Hawaii | 001-35492 | 45-4849780 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Common Stock (Title of each class) | ALEX (Trading Symbol) | New York Stock Exchange (Name of exchange where registered) |
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)) |
• | Net income available to A&B shareholders and diluted earnings per share for the first quarter of 2019 were $9.0 million and $0.12 per share, respectively, compared to $47.3 million and $0.66 per share in the same quarter of 2018. |
• | CRE operating profit was $15.6 million in the first quarter of 2019, as compared to $15.5 million in the same quarter of 2018. CRE cash NOI was $24.2 million in the first quarter of 2019, as compared to $21.7 million in the same quarter of 2018, an 11.5% increase. |
• | Same-store cash NOI1 increased 7.7% in the first quarter of 2019, as compared to the prior year first quarter, largely due to strong performance at Pearl Highlands Center and Kailua Retail properties. |
• | 54 leases, covering 120,000 square feet of gross leasable area ("GLA"), were executed during the first quarter of 2019. Leasing spreads for comparable leases were 10.3% portfolio wide for the first quarter of 2019 and 11.8% for retail spaces. |
• | Overall occupancy increased to 93.6% as of March 31, 2019, an increase of 180 basis points compared to March 31, 2018. This was primarily due to strong leasing activity in our retail portfolio, including Pearl Highlands Center, Laulani Village Shopping Center, Kunia Shopping Center, and Waipio Shopping Center, which resulted in a retail occupancy of 94.9% as of March 31, 2019. |
• | Occupancy in the industrial portfolio was 90.8% as of March 31, 2019, an increase of 150 basis points as compared to the quarter ended March 31, 2018, primarily due to the commencement of eight leases at Kaka‘ako Commerce Center. |
• | Significant leasing activity during the first quarter of 2019 includes: |
◦ | Nine executed leases related to Kailua properties, including Aikahi Park Shopping Center. |
◦ | Eight executed leases at Kaka‘ako Commerce Center to bring occupancy above 92%, resulting in a year-over-year occupancy increase of 11.1%. |
◦ | Four executed leases at Laulani Village Shopping Center, taking occupancy to 96.4%. |
◦ | Occupancy at Pearl Highlands Center was 98.1% as of March 31, 2019, for a year-over-year occupancy increase of 5.2%. |
• | Recent highlights in development and redevelopment-for-hold include: |
◦ | Construction remains on schedule at the 94,000-square-foot Ho‘okele Shopping Center on Maui, with an anticipated mid-2019 opening of the Safeway grocery store and gas station. |
◦ | At Lau Hala Shops in Kailua, construction remains on schedule for a mid-2019 opening of local organic grocer Down to Earth. The asset is fully leased, and the opening of Down to Earth is expected to bring occupancy to 97%. |
• | On March 25, the Company closed on an off-market acquisition of the ground lease under the Home Depot warehouse store located in central Honolulu for $42.4 million. The purchase of the single, nine-acre parcel utilized §1031 proceeds from the bulk Maui agricultural land sale that closed on December 20, 2018. |
• | On April 8, the Company closed on an off-market acquisition of Kapolei Enterprise Center, a newly constructed Class-A warehouse building in west Oahu for $26.5 million. The 93,000-square-foot building was 100 percent pre-leased. It represents the third investment using §1031 proceeds from the bulk Maui agricultural land sale. |
• | On April 29, the Company closed on an off-market acquisition of the ground lease under Kapolei Business Park West Lot 31, commonly known as the Honolulu Authority for Rapid Transportation precast yard, for $41.1 million. The 36.4-acre parcel of industrial-zoned land using §1031 proceeds from the bulk Maui agricultural land sale is licensed to the City and County of Honolulu. |
• | Land Operations operating profit was $12.6 million in the first quarter of 2019, as compared to a $5.4 million loss in the first quarter of 2018. |
• | The Company continued to monetize land and development-for-sale investments, including the following transactions that closed in the first quarter of 2019: |
◦ | On February 12, the Company closed on a bulk land sale of Wailea lands comprising 42 acres on Maui for $23.6 million. |
◦ | Cash of $11.2 million was generated from the closing of 22 units at Kamalani and the sale of a Kahala parcel. Cash of $6.2 million was generated from distributions related to The Collection and developer unit sales at a Kukui‘ula builder joint venture. |
◦ | Closing of an additional 800 acre-tranche of Maui agricultural land as part of the bulk Maui agricultural land sale announced in December, for $6.7 million. |
• | Materials & Construction operating loss was $4.5 million in the first quarter of 2019, as compared to a $0.2 million profit in the first quarter of 2018. |
• | Adjusted EBITDA1 was $(1.4) million for the first quarter of 2019, as compared to $3.1 million for the first quarter in 2018. The decrease is a result of a combination of project delays in government-contracted work resulting in reduced revenues, and organizational and system improvements that contributed to higher costs. |
• | Backlog2 for the Company's Materials & Construction segment was $124.7 million as of March 31, 2019, as compared to $198.4 million for the comparable prior year period, reflecting both a decline in recent government contracts put out to bid and a change in the nature of government contracting that precludes certain contracts from being included in backlog. |
• | Jerrod M. Schreck appointed new president of Grace Pacific, LLC effective April 24, 2019. |
• | As of March 31, 2019, the Company had $775.0 million in total debt, which represents 29.7% of the Company’s total market capitalization. Maturities for the next three years average $38.4 million, or 5.0% of total debt per year. The Company's debt has a weighted-average maturity of 4.8 years with a weighted-average interest rate of 4.3%. Seventy-three percent of debt was at fixed rates. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating Revenue: | |||||||
Commercial Real Estate | $ | 36.8 | $ | 35.2 | |||
Land Operations | 49.0 | 29.3 | |||||
Materials & Construction | 43.6 | 48.8 | |||||
Total operating revenue | 129.4 | 113.3 | |||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | 15.6 | 15.5 | |||||
Land Operations | 12.6 | (5.4 | ) | ||||
Materials & Construction | (4.5 | ) | 0.2 | ||||
Total operating profit (loss) | 23.7 | 10.3 | |||||
Gain (loss) on the sale of commercial real estate properties | — | 49.6 | |||||
