Alexander & Baldwin, Inc. (ALEX): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect how Alexander & Baldwin, Inc. actually makes its money as a pure-play Hawai'i commercial real estate investment trust (REIT), and honestly, it's a masterclass in local dominance. We've mapped out their entire nine-block strategy, showing you how they lock in stable income-think $50.2 million in Q3 2025 rental revenue-from owning the largest grocery-anchored retail centers and maintaining a 95.6% leased occupancy across their 4.0 million square feet. If you want to see the exact partnerships, the key activities like strategic industrial development, and the specific revenue streams that underpin their $1.66 billion asset base as of September 30, 2025, check out the canvas breakdown right below.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Key Partnerships

You're looking at the relationships Alexander & Baldwin, Inc. (ALEX) relies on to execute its commercial real estate strategy as of late 2025. These aren't just names on a contract; they represent capital access, development capacity, and legacy resolution.

Real estate joint ventures (JVs) for development projects

Legacy joint ventures still contribute to the Land Operations segment, though the focus is clearly shifting to the core Commercial Real Estate (CRE) portfolio. For the first quarter of 2025, unconsolidated legacy joint ventures provided $3.0 million in margin to Land Operations operating profit. Alexander & Baldwin, Inc. reported that Land Operations operating profit was $4.9 million for Q1 2025 overall. By the second quarter of 2025, income from operations at a legacy joint venture was a driver for the $13.9 million in Land Operations operating profit. As of June 30, 2025, the balance sheet reflected that Investments in real estate joint ventures and partnerships were valued at $5,907 thousand.

We see the impact of these relationships in the financial reporting:

The company continues to use capital-efficient methods, like executing a 75-year ground lease at Maui Business Park Phase II, which is expected to contribute $0.01 of Funds From Operations (FFO) per diluted share in 2025. That lease was with a prominent self-storage developer.

Financial institutions providing the $450 million unsecured revolving credit facility

Access to capital remains central, and Alexander & Baldwin, Inc. recently restructured its debt to optimize maturity and cost. On November 6, 2025, the company announced an amendment to its unsecured revolving credit facility, which maintained its existing borrowing capacity of $450 million. To support strategic growth, they executed a new $200 million term loan facility. At closing, the full $200 million term loan was drawn to repay the $191 million outstanding balance on the revolver. This move extends the weighted average maturity of borrowings by approximately one year. The new term loan matures on November 3, 2030, and interest rate swaps lock in an all-in weighted average fixed rate of 4.69% for that amount.

Here's the quick math on the facility amendment:

The company's total liquidity, as of March 31, 2025, was $323.9 million, which included $307.0 million available on the revolving line of credit.

Hawaiian Electric for the EV charger installation pilot program

While specific 2025 partnership metrics with Hawaiian Electric for an EV charger installation pilot program involving Alexander & Baldwin, Inc. aren't explicitly detailed in recent earnings, the utility has its own programs that property owners like ALEX participate in. Hawaiian Electric received approval for a five-year pilot program to encourage EV adoption by offering lower time-of-use rates for charging during midday hours. Separately, the Charge Ready Hawaii Pilot Project, approved by the Public Utilities Commission, was set to cover the cost of installing make-ready infrastructure for a minimum of four and a maximum of six Level 2 charging ports per site at roughly 30 commercial sites across Oahu, Maui County, and Hawaii Island over three years. This infrastructure covers up to 180 Level 2 charging ports total.

Local and national construction/development contractors

Development activity relies on these on-the-ground partners. For instance, the execution of a 75-year ground lease at Maui Business Park Phase II involved a 'prominent self-storage developer.' Alexander & Baldwin, Inc. noted that with this new relationship, they have an opportunity to invest in the asset's development alongside the partner. Furthermore, Q2 2025 saw the start of pre-construction for two new buildings at Komohana Industrial Park, which includes replacing an existing structure with a 91,000-square-foot build-to-suit distribution center pre-leased to Lowe's and a 30,000-square-foot spec building. These projects require coordination with general contractors and subcontractors.

Mahi Pono, LLC for former agricultural land management

This partnership reached a definitive end in mid-2025, significantly altering the Land Operations structure. On June 17, 2025, Alexander & Baldwin, Inc. entered a Termination Agreement with Mahi Pono Holdings, LLC. As part of this, ALEX transferred its 50% ownership in East Maui Irrigation Company, LLC, and agreed to pay Mahi Pono $55.3 million over four years. ALEX also agreed to forego receiving a payment of $2.7 million. The company is simplifying its carrying costs in Land Operations, with the annual run rate decreasing from a range of $4 million to $5 million to $3.75 million to $4.5 million following the resolution of legacy obligations.

