EX-99.2 3 a2019q3supplement.htm EXHIBIT 99.2 Exhibit



a572019q3supplement.jpg



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 – Condensed Consolidated Balance Sheets
Table 2 – Condensed Consolidated Statements of Operations
Table 3 – Segment Results
Table 4 – Condensed 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 & Renewal 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 as of September 30, 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, prevailing market conditions and other factors related to the Company's REIT status and the Company's business, as well as the evaluation of alternatives by the Company’s joint venture related to the development of Kukui‘ula, generally 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. We do not undertake any obligation to update the Company's 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 149-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 September 30, 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, including residential and commercial development-for-sale activities in select Hawai‘i locations; and
•
M&C operations primarily through its wholly owned subsidiary, Grace Pacific LLC ("Grace Pacific"), including strategic quarry and asphalt importation sites that supply the Hawaiian islands, paving activities and certain complementary operations.

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
Sandler O'Neill & Partners, L.P.
822 Bishop Street
 
Sheila McGrath
Alexander Goldfarb
Honolulu, HI 96813
 
(212) 497-0882
(212) 466-7937
 
 
sheila.mcgrath@evercoreisi.com
agoldfarb@sandleroneill.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 September 30, 2019:

$1.8
B
Shareholder website:  www.computershare.com/investor
 
3-month average trading volume:
254
K
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.
 
 
Adjusted EBITDA
Adjusted EBITDA is calculated on a consolidated basis ("Consolidated Adjusted EBITDA") and on a segment basis by adjusting Consolidated EBITDA or Segment EBITDA for M&C non-cash asset impairments, the other-than-temporary impairment related to the Company's investment in Kukui‘ula, and/or loss (income) attributable to noncontrolling interest.
 
 
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") is calculated as total Commercial Real Estate operating revenues less direct property-related operating expenses. Cash NOI excludes straight-line lease adjustments, amortization of favorable/unfavorable leases, amortization of lease incentives, selling, general and administrative expenses, impairment of commercial real estate assets, lease termination income, other income and expense, net, and depreciation and amortization (including amortization of maintenance capital, tenant improvements and leasing commissions).
 
 
Comparable Lease
Renewals and leases executed for units that have been vacated in the previous 12 months.  Expansions, contractions and strategic short-term renewals are excluded from the Comparable Lease pool.
 
 
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," "Materials & Construction EBITDA") by adjusting segment operating profit (which excludes interest and tax expenses), as applicable, by adding back depreciation and amortization.
 
 
Fixed-charge Coverage Ratio
The ratio of 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.
 
 
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 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 income attributable to noncontrolling interests and asset impairments.
 
 
Net Debt
Net Debt is calculated as the Company's total notional debt, excluding unamortized premium, discount and capitalized loan fees, less cash and cash equivalents.
 
 
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 prior calendar year. The same-store pool excludes properties under development or redevelopment and also excludes properties acquired or sold during 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 & Segment EBITDA for the asset impairments related to the Materials & Construction segment and the other-than-temporary impairment of the Kukui‘ula joint venture, where applicable, as the Company believes these items are infrequent in nature. The Company similarly adjusts Segment EBITDA for the same items in addition to adjusting for income attributable to noncontrolling interests to arrive at M&C Adjusted EBITDA. By excluding these items from EBITDA, the Company believes it provides meaningful supplemental information about its core operating performance and facilitates comparisons to historical operating results. EBITDA and Adjusted EBITDA 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 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 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 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 – Condensed Consolidated Balance Sheets
($ in millions, unaudited)
 
September 30,
2019
 
December 31, 2018
ASSETS
 
 
 
Real estate investments
 
 
 
Real estate property
$
1,531.4

 
$
1,293.7

Accumulated depreciation
(124.3
)
 
(107.2
)
Real estate property, net
1,407.1

 
1,186.5

Real estate developments
93.8

 
155.2

Investments in real estate joint ventures and partnerships
135.4

 
141.0

Real estate intangible assets, net
78.7

 
59.8

Real estate investments, net
1,715.0

 
1,542.5

Cash and cash equivalents
7.2

 
11.4

Restricted cash
0.2

 
223.5

Accounts receivable and retention, net
67.8

 
61.2

Inventories
23.9

 
26.5

Other property, net
131.4

 
135.5

Operating lease right-of-use assets
22.7

 
—

Goodwill
15.4

 
65.1

Other receivables
28.7

 
56.8

Prepaid expenses and other assets
109.4

 
102.7

Total assets
$
2,121.7

 
$
2,225.2

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Notes payable and other debt
$
732.4

 
$
778.1

Accounts payable
15.0

 
34.2

Operating lease liabilities
23.0

 
—

Accrued pension and post-retirement benefits
31.4

 
29.4

Indemnity holdbacks
7.5

 
16.3

Deferred revenue
68.4

 
63.2

Accrued and other liabilities
107.7

 
87.8

Total liabilities
985.4

 
1,009.0

Commitments and Contingencies
 
 
 
Redeemable Noncontrolling Interest
7.9

 
7.9

Equity:
 
 
 
Common stock - no par value; authorized, 150 million shares; outstanding, 72.3 million and 72.0 million shares at September 30, 2019 and December 31, 2018, respectively
1,797.4

 
1,793.4

Accumulated other comprehensive income (loss)
(55.0
)
 
(51.9
)
Distributions in excess of accumulated earnings
(617.6
)
 
(538.9
)
Total A&B shareholders' equity
1,124.8

 
1,202.6

Noncontrolling interest
3.6

 
5.7

Total equity
1,128.4

 
1,208.3

Total liabilities and equity
$
2,121.7

 
$
2,225.2



4


Alexander & Baldwin, Inc.
Financial Summary
Table 2 – Condensed Consolidated Statements of Operations
($ in millions, except per-share amounts; unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
 
 
2019
 
2018
 
2019
 
2018
Operating Revenue:
 
 
 
 
 
 
 
 
Commercial Real Estate
 
$
42.7

 
$
35.9

 
$
118.6

 
$
104.9

Land Operations
 
8.5

 
24.0

 
82.4

 
72.6

Materials & Construction
 
37.9

 
59.5

 
126.6

 
167.3

Total operating revenue
 
89.1

 
119.4

 
327.6

 
344.8

Operating Costs and Expenses:
 
 
 
 
 
 
 
 
Cost of Commercial Real Estate
 
23.8

 
19.2

 
64.3

 
57.0

Cost of Land Operations
 
5.9

 
17.4

 
68.5

 
67.0

Cost of Materials & Construction
 
42.0

 
50.5

 
127.2

 
143.5

Selling, general and administrative
 
13.3

 
14.6

 
45.1

 
44.7

Goodwill impairment
 
49.7

 
—

 
49.7

 
—

Total operating costs and expenses
 
134.7

 
101.7

 
354.8

 
312.2

Gain (loss) on the sale of commercial real estate properties
 
—

 
—

 
—

 
49.8

Operating Income (Loss)
 
