Alexander and Baldwin Q3 Report Highlights Maui Projects
Alexander & Baldwin has released it’s third quarter report for 2018. The company closed the sale of the Lahiana Square Center and three adjacent parcels on Maui for gross proceeds of $11.3 million. A&B also sold 313 acres to the State of Hawai`i for the expansion of the Kahului Airport for $8.6 million.
Construction continues on schedule at the 94,000-square-foot, Safeway-anchored Ho`okele Shopping Center, adjacent to Maui Business Park in Kahului. As of September 30, the center was 64% pre-leased.
The company also reports the sale of 22 units at the Kamalani workforce housing development on Maui, and joint venture distributions from the sale of 24 units at the sold-out Keala ʻo Wailea Maui residential development, generated a total of $11.4 million.
A&B president Chris Benjamin said the company is also making good progress in the identification of viable farming initiatives for Maui landholdings.
“Our broader strategic agenda and simplification efforts continue. We were pleased to close the sales of a large agricultural parcel on Maui and our interest in the Ka Milo development joint venture. With the latter sale and the early October closing of the last unit at Keala ʻo Wailea, we have closed out two more development projects. We’re positioned to continue de-levering our balance sheet and closing out additional development projects, consistent with our strategic intent,” said Benjamin.
He continued saying, “While our efforts to improve Materials & Construction operating performance continue, overall segment results fell short of expectations. Improvements in paving revenues and margins were offset by lower results from quarry operations. While we will not meet our full-year goals for the segment, we are positioning the business for better performance in the future.”