This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Alexander & Baldwin One Year After the Split

NEW YORK ( TheStreet) -- It's been just more than a year since the former Alexander & Baldwin, separated into two publicly traded companies, one keeping the company's original name Alexander & Baldwin (ALEX - Get Report), and the other Matson Navigation (MATX - Get Report).

Prior to the separation, this was an interesting combination of businesses, real estate and shipping. Given their differences however, it was also ripe for some sort of transaction in order to unlock value. Judging by the results so far, overall the transaction has been a success. While Alexander and Baldwin shares are up 62% since the transaction was completed, Matson Navigation shares are down about 3%.

ALEX Chart ALEX data by YCharts

I originally took a position primarily because of the company's real estate holdings, now owned by Alexander & Baldwin, which at year end 2012 included 87,240 acres in Hawaii. While three quarters of this land is located in Maui, much of it, nearly 57,326 acres is currently used for agriculture, primarily sugarcane. Another 29,170 acres are for watershed/conservation, so not all of this land is available for development. There's also an additional 467 acres in eight other states, and a substantial portfolio of commercial real estate, that at year-end included 19 properties in Hawaii (1.4 million square feet), and 23 properties on the mainland (6.5 million square feet). But needless to say, this is a compelling portfolio of real estate.

Last month, the company expanded its footprint through the acquisition of Hawaiian construction company Grace Pacific for $235 million in stock and cash. This should be a positive for the Alexander & Baldwin, and according to management, should also allow it to begin paying a small dividend, a practice it stopped last year, when the company separated.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ALEX $37.09 0.00%
MATX $52.03 0.00%
AAPL $118.03 0.00%
FB $105.41 0.00%
GOOG $748.15 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs