☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Hawaii | 45-4849780 | ||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
||||||||||
P. O. Box 3440, | Honolulu, | Hawaii | 96801 | ||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, without par value | ALEX | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||||||||
PART I. FINANCIAL INFORMATION | ||||||||||||||
Item 1. | ||||||||||||||
Condensed Consolidated Balance Sheets - As of March 31, 2021 and December 31, 2020
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Condensed Consolidated Statements of Operations - Three Months Ended March 31, 2021 and 2020
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Condensed Consolidated Statements of Comprehensive Income (Loss) - Three Months Ended March 31, 2021 and 2020
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Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2021 and 2020
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Condensed Consolidated Statements of Equity - Three Months Ended March 31, 2021 and 2020
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Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II. OTHER INFORMATION | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 4. | ||||||||||||||
Item 6. | ||||||||||||||
March 31, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments | ||||||||||||||
Real estate property | $ | 1,557.2 | $ | 1,549.7 | ||||||||||
Accumulated depreciation | (161.0) | (154.4) | ||||||||||||
Real estate property, net | 1,396.2 | 1,395.3 | ||||||||||||
Real estate developments | 73.6 | 75.7 | ||||||||||||
Investments in real estate joint ventures and partnerships | 124.0 | 134.1 | ||||||||||||
Real estate intangible assets, net | 59.1 | 61.9 | ||||||||||||
Real estate investments, net | 1,652.9 | 1,667.0 | ||||||||||||
Cash and cash equivalents | 32.0 | 57.2 | ||||||||||||
Restricted cash | 0.2 | 0.2 | ||||||||||||
Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts of $3.3 million and $3.3 million as of March 31, 2021 and December 31, 2020, respectively
|
33.2 | 43.5 | ||||||||||||
Inventories | 27.2 | 18.4 | ||||||||||||
Other property, net | 108.7 | 110.8 | ||||||||||||
Operating lease right-of-use assets | 18.2 | 18.6 | ||||||||||||
Goodwill | 10.5 | 10.5 | ||||||||||||
Other receivables, net of allowance for credit losses and allowance for doubtful accounts of $3.6 million and $3.9 million as of March 31, 2021 and December 31, 2020, respectively
|
13.9 | 14.2 | ||||||||||||
Prepaid expenses and other assets | 95.1 | 95.6 | ||||||||||||
Total assets | $ | 1,991.9 | $ | 2,036.0 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt | $ | 654.6 | $ | 687.1 | ||||||||||
Accounts payable | 13.2 | 9.8 | ||||||||||||
Operating lease liabilities | 18.5 | 18.4 | ||||||||||||
Accrued pension and post-retirement benefits | 34.9 | 34.7 | ||||||||||||
Deferred revenue | 68.7 | 66.9 | ||||||||||||
Accrued and other liabilities | 95.7 | 116.5 | ||||||||||||
Total liabilities | 885.6 | 933.4 | ||||||||||||
Commitments and Contingencies (Note 8)
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Redeemable Noncontrolling Interest | 6.5 | 6.5 | ||||||||||||
Equity: | ||||||||||||||
Common stock - no par value; authorized, 150.0 million shares; outstanding, 72.5 million and 72.4 million shares at March 31, 2021 and December 31, 2020, respectively
|
1,806.2 | 1,805.5 | ||||||||||||
Accumulated other comprehensive income (loss) | (56.0) | (60.0) | ||||||||||||
Distributions in excess of accumulated earnings | (650.4) | (649.4) | ||||||||||||
Total equity | 1,099.8 | 1,096.1 | ||||||||||||
Total liabilities and equity | $ | 1,991.9 | $ | 2,036.0 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||||||
Commercial Real Estate | $ | 39.9 | $ | 43.4 | ||||||||||||||||||||||
Land Operations | 17.1 | 11.0 | ||||||||||||||||||||||||
Materials & Construction | 24.0 | 26.4 | ||||||||||||||||||||||||
Total operating revenue | 81.0 | 80.8 | ||||||||||||||||||||||||
Operating Costs and Expenses: | ||||||||||||||||||||||||||
Cost of Commercial Real Estate | 23.4 | 24.3 | ||||||||||||||||||||||||
Cost of Land Operations | 8.1 | 8.0 | ||||||||||||||||||||||||
