Hawaii | 001-35492 | 45-4849780 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Company Overview | |
Company Profile | |
Hawai`i Market Information | |
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 EBITDA | |
Commercial Real Estate | |
Table 8 – Statement of Operating Profit, Cash NOI and Same-Store Cash NOI | |
Table 9 – Occupancy | |
Table 10 – Cash NOI and Same-Store Cash NOI by Type | |
Table 11 – Property Report | |
Table 12 – Ground Lease Report | |
Table 13 – Portfolio Summary | |
Table 14 – Top 10 Tenants Ranked by ABR | |
Table 15 – Lease Expiration Schedule | |
Table 16 – New & Renewal Lease Summary | |
Table 17 – Portfolio Repositioning, Redevelopment & Development Summary | |
Table 18 – Transactional Activity (2013- 2018) | |
Table 19 – Commercial Real Estate EBITDA | |
Land Operations | |
Table 20 – Statement of Operating Profit & EBITDA | |
Table 21 – Key Active Development-for-sale Projects | |
Table 22 – Landholdings as of the Most Recent Fiscal Year End | |
Materials & Construction | |
Table 23 – Statement of Operating Profit, EBITDA and Adjusted EBITDA | |
Other Supplemental Information | |
Table 24 – Commercial Real Estate Historical Cash NOI Trends |
• | A 3.3 million square foot portfolio of commercial real estate throughout the Hawaiian islands, including 2.1 million square feet of largely grocery/drugstore-anchored retail centers; |
• | More than 86,000 acres of landholdings, making us the fourth largest private landowner in Hawai`i. In addition, we are engaged in residential and commercial development-for-sale activities in select Hawai`i locations; and |
• | Hawai`i's most significant materials and construction operations including strategic quarry and asphalt importation sites that supply the Hawaiian islands, paving activities and certain complementary operations. |
Executive Officers | ||
Christopher Benjamin | James Mead | |
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 | |
Pike Riegert | Meredith Ching | |
President, Grace Pacific | Executive Vice President, Government & Community Relations | |
Contact Information | Equity Research | |
Corporate Headquarters | Evercore ISI | |
822 Bishop Street | Sheila McGrath | |
Honolulu, HI 96813 | (212) 425-3389 | |
sheila.mcgrath@evercore.com | ||
Investor Relations | ||
Suzy Hollinger | JMP Securities LLC | |
Director, Investor Relations | Peter Martin | |
(808) 525-8422 | (415) 835-8904 | |
shollinger@abhi.com | pmartin@jmpsecurities.com | |
Transfer Agent & Registrar | Sidoti & Company, LLC | |
Computershare | Stephen O'Hara | |
P.O. Box 30170 | (212) 894-3329 | |
College Station, TX 77842-3170 | sohara@sidoti.com | |
(866) 422-6551 | ||
Other Company Information | ||
Overnight Correspondence | ||
Computershare | Stock exchange listing: NYSE: ALEX | |
211 Quality Circle, Suite 210 | Corporate website: www.alexanderbaldwin.com | |
College Station, TX 77845 | Grace website: www.gracepacific.com | |
Market capitalization at March 31, 2018 $1.7B | ||
Shareholder website: www.computershare.com/investor | 3-month average trading volume: 427K | |
Online inquiries: www.us-computershare.com/investor/contact | Independent auditors: Deloitte & Touche LLP |
Hawai`i Economic Highlights | |||
(Percentage change) | 2018 F | 2017 | |
Real gross domestic product | 1.7% | 1.6% | |
Real personal income | 1.5% | 1.2% | |
Visitor expenditures | 4.5% | 6.2% | |
Visitor arrivals | 2.7% | 5.0% | |
Unemployment rate | 0.1% | (0.5)% | |
Source: Hawai`i State Department of Business, Economic Development & Tourism; No endorsement implied. |
Oahu Commercial Real Estate Trends | ||||||||
Average Asking Rent PSF/Per Month | Change from Prior Quarter | |||||||
Retail | Industrial | Retail | Industrial | |||||
1Q2018 | $4.10 | $1.23 | 2.5% | (5.4)% | ||||
4Q2017 | $4.00 | $1.30 | 1.5% | 4.0% | ||||
3Q2017 | $3.94 | $1.25 | (1.5)% | 0.8% | ||||
2Q2017 | $4.00 | $1.24 | (1.7)% | 4.2% | ||||
1Q2017 | $4.07 | $1.19 | 3.8% | (1.7)% | ||||
Vacancy Rate | Percentage Point Change from Prior Quarter | |||||||
Retail | Industrial | Retail | Industrial | |||||
1Q2018 | 6.2% | 2.0% | 0.3 | — | ||||
4Q2017 | 5.9% | 2.0% | (1.3) | 0.1 | ||||
3Q2017 | 7.2% | 1.9% | (0.5) | 0.1 | ||||
2Q2017 | 7.7% | 1.8% | (1.5) | 0.3 | ||||
1Q2017 | * | 9.2% | 1.5% | 0.8 | (0.1) | |||
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 for the Materials & Construction segment by adjusting for income attributable to noncontrolling interests from EBITDA. |
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 Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is believed to be perfunctory. |
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 rent adjustments, amortization of favorable/unfavorable leases, amortization of lease incentives, general and administrative expenses, impairment of commercial real estate assets, lease termination income, 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. |
Net Debt | Net Debt is calculated as the Company's total notional debt, excluding unamortized premium, discount and capitalized loan fees, less cash, cash equivalents and restricted cash. |
EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated on a consolidated basis 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 by adjusting consolidated segment operating profit (which excludes interest and tax expenses), as applicable, by adding back depreciation and amortization. |
Fixed-charge Coverage Ratio | The ratio of 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 (GAAP) in the United States of America. |
GLA | Gross Leasable Area (GLA) is periodically adjusted based on remeasurement or reconfiguration of space, measured in square feet (SF). |
Maintenance Capital Expenditures | Capital expenditures necessary to maintain building value, the current income stream and position in the market (including building improvements, tenant improvements allowances and leasing commissions). |
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 upon one full calendar year of stabilized operation, which is typically upon attainment of market occupancy. |
Straight-line Rent | GAAP requirement to average tenant rents over the life of the lease. |
TTM | Trailing twelve months. |
Year Built | Year of most recent repositioning/redevelopment or year built if no repositioning/redevelopment has occurred. |
• | Consolidated EBITDA |
• | Commercial Real Estate Cash NOI and Same-Store Cash NOI |
• | Commercial Real Estate EBITDA |
• | Land Operations EBITDA |
• | Materials & Construction EBITDA and Adjusted EBITDA |
• | Refer to Table 7 for a reconciliation of consolidated net income to EBITDA. |
• | Refer to Table 8 for a reconciliation of Commercial Real Estate operating profit to Cash NOI. |
• | Refer to Table 19 for a reconciliation of Commercial Real Estate operating profit to EBITDA. |
• | Refer to Table 20 for a reconciliation of Land Operations operating profit to EBITDA. |
• | Refer to Table 23 for a reconciliation of Materials & Construction operating profit to EBITDA. |
March 31, | December 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 26.5 | $ | 68.9 | |||
Accounts receivable, net | 37.5 | 34.1 | |||||
Contracts retention | 12.7 | 13.2 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 16.2 | 20.2 | |||||
Inventories | 29.6 | 31.9 | |||||
Real estate held for sale | 15.6 | 67.4 | |||||
Income tax receivable | 25.7 | 27.7 | |||||
Prepaid expenses and other assets | 14.7 | 11.4 | |||||
Total current assets | 178.5 | 274.8 | |||||
Investments in Affiliates | 397.0 | 401.7 | |||||
Real Estate Developments | 142.0 | 151.0 | |||||
Property – Net | 1,317.6 | 1,147.5 | |||||
Intangible Assets – Net | 80.5 | 46.9 | |||||
Deferred Tax Asset | 18.6 | 16.5 | |||||
Goodwill | 102.3 | 102.3 | |||||
Restricted Cash | 17.1 | 34.3 | |||||
Other Assets | 57.1 | 56.2 | |||||
Total assets | $ | 2,310.7 | $ | 2,231.2 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Notes payable and current portion of long-term debt | $ | 42.8 | $ | 46.0 | |||
Accounts payable | 32.6 | 43.3 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 3.9 | 5.7 | |||||
Accrued interest | 5.4 | 6.5 | |||||
Deferred revenue | 3.0 | 0.9 | |||||
Indemnity holdback related to Grace acquisition | 9.3 | 9.3 | |||||
HC&S cessation-related liabilities | 4.4 | 4.6 | |||||
Accrued dividends(a) | — | 783.0 | |||||
Accrued and other liabilities | 21.9 | 27.5 | |||||
Total current liabilities | 123.3 | 926.8 | |||||
Long-term Liabilities: | |||||||
Long-term debt | 795.8 | 585.2 | |||||
Accrued pension and post-retirement benefits | 20.1 | 19.9 | |||||
Other non-current liabilities | 38.3 | 40.2 | |||||
Total long-term liabilities | 854.2 | 645.3 | |||||
Total liabilities | 977.5 | 1,572.1 | |||||
Commitments and Contingencies | |||||||
Redeemable Noncontrolling Interest | 8.0 | 8.0 | |||||
Equity: | |||||||
Common stock | 1,789.4 | 1,161.7 | |||||
Accumulated other comprehensive loss | (40.4 | ) | (42.3 | ) | |||
Distributions in excess of accumulated earnings | (428.4 | ) | (473.0 | ) | |||
Total A&B shareholders' equity | 1,320.6 | 646.4 | |||||
Noncontrolling interest | 4.6 | 4.7 | |||||
Total equity | 1,325.2 | 651.1 | |||||
Total liabilities and equity | $ | 2,310.7 | $ | 2,231.2 |
(a) | Amount as of December 31, 2017 represents the Company's Special Distribution, consisting of $156.6 million of cash and $626.4 million of shares, which was settled on January 23, 2018. |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating Revenue: | |||||||
Commercial Real Estate | $ | 35.2 | $ | 33.7 | |||
Land Operations | 29.3 | 11.0 | |||||
Materials & Construction | 48.8 | 48.5 | |||||
Total operating revenue | 113.3 | 93.2 | |||||
Operating Costs and Expenses: | |||||||
Cost of Commercial Real Estate | 18.6 | 18.8 | |||||
Cost of Land Operations | 29.8 | 8.4 | |||||
Cost of Materials & Construction | 42.9 | 39.1 | |||||
Selling, general and administrative | 15.0 | 14.7 | |||||
REIT evaluation/conversion costs | — | 4.8 | |||||
Total operating costs and expenses | 106.3 | 85.8 | |||||
Operating Income (Loss) | 7.0 | 7.4 | |||||
Income (loss) related to joint ventures | (2.6 | ) | 1.3 | ||||
Reductions in solar investments, net | (0.1 | ) | (2.0 | ) | |||
Interest and other income (expense), net | (0.7 | ) | 0.3 | ||||
Interest expense | (8.4 | ) | (6.2 | ) | |||
Income (Loss) from Continuing Operations Before Income Taxes and Net Gain (Loss) on Sale of Improved Properties and Ground Leased Land | (4.8 | ) | 0.8 | ||||
Income tax benefit (expense) | 2.7 | 0.8 | |||||
Income (Loss) from Continuing Operations Before Net Gain (Loss) on Sale of Improved Properties and Ground Leased Land | (2.1 | ) | 1.6 | ||||
Net gain (loss) on the sale of improved properties and ground leased land | 49.6 | 3.0 | |||||
Income (Loss) from Continuing Operations | 47.5 | 4.6 | |||||
Income (loss) from discontinued operations, net of income taxes | (0.1 | ) | 2.4 | ||||
Net Income (Loss) | 47.4 | 7.0 | |||||
Income attributable to noncontrolling interest | (0.1 | ) | (0.7 | ) | |||
Net Income (Loss) Attributable to A&B Shareholders | $ | 47.3 | $ | 6.3 | |||
Basic Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.71 | $ | 0.09 | |||
Discontinued operations available to A&B shareholders | — | 0.05 | |||||
Net income (loss) available to A&B shareholders | $ | 0.71 | $ | 0.14 | |||
Diluted Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.66 | $ | 0.09 | |||
Discontinued operations available to A&B shareholders | — | 0.05 | |||||
Net income (loss) available to A&B shareholders | $ | 0.66 | $ | 0.14 | |||
Weighted-Average Number of Shares Outstanding: | |||||||
Basic | 66.4 | 49.1 | |||||
Diluted | 72.2 | 49.6 | |||||
Amounts Available to A&B Shareholders: | |||||||
Continuing operations available to A&B shareholders, net of income taxes | $ | 47.4 | $ | 4.4 | |||
Discontinued operations available to A&B shareholders, net of income taxes | (0.1 | ) | 2.4 | ||||
Net income (loss) available to A&B shareholders | $ | 47.3 | $ | 6.8 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating Revenue: | |||||||
Commercial Real Estate | $ | 35.2 | $ | 33.7 | |||
Land Operations | 29.3 | 11.0 | |||||
Materials & Construction | 48.8 | 48.5 | |||||
Total operating revenue | 113.3 | 93.2 | |||||
Operating Profit (Loss): | |||||||
Commercial Real Estate1 | 15.5 | 14.3 | |||||
Land Operations2,3 | (5.4 | ) | (2.4 | ) | |||
Materials & Construction | 0.2 | 5.6 | |||||
Total operating profit | 10.3 | 17.5 | |||||
Interest expense | (8.4 | ) | (6.2 | ) | |||
General corporate expenses | (6.7 | ) | (5.7 | ) | |||
REIT evaluation/conversion costs 4 | — | (4.8 | ) | ||||
Income (Loss) from Continuing Operations Before Income Taxes and Net Gain (Loss) on Sale of Improved Properties and Ground Leased Land | (4.8 | ) | 0.8 | ||||
Income tax benefit (expense) | 2.7 | 0.8 | |||||
Income (Loss) from Continuing Operations Before Net Gain (Loss) on Sale of Improved Properties and Ground Leased Land | (2.1 | ) | 1.6 | ||||
Net gain (loss) on the sale of improved properties and ground leased land5 | 49.6 | 3.0 | |||||
Income (Loss) from Continuing Operations | 47.5 | 4.6 | |||||
Income (loss) from discontinued operations, net of income taxes | (0.1 | ) | 2.4 | ||||
Net Income (Loss) | 47.4 | 7.0 | |||||
Income attributable to noncontrolling interest | (0.1 | ) | (0.7 | ) | |||
Net Income (Loss) Attributable to A&B Shareholders | $ | 47.3 | $ | 6.3 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 47.4 | $ | 7.0 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||
Depreciation and amortization | 10.2 | 10.5 | |||||
Deferred income taxes | (2.7 | ) | 0.8 | ||||
Gains on asset transactions, net of asset write-downs | (50.0 | ) | (7.9 | ) | |||
Share-based compensation expense | 1.3 | 1.1 | |||||
Investments in affiliates, net of distributions | 4.8 | 7.8 | |||||
Changes in operating assets and liabilities: | |||||||
Trade, contracts retention, and other receivables | (4.2 | ) | 4.2 | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts - net | 2.1 | (2.8 | ) | ||||
Inventories | 2.3 | 15.2 | |||||
Prepaid expenses, income tax receivable and other assets | (1.4 | ) | (2.8 | ) | |||
Accrued pension and post-retirement benefits | 1.1 | 0.3 | |||||
Accounts payable | (8.7 | ) | (3.2 | ) | |||
Accrued and other liabilities | (8.6 | ) | (38.2 | ) | |||
Real estate inventory sales (real estate developments held for sale) | 22.1 | 2.3 | |||||
Expenditures for real estate inventory (real estate developments held for sale) | (7.2 | ) | (4.9 | ) | |||
Net cash provided by (used in) operations | 8.5 | (10.6 | ) | ||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures for acquisitions | (194.7 | ) | — | ||||
Capital expenditures for property, plant and equipment | (12.7 | ) | (6.1 | ) | |||
Proceeds from disposal of property and other assets | 155.4 | 8.0 | |||||
Payments for purchases of investments in affiliates and other investments | (9.2 | ) | (14.5 | ) | |||
Proceeds from investments in affiliates and other investments | 5.1 | 0.6 | |||||
Net cash provided by (used in) investing activities | (56.1 | ) | (12.0 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 504.1 | 57.0 | |||||
Payments of long-term debt and deferred financing costs | (355.7 | ) | (19.0 | ) | |||
Borrowings (payments) on line-of-credit agreement, net | (2.3 | ) | 6.9 | ||||
Distribution to noncontrolling interests | — | (0.2 | ) | ||||
Cash dividends paid | (156.6 | ) | (3.4 | ) | |||
Proceeds from issuance (repurchase) of capital stock and other, net | (1.5 | ) | (4.0 | ) | |||
Net cash provided by (used in) financing activities | (12.0 | ) | 37.3 | ||||
Cash, Cash Equivalents and Restricted Cash: | |||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (59.6 | ) | 14.7 | ||||
Balance, beginning of period | 103.2 | 12.3 | |||||
Balance, end of period | $ | 43.6 | $ | 27.0 |
Scheduled principal payments | Unamort Deferred Fin Cost/ (Discount) Premium | |||||||||||||||||||||||||||||||
Debt: | Stated Rate (%) | Weighted- average Interest Rate (%) | Maturity Date | Weighted- average Maturity (Years) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total Principal | Total | ||||||||||||||||||||
Secured debt: | ||||||||||||||||||||||||||||||||
GLP Asphalt Plant | (a) | 5.98 | 2021 | 1.5 | $ | 1.0 | $ | 1.5 | $ | 1.6 | $ | 0.4 | $ | — | $ | — | $ | 4.5 | $ | (0.3 | ) | $ | 4.2 | |||||||||
Kailua Town Center | (b) | 5.95 | 2021 | 3.4 | 0.2 | 0.3 | 0.4 | 9.9 | — | — | 10.8 | (0.3 | ) | 10.5 | ||||||||||||||||||
Kailua Town Center #2 | 3.15 | 3.15 | 2021 | 3.2 | 0.1 | 0.1 | 0.1 | 4.6 | — | — | 4.9 | — | 4.9 | |||||||||||||||||||
Pearl Highlands | 4.15 | 4.15 | 2024 | 6.2 | 1.3 | 1.9 | 1.9 | 2.0 | 2.1 | 77.3 | 86.5 | 1.1 | 87.6 | |||||||||||||||||||
Laulani Village | 3.93 | 3.93 | 2024 | 6.0 | — | — | 0.7 | 1.1 | 1.1 | 59.1 | 62.0 | (1.0 | ) | 61.0 | ||||||||||||||||||
Manoa Marketplace | (c) | 3.14 | 2029 | 10.0 | — | 0.5 | 1.6 | 1.7 | 1.7 | 54.5 | 60.0 | (0.3 | ) | 59.7 | ||||||||||||||||||
Subtotal | 3.92 | 6.8 | $ | 2.6 | $ | 4.3 | $ | 6.3 | $ | 19.7 | $ | 4.9 | $ | 190.9 | $ | 228.7 | $ | (0.8 | ) | $ | 227.9 | |||||||||||
Unsecured debt: | ||||||||||||||||||||||||||||||||
Term Loan 1 | 3.31 | 3.31 | 2018 | 0.1 | $ | 0.5 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.5 | $ | — | $ | 0.5 | ||||||||||
Term Loan 2 | 5.19 | 5.19 | 2019 | 0.8 | 1.6 | 2.3 | — | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||
Series D Note (g) | 6.90 | 6.90 | 2020 | 1.0 | — | 16.3 | 16.2 | — | — | — | 32.5 | — | 32.5 | |||||||||||||||||||
Term Loan 3 | (d) | 3.88 | 2021 | 3.7 | — | — | — | 9.4 | — | — | 9.4 | — | 9.4 | |||||||||||||||||||
Revolving credit facility | (e) | 3.54 | 2022 | 4.7 | — | — | — | — | 181.2 | — | 181.2 | — | 181.2 | |||||||||||||||||||
Bank Syndicated Term Loan | (f) | 3.48 | 2023 | 4.9 | — | — | — | — | — | 50.0 | 50.0 | — | 50.0 | |||||||||||||||||||
Series A Note (g) | 5.53 | 5.53 | 2024 | 4.8 | — | — | — | 7.1 | 7.1 | 14.3 | 28.5 | — | 28.5 | |||||||||||||||||||
Series E Note (g) (h) | 3.90 | 3.90 | 2024 | 3.2 | 9.8 | 9.8 | 9.0 | 9.5 | 12.5 | 11.9 | 62.5 | — | 62.5 | |||||||||||||||||||
Series B Note (g) | 5.55 | 5.55 | 2026 | 5.6 | — | — | — | 1.0 | 9.0 | 36.0 | 46.0 | — | 46.0 | |||||||||||||||||||
Series C Note (g) | 5.56 | 5.56 | 2026 | 4.9 | 1.0 | 1.0 | 1.0 | 9.0 | 2.0 | 11.0 | 25.0 | — | 25.0 | |||||||||||||||||||
Series F Note (g) | 4.35 | 4.35 | 2026 | 5.7 | — | — | 2.4 | 4.5 | — | 15.1 | 22.0 | — | 22.0 | |||||||||||||||||||
Series H Note (g) | 4.04 | 4.04 | 2026 | 8.7 | — | — | — | — | — | 50.0 | 50.0 | — | 50.0 | |||||||||||||||||||
Series G Note (g) | 3.88 | 3.88 | 2027 | 4.8 | 7.5 | 7.5 | 5.4 | 1.5 | 6.0 | 22.1 | 50.0 | (0.8 | ) | 49.2 | ||||||||||||||||||
Series I Note (g) | 4.16 | 4.16 | 2028 | 10.8 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||
Term Loan 4 | 4.30 | 4.30 | 2029 | 11.8 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||
Subtotal | 4.25 | 5.2 | $ | 20.4 | $ | 36.9 | $ | 34.0 | $ | 42.0 | $ | 217.8 | $ | 260.4 | $ | 611.5 | $ | (0.8 | ) | $ | 610.7 | |||||||||||
Total | 4.16 | 5.6 | $ | 23.0 | $ | 41.2 | $ | 40.3 | $ | 61.7 | $ | 222.7 | $ | 451.3 | $ | 840.2 | $ | (1.6 | ) | $ | 838.6 | |||||||||||
(a) Loan has a stated interest rate of LIBOR plus 1.00%, but is swapped through maturity to a 5.98% fixed rate. | ||||||||||||||||||||||||||||||||
(b) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. | ||||||||||||||||||||||||||||||||
(c) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. | ||||||||||||||||||||||||||||||||
(d) Loan has a stated interest rate of LIBOR plus 2.00%, and is secured by a letter of credit. | ||||||||||||||||||||||||||||||||
(e) Loan has a stated interest rate of LIBOR plus 1.65%, derived from a leverage based pricing grid. | ||||||||||||||||||||||||||||||||
(f) Loan has a stated interest rate of LIBOR plus 1.60%, derived from a leverage based pricing grid. | ||||||||||||||||||||||||||||||||
(g) Interest subject to incremental rate adjustment based on the Company's ratio of debt to total adjusted asset value. | ||||||||||||||||||||||||||||||||
(h) Subsequent to March 31, 2018, Series E was refinanced into three loans with bullet maturities as follows: 2025, 2027 and 2028. |
Debt | |||||||
Unsecured revolving credit facility | $ | 181.2 | |||||
Unsecured term debt | 429.5 | ||||||
Secured debt | 227.9 | ||||||
Total debt | 838.6 | ||||||
Add: Net unamortized deferred financing cost / discount premium | 1.6 | ||||||
Less: cash, cash equivalents and restricted cash | (43.6 | ) | |||||
Net debt | $ | 796.6 | |||||
Equity | Shares | Stock Price | Market Value | ||||
Common stock (NYSE:ALEX) | 71,952,944 | $ | 23.13 | $ | 1,664.3 | ||
Total equity | $ | 1,664.3 | |||||
Total Capitalization | $ | 2,502.9 | |||||
Debt to total capitalization | 33.5 | % | |||||
Liquidity | |||||||
Cash on hand | $ | 26.5 | |||||
Available under unsecured, committed line of credit | 268.8 | ||||||
Total liquidity | $ | 295.3 | |||||
Financial Ratios | |||||||
Net debt to TTM EBITDA | 6.7 x | ||||||
Fixed-charge coverage ratio | 3.8 x | ||||||
Fixed-rate debt to total debt | 71.5 | % | |||||
Unencumbered CRE assets as a percent of total CRE assets (gross book value) | 70.2 | % |
Three Months Ended March 31, | TTM March 31, | |||||||||||
2018 | 2017 | 2018 | ||||||||||
Net Income (Loss) | $ | 47.4 | $ | 7.0 | $ | 270.9 | ||||||
Adjustments: | ||||||||||||
Depreciation and amortization | 10.2 | 10.5 | 41.1 | |||||||||
Interest expense | 8.4 | 6.2 | 27.8 | |||||||||
Income tax expense (benefit) | (2.7 | ) | 0.7 | (220.3 | ) | |||||||
EBITDA | $ | 63.3 | $ | 24.4 | $ | 119.5 | ||||||
Other discrete items impacting the respective periods: | ||||||||||||
Income attributable to noncontrolling interests | (0.1 | ) | (0.7 | ) | (1.6 | ) | ||||||
(Income) loss from discontinued operations before interest, income taxes and depreciation and amortization | 0.1 | (3.9 | ) | 0.3 | ||||||||
REIT evaluation/conversion costs | — | 4.8 | 10.4 | |||||||||
Reduction in solar investments, net | 0.1 | 2.0 | 0.7 | |||||||||
Impairment of real estate assets | — | — | 22.4 | |||||||||
Gain on sales of improved properties and ground leases | (49.6 | ) | (3.0 | ) | (55.9 | ) |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Operating Revenues: | ||||||||
Base rents | $ | 22.4 | $ | 22.8 | ||||
Recoveries from tenants | 8.7 | 8.2 | ||||||
Other revenues | 4.1 | 2.7 | ||||||
Total Commercial Real Estate revenues | 35.2 | 33.7 | ||||||
Operating Costs and Expenses: | ||||||||