Interest expense | (9.1 | ) | (8.4 | ) | |||
General corporate expenses | (6.2 | ) | (6.7 | ) | |||
Income (Loss) from Continuing Operations Before Income Taxes | 8.4 | 44.8 | |||||
Income tax benefit (expense) | 1.1 | 2.7 | |||||
Income (Loss) from Continuing Operations | 9.5 | 47.5 | |||||
Income (loss) from discontinued operations, net of income taxes | (0.8 | ) | (0.1 | ) | |||
Net Income (Loss) | 8.7 | 47.4 | |||||
Loss (income) attributable to noncontrolling interest | 0.3 | (0.1 | ) | ||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.0 | $ | 47.3 | |||
Basic Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.13 | $ | 0.71 | |||
Discontinued operations available to A&B shareholders | (0.01 | ) | — | ||||
Net income (loss) available to A&B shareholders | $ | 0.12 | $ | 0.71 | |||
Diluted Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.13 | $ | 0.66 | |||
Discontinued operations available to A&B shareholders | (0.01 | ) | — | ||||
Net income (loss) available to A&B shareholders | $ | 0.12 | $ | 0.66 | |||
Weighted-Average Number of Shares Outstanding: | |||||||
Basic | 72.1 | 66.4 | |||||
Diluted | 72.5 | 72.2 | |||||
Amounts Available to A&B Shareholders: | |||||||
Continuing operations available to A&B shareholders | $ | 9.8 | $ | 47.4 | |||
Discontinued operations available to A&B shareholders | (0.8 | ) | (0.1 | ) | |||
Net income (loss) available to A&B shareholders | $ | 9.0 | $ | 47.3 |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Real estate investments | |||||||
Real estate property | $ | 1,342.1 | $ | 1,293.7 | |||
Accumulated depreciation | (112.4 | ) | (107.2 | ) | |||
Real estate property, net | 1,229.7 | 1,186.5 | |||||
Real estate developments | 136.3 | 155.2 | |||||
Investments in real estate joint ventures and partnerships | 140.5 | 141.0 | |||||
Real estate intangible assets, net | 61.0 | 59.8 | |||||
Real estate investments, net | 1,567.5 | 1,542.5 | |||||
Cash and cash equivalents | 3.0 | 11.4 | |||||
Restricted cash | 187.9 | 223.5 | |||||
Accounts receivable and retention, net | 68.9 | 61.2 | |||||
Inventories | 29.0 | 26.5 | |||||
Other property, net | 128.9 | 135.5 | |||||
Operating lease right-of-use assets | 30.0 | — | |||||
Goodwill | 65.1 | 65.1 | |||||
Other receivables | 54.2 | 56.8 | |||||
Prepaid expenses and other assets | 115.1 | 102.7 | |||||
Total assets | $ | 2,249.6 | $ | 2,225.2 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Notes payable and other debt | $ | 775.0 | $ | 778.1 | |||
Accrued pension and post-retirement benefits | 30.1 | 29.4 | |||||
Deferred revenue | 65.4 | 63.2 | |||||
Accrued and other liabilities | 165.7 | 138.3 | |||||
Redeemable Noncontrolling Interest | 7.9 | 7.9 | |||||
Equity | 1,205.5 | 1,208.3 | |||||
Total liabilities and equity | $ | 2,249.6 | $ | 2,225.2 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 8.7 | $ | 47.4 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||
Depreciation and amortization | 10.9 | 10.2 | |||||
Deferred income taxes | — | (2.7 | ) | ||||
Loss (gain) on asset transactions, net | (2.6 | ) | (50.0 | ) | |||
Share-based compensation expense | 1.4 | 1.3 | |||||
(Income) loss from affiliates, net of distributions of income | (0.8 | ) | 4.8 | ||||
Changes in operating assets and liabilities: | |||||||
Trade, contracts retention, and other contract receivables | (11.0 | ) | (2.1 | ) | |||
Inventories | (2.5 | ) | 2.3 | ||||
Prepaid expenses, income tax receivable and other assets | (4.5 | ) | (1.4 | ) | |||
Accrued pension and post-retirement benefits | 1.6 | 1.1 | |||||
Accounts payable | (4.8 | ) | (8.7 | ) | |||
Accrued and other liabilities | 1.1 | (8.6 | ) | ||||
Real estate inventory sales (real estate developments held for sale) | 31.7 | 22.1 | |||||
Expenditures for real estate inventory (real estate developments held for sale) | (4.6 | ) | (7.2 | ) | |||
Net cash provided by (used in) operations | 24.6 | 8.5 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures for acquisitions | (42.4 | ) | (194.7 | ) | |||
Capital expenditures for property, plant and equipment | (16.6 | ) | (12.7 | ) | |||
Proceeds from disposal of property, investments and other assets | 2.7 | 155.4 | |||||
Payments for purchases of investments in affiliates and other | (2.5 | ) | (9.2 | ) | |||
Distributions of capital from investments in affiliates and other investments | 6.6 | 5.1 | |||||
Net cash provided by (used in) investing activities | (52.2 | ) | (56.1 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 41.4 | 504.1 | |||||
Payments of long-term debt and deferred financing costs | (49.2 | ) | (355.7 | ) | |||
Borrowings (payments) on line-of-credit agreement, net | 3.6 | (2.3 | ) | ||||
Cash dividends paid | (10.5 | ) | (156.6 | ) | |||
Proceeds from issuance (repurchase) of capital stock and other, net | (1.7 | ) | (1.5 | ) | |||
Net cash provided by (used in) financing activities | (16.4 | ) | (12.0 | ) | |||
Cash, Cash Equivalents and Restricted Cash: | |||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (44.0 | ) | (59.6 | ) | |||
Balance, beginning of period | 234.9 | 103.2 | |||||
Balance, end of period | $ | 190.9 | $ | 43.6 |
Three Months Ended March 31, | ||||||||||
(in millions, unaudited) | 2019 | 2018 | Change | |||||||
Commercial Real Estate Operating Profit (Loss) | $ | 15.6 | $ | 15.5 | ||||||
Plus: Depreciation and amortization | 7.4 | 6.3 | ||||||||
Less: Straight-line lease adjustments | (1.0 | ) | (0.1 | ) | ||||||
Less: Favorable/(unfavorable) lease amortization | (0.4 | ) | (0.6 | ) | ||||||
Less: Termination income | — | (1.1 | ) | |||||||
Plus: Other (income)/expense, net | 0.1 | — | ||||||||
Plus: Selling, general, administrative and other expenses | 2.5 | 1.8 | ||||||||
Less: Impact of adoption of ASU 2016-021 | — | (0.1 | ) | |||||||
Cash NOI as adjusted | 24.2 | 21.7 | 11.5% | |||||||
Less: Cash NOI from acquisitions, dispositions and other adjustments | (4.0 | ) | (2.9 | ) | ||||||
Same-Store Cash NOI as adjusted | $ | 20.2 | $ | 18.8 | 7.7% | |||||
1 Represents legal costs that were previously capitalized. 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. |
Three Months Ended March 31, | |||||||
(in millions, unaudited) | 2019 | 2018 | |||||
Operating Profit (Loss) | $ | (4.5 | ) | $ | 0.2 | ||
Depreciation and amortization | 2.8 | 3.0 | |||||
EBITDA | (1.7 | ) | 3.2 | ||||
Income attributable to noncontrolling interest | 0.3 | (0.1 | ) | ||||
Adjusted EBITDA | $ | (1.4 | ) | $ | 3.1 |
1 | See above for a discussion of management's use of non-GAAP financial measures and reconciliations from GAAP to non-GAAP measures. |