Cost of Materials & Construction | 23.7 | 25.0 | ||||||||||||||||||||||||
Selling, general and administrative | 12.2 | 13.8 | ||||||||||||||||||||||||
Total operating costs and expenses | 67.4 | 71.1 | ||||||||||||||||||||||||
Gain (loss) on disposal of commercial real estate properties, net | 0.2 | 0.5 | ||||||||||||||||||||||||
Gain (loss) on disposal of non-core assets, net | 0.1 | — | ||||||||||||||||||||||||
Total gain (loss) on disposal of assets, net | 0.3 | 0.5 | ||||||||||||||||||||||||
Operating Income (Loss) | 13.9 | 10.2 | ||||||||||||||||||||||||
Other Income and (Expenses): | ||||||||||||||||||||||||||
Income (loss) related to joint ventures | 3.4 | 3.2 | ||||||||||||||||||||||||
Interest and other income (expense), net (Note 2)
|
(0.3) | 0.2 | ||||||||||||||||||||||||
Interest expense | (7.0) | (7.8) | ||||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 10.0 | 5.8 | ||||||||||||||||||||||||
Income tax benefit (expense) | (0.1) | — | ||||||||||||||||||||||||
Income (Loss) from Continuing Operations | 9.9 | 5.8 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 0.0 | (0.2) | ||||||||||||||||||||||||
Net Income (Loss) | 9.9 | 5.6 | ||||||||||||||||||||||||
Loss (income) attributable to noncontrolling interest | — | 0.6 | ||||||||||||||||||||||||
Net Income (Loss) Attributable to A&B Shareholders | $ | 9.9 | $ | 6.2 | ||||||||||||||||||||||
Earnings (Loss) Per Share Available to A&B Shareholders: | ||||||||||||||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||||||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Continuing operations available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||||||||||||||
Discontinued operations available to A&B shareholders | 0.00 | 0.00 | ||||||||||||||||||||||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | 0.09 | ||||||||||||||||||||||
Weighted-Average Number of Shares Outstanding: | ||||||||||||||||||||||||||
Basic | 72.5 | 72.3 | ||||||||||||||||||||||||
Diluted | 72.6 | 72.5 | ||||||||||||||||||||||||
Amounts Available to A&B Common Shareholders (Note 15):
|
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Continuing operations available to A&B common shareholders | $ | 9.9 | $ | 6.4 | ||||||||||||||||||||||
Discontinued operations available to A&B common shareholders | — | (0.2) | ||||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Net Income (Loss) | $ | 9.9 | $ | 5.6 | ||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Unrealized interest rate hedging gain (loss) | 3.1 | (6.9) | ||||||||||||||||||||||||
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | 0.3 | — | ||||||||||||||||||||||||
Employee benefit plans: | ||||||||||||||||||||||||||
Amortization of net loss included in net periodic benefit cost | 0.6 | 0.6 | ||||||||||||||||||||||||
Income taxes related to other comprehensive income (loss) | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 4.0 | (6.3) | ||||||||||||||||||||||||
Comprehensive Income (Loss) | 13.9 | (0.7) | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | — | 0.6 | ||||||||||||||||||||||||
Comprehensive Income (Loss) Attributable to A&B Shareholders | $ | 13.9 | $ | (0.1) |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net income (loss) | $ | 9.9 | $ | 5.6 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||||||||||||||
Depreciation and amortization | 12.6 | 13.6 | ||||||||||||
Loss (gain) from disposals and asset transactions, net | (0.3) | (0.5) | ||||||||||||
Share-based compensation expense | 1.4 | 1.5 | ||||||||||||
Equity in (income) loss from affiliates, net of operating cash distributions | (2.1) | (2.9) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade, contracts retention, and other contract receivables | 5.4 | 7.0 | ||||||||||||
Inventories | (8.8) | — | ||||||||||||
Prepaid expenses, income tax receivable and other assets | (1.0) | 2.4 | ||||||||||||
Development/other property inventory | 2.2 | (3.2) | ||||||||||||
Accrued pension and post-retirement benefits | 0.9 | 0.6 | ||||||||||||
Accounts payable | 0.8 | (3.5) | ||||||||||||
Accrued and other liabilities | (0.4) | (1.7) | ||||||||||||
