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HONOLULU - Alexander & Baldwin, Inc. (NYSE: ALEX), a prominent commercial real estate firm in Hawai’i, has unveiled plans to expand its Komohana Industrial Park (KIP) in Kapolei, O’ahu. The company will construct two new Class A industrial buildings, which will add approximately 121,000 square feet of gross leasable area to the park.
The development project will transform a 5.7-acre site, currently occupied by a 16,000-square-foot building, into a modern distribution center and additional spec build space. The larger of the two buildings, a 91,000-square-foot structure, is pre-leased to home improvement giant Lowe’s and is designed to cater to their specific needs. The second building, comprising 30,000 square feet, offers flexibility as it could be divided into two units of 15,000 square feet each. This expansion aligns with the company’s strong operational performance, with InvestingPro data showing a healthy gross profit margin of 47% and positive revenue growth of 6.4% over the last twelve months.
Upon completion, the expansion will increase KIP’s total gross leasable area by 44%, bringing it to approximately 343,000 square feet. The project is expected to be completed in the fourth quarter of 2026.
Lance Parker, president and CEO of Alexander & Baldwin, highlighted the redevelopment as a strategic move to capitalize on under-utilized land and address the high demand for industrial space in one of the nation’s tightest markets. Jordan Brant, senior vice president of leasing, pointed to the significance of the pre-lease with Lowe’s as evidence of the company’s strong development capabilities and the robust nature of Hawai’i’s industrial and retail sectors.
Alexander & Baldwin is a real estate investment trust with a focus on Hawai’i commercial real estate, boasting around 4.0 million square feet of commercial space, including retail centers, industrial assets, office properties, and ground lease assets.
This expansion plan is part of the company’s forward-looking statements and involves risks and uncertainties that could cause actual results to differ materially from those anticipated. These statements are based on the company’s projections and assumptions about future operations and market conditions. The company maintains a solid financial position with a current ratio of 1.19, indicating sufficient liquidity to meet short-term obligations, though analysts anticipate a sales decline in the current year.
The information about this expansion is based on a press release statement. Alexander & Baldwin’s initiative to redevelop and expand KIP aligns with evolving consumer preferences for online shopping and the subsequent need for retailers to maintain high-quality industrial space for inventory and faster delivery services.
In other recent news, Alexander & Baldwin Holdings Inc. reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $0.29, significantly surpassing the forecasted $0.15. The company also raised its total funds from operations (FFO) guidance to a range of $1.17-$1.23 per share. Commercial Real Estate net operating income increased by 4.6% year-over-year, and leased occupancy rose to 95.4%. The company executed 42 leases, indicating robust leasing activity. Additionally, Alexander & Baldwin completed a notable transaction by transferring a five-acre lot at Maui Business Park into its ground lease portfolio, signing a 75-year lease with a self-storage developer. This transaction is expected to contribute to the company’s financial performance by adding nearly $0.01 to FFO in 2025. Analysts from Alliance Global Partners and Piper Sandler discussed the company’s strategic moves and expressed interest in its approach to navigating macroeconomic uncertainties. The company continues to focus on its Hawaii-focused, asset-diverse strategy while addressing challenges such as inflationary pressures on construction materials.
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