11.9   $4.9   $9.8   $56.9   $29.0   $11.5   $5.3   $10.0   $55.8    4.5    3.5    (7.5)   (2.0)   2.0 

 

(a)For purposes of calculating third quarter 2016 NOI and the nine months ended September 30, 2016 NOI from Aikahi Park Shopping Center (APSC), tenant improvements and ground lease NOI were included in Hawaii retail. Ground lease NOI for APSC in the third quarter of 2015 and nine months ended September 30, 2015 was included in Hawaii ground leases to April 2015 and in Hawaii retail as of May 2015.
(b)Ground lease NOI from APSC was included in the calculation of the third quarter 2016 and 2015 same-store NOI in Hawaii retail.
(c)Ground lease NOI from APSC was included in the calculation of the nine months ended September 30, 2016 and 2015 same-store NOI in Hawaii ground leases.

 

Note: See page appendix for a statement about management's use of non-GAAP financial measures and required reconciliations. 

 

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Alexander & Baldwin, Inc.

Percent Occupancy

 

   Three months ended September 30, 2016   Three months ended September 30, 2015   % point change 
                                                 
Location  Retail   Industrial   Office   Total   Retail   Industrial   Office   Total   Retail   Industrial   Office   Total 
Hawaii   94    95    83    93    94    95    84    93    -    -    (1)   - 
Mainland   93    91    87    90    92    99    93    96    1    (8)   (6)   (6)
Total   94    93    86    92    94    97    91    95    -    (4)   (5)   (3)
                                                             
   Nine months ended September 30, 2016   Three months ended September 30, 2015   % point change 
                                                 
Location   Retail    Industrial    Office     Total    Retail    Industrial    Office    Total    Retail    Industrial    Office    Total 
Hawaii   94    95    82    93    94    95    83    93    -    -    (1)   - 
Mainland   93    96    89    94    93    99    91    95    -    (3)   (2)   (1)
Total   94    96    88    93    94    97    90    94    -    (1)   (2)   (1)

                             

Same Store Percent Occupancy

                             

   Three months ended September 30, 2016   Three months ended September 30, 2015   % point change 
                                                 
Location  Retail   Industrial   Office   Total   Retail   Industrial   Office   Total   Retail   Industrial   Office   Total 
Hawaii   93    95    81    93    94    95    82    93    (1)   -    (1)   - 
Mainland   93    91    87    90    92    99    87    95    1    (8)   -    (5)
Total   93    93    85    92    94    97    85    94    (1)   (4)   -    (2)
                                                             
   Nine months ended September 30, 2016   Nine months ended September 30, 2015   % point change 
                                                 
Location   Retail    Industrial    Office     Total    Retail    Industrial    Office    Total    Retail    Industrial    Office    Total 
Hawaii   94    95    80    93    94    95    81    94    -    -    (1)   (1)
Mainland   93    96    86    93    93    99    87    95    -    (3)   (1)   (2)
Total   94    96    84    93    94    97    85    94    -    (1)   (1)   (1)

 

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Alexander & Baldwin, Inc.

Commercial Real Estate Transactional Activity (2015-2016)

 

($ in millions)

 

Property disposed in 2016  Disposition date
(month/year)		  Disposition price
(in millions)		   Gross leasable area (sq. ft.)   Leased % at disposition 
Ninigret Office Park  6/16  $30    185,500    100 
Gateway Oaks  6/16  $8    59,700    92 
Prospect Park  6/16  $22    163,300    100 
Total     $60    408,500      

 

Property acquired in 2016  Acquisition date
(month/year)		  Acquisition price
(in millions)		   Gross leasable area (sq. ft.)   Leased %
at acquisition		 
Manoa Marketplace  1/16  $82    139,300    99 

 

Property disposed in 2015  Disposition date
(month/year)		  Disposition price
(in millions)		   Gross leasable area (sq. ft.)   Leased % at disposition 
Union Bank  12/15  $10    84,000    53 
San Pedro Plaza  5/15  $17    171,900    69 
Wilshire Shopping Center  3/15  $4    46,500    72 
Total     $31    302,400      

 

Property acquired in 2015  Acquisition date
(month/year)		  Acquisition price
(in millions)		   Gross leasable area (sq. ft.)   Leased %
at acquisition		 
Aikahi Park Shopping Center - Improved Property  5/15  $2    98,000    86 


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Alexander & Baldwin, Inc.

Top Ten Tenants (In-Service Properties) Based Upon ABR

As of September 30, 2016

 

Tenant  Number of leases  Weighted average remaining terms (months)  Annualized Base Rent (ABR)   % of ABR   GLA
(sq. ft.)		   Percentage of total GLA 
Sam's Club  1  52  $3,307,920    4.5    180,908    3.8 
CVS Corporation  6  101   2,623,459    3.5    150,411    3.2 
United Healthcare Services, Inc.  1  39   2,216,050    3.0    108,100    2.3 
Foodland Supermarket, Ltd. / Food Pantry Ltd.  7  73   1,741,170    2.3    111,259    2.4 
24 Hour Fitness USA, Inc.  1  99   1,375,000    1.9    45,870    1.0 
Albertsons Companies, Inc.  4  85   1,316,122    1.8    168,621    3.6 
Whole Foods Market, Inc.  1  184   1,120,304    1.5    31,647    0.7 
Office Depot, Inc.  1  7   1,016,719    1.4    75,824    1.6 
Keystone Automotive Operations, Inc.  1  15   1,015,980    1.4    230,300    4.9 
International Paper  1  22   977,709    1.3    252,040    5.4 
Total  24     $16,710,433   22.6  1,354,980   28.9 

 

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Alexander & Baldwin, Inc.
Lease Expiration Schedule

As of September 30, 2016

 

Total Portfolio  Ground Lease Expirations
Expiration year  Number of leases   Sq. ft. of expiring leases   % of total leased GLA   ABR expiring
($ in millions)		   % of total ABR   Expiration year  ABR expiring
($ in millions)		   % of portfolio ABR 
                       Month-to-month  $ 0.8   6.2 
2016   54    112,990    2.7   $2.8    3.7   2016   0.6    4.6 
2017   184    1,093,354    26.4    15.3    20.1   2017   0.6    4.6 
2018   139    785,042    19.0    9.1    12.0   2018   0.3    2.3 
2019   122    528,927    12.8    12.0    15.8   2019   0.3    2.3 
2020   93    386,479    9.4    8.8    11.6   2020   1.0    7.7 
2021   76    440,241    10.7    9.4    12.4   2021   0.9    6.9 
2022   22    113,554    2.8    2.9    3.8   2022   0.3    2.3 
2023   26    163,378    4.0    2.6    3.4   2023   -    - 
2024   14    175,748    4.3    4.5    5.9   2024   -    - 
2025   21    58,481    1.4    2.5    3.3   2025   0.1    0.8 
Thereafter   28    268,965    6.5    6.1    8.0   Thereafter   8.1    62.3 
Total   779    4,127,159    100.0   $76.0    100.0      $13.0    100.0 

 

Note: Lease expirations do not include month to month leases.

 

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Alexander & Baldwin, Inc.
Commercial Portfolio Repositioning, Redevelopment & Development Summary

As of September 30, 2016

 

 

             Incremental   Stabilized         
         Capital   Stabilized NOI   Yield on       Leasing Activity 
Project  Phase  In-service  ($ in Millions)   ($ in Millions)   Cost   Sq. Ft.   % Leased   % LOI   Total 
Gateway at Mililani South Expansion  Completed  Jun-16  $6.0   $0.8    13%   18,415    85    15    100 
Pearl Highlands Center – Food Court Repositioning  Pre-construction  Late 2017  $3.0   $0.3    10-12%   6,300    --    60    60 
Lau Hala Shops Repositioning  Construction  2018  $21.0     $1.9-$2.4    9-11%   48,400    --    87    87 
                                          