Net cash provided by (used in) operations | 20.6 | 18.9 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures for property, plant and equipment | (5.2) | (6.2) | ||||||||||||
Proceeds from disposal of assets | 0.5 | 5.9 | ||||||||||||
Payments for purchases of investments in affiliates and other investments | (0.6) | — | ||||||||||||
Distributions of capital from investments in affiliates and other investments | 15.7 | 3.2 | ||||||||||||
Net cash provided by (used in) investing activities | 10.4 | 2.9 | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Proceeds from issuance of notes payable and other debt | — | 108.0 | ||||||||||||
Payments of notes payable and other debt and deferred financing costs | (37.7) | (44.2) | ||||||||||||
Borrowings (payments) on line-of-credit agreement, net | 4.0 | 51.4 | ||||||||||||
Cash dividends paid | (21.8) | (13.8) | ||||||||||||
Proceeds from issuance (repurchase) of capital stock and other, net | (0.7) | (0.9) | ||||||||||||
Net cash provided by (used in) financing activities | (56.2) | 100.5 | ||||||||||||
Cash, Cash Equivalents and Restricted Cash | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (25.2) | 122.3 | ||||||||||||
Balance, beginning of period | 57.4 | 15.4 | ||||||||||||
Balance, end of period | $ | 32.2 | $ | 137.7 |
Other Cash Flow Information: | ||||||||||||||
Interest paid, net of capitalized interest | $ | (6.2) | $ | (7.0) | ||||||||||
Income tax (payments)/refunds, net | $ | 0.1 | $ | 0.5 | ||||||||||
Noncash Investing and Financing Activities: | ||||||||||||||
Capital expenditures included in accounts payable and accrued and other liabilities | 5.5 | 2.6 | ||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | ||||||||||||||
Beginning of the period: | ||||||||||||||
Cash and cash equivalents | $ | 57.2 | $ | 15.2 | ||||||||||
Restricted cash | 0.2 | 0.2 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 57.4 | $ | 15.4 | ||||||||||
End of the period: | ||||||||||||||
Cash and cash equivalents | $ | 32.0 | $ | 131.6 | ||||||||||
Restricted cash | 0.2 | 6.1 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 32.2 | $ | 137.7 | ||||||||||
Total Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock |
Accumulated
Other Compre- hensive Income (Loss) |
(Distribution
in Excess of Accumulated Earnings) Earnings Surplus |
Non-Controlling
Interest |
Total |
Redeem-
able Non- Controlling Interest |
|||||||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 72.3 | $ | 1,800.1 | $ | (48.8) | $ | (626.2) | $ | 3.6 | $ | 1,128.7 | $ | 6.3 | |||||||||||||||||||||||||||||||
Cumulative impact of adoption of ASC 326 | — | — | — | (4.0) | (0.1) | (4.1) | — | |||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 6.2 | (0.5) | 5.7 | (0.1) | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | (6.3) | — | — | (6.3) | — | |||||||||||||||||||||||||||||||||||||
Dividend on common stock ($0.19 per share)
|
— | — | — | (13.8) | — | (13.8) | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 1.5 | — | — | — | 1.5 | — | |||||||||||||||||||||||||||||||||||||
Shares issued or repurchased, net | — | — | — | (0.9) | — | (0.9) | — | |||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 72.3 | $ | 1,801.6 | $ | (55.1) | $ | (638.7) | $ | 3.0 | $ | 1,110.8 | $ | 6.2 | |||||||||||||||||||||||||||||||
Total Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock |
Accumulated
Other Compre- hensive Income (Loss) |
(Distribution
in Excess of Accumulated Earnings) Earnings Surplus |
Non-Controlling
Interest |
Total |
Redeem-
able Non- Controlling Interest |
|||||||||||||||||||||||||||||||||||||||
Shares | Stated Value | |||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | 72.4 | $ | 1,805.5 | $ | (60.0) | $ | (649.4) | $ | — | $ | 1,096.1 | $ | 6.5 | |||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 9.9 | — | 9.9 | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | 4.0 | — | — | 4.0 | — | |||||||||||||||||||||||||||||||||||||
Dividend on common stock ($0.15 per share)
|
— | — | — | (10.9) | — | (10.9) | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 1.4 | — | — | — | 1.4 | — | |||||||||||||||||||||||||||||||||||||