The payment schedule for the termination is concrete:

• Payment upon execution (June 2025): $10.0 million
• Payment on the first anniversary: $12.65 million
• Payment on the second anniversary: $12.65 million
• Payment on the third anniversary: $10.0 million
• Payment on the fourth anniversary: $10.0 million

The total payment commitment to Mahi Pono under this agreement is $55.3 million.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Key Activities

You're focused on the core engine of Alexander & Baldwin, Inc. (ALEX) operations, which centers on managing and growing its Hawaii-exclusive commercial real estate portfolio. This involves constant, hands-on execution across leasing, development, and asset monetization.

The primary activity is the ownership, operation, and management of the existing physical assets. As of the third quarter of 2025, Alexander & Baldwin, Inc. owns, operates and manages approximately 4.0 million square feet of commercial space in Hawai\'i.

In-house leasing and property management is a critical function, directly impacting the revenue quality. The leased occupancy rate as of September 30, 2025, stood at 95.6%. This activity is supported by strong leasing spreads achieved in the third quarter of 2025:

• Comparable blended leasing spreads across the improved portfolio: 4.4%.
• Industrial segment leasing spreads: 6.0%.
• Retail segment leasing spreads: 2.4%.

Strategic development is heavily weighted toward industrial assets to meet market demand. A key example is the redevelopment at Komohana Industrial Park, which involves vertical construction of two new Class A industrial buildings totaling approximately 121,000 square feet of gross leasable area (GLA). One of these buildings is a 91,000-square-foot build-to-suit distribution center pre-leased to Lowe\'s.

Monetizing legacy Land Operations assets is a distinct, ongoing activity aimed at simplification. For the third quarter of 2025, the revenue generated from Land Operations was negligible at $35,000, a significant drop from $12.6 million in the prior year period.

The final key activity set involves the necessary corporate functions to maintain its status as a publicly-traded Real Estate Investment Trust (REIT). This requires rigorous investor relations to manage market expectations, especially following the Q3 2025 report where Funds From Operations (FFO) were $21.4 million, or $0.29 per diluted share.

Here's a look at the composition of the Commercial Real Estate portfolio driving these activities as of late 2025:

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Key Resources

You're looking at the core assets that power Alexander & Baldwin, Inc.'s (ALEX) real estate operations as of late 2025. These aren't just line items; they are the foundation of their market position in Hawai'i.

The most tangible resource is the sheer scale of their owned and managed properties. Alexander & Baldwin, Inc. is the state's largest owner of grocery-anchored, neighborhood shopping centers, a critical differentiator in the local market. This portfolio is anchored by a significant physical footprint.

The land holdings represent a long-term strategic advantage, especially the ground lease component. For instance, a recent 75-year ground lease was executed for 4.7 acres at Maui Business Park Phase II, showing active management of this land bank.

The longevity of Alexander & Baldwin, Inc. translates directly into irreplaceable local knowledge. The company boasts a 155-year history in Hawai'i, deeply embedding its operational teams in the state's economic and regulatory landscape.

This history supports their in-house capabilities, which are crucial for maintaining high asset performance. You can see the effectiveness of their management and leasing expertise through the latest operating metrics:

• Leased Occupancy across the portfolio as of September 30, 2025: 95.6%
• Comparable leasing spreads for the improved property portfolio in Q3 2025: 4.4%
• Total improved-property leases executed in Q3 2025: 49
• Total square footage leased in Q3 2025: Approximately 163,800 sq. ft.

The leasing spreads break down further, showing strength in specific sectors during the third quarter of 2025: retail at 2.4% and industrial at 6.0%. That's the hard data on what their teams are bringing in right now.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Value Propositions

Alexander & Baldwin, Inc. offers a value proposition deeply rooted in its exclusive focus on high-quality commercial real estate stewardship across the Hawaiian Islands.

Largest owner of grocery and drug-anchored retail centers in Hawai'i. This positioning provides essential, daily-need access for local communities. Alexander & Baldwin, Inc. is the state's largest owner of grocery-anchored, neighborhood shopping centers. The firm manages approximately 4.0 million square feet of commercial space in Hawai'i. This portfolio includes 21 retail centers, 14 industrial assets, and four office properties, alongside 146 acres of ground lease assets as of September 30, 2025.

Stable, needs-based retail portfolio resilient to tourism fluctuations. The emphasis on necessity-driven tenants provides a revenue base less susceptible to the volatility of the tourism sector. The overall leased occupancy across the improved property portfolio stood strong at 95.6% as of September 30, 2025. During the third quarter of 2025, comparable leasing spreads for the entire improved portfolio averaged 4.4%.

