Yahoo Finanza Alexander & Baldwin Inc (ALEX) (Q1 2024) Earnings Call Transcript Highlights: Key Financial ...
Total NOI Growth: 4.4%
Same-Store NOI Growth: 4.1%
Same-Store Leased Occupancy: 95%
Same-Store Economic Occupancy: 93.3%
Net Income: $20 million
Earnings Per Share (EPS): $0.28 per diluted share
FFO: $29.2 million or $0.40 per diluted share
AFFO: $25.5 million or $0.35 per diluted share
G&A Expenses: Decreased by 17.1% to $7.2 million
Total Debt: $458 million
Total Liquidity: $470 million
Dividend: $0.2225 per share for Q1 and declared for Q2
Guidance for Same-Store NOI Growth: 1.1% to 2.1%
Guidance for FFO: $1.05 to $1.16 per share
Guidance for AFFO: $0.89 to $1.00 per share
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Clayton, in terms of the FFO from land sales. How much was that in the first quarter? And how much does that represent of the $0.05 to $0.11 guidance for the year? A: Clayton K. Y. Chun - Alexander & Baldwin, Inc. - Executive VP, Treasurer & CFO: The $0.11 for the first quarter is built into our overall revised guidance. The rest of the year is expected to be flat to negative 6, reflecting our focus on non-core land sales and ongoing discussions with potential buyers.
Q: What are the plans for the Waianae Mall space after the move-out, and will it require redevelopment? A: Kit Millan - Alexander & Baldwin, Inc. - SVP of Asset Management: The space is about 20,000 square feet. We are in discussions for a backfill with a high credit tenant and are optimistic about finalizing that deal.
Q: Can you discuss your balance between industrial and retail properties and how you view potential developments given the current economic outlook? A: Lance K. Parker - Alexander & Baldwin, Inc. - President, CEO & Director: We view all asset classes we are involved in as favorable. Our approach is opportunistic, focusing on return profiles rather than specific asset classes. We are exploring both internal growth initiatives and external investment opportunities.
Q: Regarding the land operations and the recent sale, is it correct that you expect all remaining land operations and sales to complete by the end of 2025, with no expected transactions in 2024? A: Lance K. Parker - Alexander & Baldwin, Inc. - President, CEO & Director: We had a strong Q1 with opportunistic land transactions, primarily on Maui. It's challenging to forecast timing, but we're ready to execute similar transactions as opportunities arise.
Q: Could you provide an update on the overhead expenses attached to the Land Operations following this quarter's land sale? A: Clayton K. Y. Chun - Alexander & Baldwin, Inc. - Executive VP, Treasurer & CFO: The recent land sales will eliminate approximately a few hundred thousand dollars in annualized carrying costs, contributing to our efforts to simplify and reduce overhead.
Q: What is your strategy regarding the recent notes offering and the use of swaps, particularly in relation to upcoming debt maturities? A: Clayton K. Y. Chun - Alexander & Baldwin, Inc. - Executive VP, Treasurer & CFO: We secured a $60 million private placement note and utilized a forward starting interest rate swap against our variable rate debt. This strategy, combined with our handling of upcoming debt maturities, aims to optimize our balance sheet and manage interest rate exposure.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
