This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Alexander & Baldwin: Say Aloha to Hawaiian Real Estate

Stocks in this article: ALEX MATX PIR BWLD WMT

By Chris Katje

NEW YORK (TheStreet) -- Alexander & Baldwin (ALEX - Get Report) may be the best real estate company in paradise, and one of the least known.

A&B has a huge amount of commercial, residential and agricultural land in Hawaii. With high tourism dollars and disposable income of residents, the economy of Hawaii continues to thrive. Investors should consider following Alexander & Baldwin into Hawaii to capitalize on rich land assets and one of the strongest real estate portfolios available.

On June 29, Matson (MATX) completed the spin-off of Alexander & Baldwin. The break-up split up a company founded in 1870 into two unique companies. One company (Matson) deals with the transportation business, while the other (Alexander & Baldwin) maintains the real estate and land assets. Alexander & Baldwin operates its A&B Properties real estate segment along with several construction and natural reserve assets.

A&B Properties has 87,000 acres of properties and over eight million square feet of retail space. Real estate assets are spread out across Hawaii, Arizona, California, Colorado, Georgia, Nevada, Texas, Utah and Washington. A&B's current push is towards acquiring and developing properties in Hawaii.

Alexander & Baldwin's real estate segment has been on an acquisition spree, which should cause investors to take note. Since the separation from Matson, the company has spent over $1 billion on deals. Here is a look at some of the larger deals done by the company:

  • Alexander & Baldwin acquired Pearl Highlands, a West Oahu retail property with over 400,000 square feet. The property is anchored by retailers including Sams Club, Pier One Imports (PIR), and Buffalo Wild Wings (BWLD). The acquisition, priced at $141.5 million closed on Sept. 17. The acquisition increased Hawaii's commercial portfolio square footage by 25% at the time. The deal made Alexander & Baldwin the second-largest owner of retail properties in the state.
  • On Sept. 10, Alexander & Baldwin acquired a residential portfolio that consists of some premium properties in Hawaii. The company is paying $97 million for the portfolio highlighted by 27 properties located on Kahala Avenue. The street is near the Kahala Hotel & Resort and Waialeee Country Club and is one of the premier residential areas in the state. Included in the purchase was agricultural and preservation zoned land as well. Amazingly enough, the land only value of the acquired properties is $117.6 million. Investors should note  the company plans to reposition, refurbish, and resell in the next three to five years.
  • The company's most recent acquisition was from the Kaneohe Ranch and Harold K.L. Castle Foundation. Alexander & Baldwin spent $373 million to acquire a large portfolio of retail and light industrial properties. The acquisition also comes with 585 acres of preservation-zoned land and 76 acres of agriculture zoned land.

Another key growth item for Alexander & Baldwin is its focus on creating communities. On April 9, the company announced its plans for a unique community in Kakaako. Through a partnership with Kamehameha Schools, which owns the land, Alexander & Baldwin is creating a property called "The Collection." Prices of apartments range from $300,000 (one bedroom) to $700,000 (three bedrooms). The 43-story building will also have retail properties and townhomes. Alexander & Baldwin maintains an option to buy the property outright from Kamehameha Schools.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs