Alexander & Baldwin Inc (Hawaii) (ALEX) 2025 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the first quarter 2025 Alexander & Baldwin earnings conference call.

女士們、先生們，下午好，歡迎參加 2025 年第一季 Alexander & Baldwin 收益電話會議。

(Operator Instructions)

（操作員指示）

This call is being recorded on Thursday, April 24, 2025. I would now like to turn the conference over to Alohi Shatto. Please go ahead.

本次通話於 2025 年 4 月 24 日星期四錄製。現在我想將會議交給 Alohi Shatto。請繼續。

Thank you, operator. Aloha and welcome to Alexander & Baldwin's first quarter 2025 earnings conference call. My name is Alohi Shatto, and I am a Property Manager at Alexander and Baldwin. With me today are A&B's Chief Executive Officer, Lance Parker, and Chief Financial Officer, Clayton Chun. We are also joined by Kit Millan, Senior Vice President of Asset Management, who is available to participate in the Q&A portion of the call.

謝謝您，接線生。您好，歡迎參加 Alexander & Baldwin 2025 年第一季財報電話會議。我叫 Alohi Shatto，是 Alexander and Baldwin 的物業經理。今天與我一起的還有 A&B 的執行長 Lance Parker 和財務長 Clayton Chun。資產管理資深副總裁 Kit Millan 也將參加此次電話會議的問答環節。

During our call, please refer to our first quarter 2025 financial presentation available on our website at investors.alexanderbaldwin.com/events. 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.

在電話會議期間，請參閱我們網站 investors.alexanderbaldwin.com/events 上提供的 2025 年第一季財務報告。在我們開始之前，請注意，本簡報中非歷史事實的陳述屬於《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述，涉及許多風險和不確定性，可能導致實際結果與相關前瞻性陳述所預期的結果存在重大差異。

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.

這些前瞻性陳述包括但不限於有關可能或假設的未來營運績效、業務策略、成長機會和競爭地位的陳述。此類前瞻性陳述僅代表陳述作出之日的觀點，並不能保證未來的表現。

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, the evaluation of alternatives by the company 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.

前瞻性陳述受多種風險、不確定性、假設和其他因素的影響，這些因素可能導致實際結果和某些事件的時間與前瞻性陳述中表達或暗示的結果和時間有重大差異。這些因素包括但不限於當前的市場狀況和與公司的房地產投資信託基金地位和公司業務相關的其他因素、公司對其非核心資產相關的替代方案的評估，以及公司最近向美國證券交易委員會提交的 10-K 表、10-Q 表和其他文件中討論的風險因素。

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 on our first quarter 2025 supplemental information and presentation materials.

應根據這些重要的風險因素來評估本簡報中的資訊。我們不承擔更新公司前瞻性陳述的任何義務。管理階層將在今天的電話會議中參考非公認會計準則財務指標。請參閱我們 2025 年第一季補充資料和簡報資料中包含的有關使用這些非 GAAP 指標和對帳的聲明。

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.

蘭斯將以概述開始今天的演講，然後將其交給克萊頓討論財務問題。最後，蘭斯將回來做一些最後的發言，然後我們將開始回答你們的提問。

With that, let me turn the call over to Lance.

說完這些，讓我把電話轉給蘭斯。

Thank you, Alohi, great job. And aloha to everyone joining us today.

謝謝你，Alohi，幹得好。向今天參加我們會議的各位表示問候。

I am pleased to say that we started the year strong, beating both internal and external expectations and made tremendous progress against the three priorities for 2025 that I laid out in our last call. They are improving our CRE portfolio performance, internal and external growth, and streamlining our business and cost structure.

我很高興地說，我們今年開局強勁，超出了內部和外部的預期，並在實現我在上次電話會議上提出的 2025 年三大優先事項方面取得了巨大進展。它們正在改善我們的企業房地產投資組合績效、內部和外部成長，並簡化我們的業務和成本結構。

Thanks to Alohi and our other property managers, our CRE portfolio performed well with same-store NOI growing by 4.2% for the quarter. Performance benefited from a large lease at Kakaako Commerce Center, bringing the assets leased occupancy up to 95.6% at quarter and compared to 83.2% last quarter.

感謝 Alohi 和我們的其他物業經理，我們的 CRE 投資組合表現良好，本季同店 NOI 成長了 4.2%。業績受惠於卡卡阿科商業中心的大量租賃，使該資產的租賃入住率在本季上升至 95.6%，而上一季為 83.2%。

From a growth perspective, we transferred a 5-acre lot at Maui Business Park out of our Land Operations segment into our ground lease portfolio and signed a 75-year lease to a prominent self-storage developer. This ground lease is notable for two reasons. First, it's a good example of strategically moving commercial land inventory into immediately recurring FFO, specifically contributing nearly $0.01 in 2025. And two, this transaction provides an opportunity for an equity investment in the development and operation of the self-storage facility if we choose.

從成長角度來看，我們將毛伊島商業園區一塊 5 英畝的土地從土地營運部門轉移到我們的土地租賃組合中，並與一家著名的自助倉儲開發商簽訂了 75 年的租約。這份土地租賃協議因兩個原因而引人注目。首先，這是將商業土地庫存策略性地轉移到立即經常性 FFO 的一個很好的例子，具體來說，到 2025 年貢獻了近 0.01 美元。其次，如果我們願意的話，這筆交易為我們提供了對自助倉儲設施的開發和營運進行股權投資的機會。

I have often mentioned our commitment to the Hawaii-focused asset class diverse strategy. And while this deal is part of our ground lease portfolio, it represents our first investment into self-storage. Finally, on our third priority, streamlining. We sold 90 acres of primarily agricultural zone land, which contributed to Land Operations earnings of approximately $0.06 for the quarter.

我經常提到我們對以夏威夷為重點的資產類別多元化策略的承諾。雖然這筆交易是我們土地租賃組合的一部分，但它代表了我們對自助倉儲的首次投資。最後，談談我們的第三個優先事項，即精簡。我們出售了 90 英畝主要為農業區的土地，這為本季的土地營運收益貢獻了約 0.06 美元。

Turning to our first quarter CRE metrics. We executed 42 leases in our improved property portfolio, representing approximately 237,000 square feet of GLA and $5.6 million of ABR. Our blended leasing spreads remain strong at 10.2% on a comparable basis. Our leased occupancy was 95.4%, up 80 basis points sequentially, and 140 basis points compared to the first quarter of last year. Economic occupancy at quarter end was 93.9%, up 100 basis points from last quarter and 160 basis points from the same period last year.

轉向我們第一季的 CRE 指標。我們在改進的房地產組合中簽訂了 42 份租約，相當於約 237,000 平方英尺的 GLA 和 560 萬美元的 ABR。我們的混合租賃利差仍保持強勁，年比仍為 10.2%。我們的租賃入住率為 95.4%，比上一季成長 80 個基點，比去年第一季成長 140 個基點。季度末經濟入住率為 93.9%，比上一季上升 100 個基點，比去年同期上升 160 個基點。

The improved occupancy quarter over quarter reflects the backfill of two floors of vacant space at Kakaako Commerce Center. The year-over-year improvement also reflects the backfill of space at Waianae Mall that occurred in the fourth quarter of 2024. SNO at quarter end was $3.4 million and includes $700,000 for our ground lease at Maui Business Park.

入住率環比提高反映了卡卡阿科商業中心兩層空置空間的回填。同比成長也反映了 2024 年第四季 Waianae Mall 空間的補充。季度末的 SNO 為 340 萬美元，其中包括我們在毛伊島商業園區的 70 萬美元土地租賃費。

I am pleased with our first quarter accomplishments and based on these results, we are raising our total FFO per share guidance, primarily reflecting favorable results in our l Land Operations segment. We are maintaining our initial guidance for same-store NOI and CRE and corporate related FFO. The decision to maintain versus raise our CRE related guidance reflects the strong performance we achieved in the first quarter and recognition of the macroeconomic uncertainty that exists for the remainder of the year.

我對我們第一季的成績感到滿意，基於這些結果，我們提高了每股 FFO 總預期，這主要反映了我們陸地營運部門的良好業績。我們維持同店淨營業利潤 (NOI) 和企業營收 (CRE) 以及公司相關營運現金流量 (FFO) 的初步指引。維持而不是提高 CRE 相關指導的決定反映了我們在第一季度取得的強勁業績以及對今年剩餘時間存在的宏觀經濟不確定性的認識。

With that, I'll turn the call over to Clayton to discuss financial results and guidance. Clayton?

說完這些，我將把電話轉給克萊頓，討論財務結果和指導。克萊頓？

Thanks, Lance, and aloha, everyone. We began the year strong with our portfolio continuing to perform at a high level. For the first quarter, the commercial real estate portfolio generated $33.2 million of NOI, representing a 4.6% increase from Q1 of last year that was due primarily to higher portfolio occupancy. We reported $0.30 of CRE and corporate FFO per share for the quarter, which reflects an 11.1% increase when normalized for the $0.02 of swap and financing related adjustments embedded in our Q1 2024 FFO.

謝謝，蘭斯，大家好。我們以強勁的勢頭開啟了新的一年，我們的投資組合繼續保持高水準表現。第一季度，商業房地產投資組合產生了 3,320 萬美元的 NOI，比去年第一季成長 4.6%，這主要歸因於投資組合入住率的提高。我們報告本季的 CRE 和每股企業 FFO 為 0.30 美元，考慮到我們 2024 年第一季 FFO 中包含的 0.02 美元掉期和融資相關調整，這一數字增長了 11.1%。

Total FFO was $0.36 per share for the first quarter of 2025, consisting of $0.06 of FFO per share from Land Operations, in addition to the $0.30 of FFO from CRE and corporate previously mentioned. Included in Land Operations FFO was approximately $2.2 million of margin realized from the sale of agricultural zone land during the quarter as well as approximately $3 million of JV income that was due primarily to a favorable resolution of certain contingencies at a legacy joint venture.

2025 年第一季的總 FFO 為每股 0.36 美元，其中包括來自土地營運的每股 0.06 美元 FFO，以及前面提到的 CRE 和企業的 0.30 美元 FFO。土地營運 FFO 包括本季出售農業區土地所實現的約 220 萬美元利潤，以及約 300 萬美元合資企業收入，這主要歸因於對傳統合資企業的某些意外事件的有利解決。

We continue to carefully manage our operating and overhead costs. For the first quarter of 2025, G&A was approximately $7 million, a decrease of $200,000 or 3.4% as compared to the same period last year, largely reflecting timing differences. For the full year 2025, we continue to expect G&A to range from $0.01 -- to range from flat to $0.01 per share lower as compared to 2024.

