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ALEX NYSE· Alexander & Baldwin Inc.
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ALEX NYSE· Alexander & Baldwin Inc.
Earnings report Q3 2023

Alexander & Baldwin, Inc. Reports Solid Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Alexander & Baldwin, Inc. (ALEX) reported total operating revenue of $52.5 million, representing a growth of 6% compared to the same period last year. The company's Commercial Real Estate segment generated $48.2 million in revenue, showing a slight increase of 4% year-over-year. Additionally, the Land Operations segment contributed $4.3 million in revenue, reflecting a significant growth of 48% compared to the previous year.

Strengths

Alexander & Baldwin, Inc. demonstrated solid revenue growth in the latest quarter, driven by the performance of its Commercial Real Estate and Land Operations segments. The Commercial Real Estate segment's revenue increase can be attributed to favorable market conditions and strong leasing activity. The Land Operations segment's substantial growth can be attributed to successful land development projects and increased sales. Management commented that the company's diversified portfolio and strategic investments have contributed to its revenue growth.

Challenges

Despite the overall revenue growth, Alexander & Baldwin, Inc. faced challenges in managing operating costs and expenses. The cost of Commercial Real Estate increased slightly from the previous year, impacting the segment's profitability. Additionally, the Land Operations segment experienced higher costs, primarily due to increased land acquisition expenses. The company's selling, general, and administrative expenses also remained relatively high, impacting overall profitability.

Noteworthy

It is noteworthy that Alexander & Baldwin, Inc. reported a gain of $1.1 million on the disposal of non-core assets, contributing to its operating income. This gain, along with income related to joint ventures, helped offset some of the impact of higher expenses. Furthermore, the company's decision to terminate a pension plan resulted in a significant reduction in expenses, improving its financial position.

Summary

Alexander & Baldwin, Inc. delivered a solid performance in the latest quarter, with a 6% increase in total operating revenue. The company's Commercial Real Estate and Land Operations segments were the key drivers of this growth. However, challenges in managing operating costs and expenses remain, impacting profitability. The company's strategic investments and diversified portfolio have contributed to its revenue growth. Overall, Alexander & Baldwin, Inc. has shown resilience in a competitive market and continues to focus on optimizing its operations to drive future growth.

Source documents

Form 10-Q  filed on Nov 03, 2023
48 pages scanned

Reference data

Company financials Q3 revenue 52.9M
Analyst estimates Q3 EPS beat by ∞%
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