(45.6
)
 
17.7

 
(27.2
)
 
82.4

Other Income and (Expenses):
 
 
 
 
 
 
 
 
Income (loss) related to joint ventures
 
2.4

 
4.5

 
6.1

 
6.3

Interest and other income (expense), net
 
0.6

 
3.7

 
2.8

 
2.1

Interest expense
 
(8.2
)
 
(9.1
)
 
(25.4
)
 
(26.4
)
Income (Loss) from Continuing Operations Before Income Taxes
 
(50.8
)
 
16.8

 
(43.7
)
 
64.4

Income tax benefit (expense)
 
—

 
(1.0
)
 
1.1

 
1.8

Income (Loss) from Continuing Operations
 
(50.8
)
 
15.8

 
(42.6
)
 
66.2

Income (loss) from discontinued operations, net of income taxes
 
(0.1
)
 
(0.2
)
 
(0.8
)
 
(0.2
)
Net Income (Loss)
 
(50.9
)
 
15.6

 
(43.4
)
 
66.0

Loss (income) attributable to noncontrolling interest
 
1.1

 
(0.8
)
 
1.8

 
(1.4
)
Net Income (Loss) Attributable to A&B Shareholders
 
$
(49.8
)
 
$
14.8

 
$
(41.6
)
 
$
64.6

 
 
 
 
 
 
 
 
 
Basic Earnings (Loss) Per Share of Common Stock:
 
 

 
 

 
 
 
 
Continuing operations available to A&B shareholders
 
$
(0.69
)
 
$
0.21

 
$
(0.57
)
 
$
0.92

Discontinued operations available to A&B shareholders
 
—

 
—

 
(0.01
)
 
—

Net income (loss) available to A&B shareholders
 
$
(0.69
)
 
$
0.21

 
$
(0.58
)
 
$
0.92

Diluted Earnings (Loss) Per Share of Common Stock:
 
 

 
 

 
 
 
 
Continuing operations available to A&B shareholders
 
$
(0.69
)
 
$
0.20

 
$
(0.57
)
 
$
0.89

Discontinued operations available to A&B shareholders
 
—

 
—

 
(0.01
)
 
—

Net income (loss) available to A&B shareholders
 
$
(0.69
)
 
$
0.20

 
$
(0.58
)
 
$
0.89

 
 
 
 
 
 
 
 
 
Weighted-Average Number of Shares Outstanding:
 
 

 
 

 
 
 
 
Basic
 
72.3

 
72.0

 
72.2

 
70.2

Diluted
 
72.3

 
72.4

 
72.2

 
72.4

 
 
 
 
 
 
 
 
 
Amounts Available to A&B Shareholders:
 
 
 
 
 
 
 
 
Continuing operations available to A&B shareholders, net of income taxes
 
$
(49.7
)
 
$
15.0

 
$
(40.8
)
 
$
64.8

Discontinued operations available to A&B shareholders, net of income taxes
 
(0.1
)
 
(0.2
)
 
(0.8
)
 
(0.2
)
Net income (loss) available to A&B shareholders
 
$
(49.8
)
 
$
14.8

 
$
(41.6
)
 
$
64.6


5


Alexander & Baldwin, Inc.
Financial Summary
Table 3 – Segment Results
 ($ in millions, unaudited)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Operating Revenue:
 
 
 
 
 
 
 
 
Commercial Real Estate
 
$
42.7

 
$
35.9

 
$
118.6

 
$
104.9

Land Operations
 
8.5

 
24.0

 
82.4

 
72.6

Materials & Construction
 
37.9

 
59.5

 
126.6

 
167.3

Total operating revenue
 
89.1

 
119.4

 
327.6

 
344.8

Operating Profit (Loss):
 
 
 
 
 
 
 
 
Commercial Real Estate1
 
18.0

 
15.9

 
50.6

 
45.0

Land Operations2
 
2.8

 
13.1

 
15.9

 
9.3

Materials & Construction
 
(57.9
)
 
3.4

 
(66.7
)
 
7.2

Total operating profit (loss)
 
(37.1
)
 
32.4

 
(0.2
)
 
61.5

Gain (loss) on the sale of commercial real estate properties
 
—

 
—

 
—

 
49.8

Interest expense
 
(8.2
)
 
(9.1
)
 
(25.4
)
 
(26.4
)
General corporate expenses
 
(5.5
)
 
(6.5
)
 
(18.1
)
 
(20.5
)
Income (Loss) from Continuing Operations Before Income Taxes
 
(50.8
)
 
16.8

 
(43.7
)
 
64.4

Income tax benefit (expense)
 
—

 
(1.0
)
 
1.1

 
1.8

Income (Loss) from Continuing Operations
 
(50.8
)
 
15.8

 
(42.6
)
 
66.2

Income (loss) from discontinued operations, net of income taxes
 
(0.1
)
 
(0.2
)
 
(0.8
)
 
(0.2
)
Net Income (Loss)
 
(50.9
)
 
15.6

 
(43.4
)
 
66.0

Loss (income) attributable to noncontrolling interest
 
1.1

 
(0.8
)
 
1.8

 
(1.4
)
Net Income (Loss) Attributable to A&B Shareholders
 
$
(49.8
)
 
$
14.8

 
$
(41.6
)
 
$
64.6

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 – Condensed Consolidated Statements of Cash Flows    
 ($ in millions, unaudited)
 
Nine Months Ended September 30,
 
2019
 
2018
Cash Flows from Operating Activities:
 
 
 
Net income (loss)
$
(43.4
)
 
$
66.0

Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
 
 
 
Depreciation and amortization
36.6

 
31.6

Deferred income taxes
—

 
(2.4
)
Loss (gain) on asset transactions, net
(2.6
)
 
(62.1
)
Goodwill impairment
49.7

 
—

Share-based compensation expense
4.1

 
4.0

(Income) loss from affiliates, net of distributions of income
(3.5
)
 
2.0

Changes in operating assets and liabilities:
 
 
 
Trade, contracts retention, and other contract receivables
(6.9
)
 
(4.9
)
Inventories
2.6

 
(0.3
)
Prepaid expenses, income tax receivable and other assets
25.8

 
(4.1
)
Accrued pension and post-retirement benefits
4.6

 
2.5

Accounts payable
(10.3
)
 
(8.3
)
Accrued and other liabilities
6.6

 
(7.3
)
Real estate development for sale proceeds
48.5

 
41.0

Expenditures for real estate development for sale
(7.8
)
 
(20.0
)
Net cash provided by (used in) operations
104.0

 
37.7

 
 