我們繼續謹慎管理我們的營運和管理成本。2025 年第一季度，G&A 費用約為 700 萬美元，與去年同期相比減少 20 萬美元或 3.4%，主要反映了時間差異。對於 2025 年全年，我們繼續預計 G&A 費用將在 0.01 美元到每股持平至每股下降 0.01 美元之間，與 2024 年相比。

Turning to our balance sheet and liquidity. We continue to maintain a strong balance sheet that provides us with the liquidity and flexibility needed to operate the business in an agile manner. At quarter end, we had total liquidity of over $300 million and our net debt to adjust EBITDA ratio stood at 3.6 times. Approximately 97% of our debt was at fixed rates with a weighted average interest rate of 4.65%. With respect to our dividend, we paid a first quarter dividend of $0.225 per share on April 7, and our board declared a second quarter 2025 dividend of $0.225 payable on July 9.

轉向我們的資產負債表和流動性。我們繼續保持強勁的資產負債表，這為我們提供以靈活方式經營業務所需的流動性和靈活性。截至季末，我們的總流動資金超過 3 億美元，淨負債與調整後 EBITDA 比率為 3.6 倍。我們的債務約 97% 為固定利率，加權平均利率為 4.65%。關於我們的股息，我們於 4 月 7 日支付了每股 0.225 美元的第一季股息，董事會宣布 2025 年第二季股息為 0.225 美元，將於 7 月 9 日支付。

Turning to our guidance, as previously mentioned, we are raising our total company FFO guidance to a range of $1.17 to $1.23 per share, reflecting the better than expected first quarter Land Operations results. We are maintaining our guidance for same store NOI growth of 2.4% to 3.2% as well as for FFO related to CRE and Corporate of $1.11 to $1.16 per share.

談到我們的指導，如前所述，我們將公司整體 FFO 指引上調至每股 1.17 美元至 1.23 美元的範圍，這反映了第一季度陸地營運業績好於預期。我們維持同店淨利潤成長 2.4% 至 3.2% 的預期，以及與 CRE 和企業相關的 FFO 每股 1.11 美元至 1.16 美元的預期。

Despite our strong first quarter performance, our decision to maintain guidance for these metrics reflects an acknowledgement of the macroeconomic uncertainty affecting the overall market. On our last call, I specifically referenced 50,000 square feet of industrial vacancy in our guidance. During the first quarter, we backfilled approximately 75% of that exposure by signing a lease at Kakaako Commerce Center.

儘管我們第一季表現強勁，但我們決定維持這些指標的指導，這反映出我們承認宏觀經濟的不確定性正在影響整個市場。在我們上次電話會議上，我特別提到了我們指導中的 50,000 平方英尺的工業空置面積。在第一季度，我們透過在卡卡阿科商業中心簽署租約填補了約 75% 的風險敞口。

It is important to note that the tenant does have a contingency in the lease, but we are confident that we can resolve it later this year. Importantly, the space was economic on day one. Our guidance also assumes $0.01 of FFO related to internal or external growth. We have effectively achieved that with the execution of our ground lease at Maui Business Park, and we're optimistic that we can complete more growth-related deals in the year.

值得注意的是，租戶在租約中確實存在意外情況，但我們相信可以在今年稍後解決這個問題。重要的是，這個空間在第一天就具有經濟效益。我們的指導還假設 0.01 美元的 FFO 與內部或外部成長有關。透過在毛伊島商業園區執行土地租賃，我們已經有效地實現了這一目標，並且我們樂觀地認為我們能夠在今年完成更多與成長相關的交易。

With that, I will turn the call over to Lance for his closing remarks.

說完這些，我會把電話交給蘭斯，請他做最後發言。

Thanks, Clayton. Together, we achieved what I believe are great first quarter results. I should, however, acknowledge the current macroeconomic backdrop. In these times of uncertainty, we are focusing on the things that we can control, being expeditious in lease negotiations and pre-purchasing tariff impacted construction materials for better pricing.

謝謝，克萊頓。我認為，我們共同取得了第一季的出色業績。然而，我應該承認當前的宏觀經濟背景。在這些不確定的時期，我們專注於我們可以控制的事情，迅速進行租賃談判並預先購買受關稅影響的建築材料以獲得更好的價格。

We screen real-time tenant health metrics so we can be responsive if necessary. Our needs-based retail portfolio is not resistant to market fluctuations, but it is more resilient. As a 155-year-old company, A&B has navigated challenging times before, and I believe our experienced team has the skill to manage through this exposure and deliver long-term results.

我們篩選即時租戶健康指標，以便在必要時做出回應。我們基於需求的零售投資組合並不能抵禦市場波動，但具有更強的彈性。作為一家擁有 155 年歷史的公司，A&B 以前曾經歷過充滿挑戰的時期，我相信我們經驗豐富的團隊有能力應對這種挑戰並取得長期成果。

Before ending my remarks, I'd like to give a special shout out to Tom Lewis, the legendary REIT CEO, who just termed off the A&B board. Tom, thank you, or as we say in Hawaii, Mahalo bruddah, for your service to A&B, your guidance, and most importantly, your friendship.

在結束我的演講之前，我想特別感謝剛卸任 A&B 董事會職務的傳奇房地產投資信託基金首席執行官湯姆·劉易斯 (Tom Lewis)。湯姆，謝謝你，或者像我們在夏威夷說的，Mahalo bruddah，謝謝你為 A&B 做出的貢獻、你的指導，以及最重要的，你的友誼。

With that, I'd like to turn the call over to questions.

說到這裡，我想把電話轉給提問者。

(Operator Instructions)

（操作員指示）

Gaurav Mehta, Alliance Global Partners.

