Exhibit 99.1

 

 

 

 

Alexander & Baldwin, Inc.

Table of Contents

 

Section		Page
Company Profile		3
Glossary of Terms		4
Consolidated Balance Sheets		5
Consolidated Statements of Operations		6
Consolidated Condensed Statements of Cash Flows		8
Notes Payable & Long-Term Debt		9
Components of NAV		10
Property Report - Hawaii		12
Property Report - U.S. Mainland		14
Net Operating Income (NOI)		15
Percent Occupancy		16
Commercial Real Estate Transactional Activity (2015-2016)		17
Top Ten Tenants (In-Service Properties) Based Upon ABR		18
Lease Expiration Schedule		19
New & Renewal Lease Summary		20
Commercial Portfolio Repositioning, Redevelopment & Development Summary		21
Active Development Projects		22
Landholdings as of December 31, 2016		23
Materials & Construction Select Data		24
Statement on Management’s Use of Non-GAAP Financial Measures		26
Reconciliation of Consolidated Net Income (Loss) to EBITDA		27
Reconciliation of Materials & Construction Operating Profit to EBITDA		28
Reconciliation of Commercial Real Estate Operating Profit to NOI, Same-Store NOI, and Hawaii Same-Store Retail NOI		29

 

Forward-Looking Statements

 

Statements in this Supplement that are not historical facts, including potential benefits, consequences and impact of a potential REIT conversion, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. These forward-looking statements include, but are not limited to, the Company’s plans regarding (i) the possibility of converting to a REIT and the timing thereof, (ii) the potential advantages, benefits and impact of, and opportunities created by, converting certain assets into a REIT. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including prevailing market conditions.

 

These forward-looking statements are not guarantees of future performance. The information contained in this Supplement is unaudited and should be read in conjunction with Alexander & Baldwin, Inc.’s most recent Form 10-K and other filings with the SEC, which identify important factors that could affect the forward-looking statements in this Supplement. We do not undertake any obligation to update the Company’s forward-looking statements.

 

Basis of Presentation

 

The information contained in this Supplement does not purport to disclose all items required by accounting principles generally accepted in the United States of America (GAAP).

 

 

Alexander & Baldwin, Inc.

Company Profile

 

Alexander & Baldwin, Inc. is a 146-year-old Hawaii company focused on creating value from its tremendous real estate assets.

 

Assets	·	2.9M square feet of Hawaii commercial real estate, excluding ground leases, primarily Oahu grocery-anchored strip retail properties
	·	1,500+ units in active development for sale on major islands across the state
	·	Over 87,000 acres of land in Hawaii, making A&B the state’s fourth largest landowner
	·	50%+ market share of Hawaii’s materials and paving industry

 

Hawaii-focused Strategy	·	Increase commercial real estate portfolio value and cash flow
	·	Accelerate monetization of development pipeline
	·	Leverage strong Materials & Construction segment positioning
	·	Continue disciplined and prudent financial management

 

Hawaii Economic Highlights

- Visitor industry sets a fifth straight record year in arrivals and expenditures

- Outlook for economic growth remains positive

(Percentage change, except unemployment rate)		2015				2016				2017F				2018F				2019F
Real gross domestic product			2.3				2.0				1.8				1.7				1.6
Real personal income			3.8				2.7				2.4				2.3				2.5
Visitor expenditures			0.9				4.2				2.9				4.0				3.7
Visitor arrivals			4.3				3.0				1.5				1.7				1.6
Unemployment rate			3.6				3.2				3.4				3.5				3.6

F=Forecast

Source: Hawaii State Department of Business, Economic Development & Tourism (February 6, 2017); No endorsement implied.

 

Oahu Commercial Real Estate Trends

Oahu commercial markets fundamentals continue to strengthen

		Average Asking Rent PSF/Mo												% Change from Same Quarter in the Prior Year
		Retail				Industrial				Office				Retail				Industrial				Office
4Q2012		$	3.24			$	0.96			$	1.57				(5.5	)			4.3				—
4Q2013		$	3.35			$	0.99			$	1.55				3.4				3.1				(1.3	)
4Q2014		$	3.64			$	1.10			$	1.64				8.7				11.1				5.8
4Q2015		$	3.84			$	1.13			$	1.67				5.5				2.7				1.8
4Q2016		$	3.92			$	1.21			$	1.69				2.1				7.1				1.2
		Vacancy Rate												Percentage Point Change from Same Quarter in the Prior Year
		Retail				Industrial				Office				Retail				Industrial				Office
4Q2012			4.6				3.8				13.0				0.4				(1.0	)			—
4Q2013			4.2				2.7				12.2				(0.4	)			(1.1	)			(0.8	)
4Q2014			4.1				2.1				13.2				0.1				0.6				(1.0	)
4Q2015			5.1				1.7				12.7				(1.0	)			0.4				0.5
4Q2016			8.4	*			1.6				12.7				(3.3	)*			0.1				—

*Retail vacancy affected by Ala Moana GLA expansion, and new GLA from International Marketplace and Ka Makana Ali’i

Source: Colliers International Hawaii; No endorsement implied.

 

TRADING HIGHLIGHTS

 

ALEX	NYSE listed ticker symbol
2.1B	Market capitalization (as of February 2, 2017)
170K	3-month average trading volume

 

 

Alexander & Baldwin, Inc.

Glossary of Terms

 

Annualized Base Rent (ABR)		The current month’s contractual base rent multiplied by 12.
Backlog		Backlog represents the amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded or government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is believed to be perfunctory.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)		EBITDA is calculated for the Materials & Construction segment by adjusting consolidated segment operating profit (which excludes interest and tax expenses), as applicable, by adding back depreciation and amortization and subtracting income attributable to non-controlling interests. EBITDA is a Non-GAAP measure used by the Company in evaluating the operating performance on a consistent and comparable basis from period to period. The Company provides this information to investors as an additional means of evaluating the performance of the segment’s ongoing core operations and should be not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.   EBITDA is also presented for the Company on a consolidated basis. EBITDA is calculated by adjusting the Company’s consolidated net income (loss) to exclude the impact of interest expense, income taxes, and depreciation and amortization. The Company provides this information to investors as an additional means of evaluating the performance of the Company’s operations and should not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
GLA		Gross leasable area.
GAAP		Generally accepted accounting principles in the United States of America.
Occupancy		The percentage of square footage leased to gross leasable space.
Net Operating Income		Net operating income (NOI) is a Non-GAAP measure derived from commercial real estate revenues (determined in accordance with GAAP, less straight-line rental adjustments) minus property operating expenses (determined in accordance with GAAP). NOI does not have any standardized meaning prescribed by GAAP, and therefore, may differ from definitions of NOI used by other companies. NOI should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s financial performance, or as an alternative to cash flow from operating activities as a measure of the Company’s liquidity. NOI is commonly used as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. NOI excludes general, administrative and other expenses, straight-line rental adjustments, interest income, interest expense, depreciation and amortization expense, and gains on sales of interests in real estate. The Company believes that the Commercial Real Estate segment’s operating profit is the most directly comparable GAAP measurement to NOI.
Same-store		Properties that were owned throughout the entire duration of both periods under comparison, including stabilized properties.
Stabilized		A commercial property is considered stabilized when it either reaches 80% economic occupancy or 12 months following acquisition or construction completion.
Straight-line rent		GAAP requirement to average tenant rents over the life of the lease regardless of actual cash collected.
Year built		Year of most recent repositioning/redevelopment or year built if no repositioning/redevelopment has occurred.

 

 

Alexander & Baldwin, Inc.