Total        $30.0     $3.0-$3.5    10-12%   73,115                

 

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Alexander & Baldwin, Inc.
Active Development Projects

As of September 30, 2016

 

                        (Dollars in millions)       Construction timing  Sales Closings Timing 
Project  Location  Product type  Est. economic
interest 		  Planned units, saleable acres or gross leasable square feet  Average unit (sf) or lot size
(acres)		  Units/ acres closed through
9/30/16		  Targeted sales price range per square foot
or NOI		  Est. project cost    A&B Projected Capital Commitment
(JVs Only) 		   A&B Capital
Invested		   A&B net investment as of
9/30/16		   Start/Est.
start		  Est. substantial
completion		   Start/Est.
start		   Est. end 
         (a)              (b)   (c)       (e)                
                                                     
Residential units                                                           
                                                            
Kamalani (Increment 1)  Kihei, Maui  Primary residential  100%   170 units  994  -  $400  $64    N/A   $13   $13   2016   2019    2017    2019 
                                                            
Ka Milo at Mauna Lani  Kona, Hawaii  Resort residential  50%   137 units   2,165 sf  85 units  $530-$800   125    16    16    5   2005   2018    2007    2018 
                                                            
Keala 'O Wailea (MF-11)  Wailea, Maui  Resort residential  65%+/-5%   70 units   1,385 sf  -  $600-$1,000   64    9    9    9   2015   2018    2017    2018 
                                                            
The Collection  Honolulu, Oahu  Primary residential/commercial   90% +/-5%   465 units
(464 saleable)		   904 sf  -  $795   279    54    54    49   2014   2016    2016    2017 
                                                            
Total                       $532   $79   $92   $76                   
                                                            
Lot sales                                                           
                                                            
Kahala Avenue Portfolio  Honolulu, Oahu  Residential  100%   30 lots  0.5
acres		  22 lots  $150-$385  $135    N/A   $134   $49   N/A   N/A    2013    2018 
                                                            
Maui Business Park II  Kahului, Maui  Light industrial lots  100%  136 acres   0.5 - 11
acres		  30 acres  $38-$60   96    N/A    78    46   2011   2021    2012    2028 
                                                            
The Ridge at Wailea (MF-19)  Wailea, Maui  Resort residential  100%   9 lots
(4.5 acres)		   0.5
acres		  1 lot  $60-$100   10    N/A    9    9   2007   2009    2014    2020 
                                                            
Kukui'ula  Poipu, Kauai  Resort residential  85% +/- 5%   Up to 1,500 units
(640 saleable  acres)		   0.42
acres		  134 lots  $40-$110   854    300    298    288   2006   2030(d)   2006    2030 
                                                            
Total                       $1,095   $300   $519   $392                   

 

 

(a)Economic interest represents the Company's estimated share of distributions after return of capital contributions based on current forecasts of sales activity.  Actual results coud 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, esimate economic interests are subject to change.
(b)Includes land cost at book value and capitalized interest, but excludes sales commissions and closing costs.
(c)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 contribued by equity partners, third-party debt, and amounts expected to be funded from project cash flows and/or buyer deposits.
(d)Estimated substantial construction completion for Kukui'ula represents the estimated completion date for major project infrastructure and amenities.  Constuction activities related to parcel development is expected to continue past 2030.
(e)The book value of active development projects includes land stated at it's acquisition value.  In the case of development projects on A&B's historical landholdings, like Kamalani and Maui Business Park, the value of land would be approximately $150 per acre.

 

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Alexander & Baldwin, Inc.

Landholdings as of September 30, 2016

 

   Maui   Kauai   Oahu   Molokai   Big Island   Hawaii Total
Acres		   Mainland
Total Acres		   Total Acres 
                                 
Land under commercial properties/ urban ground leases   97    19    184    -    10    310    125    435 
                                         
Land in active development   237    -    5    -    -    242    -    242 
                                         
Land used in other operations   22    20    -    -    -    42    -    42 
                                         
Land management                                        
Urban   211    42    -    -    -    253    -    253 
Agriculture   48,541    6,614    75    -    -    55,230    -    55,230 
Urban entitlement process   480    260    -    -    -    740    -    740 
Conservation & preservation   15,870    13,325    640    -    -    29,835    -    29,835 
                                         
Materials & Construction landholdings   -    -    540    265    -    805    -    805 
                                         
Total landholdings   65,458    20,280    1,444    265    10    87,457    125    87,582 

 

A&B Land Sales Data - Maui & Kauai 2011-2016

 

   Total Acres
Sold		   Weighted
Average Price
Per Acre		   High   Low         
Ag-zoned                            
0-5 acres   10   $116,400   $151,600   $84,400     
5-20 acres   66   $71,700   $104,200   $35,600         
20-100 acres   554   $30,500   $55,700   $13,750         
100+acres   1,231   $24,800   $35,450   $14,600         
Total/Weighted Average   1,861   $28,700   $151,600   $13,750         
                             
Urban-zoned                            
0-3 acres   8   $2,360,450   $4,600,000   $435,600         
3-25 acres   62   $1,644,700   $2,814,000   $718,700         
Total/Weighted Average   70   $1,726,500   $4,600,000   $435,600         

 

 

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Alexander & Baldwin, Inc.
Materials & Construction Select Data

($ in millions, except crew days)

 

Historical EBITDA  1Q   2Q   3Q   4Q   Full Year 
2016   10.4    7.8    8.0         26.2 
2015   9.5    9.7    10.2    11.7    41.1 
2014   7.2    11.4    9.0    10.4    38.0 
2013   (a)     (a)     (a)     6.8    6.8 

 

 

Aggregate used/sold (tons in thousands)  1Q   2Q   3Q   4Q   Full Year 
2016   183.2    159.5    158.1         500.8 
2015   235.0    234.4    180.5    190.3    840.2 
2014   145.4    167.5    166.0    232.5    711.4 
2013   (a)     (a)     (a)     112.3    112.3 

 

 

Asphalt placed (tons in thousands)  1Q   2Q   3Q   4Q   Full Year 
2016   117.9    86.9    126.9         331.7 
2015   116.4    115.5    106.9    127.9    466.7 
2014   108.9    149.4    98.7    113.5    470.5 
2013   (a)     (a)     (a)     114.5    114.5 

 

 

Backlog  31-Mar   30-Jun   30-Sep   31-Dec  
2016   225.7    264.1    242.5       
2015   205.0    249.7    242.0    225.7  
2014   255.6    247.5    233.9    217.6  
2013   (a)     (a)     (a)     217.1  

 

 

Oahu crew days lost to weather  1Q   2Q   3Q   4Q   Full Year 
2016   28.0    52.5    78.5         159.0 
2015   25.0    14.0    79.0    57.5    175.5 
2014   28.0    37.0    19.5    36.0    120.5 
2013   (a)     (a)     (a)     15.0    15.0 

 

 

Oahu total available crew days  1Q   2Q   3Q   4Q   Full Year 
2016   377.0    378.0    444.0         1199.0 
2015   354.0    364.0    384.0    387.0    1489.0 
2014   330.0    378.0    322.0    327.0    1357.0 
2013   (a)     (a)     (a)     315.0    315.0 

 

 

(a)Grace was acquired on October 1, 2013.

 

See appendix for a statement about management's use on non-GAAP financial measures and a reconciliation of Materials & Construction operating profit to segment EBITDA.

 

  22

 

 

 

Appendix

 

 

 

 

 

 

  23

 

 

Alexander & Baldwin, Inc.