Gaurav Mehta，Alliance Global Partners。

I wanted to start the self-storage transaction. I wanted to get some color on the transaction background. And then I think you also mentioned this opportunity for equity investment in self-storage. I'd like to learn more on that aspect of the transaction as well.

我想開始自助倉儲交易。我想讓交易背景變得更加豐富多彩。然後我想您也提到了自助倉儲股權投資的機會。我也想了解有關交易的更多方面。

Yeah. Hey, Gaurav, it's Lance. Thanks for the question. So you know I'll start with maybe at a high level. This was a really good deal for us. Importantly, I view this as kind of a strategic transaction where we were able to convert non-income producing land from Maui Business Park into long-term rental income, unlike what we've done in the past where it's been traditionally property sales.

是的。嘿，Gaurav，我是 Lance。謝謝你的提問。所以你知道我可能會從高層次開始。這對我們來說確實是一筆好交易。重要的是，我認為這是一種策略性交易，我們能夠將毛伊島商業園區的非創收土地轉化為長期租金收入，這與我們過去傳統的房地產銷售不同。

So that said, this was a 75-year ground lease and we structured it with 45 years of known rent that gave enough certainty to the tenant to be able to fill the rest of the capital stack in terms of the development. And their plan is to build approximately 87,000 square feet of net rentable self-storage in that submarket. And I guess the immediate financial benefit to us is about $0.01 of FFO for 2025. So great strategy, checks the boxes there, but in terms of financial benefits, being able to turn on the FFO immediately was also hugely accretive for us.

所以說，這是一份為期 75 年的土地租賃合同，我們將其構建為 45 年的已知租金，為租戶提供了足夠的確定性，使其能夠在開發方面填補剩餘的資本堆棧。他們的計劃是在該子市場建造約 87,000 平方英尺的淨可出租自助倉儲空間。我估計我們直接獲得的財務利益是 2025 年的 FFO 約為 0.01 美元。這是一個非常棒的策略，但就財務利益而言，能夠立即啟動 FFO 也為我們帶來了巨大的增值。

And I've spoken in the past about our commitment to the Hawaii-focused geography, but really sort of embracing the asset diverse approach. And self-storage is something that I've mentioned as sort of a natural adjacency for us to consider going into in the future. And so this was a nice way to do it. We take a very secure position in a long-term ground lease with the opportunity to invest on the development side in the capital stack. So it's a nominal amount of equity that we're able to put in about 20% of the equity capital stack. But again, a good opportunity for us in a joint venture type structure to enter into this asset.

我過去曾談到我們對以夏威夷為中心的地理區域的承諾，但實際上我們採取的是資產多元化的方法。我曾提到自助倉儲是我們未來考慮進入的一種自然鄰接領域。所以這是一個很好的方法。我們在長期土地租賃中佔據非常安全的地位，並有機會在資本堆疊中投資開發方面。因此，我們能夠投入的股權金額約為股權資本總額的 20%。但這對我們來說也是一個以合資企業形式進入該資產的好機會。

Okay, second question I have is around your comments around some of the macroeconomic uncertainty. Wanted to learn what have you seen and heard from your tenants so far? Have you seen any concerns or softness from your tenants and how you're feeling about your 2025 lease expirations?

好的，我的第二個問題是關於您對一些宏觀經濟不確定性的評論。想了解到目前為止您從租戶那裡看到和聽到了什麼嗎？您是否發現租戶有任何擔憂或負面情緒？您對 2025 年租約到期有何感受？

So I would say that well there's definitely some uncertainty around tariffs. I guess I'll answer the question two-fold. So first, specific to the question about tenants, we have not seen any sort of real-time concerns or issues related to tenants, so we continue to screen sort of our real-time metrics which include weekly -- volume of weekly letter of intent. So registering and measuring tenant interest, we continue to tscreen on tenant sales, we're screening real-time foot traffic to all of our centers. And today, those all remain positive.

所以我想說，關稅方面肯定存在一些不確定性。我想我會從兩個方面來回答這個問題。首先，具體到關於租戶的問題，我們沒有看到任何與租戶有關的即時關注或問題，因此我們繼續篩選我們的即時指標，包括每週——每週意向書的數量。因此，透過登記和衡量租戶的興趣，我們繼續篩選租戶的銷售情況，並篩選所有中心的即時客流量。如今，這些依然是積極的。

I could cite probably a couple of examples where maybe execution timelines have been extended, but these are really individual data points, nothing to form a trend line. And then the one sort of direct impact that we have started to see on the tariff side is in construction costs. And so we do have the build to suit at Maui Business Park. We have been in discussions with others for some potential opportunities as well. And so to try to get ahead of that to the extent that there are opportunities for us to pre-purchase materials specifically on the steel side to get free tariff type pricing, we're taking advantage of that.

我可以舉幾個例子，其中執行時間表可能已經延長，但這些實際上只是單獨的數據點，無法形成趨勢線。然後，我們開始看到關稅方面的一種直接影響是建築成本。因此，我們確實在毛伊島商業園區進行了適當的建設。我們也一直在與其他人討論一些潛在的機會。因此，為了盡量領先於這種情況，我們正在利用這個機會預先購買鋼材等材料，以獲得免費的關稅定價。

Okay, and then maybe lastly as a follow up on the build to suit. I did see that the construction completion moved to 1Q26 from 4Q25. Is that related to your comments around tariffs and macroeconomic uncertainty?

好的，然後也許最後作為後續的構建以適應。我確實看到施工完成時間從 2025 年第四季推遲到了 2026 年第一季。這與您對關稅和宏觀經濟不確定性的評論有關嗎？

No, that was really -- we broke ground late last year and so once we, started moving dirt onsite, we had a better sense of what that timeline was going to look like. And realistically, just given the natural course of construction, it'll be completed in sometime in Q1 of 2026.