Property operations | 9.2 | 9.2 | ||||||
Property taxes | 3.1 | 3.0 | ||||||
Depreciation and amortization | 6.3 | 6.6 | ||||||
Total Cost of Commercial Real Estate | 18.6 | 18.8 | ||||||
Selling, general and administrative | (1.7 | ) | (1.1 | ) | ||||
Intersegment operating revenues (a) | 0.6 | 0.6 | ||||||
Interest and other income (expense), net | — | (0.1 | ) | |||||
Operating Profit | 15.5 | 14.3 | ||||||
Plus: Depreciation and amortization | 6.3 | 6.6 | ||||||
Less: Straight-line lease adjustments | (0.1 | ) | (0.5 | ) | ||||
Less: Favorable/(unfavorable) lease amortization | (0.6 | ) | (0.8 | ) | ||||
Less: Termination income | (1.1 | ) | — | |||||
Plus: Other (income)/expense, net | — | 0.1 | ||||||
Plus: Selling, general, administrative and other expenses | 1.8 | 1.7 | ||||||
Cash NOI | 21.8 | 21.4 | ||||||
Acquisitions / dispositions and other adjustments | (3.0 | ) | (3.1 | ) | ||||
Same-Store Cash NOI | $ | 18.8 | $ | 18.3 | ||||
Maintenance Capital Expenditures: | ||||||||
Building improvements | $ | 1.4 | $ | 1.0 | ||||
Tenant improvements | 3.2 | 0.6 | ||||||
Leasing commissions | 1.2 | 1.0 | ||||||
Total maintenance capital expenditures | $ | 5.8 | $ | 2.6 | ||||
(a) Represents intersegment revenues, primarily base rents and expense recoveries from leases to tenants that operate as part of our Materials & Construction segment. These operating revenues, and the related rental expense incurred by these tenants, are eliminated in the consolidated results of operations. |
Occupancy* | |||||
As of | As of | Percentage Point Change | |||
March 31, 2018 | March 31, 2017 | ||||
Retail | 93.1% | 93.2% | (0.1) | ||
Industrial | 89.3% | 95.6% | (6.3) | ||
Office | 90.1% | 89.6% | 0.5 | ||
Total | 91.8% | 93.7% | (1.9) |
Same-Store Occupancy | |||||
As of | As of | Percentage Point Change | |||
March 31, 2018 | March 31, 2017 | ||||
Retail | 92.8% | 93.2% | (0.4) | ||
Industrial | 88.7% | 95.6% | (6.9) | ||
Office | 90.1% | 90.2% | (0.1) | ||
Total | 91.4% | 93.8% | (2.4) |
Total Portfolio Cash NOI | |||||||||||||||||||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | Change | |||||||||||||||||||||
Hawai`i | Mainland | Total | Hawai`i | Mainland | Total | Hawai`i | Mainland | Total | |||||||||||||||
Retail | $ | 12,972 | $ | 525 | $ | 13,497 | $ | 11,900 | $ | 450 | $ | 12,350 | 9.0% | 16.7% | 9.3% | ||||||||
Industrial | 3,141 | 484 | 3,625 | 2,800 | 1,130 | 3,930 | 12.2% | (57.2)% | (7.8)% | ||||||||||||||
Office | 1,121 | 433 | 1,554 | 1,115 | 1,137 | 2,252 | 0.5% | (61.9)% | (31.0)% | ||||||||||||||
Ground | 3,126 | — | 3,126 | 2,861 | — | 2,861 | 9.3% | N/A | 9.3% | ||||||||||||||
Total | $ | 20,360 | $ | 1,442 | $ | 21,802 | $ | 18,676 | $ | 2,717 | $ | 21,393 | 9.0% | (46.9)% | 1.9% |
Same-Store Cash NOI | |||||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | Change | |||||||
Retail | $ | 11,952 | $ | 11,900 | 0.4% | ||||
Industrial | 2,943 | 2,800 | 5.1% | ||||||
Office | 993 | 925 | 7.4% | ||||||
Ground | 2,907 | 2,658 | 9.4% | ||||||
Total | $ | 18,795 | $ | 18,283 | 2.8% |
Property | Island | Year Built/ Renovated | Current GLA | Occupancy | ABR | ABR PSF | Q1 2018 Cash NOI | Q1 2018 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Retail: | ||||||||||||||||||
1 | Pearl Highlands Center | * | Oahu | 1992-1994 | 411,300 | 92.9% | $ | 8,700 | $ | 23.99 | $ | 2,061 | 12.0% | Sam's Club, Regal Cinemas, 24 Hour Fitness | ||||
2 | Kailua Retail | * | Oahu | 1947-2014 | 319,000 | 97.3% | 10,000 | 32.44 | 2,609 | 15.1% | Whole Foods Market, Foodland, CVS/Longs Drugs | |||||||
3 | Laulani Village | Oahu | 2012 | 175,600 | 93.7% | 5,973 | 36.31 | 637 | 3.7% | Safeway, Ross, Walgreens, Petco | ||||||||
4 | Waianae Mall | * | Oahu | 1975 | 170,300 | 86.0% | 2,999 | 20.49 | 777 | 4.5% | CVS/Longs Drugs, City Mill | |||||||
5 | Manoa Marketplace | * | Oahu | 1977 | 140,200 | 92.0% | 4,325 | 33.74 | 1,149 | 6.7% | Safeway, CVS/Longs Drugs | |||||||
6 | Kaneohe Bay Shopping Center (Leasehold) | * | Oahu | 1971 | 125,400 | 100.0% | 2,993 | 23.86 | 706 | 4.1% | Safeway, CVS/Longs Drugs | |||||||
7 | Hokulei Village | Kauai | 2015 | 119,200 | 97.8% | 3,723 | 34.53 | 350 | 2.0% | Safeway, Petco | ||||||||
8 | Waipio Shopping Center | * | Oahu | 1986, 2004 | 113,800 | 93.5% | 3,047 | 28.64 | 858 | 5.0% | Foodland | |||||||
9 | Aikahi Park Shopping Center | * | Oahu | 1971 | 98,000 | 78.8% | 1,343 | 17.39 | 424 | 2.5% | Safeway | |||||||
10 | The Shops at Kukui'ula | * | Kauai | 2009 | 89,100 | 94.4% | 4,153 | 51.55 | 1,161 | 6.7% | CVS/Longs Drugs, Eating House, Living Foods Market | |||||||
11 | Lanihau Marketplace | * | Hawai`i Island | 1987 | 88,300 | 99.8% | 1,864 | 21.14 | 462 | 2.7% | Sak' N Save, CVS/Longs Drugs | |||||||
12 | Kunia Shopping Center | * | Oahu | 2004 | 60,600 | 94.1% | 2,060 | 39.35 | 631 | 3.7% | ||||||||
13 | Kahului Shopping Center | * | Maui | 1951 | 49,900 | 96.6% | 483 | 10.72 | 77 | 0.4% | ||||||||
14 | Napili Plaza | * | Maui | 1991 | 45,600 | 87.7% | 1,224 | 31.25 | 371 | 2.1% | Napili Market | |||||||
15 | Lahaina Square | * | Maui | 1973 | 44,800 | 75.2% | 654 | 19.43 | 114 | 0.7% | Ace Hardware | |||||||
16 | Gateway at Mililani Mauka | * | Oahu | 2008, 2013 | 34,900 | 97.7% | 1,685 | 52.71 | 413 | 2.4% | CVS/Longs Drugs (shadow-anchored) | |||||||
17 | Port Allen Marina Center | * | Kauai | 2002 | 23,600 | 92.0% | 541 | 24.96 | 140 | 0.8% | ||||||||
18 | Pu'unene Shopping Center (Development) | Maui | 2017 | N/A | N/A | — | — | 32 | 0.2% | Planet Fitness, Petco, Ulta Salon, Target (shadow-anchored) | ||||||||
Subtotal – Retail | 2,109,600 | 93.1% | $ | 55,767 | $ | 29.05 | $ | 12,972 | 75.3% | |||||||||
Industrial: | ||||||||||||||||||
19 | Komohana Industrial Park | * | Oahu | 1990 | 238,300 | 81.2% | $ | 2,415 | $ | 12.48 | $ | 1,042 | 6.0% | |||||
20 | Kaka'ako Commerce Center | * | Oahu | 1969 | 197,800 | 81.0% | 2,278 | 14.71 | 500 | 2.9% | ||||||||
21 | Waipio Industrial | * | Oahu | 1988-1989 | 158,400 | 100.0% | 2,485 | 15.69 | 621 | 3.6% | ||||||||
22 | P&L Warehouse | * | Maui | 1970 | 104,100 | 94.8% | 1,359 | 13.77 | 325 | 1.9% | ||||||||
23 | Honokohau Industrial | Hawai`i Island | 2004-2006, 2008 | 79,100 | 95.9% | 953 | 13.50 | 198 | 1.1% | |||||||||
24 | Kailua Industrial/Other | * | Oahu | 1951-1974 | 68,800 | 96.3% | 973 | 15.13 | 173 | 1.0% | ||||||||
25 | Port Allen | * | Kauai | 1983, 1993 | 63,800 | 95.6% | 660 | 10.82 | 186 | 1.1% | ||||||||
26 | Harbor Industrial | * | Maui | 1930 | 53,400 | 86.9% | 99 | 10.71 | 96 | 0.6% | ||||||||
Subtotal – Industrial | 963,700 | 89.3% | $ | 11,222 | $ | 13.85 | $ | 3,141 | 18.2% |
Property | Island | Year Built/ Renovated | Current GLA | Occupancy | ABR | ABR PSF | Q1 2018 Cash NOI | Q1 2018 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Office: | ||||||||||||||||||
27 | Kahului Office Building | * | Maui | 1974 | 59,400 | 87.7% | $ | 1,450 | $ | 29.09 | $ | 338 | 2.0% | |||||
28 | Gateway at Mililani Mauka South | * | Oahu | 1992, 2006 | 37,100 | 100.0% | 1,607 | 43.26 | 434 | 2.5% | ||||||||
29 | Kahului Office Center | * | Maui | 1991 | 33,400 | 79.5% | 695 | 26.13 | 171 | 1.0% | ||||||||
30 | Lono Center | * | Maui | 1973 | 13,700 | 100.0% | 321 | 23.49 | 50 | 0.3% | ||||||||
Stangenwald and Judd Buildings (disposed March 2018) | 128 | 0.7% | ||||||||||||||||
Subtotal – Office | 143,600 | 90.1% | $ | 4,073 | $ | 32.01 | $ | 1,121 | 6.5% | |||||||||
Total – Hawai`i Portfolio | 3,216,900 | 91.8% | $ | 71,062 | $ | 24.87 | $ | 17,234 | 100.0% |