Shares issued or repurchased, net | 0.1 | (0.7) | — | — | — | (0.7) | — | |||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 72.5 | $ | 1,806.2 | $ | (56.0) | $ | (650.4) | $ | — | $ | 1,099.8 | $ | 6.5 | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Interest income | $ | 0.3 | $ | 0.6 | ||||||||||||||||||||||
Pension and postretirement benefit (expense) | (0.6) | (0.7) | ||||||||||||||||||||||||
Other income (expense), net | — | 0.3 | ||||||||||||||||||||||||
Interest and other income (expense), net | $ | (0.3) | $ | 0.2 |
March 31, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
Asphalt | $ | 12.1 | $ | 4.2 | ||||||||||
Processed rock and sand | 8.4 | 7.9 | ||||||||||||
Work in progress | 3.6 | 3.2 | ||||||||||||
Retail merchandise | 2.1 | 2.1 | ||||||||||||
Parts, materials and supplies inventories | 1.0 | 1.0 | ||||||||||||
Total | $ | 27.2 | $ | 18.4 |
Effective | Maturity | Fixed Interest | Notional Amount at | Asset (Liability) Fair Value at | Classification on | |||||||||||||||||||||||||||||||||
Date | Date | Rate | March 31, 2021 | March 31, 2021 | December 31, 2020 | Balance Sheet | ||||||||||||||||||||||||||||||||
4/7/2016 | 8/1/2029 | 3.14% | $ | 57.5 | $ | (1.6) | $ | (4.8) | Accrued and other liabilities | |||||||||||||||||||||||||||||
2/13/2020 | 2/27/2023 | 3.15% | $ | 50.0 | $ | (1.1) | $ | (1.3) | Accrued and other liabilities |
2021 | 2020 | |||||||||||||||||||||||||
Derivatives in Designated Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||
Amount of gain (loss) recognized in OCI on derivatives | $ | 3.1 | $ | (6.9) | ||||||||||||||||||||||
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | $ | 0.3 | $ | — |
Effective | Maturity | Fixed Interest | Notional Amount at | Asset (Liability) Fair Value at | Classification on | |||||||||||||||||||||||||||||||||
Date | Date | Rate | March 31, 2021 | March 31, 2021 | December 31, 2020 | Balance Sheet | ||||||||||||||||||||||||||||||||
1/1/2014 | 9/1/2021 | 5.95% | $ | 9.7 | $ | (0.2) | $ | (0.3) | Accrued and other liabilities |
March 31, 2021 | December 31, 2020 | |||||||||||||
Leased property - real estate | $ | 1,532.5 | $ | 1,525.3 | ||||||||||
Less: Accumulated depreciation | (162.4) | (152.2) | ||||||||||||
Property under operating leases, net | $ | 1,370.1 | $ | 1,373.1 | ||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Lease payments | $ | 29.6 | $ | 30.2 | ||||||||||||||||||||||
Variable lease payments | 11.7 | 1.4 | ||||||||||||||||||||||||
Total rental income | $ | 41.3 | $ | 31.6 | ||||||||||||||||||||||
2021 | $ | 89.2 | ||||||
2022 | 110.9 | |||||||
2023 | 99.9 | |||||||
2024 | 86.6 | |||||||
2025 | 74.2 | |||||||
2026 | 60.5 | |||||||
Thereafter | 448.6 | |||||||
Total future lease payments to be received | $ | 969.9 | ||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Operating lease cost | $ | 1.1 | $ | 1.2 | ||||||||||||||||||||||
Finance lease cost | $ | 0.3 | $ | 0.3 | ||||||||||||||||||||||
2021 Grants | 2020 Grants | |||||||||||||
Volatility of A&B common stock | 47.2% | 22.6% | ||||||||||||
Average volatility of peer companies | 49.6% | 23.2% | ||||||||||||
Risk-free interest rate | 0.2% | 1.3% |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Share-based expense: | ||||||||||||||||||||||||||
Time-based and market-based restricted stock units | $ | 1.4 | $ | 1.5 | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | ||||||||||||||||||||||
Interest cost | 1.7 | 1.7 | ||||||||||||||||||||||||
Expected return on plan assets | (1.7) | (1.7) | ||||||||||||||||||||||||
Amortization of net loss | 0.6 | 0.6 | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 0.8 | $ | 0.8 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 9.9 | $ | 5.8 | ||||||||||||||||||||||
Exclude: (Income) loss attributable to noncontrolling interest | — | 0.6 | ||||||||||||||||||||||||
Income (loss) from continuing operations attributable to A&B shareholders | 9.9 | 6.4 | ||||||||||||||||||||||||
Distributions and allocations to participating securities | — | — | ||||||||||||||||||||||||
Income (loss) from continuing operations available to A&B common shareholders | 9.9 | 6.4 | ||||||||||||||||||||||||