Consolidated Balance Sheets

($ in millions)

 

		December 31,
		2016				2015
ASSETS
Current Assets
Cash and cash equivalents		$	2.2			$	1.3
Accounts receivable, less allowances of $1.0 as of December 31, 2016 and $1.7 as of December 31, 2015			32.1				38.6
Contracts retention			13.1				11.5
Costs and estimated earnings in excess of billings on uncompleted contracts			16.4				16.3
Inventories			43.3				55.9
Real estate held for sale			1.0				—
Income tax receivable			10.6				14.0
Prepaid expenses and other assets			19.6				14.9
Total current assets			138.3				152.5
Investments in Affiliates			390.8				416.4
Real Estate Developments			179.5				183.5
Property – Net			1,231.6				1,269.4
Intangible assets - Net			53.8				54.4
Goodwill			102.3				102.3
Other assets			60.0				63.8
Total Assets		$	2,156.3				2,242.3
LIABILITIES AND EQUITY
Current Liabilities:
Notes payable and current portion of long-term debt		$	42.4			$	90.4
Accounts payable			35.2				35.5
Billings in excess of cost and estimated earnings on uncompleted contracts			3.5				2.6
Accrued interest			6.3				5.5
Deferred revenue			17.6				0.1
Indemnity holdback related to Grace acquisition			9.3				9.3
HC&S cessation-related liabilities			19.1				6.4
Accrued and other liabilities			31.7				34.9
Total current liabilities			165.1				184.7
Long-term Liabilities:
Long-term debt			472.7				496.6
Deferred income taxes			182.0				202.1
Accrued pension and post-retirement benefits			64.8				59.7
Other non-current liabilities			47.7				60.5
Total long-term liabilities			767.2				818.9
Total Liabilities			932.3				1,003.6
Commitments and Contingencies
Redeemable Noncontrolling Interest			10.8				11.6
Equity
Common stock - no par value; authorized, 150 million shares; outstanding, 49.0 million and 48.9 million shares at December 31, 2016 and 2015, respectively			1,157.3				1,151.7
Accumulated other comprehensive loss			(43.2	)			(45.3	)
Retained earnings			95.2				117.2
Total A&B shareholders’ equity			1,209.3				1,223.6
Non-controlling interest			3.9				3.5
Total liabilities and equity		$	2,156.3			$	2,242.3

 

 

Alexander & Baldwin, Inc.

Consolidated Statements of Operations

($ in millions, except per-share amounts)

 

		Three Months Ended December 31,								Year Ended December 31,
		2016				2015				2016				2015
Operating Revenue:
Commercial real estate		$	32.7			$	33.2			$	134.7			$	133.6
Land operations			32.3				16.4				61.9				120.2
Materials and construction			46.2				53.7				190.9				219.0
Total operating revenue			111.2				103.3				387.5				472.8
Operating Costs and Expenses:
Cost of commercial real estate			19.0				19.3				79.0				80.4
Cost of land operations			17.1				5.3				35.0				71.1
Cost of materials and construction contracts			39.6				41.6				154.5				175.7
Selling, general and administrative			13.9				14.0				56.2				55.3
REIT evaluation costs			5.7				—				9.5				—
Impairment of real estate assets			11.7				—				11.7				—
Total operating costs and expenses			107.0				80.2				345.9				382.5
Operating Income			4.2				23.1				41.6				90.3
Other Income and (Expense):
Income related to joint ventures			15.7				6.1				19.2				36.8
Gain (loss) on the sale of improved property, net			—				(3.6	)			8.1				(1.8	)
Reduction in solar investments, net			—				(0.9	)			(9.8	)			(2.6	)
Interest income and other			0.9				0.4				2.5				1.2
Interest expense			(6.2	)			(6.6	)			(26.3	)			(26.8	)
Other income (expense)			10.4				(4.6	)			(6.3	)			6.8
Income From Continuing Operations Before Income Taxes			14.6				18.5				35.3				97.1
Income tax expense			1.0				7.0				2.6				36.3
Income From Continuing Operations			13.6				11.5				32.7				60.8
Income (loss) from discontinued operations, net of income taxes			(13.0	)			(23.4	)			(41.1	)			(29.7	)
Net Income (Loss)		$	0.6			$	(11.9	)		$	(8.4	)		$	31.1
Income attributable to noncontrolling interest			(0.7	)			(0.3	)			(1.8	)			(1.5	)
Net Income (Loss) Attributable to A&B		$	(0.1	)		$	(12.2	)		$	(10.2	)		$	29.6
Basic Earnings (Loss) per Share of Common Stock:
Continuing operations available to A&B shareholders		$	0.27			$	0.19			$	0.66			$	1.15
Discontinued operations available to A&B shareholders			(0.26	)			(0.48	)			(0.84	)			(0.61	)
Net income (loss) available to A&B shareholders		$	0.01			$	(0.29	)		$	(0.18	)		$	0.54
Diluted Earnings (Loss) per Share of Common Stock:
Continuing operations available to A&B shareholders		$	0.27			$	0.19			$	0.65			$	1.14
Discontinued operations available to A&B shareholders			(0.26	)			(0.48	)			(0.83	)			(0.60	)
Net income (loss) available to A&B shareholders		$	0.01			$	(0.29	)		$	(0.18	)		$	0.54
Weighted Average Number of Shares Outstanding:
Basic			49.0				48.9				49.0				48.9
Diluted			49.4				48.9				49.4				49.3

 

 

Alexander & Baldwin, Inc.

Consolidated Statements of Operations (Continued)

($ in millions)

 

Supplemental Information
EBITDA		$	41.4			$	(1.3	)		$	114.4			$	130.1
Operating Profit		$	32.2			$	33.2			$	84.7			$	145.8

 

Note: See Appendix for a statement about management’s use of Non-GAAP financial measures and required reconciliations

 

 

Alexander & Baldwin, Inc.

Consolidated Condensed Statements of Cash Flows

($ in millions)

 

		Year Ended December 31,
		2016				2015
Cash Flows from in Operating Activities:		$	111.2			$	129.1
Cash Flows from Investing Activities:
Capital expenditures for property, plant and equipment			(108.6	)			(43.4	)
Capital expenditures related to forward 1031 commercial property transactions			(7.5	)			(1.3	)
Proceeds from disposal of property and other assets			19.6				8.1
Proceeds from disposals related to 1031 commercial property transactions			69.2				40.0
Payments for purchases of investments in affiliates and other investments			(47.2	)			(29.4	)
Proceeds from investments in affiliates and preferred investment			41.3				44.4
Change in restricted cash associated with 1031 transactions			7.6				(17.4	)
Net cash provided by (used in) investing operations			(25.6	)			1.0
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt			272.0				132.0
Payments of long-term debt and deferred financing costs			(334.3	)			(248.1	)
Payments on line-of-credit agreement, net			(9.9	)			(3.0	)
Distribution to noncontrolling interests			(1.4	)			(1.1	)
Dividends paid			(12.3	)			(10.3	)
Proceeds from issuance (repurchase) of capital stock and other, net			1.2				(1.1	)
Net cash provided by financing activities			(84.7	)			(131.6	)
Cash and Cash Equivalents:
Net increase (decrease) for the period			0.9				(1.5	)
Balance, beginning of period			1.3				2.8
Balance, end of period		$	2.2			$	1.3

 

 

Alexander & Baldwin, Inc.