Management’s Use of Non-GAAP Financial Measures

 

 

The Company presents the following Non-GAAP financial measures in this Real Estate Supplement:

 

·Consolidated Company FFO (Funds Flow from Operations)
·Consolidated Company EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
·Materials & Construction segment EBITDA
·Commercial Real Estate Segment NOI and same-store NOI

 

The calculations of these financial measures are described in the Glossary of Terms on page 4-5 of this Supplement.

 

The Company uses these Non-GAAP measures when evaluating operating performance because management believes that they provide additional insight into the Company’s and segment’s core operating results, future cash flow generation 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.

 

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 pages of this appendix.

 

  24

 

 

Alexander & Baldwin, Inc.

Reconciliation of Net Income (Loss) Available to A&B Shareholders to Funds from Operations

 

($ in millions)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2016   2015   2016   2015 
                 
Net Income (Loss) Available to A&B Shareholders  $(1.5)  $5.4   $(9.2)  $40.5 
(Gain)/Loss on sale of real estate   -    -    (8.1)   (1.9)
Add: Depreciation and amortization on real estate1   7.0    7.5    21.9    23.6 
Income tax expense (benefit) adjustment:                    
(Gain)/Loss on sale of real estate   -    -    3.2    0.7 
Depreciation and amortization on real estate   (3.0)   (3.1)   (9.2)   (9.6)
                     
FFO  $2.5   $9.8   $(1.4)  $53.3 

 

1 Excludes depreciation and amortization of real estate in Agribusiness and Materials & Construction

 

Items included in net income and FFO                
HC&S sugar cessation costs  $17.6   $-   $51.6   $- 
Commercial Real Estate acqusition costs   -    0.1    1.4    0.2 
Income tax expense (benefit) adjustment:                    
HC&S sugar cessation costs   (6.9)   -    (20.1)   - 
Commercial Real Estate acqusition costs   -    -    (0.6)   (0.1)
                     
Total  $10.7   $0.1   $32.3   $0.1 

 

  25

 

 

Alexander & Baldwin, Inc.
Reconciliation of Consolidated Net Income (Loss) to EBITDA

($ in millions)

 

     Three months ended
September 30,		    Nine months ended
September 30,		  
     2016    2015    % Change    2016    2015    % Change  
                                       
                                       
Net Income (Loss)    $(1.4)    $7.0      (120%)    $(9.0)    $43.0      (121%)  
Adjustments:                                            
Depreciation and amortization     28.7      13.8      108%     83.5      41.8      100%  
Interest     6.4      6.5      (2%)     20.1      20.2      0%  
Taxes     (2.4)     3.8      (163%)     (21.6)     26.4      (182%)  
EBITDA    $31.3     $31.1      1%    $73.0     $131.4      (44%)  

 

 

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Alexander & Baldwin, Inc.

Reconciliation of Materials & Construction Segment Operating Profit to EBITDA

 

($ in millions)

 

 

   1Q16   2Q16   3Q16   4Q16   2016 YTD 
                     
Materials & Construction segment operating profit
(excludes interest and taxes)		  $8.0   $4.9   $5.6        $18.5 
Adjustments:                         
Depreciation and amortization   2.9    3.0    2.9         8.8 
Income attributable to non-controlling interest   (0.5)   (0.1)   (0.5)        (1.1)
Materials & Construction segment EBITDA  $10.4   $7.8   $8.0        $26.2 
                          

 

   1Q15   2Q15   3Q15   4Q15   2015 
                     
Materials & Construction segment operating profit
(excludes interest and taxes)		  $7.2   $7.0   $7.5   $9.2   $30.9 
Adjustments:                         
Depreciation and amortization   2.9    3.0    3.0    2.8    11.7 
Income attributable to non-controlling interest   (0.6)   (0.3)   (0.3)   (0.3)   (1.5)
Materials & Construction segment EBITDA  $9.5   $9.7   $10.2   $11.7   $41.1 
                          

 