不，事實確實如此——我們去年年底破土動工，所以一旦我們開始在現場搬運泥土，我們就能更好地了解時間表會是什麼樣子。實際上，按照自然的建設進程，它將在 2026 年第一季的某個時候完工。

Okay, thank you. That's all I had.

好的，謝謝。這就是我所擁有的一切。

Okay, thanks for the question.

好的，謝謝你的提問。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布、派珀·桑德勒。

Okay. Good morning out there. I think it's still good morning.

好的。大家早安。我認為今天仍然是一個美好的早晨。

So just a few questions here. First off, just to go back on the tariff discussion. Is the -- what is the leasing discussions or when you talk to the tenants, are people -- is it just sort of like a cocktail conversation or are tenants legitimately having concerns about either future leasing plans or what may happen to their business as far as cost of running their operations? I'm just trying to understand if it's just theoretical and just banter or people are actually having a practical impact to the way they lease or are thinking about ordering or opening stores?

這裡只問幾個問題。首先，我們來回顧一下關稅討論。租賃討論是什麼？或者當您與租戶交談時，人們是否只是像雞尾酒會上的談話一樣？或者租戶是否真的擔心未來的租賃計劃或他們的業務在營運成本方面可能會發生什麼？我只是想知道這是否只是理論上的玩笑，或者人們實際上對他們的租賃方式或考慮訂購或開設商店的方式產生了實際影響？

It's a great question, Alex, and this is Lance. No, it's -- we're in obviously some very uncertain times. And for us sort of in real time, we're trying to sort of differentiate between soft data and hard data. So certainly, on the soft data side there's a lot of talk, there's concern. But as I mentioned earlier on the hard data side, we're not really seeing any real time impacts. Leasing activities still remains robust. Again, I can think of a couple of examples, where signing of leases took a little longer than we might have expected, but really hard to say whether that was tariff related. Is there exposure? Certainly going forward, but in terms of what we're seeing in real time, we really haven't seen that flow through yet.

這是一個很好的問題，亞歷克斯，我是蘭斯。不，我們顯然正處於非常不確定的時期。對我們來說，即時地，我們試圖區分軟數據和硬數據。因此，在軟數據方面，肯定存在著許多討論和擔憂。但正如我之前在硬數據方面提到的那樣，我們實際上並沒有看到任何即時影響。租賃活動依然保持強勁。再次，我可以想到幾個例子，簽署租約的時間比我們預期的要長一些，但很難說這是否與關稅有關。有曝光度嗎？當然會繼續發展，但就我們即時看到的情況而言，我們還沒有真正看到這種趨勢。

Okay, and then as we look to the guidance, I think you raised it sort of $0.03, but you had a $0.06 gain. I can understand, some caution -- Yeah, sorry, everyone's doing the same, but that seems like a lot of caution, doesn't it?

好的，然後當我們查看指導時，我認為您將其提高了 0.03 美元，但獲得了 0.06 美元的收益。我可以理解，有些謹慎——是的，抱歉，每個人都在做同樣的事情，但這似乎需要很多謹慎，不是嗎？

Well, we've taken some steps to try to differentiate between our overall FFO and our CRE and corporate related FFO, which really focuses just on the core part of the business. And we did have strong results in Q1. For a variety of reasons, we felt it was appropriate to maintain guidance there. We did have a bigger beat in terms of expectations on the Land Ops side. And so similarly, we felt it was appropriate to flow that beat through and that's where the $0.03 is really coming from.

嗯，我們已經採取了一些措施來嘗試區分我們的整體 FFO 和我們的 CRE 以及公司相關的 FFO，這實際上只專注於業務的核心部分。我們在第一季確實取得了強勁的業績。出於各種原因，我們認為維持那裡的指導是適當的。就陸域行動的預期而言，我們確實取得了更大的成功。因此，同樣地，我們認為讓這個節拍流經是合適的，這就是 0.03 美元的真正來源。

We've talked in the past about Land Ops. And I think our midpoint when we gave initial full year guidance was at about $0.03 attributed to that side of the business. We obviously came in stronger than that. And it's always a little difficult for us to predict, but it is still a focus of ours, and so I was really pleased to be able to see that performance. And I think we're trying to sort of flow that through for the rest of the year.

我們過去曾討論過陸上行動。我認為，當我們給出全年初步指導時，我們的中點約為 0.03 美元，這歸功於該業務。我們顯然比那時更強大。我們總是很難預測，但這仍然是我們關注的重點，所以我很高興能夠看到這樣的表現。我認為我們正在嘗試在今年剩餘時間內順利完成這一目標。

Right. But you also added $0.01 on the development. So it just seems like the guidance increase is overly conservative based on what you executed in the first quarter plus the incremental investment, and we're only at the start of the year.

正確的。但您還在開發上增加了 0.01 美元。因此，根據第一季的執行情況以及增量投資來看，指導成長似乎過於保守，而我們才剛進入年初。

Yeah, look, it's a fair observation, Alex. I would say on that $0.01 for development, we did -- and I'm pretty sure I mentioned this in our first quarter call, that in our full year guidance we were carrying $0.01 for growth in the guidance. And so effectively, what we've been able to do with this DXT deal is cover that nut. So feeling pretty good about the fact that we were able to in the first quarter sort of cover that $0.01, and then I would say, just sort of forward look. On acquisitions, it's -- we're still seeing dislocation in the market, but our investment team is very active. We're looking at a lot of other opportunities. And so I am hopeful that we'll be able to place additional capital going forward. We're just not going to carry it in the guidance.