Income (loss) from discontinued operations available to A&B common shareholders | — | (0.2) | ||||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Denominator for basic EPS - weighted average shares outstanding | 72.5 | 72.3 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options and restricted stock unit awards | 0.1 | 0.2 | ||||||||||||||||||||||||
Denominator for diluted EPS - weighted average shares outstanding | 72.6 | 72.5 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Number of anti-dilutive securities | 0.3 | 0.1 | ||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||
Employee benefit plans: | ||||||||||||||
Pension plans | $ | (48.3) | $ | (48.9) | ||||||||||
Post-retirement plans | (3.6) | (3.6) | ||||||||||||
Non-qualified benefit plans | (0.8) | (0.8) | ||||||||||||
Total employee benefit plans | (52.7) | (53.3) | ||||||||||||
Interest rate swap | (3.3) | (6.7) | ||||||||||||
Accumulated other comprehensive income (loss) | $ | (56.0) | $ | (60.0) |
Employee Benefit Plans | Interest Rate Swap | Total | ||||||||||||||||||
Balance, January 1, 2021 | $ | (53.3) | $ | (6.7) | $ | (60.0) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | — | 3.1 | 3.1 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)1
|
0.6 | 0.3 | 0.9 | |||||||||||||||||
Taxes on other comprehensive income (loss) | — | — | — | |||||||||||||||||
Other comprehensive income (loss), net of taxes | 0.6 | 3.4 | 4.0 | |||||||||||||||||
Balance, March 31, 2021 | $ | (52.7) | $ | (3.3) | $ | (56.0) |
(amounts in millions, except percentage data and per share data; unaudited) | Three Months Ended March 31, | 2021 vs 2020 | ||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||
Operating revenue | $ | 81.0 | $ | 80.8 | $ | 0.2 | 0.2 | % | ||||||||||||||||||
Cost of operations | (55.2) | (57.3) | 2.1 | (3.7) | % | |||||||||||||||||||||
Selling, general and administrative | (12.2) | (13.8) | 1.6 | (11.6) | % | |||||||||||||||||||||
Gain (loss) on disposal of assets, net | 0.3 | 0.5 | (0.2) | (40.0) | % | |||||||||||||||||||||
Operating income (loss) | 13.9 | 10.2 | 3.7 | 36.3 | % | |||||||||||||||||||||
Income (loss) related to joint ventures | 3.4 | 3.2 | 0.2 | 6.3 | % | |||||||||||||||||||||
Interest and other income (expense), net | (0.3) | 0.2 | (0.5) | (250.0) | % | |||||||||||||||||||||
Interest expense | (7.0) | (7.8) | 0.8 | (10.3) | % | |||||||||||||||||||||
Income tax benefit (expense) | (0.1) | — | (0.1) | — | % | |||||||||||||||||||||
Income (loss) from continuing operations | 9.9 | 5.8 | 4.1 | 70.7 | % | |||||||||||||||||||||
Discontinued operations (net of income taxes) | — | (0.2) | 0.2 | (100.0) | % | |||||||||||||||||||||
Net income (loss) | 9.9 | 5.6 | 4.3 | 76.8 | % | |||||||||||||||||||||
(Income) loss attributable to noncontrolling interest | — | 0.6 | (0.6) | (100.0) | % | |||||||||||||||||||||
Net income (loss) attributable to A&B | $ | 9.9 | $ | 6.2 | $ | 3.7 | 59.7 | % | ||||||||||||||||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Basic earnings (loss) per share - continuing operations | $ | 0.14 | $ | 0.09 | $ | 0.05 | 55.6 | % | ||||||||||||||||||
Basic earnings (loss) per share - discontinued operations | 0.00 | 0.00 | — | NM | ||||||||||||||||||||||
$ | 0.14 | $ | 0.09 | $ | 0.05 | 55.6 | % | |||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||||||||||||
Diluted earnings (loss) per share - continuing operations | $ | 0.14 | $ | 0.09 | $ | 0.05 | 55.6 | % | ||||||||||||||||||
Diluted earnings (loss) per share - discontinued operations | 0.00 | 0.00 | — | NM | ||||||||||||||||||||||
$ | 0.14 | $ | 0.09 | $ | 0.05 | 55.6 | % | |||||||||||||||||||
Continuing operations available to A&B common shareholders | $ | 9.9 | $ | 6.4 | $ | 3.5 | 54.7 | % | ||||||||||||||||||
Discontinued operations available to A&B common shareholders | — | (0.2) | 0.2 | (100.0) | % | |||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | $ | 3.7 | 59.7 | % | ||||||||||||||||||
Funds From Operations ("FFO")1
|
$ | 19.2 | $ | 15.9 | $ | 3.3 | 20.8 | % | ||||||||||||||||||
Core FFO1
|
$ | 15.4 | $ | 18.3 | $ | (2.9) | (15.8) | % | ||||||||||||||||||
FFO per diluted share | $ | 0.26 | $ | 0.22 | $ | 0.04 | 18.2 | % | ||||||||||||||||||
Core FFO per diluted share | $ | 0.21 | $ | 0.25 | $ | (0.04) | (16.0) | % | ||||||||||||||||||
