Earning Date, Transcript Summary & Report

Same-Store NOI Growth Comparison: Since becoming a REIT in 2017, A&B's same-store NOI growth averaged 3.8% per year, outperforming the Nareit shopping center subsector's 2.3%.

CAGR Comparison in FFO: A&B achieved a CAGR on CRE and corporate FFO of 20.4% since presenting FFO in 2020, compared to 9.3% for the Nareit shopping center subsector.

Capital Structure Improvement: In 2024, A&B improved its capital structure by refinancing $130 million of mortgage debt with unsecured debt at fixed rates and extending the maturity date on its revolving credit facility to 2028.

Land Sale Impact: The company sold over 400 acres of non-core landholdings, reducing carrying costs within the land operations segment.

Industrial Development Expansion: A&B began construction of a 30,000 square foot industrial asset on the island of Mali and is underwriting other development opportunities.

Same Store NOI Growth: Fourth quarter same store NOI grew by 2.4% and 2.9% for the year, with a strong leasing activity of 47 leases executed in the fourth quarter.

Strong Leasing Spreads: Blended leasing spreads remained strong at 14% for the fourth quarter and 11.7% for the full year 2024.

Leased Occupancy Increase: Leased occupancy increased to 94.6%, driven by a 230 basis point increase in the retail portfolio due to backfilling a large vacancy at Waianae Mall.

FFO Growth Analysis: Fourth quarter FFO was $0.30 per share, a $0.03 increase from the same quarter last year, and full year FFO was $1.37 per share, $0.28 higher than the prior year.

G&A Expense Reduction: A&B decreased G&A expenses by $4.2 million or 12.4% in 2024 compared to 2023, and reduced carrying costs for land operations to $5.8 million for the year.

Strong Balance Sheet Metrics: The company maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 3.6 times and approximately 96% of debt at fixed rates.

Quarterly Dividend Announcement: A&B declared a first quarter 2025 dividend of $0.225 per share, consistent with the previous quarter.

Occupancy Rate Decline: Economic occupancy decreased to 92.9%, down 10 basis points from last quarter and the same period last year, indicating potential challenges in maintaining tenant occupancy.

Same-Store NOI Decline: The company reported a decline in same-store NOI growth to 2.4% for the quarter and 2.9% for the year, which, while positive, reflects a slowdown compared to previous performance metrics.

Occupancy Challenges in Portfolio: The industrial and office vacancies contributed to the decline in economic occupancy, suggesting ongoing challenges in these segments of the portfolio.

G&A Expense Outlook: The company anticipates a modest increase in G&A expenses in 2025, which may hinder further cost reduction efforts after a significant decrease in 2024.

Same-Store NOI Growth Outlook: The guidance for same-store NOI growth in 2025 is projected at 2.4% to 3.2%, which is lower than previous years, indicating potential headwinds in revenue growth.

Leasing Challenges Acknowledged: The company has acknowledged approximately 50,000 square feet of vacancy within its industrial portfolio and 13,000 square feet within its office portfolio, highlighting ongoing leasing challenges.

Land Operations Contribution Outlook: The anticipated contributions from land operations in 2025 are modest, ranging from $0.02 to $0.04 per share, reflecting limited growth expectations in this area.