Notes Payable & Long-Term Debt

As of December 31, 2016

($ in millions)

 

																		Principal payments
Debt:		Stated rate %				Weighted average interest rate %				Maturity date				Weighted average maturity date (years)				2017				2018				2019				2020				2021				Thereafter				Total principal				Unamortized deferred finance cost/ (discount) premium				Total
Secured Debt:
Pearl Highlands			4.15				4.15				2024				7.4			$	1.7			$	1.8			$	1.9			$	1.9			$	2.0			$	79.5			$	88.8			$	1.2			$	90.0
Midstate Hayes			6.38				6.38				2017				1.0				8.2				—				—				—				—				—				8.2				—				8.2
KTC III			(a)				5.95				2021				4.7				0.3				0.3				0.4				0.4				9.8				—				11.2				(0.4	)			10.8
GLP Asphalt Plant			(b)				5.98				2021				2.7				1.3				1.3				1.5				1.6				0.4				—				6.1				(0.4	)			5.7
Manoa Marketplace			(c)				3.14				2029				11.6				—				—				0.5				1.6				1.7				56.2				60.0				(0.3	)			59.7
Term loan secured by letter of credit			(d)				2.83				2019				5.0				—				—				—				—				9.4				—				9.4				—				9.4
Subtotal															8.0			$	11.5			$	3.4			$	4.3			$	5.5			$	23.3			$	135.7			$	183.7			$	0.1			$	183.8
Unsecured Debt:
Prudential Series A			5.53				5.53				2024				6.5			$	—			$	—			$	—			$	—			$	7.1			$	21.4			$	28.5			$	—			$	28.5
Prudential Series B			5.55				5.55				2026				7.8				—				—				—				—				1.0				45.0				46.0				—				46.0
Prudential Series C			5.56				5.56				2026				6.5				—				1.0				1.0				1.0				9.0				13.0				25.0				—				25.0
Prudential Series D			6.90				6.90				2020				2.5				16.3				16.3				16.2				16.2				—				—				65.0				—				65.0
Prudential Series E			3.90				3.90				2024				4.4				5.6				9.8				9.8				9.0				9.5				24.4				68.1				—				68.1
Prudential Series F			4.35				4.35				2026				7.2				—				—				—				2.4				4.5				15.1				22.0				—				22.0
Prudential Series G			3.88				3.88				2027				6.0				—				7.5				7.5				5.4				1.5				28.1				50.0				(0.9	)			49.1
Unsecured term note #1			3.31				3.31				2018				1.3				1.9				0.9				—				—				—				—				2.8				—				2.8
Unsecured term note #2			2.00				2.00				2018				1.1				0.7				0.1				—				—				—				—				0.8				—				0.8
Unsecured term note #3			5.19				5.19				2019				2.0				2.0				2.1				2.4				—				—				—				6.5				—				6.5
Unsecured term note #4			1.85				1.85				2017				1.0				2.5				—				—				—				—				—				2.5				0.1				2.6
Swingline			3.06				3.06				2020				1.0				1.9				—				—				—				—				—				1.9				—				1.9
Revolving credit line			(e)				2.04				2020				4.0				—				—				—				13.0				—				—				13.0				—				13.0
Wells Fargo Revolver			1.93				1.93				2016				—				—				—				—				—				—				—				—				—				—
Subtotal															5.1			$	30.9			$	37.7			$	36.9			$	47.0			$	32.6			$	147.0			$	332.1			$	(0.8	)		$	331.3
Total															6.2			$	42.4			$	41.1			$	41.2			$	52.5			$	55.9			$	282.7			$	515.8			$	(0.7	)		$	515.1

 

(a) Loan has a stated interest rate of LIBOR plus 1.5%, but is swapped through maturity to a 5.95% fixed rate. (b) Loan has a stated interest rate of LIBOR plus 1.0%, but is swapped through maturity to a 5.98% fixed rate. (c) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.135% fixed rate. (d) Loan has an effective interest rate of 2.82% for 2016. (e) LIBOR plus 1.75%, based on pricing grid.		Liquidity:
		Cash and cash equivalents		$	2.2
		Restricted cash (1031)		$	9.9
		Available under unsecured credit facility		$	322.4
		Ratios:
		Principal debt to total enterprise value			19.0	%
		Principal debt to total assets			23.9	%
		Principal debt to EBITDA			4.5	x
		Principal debt to total debt and equity			29.8	%

 

 

Alexander & Baldwin, Inc.

Components of NAV

($ in millions)

 

Commercial Real Estate -						Commercial Real Estate -
Company Information						Hawaii Market Information
Income producing assets		NOI TTM Ended December 31, 2016				Hawaii market cap rate information, Income producing assets		Range of Market Cap Rates
Hawaii retail		$	46.5			Hawaii retail		4.0% - 6.0%
Hawaii industrial			11.6			Hawaii industrial		5.0% - 7.0%
Hawaii office			3.9			Hawaii office		6.0% - 8.0%
Hawaii ground leases			11.3			Hawaii ground leases		2.0% - 5.0%
Mainland retail			2.2
Mainland industrial			4.6
Mainland office			6.3
Total		$	86.4

 

Materials & Construction -																						Materials & Construction -
Company Information																						Market Information
Historical EBITDA		1Q				2Q				3Q				4Q				Total				Materials and Construction peers:		Ticker
2016		$	10.4			$	7.8			$	8.0			$	7.0			$	33.2			Cementos Argos S.A.			CMT
2015		$	9.5			$	9.7			$	10.2			$	11.6			$	41.0			CEMEX S.A.B. de C.V.			CX
2014		$	7.2			$	11.4			$	9.0			$	10.4			$	38.0			CRH plc			CRH
2013			(a)				(a)				(a)			$	6.8			$	6.8			HeidelbergCement AG			HDELY
																						Martin Marietta Materials, Inc.			MLM
																						Monarch Cement Co.			MCEM
Development Sales - Company Information																						Summit Materials Inc.			SUM
			Book Value as of December 31, 2016																			Vulcan Materials Company			VMC
Key Active Development Projects																			(b)			Specialty Construction Companies:
Residential units																		$	47.0			Colas SA			RE.PA
Lot sales																		$	384.0			Granite Construction Inc.			GVA
Other Development Projects																		$	106.0			Great Lakes Dredge & Dock Corp.			GLDD
Total																		$	537.0			Orion Group Holdings, Inc.			ORN
																						Sterling Construction Co. Inc.			STRL
																						Tutor Perini Corporation			TPC

 

(a) Segment was formed on October 1, 2013 with the acquisition of Grace Pacific.

(b) The book value of active development projects includes land stated at its acquisition value. In the case of development projects on A&B’s historical landholdings, such as Kamalani and Maui Business Park, the value of land would be approximately $150 per acre.

 

See Appendix for a statement about management’s use on non-GAAP financial measures and a reconciliation of Materials & Construction operating profit to segment EBITDA.

 

 

Alexander & Baldwin, Inc.

Components of NAV (Continued)

($ in millions, except Nominal Sales Data)

 

Landholdings - Company Information
						A&B Land Sales Data - Maui & Kauai 2012-2016
Landholdings not valued elsewhere		Acres				Acres Sold				Average				High				Low
Urban land, not in active development/use			384				66			$	1,813,000			$	4,346,200			$	1,647,100
Agriculture in urban entitlement process			617
Agriculture			54,914				2,107			$	28,100			$	151,600			$	13,750
Conservation & preservation (c)			29,803
Total			85,718
Other Company Information (in millions)
Total carrying value of debt at December 31, 2016																		$	515.1
Shares outstanding at December 31, 2016																			49.0

 

(c) Conservation land is generally utilized in the collection of water, which benefits the agricultural land, and therefore, generally these lands should not be separately valued.

 

 

Alexander & Baldwin, Inc.

