A&B Reports Fourth Quarter and 2014 Operating Results
Alexander & Baldwin (NYSE: ALEX) has announced $147.3 million in full-year operating profits for 2014, up from $101.4 million in 2013. Operating profit in 2014 was tallied at $91.1 million, compared with $64.7 million in 2013. The improved numbers are a result of increased real estate sales, higher leasing income and a full year of results from Grace Pacific. The year’s figures only included Grace results from Oct. 1, when the Grace was acquired.
The company reported a revenue of $560 million in 2014, compared with 365.2 million in 2013. It has not yet reported net income due to additional time needed to finalize financial statement for 2014, following an extended review of its deferred income tax accounts. A&B will be filing for an extension to file its 2014 Form 10-K.
A&B reported that its Waihonua residential development was completed in Nov. 2014, with all 340 units closed by Jan. 2015. The company brought in $35 million in fourth-quarter development revenue from the sale of seven acres at Maui Business Park, in addition to three at Kahala Avenue properties. Its leasing Net Operating Income was $19 million in quarter four, and $77.3 million for the full year, up 12 percent. Fourth quarter Materials & Construction EBITDA increased by 50 percent to over $10 million.
“Solid fourth quarter operating performance from our real estate segments and Grace Pacific capped off a positive year of operating results in 2014,” said Stanley M. Kuriyama, A&B chairman and chief executive officer. “The fourth quarter saw three closings for seven acres totaling $14 million of sales revenue at our Maui Business Park project and closings of three lots in our Kahala Avenue portfolio for $21 million of revenue. Nineteen joint venture units closed during the quarter, including 12 from our recently completed 340-unit Waihonua high-rise project in Kakaʻako. The balance of the Waihonua units closed in January, thus bringing this project to a very successful conclusion. In October 2014, we broke ground on our 464-unit Collection project, also located in Kakaʻako. Sales at The Collection have been excellent–93% of the 450 units released for sale have already been pre-sold, with 88% of the released units sold under binding contracts–the vast majority to local buyers.”
Kuriyama noted that the combination of positive performances by A&B properties and subsidiaries drove the full-year operating profit for 2014 up by 41% from 2013, despite a full-year operating loss of $12 million in agribusiness.
“We continue to expect good sales activity at our development projects to carry over into 2015,” he reported.