Weighted average diluted shares outstanding (FFO/Core FFO)2
|
72.6 | 72.5 | ||||||||||||||||||||||||
1 For definitions of capitalized terms and a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 31.
|
||||||||||||||||||||||||||
2 May differ from figure used in the consolidated statements of operations based on differing dilutive effects for net income (loss) versus FFO/Core FFO.
|
(amounts in millions, except percentage data and acres; unaudited) | Three Months Ended March 31, | 2021 vs 2020 | ||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||
Commercial Real Estate operating revenue | $ | 39.9 | $ | 43.4 | $ | (3.5) | (8.1) | % | ||||||||||||||||||
Commercial Real Estate operating costs and expenses | (23.4) | (24.3) | 0.9 | (3.7) | % | |||||||||||||||||||||
Selling, general and administrative | (1.5) | (2.1) | 0.6 | (28.6) | % | |||||||||||||||||||||
Intersegment operating revenue, net1
|
0.3 | 0.7 | (0.4) | (57.1) | % | |||||||||||||||||||||
Interest and other income (expense), net | 0.1 | 0.4 | (0.3) | (75.0) | % | |||||||||||||||||||||
Commercial Real Estate operating profit (loss) | $ | 15.4 | $ | 18.1 | $ | (2.7) | (14.9) | % | ||||||||||||||||||
Operating profit (loss) margin | 38.6 | % | 41.7 | % | ||||||||||||||||||||||
Net Operating Income ("NOI")2
|
$ | 25.3 | $ | 28.9 | $ | (3.6) | (12.4) | % | ||||||||||||||||||
Same-Store Net Operating Income ("Same-Store NOI")2
|
$ | 24.7 | $ | 28.3 | $ | (3.6) | (12.6) | % | ||||||||||||||||||
Gross leasable area ("GLA") in square feet ("SF") for improved properties at end of period | 3.9 | 3.9 | — | —% | ||||||||||||||||||||||
Ground leases (acres at end of period) | 152.0 | 153.7 | (1.7) | (1.1) | % | |||||||||||||||||||||
1 Intersegment operating revenue, net for Commercial Real Estate is primarily from the Materials & Construction segment and is eliminated in the consolidated results of operations.
|
||||||||||||||||||||||||||
2 For a discussion of management's use of a non-GAAP financial measures and the required reconciliation of non-GAAP measures to GAAP measures, refer to page 31.