Property Report - Hawaii

 

		Property				Island		Year built / renovated		GLA at 12/31/16 (sq. ft.)				Leased %				Annualized Base Rent (ABR) ($ in 000s)				ABR per leased sq. ft.				2016 NOI ($ in 000s)				2016 % NOI to HI portfolio NOI				Total Principal Debt ($ in 000s)
														(a)																(g)
		Retail
1		Pearl Highlands Center				Oahu		1992-1994			415,200				96			$	9,478			$	24.11			$	9,900				13.5			$	90,034
2		Kailua Retail				Oahu		1947-2014			316,400				97				9,186				29.96				9,590				13.1				10,787
3		Waianae Mall				Oahu		1975			170,300				86				2,701				18.39				2,190				3.0				—
4		Manoa Marketplace				Oahu		1977			139,300				98				4,492				33.79				4,520				6.2				60,000
5		Kaneohe Bay Shopping Center		(b)		Oahu		1971			124,800				100				2,872				22.90				2,440				3.3				—
6		Waipio Shopping Center				Oahu		1986, 2004			113,800				98				2,901				26.12				3,350				4.6				—
7		Aikahi Park Shopping Center				Oahu		1971			98,000				82				1,313				16.50				2,870				3.9				—
8		The Shops at Kukui’ula				Kauai		2009			89,000				96				3,828				46.08				3,580				4.9				—
9		Lanihau Marketplace				Hawaii		1987			88,300				99				1,843				20.87				2,020				2.8				—
10		Kunia Shopping Center				Oahu		2004			60,600				80				1,769				37.98				1,920				2.6				—
11		Lahaina Square				Maui		1973			50,200				76				665				17.43				510				0.7				—
12		Kahului Shopping Center				Maui		1951			49,900				90				621				15.89				510				0.7				—
13		Napili Plaza				Maui		1991			45,700				89				1,117				27.46				1,130				1.5				—
14		Gateway at Mililani Mauka				Oahu		2008, 2013			34,900				92				1,678				51.21				1,510				2.1				—
15		Port Allen Marina Center				Kauai		2002			23,600				88				507				23.39				460				0.6				—
		Subtotal – Retail									1,820,000				93			$	44,971			$	26.67			$	46,500				63.5			$	160,821
		Industrial
16		Komohana Industrial Park		(c)		Oahu		1990			238,300				99			$	2,552			$	11.50			$	4,240				5.8			$	—
17		Kaka’ako Commerce Center				Oahu		1969			206,000				83				2,255				12.48				2,020				2.8				—
18		Waipio Industrial				Oahu		1988-1989			158,400				100				2,308				14.65				2,310				3.1				—
19		P&L Warehouse				Maui		1970			104,100				100				1,324				12.71				1,320				1.8				—
20		Kailua Industrial/Other				Oahu		1951-1974			68,800				96				847				13.27				680				0.9				—
21		Port Allen				Kauai		1983,1993			63,800				100				645				10.11				650				0.9				—
22		Harbor Industrial				Maui		1930			53,400				87				104				10.47				380				0.5				—
		Subtotal – Industrial									892,800				95			$	10,035			$	12.51			$	11,600				15.8			$	—
		Office
23		Kahului Office Building				Maui		1974			59,600				84			$	1,400			$	27.50			$	1,290				1.8			$	—
24		Gateway at Mililani Mauka South		(d)		Oahu		1992, 2006			37,100				97				1,419				41.14				1,060				1.4				—
25		Kahului Office Center				Maui		1991			33,400				88				769				26.06				760				1.0				—
26		Stangenwald Building				Oahu		1901, 1980			27,100				89				447				18.62				430				0.6				—
27		Judd Building				Oahu		1898, 1979			20,200				86				316				18.09				180				0.2				—
28		Maui Clinic Building		(e)		Maui		1958			16,600				31				119				25.60				(40	)			—				—
29		Lono Center				Maui		1973			13,700				87				319				25.38				210				0.3				—
		Subtotal – Office									207,700				83			$	4,789			$	27.59			$	3,890				5.3			$	—
		Subtotal – Excluding Ground Leases									2,920,500				93			$	59,795			$	22.47			$	61,990				84.6			$	160,821
		Ground Leases
30		Kailua				Oahu		19 acres			—				—			$	—			$	—			$	3,460				4.7			$	—
31		Other Oahu				Oahu		23 acres			—				—				—				—				4,840				6.6				—
32		Neighbor Island		(f)		Neighbor Island		74 acres			—				—				—				—				2,960				4.1				—
		Subtotal - Ground Leases						116 acres			—				—			$	—			$	—			$	11,260				15.4			$	—
32		Total Hawaii									2,920,500				93			$	59,795			$	22.47			$	73,250				100.0			$	160,821

 

 

Alexander & Baldwin, Inc.

Property Report - Hawaii (Continued)

 

(a)	Represents the average percentage of space leased during the period referenced or A&B’s ownership period, whichever is shorter.
(b)	A&B owns the leasehold improvements of this center and does not own the fee interest.
(c)	Includes ground lease income.
(d)	An 18,415-square-foot expansion was completed and added to the commercial portfolio in June 2016.
(e)	Negative NOI and low occupancy relates to property repositioning.
(f)	Includes 64 ground leased urban acres.
(g)	See Appendix for a statement about management’s use of non-GAAP financial measures and required reconciliations.

 

 

Alexander & Baldwin, Inc.

Property Report - U.S. Mainland (ML)

 

		Property		City/State		Year built / renovated		GLA at 12/31/16 (sq. ft.)				Leased % (a)				Annualized Base Rent (ABR) ($ in 000s)				ABR per leased sq. ft.				2016 NOI (b) ($ in 000s)				2016 % NOI to ML portfolio NOI				Total Principal debt ($ in 000s)
		Retail:
1		Little Cottonwood Center		Sandy, UT		1998, 2008			141,500				93			$	1,514			$	11.27			$	1,332				12.5	%		$	—
2		Royal MacArthur Center		Dallas, TX		2006			44,900				95				941				23.28				884				8.3	%			—
		Subtotal – Retail							186,400				94			$	2,455			$	14.05			$	2,216				20.8	%		$	—
		Industrial:
3		Midstate 99 Distribution Center		Visalia, CA		2002, 2008			790,200				94			$	2,795			$	4.21			$	2,813				26.4	%		$	8,212
4		Sparks Business Center		Sparks, NV		1996-1998			396,100				97				1,917				5.03				1,787				16.8	%			—
		Subtotal – Industrial							1,186,300				95			$	4,712			$	4.51			$	4,600				43.2	%		$	8,212
		Office:
5		1800 and 1820 Preston Park		Plano, TX		1997,1998			198,800				88			$	3,085			$	18.16			$	1,749				16.4	%		$	—
6		Concorde Commerce Center		Phoenix, AZ		1998			138,700				91				2,579				20.42				1,593				14.9	%			—
7		Deer Valley Financial Center		Phoenix, AZ		2001			126,600				81				1,566				16.87				503				4.7	%			—
		Subtotal – Office							464,100				90			$	7,230			$	18.59			$	3,845				36.0	%		$	—
		Subtotal - Mainland before dispositions							1,836,800				93			$	14,397			$	8.95			$	10,661				100.0	%		$	8,212
		Dispositions																						$	2,468
		Total Mainland							1,836,800				93			$	14,397			$	8.95			$	13,129				100.0	%		$	8,212
		Total Hawaii and Mainland
		Total Mainland							1,836,800				93			$	14,397			$	8.95			$	13,129				100.0	%		$	8,212
		Total Hawaii							2,920,500				93			$	59,795			$	22.47			$	73,250				100.0	%		$	160,821
		Total Portfolio							4,757,300				93			$	74,192			$	17.37			$	86,379				100.0	%		$	169,033

 

(a) Represents the average percentage of space leased during the period referenced or A&B’s ownership period, whichever is shorter.

