Alexander & Baldwin Inc. cashed in big by selling Maui Mall earlier this year in a $53 million deal that helped the company produce a more than sixfold increase in first-quarter profit.
Honolulu-based A&B announced Thursday that it earned $33.4 million in the January-March period, up from $5 million in the same quarter last year. Revenue about tripled to $94.9 million from $32.9 million.
"The company is performing well," A&B chairman and CEO Stan Kuri yama said on a conference call with stock analysts.
Selling Maui Mall in January drove most of the gain, though other A&B operations including sugar cane farming and road paving also contributed to profits.
The operating profit from real estate sales totaled $52.3 million in the first quarter, compared with $2.4 million a year earlier.
Besides Maui Mall, real estate sales in the recent quarter included two land parcels on Maui, two residential properties at the Kauai resort Kukui ‘ula and deferred gains related to three mainland properties sold in December.
A&B said the Kukui’ula sales, which include two in the quarter and three more since then, were a highlight given that the company sold 10 residential properties there during all of last year.
"Sales activity has really picked up," Chris Benjamin, A&B president and chief operating officer, said on the conference call.
The five Kukui’ula sales to date include three lots for $1.5 million on average, a cottage for $2.7 million and a duplex for $2.8 million. Benjamin said another 10 sales at Kukui’ula are in escrow, including six villas for an average $4.5 million.
In the leasing segment of A&B’s real estate business that generates rental income from tenants at shopping centers, warehouses and other commercial properties including much of downtown Kai lua, operating profit rose 8 percent to $11.8 million in the first quarter from $10.9 million a year earlier.
At A&B’s road paving subsidiary Grace Pacific, operating profit totaled $3.4 million, which was lower than anticipated because of inclement weather and subcontractor delays. A&B bought Grace in October, so there was no year-ago comparison.
A&B generated a $3 million operating profit in its agriculture division that includes Maui sugar plantation Hawaiian Commercial & Sugar Co. That was down from $3.8 million a year ago.
Shares of A&B stock closed Thursday up 46 cents at $38.30 before the earnings announcement. A&B stock over the last 52 weeks has closed between a high of $45.92 on July 18 and a low of $33.15 on May 13.
