Alexander & Baldwin Reports Decline in Revenue and Net Income for Q3 2025

Alexander & Baldwin, Inc. (A&B) reported its financial results for the third quarter and the first nine months of 2025, revealing a decline in operating revenue and net income compared to the same periods in 2024. For the three months ended September 30, 2025, A&B generated operating revenue of $50.2 million, an 18.9% decrease from $61.9 million in the prior year. The company’s net income for the quarter was $14.3 million, down 24.6% from $19.0 million in the same quarter of 2024. Basic earnings per share for continuing operations fell to $0.20 from $0.27 year-over-year.

The decline in revenue was primarily attributed to lower sales in the Land Operations segment, which saw a significant drop in unimproved and development land sales. Operating costs also decreased by 15.1% to $27.6 million, largely due to reduced expenses in the Land Operations segment. However, the Commercial Real Estate segment reported a slight increase in operating revenue, rising 1.7% to $50.2 million, driven by higher rental and recovery revenue from recent acquisitions. The segment's operating profit remained relatively stable, decreasing marginally to $22.7 million.

In terms of strategic developments, A&B engaged in a significant transaction involving the Kaka'ako Commerce Center, where a tenant exercised a purchase option, leading to a reclassification of the lease as a sales-type lease. This transaction contributed to a gain of $2.6 million recognized in the third quarter. Additionally, the company finalized a termination agreement with Mahi Pono, resulting in a $55.3 million obligation to be paid in installments over four years, which is reflected in the company's liabilities.

Operationally, A&B's commercial real estate portfolio remains robust, with a gross leasable area of approximately 4 million square feet. The company reported a leased occupancy rate of 95.6% as of September 30, 2025, an increase from 94.0% a year earlier. The company also signed 22 new leases and 27 renewal leases during the third quarter, covering a total of 163,800 square feet. Looking ahead, A&B anticipates that its cash flows from operations, along with available cash and credit facilities, will be sufficient to meet its business requirements in both the short and long term, despite the challenges posed by current economic conditions.