是的，看，這是一個公正的觀察，亞歷克斯。我想說的是，我們確實為開發投入了 0.01 美元——而且我很確定我在第一季度電話會議上提到了這一點，在我們的全年指導中，我們為增長投入了 0.01 美元。因此，透過這項 DXT 交易，我們能夠有效地解決這個問題。因此，對於我們能夠在第一季彌補 0.01 美元這一事實感到非常高興，然後我想說，這只是向前看。在收購方面，我們仍然看到市場混亂，但我們的投資團隊非常活躍。我們正在尋找很多其他機會。因此，我希望我們能夠在未來投入更多資金。我們只是不會在指導中提及它。

So Alex, this is Clayton just to follow up on what Lance is saying. The Maui Business Park where we had executed that ground lease, we had -- in connection with this lease, we transferred it from Land Operations into CRE. And so the $0.01 that's being referenced is resulting from this deal. It's going to be applicable towards CRE and corporate FFO. Just wanted to make sure that that was understood.

所以亞歷克斯，我是克萊頓，只是為了跟進蘭斯所說的話。我們簽署土地租賃協議的毛伊島商業園區，與此租賃協議相關的，我們已將其從土地營運部門轉移到 CRE。因此，所引用的 0.01 美元是這筆交易的結果。它將適用於 CRE 和企業 FFO。只是想確保這一點能夠被理解。

Okay, and then just finally, just point of clarification. You mentioned that you that you signed -- you addressed 75% of the 50,000 square feet of industrial vacancy outlined in the fourth quarter. but you mentioned something about the tenant having some contingency. Is that contingency on the 75% of the space leased? So perhaps it's not sign seal delivered or what is this contingency referencing?

好的，最後，需要澄清一點。您提到您簽署了協議——解決了第四季度概述的 50,000 平方英尺工業空置面積中的 75%。但您提到了有關租戶有一些應急措施。這是針對 75% 的租賃空間的緊急措施嗎？那麼也許這不是已交付的標誌印章，或者這個意外事件指的是什麼？

Hi, Alex. This is Kit. So we leased two full floors at Kakaako Commerce Center, and that represents over 60,000 square feet of space. And it backfills both the storage facility we referenced previously as well as the office space on the sixth floor that had been vacant for about two years that we talked about quite a bit earlier.

你好，亞歷克斯。這是基特。因此，我們在卡卡科商業中心租了整整兩層樓，總面積超過 60,000 平方英尺。它填補了我們之前提到的儲存設施以及我們之前談到的空置了大約兩年的六樓辦公空間。

And it's a very important deal for both A&B and the tenants, so we moved really quickly to effectuate that lease, and it went economic immediately. Now there are some landlord and tenant obligations around capital that we need to resolve, but we're pretty confident we can get there. And the tenant is already building out that space, demonstrating their commitment to the deal.

這對 A&B 和租戶來說都是一筆非常重要的交易，因此我們迅速採取行動來執行該租約，並且它立即產生了經濟效益。現在我們需要解決一些有關資本的房東和房客義務，但我們非常有信心能夠解決。租戶已開始建造該空間，表明他們對該交易的承諾。

Okay, so just to put that into context, Alex, is that the backfill does include that deal with the contingencies and while we do have a high degree of confidence that we'll be able to work through them, if for whatever reason we couldn't, that would basically reverse out from the occupancy.

好的，亞歷克斯，為了說明這一點，補充人員確實包括處理意外事件，雖然我們非常有信心能夠解決這些問題，但如果出於某種原因我們不能解決，那麼這基本上就會從入住率中逆轉。

Okay, just so I'm clear, did I confuse it? Is this the industrial vacancy you were talking about, or this is a different business office?

好的，我只是想弄清楚，我是不是搞混了？這是您所說的工業空置房嗎？還是另一個商業辦公室？

So about 30,000-plus square feet of that was in the original guidance that we talked about and then the additional amount was that office space on the sixth floor. It's still in the industrial portfolio, but it was built out of office originally.

其中約 30,000 多平方英尺是我們最初談到的指導方針，另外的面積是六樓的辦公空間。它仍然在工業組合中，但它最初是在辦公室外建造的。

Awesome. Okay. Listen, thank you very much.

驚人的。好的。聽著，非常感謝。

Thanks.

謝謝。

Rob Stevenson, Janney.

羅伯史蒂文森、珍妮。

Afternoon. Lance, back to the tariff question, how big of a spike have you seen or are expecting to see on building materials? And what is the ability that you and others have to really stockpile, wood, steel, other items, given the ability there at Maui Business Park and other places to store stuff?

下午。蘭斯，回到關稅問題，您看到或預期建築材料價格將出現多大幅度的上漲？鑑於毛伊島商業園區和其他地方的儲存能力，您和其他人真正儲存木材、鋼材和其他物品的能力如何？

Yeah, hey, Rob. It's kind of hard to answer on a forward look. I guess, some real-time examples steel, for example, we saw about an 8% increase. And we were able to pre-price based on that and to lock that in. Obviously, here in Hawaii, we also have the logistical challenge of getting materials. And so one of the things we've been able to do is to buy, I guess anyone could. But we've been buying and then just storing on site just to take advantage of that.