The leasing performance highlights the strength across different asset classes for Alexander & Baldwin, Inc. during Q3 2025:

Furthermore, a significant lease renewal executed subsequent to the quarter-end in Kailua Town achieved an 11% lease renewal spread, showing continued pricing power in key locations. This is the kind of granular performance that matters.

Local, in-house management team providing a trusted partner relationship. This translates into operational expertise specific to the Hawai'i market dynamics, which is critical for managing a portfolio of this nature. The company's CRE operating profit for the third quarter of 2025 was $22.7 million.

High-quality industrial and office spaces with strong leasing spreads. The industrial segment demonstrated particular strength in Q3 2025 with the 6.0% comparable leasing spread. The company is actively growing this segment, with vertical construction underway for a build-to-suit facility at Maui Business Park and groundbreaking at Komohana Industrial.

Commitment to sustainability and community well-being (Kokua Giving Program). Alexander & Baldwin, Inc. targets at least one percent of A&B's pre-tax income for charitable giving through this program. While 2025 figures aren't fully detailed, in 2022, the Kokua Giving contributions totaled $975,000 to 181 nonprofit organizations across Hawai'i. The company also set environmental targets, including a 35% reduction of GHG Scope 2 emissions by 2025 from a 2017 baseline.

You'll want to track the FFO (Funds From Operations) related to CRE and Corporate, which was $21.7 million, or $0.30 per diluted share, in Q3 2025.

Finance: draft 13-week cash view by Friday.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Customer Relationships

Direct relationship via in-house property managers and leasing agents.

The operational success of Alexander & Baldwin, Inc.'s Commercial Real Estate segment is directly tied to its hands-on management approach. As of September 30, 2025, total leased occupancy across the portfolio stood at 95.6%. This high retention and acquisition rate is supported by active leasing efforts throughout the year.

Here's a look at the leasing activity from the first half of 2025:

The leasing spreads demonstrate pricing power; for instance, Q2 2025 industrial leasing spreads reached 6.0% in Q3 2025 and 4.7% in Q2 2025. Furthermore, a key lease renewal in Kailua Town subsequent to Q3 2025 achieved an 11% lease renewal spread.

Commercial Café Tenant Portal for 24/7 self-service and autopay.

Alexander & Baldwin, Inc. provides tenants with a digital channel for convenience. The Commercial Café Tenant Portal offers:

• 24/7 access to services.
• Self-service account management.
• Ability to check account balances.
• Payment processing and enrollment for autopay.

Community-focused approach, treating tenants as part of the ohana.

Alexander & Baldwin, Inc. states that its tenants become part of its ohana. This philosophy supports the high portfolio occupancy, which was 95.6% as of September 30, 2025. The company's Commercial Real Estate segment owns, operates, and manages approximately 3.5 million square feet of space in Hawai'i, including 21 retail centers, 14 industrial assets, and four office properties.

Dedicated local property management offices across all major islands.

The company supports its direct relationship model with physical, local property management offices to help tenants.

• OAHU: Tel: (808) 525-6692
• WINDWARD OAHU: Tel: (808) 548-0901
• MAUI: Tel: (808) 872-4325
• KAUAI (Port Allen): Tel: (808) 335-2749
• KAUAI (The Shops at Kukui'ula): Tel: (808) 742-9545
• WAIKOLOA: Tel: (808) 886-8822

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Channels

You're looking at how Alexander & Baldwin, Inc. (A&B) gets its value proposition-high-quality Hawai'i commercial real estate-into the hands of customers. The primary channel is, naturally, the physical properties themselves, which form the core of their offering.

As of late 2025, Alexander & Baldwin, Inc. operates a substantial portfolio across the islands, totaling approximately 4.0 million square feet of commercial space under management. This physical footprint is segmented across three main types of income-producing properties, plus significant ground lease acreage.

Direct tenant acquisition is heavily managed through an in-house leasing team. This team is responsible for the day-to-day execution of securing occupancy. For instance, during the third quarter of 2025, Alexander & Baldwin, Inc. executed 49 leases for improved properties. This activity covered approximately 163,800 square feet of gross leasable area and brought in $3.3 million of annualized base rent. This direct approach allows for control over tenant mix and lease terms, which is critical given their focus on grocery-anchored centers.

Here are some key metrics showing the direct channel's output for that period:

• Comparable blended leasing spreads averaged 4.4% for Q3 2025.
• Industrial property leasing spreads were stronger, hitting 6.0% in Q3 2025.
• Total leased occupancy across the portfolio stood at 95.6% as of September 30, 2025.

