Alexander & Baldwin (ALEX) Reports Q3 EPS of $0.15

Alexander & Baldwin (NYSE: ALEX) reported Q3 EPS of $0.15, versus $0.24 reported last year.

• Fully-diluted earnings per share from continuing operations available to A&B shareholders ("EPS") was $0.15 for 3Q17, compared to $0.24 for the third quarter of 2016 (\"3Q16\"). EPS for 3Q17 included REIT conversion costs of $0.06, compared to $0.03 for 3Q16, and included $0.03 of expenses associated with personnel-related transitions that were not incurred in 3Q16.
• Commercial Real Estate ("CRE") 3Q17 operating profit was $13.6 million, compared to $13.5 million for 3Q16 and Same-Store Cash Net Operating Income1 ("Same-Store Cash NOI") for 3Q17 increased 4.0% from 3Q16.
• Both occupancy and same-store occupancy at the end of 3Q17 increased 280 basis points ("bps") to 94.1%, compared to 91.3% at the end of 3Q16.
  • Solid leasing momentum continued:
  • Forty-seven leases comprising 142,508 square feet of GLA were renewed or re-leased in the third quarter, with re-leasing spreads of 8.4% on 26 comparable leases.
  • Three ground leases reset at a weighted-average increase of 33%.
  • Leases were signed with ULTA Beauty, for two locations on Oahu representing 23,800 square feet of gross leasable area ("GLA").
• Cash proceeds of $13.6 million were generated from sales in the development portfolio.
• Materials & Construction produced operating profit of $6.5 million for 3Q17, compared to $5.6 million for 3Q16, and Adjusted EBITDA1 of $9.1 million for 3Q17, compared to $8.0 million for 3Q16.
• Progress was made in transitioning the Company\'s former sugarcane lands on Maui to diversified agriculture, with farming and ranching operations now utilizing 4,500 acres and lease negotiations progressing for a variety of uses totaling roughly 15,000 additional acres.
• Positive financing moves were made to increase borrowing capacity, lower the cost of borrowing and create more financial-covenant flexibility:
  • The Company's revolving credit facility was increased by $100 million and the cost of borrowing was lowered. The Company additionally amended the terms of its revolving credit facility and private note shelf to increase flexibility under their financial covenants.
  • The Company rate locked $75 million in term financing, which included a $50 million unsecured term note at a 4.04% interest rate that matures in 2026, and a $25 million unsecured term note at a 4.16% interest rate that matures in 2028. The notes will be drawn in November and December.
• In September, the Company made a tax-advantaged, $48 million contribution ($22.5 million net cash outlay after tax savings and Special Distribution reduction) to substantially fund its qualified pension obligations.

For earnings history and earnings-related data on Alexander & Baldwin (ALEX) click here.

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