2 | 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 and government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory. A change in the way local government entities are contracting for paving services has reduced the amount of paving work that meets the definition of backlog. Certain counties are now awarding "maintenance contracts" under which a contractor can secure all paving work within a certain geographic area, but jobs are not identified in advance, meeting the requirement for inclusion in backlog. This contributes, in part, to the year-over-year declines shown here in backlog. |
Contact: |
Kenneth Kan |
(808) 525-8475 |
kkan@abhi.com |
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 – 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 (2018 - 2019) | |
Table 19 – Commercial Real Estate EBITDA | |
Land Operations | |
Table 20 – Statement of Operating Profit, EBITDA and Adjusted EBITDA | |
Table 21 – Key Active Development-for-sale Projects and Investments | |
Table 22 – Landholdings as of March 31, 2019 | |
Materials & Construction | |
Table 23 – Statement of Operating Profit, EBITDA and Adjusted EBITDA |
• | A 3.5 million-square-foot portfolio of commercial real estate and 117 acres of ground leases throughout the Hawaiian islands, including 2.2 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 |
• | 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 | Diana Laing | |
President & Chief Executive Officer | Interim 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, 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 | ||
Kenneth Kan | JMP Securities LLC | |
Vice President, Capital Markets | Peter Martin | |
(808) 525-8475 | (415) 835-8904 | |
kkan@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) 522-6645 | ||
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 website: www.gracepacific.com | |
Market capitalization at March 31, 2019: $1.8B | ||
Shareholder website: www.computershare.com/investor | 3-month average trading volume: 314K | |
Online inquiries: www.us-computershare.com/investor/contact | Independent auditors: Deloitte & Touche LLP |
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 by adjusting EBITDA for M&C non-cash asset impairments and the other-than-temporary impairment related to the Company's investment in Kukui‘ula. |
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 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, 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 and cash equivalents. |
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 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 (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). |
Land Operations Adjusted EBITDA | Land Operations segment Adjusted EBITDA is calculated by adjusting 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 | Materials & Construction segment Adjusted EBITDA is calculated by adjusting EBITDA for income attributable to noncontrolling interests and asset impairments. |
Occupancy | The percentage of square footage leased and commenced to gross leasable space properties 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. |
• | 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 |
• | Refer to Table 7 for a reconciliation of consolidated net income to EBITDA and Adjusted 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 and Land Operations Adjusted EBITDA. |
• | Refer to Table 23 for a reconciliation of Materials & Construction operating profit to EBITDA and M&C Adjusted EBITDA. |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Real estate investments | |||||||
Real estate property | $ | 1,342.1 | $ | 1,293.7 | |||
Accumulated depreciation | (112.4 | ) | (107.2 | ) | |||
Real estate property, net | 1,229.7 | 1,186.5 | |||||
Real estate developments | 136.3 | 155.2 | |||||
Investments in real estate joint ventures and partnerships | 140.5 | 141.0 | |||||
Real estate intangible assets, net | 61.0 | 59.8 | |||||
Real estate investments, net | 1,567.5 | 1,542.5 | |||||
Cash and cash equivalents | 3.0 | 11.4 | |||||
Restricted cash | 187.9 | 223.5 | |||||
Accounts receivable and retention, net | 68.9 | 61.2 | |||||
Inventories | 29.0 | 26.5 | |||||
Other property, net | 128.9 | 135.5 | |||||
Operating lease right-of-use assets | 30.0 | — | |||||
Goodwill | 65.1 | 65.1 | |||||
Other receivables | 54.2 | 56.8 | |||||
Prepaid expenses and other assets | 115.1 | 102.7 | |||||
Total assets | $ | 2,249.6 | $ | 2,225.2 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Notes payable and other debt | $ | 775.0 | $ | 778.1 | |||
Accounts payable | 26.7 | 34.2 | |||||
Operating lease liabilities | 30.4 | — | |||||
Accrued pension and post-retirement benefits | 30.1 | 29.4 | |||||
Indemnity holdbacks | 16.3 | 16.3 | |||||
Deferred revenue | 65.4 | 63.2 | |||||
Accrued and other liabilities | 92.3 | 87.8 | |||||
Total liabilities | 1,036.2 | 1,009.0 | |||||
Commitments and Contingencies | |||||||
Redeemable Noncontrolling Interest | 7.9 | 7.9 | |||||
Equity: | |||||||
Common stock - no par value; authorized, 150 million shares; outstanding, 72.1 million and 72.0 million shares at March 31, 2019 and December 31, 2018, respectively | 1,794.0 | 1,793.4 | |||||
Accumulated other comprehensive income (loss) | (52.6 | ) | (51.9 | ) | |||
Distributions in excess of accumulated earnings | (541.3 | ) | (538.9 | ) | |||
Total A&B shareholders' equity | 1,200.1 | 1,202.6 | |||||
Noncontrolling interest | 5.4 | 5.7 | |||||
Total equity | 1,205.5 | 1,208.3 | |||||
Total liabilities and equity | $ | 2,249.6 | $ | 2,225.2 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Operating Revenue: | ||||||||
Commercial Real Estate | $ | 36.8 | $ | 35.2 | ||||
Land Operations | 49.0 | 29.3 | ||||||
Materials & Construction | 43.6 | 48.8 | ||||||
Total operating revenue | 129.4 | 113.3 | ||||||
Operating Costs and Expenses: | ||||||||
Cost of Commercial Real Estate | 19.2 | 18.6 | ||||||
Cost of Land Operations | 39.4 | 29.8 | ||||||
Cost of Materials & Construction | 42.1 | 42.9 | ||||||
Selling, general and administrative | 15.5 | 15.0 | ||||||
Total operating costs and expenses | 116.2 | 106.3 | ||||||
Gain (loss) on the sale of commercial real estate properties | — | 49.6 | ||||||
Operating Income (Loss) | 13.2 | 56.6 | ||||||
Other Income and (Expenses): | ||||||||
Income (loss) related to joint ventures | 2.7 | (2.6 | ) | |||||
Interest and other income (expense), net | 1.6 | (0.8 | ) | |||||
Interest expense | (9.1 | ) | (8.4 | ) | ||||
Income (Loss) from Continuing Operations Before Income Taxes | 8.4 | 44.8 | ||||||
Income tax benefit (expense) | 1.1 | 2.7 | ||||||