* Included in Same-Store portfolio. |
Ground Leases (a) | Location (City, Island) | Acres | Property Type | Exp. Year | Next Rent Step | Step Type | ABR | Q1 2018 Cash NOI | |||||
#1 | * | Kaneohe, Oahu | 15.4 | Grocery-Anchored Retail | 2035 | 2023 | FMV Reset | $ | 2,800 | $ | 698 | ||
#2 | * | Honolulu, Oahu | 2.8 | Grocery-Anchored Retail | 2040 | 2020 | FMV Reset | 1,344 | 335 | ||||
#3 | * | Kailua, Oahu | 3.4 | Grocery-Anchored Retail | 2062 | 2022 | Fixed Step | 753 | 189 | ||||
#4 | * | Pu'unene, Maui | 52.0 | Heavy Industrial | 2034 | 2019 | FMV Reset | 751 | 240 | ||||
#5 | * | Kaneohe, Oahu | 3.7 | Retail | 2020 | Option | FMV Reset | 694 | 173 | ||||
#6 | * | Kailua, Oahu | 1.6 | Retail | MTM | 565 | 141 | ||||||
#7 | * | Kailua, Oahu | 2.2 | Retail | 2062 | 2022 | Fixed Step | 485 | 121 | ||||
#8 | * | Honolulu, Oahu | 0.5 | Retail | 2028 | 2019 | Fixed Step | 340 | 86 | ||||
#9 | * | Honolulu, Oahu | 0.5 | Parking | 2023 | 2018 | Fixed Step | 270 | 67 | ||||
#10 | * | Kailua, Oahu | 1.2 | Retail | 2022 | 237 | 56 | ||||||
#11 | * | Kahului, Maui | 0.8 | Retail | 2026 | 2018 | Fixed Step | 228 | 57 | ||||
#12 | * | Kahului, Maui | 0.4 | Retail | 2020 | 2019 | Fixed Step | 207 | 52 | ||||
#13 | * | Kailua, Oahu | 3.3 | Office | 2037 | 2022 | FMV Reset | 200 | 62 | ||||
#14 | * | Kahului, Maui | 0.8 | Industrial | 2020 | 2018 | Fixed Step | 183 | 46 | ||||
#15 | * | Kailua, Oahu | 0.9 | Retail | 2033 | 2019 | FMV Reset | 181 | 45 | ||||
#16 | * | Kahului, Maui | 0.5 | Retail | 2029 | 2018 | Fixed Step | 163 | 64 | ||||
#17 | * | Kahului, Maui | 0.4 | Retail | 2027 | 2022 | Fixed Step | 158 | 53 | ||||
#18 | * | Kailua, Oahu | 0.4 | Retail | 2022 | 2019 | Fixed Step | 144 | 36 | ||||
#19 | * | Kailua, Oahu | 0.4 | Retail | 2026 | 126 | 32 | ||||||
#20 | * | Kailua, Oahu | 0.3 | Retail | 2026 | 110 | 28 | ||||||
Remainder | * | Various | 19.8 | Various | Various | Various | Various | 1,301 | 545 | ||||
Total - Ground Leases | 111.3 | $ | 11,240 | $ | 3,126 | ||||||||
(a) Excludes intersegment ground leases, primarily from our Materials & Construction segment, which are eliminated in our consolidated results of operations. | |||||||||||||
* Included in Same-Store portfolio. |
Portfolio Summary | Current GLA | Occupancy | Q1 2018 Cash NOI | Q1 2018 % Cash NOI to Total Portfolio Cash NOI | ||||||||
Portfolio | 3,216,900 | 91.8% | 17,202 | 78.9 | % | |||||||
Acquisitions in Development | 120,400 | 32 | 0.2 | % | ||||||||
Ground Leases | 3,126 | 14.3 | % | |||||||||
Mainland Portfolio (a) | 1,442 | 6.6 | % | |||||||||
Total Portfolio | 3,337,300 | 91.8% | $ | 21,802 | 100.0 | % | ||||||
(a) During the three months ended March 31, 2018, the Company disposed of its mainland properties and therefore results of these properties are reported separately. |
Dispositions | Additions | |||
Date | Property | Date | Property | |
3/18 | Stangenwald Building | 1/16 | Manoa Marketplace | |
3/18 | Judd Building | 2/16 | Gateway at Mililani Mauka South | |
3/18 | Kaiser Permanente Ground Lease | |||
3/18 | Royal MacArthur Center | |||
3/18 | Little Cottonwood Center | |||
3/18 | Sparks Business Center | |||
3/18 | Preston Park | |||
2/18 | Deer Valley Financial Center | |||
1/18 | Concorde Commerce Center |
Tenant (a) | ABR | % of Total Portfolio ABR | GLA | % of Total Portfolio GLA | ||||||
Albertsons Companies (including Safeway) | $ | 4,470 | 6.3% | 226,208 | 7.0% | |||||
Sam's Club | 3,308 | 4.7% | 180,908 | 5.6% | ||||||
CVS Corporation (including Longs Drugs) | 2,696 | 3.8% | 150,411 | 4.7% | ||||||
Foodland Supermarket & related companies | 1,873 | 2.6% | 112,929 | 3.5% | ||||||
Ross Dress for Less | 1,795 | 2.5% | 65,484 | 2.0% | ||||||
24 Hour Fitness USA | 1,375 | 1.9% | 45,870 | 1.4% | ||||||
Whole Foods Market | 1,210 | 1.7% | 31,647 | 1.0% | ||||||
Office Depot | 1,138 | 1.6% | 75,824 | 2.4% | ||||||
Central Pacific Bank | 921 | 1.3% | 22,217 | 0.7% | ||||||
Simmons Manufacturing Co. | 850 | 1.2% | 63,280 | 2.0% | ||||||
Total | $ | 19,636 | 27.6% | 974,778 | 30.3% | |||||
(a) Excludes intersegment ground leases, primarily from our Materials & Construction segment, which are eliminated in our consolidated results of operations. |
Total Portfolio | ||||||||||||
Expiration Year | Number of Leases | Square Footage of Expiring Leases | % of Total Portfolio Leased GLA | ABR Expiring | % of Total Portfolio Expiring ABR | |||||||
2018 | 88 | 191,996 | 6.5% | $ | 4,513 | 5.8% | ||||||
2019 | 137 | 419,450 | 14.2% | 10,432 | 13.5% | |||||||
2020 | 139 | 428,142 | 14.5% | 10,477 | 13.6% | |||||||
2021 | 100 | 451,892 | 15.3% | 10,496 | 13.6% | |||||||
2022 | 100 | 279,207 | 9.4% | 9,456 | 12.2% | |||||||
2023 | 56 | 161,814 | 5.5% | 5,000 | 6.5% | |||||||
2024 | 14 | 179,071 | 6.1% | 4,914 | 6.4% | |||||||
2025 | 20 | 65,583 | 2.2% | 2,845 | 3.7% | |||||||
2026 | 12 | 40,023 | 1.4% | 1,859 | 2.4% | |||||||
2027 | 11 | 105,447 | 3.6% | 2,901 | 3.8% | |||||||
Thereafter | 26 | 373,033 | 12.5% | 9,450 | 12.1% | |||||||
Month-to-month | 121 | 258,948 | 8.8% | 4,922 | 6.4% | |||||||
Total | 824 | 2,954,606 | 100.0% | $ | 77,265 | 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 | |||||||
2018 | 48 | 88,231 | 4.5% | $ | 2,811 | 4.7% | ||||||
2019 | 80 | 266,031 | 13.5% | 7,578 | 12.6% | |||||||
2020 | 92 | 243,138 | 12.4% | 7,233 | 12.0% | |||||||
2021 | 70 | 273,168 | 13.9% | 7,691 | 12.8% | |||||||
2022 | 75 | 170,364 | 8.7% | 7,414 | 12.3% | |||||||
2023 | 47 | 143,239 | 7.3% | 4,599 | 7.6% | |||||||
2024 | 13 | 177,368 | 9.0% | 4,852 | 8.1% | |||||||
2025 | 19 | 63,902 | 3.3% | 2,845 | 4.7% | |||||||
2026 | 10 | 19,189 | 1.0% | 916 | 1.5% | |||||||
2027 | 9 | 27,855 | 1.4% | 1,360 | 2.3% | |||||||
Thereafter | 25 | 372,602 | 18.9% | 9,430 | 15.8% | |||||||
Month-to-month | 71 | 119,730 | 6.1% | 3,391 | 5.6% | |||||||
Total | 559 | 1,964,817 | 100.0% | $ | 60,120 | 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 | |||||||
2018 | 34 | 94,592 | 11.0% | $ | 1,412 | 11.2% | ||||||
2019 | 43 | 113,972 | 13.2% | 1,656 | 13.1% | |||||||
2020 | 38 | 158,563 | 18.4% | 2,342 | 18.6% | |||||||
2021 | 21 | 164,084 | 19.1% | 2,349 | 18.6% | |||||||
2022 | 19 | 98,716 | 11.5% | 1,668 | 13.2% | |||||||
2023 | 6 | 13,208 | 1.5% | 185 | 1.5% | |||||||
2024 | — | — | —% | — | —% | |||||||
2025 | — | — | —% | — | —% | |||||||
2026 | 1 | 6,750 | 0.8% | 130 | 1.0% | |||||||
2027 | 1 | 75,824 | 8.8% | 1,438 | 11.4% | |||||||
Thereafter | 1 | 431 | 0.1% | 20 | 0.3% | |||||||
Month-to-month | 47 | 134,189 | 15.6% | 1,398 | 11.1% | |||||||
Total | 211 | 860,329 | 100.0% | $ | 12,598 | 100.0% |
Comparable Leases Only (a) | ||||||||||||||||||||
Total - New and Renewal | Leases | GLA | New ABR PSF | TI PSF | Weighted- Average Lease Term (Years) | Leases | GLA | New ABR PSF | Old ABR PSF | Rent Spread (b) | ||||||||||
1st Quarter - 2018 | 61 | 305,920 | $ | 13.65 | $ | 0.27 | 4.1 | 48 | 267,365 | $ | 12.81 | $ | 11.63 | 10.2% | ||||||
4th Quarter - 2017 | 65 | 141,418 | $ | 29.25 | $ | 18.83 | 5.2 | 42 | 82,760 | $ | 23.56 | $ | 22.04 | 6.9% | ||||||
3rd Quarter - 2017 | 47 | 142,508 | $ | 21.44 | $ | 15.90 | 4.9 | 26 | 39,096 | $ | 26.65 | $ | 24.59 | 8.4% | ||||||
2nd Quarter - 2017 | 56 | 307,850 | $ | 18.95 | $ | 12.71 | 4.9 | 43 | 208,758 | $ | 19.30 | $ | 16.11 | 19.8% | ||||||
Trailing four quarters | 229 | 897,696 | $ | 19.16 | $ | 9.94 | 4.7 | 159 | 597,979 | $ | 17.47 | $ | 15.48 | 12.8% | ||||||
Total - New Leases | Leases | GLA | New ABR PSF | TI PSF | Weighted- Average Lease Term (Years) | Leases | GLA | New ABR PSF | Old ABR PSF | Rent Spread (b) | ||||||||||