是的，嘿，羅布。從未來來看，這個問題有點難回答。我想，以一些實時鋼鐵的例子來說，我們看到了大約 8% 的增長。我們能夠據此預先定價並將其鎖定。顯然，在夏威夷，我們也面臨著取得材料的後勤挑戰。因此，我們能夠做的事情之一就是購買，我想任何人都可以。但我們一直在購買，然後在現場存儲，以利用這一點。

And it's -- again, kind of forward-looking and it's really tough to say what sort of price increases we might expect on what materials. But we're trying to take advantage any way we can. Obviously, sometimes it requires us to make commitments sooner in the development process or the TIbuild out process that we might otherwise do.

而且 — — 再次強調，這是一種前瞻性的觀點，我們很難預測哪些材料的價格會上漲到何種程度。但我們正在盡力利用一切可能的方式。顯然，有時它要求我們在開發過程或 TIbuild 過程中儘早做出承諾。

And I think like a lot of people we're having conversations with both our distributors as well as our tenants in trying to sort of share in that risk profile. And so I I'm thinking of one example where we did have a tenant who was willing to basically make a commitment up front to try to get that that cost down. And so we were able to sort of share in that risk profile, but like everyone else, we're just doing what we can to try to mitigate that as much as possible.

我認為，和許多人一樣，我們正在與我們的經銷商以及租戶進行對話，試圖分擔這種風險。因此，我想到一個例子，我們確實有一位租戶，他願意預先做出承諾，試圖降低成本。因此，我們能夠分擔這種風險，但與其他人一樣，我們只是盡我們所能，盡可能地減輕這種風險。

Okay. And then how active given all the turmoil with both rates as well as the stock market, how active has the Hawaii retail industrial transactional market been year-to-date in terms of deals either completed or stuff that's out there in the marketplace today? How would you characterize that versus the last couple of years through up to the beginning of May?

好的。那麼，考慮到利率和股市的動盪，夏威夷零售工業交易市場今年迄今的活躍程度如何？就已完成的交易或目前市場上的交易而言，夏威夷零售工業交易市場有多活躍？與過去幾年截至五月初的情況相比，您如何看待這種情況？

Yeah, so not a lot that I could point to in terms of actually closed transactions. But I had mentioned earlier that our investment team is very active right now. So there are a lot of opportunities that we're circling. And the reason I said I'm sort of hopeful, maybe even optimistic that we'll be able to land a couple of deals sometime in the remainder of the year.

是的，就實際完成的交易而言，我能指出的並不多。但我之前提到過，我們的投資團隊現在非常活躍。因此，我們正在抓住很多機會。我之所以這麼說，是因為我有點充滿希望，甚至樂觀地認為我們能夠在今年剩餘的時間內達成幾筆交易。

Okay. And a point of clarification, the storage development, is that on the entire 5 acres there or is there some piece of that left over for you to do something else with? Is that ground lease the entire 5 acres?

好的。需要澄清的是，倉儲開發是覆蓋全部 5 英畝土地，還是其中還剩下一部分可供您用於其他用途？那塊地租是全部 5 英畝嗎？

It's for the entire 5 acres, yes.

是的，佔地整整 5 英畝。

Okay. And then a couple for Clayton, the $0.30 of FFO related to CRE incorporated 1Q '25, any expected drags on that, as we move throughout the year? Any notable move outs where occupancies could fluctuate down temporarily, etc? Anything else that sort of hits that number and produces any type of material drag, so we think about the remainder of '25 at this point?

好的。然後對於 Clayton 來說，與 CRE 相關的 0.30 美元的 FFO 是在 25 年第一季納入的，隨著我們全年的發展，這是否會受到任何預期的拖累？是否有任何值得注意的遷出情況，導致入住率暫時下降等？還有什麼事情能達到這個數字並產生任何類型的物質阻力，所以我們現在考慮 25 年的剩餘時間嗎？

Hey, Rob. I would say that with respect to what's known, there is no known blips that we're anticipating due to moveouts or the like, so.

嘿，羅布。我想說的是，就已知情況而言，我們預計不會有因搬遷或類似原因造成的任何已知故障。

Okay, that's helpful. And then lastly, the $3 million of JV income, is there anything else abnormal that you're expecting in that line over the remainder of '25 or does that line, go back to the $700,000, $1 million, $250,000 it's typically been over the remainder of the year or is there something else coming through there as we think about the remainder of '25?

好的，這很有幫助。最後，300 萬美元的合資企業收入，您預計在 25 年剩餘時間內這條線還會出現其他異常情況嗎？或者這條線會回到今年剩餘時間內通常的 70 萬美元、100 萬美元、25 萬美元的水平，或者在我們考慮 25 年剩餘時間內是否還會出現其他情況？

So as far as that JV income, that as I was mentioning in in the prepared remarks. It was somewhat of a one-time type of event with respect to the resolution of those contingencies. And so we're not anticipating there to be anything else unusual, that's not to say that that there wouldn't be variability. But we're not anticipating anything over the balance of the year.

就合資企業收入而言，正如我在準備好的演講中提到的那樣。就解決這些意外事件而言，這在某種程度上是一次性。因此，我們預計不會出現任何其他異常情況，但這並不是說不會發生變化。但我們並不期待今年餘下時間會發生什麼事。

Okay. Thanks, guys. Appreciate the time, have a good night.

好的。謝謝大家。珍惜時間，祝你晚安。

Thanks.

謝謝。

(Operator Instructions) Mitch Germain, Citizens Bank.

（操作員指示）Mitch Germain，公民銀行。

Thank you. First of all, guys, congrats on the quarter. Let me ask Rob's question differently. Are there any other kind of legacy issues that could be recollected, that could be, in the numbers going forward or was that just a one-off situation?