 
 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures for acquisitions
(218.4
)
 
(201.6
)
Capital expenditures for property, plant and equipment
(31.8
)
 
(40.0
)
Proceeds from disposal of property, investments and other assets
3.0

 
169.3

Payments for purchases of investments in affiliates and other investments
(3.3
)
 
(21.3
)
Distributions of capital from investments in affiliates and other investments
12.2

 
32.8

Net cash provided by (used in) investing activities
(238.3
)
 
(60.8
)
 
 
 
 
Cash Flows from Financing Activities:
 
 
 
Proceeds from issuance of long-term debt
111.8

 
533.5

Payments of long-term debt and deferred financing costs
(155.3
)
 
(433.6
)
Borrowings (payments) on line-of-credit agreement, net
(5.1
)
 
(14.2
)
Distribution to noncontrolling interests
(0.3
)
 
(0.2
)
Cash dividends paid
(36.2
)
 
(156.6
)
Proceeds from issuance (repurchase) of common stock and other, net
(1.0
)
 
(1.3
)
Payment of deferred acquisition holdback
(7.1
)
 
—

Net cash provided by (used in) financing activities
(93.2
)
 
(72.4
)
 
 
 
 
Cash, Cash Equivalents and Restricted Cash:
 
 
 
Net increase (decrease) in cash, cash equivalents, and restricted cash
(227.5
)
 
(95.5
)
Balance, beginning of period
234.9

 
103.2

Balance, end of period
$
7.4

 
$
7.7


7


Alexander & Baldwin, Inc.
Financial Summary
Table 5 – Debt Summary
As of September 30, 2019
($ in millions, unaudited)
 
 
 
 
 
 
Scheduled principal payments
 
 
 
 
Debt
Interest Rate
(%)
Weighted-
average
Interest
Rate (%)
Maturity
Date
Weighted-
average
Maturity
(Years)
 
2019
2020
2021
2022
2023
Thereafter
Total
Principal
 
Unamort
Deferred
Fin Cost/
(Discount)
Premium
 
Total
Secured:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kailua Town Center
(1)
5.95%
2021
2.0
 
$
0.1

$
0.4

$
9.8

$
—

$
—

$
—

$
10.3

 
$
—

 
$
10.3

Kailua Town Center #2
3.15%
3.15%
2021
1.8
 
0.1

0.1

4.5

—

—

—

4.7

 
(0.1
)
 
4.6

Heavy equipment financing
(2)
4.62%
2023
1.7
 
0.2

0.7

0.7

0.3

0.1

—

2.0

 
—

 
2.0

Laulani Village
3.93%
3.93%
2024
4.5
 
—

0.7

1.1

1.1

1.2

57.9

62.0

 
(0.7
)
 
61.3

Pearl Highlands
4.15%
4.15%
2024
4.9
 
0.5

1.9

2.0

2.2

2.2

75.2

84.0

 
0.8

 
84.8

Manoa Marketplace
(3)
3.14%
2029
8.5
 
0.4

1.6

1.7

1.7

1.7

52.7

59.8

 
(0.3
)
 
59.5

Subtotal / Wtd Ave
 
3.88%
 
5.6
 
$
1.3

$
5.4

$
19.8

$
5.3

$
5.2

$
185.8

$
222.8

 
$
(0.3
)
 
$
222.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unsecured:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loan 3
5.19%
5.19%
2019
0.2
 
$
0.7

$
—

$
—

$
—

$
—

$
—

$
0.7

 
$
—

 
$
0.7

Series D Note
6.90%
6.90%
2020
0.5
 
—

16.2

—

—

—

—

16.2

 
—

 
16.2

Bank syndicated loan
(4)
3.62%
2023
3.4
 
—

—

—

—

50.0

—

50.0

 
—

 
50.0

Series A Note
5.53%
5.53%
2024
3.3
 
—

—

7.1

7.1

7.1

7.2

28.5

 
—

 
28.5

Series J Note
4.66%
4.66%
2025
5.6
 
—

—

—

—

—

10.0

10.0

 
—

 
10.0

Series B Note
5.55%
5.55%
2026
4.1
 
—

—

1.0

9.0

9.0

27.0

46.0

 
—

 
46.0

Series C Note
5.56%
5.56%
2026
3.5
 
—

1.0

9.0

2.0

2.0

9.0

23.0

 
—

 
23.0

Series F Note
4.35%
4.35%
2026
4.2
 
—

2.4

4.5

—

5.5

9.6

22.0

 
—

 
22.0

Series H Note
4.04%
4.04%
2026
7.2
 
—

—

—

—

—

50.0

50.0

 
—

 
50.0

Series K Note
4.81%
4.81%
2027
7.6
 
—

—

—

—

—

34.5

34.5

 
(0.1
)
 
34.4

Series G Note
3.88%
3.88%
2027
4.0
 
7.5

5.4

1.5

6.0

5.0

17.1

42.5

 
—

 
42.5

Series L Note
4.89%
4.89%
2028
8.6
 
—

—

—

—

—

18.0

18.0

 
(0.3
)
 
17.7

Series I Note
4.16%
4.16%
2028
9.3
 
—

—

—

—

—

25.0

25.0

 
—

 
25.0

Term Loan 5
4.30%
4.30%
2029
10.3
 
—

—

—

—

—

25.0

25.0

 
—

 
25.0

Subtotal / Wtd Ave
 
4.63%
 
5.3
 
$
8.2

$
25.0

$
23.1

$
24.1

$
78.6

$
232.4

$
391.4

 
$
(0.4
)
 
$
391.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLP Asphalt revolving credit facility
(5)
3.27%
2020
1.1
 
$
—

$
0.5

$
—

$
—

$
—

$
—

$
0.5

 
$
—

 
$
0.5

Revolving credit facility
(6)
3.67%
2022
3.3
 
$
—

$
—

$
—

$
118.4

$
—

$
—

$
118.4

 
$
—

 
$
118.4

Subtotal / Wtd Ave
 
3.67%
 
3.2
 
$
—

$
0.5

$
—

$
118.4

$
—

$
—

$
118.9

 
$
—

 
$
118.9

Total / Wtd Ave
 
4.25%
 
5.1
 
$
9.5

$
30.9

$
42.9

$
147.8

$
83.8

$
418.2

$
733.1

 
$
(0.7
)
 
$
732.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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%.
(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
As of September 30, 2019
($ in millions, except number of shares and stock price; unaudited)
Debt
 
 
 
Secured debt
 
 
$
222.5

Unsecured term debt
 
 
391.0

Unsecured revolving credit facility
 
 
118.9

Total debt (A)
 
 
732.4

Add: Net unamortized deferred financing cost / discount (premium)
 