Income (Loss) from Continuing Operations | 9.5 | 47.5 | ||||||
Income (loss) from discontinued operations, net of income taxes | (0.8 | ) | (0.1 | ) | ||||
Net Income (Loss) | 8.7 | 47.4 | ||||||
Loss (income) attributable to noncontrolling interest | 0.3 | (0.1 | ) | |||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.0 | $ | 47.3 | ||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||
Continuing operations available to A&B shareholders | $ | 0.13 | $ | 0.71 | ||||
Discontinued operations available to A&B shareholders | (0.01 | ) | — | |||||
Net income (loss) available to A&B shareholders | $ | 0.12 | $ | 0.71 | ||||
Diluted Earnings Per Share of Common Stock: | ||||||||
Continuing operations available to A&B shareholders | $ | 0.13 | $ | 0.66 | ||||
Discontinued operations available to A&B shareholders | (0.01 | ) | — | |||||
Net income (loss) available to A&B shareholders | $ | 0.12 | $ | 0.66 | ||||
Weighted-Average Number of Shares Outstanding: | ||||||||
Basic | 72.1 | 66.4 | ||||||
Diluted | 72.5 | 72.2 | ||||||
Amounts Available to A&B Shareholders: | ||||||||
Continuing operations available to A&B shareholders, net of income taxes | $ | 9.8 | $ | 47.4 | ||||
Discontinued operations available to A&B shareholders, net of income taxes | (0.8 | ) | (0.1 | ) | ||||
Net income (loss) available to A&B shareholders | $ | 9.0 | $ | 47.3 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Operating Revenue: | ||||||||
Commercial Real Estate | $ | 36.8 | $ | 35.2 | ||||
Land Operations | 49.0 | 29.3 | ||||||
Materials & Construction | 43.6 | 48.8 | ||||||
Total operating revenue | 129.4 | 113.3 | ||||||
Operating Profit (Loss): | ||||||||
Commercial Real Estate1 | 15.6 | 15.5 | ||||||
Land Operations2 | 12.6 | (5.4 | ) | |||||
Materials & Construction | (4.5 | ) | 0.2 | |||||
Total operating profit (loss) | 23.7 | 10.3 | ||||||
Gain (loss) on the sale of commercial real estate properties | — | 49.6 | ||||||
Interest expense | (9.1 | ) | (8.4 | ) | ||||
General corporate expenses | (6.2 | ) | (6.7 | ) | ||||
Income (Loss) from Continuing Operations Before Income Taxes | 8.4 | 44.8 | ||||||
Income tax benefit (expense) | 1.1 | 2.7 | ||||||
Income (Loss) from Continuing Operations | 9.5 | 47.5 | ||||||
Income (loss) from discontinued operations, net of income taxes | (0.8 | ) | (0.1 | ) | ||||
Net Income (Loss) | 8.7 | 47.4 | ||||||
Loss (income) attributable to noncontrolling interest | 0.3 | (0.1 | ) | |||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.0 | $ | 47.3 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 8.7 | $ | 47.4 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||
Depreciation and amortization | 10.9 | 10.2 | |||||
Deferred income taxes | — | (2.7 | ) | ||||
Loss (gain) on asset transactions, net | (2.6 | ) | (50.0 | ) | |||
Share-based compensation expense | 1.4 | 1.3 | |||||
(Income) loss from affiliates, net of distributions of income | (0.8 | ) | 4.8 | ||||
Changes in operating assets and liabilities: | |||||||
Trade, contracts retention, and other contract receivables | (11.0 | ) | (2.1 | ) | |||
Inventories | (2.5 | ) | 2.3 | ||||
Prepaid expenses, income tax receivable and other assets | (4.5 | ) | (1.4 | ) | |||
Accrued pension and post-retirement benefits | 1.6 | 1.1 | |||||
Accounts payable | (4.8 | ) | (8.7 | ) | |||
Accrued and other liabilities | 1.1 | (8.6 | ) | ||||
Real estate inventory sales (real estate developments held for sale) | 31.7 | 22.1 | |||||
Expenditures for real estate inventory (real estate developments held for sale) | (4.6 | ) | (7.2 | ) | |||
Net cash provided by (used in) operations | 24.6 | 8.5 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures for acquisitions | (42.4 | ) | (194.7 | ) | |||
Capital expenditures for property, plant and equipment | (16.6 | ) | (12.7 | ) | |||
Proceeds from disposal of property, investments and other assets | 2.7 | 155.4 | |||||
Payments for purchases of investments in affiliates and other | (2.5 | ) | (9.2 | ) | |||
Distributions of capital from investments in affiliates and other investments | 6.6 | 5.1 | |||||
Net cash provided by (used in) investing activities | (52.2 | ) | (56.1 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 41.4 | 504.1 | |||||
Payments of long-term debt and deferred financing costs | (49.2 | ) | (355.7 | ) | |||
Borrowings (payments) on line-of-credit agreement, net | 3.6 | (2.3 | ) | ||||
Cash dividends paid | (10.5 | ) | (156.6 | ) | |||
Proceeds from issuance (repurchase) of capital stock and other, net | (1.7 | ) | (1.5 | ) | |||
Net cash provided by (used in) financing activities | (16.4 | ) | (12.0 | ) | |||
Cash, Cash Equivalents and Restricted Cash: | |||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (44.0 | ) | (59.6 | ) | |||
Balance, beginning of period | 234.9 | 103.2 | |||||
Balance, end of period | $ | 190.9 | $ | 43.6 |
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 | 2.4 | 0.3 | 0.4 | 9.8 | — | — | — | 10.5 | 10.5 | ||||||||||||||||||||||
Kailua Town Center #2 | 3.15% | 3.15% | 2021 | 2.3 | 0.1 | 0.1 | 4.6 | — | — | — | 4.8 | (0.2 | ) | 4.6 | ||||||||||||||||||||
Laulani Village | 3.93% | 3.93% | 2024 | 5.0 | — | 0.7 | 1.1 | 1.1 | 1.2 | 57.9 | 62.0 | (0.8 | ) | 61.2 | ||||||||||||||||||||
Pearl Highlands | 4.15% | 4.15% | 2024 | 5.2 | 1.5 | 2.0 | 1.9 | 2.1 | 2.2 | 75.0 | 84.7 | 0.9 | 85.6 | |||||||||||||||||||||
Manoa Marketplace | (2) | 3.14% | 2029 | 9.0 | 0.5 | 1.6 | 1.7 | 1.8 | 1.7 | 52.7 | 60.0 | (0.4 | ) | 59.6 | ||||||||||||||||||||
Heavy Equipment Financing | 5.00% | 5.00% | 2021 | 2.6 | 0.3 | 0.3 | 0.3 | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||
Subtotal | 3.88% | 6.0 | $ | 2.7 | $ | 5.1 | $ | 19.4 | $ | 5.0 | $ | 5.1 | $ | 185.6 | $ | 222.9 | $ | (0.5 | ) | $ | 222.4 | |||||||||||||
Unsecured: | ||||||||||||||||||||||||||||||||||
Term Loan 3 | 5.19% | 5.19% | 2019 | 0.2 | $ | 1.9 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||
Series D Note | 6.90% | 6.90% | 2020 | 0.3 | — | 16.2 | — | — | — | — | 16.2 | — | 16.2 | |||||||||||||||||||||
Term Loan 4 | (3) | 4.49% | 2019 | 0.7 | 9.4 | — | — | — | — | — | 9.4 | — | 9.4 | |||||||||||||||||||||
Bank Syndicated Loan | (4) | 4.09% | 2023 | 3.9 | — | — | — | — | 50.0 | — | 50.0 | — | 50.0 | |||||||||||||||||||||
Series A Note | 5.33% | 5.33% | 2024 | 3.8 | — | — | 7.1 | 7.1 | 7.1 | 7.2 | 28.5 | — | 28.5 | |||||||||||||||||||||
Series J Note | 4.66% | 4.66% | 2025 | 6.1 | — | — | — | — | — | 10.0 | 10.0 | — | 10.0 | |||||||||||||||||||||
Series B Note | 5.55% | 5.55% | 2026 | 4.6 | — | — | 1.0 | 9.0 | 9.0 | 27.0 | 46.0 | — | 46.0 | |||||||||||||||||||||
