Alexander & Baldwin Holdings Inc
Alexander & Baldwin — Q4 2023 Earnings Presentation
27 slides from Alexander & Baldwin's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter and Full-Year 2023 Earnings Presentation
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Premier Commercial Real Estate Company Fourth Quarter and Full-Year 2023 Earnings Presentation February 28, 2024
Slide 2: Safe Harbor Statement
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Safe Harbor Statement Statements in this presentation 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
Slide 3: Agenda
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Agenda A L E X A N D E R & B A L D W I N 3 Lance Parker, President & CEO Real Estate and Strategic Update Clayton Chun, EVP, CFO & Treasurer Financial Matters Lance Parker, President & CEO Closing Remarks Q&A
Slide 4: Real Estate and Strategic Update
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Lance Parker, President & CEO Real Estate and Strategic Update
Slide 5: Q4 2023 CRE Results
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin N O I G r o w t h 4.7% S a m e - S t o r e N O I G r o w t h 4.3% S a m e - S t o r e N O I G r o w t h (excluding collections of prior year reserves) 4.8% C o r e F u n d s F r o m O p e r a t i o n s $0.29 per diluted share S a m e - S t o r e L e
Slide 6: Full-Year 2023 CRE Results
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin N O I G r o w t h 4.7% S a m e - S t o r e N O I G r o w t h 4.3% S a m e - S t o r e N O I G r o w t h (excluding collections of prior year reserves) 6.8% C o r e F u n d s F r o m O p e r a t i o n s $1.17 per diluted share S p r e a d s f o r N e
Slide 7: Fourth Quarter Accomplishments
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Fourth Quarter Accomplishments S T R A T E G I C U P D A T E 7 ✓ Pre-leased ground-up development • 30,000 sq. ft. with 32’ clear height • Space for up to 14 dock-high loading bays • Q4 2025 in-service date • $1 million of ABR when economic Warehous
Slide 8: Fourth Quarter Accomplishments
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Fourth Quarter Accomplishments S T R A T E G I C U P D A T E 8 • Sold Grace Pacific and related assets for $60 million: • $45 million in cash at closing • $15 million promissory note was paid in January 2024 • With the sale complete, A&B has no cont
Slide 9: Full-Year Accomplishments
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Full-Year Accomplishments S T R A T E G I C U P D A T E 9 Acquisition Kaomi Loop Industrial • Renovation of a strategically located urban-Honolulu asset • Estimated return of 8.0%-8.5% on capital invested to refresh the asset • Off-market sale lease
Slide 10: Resilient Portfolio
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Visitor Arrivals2 vs ALEX Occupancy3 Unemployment1 Resilient Portfolio S T R A T E G I C U P D A T E 1 0 Positioned well, with a high-quality, needs-based portfolio that has proven to be resilient 10.4M 2.7M 6.8M 9.2M 9.6M 93.9% 93.5% 94.3% 95.0% 94.