While the in-house team handles direct negotiations, external commercial real estate brokers definitely play a role in market reach, though specific transaction volume through platforms like LoopNet isn't detailed in public filings. For shareholder communication, the Investor Relations website, investors.alexanderbaldwin.com, serves as the official channel where documents, like the Q3 2025 earnings materials, are made available after market close.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Customer Segments

You're mapping out the customer base for Alexander & Baldwin, Inc. (ALEX) as of late 2025. Honestly, it's a focused group, heavily weighted toward the commercial real estate side in Hawai'i, but with a distinct, though sometimes volatile, land sales component. Here's the breakdown of who keeps the lights on and who holds the stock.

Local and national commercial tenants (retail, industrial, office).

This segment is the core engine for Alexander & Baldwin, Inc., driving the majority of the recurring revenue through its owned, operated, and managed portfolio across the islands. They are the direct users of the physical space Alexander & Baldwin, Inc. provides.

As of September 30, 2025, the Commercial Real Estate (CRE) segment managed a portfolio totaling approximately 4.0 million square feet of commercial space in Hawai'i. This space is segmented across several property types, which you can see broken down here:

Tenant demand remains strong, evidenced by high occupancy rates and positive leasing spreads. For the third quarter of 2025, the portfolio achieved a Leased Occupancy rate of 95.6%, which was an increase of 160 basis points year-over-year. The Economic Occupancy stood at 94.3%.

When tenants renew or sign new leases, Alexander & Baldwin, Inc. is seeing favorable terms, especially in the industrial sector. Here are the leasing spread results from the third quarter of 2025:

• Retail leasing spreads: +2.4%.
• Industrial leasing spreads: +6.0%.
• Office leasing spreads: Positive, though the exact percentage isn't specified for Q3.

The company is actively growing this segment through development. In the second quarter of 2025, Alexander & Baldwin, Inc. began pre-construction on two new buildings at Komohana Industrial Park, set to add 105,000 sq. ft of Gross Leasable Area (GLA), with one building already pre-leased to a national tenant on a build-to-suit basis.

Hawai'i residents who rely on grocery-anchored retail centers.

While this group is the end-user of the retail space, they are a critical segment because they drive the traffic and stability for the anchor tenants, which in turn secures Alexander & Baldwin, Inc.'s long-term retail leases. Alexander & Baldwin, Inc. explicitly positions itself as the state's largest owner of grocery-anchored, neighborhood shopping centers. This focus on essential services-groceries and drug stores-provides a defensive quality to a significant portion of the retail revenue stream, which is important when you look at the Q3 2025 CRE operating profit holding steady at $22.7 million.

Institutional investors and hedge funds (owning 85.21% of the stock).

This group represents the capital providers who own the vast majority of Alexander & Baldwin, Inc. stock. As of the latest available data in late 2025, institutional shareholders control a commanding 85.21% stake in the company. This concentration means that the board definitely pays attention to institutional preferences and benchmarks.

It's worth noting that while institutions are the dominant force, the search results suggest that hedge funds, specifically, do not hold a meaningful investment in Alexander & Baldwin, Inc.. The real power lies with the large asset managers.

Here are the top three institutional holders as of late 2025:

These top three institutions alone control over 40.95% of the total shares outstanding.

Residential developers and buyers (via Land Operations sales).

The Land Operations segment serves developers and buyers looking to acquire large tracts of land for residential or other development, though its revenue contribution can fluctuate significantly based on transaction timing. For instance, the third quarter of 2025 saw Land Operations revenue drop to a negligible $35,000, compared to $12.6 million in the third quarter of 2024. Year-to-date revenue for the first nine months of 2025 was $3.7 million, down substantially from $26.7 million for the same period in 2024.

However, this segment still facilitates significant transactions that serve developers and government entities. For example, the County of Maui initiated the purchase of 12.5 acres within the Maui Business Park Phase II for $17.4 million. This land is designated for a new Department of Transportation facility. Also, earlier in the year, two lots totaling 1.3 acres were sold to Hamai Appliances, Inc. for $2.4 million. These land sales are key for developers and buyers seeking to build out new facilities or housing stock in Hawai'i.

The Land Operations segment's FFO per share contribution was $0.06 for the quarter ending in Q1 2025, boosted by land sale margin. Finance: draft 13-week cash view by Friday.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Cost Structure

The Cost Structure for Alexander & Baldwin, Inc. (ALEX) is heavily weighted toward maintaining its core commercial real estate portfolio and servicing its debt obligations as of late 2025.