 
0.7

Less: cash and cash equivalents
 
 
(7.2
)
Net Debt
 
 
$
725.9

 
 
 
 
Market Capitalization
Shares
Stock Price
Market Value
Common stock (NYSE:ALEX)
72,258,124
$24.51
$
1,771.0

Total market capitalization (B)
 
 
$
1,771.0

 
 
 
 
Total Capitalization (C) = (A) + (B)
 
 
$
2,503.4

Total debt to total capitalization (A) / (C)
 
 
29.3
%
 
 
 
 
Liquidity
 
 
 
Cash on hand
 
 
$
7.2

Unused committed line of credit
 
 
329.9

Total liquidity
 
 
$
337.1

 
 
 
 
Financial Ratios
 
 
 
Net Debt to TTM Consolidated Adjusted EBITDA1
 
 
3.1 x

Fixed-charge Coverage Ratio2
 
 
5 x

Fixed-rate debt to total debt
 
 
76.9
%
Unencumbered CRE Assets Ratio3
 
 
75.5
%
1 Consolidated Adjusted EBITDA for the trailing twelve months ($234.3 million) includes the gain on the bulk agricultural land sale transaction of $162.2 million in the fourth quarter of 2018 and $6.7 million in the first quarter of 2019 for a total impact to TTM Consolidated Adjusted EBITDA of $168.9 million.
2 The ratio of Consolidated Adjusted EBITDA ($234.3 million) to the sum of debt service (which includes interest payments and principal amortization of mortgage debt and excludes balloon payments, or $46.5 million) for the trailing twelve months.
3 The gross book value of unencumbered CRE property ($1,147.9 million) as a percent of total CRE property ($1,520.4 million).

9


Alexander & Baldwin, Inc.
Financial Summary
Table 7 – Consolidated Metrics
($ in millions, unaudited)

Consolidated EBITDA & Consolidated Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
TTM September 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
Net Income (Loss)
 
$
(50.9
)
 
$
15.6

 
$
(43.4
)
 
$
66.0

 
$
(179.2
)
Adjustments:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
13.2

 
10.3

 
36.6

 
31.6

 
47.8

Interest expense
 
8.2

 
9.1

 
25.4

 
26.4

 
34.3

Income tax expense (benefit)
 
—

 
0.9

 
(1.1
)
 
(1.9
)
 
17.1

Consolidated EBITDA
 
$
(29.5
)
 
$
35.9

 
$
17.5

 
$
122.1

 
$
(80.0
)
Asset impairments related to the Materials and Construction Segment
 
49.7

 
—

 
49.7

 
—

 
127.5

Other-than-temporary impairment of Kukui‘ula joint venture
 
—

 
—

 
—

 
—

 
186.8

Consolidated Adjusted EBITDA
 
$
20.2

 
$
35.9

 
$
67.2

 
$
122.1

 
$
234.3

 
 
 
 
 
 
 
 
 
 
 
Other discrete items impacting the respective periods:
 
 
 
 
 
 
 
 
 
 
Loss (income) attributable to noncontrolling interest
 
1.1

 
(0.8
)
 
1.8

 
(1.4
)
 
1.0

(Income) loss from discontinued operations before interest, income taxes and depreciation and amortization
 
0.1

 
0.3

 
0.8

 
0.3

 
1.1

Goodwill and other long-lived asset impairments
 
49.7

 
—

 
49.7

 
—

 
129.1

Impairment of equity method investment
 
—

 
—

 
—

 
—

 
188.6

Loss (gain) on sale of commercial real estate properties
 
—

 
—

 
—

 
(49.8
)
 
(1.6
)
Loss (gain) on bulk agricultural land sale
 
—

 
—

 
(6.7
)
 
—

 
(168.9
)

Consolidated SG&A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Commercial Real Estate
 
$
2.3

 
$
1.4

 
$
7.8

 
$
4.7

Land Operations
 
1.5

 
1.7

 
4.1

 
4.7

Materials & Construction
 
4.1

 
5.2

 
15.8

 
15.4

Corporate and Other
 
5.4

 
6.3

 
17.4

 
19.9

Selling, general and administrative
 
$
13.3

 
$
14.6

 
$
45.1

 
$
44.7



10






















Commercial Real Estate



Alexander & Baldwin, Inc.
Commercial Real Estate
Table 8 – CRE Metrics
($ in millions, unaudited)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Operating Revenues:
 


 


 


 


Base rents
 
$
29.2

 
$
24.3

 
$
81.6

 
$
68.8

Recoveries from tenants
 
9.9

 
8.9

 
28.0

 
26.7

Other revenues
 
3.6

 
2.7

 
9.0

 
9.4

Total Commercial Real Estate revenues
 
42.7

 
35.9

 
118.6

 
104.9

Operating Costs and Expenses:
 
 
 
 
 
 
 
 
Property operations
 
10.0

 
8.9

 
27.2

 
27.3

Property taxes
 
4.0

 
3.1

 
10.8

 
9.2

Depreciation and amortization
 
9.8

 
7.2

 
26.3

 
20.5

Total Cost of Commercial Real Estate
 
23.8

 
19.2

 
64.3

 
57.0

Selling, general and administrative
 
(2.3
)
 
(1.4
)
 
(7.8
)
 
(4.7
)
Intersegment operating revenues1
 
0.7

 
0.6

 
1.9

 
1.9

Interest and other income (expense), net
 
0.7

 
—

 
2.2

 
(0.1
)
Operating Profit (Loss)
 
18.0

 
15.9

 
50.6

 
45.0

Plus: Depreciation and amortization
 
9.8

 
7.2

 
26.3

 
20.5

Less: Straight-line lease adjustments
 
(1.9
)
 
(2.0
)
 
(4.6
)
 
(2.7
)
Less: Favorable/(unfavorable) lease amortization
 
(0.1
)
 
(0.4
)
 
(1.1
)
 
(1.4
)
Less: Termination income
 
(0.1
)
 
—

 
(0.1
)
 
(1.1
)
Plus: Other (income)/expense, net
 
(0.7
)
 
—

 
(2.2
)
 
0.1

Plus: Selling, general, administrative and other expenses
 
2.3

 
1.4

 
7.8

 
4.7

Less: Impact of adoption of ASU 2016-022
 
—

 
(0.2
)
 
—

 
(0.5
)
Cash NOI as adjusted
 
27.3

 
21.9

 
76.7

 
64.6

Less: Cash NOI from acquisitions, dispositions and other adjustments
 
(8.0
)
 
(3.0
)
 
(17.5
)
 
(8.4
)
Same-Store Cash NOI as adjusted
 
$
19.3

 
$
18.9

 
$
59.2

 
$
56.2

 
 
 
 
 
 
 
 
 
Maintenance Capital Expenditures:
 
 
 
