Alexander & Baldwin, Inc.

Good afternoon, ladies and gentlemen. Welcome to the fourth quarter 2024 Alexander and Baldwin earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, February 27, 2025. I would now like to turn the conference over to Michael Imanaka, senior manager on the development team. Please go ahead.

Thank you, operator. Aloha and welcome to Alexander and Baldwin's fourth quarter and full year 2024 earnings conference call. My name is Michael Imanaka, and I'm a senior manager on the A&B development team. With me today are A&B's chief executive officer, Lance Parker, and chief financial officer, Clayton Chun. We are also joined by Kit Milan, 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 fourth quarter 2024 financial presentation, available on our website at investors.alexanderbaldwin.com forward slash events. Before we commence, please note that statements in this presentation that are not historical facts or forward-looking statements within the meaning of the Private Securities Litigation Reform Act 1995 and 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 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, evaluation of alternatives by the companies related to its non-core assets, and the risk factors discussed in the company's most recent Form 10-K, Form 10-Q, and other filings with the Securities and Exchange Commission. The information in this 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 2024 fourth quarter supplemental information and presentation materials. Lance will start today's presentation with an overview, then hand it off to Clayton for a discussion of financial matters. To close, Lance will return for some final remarks, then we will open it up for your questions. With that, let me turn the call over to Lance.

Thanks, Michael. Great job. To everyone joining us, aloha. 2024 was my first year as the CEO of A&B, and I can't help but reflect on the performance of the company over the past several years compared to our retail peers. Since becoming a REIT in 2017, our same-store NOI growth has averaged 3.8% per year compared to 2.3% for the NAREIT Shopping Center subsector. We began presenting FFO in 2020 and achieved a CAGR on CRE and corporate FFO of 20.4% compared to 9.3% for the Navy Shopping Center subsector. We achieved these impressive results, but it really wasn't until last year that we were able to fully concentrate on executing our Hawaii-focused commercial real estate strategy. Throughout 2024, I emphasized our four priorities related to this execution. operational excellence, balance sheet strength and flexibility, streamlining our business and cost structure, and growth. Over the course of the year, we grew our FFO and NOI and saw a strong leasing activity in the portfolio. We improved our capital structure by refinancing $130 million of mortgage debt with unsecured debt at fixed rates, extended the maturity date on a revolving credit facility to 2028, and established a new at-the-market share program. We opportunistically sold more than 400 acres of non-core land holdings, enabling us to reduce carrying costs within the land operations segment. And from a growth perspective, thanks to Michael and the rest of our development team, we began construction of our 30,000 square foot industrial asset on the island of Mali. Importantly, the team has been busy underwriting other development and redevelopment opportunities. This, of course, is in addition to the 81,500 square foot industrial asset we purchased in the third quarter of last year. Operationally, we ended the year on a high note, with better than expected results in the fourth quarter and for the full year. Same-store NOI grew by 2.4% for the quarter and 2.9% for the year. Excluding the impact of collections of prior year reserves, Our same store NOI growth was 2.9% for the quarter and 3.3% for the year. We executed 47 leases in our improved property portfolio representing more than 140,000 square feet of GLA and 209 leases or 630,000 square feet of GLA during 2024. Our blended leasing spreads remain strong in the fourth quarter at 14% on a comparable basis and 11.7% for 2024. Our leased occupancy was 94.6%, up 60 basis points sequentially and 10 basis points lower than last year. The sequential improvement was driven by a 230 basis point increase in our retail portfolio due to the backfill of our large vacancy at Wai'anae Mall. Economic occupancy at quarter end was 92.9%, down 10 basis points from last quarter as well as the same period last year. These results were driven by the industrial and office vacancies we previously mentioned. We believe that the short-term decline in occupancy will provide long-term opportunity through repositioning. S&O at quarter end was $3.4 million and includes rent for the recently announced Marlin Bar by Tommy Bahama, which we look forward to opening at Queen's Marketplace later this year, and about $1 million of ABR related to our build-a-suit at Maui Business Park, which is expected to become economic at the end of 2025. We are committed to driving operational results from our CRE portfolio, with the mindset that good day-to-day outcomes are the foundation for long-term shareholder value. Looking ahead to 2025, the team will be focused on the following objectives. improving revenue in our retail assets through timely renewals and new leases, increasing occupancy with our industrial portfolio, developing our existing land bank of industrial assets, and sourcing accretive external acquisitions and creative investments. With that, I'll turn the call over to Clayton to discuss our financial results and guidance. Clayton?