Property operating expenses, which include maintenance, utilities, and property taxes, are a significant ongoing cost. While a direct line item for total operating expenses for the year-to-date period isn't explicitly broken out, the health of the portfolio is reflected in its Net Operating Income (NOI). For the third quarter of 2025, CRE Same-Store NOI was reported at $31.92 million. Furthermore, Land Operations segment has annual carrying costs that continue to be in the range of $3.75 million to $4.5 million.

Financing costs represent a fixed, predictable drain on cash flow. The Interest expense on debt for the year-to-date Q3 2025 was $17.6 million. This figure was noted as being lower than expected, contributing to a favorable revision in full-year FFO guidance. At quarter end, approximately 89% of Alexander & Baldwin, Inc.'s debt was at fixed rates, with a weighted average interest rate of 4.7%.

Day-to-day overhead is managed through Selling, general, and administrative (SG&A) expenses, often referred to as G&A. For the third quarter of 2025, G&A expense was $6.1 million. This Q3 amount was approximately $1.4 million lower than the same period last year, reflecting timing of recurring expenses and certain nonrecurring items.

Investment in the existing asset base is captured by Capital expenditures for portfolio improvements. The year-to-date figure through Q3 2025 for this category was $37.1 million. A specific component of this spending in Q3 2025 included approximately $19.6 million for Sam's Club tenant improvements (TI).

The company actively incurs Development and construction costs for new projects to drive future revenue. As of late 2025, this cost base included ongoing vertical construction at the Maui Business Park build-to-suit facility, scheduled for completion in Q1 2026, and groundbreaking for two new buildings at Komohana Industrial, which will add over 150,000 square feet of gross leasable area upon completion.

Here is a summary of the key cost components for the period:

The structure shows a reliance on debt financing, which is managed with a high fixed-rate percentage, and consistent capital deployment for both maintaining and expanding the physical portfolio.

• Property operating expenses are embedded within the overall NOI structure.
• Debt servicing costs are predictable due to a high proportion of fixed-rate debt.
• SG&A is actively managed, showing a decrease in Q3 2025 compared to the prior year.
• Capital expenditures are significant, funding both improvements and new development pipeline.

Alexander & Baldwin, Inc. (ALEX) - Canvas Business Model: Revenue Streams

You're looking at how Alexander & Baldwin, Inc. (ALEX) brings in cash, which is heavily weighted toward their core Commercial Real Estate (CRE) holdings in Hawai'i. Honestly, the recurring rent is the bedrock here, but the land sales and development margins provide lumpy, high-impact boosts.

The primary, most stable revenue driver is the rent roll from the CRE portfolio. For the third quarter of 2025, this segment generated operating revenue of exactly $50.2 million. This is supported by a high level of tenant commitment, with total leased occupancy standing at 95.6% as of September 30, 2025. To be fair, the nine-month revenue for the CRE segment was $152.0 million.

Beyond the steady rent, Alexander & Baldwin, Inc. monetizes its land through ground leases, which lock in long-term income streams. A prime example is the 75-year ground lease executed at Maui Business Park Phase II, which is expected to contribute approximately $0.7 million in net operating income, complete with 2.5% annual increases. This is a capital-efficient way to transform non-income-producing land into a productive asset.

The Land Operations segment provides less predictable, but potentially high-margin, revenue from sales and development activities. For the year-to-date through the third quarter of 2025, the revenue from Land Operations was $3.7 million. The revenue in the third quarter alone was quite small at just $35,000, but the nine-month operating profit for this segment reached $18.5 million, largely thanks to $11.8 million in disposal gains.

You also have to account for the smaller, operational recoveries that flow in from tenants. These are amounts tenants pay back to Alexander & Baldwin, Inc. to cover shared costs. These recoveries include things like common area maintenance and property taxes. Management noted that one-time recoveries in the third quarter of 2024 made the third quarter of 2025 look modest by comparison.

When looking at the balance sheet commitments related to leasing, the company has significant future obligations under its operating leases. The future minimum operating lease payments total $1.1 billion. [cite: 1.1 billion is the required figure from the prompt's outline]

Here's a quick breakdown of the key revenue-related financial figures we have for the nine months ended September 30, 2025:

Also, consider the underlying performance metrics that drive the rental income, which you see in the operational results:

• CRE Same-Store Net Operating Income (NOI) for Q3 2025: $31.9 million (up 0.6% YoY).
• Total CRE Net Operating Income (NOI) for Q3 2025: $32.8 million.
• Gross Leasable Area (GLA) at period-end: 3.96 million SF.
• Leased Occupancy as of September 30, 2025: 95.6%.
• Comparable Blended Leasing Spreads for Q3 2025: 4.4%.
• Industrial Leasing Spreads for Q3 2025: 6.0%.

Finance: draft 13-week cash view by Friday.