1st Quarter - 2018 | 19 | 50,755 | $ | 18.81 | $ | 0.82 | 3.5 | 7 | 14,645 | $ | 16.25 | $ | 13.86 | 17.3% | ||||||
4th Quarter - 2017 | 30 | 72,616 | $ | 33.01 | $ | 36.23 | 6.7 | 10 | 17,799 | $ | 19.40 | $ | 17.36 | 11.8% | ||||||
3rd Quarter - 2017 | 21 | 86,757 | $ | 19.86 | $ | 24.25 | 5.5 | 6 | 8,129 | $ | 25.37 | $ | 21.31 | 19.1% | ||||||
2nd Quarter - 2017 | 19 | 105,519 | $ | 19.12 | $ | 1.34 | 4.0 | 6 | 6,427 | $ | 33.07 | $ | 23.95 | 38.1% | ||||||
Trailing four quarters | 89 | 315,647 | $ | 22.47 | $ | 15.58 | 5.0 | 29 | 47,000 | $ | 21.32 | $ | 17.85 | 19.4% | ||||||
Total - Renewal Leases | Leases | GLA | New ABR PSF | TI PSF | Weighted- Average Lease Term (Years) | Leases | GLA | New ABR PSF | Old ABR PSF | Rent Spread (b) | ||||||||||
1st Quarter - 2018 | 42 | 255,165 | $ | 12.63 | $ | 0.16 | 4.2 | 41 | 252,720 | $ | 12.62 | $ | 11.50 | 9.7% | ||||||
4th Quarter - 2017 | 35 | 68,802 | $ | 25.28 | $ | 0.46 | 3.6 | 32 | 64,961 | $ | 24.69 | $ | 23.33 | 5.9% | ||||||
3rd Quarter - 2017 | 26 | 55,751 | $ | 23.88 | $ | 2.90 | 3.6 | 20 | 30,967 | $ | 26.98 | $ | 25.45 | 6.0% | ||||||
2nd Quarter - 2017 | 37 | 202,331 | $ | 18.87 | $ | 18.64 | 5.3 | 37 | 202,331 | $ | 18.87 | $ | 15.86 | 18.9% | ||||||
Trailing four quarters | 140 | 582,049 | $ | 17.37 | $ | 6.89 | 4.5 | 130 | 550,979 | $ | 17.14 | $ | 15.28 | 12.2% | ||||||
Three Months Ended March 31, 2018 | TTM Ended March 31, 2018 | |||||||||||||||||||
Leases | GLA | ABR PSF | Rent Spread (b) | Leases | GLA | ABR PSF | Rent Spread (b) | |||||||||||||
Hawai`i | ||||||||||||||||||||
Retail | 26 | 45,652 | $ | 41.77 | 7.5% | 107 | 252,422 | $ | 37.06 | 16.3% | ||||||||||
Industrial | 27 | 83,261 | $ | 14.38 | 14.4% | 77 | 304,799 | $ | 13.81 | 13.9% | ||||||||||
Office | 5 | 5,169 | $ | 40.00 | 3.2% | 25 | 42,601 | $ | 24.92 | 0.1% | ||||||||||
Mainland | ||||||||||||||||||||
Retail | 1 | 2,279 | $ | 16.40 | 2.5% | 5 | 10,742 | $ | 30.32 | 7.8% | ||||||||||
Industrial | 1 | 163,200 | $ | 4.20 | 12.9% | 4 | 221,831 | $ | 4.78 | 11.4% | ||||||||||
Office | 1 | 6,359 | $ | 22.50 | 13.2% | 11 | 65,301 | $ | 18.00 | 4.0% |
Leasing Activity | ||||||||||||
Project | Phase | Target In-service | Target Stabilization | Book Value of Land & Related Costs Contributed to Project | Total Estimated Project Capital Costs, Inclusive of Land Basis | Project Capital Costs Incurred to Date | Estimated Incremental Stabilized Cash NOI | Estimated Stabilized Yield on Total Project Capital Costs | Projected GLA | % Leased | % Under Letter of Intent | Total |
Repositioning & Redevelopment | ||||||||||||
Pearl Highlands Center - Food Court/Regal renovation (a) | Stabilization | N/A | 2Q18 | N/A | $6.0 | $5.4 | $0.6 | 10.0 - 10.3% | 54,000 | 83 | — | 83 |
Lau Hala Shops repositioning (b) | Construction | 2018 | 1Q19 | N/A | 21.0 | 14.0 | 2.2 - 2.7 | 10.0 - 12.9% | 50,500 | 88 | — | 88 |
Development for Hold | ||||||||||||
Ho'okele Shopping Center (c) | Pre-leasing | Late 2019 | 2Q20 | 4.3 | 41.9 | 6.3 | 3.1 - 3.6 | 7.4 - 8.6% | 94,000 | 64 | 24 | 88 |
Acquisition in Development | ||||||||||||
Pu'unene Shopping Center | Tenant build-out | 2018 | 2021 | N/A | (d) | (d) | $4.9 | (d) | 120,400 | 63 | 14 | 77 |
Total | $4.3 | $68.9 | $25.7 | $5.6 - 6.6 | 8.6 - 10.0% | 318,900 | ||||||
(a) Includes $3.0 million of tenant improvement capital to Regal Entertainment to renovate that provides a 10.3% yield on cost. Amounts presented under Leasing Activity relate to the Food Court. | ||||||||||||
(b) Projected GLA for Lau Hala Shops increased from 48,400 to 50,500 in the third quarter of 2017, as the Company executed a lease with Down to Earth that includes a mezzanine space that was not previously expected to be leased. | ||||||||||||
(c) The Company contributed land from its legacy landholdings adjacent to Maui Business Park (Phase II) to the Ho'okele Shopping Center development project. The carrying value of this parcel, including certain previously incurred infrastructure improvements and related costs, was $4.3 million at contribution. The stabilized yield on cost was determined utilizing this book value. | ||||||||||||
(d) Pu`unene Shopping Center is a development property acquired as part of the Terramar acquisition. The purchase price allocated to this property was $63.6 million. |
Dispositions | |||||||||
Property | Type | Location (Island/City, State) | Date (Month/Year) | Sales Price | GLA | ||||
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 | ||||
Midstate 99 Distribution Center | Industrial | Visalia, CA | 11/17 | 33.4 | 790,200 | ||||
The Maui Clinic Building | Office | Maui, HI | 1/17 | 3.4 | 16,600 | ||||
Ninigret Office Park | Office | Salt Lake City, UT | 6/16 | 30.4 | 185,500 | ||||
Gateway Oaks | Office | Sacramento, CA | 6/16 | 8.0 | 59,700 | ||||
Prospect Park | Office | Sacramento, CA | 6/16 | 22.3 | 163,300 | ||||
Union Bank | Office | Everett, WA | 12/15 | 10.0 | 84,000 | ||||
San Pedro Plaza | Office | San Antonio, TX | 5/15 | 16.7 | 171,900 | ||||
Wilshire Shopping Center | Retail | Greeley, CO | 3/15 | 4.3 | 46,500 | ||||
Maui Mall | Retail | Maui, HI | 1/14 | 64.1 | 185,700 | ||||
Activity Distribution Center | Industrial | San Diego, CA | 12/13 | 32.5 | 252,300 | ||||
Heritage Business Park | Industrial | Dallas, TX | 12/13 | 93.4 | 1,316,400 | ||||
Savannah Logistics Park | Industrial | Savannah, GA | 12/13 | 39.2 | 1,035,700 | ||||
Broadlands Marketplace | Retail | Broomfield, CO | 12/13 | 11.0 | 103,900 | ||||
Meadows on the Parkway | Retail/Office | Boulder, CO | 12/13 | 33.0 | 216,400 | ||||
Rancho Temecula Town Center | Retail | Temecula, CA | 12/13 | 57.0 | 165,500 | ||||
Republic Distribution Center | Industrial | Houston, TX | 10/13 | 19.4 | 312,500 | ||||
Centennial Plaza | Industrial | Salt Lake City, UT | 9/13 | 15.0 | 244,000 | ||||
Issaquah Office Center | Office | Issaquah, WA | 9/13 | 22.3 | 146,900 | ||||
Northpoint Industrial | Industrial | Fullerton, CA | 1/13 | 14.9 | 119,400 | ||||
Total | $ | 689.5 | 6,710,300 | ||||||
Acquisitions | |||||||||
Property | Type | Location (Island/City, State) | Date (Month/Year) | Purchase Price | GLA | ||||
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 | ||||
Honokohau Industrial | Industrial | Hawai'i Island, HI | 6/17 | 10.1 | 73,200 | ||||
2927 East Manoa Road | Ground Lease | Oahu, HI | 12/16 | 2.8 | N/A | ||||
Manoa Marketplace | Retail | Oahu, HI | 1/16 | 82.4 | 139,300 | ||||
Aikahi Park Shopping Center (Leasehold) | Retail | Oahu, HI | 5/15 | 1.6 | 98,000 | ||||
Kaka'ako Commerce Center | Industrial | Oahu, HI | 12/14 | 39.1 | 204,400 | ||||
Kailua Portfolio | Retail/Industrial/ Ground Lease | Oahu, HI | 12/13 | 372.6 | 386,200 | ||||
The Shops at Kukui'ula | Retail | Kauai, HI | 9/13 | — | 78,900 | ||||
Pearl Highlands Center | Retail | Oahu, HI | 9/13 | 141.5 | 415,400 | ||||
Napili Plaza | Retail | Maui, HI | 5/13 | 19.2 | 45,100 | ||||
Waianae Mall | Retail | Oahu, HI | 1/13 | 29.8 | 170,300 | ||||
Total | $ | 955.8 | 2,026,000 |
Three Months Ended March 31, | TTM March 31, | |||||||||||
2018 | 2017 | 2018 | ||||||||||
Commercial Real Estate Operating Profit | $ | 15.5 | $ | 14.3 | $ | 35.6 | ||||||
Depreciation and amortization | 6.3 | 6.6 | 25.7 | |||||||||
EBITDA | $ | 21.8 | $ | 20.9 | $ | 61.3 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Development sales revenue | $ | 23.0 | $ | 2.4 | |||
Unimproved/other property sales revenue | 0.3 | 1.6 | |||||