Series C Note | 5.56% | 5.56% | 2026 | 3.9 | 1.0 | 1.0 | 9.0 | 2.0 | 2.0 | 9.0 | 24.0 | — | 24.0 | |||||||||||||||||||||
Series F Note | 4.35% | 4.35% | 2026 | 4.7 | — | 2.4 | 4.5 | — | 5.5 | 9.6 | 22.0 | — | 22.0 | |||||||||||||||||||||
Series H Note | 4.04% | 4.04% | 2026 | 7.7 | — | — | — | — | — | 50.0 | 50.0 | — | 50.0 | |||||||||||||||||||||
Series K Note | 4.81% | 4.81% | 2027 | 8.1 | — | — | — | — | — | 34.5 | 34.5 | (0.1 | ) | 34.4 | ||||||||||||||||||||
Series G Note | 3.88% | 3.88% | 2027 | 3.8 | 7.5 | 5.4 | 1.5 | 6.0 | 5.0 | 17.1 | 42.5 | — | 42.5 | |||||||||||||||||||||
Series L Note | 4.89% | 4.89% | 2028 | 9.1 | — | — | — | — | — | 18.0 | 18.0 | (0.3 | ) | 17.7 | ||||||||||||||||||||
Series I Note | 4.16% | 4.16% | 2028 | 9.8 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||
Term Loan 5 | 4.30% | 4.30% | 2029 | 10.8 | — | — | — | — | — | 25.0 | 25.0 | — | 25.0 | |||||||||||||||||||||
Subtotal | 4.68% | 4.6 | $ | 19.8 | $ | 25.0 | $ | 23.1 | $ | 24.1 | $ | 78.6 | $ | 232.4 | $ | 403.0 | $ | (0.4 | ) | $ | 402.6 | |||||||||||||
Revolving Credit Facilities: | ||||||||||||||||||||||||||||||||||
GLP Asphalt Revolving Credit Facility | (5) | 3.74% | 2020 | 1.5 | $ | — | $ | 9.8 | $ | — | $ | — | $ | — | $ | — | $ | 9.8 | $ | — | $ | 9.8 | ||||||||||||
Revolving credit facility | (6) | 4.16% | 2022 | 3.8 | $ | — | $ | — | $ | — | $ | 140.2 | $ | — | $ | — | $ | 140.2 | $ | — | $ | 140.2 | ||||||||||||
Subtotal | 4.13% | 3.6 | $ | — | $ | 9.8 | $ | — | $ | 140.2 | $ | — | $ | — | $ | 150.0 | $ | — | $ | 150.0 | ||||||||||||||
Total | 4.34% | 4.8 | $ | 22.5 | $ | 39.9 | $ | 42.5 | $ | 169.3 | $ | 83.7 | $ | 418.0 | $ | 775.9 | $ | (0.9 | ) | $ | 775.0 | |||||||||||||
(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. | ||||||||||||||||||||||||||||||||||
(2) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. | ||||||||||||||||||||||||||||||||||
(3) Loan has a stated interest rate of LIBOR plus 2.00%, and is secured by a letter of credit. | ||||||||||||||||||||||||||||||||||
(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. |
Debt | |||||
Secured debt | $ | 222.4 | |||
Unsecured term debt | 402.6 | ||||
Unsecured revolving credit facility | 150.0 | ||||
Total debt | 775.0 | ||||
Add: Net unamortized deferred financing cost / discount premium | 0.9 | ||||
Less: cash and cash equivalents | (3.0 | ) | |||
Net debt | $ | 772.9 | |||
Market Capitalization | Shares | Stock Price | Market Value | ||
Common stock (NYSE:ALEX) | 72,135,750 | $25.44 | $ | 1,835.1 | |
Total market capitalization | $ | 1,835.1 | |||
Total Capitalization | $ | 2,610.1 | |||
Debt to total capitalization | 29.7 | % | |||
Liquidity | |||||
Cash on hand | $ | 3.0 | |||
Unused committed line of credit | 298.5 | ||||
Total liquidity | $ | 301.5 | |||
Financial Ratios | |||||
Net debt to TTM Adjusted EBITDA | 3 x | ||||
Fixed-charge coverage ratio | 6.4 x | ||||
Fixed-rate debt to total debt | 72.9 | % | |||
Unencumbered CRE assets as a percent of total CRE assets (gross book value) | 72.1 | % |
Consolidated EBITDA & Adjusted EBITDA | ||||||||||||
Three Months Ended March 31, | TTM March 31, | |||||||||||
2019 | 2018 | 2019 | ||||||||||
Net Income (Loss) | $ | 8.7 | $ | 47.4 | $ | (108.5 | ) | |||||
Adjustments: | ||||||||||||
Depreciation and amortization | 10.9 | 10.2 | 43.5 | |||||||||
Interest expense | 9.1 | 8.4 | 36.0 | |||||||||
Income tax expense (benefit) | (1.1 | ) | (2.7 | ) | 17.9 | |||||||
EBITDA | $ | 27.6 | $ | 63.3 | $ | (11.1 | ) | |||||
Asset impairments related to the Materials and Construction Segment | — | — | 77.8 | |||||||||
Other-than-temporary impairment of Kukui‘ula joint venture | — | — | 186.8 | |||||||||
Adjusted EBITDA | $ | 27.6 | $ | 63.3 | $ | 253.5 | ||||||
Other discrete items impacting the respective periods: | ||||||||||||
Loss (income) attributable to noncontrolling interest | $ | 0.3 | $ | (0.1 | ) | $ | (1.8 | ) | ||||
(Income) loss from discontinued operations before interest, income taxes and depreciation and amortization | $ | 0.8 | $ | 0.1 | $ | 1.3 | ||||||
Impairment of assets | $ | — | $ | — | $ | 79.4 | ||||||
Impairment of equity method investment | $ | — | $ | — | $ | 188.6 | ||||||
Gain on sale of commercial real estate properties | $ | — | $ | (49.6 | ) | $ | (1.8 | ) | ||||
Margin on agricultural land sale | $ | (6.7 | ) | $ | — | $ | (168.9 | ) |
Consolidated SG&A | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Commercial Real Estate | $ | 2.5 | $ | 1.7 | ||||
Land Operations | 1.3 | 1.8 | ||||||
Materials & Construction | 5.7 | 5.1 | ||||||
Corporate and Other | 6.0 | 6.4 | ||||||
Selling, general and administrative | $ | 15.5 | $ | 15.0 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Operating Revenues: | ||||||||
Base rents | $ | 24.7 | $ | 22.4 | ||||
Recoveries from tenants | 9.7 | 8.7 | ||||||
Other revenues | 2.4 | 4.1 | ||||||
Total Commercial Real Estate revenues | 36.8 | 35.2 | ||||||
Operating Costs and Expenses: | ||||||||
Property operations | 9.6 | 9.2 | ||||||
Property taxes | 2.2 | 3.1 | ||||||
Depreciation and amortization | 7.4 | 6.3 | ||||||
Total Cost of Commercial Real Estate | 19.2 | 18.6 | ||||||
Selling, general and administrative | (2.5 | ) | (1.7 | ) | ||||
Intersegment operating revenues 1 | 0.6 | 0.6 | ||||||
Interest and other income (expense), net | (0.1 | ) | — | |||||
Operating Profit (Loss) | 15.6 | 15.5 | ||||||
Plus: Depreciation and amortization | 7.4 | 6.3 | ||||||
Less: Straight-line lease adjustments | (1.0 | ) | (0.1 | ) | ||||
Less: Favorable/(unfavorable) lease amortization | (0.4 | ) | (0.6 | ) | ||||
Less: Termination income | — | (1.1 | ) | |||||
Plus: Other (income)/expense, net | 0.1 | — | ||||||
Plus: Selling, general, administrative and other expenses | 2.5 | 1.8 | ||||||
Less: Impact of adoption of ASU 2016-022 | — | (0.1 | ) | |||||
Cash NOI as adjusted | 24.2 | 21.7 | ||||||
Less: Cash NOI from acquisitions, dispositions and other adjustments | (4.0 | ) | (2.9 | ) | ||||
Same-Store Cash NOI as adjusted | $ | 20.2 | $ | 18.8 | ||||
Maintenance Capital Expenditures: | ||||||||
Building improvements | $ | 2.5 | $ | 1.4 | ||||
Tenant improvements | 0.9 | 3.2 | ||||||
Total maintenance capital expenditures | $ | 3.4 | $ | 4.6 | ||||
Leasing Commissions Paid: | 0.4 | 1.2 | ||||||
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 that were previously capitalized. 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. |
Occupancy | |||||
As of | As of | Percentage Point Change | |||
March 31, 2019 | March 31, 2018 | ||||
Retail | 94.9% | 93.1% | 1.8 | ||
Industrial | 90.8% | 89.3% | 1.5 | ||