   1Q14   2Q14   3Q14   4Q14   2014 
                     
Materials & Construction segment operating profit
(excludes interest and taxes)		  $3.4   $8.0   $5.9   $8.6   $25.9 
Adjustments:                         
Depreciation and amortization   4.2    4.4    3.7    2.9    15.2 
Income attributable to non-controlling interest   (0.4)   (1.0)   (0.6)   (1.1)   (3.1)
Materials & Construction segment EBITDA  $7.2   $11.4   $9.0   $10.4   $38.0 
                          

 

   4Q13   2013 YTD 
   (a)   (a) 
Materials & Construction segment operating profit
(excludes interest and taxes)		  $2.9   $2.9 
Adjustments:          
Depreciation and amortization   4.4    4.4 
Income attributable to non-controlling interest  $(0.5)  $(0.5)
Materials & Construction segment EBITDA  $6.8   $6.8 

 

(a) Segment was formed on October 1, 2013 with the acquisition of Grace Pacific.

 

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Alexander & Baldwin, Inc.

Reconciliation of Commercial Real Estate Operating Profit to NOI (Non-GAAP)

($ in millions, unaudited)

 

   Quarter Ended September 30, 
   2016   2015     
   Hawaii   Mainland   Total   Hawaii   Mainland   Total   Change 
Commercial Real Estate Operating Profit  $12.9   $0.8   $13.7   $11.2   $1.3   $12.5    9.6%
Adjustments:                                   
Depreciation and amortization   5.4    1.6    7.0    5.0    2.4    7.4    (5.4)%
Straight-line lease adjustments   (0.5)   0.1    (0.4)   (0.8)   —    (0.8)   (50.0)%
General and administrative expenses   0.7    0.1    0.8    1.0    0.3    1.3    (38.5)%
Commercial Real Estate NOI   18.5    2.6    21.1    16.4    4.0    20.4    3.4%
Acquisitions / disposition and other adjustments   (1.5)   (0.1)   (1.6)   (0.3)   (1.3)   (1.6)   0.0%
Commercial Real Estate Same-Store NOI  $17.0   $2.5   $19.5   $16.1   $2.7   $18.8    3.7%

 

   Nine Months Ended September 30, 
   2016   2015     
   Hawaii   Mainland   Total   Hawaii   Mainland   Total   Change 
Commercial Real Estate Operating Profit  $38.7   $3.9   $42.6   $34.8   $4.8   $39.6    7.6%
Adjustments:                                   
Depreciation and amortization   15.9    5.8    21.7    14.3    7.5    21.8    (0.5)%
Straight-line lease adjustments   (1.9)   0.3    (1.6)   (2.1)   —    (2.1)   (23.8)%
General and administrative expenses   2.6    0.5    3.1    2.4    0.7    3.1    — 
Other   —    —    —    0.3    —    0.3    (100.0)%
Commercial Real Estate NOI   55.3    10.5    65.8    49.7    13.0    62.7    4.9%
Acquisitions / disposition and other adjustments   (6.4)   (2.5)   (8.9)   (2.2)   (4.7)   (6.9)   29.0%
Commercial Real Estate Same-Store NOI  $48.9   $8.0   $56.9   $47.5   $8.3   $55.8    2.0%

 

 

  28

 

 

Alexander & Baldwin, Inc.
Reconciliation of Commercial Real Estate Operating Profit to NOI Trailing 12 months (Non-GAAP)

 

($ in millions, unaudited)

 

   Trailing 12 Months Ended September 30, 2016 
   Hawaii   Mainland   Total 
                
Commercial Real Estate Operating Profit  $50.8   $5.3   $56.1 
Adjustments:               
Depreciation and amortization   20.5    8.3    28.8 
Straight-line lease adjustments   (2.7)   0.9    (1.8)
General and administrative expenses   3.2    0.7    3.9 
Commercial Real Estate NOI  $71.8   $15.2   $87.0 

 

  29