Alexander & Baldwin, Inc.

Good day, and welcome to the fourth quarter and full year 2022 Alexander and Baldwin Ehrlich's conference call. All participants will be in a 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 also note, this event is being recorded. I would now like to turn the conference over to Steve Sweat. Please go ahead.

Thank you. Aloha, and welcome to our call to discuss Alexander and Baldwin's fourth quarter and full year 2022 earnings. With me today for our earnings call are A&B's Chief Executive Officer, Chris Benjamin, our President and Chief Operating Officer, Lance Parker, and Chief Financial Officer, Clayton Shun. 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. 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 on 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, the company's business, 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 10-Q, and other filings with the SEC. Information in this call and presentation should be evaluated in light of these important risk factors. 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 these non-GAAP measures and reconciliations. Slides from this presentation are available for download at the Investors section of our website at www.alexanderboldman.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 Clayton will discuss financial matters. Crystal will turn for some closing remarks, whereupon we will open up the call for your questions. With that, let me turn the call over to Chris.

Thanks, Steve, and good afternoon to our listeners. The fourth quarter was another excellent quarter for A&B's commercial real estate business. Our high-quality retail, industrial, and ground-lease properties again produced strong results. We also booked a solid volume of land sales in the quarter. Perhaps most importantly, we have reclassified Grace as a discontinued operation in light of our commitment to exit the business. So while that process is not yet complete, the final major step in our strategic simplification is advancing, and our financials will henceforth reflect our new simplified business model. Our outstanding fourth quarter continued the trends we had seen earlier in the year. Lance and Clayton will provide more details on our fourth quarter performance But let me summarize our results for the full year. Commercial real estate revenue grew 7.5 percent year-over-year, and our same-store NOI increased by 6 percent. Core FFO increased 18.3 percent to 82.2 million, and core FFO per share was up 17.7 percent to $1.13 per share, which exceeded the high end of our twice-increased guidance range. During the year, we signed 261 new and renewal leases, representing 778,000 square feet, and achieved blended leasing spreads of 4.4%. We ended the year with leased occupancy of 95%, up 70 basis points from the end of 2021, and economic occupancy was 93.6%, up 140 basis points. In land operations, we generated adjusted EBITDA of $67 million from the sale of approximately 20,200 acres of non-core land and 4.9 acres at Maui Business Park. We raised our quarterly cash dividend three times during the year, from 18 cents per share at the end of 2021 to the current 22 cents per share level And our balance sheet remains strong and poised to support commercial real estate growth with a debt to total market capitalization ratio of 25.8% at year end and a net debt to trailing 12 months consolidated adjusted EBITDA of 2.7 times. These results reflect the strength of our portfolio with growth driven primarily by our retail segment and supported by the ongoing improvement in Hawaii's economy. Domestic visitor arrivals exceeded pre-pandemic levels for each month of 2022. Additionally, the gradual return of international visitors, now back to approximately 50% of 2019 levels, will further aid Hawaii's economy. As we've said before, our portfolio is generally community-based and less dependent on tourist activity, but the resurgence in Hawaii tourism and a robust construction industry continue to support Hawaii's strong economy, with the state's 3.2% unemployment rate in December 2022 below the national unemployment rate of 3.5%. With regard to marketing Grace Pacific for sale, market conditions, including the challenging debt markets, have not helped the process, but we remain engaged and focused on achieving a disposition this year. The impairment we recognized in the fourth quarter related to our transfer of grace to discontinued operations gives us flexibility to achieve the simplification goal we have long sought. I continue to believe in the business and in the management team that has returned it to profitability, but the time has come to part with grace as it simply doesn't fit our commercial real estate model. We continue to strengthen our ESG programs in 2022. and enhanced our disclosures to shareholders, including a well received third annual corporate responsibility report. Our first rooftop photovoltaic system was completed in late 2022 at Pearl Highland Center, and we are advancing additional renewable energy generation projects across the portfolio in support of our goal of owning, operating and managing sustainable properties. Finally, with regard to the leadership transition we recently announced, I want to congratulate Lance on his to president as of January 1 and CEO as of July 1. I've had the pleasure of working with Lance for nearly 19 years. He's an extremely talented and experienced real estate executive, and I cannot think of a better person to run A&B as a Hawaii commercial real estate company. While we transition, I will remain focused on completing our simplification efforts while Lance leads the team in running and growing the commercial real estate operations. Now I'll turn the call over to Lance. Lance?