Alexander & Baldwin buys Oahu industrial property for $29.7M

Published 23/09/2024, 21:14
Alexander & Baldwin buys Oahu industrial property for $29.7M

HONOLULU - Alexander & Baldwin, Inc. (NYSE: ALEX), a Hawai'i-based commercial real estate company, has expanded its industrial holdings with the acquisition of an 81,500-square-foot food distribution facility in Pearl City, O'ahu. The property, purchased for $29.7 million, is fully leased to Hansen Distribution Group, a subsidiary of C&S Wholesale Grocers.

The strategic location of the facility offers convenient access to the Daniel K. Inouye International Airport, Honolulu Harbor, and the urban core of Honolulu. This acquisition is part of Alexander & Baldwin's ongoing strategy to grow its commercial real estate portfolio in Hawai'i, with a focus on retail, industrial, and ground lease assets.

Lance Parker, President and CEO of A&B, expressed enthusiasm for the addition, stating that the fully occupied facility under a long-term lease with an established food service provider aligns with the company's investment goals. Parker also noted the acquisition's potential to be immediately accretive to the company's Funds From Operations (FFO), reinforcing A&B's presence in the competitive O'ahu industrial market.

Alexander & Baldwin is the only publicly-traded real estate investment trust exclusively focusing on Hawai'i commercial real estate. It is also the state's largest owner of grocery-anchored shopping centers. The company's portfolio includes approximately 4.0 million square feet of commercial space, comprising 22 retail centers, 14 industrial assets, four office properties, and 142.0 acres of ground lease assets.

The information provided in this article is based on a press release statement from Alexander & Baldwin, Inc.


In other recent news, Alexander & Baldwin, a real estate investment trust, has been making significant strides in its operations. The company's Chief Investment Officer, Jeffrey W. Pauker, has announced his resignation effective October 25, 2024, a development that comes amidst various economic pressures in the real estate sector. No successor has been announced yet. In financial developments, Alexander & Baldwin has initiated a new equity offering program, aiming to sell up to $200 million worth of common stock in collaboration with several financial institutions. This arrangement also includes forward sale agreements, enabling the sale of the company's common stock at market prices.

Further, Alexander & Baldwin reported a 1.1% increase in total net operating income for the second quarter, bolstered by a significant land sale in July that added $10.5 million to the company's revenues. This led to an upward revision of the 2024 adjusted funds from operations guidance to $0.99 - $1.08 per share, as announced by the company's CFO, Clayton Chun. These developments indicate Alexander & Baldwin's commitment to operational excellence and growth, as the company explores various internal and external investment opportunities.


InvestingPro Insights


Alexander & Baldwin, Inc. (NYSE: ALEX) has demonstrated a strong financial performance in recent times, as evidenced by the data from InvestingPro. With a market capitalization of $1.42 billion and a forward-looking P/E ratio of 25.46, the company is trading at a valuation that suggests investors are optimistic about its earnings potential. This is further supported by a PEG ratio of just 0.15, indicating that ALEX's share price is quite reasonable relative to its expected earnings growth.

InvestingPro Tips highlight that Alexander & Baldwin has been successful in consistently rewarding its shareholders, having raised its dividend for three consecutive years. This commitment to shareholder returns is mirrored in a substantial dividend yield of 4.57%. Moreover, ALEX's share price is trading near its 52-week high, at 96.31% of the peak, reflecting investor confidence in the company's market position and its strategic initiatives, such as the recent acquisition in O'ahu.

For those looking for more detailed analysis, InvestingPro offers a wealth of additional tips—there are 5 more tips available on Alexander & Baldwin, which can be found at https://www.investing.com/pro/ALEX. These insights could provide investors with a deeper understanding of the company's financial health and its future prospects in the competitive Hawai'i commercial real estate market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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