 
 
 
 
 
Building improvements
 
$
0.9

 
$
1.9

 
$
6.1

 
$
5.3

Tenant improvements
 
1.2

 
1.9

 
2.6

 
6.7

Total maintenance capital expenditures
 
$
2.1

 
$
3.8

 
$
8.7

 
$
12.0

 
 
 
 
 
 
 
 
 
Leasing Commissions Paid:
 
0.1

 
0.5

 
1.5

 
2.2

 
 
 
 
 
 
 
 
 
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 ASU 2016-02, 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 have been adjusted to include legal fees in conformity with Cash NOI for the 2019 periods presented.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
TTM September 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
Commercial Real Estate Operating Profit (Loss)
 
$
18.0

 
$
15.9

 
$
50.6

 
$
45.0

 
$
64.1

Depreciation and amortization
 
9.8

 
7.2

 
26.3

 
20.5

 
33.8

Commercial Real Estate EBITDA
 
$
27.8

 
$
23.1

 
$
76.9

 
$
65.5

 
$
97.9


11


Alexander & Baldwin, Inc.
Commercial Real Estate
Table 9 – Occupancy
(Unaudited)
Occupancy
 
 
 
 
 
 
 
As of
 
As of
 
Percentage Point Change
 
September 30, 2019
 
September 30, 2018
 
Retail
94.9%
 
92.7%
 
2.2
Industrial
95.4%
 
90.2%
 
5.2
Office
92.6%
 
91.7%
 
0.9
Total
95.0%
 
91.9%
 
3.1

Same-Store Occupancy
 
As of
 
As of
 
Percentage Point Change
 
September 30, 2019
 
September 30, 2018
 
Retail
94.3%
 
92.7%
 
1.6
Industrial
94.2%
 
90.2%
 
4.0
Office
92.6%
 
91.7%
 
0.9
Total
94.2%
 
91.8%
 
2.4

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 September 30,
 
Percentage Change
 
Nine Months Ended September 30,
 
Percentage Change
 
2019
 
20181
 
 
2019
 
20181
 
Retail
$
18,129

 
$
14,794

 
22.5%
 
$
51,127

 
$
41,602

 
22.9%
Industrial
4,298

 
3,218

 
33.6%
 
12,163

 
9,540

 
27.5%
Ground
3,917

 
2,903

 
34.9%
 
10,692

 
8,783

 
21.7%
Office
891

 
1,035

 
(13.9)%
 
2,772

 
3,183

 
(12.9)%
Total Hawai‘i Portfolio
$
27,235

 
$
21,950

 
24.1%
 
$
76,754

 
$
63,108

 
21.6%
Other
36

 
(33
)
 
NM
 
(14
)
 
1,482

 
NM
Total
$
27,271

 
$
21,917

 
24.4%
 
$
76,740

 
$
64,590

 
18.8%

Same-Store Cash NOI
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Percentage Change
 
Nine Months Ended September 30,
 
Percentage Change
 
2019
 
20181
 
 
2019
 
20181
 
Retail
$
12,032

 
$
11,743

 
2.5%
 
$
37,306

 
$
35,012

 
6.6%
Industrial
3,525

 
3,219

 
9.5%
 
10,343

 
9,540

 
8.4%
Ground
2,877

 
2,905

 
(1.0)%
 
8,748

 
8,570

 
2.1%
Office
888

 
1,031

 
(13.9)%
 
2,768

 
3,044

 
(9.1)%
Total
$
19,322

 
$
18,898

 
2.2%
 
$
59,165

 
$
56,166

 
5.3%
1 Upon the Company's adoption of ASU 2016-02, 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 the Same-Store pool as it relates to the comparable prior period and the current period are as follows:
Dispositions
 
Additions
Date
Property
 
Date
Property
11/18
Lahaina Square Shopping Center
 
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
Q3 2019 Cash NOI
Q3 2019 % Cash NOI to Total Portfolio Cash NOI
Retail Anchor Tenants
 
Retail:
 
 
 
 
 
 
 
 
 
 
1
Pearl Highlands Center
(1)
Oahu
1992-1994
411,400

99.8 %
$
11,025

$
27.24

$
2,601

11.2%
Sam's Club, Regal Cinemas, 24 Hour Fitness, Ulta Salon
2
Kailua Retail
(1)(3)
Oahu
1947-2014
319,100

96.5 %
11,081

36.34

2,932

12.6%
Whole Foods Market, Foodland, CVS/Longs Drugs, Ulta Salon
3
Laulani Village

Oahu
2012
175,800

99.3 %
6,278

36.91

1,592

6.8%
Safeway, Ross, Walgreens, Petco
4
Waianae Mall
(1)
Oahu
1975
170,300

86.3 %
3,090

21.04

661

2.9%
CVS/Longs Drugs, City Mill
5
Manoa Marketplace
(1)
Oahu
1977
140,600

84.3 %
3,922

33.31

979

4.2%
Safeway, CVS/Longs Drugs
6
Queens' MarketPlace

Hawai‘i Island
2007
134,700

92.3 %
5,574

53.61

1,350

5.8%
Island Gourmet
7
Kaneohe Bay Shopping Center (Leasehold)
(1)
Oahu
1971
125,400

100.0 %
3,102

24.73

650

2.8%
Safeway, CVS/Longs Drugs
8
Hokulei Village

Kauai
2015
119,200

99.2 %
4,187

35.69

1,009

4.3%
Safeway, Petco
9
Waipio Shopping Center
(1)
Oahu
1986, 2004
113,800

100.0 %
3,299

28.98

861

3.7%
Foodland
10
Aikahi Park Shopping Center
(1)
Oahu
1971
98,000

82.6 %
1,832

23.08

520

2.2%
Safeway
11
The Shops at Kukui‘ula
(1)
Kauai
2009
89,100

93.2 %
4,273

54.51

982

4.2%
CVS/Longs Drugs, Eating House, Living Foods Market
12
Lanihau Marketplace
(1)
Hawai‘i Island
1987
88,300

95.9 %
1,774

20.94

306

1.3%
Sak' N Save, CVS/Longs Drugs
13
Kunia Shopping Center
(1)
Oahu
2004
60,600

98.3 %
2,401

40.31

538

2.3%

14
Waipouli Town Center

Kauai
1980
56,600

93.9 %
947

17.82

276

1.2%
Foodland
15
Lau Hala Shops
(3)
Oahu
2018
46,000

100.0 %
2,609

58.69

539

2.3%

16
Napili Plaza
(1)
Maui
1991
45,600

87.6 %
1,219

30.51

330

1.4%
Napili Market
17
Kahului Shopping Center
(1)
Maui
1951
45,300

86.7 %
585

15.47

66

0.3%

18
Gateway at Mililani Mauka
(1)
Oahu
2008, 2013
34,900

93.2 %
1,810

55.73

449

1.9%
CVS/Longs Drugs (shadow-anchored)
19
Port Allen Marina Center
(1)
Kauai
2002
23,600

