Gold prices bounce off 3-week lows; demand likely longer term
HONOLULU - Alexander & Baldwin, Inc. (NYSE: ALEX), a real estate investment trust specializing in Hawai'i commercial properties, has announced an increase in its quarterly dividend. The company's Board of Directors has approved a rise from the previous $0.2225 per share to $0.225 per share for the fourth quarter of 2024. This increment marks a slight increase in shareholder returns.
The dividend is scheduled to be distributed on January 8, 2025, to all shareholders recorded by the close of business on December 20, 2024. This decision reflects the company's financial strategies and its commitment to providing value to its investors. InvestingPro analysis shows the company maintains a GOOD overall financial health score, with particularly strong cash flow metrics.
Alexander & Baldwin is recognized as Hawai'i's largest owner of grocery-anchored shopping centers. With a portfolio that encompasses approximately 4.0 million square feet of commercial space, the trust manages 21 retail centers, 14 industrial properties, four office buildings, and 142 acres of ground lease assets. Its extensive history of over 154 years has seen the company grow in tandem with Hawai'i's economy, contributing significantly to the development of various sectors including agriculture, transportation, tourism, construction, and real estate.
The company's focus remains exclusively on Hawai'i, positioning itself as a key player in the state's commercial real estate market. This dividend announcement is a factual representation of the company's current financial distributions and is based on a press release statement from Alexander & Baldwin, Inc.
In other recent news, Alexander & Baldwin reported a significant increase in their third-quarter Funds From Operations (FFO), as well as an upward adjustment to their 2024 guidance. The company's Q3 FFO rose to $28.2 million, marking a positive year-over-year change from $21.2 million in Q3 of the previous year. The company's management attributed this growth to strong commercial real estate performance and strategic land sales.
Furthermore, Alexander & Baldwin initiated a new $200 million At-the-Market (ATM) program and extended the credit facility maturity to 2028. The company also raised its 2024 guidance for same-store Net Operating Income (NOI) growth to 1.75%-2.75% and FFO to $1.27-$1.35 per share. Despite expected vacancies extending into 2025, the management expressed optimism about the company's future prospects.
In addition to these developments, Alexander & Baldwin is repositioning assets and anticipates that land operations will continue contributing to FFO. However, upcoming vacancies from three tenants in Q4 may affect NOI growth. Despite these potential challenges, the company's management is considering various financing options, including the ATM program, and is exploring a diverse pipeline of opportunities. These recent developments underscore Alexander & Baldwin's strategic approach to growth and capital management.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.