Office | 94.3% | 90.1% | 4.2 | ||
Total | 93.6% | 91.8% | 1.8 |
Same-Store Occupancy | |||||
As of | As of | Percentage Point Change | |||
March 31, 2019 | March 31, 2018 | ||||
Retail | 94.4% | 93.2% | 1.2 | ||
Industrial | 90.8% | 89.3% | 1.5 | ||
Office | 94.3% | 90.1% | 4.2 | ||
Total | 93.2% | 91.7% | 1.5 |
Total Portfolio Cash NOI | |||||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018(1) | % Percent Change | |||||||
Retail | $ | 16,387 | $ | 12,868 | 27.3% | ||||
Industrial | 3,869 | 3,129 | 23.6% | ||||||
Office | 922 | 1,124 | (18.0)% | ||||||
Ground | 3,049 | 3,124 | (2.4)% | ||||||
Total Hawai‘i Portfolio | $ | 24,227 | $ | 20,245 | 19.7% | ||||
Other | (8 | ) | 1,462 | ||||||
Total | $ | 24,219 | $ | 21,707 |
Same-Store Cash NOI | |||||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018(1) | % Percent Change | |||||||
Retail | $ | 12,908 | $ | 11,761 | 9.8% | ||||
Industrial | 3,390 | 3,129 | 8.3% | ||||||
Office | 922 | 993 | (7.2)% | ||||||
Ground | 3,013 | 2,905 | 3.7% | ||||||
Total | $ | 20,233 | $ | 18,788 | 7.7% |
Property | Island | Year Built/ Renovated | Current GLA (SF) | Occupancy | ABR | ABR PSF | Q1 2019 Cash NOI | Q1 2019 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Retail: | ||||||||||||||||||
1 | Pearl Highlands Center | (1) | Oahu | 1992-1994 | 411,400 | 98.1% | $ | 10,236 | $ | 26.87 | $ | 2,596 | 12.3% | Sam's Club, Regal Cinemas, 24 Hour Fitness | ||||
2 | Kailua Retail | (3)(1) | Oahu | 1947-2014, 2018 | 365,000 | 96.8% | 12,378 | 37.36 | 3,184 | 15.0% | Whole Foods Market, Foodland, CVS/Longs Drugs, Ulta Salon | |||||||
3 | Laulani Village | Oahu | 2012 | 175,600 | 96.4% | 6,190 | 37.18 | 1,560 | 7.4% | Safeway, Ross, Walgreens, Petco | ||||||||
4 | Waianae Mall | (1) | Oahu | 1975 | 170,300 | 86.3% | 3,068 | 20.89 | 768 | 3.6% | CVS/Longs Drugs, City Mill | |||||||
5 | Manoa Marketplace | (1) | Oahu | 1977 | 140,400 | 92.2% | 4,444 | 34.53 | 1,181 | 5.6% | Safeway, CVS/Longs Drugs | |||||||
6 | Kaneohe Bay Shopping Center (Leasehold) | (1) | Oahu | 1971 | 125,400 | 100.0% | 3,080 | 24.56 | 732 | 3.4% | Safeway, CVS/Longs Drugs | |||||||
7 | Hokulei Village | Kauai | 2015 | 119,200 | 98.4% | 4,166 | 35.51 | 1,003 | 4.7% | Safeway, Petco | ||||||||
8 | Waipio Shopping Center | (1) | Oahu | 1986, 2004 | 113,800 | 95.6% | 3,215 | 29.54 | 895 | 4.2% | Foodland | |||||||
9 | Aikahi Park Shopping Center | (1) | Oahu | 1971 | 98,000 | 79.2% | 1,765 | 22.75 | 523 | 2.4% | Safeway | |||||||
10 | The Shops at Kukui‘ula | (1) | Kauai | 2009 | 89,100 | 92.5% | 4,458 | 54.75 | 1,181 | 5.6% | CVS/Longs Drugs, Eating House, Living Foods Market | |||||||
11 | Lanihau Marketplace | (1) | Hawai‘i Island | 1987 | 88,300 | 97.2% | 1,830 | 21.16 | 479 | 2.3% | Sak' N Save, CVS/Longs Drugs | |||||||
12 | Kunia Shopping Center | (1) | Oahu | 2004 | 60,600 | 98.3% | 2,328 | 39.75 | 670 | 3.2% | ||||||||
13 | Napili Plaza | (1) | Maui | 1991 | 45,600 | 85.0% | 1,123 | 32.89 | 265 | 1.3% | Napili Market | |||||||
14 | Kahului Shopping Center | (1) | Maui | 1951 | 45,300 | 96.9% | 655 | 14.92 | 51 | 0.2% | ||||||||
15 | Gateway at Mililani Mauka | (1) | Oahu | 2008, 2013 | 34,900 | 97.7% | 1,850 | 54.31 | 487 | 2.3% | CVS/Longs Drugs (shadow-anchored) | |||||||
16 | Port Allen Marina Center | (1) | Kauai | 2002 | 23,600 | 92.0% | 577 | 26.62 | 161 | 0.8% | ||||||||
17 | The Collection | Oahu | 2017 | 12,000 | 100.0% | 289 | 57.16 | 48 | 0.2% | |||||||||
18 | Pu'unene Shopping Center | (2) | Maui | 2017 | 120,500 | N/A | — | — | 603 | 2.8% | Planet Fitness, Petco, Ulta Salon, Target (shadow-anchored) | |||||||
Subtotal – Retail | 2,239,000 | 94.9% | $ | 61,652 | $ | 31.64 | $ | 16,387 | 77.3% | |||||||||
Industrial: | ||||||||||||||||||
19 | Komohana Industrial Park | (1) | Oahu | 1990 | 238,300 | 81.2% | $ | 2,464 | $ | 12.73 | $ | 1,022 | 4.8% | |||||
20 | Kaka‘ako Commerce Center | (1) | Oahu | 1969 | 195,200 | 92.1% | 2,693 | 14.98 | 545 | 2.6% | ||||||||
21 | Waipio Industrial | (1) | Oahu | 1988-1989 | 158,400 | 99.0% | 2,495 | 15.95 | 621 | 2.9% | ||||||||
22 | P&L Warehouse | (1) | Maui | 1970 | 104,100 | 90.9% | 1,348 | 14.24 | 330 | 1.5% | ||||||||
23 | Honokohau Industrial | (1) | Hawai‘i Island | 2004-2006, 2008 | 86,000 | 100.0% | 1,177 | 13.69 | 293 | 1.4% | ||||||||
24 | Kailua Industrial/Other | (1) | Oahu | 1951-1974 | 69,000 | 92.4% | 1,017 | 16.45 | 248 | 1.2% | ||||||||
25 | Port Allen | (1) | Kauai | 1983, 1993 | 63,800 | 100.0% | 713 | 11.17 | 206 | 1.0% | ||||||||
26 | Harbor Industrial | (1) | Maui | 1930 | 51,100 | 76.5% | 472 | 12.08 | 125 | 0.6% | ||||||||
27 | Opule Industrial | (2) | Oahu | 2005-2006, 2018 | 151,500 | N/A | — | — | 479 | 2.3% | ||||||||
Subtotal – Industrial | 1,117,400 | 90.8% | $ | 12,379 | $ | 14.15 | $ | 3,869 | 18.3% |
Property | Island | Year Built/ Renovated | Current GLA (SF) | Occupancy | ABR | ABR PSF | Q1 2019 Cash NOI | Q1 2019 % Cash NOI to Total Portfolio Cash NOI | Retail Anchor Tenants | |||||||||
Office: | ||||||||||||||||||
28 | Kahului Office Building | (1) | Maui | 1974 | 59,400 | 90.9% | $ | 1,556 | $ | 28.84 | $ | 335 | 1.6% | |||||
29 | Gateway at Mililani Mauka South | (1) | Oahu | 1992, 2006 | 37,100 | 100.0% | 1,264 | 44.96 | 372 | 1.8% | ||||||||
30 | Kahului Office Center | (1) | Maui | 1991 | 33,400 | 91.8% | 748 | 25.97 | 172 | 0.8% | ||||||||
31 | Lono Center | (1) | Maui | 1973 | 13,700 | 100.0% | 320 | 23.42 | 43 | 0.2% | ||||||||
Subtotal – Office | 143,600 | 94.3% | $ | 3,888 | $ | 31.22 | $ | 922 | 4.4% | |||||||||
Total – Hawai‘i Portfolio | 3,500,000 | 93.6% | $ | 77,919 | $ | 26.43 | $ | 21,178 | 100.0% |
(1) Included in Same-Store portfolio. | ||||||||||
(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) Lau Hala Shops is included in Kailua retail, however NOI pertaining to Lau Hala Shops is not included in the Same-Store portfolio. |
Ground Leases (1) | Location (City, Island) | Acres | Property Type | Exp. Year | Current ABR | Q1 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 | $ | 700 | 2023 | FMV Reset | FMV | 2017 | Fixed Step | $ | 2,100 | ||||
#2 | Honolulu, Oahu | 9.0 | Retail | 2045 | 1,886 | 35 | 2020 | Fixed Step | 2,075 | 0 | Fixed Step | 1,715 | ||||||||
#3 | (2) | Honolulu, Oahu | 2.8 | Retail | 2040 | 1,344 | 336 | 2020 | FMV Reset | FMV | 2016 | Fixed Step | 1,296 | |||||||
#4 | (2) | Kaneohe, Oahu | 3.7 | Retail | 2048 | 990 | 247 | 2023 | Fixed Step | 1,059 | 2018 | Option | 694 | |||||||
#5 | (2) | Kailua, Oahu | 3.4 | Retail | 2062 | 753 | 188 | 2022 | Fixed Step | 963 | 2012 | FMV Reset | 160 | |||||||
#6 | (2) | Pu‘unene, Maui | 52.0 | Heavy Industrial | 2034 | 751 | 232 | 2019 | FMV Reset | FMV | 2014 | Fixed Step | 626 | |||||||