92.0 %
583

26.90

157

0.7%

20
The Collection

Oahu
2017
12,000

100.0 %
559

46.64

143

0.6%

21
Pu‘unene Shopping Center
(2)
Maui
2017
120,500

 N/A
—

—

762

3.3%
Planet Fitness, Petco, Ulta Salon, Target (shadow-anchored)
22
Ho‘okele Shopping Center
(2)
Maui
2019
66,600

 N/A
—

—

426

1.8%
 Safeway
 
Subtotal – Retail
 
 
 
2,497,400

94.9%
$
70,150

$
32.65

$
18,129

77.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Industrial:
 
 
 
 
 
 
 
 
 
 
23
Komohana Industrial Park
(1)
Oahu
1990
238,300

87.0 %
$
2,669

$
12.87

$
1,070

4.6%
 
24
Kaka‘ako Commerce Center
(1)
Oahu
1969
200,500

93.5 %
2,566

14.37

531

2.3%
 
25
Waipio Industrial
(1)
Oahu
1988-1989
158,400

100.0 %
2,551

16.11

648

2.8%
 
26
Opule Industrial

Oahu
2005-2006, 2018
151,500

100.0 %
2,320

15.31

469

2.0%
 
27
P&L Warehouse
(1)
Maui
1970
104,100

98.6 %
1,475

14.36

372

1.6%
 
28
Kapolei Enterprise Center

Oahu
2019
93,000

100.0 %
1,507

16.19

303

1.3%
 
29
Honokohau Industrial
(1)
Hawai‘i Island
2004-2006, 2008
86,500

100.0 %
1,169

13.80

307

1.3%
 
30
Kailua Industrial/Other
(1)
Oahu
1951-1974
69,000

93.4 %
1,099

17.58

266

1.1%
 
31
Port Allen
(1)
Kauai
1983, 1993
63,800

100.0 %
706

11.33

209

0.9%
 
32
Harbor Industrial
(1)
Maui
1930
51,100

87.2 %
535

12.01

122

0.5%
 
 
Subtotal – Industrial
 
 
 
1,216,200

95.4%
$
16,597

$
14.49

$
4,297

18.4%
 

14


 
Property

Island
Year Built/
Renovated
Current
GLA (SF)
Occupancy
ABR
ABR
PSF
Q3 2019 Cash NOI
Q3 2019 % Cash NOI to Total Portfolio Cash NOI
Retail Anchor Tenants
 
 
 
 
 
 
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
 
 
 
33
Kahului Office Building
(1)
Maui
1974
59,400

90.3 %
$
1,520

$
29.88

$
319

1.4%
 
34
Gateway at Mililani Mauka South
(1)
Oahu
1992, 2006
37,100

100.0 %
1,641

44.18

332

1.4%
 
35
Kahului Office Center
(1)
Maui
1991
33,400

85.3 %
743

26.04

183

0.8%
 
36
Lono Center
(1)
Maui
1973
13,700

100.0 %
327

23.93

54

0.2%
 
 
Subtotal – Office
 
 
 
143,600

92.6%
$
4,231

$
32.49

$
888

3.8%
 
 
Total – Hawai‘i Improved Portfolio
 
3,857,200

95.0%
$
90,978

$
26.57

$
23,314

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)

Ground
Leases (1)
 
Location
(City, Island)
Acres
Property Type
Exp. Year
Current ABR
Q3 2019 Cash NOI
Next Rent Step
Step Type
Next ABR ($ in $000)
Previous Rent Step
Previous Step Type
Previous ABR ($ in $000)
#1
(2)
Kaneohe, Oahu
15.4
Retail
2035
$
2,800

$
701

2023
FMV Reset
FMV

2017
Fixed Step
$
2,100

#2

Kapolei, Oahu
36.4
Industrial
2025
2,271

568

2020
Fixed Step
2,328

2019
Fixed Step
2,216

#3

Honolulu, Oahu
9.0
Retail
2045
1,886

472

2020
Fixed Step
2,075

—
Fixed Step
1,715

#4
(2)
Honolulu, Oahu
2.8
Retail
2040
1,344

337

2020
FMV Reset
FMV

2016
Fixed Step
1,296

#5
(2)
Kaneohe, Oahu
3.7
Retail
2048
990

248

2023
Fixed Step
1,059

2018
Option
694

#6
(2)
Kailua, Oahu
3.4
Retail
2062
753

188

2022
Fixed Step
963

2012
FMV Reset
160

#7
(2)
Pu'unene, Maui
52.0
Heavy Industrial
2034
751

199

2019
FMV Reset
FMV

2014
Fixed Step
626

#8
(2)
Kailua, Oahu
2.2
Retail
2062
485

122

2022
Fixed Step
621

2012
FMV Reset
unknown

#9
(2)
Kailua, Oahu
1.9
Retail
2034
450

74

2024
Fixed Step
470

2019
Negotiated
641

#10
(2)
Honolulu, Oahu
0.5
Retail
2028
348

90

2020
Fixed Step
357

2019
Fixed Step
340

#11
(2)
Honolulu, Oahu
0.5
Parking
2023
319

79

2020
Fixed Step
329

2019
Fixed Step
310

#12
(2)
Kailua, Oahu
3.3
Office
2037
257

72

2022
FMV Reset
FMV

2012
Negotiated
226

#13
(2)
Kailua, Oahu
0.9
Retail
2033
243

61

2020
Fixed Step
248

2019
FMV Reset
181

#14
(2)
Kailua, Oahu
1.2
Retail
2022
237

56

—
—
—

2013
FMV Reset
120

#15
(2)
Kahului, Maui
0.8
Retail
2026
235

59

2019
Fixed Step
242

2018
Fixed Step
228

#16
(2)
Kahului, Maui
0.4
Retail
2020
214

53

Option
Fixed Step
220

2019
Fixed Step
207

#17
(2)
Kahului, Maui
0.8
Industrial
2020
200

50

Option
Fixed Step
209

2019
Fixed Step
192

#18
(2)
Kahului, Maui
0.5
Retail
2029
173

81

2020
Fixed Step
179

2019
Fixed Step
168

#19
(2)
Kahului, Maui
0.4
Retail
2027
158

57

2022
Fixed Step
181

2017
Negotiated
128

#20
(2)
Kailua, Oahu
0.4
Retail
2022
151

38

2020
Fixed Step
158

2019
Negotiated
144

Remainder
(2)
Various
17.5
Various
Various
1,461

313

Various
Various
—

—
—
—

Total - Ground Leases
154.0
 
 
$
15,726

$
3,918

 
 