(b) See Appendix for a statement about management’s use of non-GAAP financial measures and required reconciliations.

 

 

Alexander & Baldwin, Inc.

Net Operating Income (NOI)

($ in millions, unaudited)

 

				4Q16												4Q15												% Change
				Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail		(a)		$	11.2			$	0.6			$	11.8			$	9.5			$	0.6			$	10.1				17.9	%			—	%			16.8	%
Industrial					3.0				1.0				4.0				2.9				1.1				4.0				3.4	%			(9.1	)%			—	%
Office					1.1				1.0				2.1				0.8				3.0				3.8				37.5	%			(66.7	)%			(44.7	)%
Ground					2.8				—				2.8				3.3				—				3.3				(15.2	)%			—	%			(15.2	)%
Total				$	18.1			$	2.6			$	20.7			$	16.5			$	4.7			$	21.2				9.7	%			(44.7	)%			(2.4	)%
				Year ended December 31, 2016												Year ended December 31, 2015												% Change
				Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail		(a)		$	46.5			$	2.2			$	48.7			$	38.7			$	2.5			$	41.2				20.2	%			(12.0	)%			18.2	%
Industrial					11.6				4.6				16.2				11.3				4.7				16.0				2.7	%			(2.1	)%			1.3	%
Office					3.9				6.3				10.2				3.7				10.5				14.2				5.4	%			(40.0	)%			(28.2	)%
Ground					11.3				—				11.3				12.6				—				12.6				(10.3	)%			—	%			(10.3	)%
Total				$	73.3			$	13.1			$	86.4			$	66.3			$	17.7			$	84.0				10.6	%			(26.0	)%			2.9	%

 

Same Store NOI (b)

 

				4Q16												4Q15												% Change
				Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail		(c)		$	10.1			$	0.6			$	10.7			$	9.5			$	0.6			$	10.1				6.3	%			—	%			5.9	%
Industrial					2.8				1.0				3.8				2.8				1.1				3.9				—	%			(9.1	)%			(2.6	)%
Office					0.7				1.1				1.8				0.7				1.5				2.2				—	%			(26.7	)%			(18.2	)%
Ground					2.8				—				2.8				3.3				—				3.3				(15.2	)%			—	%			(15.2	)%
Total				$	16.4			$	2.7			$	19.1			$	16.3			$	3.2			$	19.5				0.6	%			(15.6	)%			(2.1	)%
				Year ended December 31, 2016												Year ended December 31, 2015												% Change
				Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail				$	37.6			$	2.2			$	39.8			$	35.6			$	2.5			$	38.1				5.6	%			(12.0	)%			4.5	%
Industrial					11.6				4.6				16.2				11.3				4.6				15.9				2.7	%			—	%			1.9	%
Office					2.8				3.8				6.6				3.0				4.4				7.4				(6.7	)%			(13.6	)%			(10.8	)%
Ground		(d)			12.6				—				12.6				13.2				—				13.2				(4.5	)%			—	%			(4.5	)%
Total				$	64.6			$	10.6			$	75.2			$	63.1			$	11.5			$	74.6				2.4	%			(7.8	)%			0.8	%

 

(a) For purposes of calculating fourth quarter 2016 NOI and the twelve months ended December 31, 2016, NOI from Aikahi Park Shopping Center (APSC), tenant improvements and ground lease NOI were included in Hawaii retail. Ground lease NOI for APSC in the fourth quarter of 2015 and twelve months ended December 31, 2015 was included in Hawaii ground leases through April 2015 and in Hawaii retail as of May 2015.

(b) Full year 2016 Same Store NOI was 0.8% higher than prior year for the overall portfolio and 2.4% for the Hawaii portfolio. Retroactive rent for Kaiser and Aikahi Park, as well as the IBM termination payment in 2015 offset Oahu retail revenue increases and revenue increases at the Shops at Kukui’ula.

(c) Ground lease NOI from APSC was included in the calculation of the fourth quarter 2016 and 2015 same-store NOI in Hawaii retail.

(d) Ground lease NOI from APSC was included in the calculation of the twelve months ended December 31, 2016 and 2015 same-store NOI in Hawaii ground leases.

Note: See Appendix for a statement about management’s use of non-GAAP financial measures and required reconciliations.

 

 

Alexander & Baldwin, Inc.

Percent Occupancy

 

		4Q16												4Q15												% Change
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail			93				95				93				93				93				93				—				2				—
Industrial			96				90				93				96				99				98				—				(9	)			(5	)
Office			85				90				88				83				89				88				2				1				—
Total			93				91				92				94				94				94				(1	)			(3	)			(2	)
		Year ended December 31, 2016												Year ended December 31, 2015												% Change
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail			93				94				93				94				93				94				(1	)			1				(1	)
Industrial			95				95				95				95				99				97				—				(4	)			(2	)
Office			83				90				88				83				91				90				—				(1	)			(2	)
Total			93				93				93				93				95				94				—				(2	)			(1	)

 

Same Store Percent Occupancy

 

		4Q16												4Q15												% Change
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail			93				95				93				93				93				93				—				2				—
Industrial			96				90				93				96				99				98				—				(9	)			(5	)
Office			82				90				88				82				82				82				—				8				6
Total			93				91				92				94				94				94				(1	)			(3	)			(2	)
		Year ended December 31, 2016												Year ended December 31, 2015												% Change
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Hawaii				Mainland				Total
Retail			94				94				94				94				93				94				—				1				—
Industrial			95				95				95				95				99				97				—				(4	)			(2	)
Office			81				87				85				81				86				84				—				1				1
Total			93				93				93				93				95				94				—				(2	)			(1	)

 

 

Alexander & Baldwin, Inc.

Commercial Real Estate Transactional Activity (2015-2016)

 

Property disposed in 2016		Disposition date (month/year)		Disposition price (in millions)				Gross leasable area (sq. ft.)				Leased % at disposition
Ninigret Office Park		6/16		$	30.4				185,500				100
Gateway Oaks		6/16			8.0				59,700				92
Prospect Park		6/16			22.3				163,300				100
Total				$	60.7				408,500
Property acquired in 2016		Acquisition date (month/year)		Acquisition price (in millions)				Gross leasable area (sq. ft.)				Leased % at acquisition
2927 East Manoa Road (Ground Lease)		12/16		$	2.8				N/A				N/A
Manoa Marketplace		1/16			82.4				139,300				99
				$	85.2				139,300
Property disposed in 2015		Disposition date (month/year)		Disposition price (in millions)				Gross leasable area (sq. ft.)				Leased % at disposition
Union Bank		12/15		$	10.0				84,000				53
San Pedro Plaza		5/15			16.7				171,900				69
Wilshire Shopping Center		3/15			4.3				46,500				72
Total				$	31.0				302,400
Property acquired in 2015		Acquisition date (month/year)		Acquisition price (in millions)				Gross leasable area (sq. ft.)				Leased % at acquisition
Aikahi Park Shopping Center - Improved Property(a)		5/15		$	1.6				98,000				86

 

(a) On May 1, 2015, the Company acquired the leasehold improvements of the Aikahi Park Shopping Center in Kailua. The company has owned the ground lease under the improved property since its initial acquisition of the Kailua Town Portfolio in December 2013.

 

 

Alexander & Baldwin, Inc.