|
Dispositions | ||||||||||||||||||||||||||
Property | Location |
Date
(Month/Year) |
Sales Price | GLA (SF) | ||||||||||||||||||||||
Residual Maui land | Maui, HI | 2/21 | $ | 0.3 | N/A | |||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Leases | GLA | ABR/SF |
Rent Spread1
|
||||||||||||||||||||||||||
Retail | 32 | 54,402 | $37.30 | 3.0% | |||||||||||||||||||||||||
Industrial | 16 | 64,709 | $12.39 | (0.2)% | |||||||||||||||||||||||||
Office | 3 | 2,460 | $34.83 | —% | |||||||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Leased Occupancy | 93.8% | 94.9% | (110) | |||||||||||||||||
Physical Occupancy | 93.1% | 94.7% | (160) | |||||||||||||||||
Economic Occupancy | 92.4% | 93.8% | (140) |
Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 91.9% | 93.7% | (180) | |||||||||||||||||
Industrial | 97.8% | 97.4% | 40 | |||||||||||||||||
Office | 93.0% | 94.3% | (130) | |||||||||||||||||
Total Improved Portfolio | 93.8% | 94.9% | (110) |
Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 89.9% | 92.4% | (250) | |||||||||||||||||
Industrial | 97.7% | 97.4% | 30 | |||||||||||||||||
Office | 91.2% | 87.5% | 370 | |||||||||||||||||
Total Improved Portfolio | 92.4% | 93.8% | (140) |
Same-Store Leased Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 91.8% | 93.7% | (190) | |||||||||||||||||
Industrial | 97.8% | 97.4% | 40 | |||||||||||||||||
Office | 93.0% | 94.3% | (130) | |||||||||||||||||
Total Improved Portfolio | 93.8% | 94.9% | (110) |
Same-Store Economic Occupancy | ||||||||||||||||||||
As of | As of | Basis Point Change | ||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||
Retail | 89.9% | 92.4% | (250) | |||||||||||||||||
Industrial | 97.7% | 97.4% | 30 | |||||||||||||||||
Office | 91.2% | 87.5% | 370 | |||||||||||||||||
Total Improved Portfolio | 92.4% | 93.8% | (140) |
(dollars in millions; unaudited) | Three Months Ended March 31, | 2021 vs 2020 | ||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||
Materials & Construction | ||||||||||||||||||||||||||
Operating revenue1
|
$ | 24.0 | $ | 26.4 | $ | (2.4) | (9.1)% | |||||||||||||||||||
Operating costs and expenses | (23.7) | (25.0) | 1.3 | (5.2)% | ||||||||||||||||||||||
Selling, general and administrative | (3.9) | (4.5) | 0.6 | (13.3)% | ||||||||||||||||||||||
Intersegment operating charges, net2
|
(0.2) | (0.6) | 0.4 | (66.7)% | ||||||||||||||||||||||
Income (loss) related to joint ventures | (0.2) | 0.3 | (0.5) | (166.7)% | ||||||||||||||||||||||
Interest and other income (expense), net | — | 0.1 | (0.1) | (100.0)% | ||||||||||||||||||||||
Materials & Construction operating profit (loss)1
|
$ | (4.0) | $ | (3.3) | $ | (0.7) | 21.2% | |||||||||||||||||||
Operating margin percentage | (16.7) | % | (12.5) | % | ||||||||||||||||||||||
Depreciation and amortization | $ | 2.6 | $ | 2.8 | $ | (0.2) | (7.1)% | |||||||||||||||||||
Backlog at period end3
|
$ | 127.2 | $ | 62.1 | $ | 65.1 | 104.8% | |||||||||||||||||||
1 As described elsewhere in this Form 10-Q, during the current year, the Company changed the composition of its reportable segments which caused reported amounts (i.e., revenue and operating profit) in the historical period to be reclassified from Land Operations to Materials & Construction. All comparable information for the historical periods has been restated to reflect the impact of these changes.
|
||||||||||||||||||||||||||
2 Intersegment operating charges, net for Materials & Construction represent amounts primarily from the Commercial Real Estate segment and are eliminated in the consolidated results of operations.
|
||||||||||||||||||||||||||
3 Backlog represents the total amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded. Backlog primarily consists of asphalt paving and, to a lesser extent, Grace Pacific’s consolidated revenue from its construction-and traffic control-related products. Backlog includes estimated revenue from the remaining portion of contracts not yet completed, as well as revenue from approved change orders. The length of time that projects remain in backlog can span from a few days for a small volume of work to 36 months for large paving contracts and contracts performed in phases. This amount includes opportunity backlog consisting of government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory at the time of this disclosure (such amounts were $51.9 million and $6.4 million as of March 31, 2021 and 2020, respectively. Circumstances outside the Company's control such as procurement or technical protests may arise that prevent the finalization of such contracts. Maui Paving's backlog as of March 31, 2021 and 2020 was $3.7 million and $7.6 million, respectively.
