Alexander & Baldwin, Inc.

Good afternoon, and welcome to the Alexander and Baldwin first quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Steve Sweat, Investor Relations. Please go ahead.

Thank you. Aloha, and welcome to our call to discuss Alexander Involvement's first quarter 2022 earnings. With me today for our earnings call are A&B's President and Chief Executive Officer, Chris Benjamin, our Chief Operating Officer, Lance Parker, and our Chief Financial Officer, Brett Brown. Clayton Shun, Chief Accounting Officer, is also present and will be available for the Q&A portion of the call. Before we commence, please note that statements in this call and presentation that are not historical facts 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 statements. These forward-looking statements include but are not limited to statements regarding possible and assumed future results of operations, business strategies, growth opportunities, and competitive positions, as well as the rapidly changing challenges with and the company's plans and responses to the novel coronavirus COVID-19 pandemic and related economic disruptions. Such forward-looking statements speak only as of the date the statements were made and are not guarantees of future performance. Forward-looking statements are subject to a number of risks, uncertainties, assumptions, and other factors that could cause actual results and the timing of certain events to differ materially from those expressed that are implied by the forward-looking statements. These factors include, but are not limited to, prevailing market conditions and other factors related to the company's REIT status and the company's business risks associated with COVID-19 and its impacts on the company's businesses, results of operations, liquidity and financial condition, and the evaluation of alternatives by the company related to its materials and construction business, as well as other factors discussed in the company's most recent form, 10-K, Form 10Q, and other filings with the SEC. The information in this call and presentation should be evaluated in light of these important risks. We do not undertake any obligation to update the company's forward-looking statements. Management will be referring to non-GAAP financial measures during our call today. Included in the appendix of today's presentation slides is a statement regarding our use of non-GAAP measures and reconciliations. Slides from this presentation are available for download at the Investors section of our website at www.alexanderbaldwin.com. Chris will open today's presentation with his strategic update. He'll then turn the presentation over to Lance for an update on real estate operations, and then Brett will discuss financial matters. Chris will return for some closing remarks, and then we'll open it up for your questions. With that, let me turn it over to Chris.

Thanks, Steve, and good afternoon to our listeners. The first quarter of 2022 was another very strong quarter for Alexander and Baldwin, as we built on our excellent results from last year. For the quarter, commercial real estate performance exceeded our expectations with strong NOI, higher occupancy, and significant leasing activity across our portfolio of well-located retail, industrial, and ground lease properties. Land sales continued to be robust, and our materials and construction segment had its best quarter in a year and a half. producing positive adjusted EBITDA and building its largest backlog of projects in over four years. As a result of the strong CRE performance, we raised our guidance roughly 7% and the board has increased our quarterly dividend by another penny to 20 cents per share, surpassing our pre-pandemic dividend level. I want to thank all A&B team members for their hard work and contributions to these exceptional results. Before diving into details on the quarter, I'd like to step back and provide some strategic context. There's been a meaningful shift at A&B following the significant land sales of 2021 and the resulting de-levering of our balance sheet. Granted, we've been making steady progress in our simplification for many years, including the migration of our portfolio back to Hawaii, the sale of large amounts of ag lands, the significant growth of our Hawaii commercial real estate portfolio, and the development of the best CRE team in Hawaii. But the events of late 2021 were an important turning point. With the sale of Kukuiula and other non-core assets, we've dramatically strengthened our balance sheet and are ready to put it to work. The acquisition market is tight, but we're actively and patiently building our pipeline. We're uniquely positioned to benefit from our Hawaii relationships and market knowledge. We do still have some non-core assets to sell, but they're not constraining our core business or our growth strategy. Grace is making important progress toward the kind of profitability we know it's capable of, which will position us to achieve the final big element of our simplification. We are positioning for a possible marketing process as early as the late summer. In the meantime, Grace doesn't distract us from our CRE efforts or impede the obvious success of that segment. The success was demonstrated by strong results in the first quarter. CRE revenue grew more than 15%. Total commercial real estate portfolio NOI and same-store NOI were both up more than 17%. And core FFO per diluted share was up by 38%. We saw particular strength in our retail segment, which achieved a more than 26% improvement in same-store NOI, continuing the recovery that we saw last year. Our industrial portfolio also produced strong same-store NOI growth of nearly 8%. We ended the quarter at 94.5% leased occupancy, up 70 basis points from a year ago. Our retail portfolio is again over 93% leased, and our industrial assets are 98% leased. We had strong leasing activity in the quarter, with over 369,000 square feet leased and total rent spreads at 3.2%. We continue to see robust economic growth across the state. Domestic visitor arrivals have exceeded pre-pandemic levels for each of the first three months of 2022, up about 8% compared to 2019 levels. Additionally, since the start of the year, international visitor arrivals have been trending upward and should continue to rebound, providing incremental economic benefits. While our portfolio is community-based and not heavily dependent on tourist activity, The resurgence in Hawaii tourism is providing a broad benefit to Hawaii's economy, with the state unemployment rate down to 4.1% for March 2022, an improvement of over 18 percentage points from the peak of 22.4% nearly two years ago. Overall, Hawaii's economy is rebounding more quickly than expected, leading the state's Department of Business, Economic Development, and Tourism to raise the 2022 economic growth forecast to 3.2% from 3%. And these broad tailwinds are not only supporting strong leasing demand for our high-quality commercial real estate assets, but driving strong demand for Hawaii real estate in general, including our remaining non-core lands. We had non-core land sales in the first quarter totaling approximately $8 million, including 3.9 acres at Maui Business Park 2 and 173 acres of other non-core land holdings. As importantly, our materials and construction segment produced $4.1 million of adjusted EBITDA in the quarter, $1.9 million of this at Grace Pacific, and the balance attributable to other materials and construction activity. While Grace's earnings were modest, we're pleased with the momentum that business is gaining and expect continued growth in EBITDA over the balance of the year. As I noted, we are positioning for a second-half marketing process if conditions seem right. We'll likely make that decision before our next earnings call. Turning to growth, while we have not announced any acquisitions in 2022, we have a robust pipeline of opportunities we're evaluating. We remain focused primarily on our existing asset classes, neighborhood retail, and light industrial. Now I'll turn the call over to our Chief Operating Officer, Lance Parker, to review our recent commercial real estate highlights and land sales activity. Lance?