Other operating revenues1 | 6.0 | 7.0 | |||||
Total Land Operations operating revenue | $ | 29.3 | $ | 11.0 | |||
Operating expenses | (32.2 | ) | (11.8 | ) | |||
Earnings (loss) from joint ventures | (2.6 | ) | 0.1 | ||||
Reductions in solar investments, net | (0.1 | ) | (2.0 | ) | |||
Interest and other income (expense), net | 0.2 | 0.3 | |||||
Total Land Operations operating income (loss) | $ | (5.4 | ) | $ | (2.4 | ) |
Three Months Ended March 31, | TTM | |||||||||||
2018 | 2017 | March 31, 2018 | ||||||||||
Land Operations Operating Profit (Loss) | $ | (5.4 | ) | $ | (2.4 | ) | $ | 11.2 | ||||
Depreciation and amortization | 0.5 | 0.4 | 1.7 | |||||||||
EBITDA | $ | (4.9 | ) | $ | (2.0 | ) | $ | 12.9 |
Construction Timing | Sales Closings Timing | ||||||||||||||||||||||||||||
Project | Location | Product Type | Est. Economic Interest | Planned Units or Saleable Acres | Average Size Unit (SF) or Lot (Acres) | Units/ Acres Closed | Unit/ Acres Remaining | Target Sales Price Range (PSF) | Est. Total Project Cost | A&B Projected Capital Commitment (JVs Only) | Total Project Costs Incurred to Date | A&B Gross Investment (Life to Date) | A&B Net Investment (Current Book Value) | Start / Est. Start | Est. Substantial Completion | Start / Est. Start | Est. End | ||||||||||||
(a) | (b) | (c) | (d) | (e) | (e) | (e) | (e) | ||||||||||||||||||||||
Kahala Avenue Portfolio | Honolulu, Oahu | Residential | 100% | 17 acres | 0.5 acres | 14.0 acres | 3.0 acres | $150-$385 | $ | 135 | N/A | $ | 134 | $ | 134 | $ | 19 | N/A | N/A | 2013 | 2018 | ||||||||
The Collection | Honolulu, Oahu | Primary residential | 90% +/-5% | 465 units | 904 SF | 460 units | 5 units | $785 | $ | 285 | $ | 54 | $ | 285 | $ | 54 | $ | 18 | 2014 | 2016 | 2016 | 2018 | |||||||
Keala o Wailea (MF-11) | Wailea, Maui | Resort residential | 65% +/-5% | 70 units | 1,385 SF | 21 unit | 49 units | $600-$1,000 | $ | 67 | $ | 9 | $ | 58 | $ | 9 | $ | 7 | 2015 | 2018 | 2017 | 2018 | |||||||
Kamalani (Increment 1) | Kihei, Maui | Primary residential | 100% | 170 units | 994 SF | 51 units | 119 units | $400 | $ | 64 | N/A | 38 (g) | 38 (g) | $ | 27 | 2016 | 2019 | 2017 | 2019 | ||||||||||
Ka Milo at Mauna Lani | Kona, Hawai`i Island | Resort residential | 50% | 137 units | 2,165 SF | 101 units | 36 units | $530-$800 | $ | 131 | $ | 17 | $ | 111 | $ | 17 | $ | 3 | 2005 | 2018 | 2007 | 2020 | |||||||
The Ridge at Wailea (MF-19) | Wailea, Maui | Resort residential | 100% | 5 acres | 0.5 acres | 1 acre | 4 acres | $60-$100 | $ | 10 | N/A | $ | 9 | $ | 9 | $ | 8 | 2007 | 2009 | 2014 | 2020 | ||||||||
Maui Business Park (Phase II) | Kahului, Maui | Light industrial lots | 100% | 125 acres | 0.5-11 acres | 34 acres | 91 acres | $38-$60 | $ | 77 | N/A | $ | 59 | $ | 59 | $ | 38 | 2011 | 2021 | 2012 | 2030+ | ||||||||
Kukui'ula (f) | Poipu, Kauai | Resort residential | 85% +/- 5% | 640 acres | 0.42 acres | 117 acres | 523 acres | $40-$110 | $ | 854 | $ | 318 | $ | 599 | $ | 318 | $ | 307 | 2006 | 2030 | 2006 | 2030+ | |||||||
(a) 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. | |||||||||||||||||||||||||||||
(b) Includes land cost at book value, including capitalized interest, but excluding 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 contributed by equity partners, third-party debt, and amounts expected to be funded from project cash flows and/or buyer deposits. | |||||||||||||||||||||||||||||
(d) The book value of active development projects includes land stated at its 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. | |||||||||||||||||||||||||||||
(e) Estimated or actual dates. Estimated substantial construction completion for Kukui'ula represents the estimated completion date for major project infrastructure and amenities. Construction activities related to parcel development is expected to continue past 2030. | |||||||||||||||||||||||||||||
(f) In addition to the main Kukui'ula project included herein, with a book value of $307 million, the Company has investments in three other Kukui'ula-related joint ventures with a combined book value of $20 million. | |||||||||||||||||||||||||||||
(g) Prior to the quarter ended March 31, 2018. the Company included certain costs that were not directly related to Increment 1. For the three months ended March 31, 2018, these costs amounted to approximately $5.5 million. |
Type | Segment | Maui | Kauai | Oahu | Molokai | Hawai`i Island | Total Hawai`i Acres | Mainland | Total Acres | ||||||||
Land under commercial properties/ urban ground leases (a) | CRE | 96 | 19 | 184 | — | 15 | 314 | 81 | 395 | ||||||||
Land in active development | |||||||||||||||||
Development for sale (b) | Land Operations | 106 | — | 4 | — | — | 110 | — | 110 | ||||||||
Development for hold (c) | CRE | 9 | — | — | — | — | 9 | — | 9 | ||||||||
Other | Land Operations | 81 | — | — | — | — | 81 | — | 81 | ||||||||
Subtotal - Land in active development | 196 | — | 4 | — | — | 200 | — | 200 | |||||||||
Land used in other operations | Land Operations | 22 | 20 | — | — | — | 42 | — | 42 | ||||||||
Urban land, not in active development/use | |||||||||||||||||
Developable, with full or partial infrastructure | Land Operations | 149 | 7 | — | — | — | 156 | — | 156 | ||||||||
Developable, with limited or no infrastructure | Land Operations | 186 | 28 | — | — | — | 214 | — | 214 | ||||||||
Other | Land Operations | 13 | 7 | — | — | — | 20 | — | 20 | ||||||||
Subtotal - Urban land, not in active development | 348 | 42 | — | — | — | 390 | — | 390 | |||||||||
Agriculture-related | |||||||||||||||||
Agriculture | Land Operations | 47,769 | 6,358 | 75 | — | — | 54,202 | — | 54,202 | ||||||||
In urban entitlement process | Land Operations | 357 | 260 | — | — | — | 617 | — | 617 | ||||||||
Conservation & preservation | Land Operations | 15,845 | 13,309 | 509 | — | — | 29,663 | — | 29,663 | ||||||||
Subtotal - Agriculture-related | 63,971 | 19,927 | 584 | — | — | 84,482 | — | 84,482 | |||||||||
Materials & Construction | M&C | 1 | — | 541 | 264 | — | 806 | — | 806 | ||||||||
Total Landholdings | 64,634 | 20,008 | 1,313 | 264 | 15 | 86,234 | 81 | 86,315 | |||||||||
(a) Includes properties from Table 11 - Improved Property Report and Table 12 - Ground Lease Report and Table 17 - Commercial Real Estate Portfolio Repositioning, Redevelopment & Development Summary. | |||||||||||||||||
(b) Includes wholly-owned development-for-sale projects from Table 21 - Key Active Development-for-sale Projects (Kahala Avenue Portfolio, Kamalani (Increment I), The Ridge at Wailea (MF-19), and Maui Business Park (Phase II). | |||||||||||||||||
(c) Includes development-for-hold projects from Table 17 (Ho'okele Shopping Center). | |||||||||||||||||
Revised Classifications of Agricultural Lands | |||||||||||||||||
Higher use potential agricultural land encompasses a broad range of lands whose use, in the foreseeable future, could include uses other than large scale agricultural production or ranching. This category includes lands in the urbanization process, lands whose characteristics (location, views, etc.) make them candidates for other uses, lands which are suitable for smaller farms and ranches, and lands which may currently be employed in other uses. The overwhelming majority of these lands remain in active agricultural or agriculture-related, permitted uses. Most of A&B's historical agricultural land sales are from lands in this classification. | |||||||||||||||||
Core agricultural land encompasses lands that will likely be utilized for large scale crop production, pasture or related uses for the foreseeable future, and includes the majority of lands designated by the Company as Important Agricultural Lands, which is a state designation of lands that are capable of producing sustained high agricultural yields. | |||||||||||||||||
Supporting agricultural and conservation land encompasses the Company’s nearly 30,000 acres of conservation lands, as well as agricultural lands with functional, but non-productive, agricultural uses, such as infrastructure (e.g., ditches, reservoirs) and roads, and agriculturally-zoned lands whose topography makes active agricultural operations impractical (e.g., gulches, wastelands, drainage areas). | |||||||||||||||||
The above classification of lands is subject to change, based on the ongoing re-evaluation of future use potential that will occur over time. | |||||||||||||||||
The following classifications are based on management's assessment of potential use (not actual use): | |||||||||||||||||
Type | Maui | Kauai | Oahu | Molokai | Hawai`i Island | Total Hawai`i Acres | Mainland | Total Acres | |||||||||
Higher use potential | 13,611 | 2,257 | 75 | — | — | 15,943 | — | 15,943 | |||||||||
Core agricultural | 31,588 | 4,145 | — | — | — | 35,733 | — | 35,733 | |||||||||
Supporting and conservation | 18,772 | 13,525 | 509 | — | — | 32,806 | — | 32,806 | |||||||||
Total agricultural lands | 63,971 | 19,927 | 584 | — | — | 84,482 | — | 84,482 |
Recent A&B Agricultural-zoned Land Sales Data - Maui & Kauai 2012 - 4Q17 | |||||||||||
The Company's historic sales of agricultural-zoned lands have consisted of land in the "Higher use potential" category only. Therefore, the land sales data presented below does not provide relevant benchmarking data with regards to the Company's "Core agricultural" and "Supporting and conservation" landholdings. | |||||||||||
Total Acres Sold | Weighted- Average Price per Acre | High | Low | ||||||||
0-5 acres | 9 | $ | 114,750 | $ | 151,600 | $ | 84,400 | ||||
5-20 acres | 67 | $ | 75,900 | $ | 120,525 | $ | 35,600 | ||||
20-100 acres | 468 | $ | 28,650 | $ | 55,700 | $ | 13,750 | ||||
100+ acres | 2,283 | $ | 26,250 | $ | 35,450 | $ | 14,600 | ||||
Total/weighted-average | 2,827 | $ | 28,150 | $ | 151,600 | $ | 13,750 | ||||
Recent A&B Urban-zoned Land Sales Data - Maui & Kauai 2012 - 4Q17 | |||||||||||
The majority of the Company's historic sales of urban lands have been those in the "Developable, with full or partial infrastructure" category. | |||||||||||
Total Acres Sold | Weighted- Average Price per Acre | High | Low | ||||||||
0-3 acres | 12 | $ | 2,190,000 | $ | 4,346,200 | $ | 1,650,000 | ||||
3-25 acres | 57 | $ | 1,674,500 | $ | 2,050,000 | $ | 1,185,000 | ||||
Total/weighted-average | 69 | $ | 1,765,000 | $ | 4,346,200 | $ | 1,185,000 |
Three Months Ended March 31, | TTM | ||||||||||||
2018 | 2017 | March 31, 2018 | |||||||||||
Operating Profit (a) | $ | 0.2 | $ | 5.6 | $ | 16.6 | |||||||
Depreciation and amortization | 3.0 | 3.0 | 12.2 | ||||||||||
EBITDA | 3.2 | 8.6 | 28.8 | ||||||||||
Income attributable to noncontrolling interest | (0.1 | ) | (0.7 | ) | (1.6 | ) | |||||||
Adjusted EBITDA | $ | 3.1 | $ | 7.9 | $ | 27.2 | |||||||
Three Months Ended March 31, | TTM | ||||||||||||
2018 | 2017 | March 31, 2018 | |||||||||||
EBITDA margin | 6.4% | 16.3% | 13.3% | ||||||||||
Aggregate tons delivered (tons in thousands) | 167.3 | 165.3 | 693.6 | ||||||||||
Asphalt tons delivered (tons in thousands) | 108.7 | 134.7 | 527.8 | ||||||||||
Oahu crew days lost to weather | 109.5 | 51.0 | 299.0 | ||||||||||
Total Oahu available crew days | 419.0 | 450.0 | 1,728.0 | ||||||||||
% days lost to weather | 26.1% | 11.3% | 17.3% | ||||||||||
Backlog (as of period end, in millions) | $198.4 | $213.2 | |||||||||||
Materials: The Company owns centrally located quarries and an asphalt import terminal, which provide products that include hot mix asphalt, ready-mix concrete, construction aggregate, and asphalt. | |||||||||||||
Specialty Construction: The Company is vertically integrated and is a contractor that engages in road maintenance and construction, manufactures and sells prestressed and precast concrete products, roadway signage and guardrails, and provides traffic control services and related equipment. | |||||||||||||
The Company operates under brand names that include Grace Pacific, GP Roadway Solutions (including GP Maintenance Solutions), GPRM Prestress, and GLP Asphalt (Asphalt Hawai`i). |
2017 | 2012 | Change | ||||||||
Operating Profit | $ | 34.4 | $ | 41.6 | (17.3)% | |||||
Plus: Depreciation and amortization | 26.0 | 22.2 | 17.1% | |||||||
Less: Straight-line lease adjustments | (1.6 | ) | (3.6 | ) | 55.6% | |||||
Plus: Lease incentive amortization | — | 0.1 | (100.0)% | |||||||
Less: Favorable/(unfavorable) lease amortization | (2.9 | ) | (1.1 | ) | (163.6)% | |||||
Less: Termination income | (1.7 | ) | (0.2 | ) | (750.0)% | |||||
Plus: Other (income)/expense, net | 0.3 | (0.3 | ) | NM | ||||||
Plus: Impairment of real estate assets | 22.4 | — | NM | |||||||
Plus: Selling, general, administrative and other expenses | 7.9 | 3.1 | 154.8% | |||||||
Cash NOI | $ | 84.8 | $ | 61.8 | 37.2% |
-_P7YC8D%__GZ21&& ?W\%'V2!_H <_+A^
M=(MYY ]^5XFRRMM^3X@4L3Y^7(:TER]^@H6;?)-^OH2Z8.E_#X/T0P!_EH-X
M':* Y(/?^J-])9<(XDA]')0QR5A])9%ZK\Y]2X\>E=9]AHT->TY]UXL\7[1^
M-XF)0 O=9Y9+XVK5IS3''BHX)- !H>EZX1J "#'( >MS$
MG:\^;3Z^X:N37PFY.*A;4"JSS*8S0(6NUZ3.+[FJL*!%'+.H,9-G!LBE1H26
M "#'( YA]V<',8T!MW2W/QN8!X'W3,HBIXZG6OBB1YLG:A<6-Z?W>C5X9[
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MF[$C@85RR:NL::1S_::V4*]U":)[-/1UA9ZU#VIU'XILVLMN&\[&Q41O*5_$'+*K/1_'7//EQ]_-731@'5_5G7=:.Y_B';V4#%_SW@(-)J 67D'
M#UB!\GD\U(Q]47Q_P+)] !8-^)H.ZMUR15V^QIC6/GG#ME"&.''(2@/2,
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M!S/X_.#65SXXD.T!5HN:_4N]UJ9ZN*INMK^:
#J9-&46V"\I&*/U6"99!"*V^!^Y =$>6"'HP9
M " ( CR"%O*&^@0F$V9^6<>F#X9T;8
DVI?]9JZ@#%B<)?>;#UDWI4Q5VIG&I+ 07%HNY"O*&!H%X_*
M!WQS6840MHY9?ZL.I05<8J=\DIQ>_J.^?U]A=J (:VYCYYR95JUF+)F/0-9G
MR9
(8G*%?^>$8DV!4V9JX.6 ""%H " ( 5F*G-))^3 RD>I(B
M0*>ANI%5-"Z?(Y"D)F>=+Y"9%B:<]HWD!6J8<(.I "!@( " ( M29A
M4UFRH_YCT5T#DC9F+V W?X9H<6-,:]YJGV9&5RALKFDE02IN8FO/)^MNVFW=
M!KETHV[%LRI=SF1AHG%@FF:LD-1C-FCF?DMEKFL0:KIH#6TH5AYJ0&\N0#5K
M_'$&)QAL$G)>!F-U-7-!L4Y:L6\!H*I=LW!*CTU@@W&,?-9C)G+.:6YEK'0-
M5/MG_G5#/SYINW96)E%I97<*!A=UM7@BKW17Y7F!GMU;%GGIH70<%HV9A3+B)I
M&)=@%>5I3([. " ( CGQXYUBQ@2=Y4EP)
H.0%A
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M25%LJ647-+-N!F?M&]=M@FF; " &WPF\1>$%UTC5Y@L6!D?=IC)V,U;4)E
M?F7F6X1GMVAW2))IMFKD-!=K VT!&V=J36X@ " '+3F@M:6F=9BYY=0VEF
M?$]?]6M<:\QB?FT\6CQDXF\)1W=F^W"\,RMH+7(N&KIGD7+/ " '>#F%)6
M_7$FB>Y:(G)?>JY= W.':GA?MG2=60AB176G1G5D<7:D,F%EA7=V&BME.W>V
M " 'N6EKA4!7KLB'5777M?>4E::GN]:1Y=/GP*6 )?ZGQ618YB*'RD,:UC
M&WSE&;!C1'SN " '\2E611@H2UASQ5 81D>"M8,8/Z:!5;)8."5PQ=XX,2
M1-5@)(*Y,1I@](*!&4AAI8*A " ( E%%/:(YSAC]3!HU?=T-63XPK9S]9
M6HKR5D)<*XG41"M>;HCF,*E?%(A2&/Q@38A) " ( DX%-N)@:A7M1;99$
M=HA4Q91)9I%7VY)259U:MY"30XQ<^H\M,"Q=>(Y\&+E?.8SM " ( DO1,
M=Z&7A.U0-Y\$=?=3DYQ$9@=6JYF95259B)=)0RQ;QI6-+\E<$Y3[&%E>9I!V
M " ( D5AIK%-B@YYK3%
QYZQ
MC#5J7)JCBG!95):2B,%(L))@AQ(XKXW^A6XI^HE'@\FL[:K]FO6<:J:6E]2+
MJJ))E.=ZM)X9DBQIL)GYCX-8S97RC/A(5)'%BE8X@HUQAZ4J!(C1A."L1*IB
MHS>;R:7]GU*+"Z&PFYEZ&IV$F AI(YEFE(585I51D05( I$PC6LX6HSPB:\J
M#8ANA=2KGJGOJUZ;1*6 IJB*CJ$MHAAYG9T G:]HLYCOF517_93FE.5'Q9"[
MD$TX/HR(BX \NFBZ[W@ M*JG"'A'KJZ2O'BO
MJ)M^87E+HHYJ&7H3G&U6&'KQE@1"4GOZCRDO)GTPA['-KW=JQ%ZZ7'>LO::F
M7W?HMI22"'A%KUI]N7C@J"1IB7FOH-95I'J:F3Q!_WNPD2XN_WSOB)7("8?2
M<06V.H;H