|
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Net income (loss) available to A&B common shareholders | $ | 9.9 | $ | 6.2 | ||||||||||||||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||||||||||||||
Gain on the disposal of commercial real estate properties, net | (0.2) | (0.5) | ||||||||||||||||||||||||
FFO | $ | 19.2 | $ | 15.9 | ||||||||||||||||||||||
Exclude items not related to core business: | ||||||||||||||||||||||||||
Land Operations Operating Profit | (11.4) | (4.5) | ||||||||||||||||||||||||
Materials & Construction Operating (Profit) Loss | 4.0 | 3.3 | ||||||||||||||||||||||||
Loss from discontinued operations | — | 0.2 | ||||||||||||||||||||||||
Income (loss) attributable to noncontrolling interest | — | (0.6) | ||||||||||||||||||||||||
Income tax expense (benefit) | 0.1 | — | ||||||||||||||||||||||||
Non-core business interest expense | 3.5 | 4.0 | ||||||||||||||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
CRE Operating Profit | $ | 15.4 | $ | 18.1 | ||||||||||||||||||||||
Depreciation and amortization of commercial real estate properties | 9.5 | 10.2 | ||||||||||||||||||||||||
Corporate and other expense | (6.0) | (6.2) | ||||||||||||||||||||||||
Core business interest expense | (3.5) | (3.8) | ||||||||||||||||||||||||
Core FFO | $ | 15.4 | $ | 18.3 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Commercial Real Estate Operating Profit (Loss)
|
$ | 15.4 | $ | 18.1 | ||||||||||||||||||||||
Plus: Depreciation and amortization | 9.5 | 10.2 | ||||||||||||||||||||||||
Less: Straight-line lease adjustments | (0.8) | (0.8) | ||||||||||||||||||||||||
Less: Favorable/(unfavorable) lease amortization | (0.2) | (0.3) | ||||||||||||||||||||||||
Plus: Other (income)/expense, net | (0.1) | (0.4) | ||||||||||||||||||||||||
Plus: Selling, general, administrative and other expenses | 1.5 | 2.1 | ||||||||||||||||||||||||
Commercial Real Estate NOI | 25.3 | 28.9 | ||||||||||||||||||||||||
Less: NOI from acquisitions, dispositions, and other adjustments | (0.6) | (0.6) | ||||||||||||||||||||||||
Same-Store NOI | $ | 24.7 | $ | 28.3 |
Three Months Ended March 31, | ||||||||||||||||||||
(dollars in millions; unaudited) | 2021 | 2020 | Change | |||||||||||||||||
CRE property acquisitions, development and redevelopment | $ | 3.2 | $ | 3.5 | (8.6)% | |||||||||||||||
Building/area improvements (Maintenance Capital Expenditures) | 1.2 | 1.3 | (7.7)% | |||||||||||||||||
Tenant space improvements (Maintenance Capital Expenditures) | 0.2 | 0.7 | (71.4)% | |||||||||||||||||
Quarrying and paving | 0.6 | 0.2 | 200.0% | |||||||||||||||||
Agribusiness and other | — | 0.5 | (100.0)% | |||||||||||||||||
Total capital expenditures¹ | $ | 5.2 | $ | 6.2 | (16.1)% |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
||||||||
ALEXANDER & BALDWIN, INC. | ||||||||
April 30, 2021 | By: /s/ Brett A. Brown | |||||||
Brett A. Brown | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
April 30, 2021 | By: /s/ Clayton K.Y. Chun | |||||||
Clayton K.Y. Chun | ||||||||
Senior Vice President, Chief Accounting Officer and Controller |
By /s/ Christopher J. Benjamin
|
||||||||
Christopher J. Benjamin
|
||||||||
President and Chief Executive Officer
|
||||||||
Date: | April 30, 2021 |
By /s/ Brett A. Brown
|
||||||||
Brett A. Brown
|
||||||||
Executive Vice President and Chief Financial Officer
|
||||||||
Date:
|
April 30, 2021 |
/s/ Christopher J. Benjamin
|
|||||
Name: | Christopher J. Benjamin | ||||
Title: | President and Chief Executive Officer | ||||
Date: | April 30, 2021 |
/s/ Brett A. Brown
|
|||||
Name: | Brett A. Brown | ||||
Title: | Executive Vice President and Chief Financial Officer | ||||
Date: | April 30, 2021 |
Total Number of S&S Citations | 1 | ||||
Mine Act § 104(b) Orders | 0 | ||||
Mine Act § 104(d) Citations and Orders | 0 | ||||
Mine Act § 110(b)(2) Violations | 0 | ||||
Mine Act § 107(a) Orders | 0 | ||||
Total Dollar Value of Proposed MSHA Assessments | $187 | ||||
Total Number of Mining Related Fatalities | 0 | ||||
Received Written Notice of Pattern of Violation under Mine Act §104(e) (yes/no) | No | ||||
Received Written Notice of Potential to Have Pattern under Mine Act §104(e) (yes/no) | No |