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Introduction & Market Context
Alexander & Baldwin Holdings Inc (NYSE:ALEX), a premier Hawaii-focused commercial real estate company, presented its second quarter 2025 earnings results on July 24, 2025, revealing accelerated growth and improved financial metrics. The company’s stock closed at $17.95 on the day of the presentation, up 0.56% and continuing its recovery from the 52-week low of $15.70.
Building on its strong first quarter performance, when the company surprised analysts with earnings per share of $0.29 versus an expected $0.15, Alexander & Baldwin has maintained positive momentum through the second quarter of 2025, demonstrating the resilience of its Hawaii-focused commercial real estate portfolio.
Quarterly Performance Highlights
Alexander & Baldwin reported net income of $25.1 million ($0.35 per diluted share) for Q2 2025, with funds from operations (FFO) reaching $35.2 million ($0.48 per diluted share). The company achieved same-store NOI growth of 5.3%, driven primarily by improved occupancy rates.
As shown in the following key metrics slide from the presentation:
The company’s leased occupancy stood at 95.8% as of June 30, 2025, with economic occupancy at 94.8%. Lease spreads for new and renewal leases were 6.8%, indicating strong demand for the company’s properties. Additionally, the company reported $5.8 million in annualized base rent (ABR) for signed-not-occupied (SNO) leases, including $1.9 million for improved properties, $0.7 million for ground leases, and $3.1 million for development and redevelopment projects.
Detailed Financial Analysis
The second quarter financial results demonstrate significant improvement compared to the same period in 2024, with FFO per diluted share increasing from $0.28 to $0.48. The company’s FFO related to CRE and Corporate operations was $21.2 million ($0.29 per diluted share).
The following financial results slide illustrates this year-over-year improvement:
Alexander & Baldwin has also made progress in strengthening its balance sheet. The company’s net debt to trailing twelve months consolidated adjusted EBITDA ratio improved to 3.3x, down from 3.6x in Q4 2024. As of the quarter end, the company maintained a weighted-average interest rate of 4.67%, with 95.3% of its debt at fixed rates, providing stability in the current interest rate environment.
The company’s debt structure and liquidity position are illustrated in this slide:
With total debt of $450 million, the company maintains strong liquidity of $308 million, consisting of $9 million in cash and $299 million in undrawn revolving credit. Importantly, 94% of the company’s debt is unencumbered, providing financial flexibility.
Alexander & Baldwin paid a second quarter dividend of $0.225 per share on July 9, 2025, and has declared the same dividend amount for the third quarter, payable on October 7, 2025, demonstrating confidence in its continued cash flow generation.
Strategic Initiatives
The company continues to focus on both internal and external growth opportunities. Progress on build-to-suit developments remains on track, with the Maui development expected to be completed in Q1 2026, providing a $1.0 million NOI uplift. Oahu developments are scheduled for completion in Q4 2026, with an anticipated $2.8 million NOI contribution. Together, these projects will add approximately 150,000 square feet of gross leasable area to the portfolio.
Management noted in the presentation that the transaction market is "opening up," suggesting potential external growth opportunities may be emerging. The company has also made progress in streamlining its business structure, resolving legacy liabilities within its Land Operations segment.
The company’s second quarter accomplishments are summarized in this slide:
Forward-Looking Statements
In a significant vote of confidence in its business outlook, Alexander & Baldwin has raised its full-year 2025 guidance across multiple metrics. Net income available to common shareholders per diluted share is now projected to be $0.91 to $0.96, up from the previous guidance of $0.68 to $0.74. FFO per diluted share guidance has been raised to $1.35 to $1.40, compared to the previous $1.17 to $1.23.
The company’s CRE Same-Store NOI growth guidance has also been increased to 3.4% to 3.8%, up from the previous 2.4% to 3.2%. This upward revision is particularly notable given that the year-to-date actual Same-Store NOI growth stands at 4.7%, suggesting strong performance in the first half of the year.
The revised guidance is detailed in the following slide:
The guidance revision represents a significant improvement from the outlook provided after Q1 2025, when the company had raised its FFO guidance to $1.17-$1.23 per share. The sequential improvement in guidance suggests accelerating positive momentum in the company’s operations.
Alexander & Baldwin’s focus on its Hawaii commercial real estate portfolio continues to yield results, with the company’s high occupancy rates and positive leasing spreads demonstrating the strength of its market position. With a solid balance sheet, ongoing development projects, and improved financial metrics, the company appears well-positioned to continue its growth trajectory through the remainder of 2025.
Full presentation:
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