Alexander & Baldwin, Inc.

Good afternoon and welcome to the third quarter 2022 Alexander and Baldwin 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 and Baldwin's third 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 or 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, It could cause actual results and the timing of certain events to differ materially from those expressed in or 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-Q 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 today to non-GAAP financial measures during our call. Included in the appendix of today's presentation slide is a statement regarding our use of these non-GAAP measures and reconciliations. Slides from this presentation are available for download at the investor section of our website at www.alexanderbaldwin.com. Chris will open up today's presentation with a strategic update. He will 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, whereupon we will open it up for your questions. With that, let me turn it over to Chris.

Thanks, Steve, and good afternoon to our listeners. The third quarter was another very good one for A&B. Our portfolio of high-quality retail, industrial, and ground-lease assets produced strong results yet again, and the marketing process to sell Grace Pacific is advancing with several indications of interest. This is the final major step in our strategic simplification. Lance and Brett will provide more details on our performance, but let me begin with a high-level summary of our results. DRE revenue grew 5% over the prior year quarter. NOI increased by 3.3%. Core FFO per diluted share was up 4%. And we signed 50 leases during the quarter for about 105,000 square feet of GLA, achieving blended rent spreads of 4.2% for comparable leases. The performance of our CRE portfolio remains very strong, and we ended the quarter at 94.6% leased occupancy, with industrial at 98%, and retail at 93.3%. We continue to benefit from Hawaii's economic growth. Domestic visitor arrivals have exceeded pre-pandemic levels for each of the 10 full months of 2022. And we're up over 11% year to date over 2019. Further, international visitor arrivals are increasing. While total bookings for the upcoming holiday season are not yet at the pre-pandemic level, They continue to rebound and are expected to surpass last year's amount. Visitor spending is also up nearly 8% year to date compared to 2019, another positive sign for Hawaii's economy. While our portfolio is community-based and not directly dependent on tourist activity, increases in Hawaii tourism provide a broad benefit to the state's economy. The state's unemployment rate is down to 3.5% for September 2022, an improvement of 310 basis points from one year earlier, and now in line with the national unemployment rate. As inflationary pressures and economic uncertainty arise nationally and here in Hawaii, we're confident we're positioned well with a high-quality needs-based portfolio that has proven to be resilient. Turning to our materials and construction segment, operating profit and adjusted EBITDA improved from both the preceding quarter and the third quarter of 2021. Most significantly, as we announced last quarter, we have commenced a marketing process to sell Grace Pacific. We have several indications of interest and are advancing to the next phase of the process. We will provide more updates on timing as we move forward, but cannot comment on the process beyond that at this time. On the ESG front, we have completed a 1.3 megawatt solar PV installation at Pearl Highlands and have identified Kaka'ako Commerce Center as the next property for our rooftop PV initiative. Additionally, in August, we published our third annual corporate responsibility report, highlighting our efforts and progress on all ESG matters. Now, I will turn the call over to our Chief Operating Officer, Lance Parker, to review our recent CRE highlights and other portfolio activities. Lance?