Alexander & Baldwin’s net income surges on popularity of new condominium

Brisk sales of units in a Kakaako condominium tower helped lift Alexander & Baldwin Inc.’s net income for the third quarter to $10.2 million, or 21 cents per share, compared to $4.4 million, or 10 cents per share a year earlier.

"We’re pleased with the development sales," said Stanley Kuriyama, A&B CEO, in a statement. "At the Collection condominium project on Oahu, we’ve sold 81 percent of the 450 units released for sale to date."

A&B on Oct. 15 broke ground at the Collection, which is being built at the old CompUSA location at the corner of Ala Moana Boulevard and South Street.

The company said revenue in the third quarter totaled $153.4 million compared to $64.8 million for the third quarter of last year.

Honolulu-based A&B said the increase in income was driven by real estate sales, leasing income and earnings from the company’s Grace Pacific subsidiary, a road construction company. A&B bought Grace Pacific in October of last year.

Real estate earnings were up 49 percent in the quarter, the company said. Development and sales operating profit more than doubled in the quarter and leasing net operating income was up 9 percent.

The profit growth in those areas offset a $7.3 million operating loss in the company’s agribusiness segment caused by lower sugar prices and lower production, A&B said. The $7.3 million loss compared to an operating profit of $2.2 million a year ago.

"Another recent highlight is our investment in a second solar farm on Kauai," Kuriyama said. "The 12-megawatt facility, the largest solar facility in the state, was placed in service in September and is now delivering much-needed, low-cost renewable energy to Kauai residents."

A&B will get a tax benefit from the $23.8 million invested in the solar farm.

The company said its natural materials and construction segment, which includes Grace Pacific, reported an adjusted operating profit of $7.1 million. A&B said Grace did better in the second quarter. Sales moderated in the third quarter because of a slower-than- anticipated pace of jobs released by the City and County of Honolulu and bad weather reducing the number of available paving days.

Net income for the nine months ended Sept. 30 was $52.8 million, or $1.07 per diluted share, compared to $14.4 million, or 33 cents per diluted share for the same period a year ago. Revenue for the nine months was $395.1 million, up from $160.3 million last year.

A&B owns nearly 89,000 acres in Hawaii, making it the state’s fourth largest private landowner. Its shares rose 27 cents to $39.34 on Wednesday. The shares are down from a 52-week-high of $45.16 reached on March 25. The earnings were released after the close of trading.