Top Ten Tenants (In-Service Properties) Based Upon ABR

As of December 31, 2016

 

Tenant		ABR ($ in 000s)				% of ABR				GLA (sq. ft.)				% of total GLA
Sam’s Club		$	3,307.9				4.5	%			180,908				3.8	%
CVS Corporation			2,623.5				3.5	%			150,411				3.1	%
United Healthcare Services, Inc.			2,216.1				3.0	%			108,100				2.3	%
Foodland Supermarket, Ltd. & related companies			1,832.0				2.5	%			112,929				2.4	%
24 Hour Fitness USA, Inc.			1,375.0				1.9	%			45,870				1.0	%
Albertsons Companies, Inc.			1,316.1				1.8	%			168,621				3.5	%
Whole Foods Market, Inc.			1,120.3				1.5	%			31,647				0.7	%
Office Depot, Inc.			1,016.7				1.3	%			75,824				1.6	%
Keystone Automotive Operations, Inc.			1,016.0				1.3	%			230,300				4.8	%
International Paper			977.7				1.3	%			252,040				5.3	%
Total		$	16,801.3				22.6	%			1,356,650				28.5	%

 

 

Alexander & Baldwin, Inc.

Lease Expiration Schedule

As of December 31, 2016

 

Total Improved Portfolio(a)
Expiration year		Number of leases				Sq. ft. of expiring leases				% of total leased GLA				ABR expiring ($ in 000s)				% of total ABR
2017			186				1,077,711				26.0			$	14,700				19.1
2018			148				820,354				19.8				9,800				12.7
2019			134				540,188				13.0				12,400				16.1
2020			96				390,894				9.4				9,000				11.7
2021			97				479,485				11.6				10,600				13.7
2022			33				153,597				3.7				4,200				5.4
2023			26				163,378				3.9				2,600				3.4
2024			14				175,748				4.2				4,500				5.8
2025			21				58,481				1.4				2,500				3.2
2026			10				37,328				0.9				1,600				2.1
Thereafter			23				249,949				6.1				5,200				6.8
Total			788				4,147,113				100.0			$	77,100				100.0

 

(a) Improved portfolio lease expirations and percentages of GLA and ABR do not include month-to-month leases.

 

Ground Lease Expirations
Expiration year		ABR expiring ($ in 000s)				% of total ABR
Month-to-month		$	700				5.4
2017			1,200				9.3
2018			300				2.3
2019			500				3.9
2020			900				7.0
2021			900				7.0
2022			200				1.6
2023			—				—
2024			—				—
2025			—				—
2026			700				5.4
Thereafter			7,500				58.1
		$	12,900				100.0

 

 

Alexander & Baldwin, Inc.

New & Renewal Lease Summary

As of December 31, 2016

 

																														Comparable Leases Only (a)
Total - New and Renewal		Leases				GLA				New ABR ($ in 000s)				New ABR/ SF				Tenant Improvement SF				3rd Party Leasing Comm (in millions)				Weighted Average Lease Term (Years)				Leases				GLA				New ABR/SF				Old ABR/SF				Rent Spread
Q4			54				408,770			$	5,130			$	12.55			$	8.97			$	2.11				2.9				35				308,804			$	10.57			$	9.99				5.8	%
Q3			49				145,553				2,628				18.06				4.93				4.19				3.6				33				85,617				19.10				17.47				9.4	%
Q2			42				82,248				2,034				24.73				5.56				4.23				4.4				31				65,913				25.15				20.88				20.4	%
Q1			51				284,704				4,350				15.28				2.06				2.53				4.1				43				247,984				13.33				11.12				19.9	%
Total			196				921,275			$	14,142			$	15.35			$	5.89			$	2.76				3.5				142				708,318			$	13.92			$	12.30				13.2	%

 

Total - New  Leases		Leases				GLA				New ABR ($ in 000s)				New ABR/ SF				Tenant Improvement SF				3rd Party Leasing Comm (in millions)				Weighted Average Lease Term (Years)				Leases				GLA				New ABR/SF				Old ABR/SF				Rent Spread
Q4			28				128,545			$	2,611			$	20.31			$	28.53			$	5.33				5.9				9				28,579			$	26.03			$	23.72				9.7	%
Q3			22				70,157				1,265				18.04				9.26				6.77				4.4				6				10,221				26.69				22.98				16.1	%
Q2			22				33,175				878				26.45				13.79				5.80				4.2				11				16,840				29.78				21.80				36.6	%
Q1			21				60,713				1,554				25.59				8.51				5.44				5.3				13				23,993				21.23				16.13				31.7	%
Total			93				292,590			$	6,307			$	21.56			$	18.08			$	5.75				5.2				39				79,633			$	25.46			$	20.93				21.7	%

 

Total - Renewal Leases		Leases				GLA				New ABR ($ in 000s)				New ABR/ SF				Tenant Improvement SF				3rd Party Leasing Comm (in millions)				Weighted Average Lease Term (Years)				Leases				GLA				New ABR/SF				Old ABR/SF				Rent Spread
Q4			26				280,225			$	2,519			$	8.99			$	—			$	0.64				1.5				26				280,225			$	8.99			$	8.59				4.7	%
Q3			27				75,396				1,363				18.07				0.90				1.79				2.9				27				75,396				18.07				16.72				8.1	%
Q2			20				49,073				1,156				23.57				—				3.18				4.5				20				49,073				23.57				20.57				14.6	%
Q1			30				223,991				2,797				12.49				0.31				1.75				3.8				30				223,991				12.49				10.58				18.0	%
Total			103				628,685			$	7,835			$	12.46			$	0.22			$	1.37				2.7				103				628,685			$	12.46			$	11.21				11.2	%

 

		Three Months Ended 12/31/2016																								TTM Ended 12/31/2016
		Leases				GLA				ABR ($ in 000s)				ABR/ SF				% of ABR				Rent Spread				Leases				GLA				ABR ($ in 000s)				ABR/SF				% of ABR				Rent Spread
Hawaii
Retail			34				58,656			$	2,349			$	40.04				67.2	%			14.0	%			95				187,173			$	6,138			$	32.79				57.5	%			16.8	%
Industrial			7				52,192			$	722			$	13.83				20.7	%			2.7	%			46				216,289			$	2,835			$	13.11				26.6	%			21.3	%
Office			7				14,584			$	425			$	29.17				12.2	%			(1.3	)%			23				51,781			$	1,703			$	32.89				16.0	%			0.5	%
Mainland
Retail			1				3,641			$	68			$	18.74				4.2	%			5.0	%			10				27,334			$	570			$	20.85				16.4	%			7.9	%
Industrial			4				278,068			$	1,531			$	5.51				93.7	%			—	%			9				405,572			$	2,226			$	5.49				64.2	%			1.7	%
Office			1				1,629			$	34			$	21.00				2.1	%				(b)			13				33,126			$	670			$	20.21				19.3	%			10.9	%

 

(a) Comparable lease detail excludes certain one-time strategic lease extensions for space repositioning and assignments without term changes.

(b) No comparable data

 

 

Alexander & Baldwin, Inc.

Commercial Portfolio Repositioning, Redevelopment & Development Summary

As of December 31, 2016

 

																										Leasing Activity
Project		Phase		In-service		Capital ($ in millions)				Incurred to Date ($ in millions)				Incremental Stabilized NOI ($ in millions)				Stabilized Yield on Cost				Projected GLA (Sq. Ft.)				% Leased				% LOI				Total
Gateway at Mililani South Expansion		Completed		June-16		$	6.0			$	6.0			$	0.8				13	%			18,415				100								100
Pearl Highlands Center – Food Court Repositioning		Pre-construction		Late 2017			3.0				0.1				0.3				10-12%				6,300				—				60				60
Lau Hala Shops Repositioning		Construction		2018			21.0				1.6				1.9-2.4				9-11%				48,400				19				68				87
Total						$	30.0			$	7.7				$3.0-$3.5				9-13%				73,115

 

 

Alexander & Baldwin, Inc.