 
 
 
 
 
(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
Portfolio
ABR
 
GLA (SF)
 
% of Total
Portfolio
GLA
Albertsons Companies (including Safeway)
7

 
$
6,853

 
7.5
%
 
286,024

 
7.4
%
Sam's Club
1

 
3,308

 
3.6
%
 
180,908

 
4.7
%
CVS Corporation (including Longs Drugs)
6

 
2,752

 
3.0
%
 
150,411

 
3.9
%
Foodland Supermarket & related companies
10

 
2,598

 
2.9
%
 
146,901

 
3.8
%
Ross Dress for Less
2

 
1,992

 
2.2
%
 
65,484

 
1.7
%
Coleman World Group
2

 
1,780

 
2.0
%
 
115,495

 
3.0
%
Ulta Salon, Cosmetics, & Fragrance, Inc.
3

 
1,508

 
1.7
%
 
33,985

 
0.9
%
24 Hour Fitness USA
1

 
1,375

 
1.5
%
 
45,870

 
1.2
%
Petco Animal Supplies Stores
3

 
1,316

 
1.4
%
 
34,282

 
0.9
%
Whole Foods Market
1

 
1,210

 
1.3
%
 
31,647

 
0.8
%
Total
36

 
$
24,692

 
27.1
%
 
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 September 30, 2019
($ in thousands, unaudited)
Total Portfolio
Expiration Year
Number
of Leases
 
Square
Footage of
Expiring Leases
 
% of Total
Portfolio
Leased GLA
 
ABR
Expiring
 
% of Total
Portfolio
Expiring ABR
2019
23
 
58,481

 
1.7%
 
$
1,574

 
1.6%
2020
164
 
502,453

 
14.4%
 
11,729

 
11.6%
2021
158
 
593,857

 
17.0%
 
14,980

 
14.9%
2022
163
 
395,367

 
11.3%
 
12,874

 
12.8%
2023
108
 
252,510

 
7.2%
 
8,579

 
8.5%
2024
70
 
421,261

 
12.1%
 
11,670

 
11.6%
2025
26
 
145,923

 
4.2%
 
4,551

 
4.5%
2026
21
 
177,796

 
5.1%
 
4,797

 
4.8%
2027
18
 
145,301

 
4.2%
 
4,007

 
4.0%
2028
30
 
205,569

 
5.9%
 
7,991

 
7.9%
Thereafter
43
 
479,645

 
13.8%
 
15,368

 
15.3%
Month-to-month
86
 
107,611

 
3.1%
 
2,559

 
2.5%
Total
910
 
3,485,774

 
100.0%
 
$
100,679

 
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
2019
12
 
40,441

 
1.8%
 
$
1,221

 
1.6%
2020
99
 
266,374

 
12.2%
 
7,862

 
10.2%
2021
95
 
346,500

 
15.9%
 
11,075

 
14.4%
2022
114
 
220,658

 
10.1%
 
9,759

 
12.7%
2023
87
 
193,977

 
8.8%
 
7,609

 
9.9%
2024
58
 
356,093

 
16.2%
 
10,524

 
13.7%
2025
24
 
76,993

 
3.5%
 
3,300

 
4.3%
2026
16
 
27,331

 
1.2%
 
1,632

 
2.1%
2027
16
 
67,709

 
3.1%
 
2,466

 
3.2%
2028
26
 
160,661

 
7.3%
 
7,049

 
9.2%
Thereafter
37
 
380,926

 
17.4%
 
12,797

 
16.6%
Month-to-month
47
 
55,425

 
2.5%
 
1,722

 
2.1%
Total
631
 
2,193,088

 
100.0%
 
$
77,016

 
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
2019
10
 
16,045

 
1.4%
 
$
259

 
1.4%
2020
53
 
206,406

 
17.8%
 
2,891

 
15.3%
2021
49
 
225,088

 
19.4%
 
3,261

 
17.2%
2022
39
 
156,643

 
13.5%
 
2,477

 
13.1%
2023
16
 
47,694

 
4.1%
 
689

 
3.6%
2024
7
 
49,704

 
4.3%
 
742

 
3.9%
2025
2
 
68,930

 
5.9%
 
1,250

 
6.6%
2026
4
 
136,381

 
11.8%
 
2,352

 
12.4%
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
36
 
49,565

 
4.3%
 
752

 
4.0%
Total
222
 
1,159,706

 
100.0%
 
$
18,936

 
100.0%


18


Alexander & Baldwin, Inc.
Commercial Real Estate
Table 15 – New & Renewal Lease Summary
At September 30, 2019
(Unaudited)
 
 
 
 
 
 
Comparable Leases Only1
Total - New and Renewal Leases
Leases
GLA
New
ABR / SF
TI / SF
Wtd Ave Lease Term (Years)
Leases
GLA
New
ABR / SF
Old
ABR / SF
Rent Spread2
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%
4th Quarter - 2018
55
259,009

$
21.07

$
4.35

7.4
29
105,026

$
22.55

$
20.79

8.5%
Trailing four quarters
217
700,435

$
24.55

$
4.37

5.4
132
363,171

$
26.08

$
24.17

7.9%
 
 
 
 
 
 
 
 
 
 
 
Total - New Leases
Leases
GLA
New
ABR / SF
TI / SF
Wtd Ave Lease Term (Years)
Leases
GLA
New
ABR / SF
Old
ABR / SF
Rent Spread2
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%
4th Quarter - 2018
33
163,240

$
22.43

$
6.78

9.2
9
17,247

$
39.60

$
40.26

(1.6)%
Trailing four quarters
101
357,739

$
24.56

$
7.39

6.2
26
49,918

$
33.73

$
32.32

4.4%
 
 
 
 
 
 
 
 
 
 
 
Total - Renewal Leases
Leases
GLA
New
ABR / SF
TI / SF
Wtd Ave Lease Term (Years)
Leases
GLA
New
ABR / SF
Old
ABR / SF
Rent Spread2
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

$
—

3.2
25
63,912

$
23.44

$
21.18

10.7%
4th Quarter - 2018
22
95,769

$
18.77

$
0.20

4.3
20
87,779

$
19.20

$
16.96

13.2%
Trailing four quarters
116
342,696

$
24.54

$
1.23

4.5
106
313,253

$
24.87

$
22.88

8.7%
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
 
 
Leases
GLA
ABR / SF
Rent Spread2
 
Leases
GLA (SF)
ABR / SF
Rent Spread2
 
Retail
27
42,126

$
40.09

5.4%
Retail
78
148,189

$
47.06

8.1%
 
Industrial
19
51,752

$
15.66

10.1%
Industrial
69
261,964

$
14.78

7.6%
 
Office
9
20,183

$
26.59

3.4%
Office
15
31,273

$
28.44

6.3%
 
1 Per Glossary of Terms, Comparable Leases are renewals and leases executed for units that have been vacated in the previous 12 months. 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 leases for the period defined.