#7 | (2) | Kailua, Oahu | 1.9 | Retail | 2034 | 641 | 160 | 2019 | Fixed Step | 450 | 2017 | Option | 614 | |||||||
#8 | (2) | Kailua, Oahu | 2.2 | Retail | 2062 | 485 | 121 | 2022 | Fixed Step | 621 | 2012 | FMV Reset | unknown | |||||||
#9 | (2) | Honolulu, Oahu | 0.5 | Retail | 2028 | 348 | 87 | 2020 | Fixed Step | 357 | 2019 | Fixed Step | 340 | |||||||
#10 | (2) | Honolulu, Oahu | 0.5 | Parking | 2023 | 310 | 78 | 2019 | Fixed Step | 319 | 2018 | Fixed Step | 270 | |||||||
#11 | (2) | Kailua, Oahu | 3.3 | Office | 2037 | 257 | 63 | 2022 | FMV Reset | FMV | 2012 | Negotiated | 226 | |||||||
#12 | (2) | Kailua, Oahu | 1.2 | Retail | 2022 | 237 | 55 | — | — | — | 2013 | FMV Reset | 120 | |||||||
#13 | (2) | Kahului, Maui | 0.8 | Retail | 2026 | 235 | 59 | 2019 | Fixed Step | 242 | 2018 | Fixed Step | 228 | |||||||
#14 | (2) | Kahului, Maui | 0.4 | Retail | 2020 | 207 | 52 | 2019 | Fixed Step | 214 | 2018 | Fixed Step | 201 | |||||||
#15 | (2) | Kahului, Maui | 0.8 | Industrial | 2020 | 192 | 48 | 2019 | Fixed Step | 200 | 2018 | Fixed Step | 183 | |||||||
#16 | (2) | Kailua, Oahu | 0.9 | Retail | 2033 | 181 | 45 | 43,586 | FMV Reset | FMV | 2014 | Fixed Step | 167 | |||||||
#17 | (2) | Kahului, Maui | 0.5 | Retail | 2029 | 168 | 67 | 2019 | Fixed Step | 173 | 2018 | Fixed Step | 163 | |||||||
#18 | (2) | Kahului, Maui | 0.4 | Retail | 2027 | 158 | 52 | 2022 | Fixed Step | 181 | 2017 | Negotiated | 128 | |||||||
#19 | (2) | Kailua, Oahu | 0.4 | Retail | 2022 | 151 | 38 | 2020 | Fixed Step | 158 | 2019 | Negotiated | 144 | |||||||
#20 | (2) | Kailua, Oahu | 0.4 | Retail | 2026 | 126 | 32 | — | — | — | 2017 | Negotiated | 63 | |||||||
Remainder | (2) | Various | 16.8 | Various | Various | 1,315 | 355 | Various | Various | — | — | — | — | |||||||
Total - Ground Leases | 117.3 | $ | 13,535 | $ | 3,050 | |||||||||||||||
(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 portfolio. |
Portfolio Summary | Current GLA (SF) | Occupancy | Q1 2019 Cash NOI | Q1 2019 % Cash NOI to Total Portfolio Cash NOI | ||||
Portfolio | 3,500,000 | 93.6% | $ | 21,178 | 87.4% | |||
Ground Leases | 3,050 | 12.6% | ||||||
Other | (8 | ) | —% | |||||
Total CRE Portfolio | 3,500,000 | 93.6% | $ | 24,220 | 100.0% |
Addition | |
Date | Property |
6/17 | Honokohau Industrial |
Tenant 1 | ABR | % of Total Portfolio ABR | GLA (SF) | % of Total Portfolio GLA | ||||||||
Albertsons Companies (including Safeway) | $ | 4,537 | 5.8 | % | 226,208 | 6.4 | % | |||||
Sam's Club | 3,308 | 4.2 | % | 180,908 | 5.2 | % | ||||||
CVS Corporation (including Longs Drugs) | 2,697 | 3.5 | % | 150,411 | 4.3 | % | ||||||
Foodland Supermarket & related companies | 2,052 | 2.6 | % | 114,739 | 3.2 | % | ||||||
Ross Dress for Less | 1,992 | 2.5 | % | 65,484 | 1.9 | % | ||||||
Coleman World Group | 1,780 | 2.3 | % | 115,495 | 3.3 | % | ||||||
Ulta Salon, Cosmetics, & Fragrance, Inc. | 1,508 | 1.9 | % | 33,985 | 1.0 | % | ||||||
24 Hour Fitness USA | 1,375 | 1.8 | % | 45,870 | 1.3 | % | ||||||
Petco Animal Supplies Stores | 1,316 | 1.7 | % | 34,282 | 1.0 | % | ||||||
Whole Foods Market | 1,210 | 1.6 | % | 31,647 | 0.9 | % | ||||||
Total | $ | 21,775 | 27.9 | % | 999,029 | 28.5 | % | |||||
1 Excludes intersegment ground leases, primarily from the Materials & Construction segment, which are eliminated in the 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 | |||||||
2019 | 97 | 233,440 | 7.7% | $ | 6,252 | 7.2% | ||||||
2020 | 150 | 453,139 | 15.0% | 10,856 | 12.5% | |||||||
2021 | 132 | 524,017 | 17.3% | 11,980 | 13.8% | |||||||
2022 | 120 | 325,097 | 10.8% | 10,821 | 12.5% | |||||||
2023 | 97 | 240,358 | 8.0% | 7,916 | 9.1% | |||||||
2024 | 40 | 334,780 | 11.1% | 8,805 | 10.2% | |||||||
2025 | 21 | 89,572 | 3.0% | 3,403 | 3.9% | |||||||
2026 | 13 | 37,037 | 1.2% | 1,764 | 2.0% | |||||||
2027 | 11 | 105,447 | 3.5% | 2,856 | 3.3% | |||||||
2028 | 25 | 151,695 | 5.0% | 6,392 | 7.4% | |||||||
Thereafter | 34 | 383,352 | 12.6% | 12,716 | 14.7% | |||||||
Month-to-month | 73 | 144,883 | 4.8% | 2,985 | 3.4% | |||||||
Total | 813 | 3,022,817 | 100.0% | $ | 86,746 | 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 | 51 | 112,851 | 5.6% | $ | 4,083 | 5.9% | ||||||
2020 | 92 | 226,404 | 11.3% | 7,105 | 10.3% | |||||||
2021 | 79 | 279,480 | 13.9% | 8,082 | 11.8% | |||||||
2022 | 88 | 193,444 | 9.6% | 8,427 | 12.3% | |||||||
2023 | 76 | 179,034 | 8.9% | 6,874 | 10.0% | |||||||
2024 | 35 | 325,613 | 16.2% | 8,564 | 12.5% | |||||||
2025 | 20 | 66,052 | 3.3% | 2,965 | 4.3% | |||||||
2026 | 11 | 16,203 | 0.8% | 822 | 1.2% | |||||||
2027 | 9 | 27,855 | 1.4% | 1,315 | 1.9% | |||||||
2028 | 23 | 148,965 | 7.4% | 6,321 | 9.2% | |||||||
Thereafter | 32 | 373,891 | 18.6% | 12,243 | 17.8% | |||||||
Month-to-month | 40 | 60,191 | 3.0% | 1,949 | 2.8% | |||||||
Total | 556 | 2,009,983 | 100.0% | $ | 68,750 | 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 | 34 | 94,256 | 10.7% | $ | 1,414 | 10.6% | ||||||
2020 | 47 | 198,063 | 22.6% | 2,802 | 21.1% | |||||||
2021 | 40 | 221,691 | 25.3% | 3,218 | 24.2% | |||||||
2022 | 26 | 121,526 | 13.9% | 2,020 | 15.2% | |||||||
2023 | 16 | 47,694 | 5.4% | 689 | 5.2% | |||||||
2024 | 2 | 3,363 | 0.4% | 82 | 0.6% | |||||||
2025 | 1 | 23,520 | 2.7% | 438 | 3.3% | |||||||
2026 | 1 | 6,750 | 0.8% | 130 | 1.0% | |||||||
2027 | 1 | 75,824 | 8.6% | 1,438 | 10.8% | |||||||
2028 | — | — | —% | — | —% | |||||||
Thereafter | 1 | 431 | —% | 20 | 0.2% | |||||||
Month-to-month | 32 | 84,254 | 9.6% | 1,029 | 7.8% | |||||||
Total | 201 | 877,372 | 100.0% | $ | 13,280 | 100.0% |
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 Spread | ||||||||
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% | ||||||
3rd Quarter - 2018 | 58 | 128,091 | $ | 28.28 | $ | 8.42 | 5.3 | 36 | 49,552 | $33.69 | $32.60 | 3.3% | ||||||
2nd Quarter - 2018 | 66 | 132,219 | $ | 30.43 | $ | 2.33 | 3.8 | 50 | 108,923 | $30.71 | $28.13 | 9.2% | ||||||
Trailing four quarters | 233 | 639,082 | $ | 25.84 | $ | 5.51 | 5.6 | 147 | 338,123 | $27.31 | $25.26 | 8.1% | ||||||
Total - New Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread | ||||||||
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)% | ||||||
3rd Quarter - 2018 | 30 | 74,424 | $ | 27.75 | $ | 14.15 | 6.4 | 12 | 12,706 | $30.61 | $26.23 | 16.7% | ||||||
2nd Quarter - 2018 | 30 | 54,312 | $ | 27.96 | $ | 5.10 | 3.5 | 15 | 32,084 | $27.12 | $26.47 | 2.5% | ||||||
Trailing four quarters | 122 | 347,827 | $ | 26.33 | $ | 9.90 | 6.9 | 43 | 72,747 | $31.57 | $30.29 | 4.2% | ||||||
Total - Renewal Leases | Leases | GLA | New ABR/SF | TI / SF | Wtd Ave Lease Term (Years) | Leases | GLA | New ABR/SF | Old ABR/SF | Rent Spread | ||||||||
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% | ||||||
3rd Quarter - 2018 | 28 | 53,667 | $ | 29.02 | $ | 0.49 | 3.9 | 24 | 36,846 | $34.75 | $34.80 | (0.1)% | ||||||
2nd Quarter - 2018 | 36 | 77,907 | $ | 32.14 | $ | 0.39 | 4.1 | 35 | 76,839 | $32.22 | $28.82 | 11.8% | ||||||
Trailing four quarters | 111 | 291,255 | $ | 25.26 | $ | 0.26 | 3.9 | 104 | 265,376 | $26.15 | $23.89 | 9.5% | ||||||
Three Months Ended March 31, 2019 | TTM Ended March 31, 2019 | |||||||||||||||||
Leases | GLA | AB/SF | Rent Spread | Leases | GLA (SF) | ABR/SF | Rent Spread2 | |||||||||||
Retail | 28 | 47,278 | $ | 48.70 | 11.8% | Retail | 142 | 272,406 | $ | 39.39 | 9.0% | |||||||
Industrial | 23 | 66,436 | $ | 14.51 | 8.9% | Industrial | 77 | 335,868 | $ | 14.68 | 12.2% | |||||||
Office | 3 | 6,049 | $ | 24.00 | 4.0% | Office | 14 | 30,808 | $ | 27.73 | (8.5)% |
Leasing Activity | ||||||||||||
Project | Phase | Target In-service | Target Stabilization | Book Value of Land & Related Costs | 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 Costs | Projected GLA (SF) | % Leased | % Under Letter of Intent | Total |
Redevelopment | ||||||||||||
Aikahi Park Shopping Center | Planning | Late 2020 | 4Q21 | N/A | $15.5 - $17.5 | $0.3 | $1.2 - $1.5 | 8.5 - 9.0% | 98,000 | 80 | — | 80 |
Development for Hold | ||||||||||||
Ho‘okele Shopping Center 1 | Construction | Mid 2019 | 2Q20 | $4.3 | $41.9 | $28.2 | $3.1 - $3.6 | 7.4 - 8.6% | 94,000 | 64 | — | 64 |
1 The center is being developed on a parcel adjacent to Maui Business Park. The carrying value of this parcel, including certain previously incurred infrastructure improvements and related costs, was $4.3 million at project inception. The stabilized yield on cost was determined utilizing this book value. |
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) | ||||
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 | $ | 346.0 | 578,700 |
Three Months Ended March 31, | TTM March 31, | |||||||||||
2019 | 2018 | 2019 | ||||||||||
Commercial Real Estate Operating Profit (Loss) | $ | 15.6 | $ | 15.5 | $ | 58.6 | ||||||
Depreciation and amortization | 7.4 | 6.3 | 29.1 | |||||||||
EBITDA | $ | 23.0 | $ | 21.8 | $ | 87.7 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Development sales revenue | $ | 12.3 | $ | 23.0 | ||||
Unimproved/other property sales revenue | 30.5 | 0.3 | ||||||
Other operating revenues1 | 6.2 | 6.0 | ||||||
Total Land Operations operating revenue | $ | 49.0 | $ | 29.3 | ||||
Land Operations costs and operating expenses | (40.8 | ) | (32.2 | ) | ||||
Earnings (loss) from joint ventures | 2.6 | (2.6 | ) | |||||
Interest and other income (expense), net | 1.8 | 0.1 | ||||||
Land Operations operating profit (loss) | $ | 12.6 | $ | (5.4 | ) |
Three Months Ended March 31, | TTM March 31, | |||||||||||
2019 | 2018 | 2019 | ||||||||||
Land Operations Operating Profit (Loss) | $ | 12.6 | $ | (5.4 | ) | $ | (8.7 | ) | ||||
Depreciation and amortization | 0.4 | 0.5 | 1.8 | |||||||||
EBITDA | $ | 13.0 | $ | (4.9 | ) | (6.9 | ) | |||||
Other-than-temporary impairment of Kukui‘ula joint venture | — | — | 186.8 | |||||||||
Land Operations Adjusted EBITDA | $ | 13.0 | $ | (4.9 | ) | $ | 179.9 |
Construction Timing | Sales Closing Timing | ||||||||||||||||||||||||||||
Project | Location | Product Type | Est. Economic Interest 1 | 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 Cost 2 | A&B Projected Capital Commitment 3 | 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% | 17.0 acres | 0.5 acres | 15.0 acres | 2.0 acres | $200-$335 | $ | 135 | N/A | $ | 134 | $ | 134 | $ | 17 | N/A | N/A | 2013 | 2019 | ||||||||
Kamalani (Increment 1) | Kihei, Maui | Primary residential | 100% | 170 units | 949 SF | 148 units | 22 units | $434 | $ | 60 | N/A | $ | 58 | $ | 58 | $ | 11 | 2016 | 2019 | 2017 | 2019 | ||||||||
Maui Business Park (Phase II) | Kahului, Maui | Light industrial lots | 100% | 125.0 acres | 1.9 acres | 35.0 acres | 90.0 acres | $38-$60 | $ | 77 | N/A | $ | 59 | $ | 59 | $ | 38 | 2011 | 2021 | 2012 | 2030+ | ||||||||
Kukui‘ula | Poipu, Kauai | Resort residential | 85% +/- 5% | 1,425 units | N/A | 197 units | 1,228 units | $1.1M per unit | $ | 1,071 | $ | 343 | $ | 623 | $ | 323 | $ | 116 | 2006 | 2041 | 2006 | 2042 | |||||||
Other Kukui‘ula Related Investments 4 | Poipu, Kauai | Resort residential | 75% +/- 5% | 60 units | N/A | 51 units | 9 units | $3.7M per unit | $ | 118 | $ | 63 | $ | 99 | $ | 61 | $ | 26 | 2012 | 2018 | 2013 | 2020 | |||||||
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 three vertical construction, development-for-sale projects at Kukui‘ula, as well as notes receivable from a Kukui‘ula development-for-sale project ($13.6 million as of March 31, 2019). |
Type | Maui | Kauai | Oahu | Total Acres |
Land used in other operations | 21 | 20 | — | 41 |
Urban land, not in active development/use | ||||
Developable, with full or partial infrastructure | 110 | 7 | — | 117 |
Developable, with limited or no infrastructure | 186 | 29 | — | 215 |
Other | 12 | 6 | — | 18 |
Subtotal - Urban land, not in active development | 308 | 42 | — | 350 |
Agriculture-related | ||||
Agriculture | 6,284 | 6,358 | 75 | 12,717 |
In urban entitlement process | 357 | 260 | — | 617 |
Conservation & preservation | 393 | 13,309 | 509 | 14,211 |
Subtotal - Agriculture-related | 7,034 | 19,927 | 584 | 27,545 |
Total Land Operations Landholdings | 7,363 | 19,989 | 584 | 27,936 |
Three Months Ended March 31, | TTM March 31, | |||||||||||
2019 | 2018 | 2019 | ||||||||||
Operating Profit (Loss)1 | $ | (4.5 | ) | $ | 0.2 | $ | (77.9 | ) | ||||
Depreciation and amortization | 2.8 | 3.0 | 11.9 | |||||||||
EBITDA | (1.7 | ) | 3.2 | (66.0 | ) | |||||||
Asset impairments related to the Materials & Construction Segment | — | — | 77.8 | |||||||||
Loss (income) attributable to noncontrolling interest | 0.3 | (0.1 | ) | (1.8 | ) | |||||||
M&C Adjusted EBITDA | $ | (1.4 | ) | $ | 3.1 | $ | 10.0 | |||||
Three Months Ended March 31, | TTM March 31, | |||||||||||
2019 | 2018 | 2019 | ||||||||||
Adjusted EBITDA margin | (3.2)% | 6.4% | 4.8% | |||||||||
Aggregate tons delivered (tons in thousands) | 201.0 | 167.3 | 751.9 | |||||||||
Asphalt tons delivered (tons in thousands) | 77.0 | 108.7 | 466.5 | |||||||||
Crew days lost to weather | 101.0 | 134.5 | 327.0 | |||||||||
Total available crew days | 599.0 | 605.0 | 2,537.0 | |||||||||
% days lost to weather | 16.9% | 22.2% | 12.9% | |||||||||
Backlog (as of period end, in millions) | $124.7 | $198.4 |
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