Alexander & Baldwin, Inc.

Thank you, operator. Aloha and welcome to Alexander and Baldwin's third quarter 2025 earnings conference call. With me today are A&B's chief executive officer, Lance Parker, and chief financial officer, Clayton Chess. 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 2025 financial presentation available on our website at investors.alexanderbaldwin.com. Before we commence, please note that statements in this presentation that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 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. In addition, words such as believes, expects, anticipates, intends, plans, estimates, projects, forecasts, and future or conditional verbs such as will, may, could, should, and would, as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. 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 maturely 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. And the risk factors discussed in part one, item 1A of the company's most recent form 10K under the heading risk factors, form 10Q 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 third quarter 2025 supplemental information and presentation materials. Lance will start today's presentation highlighting Alexander Baldwin's third quarter highlights and CRA results. and then hand it over to Clayton for a discussion on financial matters. To close, Lance will return for final remarks and open it up for your questions. With that, let me turn the call over to Lance.

Thank you, Tran. That was a lot. Great job. Aloha, and thanks to everyone joining us on the call today. Overall, our third quarter results exceeded expectations, and I am pleased by the progress we've made throughout the year. Our full-year outlook remains positive, and as a result, we are raising our FFO guidance. Turning to quarter highlights, our CRE portfolio performed in line with expectations and experienced same-store NOI growth of 0.6% for the quarter. Subsequent to quarter end, we executed a renewal with an anchor tenant in Kailua Town at an 11% lease spread, reflecting continued leasing strengths. On the internal growth front, we continued to build momentum. At Komohana Industrial Park in West O'ahu, we broke ground on two new buildings, a 91,000 square foot warehouse pre-leased to Lowe's, and a 30,000 square foot one on spec. We've already seen early interest in building two, underscoring demand for newly constructed industrial product in the market. We expect both buildings to be placed into service in the fourth quarter of 2026, and generate $2.8 million in annual NOI when they are stabilized in the first quarter of 2027. On Maui, vertical construction at our Build-A-Suit project at Maui Business Park remains on schedule, with completion anticipated in the first quarter of 2026. This project is expected to add approximately $1 million in annual NOI when it is complete. Earlier this year, we executed a strategic backfill at Kaka'ako Commerce Center successfully leasing two challenging vacant floors to a single tenant, bringing occupancy to 96.3%. During the third quarter, the company completed all required contingencies and the tenant exercised their option to purchase three floors. This transaction provides an additional source of capital for future acquisition opportunities. On the external growth side, we're seeing increased momentum in the Hawaii investment market. including three large portfolios being marketed for sale, and we are actively pursuing acquisition opportunities aligned with our long-term growth strategy. Turning to our third quarter CRE highlights, we executed 49 leases in our improved property portfolio, representing approximately 164,000 square feet of GLA and $3.3 million of ABR. Our blended leasing spreads increased 4.4% on a comparable basis. Our lease occupancy was 95.6%, 160 basis points higher compared to the third quarter of last year, and 20 basis points lower sequentially. Economic occupancy at quarter end was 94.3%, 130 basis points higher than the same period last year, and 50 basis points lower than last quarter. SNO at quarter end was $6.4 million, including $3.1 million related to our two build-to-suit projects and $700,000 for our ground lease at Maui Business Park. We remain confident in our full-year outlook. Our CRE portfolio continues to perform well, and I'm encouraged by the progress across our internal and external growth initiatives. With that, I'll turn the call over to Clayton to discuss financial results and our full-year outlook. Clayton?

Thanks, Lance, and aloha, everyone. Our portfolio generated $32.8 million of NOI in the third quarter, representing an increase of 1.2% over the same period last year. This growth was primarily driven by higher base rent year over year. Same-store NOI was $31.9 million for the quarter, a 60 basis point increase year over year. Consistent with our prior guidance, we experienced modest growth in the third quarter. This was due primarily to the impact of tenant move outs that occurred earlier this year and have since been backfilled in one-time recoveries in Q3 of 2024. Additionally, higher bad debt expense related to a few isolated tenants further tempered growth in the quarter. Third quarter CRE and corporate related FFO per share of 30 cents grew 2 cents or 7.1% from the same quarter last year. This improvement was attributed to lower G&A and higher portfolio NOI. Total company FFO for the quarter was 29 cents per share. In addition to the 30 cents from CRE and corporate previously mentioned, FFO for the third quarter included an operating loss of $298,000 from land operations as there were no land parcel sales in the quarter. Annual carrying costs in land operations continues to be in the range of $3.75 to $4.5 million. GNA was $6.1 million for the quarter, approximately $1.4 million lower than the same period last year, primarily reflecting certain non-recurring and transaction-related items as well as the timing of recurring expenses. In line with prior guidance, we expect full year GNA to range from flat to a penny per share lower as compared to 2024. As Lance mentioned earlier, a tenant at Kaka'ako Commerce Center has exercised its purchase option of three floors, two of which they currently lease. The sale is expected to close in the first quarter of 2026 and will generate $24.1 million of proceeds that we expect to recycle into an acquisition property via a 1031 exchange. Turning to our balance sheet and liquidity, at quarter end, we had total liquidity of $284.3 million, and our net debt to adjust the EBITDA ratio stood at 3.5 times. Approximately 89% of our debt was at fixed rates, and our weighted average interest rate was 4.7%. Consistent with historical practice, the company's board of directors plans to declare a fourth quarter 2025 dividend in December with payment in January. Given our year-to-date performance, we are pleased to update our 2025 guidance as follows. We are reaffirming our guidance of full-year same-store NOI growth of 3.4% to 3.8%. Implied in this guidance is our estimate for the fourth quarter where we expect a 4.4% same store NOI growth at the midpoint. We are raising our guidance for CRE and corporate FFO and expect our full year results to be within a range of $1.13 to $1.17 per share due primarily to the lower than expected interest expense in the third quarter. Total FFO is now expected to be $1.36 to $1.41 per share, up a penny from our previous guidance. We feel confident about our portfolio, and we've positioned ourselves to close out the 2025 year strong. With that, I will turn the call over to Lance for his closing remarks.