Alexander & Baldwin (ALEX) Tops Q1 EPS by 3c

Alexander & Baldwin (NYSE: ALEX) reported Q1 EPS of $0.09, $0.03 better than the analyst estimate of $0.06.

Chris Benjamin, A&B president & chief executive officer stated: "Our core commercial real estate ("CRE") business continued with positive results for the first quarter of 2020, although the impacts from the COVID-19 pandemic had not yet been felt to a significant degree. Quarterly results reflect a 19.4% increase in Cash Net Operating Income ("NOI"), 3.7% Same-Store Cash NOI growth and 10.6% growth in comparable leasing spreads for the period."

"From the onset of the COVID-19 pandemic in early-March, the safety and welfare of our customers, tenants and employees has been A&B\'s highest priority. The Company implemented its business continuity plan and employees have been working remotely, except for essential service positions. Within our CRE portfolio, all of our properties remain open with enhanced safety measures, allowing essential businesses such as grocery stores, pharmacies, take-out food, hardware stores and other needs-based retailers the ability to provide goods and services to our local communities. We are also fortunate that our industrial and ground lease assets provide an additional layer of financial stability. We have been working closely with our tenants, many of whom have, of course, been severely affected by the pandemic."

"Further, we remain focused on our strategic plan to simplify our Company and generate cash to enhance our liquidity, including monetization efforts at Kukui\'ula and Maui Business Park, as well as other potential non-core asset sales. We remain focused on repositioning our Materials & Construction business for eventual monetization. While that segment was negatively impacted by weather, project delays and COVID-19 in the first quarter, we remain hopeful that recent new contract wins and the essential nature of the business, combined with cost-reduction and operational improvement initiatives, will propel the business to positive EBITDA in 2020."

"As we look ahead, we believe it is too early to foresee the full impact of the COVID-19 pandemic. As such, we are withdrawing our previously provided guidance range and our Board has decided to suspend our dividend in anticipation of reduced REIT taxable income. Throughout this period of uncertainty, we are proud of our team and are encouraged by our portfolio\'s neighborhood-center orientation, with essential grocery and pharmacy anchors, and asset diversity."

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

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