Active Development Projects

As of December 31, 2016

 

																						(Dollars in millions)																Construction timing								Sales Closings Timing
Project		Location		Product		Estimated Economic Interest				Units, acres or gross leasable sq. ft.		Avg unit (sf)/ lot size (acres)		Units/ acres closed				Target price range per sq. ft.				Est. Project Cost				Capital Committed (JV)				Investment				Net Investment				Start				End				Start				End
						(a)																(b)				(c)								(e)				(f)				(f)				(f)				(f)
Residential units
Kamalani (Increment 1)		Kihei, Maui		Primary residential			100	%		170 units		994 sf			—			$	400				64				N/A				18				18				2016				2019				2017				2019
Ka Milo at Mauna Lani		Kona, Hawaii		Resort residential			50	%		137 units		2,165 sf			86 units				$530-$800				125				16				16				5				2005				2018				2007				2020
Keala o Wailea (MF-11)		Wailea, Maui		Resort residential			65%+/-5%			70 units		1,385 sf			—				$600-$1,000				64				9				9				9				2015				2018				2017				2018
The Collection		Honolulu, Oahu		Primary residential			90% +/-5%			465 units		904 sf			451 units			$	785				281				54				54				15				2014				2016				2016				2017
Total																						$	534			$	79			$	97			$	47
Lot sales
Kahala Avenue Portfolio		Honolulu, Oahu		Residential			100	%		30 lots		0.5 acres			23 lots				$150-$385				135				N/A				134				46				N/A				N/A				2013				2018
Maui Business Park II		Kahului, Maui		Light industrial lots			100	%		125 acres		0.5 - 11 acres			30 acres				$38-$60				77				N/A				57				39				2011				2021				2012				2030
The Ridge at Wailea (MF-19)		Wailea, Maui		Resort residential			100	%		9 lots (4.5 acres)		0.5 acres			1 lot				$60-$100				10				N/A				9				8				2007				2009				2014				2020
Kukui’ula		Poipu, Kauai		Resort residential			85% +/- 5%			Up to 1,500 units (640 saleable acres)		0.42 acres			145 lots				$40-$110				N/A				N/A				301				291				2006				2030	(d)			2006				2030
Total																						$	222				—			$	501			$	384

 

(a) Economic interest represents the Company’s estimated share of distributions after return of capital contributions based on current forecasts of sales activity. Actual results could differ materially from projected results due to the timing of expected sales, increases or decreases in estimated sales prices or costs and other factors. As a result, estimated economic interests are subject to change.

 

(b) Includes land cost at book value and capitalized interest but excludes sales commissions and closing costs.

 

(c) Includes land cost at contribution value and total expected A&B capital contributed and to be contributed. The estimate includes due diligence costs and capitalized interest but excludes capital projected to be contributed by equity partners, third-party debt, and amounts expected to be funded from project cash flows and/or buyer deposits.

 

(d) Estimated substantial construction completion for Kukui’ula represents the estimated completion date for major project infrastructure and amenities as well as construction activities related to parcel development that is expected to continue past 2030.

 

(e) The book value of active development projects includes land stated at its acquisition value. In the case of development projects on A&B’s historical landholdings, such as Kamalani and Maui Business Park, the value of land would be approximately $150 per acre.

 

(f) Estimated or actual dates

 

 

Alexander & Baldwin, Inc.

Landholdings as of December 31, 2016

 

		Maui				Kauai				Oahu				Molokai				Big Island				Hawaii Total Acres				Mainland Total Acres				Total Acres
Land under commercial properties/ urban ground leases			97				19				184				—				9				309				125				434
Land in active development			213				—				5				—				—				218				—				218
Land used in other operations			21				20				—				—				—				41				—				41
Land Operations
Urban land, not in active development/use			342				42				—				—				—				384				—				384
Agriculture			48,207				6,631				76				—				—				54,914				—				54,914
Agriculture in urban entitlement process			357				260				—				—				—				617				—				617
Conservation & preservation			15,855				13,309				639				—				—				29,803				—				29,803
Materials & Construction			1				—				542				264				—				807				—				807
Total landholdings			65,093				20,281				1,446				264				9				87,093				125				87,218

 

A&B Land Sales Data - Maui & Kauai 2012-2016
		Total Acres Sold				WA Price Per Acre				High				Low
Ag-zoned
0-5 acres			9			$	114,750			$	151,600			$	84,400
5-20 acres			60			$	71,900			$	104,200			$	35,600
20-100 acres			468			$	28,650			$	55,700			$	13,750
100+acres			1,570			$	25,800			$	35,450			$	14,600
Total/Weighted Average			2,107			$	28,100			$	151,600			$	13,750
Urban-zoned
0-3 acres			8			$	2,328,700			$	4,346,200			$	1,829,500
3-25 acres			58			$	1,735,400			$	2,221,100			$	1,647,100
Total/Weighted Average			66			$	1,813,000			$	4,346,200			$	1,647,100

 

 

Alexander & Baldwin, Inc.

Materials & Construction Select Data

 

Historical EBITDA ($ in millions)		1Q				2Q				3Q				4Q				Full Year
2016			10.4				7.8				8.0				7.0				33.2
2015			9.5				9.7				10.2				11.6				41.0
2014			7.2				11.4				9.0				10.4				38.0
2013			(a)				(a)				(a)				6.8				6.8

 

Aggregate used/sold (tons in thousands)		1Q				2Q				3Q				4Q				Full Year
2016			183.2				159.5				158.1				195.3				696.1
2015			235.0				234.4				180.5				190.3				840.2
2014			145.4				167.5				166.0				232.5				711.4
2013			(a)				(a)				(a)				112.3				112.3

 

Asphalt placed (tons in thousands)		1Q				2Q				3Q				4Q				Full Year
2016			117.9				86.9				126.9				113.2				444.9
2015			116.4				115.5				106.9				127.9				466.7
2014			108.9				149.4				98.7				113.5				470.5
2013			(a)				(a)				(a)				114.5				114.5

 

Backlog ($ in millions)		31-Mar				30-Jun				30-Sep				31-Dec
2016			225.7				264.1				242.5				242.9
2015			205.0				249.7				242.0				226.5
2014			255.6				247.5				233.9				219.4
2013			(a)				(a)				(a)				218.1

 

Oahu crew days lost to weather		1Q				2Q				3Q				4Q				Full Year
2016			28.0				52.5				78.5				73.5				232.5
2015			25.0				14.0				79.0				57.5				175.5
2014			28.0				37.0				19.5				36.0				120.5
2013			(a)				(a)				(a)				15.0				15.0

 

Oahu total available crew days		1Q				2Q				3Q				4Q				Full Year
2016			377.0				378.0				444.0				456.5				1,655.5
2015			354.0				364.0				384.0				387.0				1,489.0
2014			330.0				378.0				322.0				327.0				1,357.0
2013			(a)				(a)				(a)				315.0				315.0

 

(a) Grace was acquired on October 1, 2013.

 

See Appendix for a statement about management’s use on non-GAAP financial measures and a reconciliation of Materials & Construction operating profit to segment EBITDA.

 

 

Appendix

 

 

Alexander & Baldwin, Inc.