Slide 11: Financial Matters
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Financial Matters Clayton Chun, EVP, CFO & Treasurer
Slide 12: Financial Results
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Quarterly Results Q4 2023 Net income / (loss)1 $(3.5)M $(0.05) per diluted share Income from continuing operations1 $8.5M $0.12 per diluted share FFO $19.9M $0.27 per diluted share Core FFO $21.0M $0.29 per diluted share Quarterly results for 4Q 202
Slide 13: Other Financial Results
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin F I N A N C I A L M A T T E R S 1 3 Other Financial Results G&A • Fourth quarter 2023 Adjusted EBITDA of $6.3 million compared to $10.7 million in 2022 • Full-year 2023 Adjusted EBITDA of $10.8 million compared to $67.0 million in 2022 • Fourth quar
Slide 14: Strong & Flexible Balance Sheet
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin 1 4 Strong & Flexible Balance Sheet1 B A L A N C E S H E E T TOTAL LIQUIDITY CASH UNDRAWN REVOLVER $477M $14M $463M Board declared first quarter dividend of $0.2225 per share payable on April 5, 2024, to shareholders of record on March 15, 2024 Shar
Slide 15: Guidance
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Guidance Clayton Chun, EVP, CFO & Treasurer
Slide 16: Initial Full-Year 2024 Guidance
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Metric 2024 (E) CRE Same-Store NOI 1.0% to 2.0% Same Store NOI, excluding collections of amounts reserved in previous years 2.0% to 3.0% FFO per diluted share $0.95 to $1.05 AFFO per diluted share $0.80 to $0.90 Initial Full-Year 2024 Guidance G U I
Slide 17: FFO Guidance Considerations
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin $0.83 $0.94 $0.18 $0.15 $0.50 $0.55 $0.60 $0.65 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 2022 2023 2024 1Land Operations FFO per share is calculated as Total Land Operations operating profit divided by weighted-average diluted shares ou
Slide 18: Closing Remarks
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Closing Remarks Lance Parker, President & CEO
Slide 19: Q&A
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Q&A
Slide 20: Appendix
NYSE: ALEXAlexander & BaldwinPartners for Hawai‘i Appendix
Slide 21: Statement On Use Of Non-GAAP Financial Measures
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Statement On Use Of Non-GAAP Financial Measures The Company presents certain non-GAAP financial measures in this presentation. The Company uses these non-GAAP measures when evaluating operating performance because management believes that they provi
Slide 22: CRE Net Operating Income
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin CRE Net Operating Income A P P E N D I X 2 2 D O L L A R S I N M I L L I O N S ; A S O F D E C E M B E R 3 1 , 2 0 2 3 2023 2022 2023 2022 CRE Operating Prof it (Loss) $ 17.0 $ 21.2 $ 81.2 $ 81.5 Plus: Depreciation and amortization 9.2 9.1 36.5 36.5
Slide 23: Funds From Operations (FFO) And Core FFO
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin A P P E N D I X 2 3 Funds From Operations (FFO) And Core FFO I N M I L L I O N S E X C E P T P E R S H A R E D A T A ; A S O F D E C E M B E R 3 1 , 2 0 2 3 2023 2022 2023 2022 Net Income (Loss) available to A&B common shareholders $ (3.5) $ (71.6)
Slide 24: Consolidated Adjusted EBITDA
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Consolidated Adjusted EBITDA A P P E N D I X 2 4 D O L L A R S I N M I L L I O N S ; A S O F D E C E M B E R 3 1 , 2 0 2 3 2023 2022 2023 2022 Net Income (Loss) $ (3.2) $ (71.7) $ 33.0 $ (49.5) Adjustments: Depreciation and amortization 9.2 9.2 36.8
Slide 25: Net Debt
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Net Debt A P P E N D I X 2 5 D O L L A R S I N M I L L I O N S ; A S O F D E C E M B E R 3 1 , 2 0 2 3 December 31, 2023 Debt Secured debt $ 189.7 Unsecured term debt 237.3 Unsecured revolving credit facility 37.0 Total Debt $ 464.0 Add: Net unamort
Slide 26: Land Operations Adjusted EBITDA
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin Land Operations Adjusted EBITDA A P P E N D I X 2 6 D O L L A R S I N M I L L I O N S ; A S O F D E C E M B E R 3 1 , 2 0 2 3 2023 2022 2023 2022 Land Operations Operating Prof it (Loss) $ 6.3 $ 5.7 $ 10.8 $ (1.4) Land Operations depreciation and am
Slide 27: Core FFO to AFFO reconciliation
Partners for Hawai‘i NYSE: ALEXAlexander & Baldwin As part of the Company’s simplification process, Management will no longer report on or guide to Core FFO in 2024. Instead, Management will report and guide to AFFO. For comparative purposes, a reconciliation between Core FFO and AFFO is provided be