Alexander & Baldwin, Inc.

Third quarter 2023 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 touchtone phone. To withdraw from the question queue, 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 2023 earnings. With me today for our earnings call are A&B's Chief Executive Officer, Lance Parker, and our Chief Financial Officer, Clayton Chun. We are also joined by Kit Millen, Senior Vice President of Asset Management, who is available to participate in the Q&A portion of the call. During our call, please refer to our third quarter 2023 supplemental information available on our website at investors.alexanderbaldwin.com forward slash supplementals. Before we commence, please note that statements in this call 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 to 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 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, 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. The 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. Please refer to our statement regarding the use of these non-GAAP measures and reconciliations included in our third quarter 2023 supplement. Lance will open up today's presentation with an overview of the quarter and provide an update on real estate operations, and then Clayton will discuss financial matters. Lance will return for some closing remarks, whereupon we will open it up for your questions. With that, let me turn the call over to Lance

Thanks, Steve, and aloha, everyone. Our high-quality commercial real estate portfolio of retail, industrial, and ground lease assets again generated strong results in the third quarter, continuing our momentum from the first half of 2023. Quarterly CRE revenue was up 3.7% compared to last year, driven primarily by higher base rents, and same-store NOI was up 6.3%. While the economy in Hawaii continues to demonstrate its resilience, the human and economic impact of the Maui wildfires continues to be felt. Much of Maui is open. However, certain areas of the island, particularly those directly impacted by the fire, remain closed. In the wake of the wildfire, Maui has seen an expected decrease in tourism, while activity on the other islands has increased. Although total statewide visitor counts in September 2023 were lower than 2022, year-to-date numbers are still up compared to last year. Most reports estimate limited spillover to the broader economy in Hawaii. This is supported by the fact the state's unemployment rate at the end of September was 2.8% compared to 3.5% a year earlier. As we have said before, our portfolio is generally community-based and less dependent on tourist activity, but tourism supports the state's overall economy. Turning to our CRE portfolio leasing metrics, same-store leased occupancy at quarter end was 94.5%, end basis points lower than 12 months earlier. Same-store retail leased occupancy was 70 basis points higher at 94%, and same-store leased industrial occupancy was 130 basis points lower than the third quarter of 2022 at 96.7%. For comparative purposes, same-store industrial leased occupancy in the third quarter of 2023 was 90 basis points higher than the second quarter of 2023. Same-store economic occupancy at quarter end was 92.8%, down 30 basis points from 12 months earlier. Same-store retail economic occupancy was up 60 basis points to 91.9%. And same-store industrial economic occupancy was down 170 basis points to 95.8%. Annualized base rent attributable to S&O leases at quarter end was $3.1 million. This compares to $2.5 million 12 months earlier and 3.1 million dollars last quarter. During the 3rd quarter we executed 62 leases in our improved property portfolio for approximately 150,000 square feet and achieved blended spreads of 11.2% with spreads for industrial leases excuse me at 4.1% and spreads for retail leases at 13.8%. This activity included 14 leases related to properties located in Kailua, including Aikahi Park Shopping Center, totaling approximately 25,000 square feet of GLA and $900,000 of ABR. And four leases at Queens Marketplace, totaling approximately 12,000 square feet of GLA and $400,000 of ABR. We are pleased with the continued pace of leasing activity and pipeline of active deals. A refresh at Manoa Marketplace, the only grocery-anchored neighborhood center in the Manoa area, was substantially completed in the third quarter, with only final punch list items remaining. With bid-ask spreads and higher interest rates limiting transaction activity, we will remain disciplined when evaluating capital deployment options as we identify opportunities that drive long-term growth in cash flow and value. And now, I'll turn the call over to Clayton for financial details. Clayton? Thanks, Lance, and aloha, everyone.