Statement on Management’s Use of Non-GAAP Financial Measures

 

The Company presents the following Non-GAAP financial measures in this Real Estate Supplement:

 

	·	Consolidated Company EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
	·	Materials & Construction EBITDA
	·	Commercial Real Estate Operating Profit to NOI, Same-Store NOI, and Hawaii Same-Store Retail NOI

 

The calculations of these financial measures are described in the Glossary of Terms on page 4 of this Supplement.

 

The Company uses these Non-GAAP measures when evaluating operating performance because management believes that they provide additional insight into the Company’s and segment’s core operating results, future cash flow generation and/or the underlying business trends affecting performance on a consistent and comparable basis from period to period. These measures generally are provided to investors as an additional means of evaluating the performance of ongoing core operations. The Non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

 

Required reconciliations of these Non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are set forth in the following pages of this Appendix.

 

 

Alexander & Baldwin, Inc.

Reconciliation of Net Income (Loss) to EBITDA

 

($ in millions, unaudited)

 

		Three months ended December 31,												Year ended December 31,
		2016				2015				% Change				2016				2015				% Change
Net Income (Loss)		$	0.6			$	(11.9	)			NM			$	(8.4	)		$	31.1				NM
Adjustments:
Depreciation and amortization			36.0				13.9				159.0	%			119.5				55.7				114.5	%
Interest expense			6.2				6.6				(6.1	)%			26.3				26.8				(1.9	)%
Taxes			(1.4	)			(9.9	)			(85.9	)%			(23.0	)			16.5				NM
EBITDA		$	41.4			$	(1.3	)			NM			$	114.4			$	130.1				(12.1	)%

 

  

Alexander & Baldwin, Inc.

Reconciliation of Materials & Construction Operating Profit to EBITDA

 

($ in millions, unaudited)

 

		1Q16				2Q16				3Q16				4Q16				2016 YTD
Materials & Construction segment operating profit (excludes interest and taxes)		$	8.0			$	4.9			$	5.6			$	4.8			$	23.3
Adjustments:
Depreciation and amortization			2.9				3.0				2.9				2.9				11.7
Income attributable to non-controlling interest			(0.5	)			(0.1	)			(0.5	)			(0.7	)			(1.8	)
Materials & Construction segment EBITDA		$	10.4			$	7.8			$	8.0			$	7.0			$	33.2

 

		1Q15				2Q15				3Q15				4Q15				2015
Materials & Construction segment operating profit (excludes interest and taxes)		$	7.2			$	7.0			$	7.5			$	9.2			$	30.9
Adjustments:
Depreciation and amortization			2.9				3.0				3.0				2.7				11.6
Income attributable to non-controlling interest			(0.6	)			(0.3	)			(0.3	)			(0.3	)			(1.5	)
Materials & Construction segment EBITDA		$	9.5			$	9.7			$	10.2			$	11.6			$	41.0

 

		1Q14				2Q14				3Q14				4Q14				2014
Materials & Construction segment operating profit (excludes interest and taxes)		$	3.4			$	8.0			$	5.9			$	8.6			$	25.9
Adjustments:
Depreciation and amortization			4.2				4.4				3.7				2.9				15.2
Income attributable to non-controlling interest			(0.4	)			(1.0	)			(0.6	)			(1.1	)			(3.1	)
Materials & Construction segment EBITDA		$	7.2			$	11.4			$	9.0			$	10.4			$	38.0

 

		4Q13				2013 YTD
		(a)				(a)
Materials & Construction segment operating profit (excludes interest and taxes)		$	2.9			$	2.9
Adjustments:
Depreciation and amortization			4.4				4.4
Income attributable to non-controlling interest			(0.5	)			(0.5	)
Materials & Construction segment EBITDA		$	6.8			$	6.8

 

(a) Segment was formed on October 1, 2013 with the acquisition of Grace Pacific.

 

 

Alexander & Baldwin, Inc.

Reconciliation of Commercial Real Estate Operating Profit to NOI, Same-Store NOI, and Hawaii Same-Store Retail NOI (Non-GAAP)

 

($ in millions, unaudited)

 

		Quarter Ended December 31,
		2016												2015
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Change
Commercial Real Estate Operating Profit		$	12.4			$	1.1			$	13.5			$	11.9			$	1.5			$	13.4				0.7	%
Adjustments:
Depreciation and amortization			5.3				1.4				6.7				4.6				2.5				7.1				(5.6	)%
Straight-line lease adjustments			(0.5	)							(0.5	)			(0.7	)			0.5				(0.2	)			150.0	%
General, administrative and other expenses			0.9				0.1				1.0				0.7				0.2				0.9				11.1	%
Commercial Real Estate NOI		$	18.1			$	2.6			$	20.7			$	16.5			$	4.7			$	21.2				(2.4	)%
Acquisitions / disposition and other adjustments			(1.7	)			0.1				(1.6	)			(0.2	)			(1.5	)			(1.7	)			(5.9	)%
Commercial Real Estate Same-Store NOI		$	16.4			$	2.7			$	19.1			$	16.3			$	3.2			$	19.5				(2.1	)%

 

		Year Ended December 31,
		2016												2015
		Hawaii				Mainland				Total				Hawaii				Mainland				Total				Change
Commercial Real Estate Operating Profit		$	50.0			$	4.8			$	54.8			$	46.9			$	6.3			$	53.2				3.0	%
Adjustments:
Depreciation and amortization			21.1				7.3				28.4				18.9				10.0				28.9				(1.7	)%
Straight-line lease adjustments			(2.5	)			0.4				(2.1	)			(2.9	)			0.6				(2.3	)			(8.7	)%
General, administrative and other expenses			4.7				0.6				5.3				3.1				0.8				3.9				35.9	%
Other			—				—				—				0.3				—				0.3				(100.0	)%
Commercial Real Estate NOI		$	73.3			$	13.1			$	86.4			$	66.3			$	17.7			$	84.0				2.9	%
Acquisitions / disposition and other adjustments			(8.7	)			(2.5	)			(11.2	)			(3.2	)			(6.2	)			(9.4	)			19.1	%
Commercial Real Estate Same-Store NOI		$	64.6			$	10.6			$	75.2			$	63.1			$	11.5			$	74.6				0.8	%
Commercial Real Estate NOI										$	86.4											$	84.0
Adjustments:
Mainland Commercial Real Estate NOI											(13.1	)											(17.7	)
Commercial Real Estate NOI - Hawaii										$	73.3											$	66.3
Adjustments:
Hawaii Industrial, Office, and Ground NOI											(26.8	)											(27.6	)
Commercial Real Estate NOI - Hawaii Retail										$	46.5											$	38.7
Adjustments:
Acquisitions / disposition and other adjustments											(8.9	)											(3.1	)
Commercial Real Estate NOI - Hawaii Same-Store Retail										$	37.6											$	35.6				5.6	%

 

 

 

Alexander & Baldwin, Inc.

Reconciliation of Commercial Real Estate Operating Profit to NOI (Non-GAAP) (Continued)

($ in millions, unaudited)

 

		Year Ended December 31,
		2016				2012				Change
Commercial Real Estate operating profit		$	54.8			$	41.6				31.7	%
Less amounts reported in discontinued operations before taxes			—				(17.1	)			(100.0	)%
Commercial Real Estate operating profit from continuing operations		$	54.8			$	24.5				123.7	%
Adjustments:
Depreciation and amortization			28.4				22.2				27.9	%
Straight-line lease adjustments			(2.1	)			(3.6	)			(41.7	)%
General, administrative and other expenses			5.3				2.9				82.8	%
Discontinued operations			—				17.1				(100.0	)%
Commercial Real Estate NOI		$	86.4			$	63.1				36.9	%