19


Alexander & Baldwin, Inc.
Commercial Real Estate
Table 16 – Portfolio Repositioning, Redevelopment & Development Summary
As of September 30, 2019
 ($ in millions, unaudited)
 
 
 
 
 
 
 
 
 
 
Leasing Activity

Project1
Phase
Target
In-service
Target
Stabilization
Book Value of Land
& Related Cost
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
Costs2
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
$0.7
$1.5 - $1.7
8.2 - 9.0%
98,000
83
6
89
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
2 Ranges are calculated based on the midpoint of Total Estimated Project Capital Costs & Contributed Land Basis where applicable. Amounts in this table are rounded to the nearest tenth of a million, and therefore a recalculation of percentages, if based on the reported data, may be slightly different.

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

 
135,000

Waipouli Town Center
Retail
Kauai, HI
5/19
17.8

 
56,500

Kapolei Business Park West
Ground Lease
Oahu, HI
4/19
41.1

 
N/A

Kapolei Enterprise Center
Industrial
Oahu, HI
4/19
26.7

 
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
 
 
 
$
521.9

 
863,200


21






















Land Operations



Alexander & Baldwin, Inc.
Land Operations
Table 18 – Statement of Operating Profit, EBITDA and Adjusted EBITDA
($ in millions, unaudited)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Development sales revenue
 
$
0.8

 
$
9.0

 
$
31.2

 
$
42.8

Unimproved/other property sales revenue
 
1.5

 
9.1

 
32.4

 
11.5

Other operating revenue1
 
6.2

 
5.9

 
18.8

 
18.3

Total Land Operations operating revenue
 
$
8.5

 
$
24.0

 
$
82.4

 
$
72.6

Land Operations costs and operating expenses
 
(7.4
)
 
(19.3
)
 
(72.6
)
 
(71.8
)
Earnings (loss) from joint ventures
 
1.9

 
4.5

 
5.3

 
6.0

Interest and other income (expense), net
 
(0.2
)
 
3.9

 
0.8

 
2.5

Land Operations operating profit (loss)
 
$
2.8

 
$
13.1

 
$
15.9

 
$
9.3

1 Other operating revenue include revenue related to trucking, renewable energy and diversified agriculture.

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
TTM September 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
Land Operations Operating Profit (Loss)
 
$
2.8

 
$
13.1

 
$
15.9

 
$
9.3

 
$
(20.1
)
Depreciation and amortization
 
0.4

 
0.9

 
1.2

 
1.4

 
1.7

EBITDA
 
3.2

 
14.0

 
17.1

 
10.7

 
(18.4
)
Other-than-temporary impairment of Kukui‘ula joint venture
 
—

 
—

 
—

 
—

 
186.8

Land Operations Adjusted EBITDA
 
$
3.2

 
$
14.0

 
$
17.1

 
$
10.7

 
$
168.4




22


Alexander & Baldwin, Inc.
Land Operations
Table 19 – Key Active Development-for-sale Projects and Investments
As of September 30, 2019
($ in millions except per square foot and per unit 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
Cost / 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
Kahala Avenue
Portfolio
Honolulu,
Oahu
Residential
100%
17
acres
0.4
16 acres
1 acre
$200-$335
$
135

N/A

$
134

$
134

$
10

 
N/A
N/A
 
2013
2019
Maui Business Park
(Phase II)
Kahului,
Maui
Light
industrial
lots
100%
125
acres
1.9
35 acres
89 acres
$38-$60
$
91

N/A

$
59

$
59

$
39

 
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

$
119

 
2006
2041
 
2006
2042
Other Kukui‘ula Related Investments4 5
Poipu,
Kauai
Resort
residential
75% +/- 5%
58 units
N/A
39 units
19 units
$1.8M per unit
$
102

$
52

$
78

$
52

$
20

 
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 September 30, 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 as of September 30, 2019
(In acres, unaudited)
Type
Maui
Kauai
Oahu
Total
Acres
Land used in other operations
21
20
—
41
Urban land, not in active development/use
 
 
 
 
Urban Developable, full or partial infrastructure
110
6
—
116
Urban Developable, limited or no infrastructure
186
29
—
215
Urban Other
21
6
—
27
Subtotal - Urban land, not in active development/use
317
41
—
358
Agriculture-related
 
 
 
 
Agriculture/Other
6,266
6,358
75
12,699
Urban entitlement process
357
260
—
617
Conservation & preservation
392
13,309
509
14,210
Subtotal - Agriculture-related
7,015
19,927
584
27,526
Total Land Operations Landholdings
7,353
19,988
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 September 30,
 
Nine Months Ended September 30,
 
TTM September 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
Operating Profit (Loss)1
 
$
(57.9
)
 
$
3.4

 
$
(66.7
)
 
$
7.2

 
$
(147.1
)
Depreciation and amortization
 
2.7

 
3.0

 
8.5

 
9.1

 
11.5

EBITDA
 
(55.2
)
 
6.4

 
(58.2
)
 
16.3

 
(135.6
)
Asset impairments related to the Materials & Construction segment
 
49.7

 
—

 
49.7

 
—

 
127.5

Loss (income) attributable to noncontrolling interest
 
1.1

 
(0.8
)
 
1.8

 
(1.4
)
 
1.0

M&C Adjusted EBITDA
 
$
(4.4
)
 
$
5.6

 
$
(6.7
)
 
$
14.9

 
$
(7.1
)
 
 
 
 
 
 
 
 
 
 
 
Other discrete items impacting the respective periods:
 
 
 
 
 
 
 
 
 
 
One-time charges related to the evaluation of strategic options for the Materials & Construction Segment
 
0.3

 
0.5

 
1.5

 
1.8

 
1.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
TTM September 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
Adjusted EBITDA margin
 
(11.6)%
 
9.4%
 
(5.3)%
 
8.9%
 
(4.1)%
Aggregate tons delivered (tons in thousands)
 
209.9
 
191.2
 
620.5
 
542.0
 
796.7
Asphalt tons delivered (tons in thousands)
 
68.3
 
152.3
 
238.0
 
412.6
 
323.6
Crew days lost to weather
 
54.0
 
95.0
 
231.0
 
314.5
 
277.0
Total available crew days
 
641.0
 
690.0
 
1,885.0
 
1,961.0
 
2,467.0
% days lost to weather
 
8.4%
 
13.8%
 
12.3%
 
16.0%
 
11.2%
Backlog (as of period end, in millions)
 
$93.9
 
$157.4
 
 
 
 
 
 
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.

25