謝謝。首先，各位，恭喜本季取得的成績。讓我以不同的方式問 Rob 這個問題。是否還有其他類型的遺留問題需要回憶，這些問題可能是在未來的數字中出現，還是只是一次性的情況？

Hey, Mitch, it's Lance. I think there's always that possibility. We want to sort of leave that door open in that this is an area of the business that we're looking to simplify out. So there are some opportunities there. It's very difficult to predict when or if they may occur. But it's certainly possible. But just to support Clayton's comments in terms of our forward look over the next three quarters, we're not anticipating anything out of the ordinary.

嘿，米奇，我是蘭斯。我認為這種可能性始終存在。我們希望將這一門敞開，因為這是我們希望簡化的業務領域。因此那裡存在一些機會。很難預測它們何時發生或是否會發生。但這確實是有可能的。但是，為了支持克萊頓對未來三個季度的展望，我們並不期待任何異常的事情發生。

Got you. When you guys originally put your guidance together, was there any anticipation of external growth that was included in those numbers or is Maui Business Park, the self-storage ground lease, is that just additive? How should we think about that?

明白了。當你們最初制定指導意見時，這些數字中是否包含了對外部成長的預期，或者毛伊島商業園區、自助倉儲地面租賃是否只是附加的？我們該如何看待這個問題？

Yeah. Mitch, hi, this is Clayton. So with respect to the growth in our guidance, we did have $0.01 of FFO for the 2025 year. And so effectively what happens as a result of this Maui Business Park deal that we just closed, that covers it. And so we do have obviously the balance of the year. Hopefully, we will see other opportunities be realized. So we'll see how it plays out.

是的。米奇，你好，我是克萊頓。因此，就我們指導的成長而言，我們在 2025 年的 FFO 確實為 0.01 美元。因此，我們剛完成的毛伊島商業園區交易實際上帶來了什麼後果？因此，我們顯然擁有今年的餘額。希望我們能看到其他機會的實現。因此我們將拭目以待。

And I would just add -- And we certainly have now -- I was just going to add we certainly have aspirations of placing additional capital later this year. But of course as the months go on, the impact the FFO for the calendar year is going to diminish. And that's why we felt like the penny was the right number when we put together our initial guidance.

我只想補充一點——我們現在當然有——我只是想補充一點，我們當然希望在今年晚些時候投入更多資金。但當然，隨著時間的推移，日曆年的 FFO 的影響將會減弱。這就是為什麼我們在製定初步指導時覺得一分錢是正確的數字。

Got you. Last one for me, same store. Obviously, strong 1Q, you got the leasing done in your industrial portfolio. Obviously, your guidance implies a deceleration. So is there anything specific that you want to call out as to what could be driving a reduced pace of growth in the back part of the year?

明白了。對我來說是最後一個，同一家商店。顯然，第一季表現強勁，您的工業投資組合中的租賃業務已經完成。顯然，您的指導暗示著減速。那麼，您能否具體指出導致今年下半年經濟成長速度放緩的原因是什麼？

So I'll take this from a big picture and then, I'll ask Clayton and Kit to add any additional color they may want to. We had identified up front a handful of very important leases and other operational milestones that we needed to hit. That was factored into our full year guidance. I know that Clayton was purposeful in comments in providing that full year guidance initially about the fact that the earnings may be episodic throughout the year, but, this is how we looked at that full year.

因此，我會從整體上了解這一點，然後，我會要求 Clayton 和 Kit 添加他們想要的任何其他顏色。我們預先確定了一些非常重要的租約以及我們需要實現的其他營運里程碑。這已計入我們的全年預期。我知道克萊頓最初在提供全年指引時有意指出，全年的盈利可能會不定期地出現，但這就是我們對全年的看法。

And so really strong results, some of that quite frankly was just kudos to the team for being able to tackle a lot of the things that we identified over the course of the year in Q1. So I would describe it less of slowing for the remainder of the year as opposed to just sort of pulling forward some of the things that we had identified into Q1.

因此，取得了非常強勁的成果，坦白說，這在一定程度上要歸功於團隊能夠解決我們在第一季發現的許多問題。因此，我認為今年剩餘時間內的成長不會放緩，而只是將我們在第一季發現的一些事情提前。

And just to add on to what Lance is saying, but we also explicitly stated in the prepared remarks is the fact that the guidance does acknowledge the fact that we have this uncertainty overhang. And so we did take that into consideration as we settled in on this guidance.

補充蘭斯所說的內容，但我們在準備好的評論中也明確指出，該指南確實承認我們存在這種不確定性。因此，我們在製定該指導方針時確實考慮到了這一點。

Great. Appreciate your time, guys. Thank you so much.

偉大的。謝謝你們的時間，夥伴們。太感謝了。

Okay, thanks, Mitch.

好的，謝謝，米奇。

All right. Since there are no further questions at this time, I will now turn the call over to Clayton Chun. Please continue, sir.

好的。由於目前沒有其他問題，我現在將電話轉給 Clayton Chun。先生，請繼續。

Thank you, operator, and thank you all for joining us today. If you have any follow up questions, please feel free to call us at 808-525-8475 or email us at investorrelations@abhi.com. Aloha and have a great day.

謝謝接線員，也謝謝大家今天加入我們。如果您有任何後續問題，請隨時致電 808-525-8475 或發送電子郵件至 investorrelations@abhi.com。你好，祝你有美好的一天。

Alright, ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

好的，女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。