A&B more than doubles profit

Major Hawaii land and shopping center owner Alexander & Baldwin Inc. more than doubled its profit in the third quarter from better real estate operations and reduced expenses.

The Honolulu-based company Thursday reported earning $15.6 million in the three months ended Sept. 30, up from $6.6 million in the same quarter last year.

A&B earned more from property sales that included 313 acres on Maui bought by the state for $8.6 million to expand Kahului Airport.

Other real estate sales included workforce housing and resort condominiums on Maui along with a partial interest in a Hawaii island residential project.

Operating profit for real estate sales totaled $13.1 million in the third quarter, up from $10.4 million a year earlier.

A&B said it is positioned to continue finishing or exiting real estate development projects as it concentrates more on a portfolio of retail and other commercial real estate leased to tenants.

Operating profit from this portfolio was $15.9 million in the third quarter, up from $13.6 million a year earlier. A&B said lease renewals and new tenants generated more rent.

A couple of expenses A&B had last year were lower or absent in the recent quarter and also helped boost net income.

A&B’s income tax expense was $1 million in the third quarter compared with $3.7 million a year earlier. And because A&B became a real estate investment trust late last year, the company had no expenses in the recent quarter for making the transition compared with $4.4 million in last year’s third quarter.

One part of A&B that delivered diminished results was asphalt paving and rock quarry subsidiary Grace Pacific where operating profit dropped to $3.4 million in the third quarter from $6.5 million a year earlier.

Shares of A&B stock closed Thursday at $19.77 before the earnings announcement. That price is above a 52-week low of $19.31 on Monday. The 52-week high was $29.84 on Dec. 4.

THIRD-QUARTER NET

$15.6 million

YEAR-EARLIER NET

$6.6 million