Alexander & Baldwin, Inc. (Alex): Análise de Pestle [Jan-2025 Atualizado]

Alexander & A Baldwin, Inc. (Alex) fica em uma encruzilhada fascinante de diversos interesses comerciais, navegando no cenário complexo do ecossistema econômico do Havaí com proezas estratégicas. Do patrimônio agrícola à inovação imobiliária, esta empresa dinâmica enfrenta uma variedade multifacetada de desafios e oportunidades que abrangem domínios políticos, econômicos, sociológicos, tecnológicos, legais e ambientais. Ao analisar meticulosamente essas dimensões críticas de pilão, revelamos as intrincadas considerações estratégicas que moldam a trajetória de negócios de Alex, oferecendo uma lente abrangente sobre como uma empresa centenária se adapta e prospera em um mercado global em constante evolução.

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores Políticos

Regulamentos de uso da terra do Havaí

Em 2024, a Comissão de Uso da Terra do Havaí regula aproximadamente 1,96 milhão de acres de terra em quatro classificações primárias. Alexander & Baldwin possui Aproximadamente 87.000 acres de terra No Havaí, diretamente impactado por esses regulamentos.

Classificação do uso da terra	Porcentagem de terra total	Impacto em Alex
Urbano	5.3%	Potencial de desenvolvimento direto
Agrícola	47.2%	Zona operacional principal de Alex
Conservação	47.5%	Restrições limitadas de desenvolvimento

Implicações da política tributária federal

Como REIT, Alex está sujeito a regulamentos tributários específicos. Os requisitos atuais de distribuição do REIT exigem 90% da renda tributável distribuída aos acionistas.

• 2024 Taxa de imposto corporativo: 21%
• REIT Taxa de imposto sobre dividendos: varia entre 15-20%
• Potenciais mudanças legislativas podem afetar as estruturas tributárias REIT

Incentivos do governo estadual e local

O Havaí oferece múltiplos incentivos de desenvolvimento para projetos agrícolas e comerciais.

Tipo de incentivo	Valor	Aplicabilidade a Alex
Crédito do imposto agrícola	Até US $ 3.000 por operação agrícola	Benefício direto para divisões agrícolas
Concessão de desenvolvimento comercial	US $ 500.000 no máximo por projeto	Financiamento potencial de desenvolvimento imobiliário

Políticas de gestão e conservação da terra

As políticas de conservação do Havaí afetam diretamente o portfólio de terras de Alex. Os regulamentos atuais requerem avaliações abrangentes de impacto ambiental para mudanças significativas no uso da terra.

• Duração do processo de revisão ambiental: 6-18 meses
• Requisitos de servidão de conservação: mínimo 25% da área total da terra
• Mudanças de política potenciais podem restringir o desenvolvimento futuro

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores Econômicos

Condições do mercado imobiliário flutuante no Havaí e no oeste dos Estados Unidos

A partir do quarto trimestre de 2023, o mercado imobiliário do Havaí mostrou as seguintes características:

Métrica de mercado	Valor do Havaí	Comparação ocidental dos EUA
Preço médio da casa	$730,000	$523,000
Mudança anual de preço	-3.2%	-2.8%
Meses de inventário	3.4	3.7

Sensibilidade econômica dos preços das commodities agrícolas

Tendências de preços de commodities de açúcar para 2023:

Mercadoria	Preço por tonelada	Variação anual
Açúcar crua	$ 0,28/lb.	-12.5%
Açúcar refinado	$ 0,35/lb.	-10.3%

Impacto do desempenho da indústria do turismo

Indicadores econômicos do Turismo do Havaí para 2023:

Métrica de turismo	Valor	Mudança de ano a ano
Total de chegadas de visitantes	10,4 milhões	+18.2%
Gastos totais para visitantes	US $ 20,2 bilhões	+22.5%
Taxa média diária (hotéis)	$385	+7.3%

Riscos de recuperação econômica e recessão

Principais indicadores econômicos para regiões operacionais em 2023:

Indicador econômico	Havaí	US Western US
Taxa de crescimento do PIB	2.1%	1.9%
Taxa de desemprego	3.6%	3.8%
Taxa de inflação	3.2%	3.4%

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores sociais

Mudança demográfica e tendências populacionais no Havaí, afetando o desenvolvimento da propriedade

População do Havaí em 2022: 1.455.271

Segmento demográfico	Porcentagem populacional	Taxa de crescimento
Nativo havaiano	10.1%	-0.3%
Asiático	37.6%	0.5%
Branco	25.5%	-0.2%

Crescente demanda por projetos imobiliários sustentáveis ​​e ambientalmente conscientes

Green Building Market no Havaí projetou para atingir US $ 1,2 bilhão até 2025

Certificação de construção sustentável	Porcentagem de novos desenvolvimentos
Certificado LEED	42%
Estrela energética avaliada	28%

Considerações de preservação cultural no desenvolvimento da terra e práticas agrícolas

Terras Agrícolas no Havaí: 524.000 acres

Tipo de terra agrícola	Acres	Status de preservação
Terras agrícolas	187,000	Protegido
Terras havaianas nativas	95,000	Reserva cultural

Mudança de dinâmica da força de trabalho e tendências de trabalho remotas que afetam imóveis comerciais

Trabalhadores remotos no Havaí: 38,7% da força de trabalho

Setor da indústria	Porcentagem de trabalho remoto
Tecnologia	62%
Serviços profissionais	49%
Financiar	45%

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores tecnológicos

Transformação digital de tecnologias de gestão e monitoramento agrícolas

Alexander & A Baldwin investiu US $ 3,2 milhões em tecnologias de agricultura de precisão em 2023. A Companhia implantou 127 sensores de IoT em propriedades agrícolas para monitoramento de culturas e gerenciamento de recursos em tempo real.

Tipo de tecnologia	Valor do investimento	Status de implementação
Monitoramento de culturas à base de drones	$875,000	Totalmente operacional
Sistemas de imagem por satélite	$1,250,000	Cobertura de 85%
Previsão de culturas acionadas por IA	$1,075,000	Fase piloto

Investimento em tecnologias inteligentes de construção e gerenciamento de propriedades

A empresa alocou US $ 4,5 milhões para tecnologias de construção inteligentes em 2023, com foco no gerenciamento de energia e na otimização da experiência do inquilino.

Categoria de tecnologia	Investimento	Economia de energia
Sistemas Smart HVAC	$1,600,000	Redução de 22%
Gerenciamento de construção de IoT	$1,250,000	Ganho de eficiência de 18%
Plataformas de inquilinos digitais	$1,650,000	95% de adoção do usuário

Adoção de GIS e análise de dados para uso da terra e planejamento de desenvolvimento

Alexander & A Baldwin implementou tecnologias GIS avançadas com um investimento de US $ 2,7 milhões, cobrindo 42.000 acres de terra gerenciada.

• Precisão de mapeamento GIS: 99,6%
• Velocidade de processamento de dados: 3,2 terabytes por hora
• Potencial de otimização do uso da terra: melhoria de 35%

Tecnologias emergentes em agricultura sustentável e conservação da terra

A empresa comprometeu US $ 5,6 milhões à pesquisa e implementação de tecnologia sustentável em 2023.

Tecnologia sustentável	Investimento em pesquisa	Potencial de redução de carbono
Técnicas de agricultura regenerativa	$1,900,000	27% de redução de CO2
Tecnologias de conservação de água	$1,750,000	40% de eficiência da água
Integração de energia renovável	$1,950,000	22% de adoção de energia verde

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores Legais

Conformidade com o uso complexo da terra e regulamentos ambientais no Havaí

Métricas de conformidade ambiental:

Categoria de regulamentação	Status de conformidade	Custo anual de conformidade
Permissões da Lei de Água Limpa	100% compatível	US $ 1,2 milhão
Proteção de espécies ameaçadas de extinção	Conformidade total	$875,000
Regulamentos estaduais de conservação de terras	Totalmente aderente	$650,000

Considerações legais em andamento relacionadas ao status de REIT e governança corporativa

REIT Especificos de conformidade:

Requisito de REIT	Porcentagem de conformidade com Alex	Custo de verificação anual
Distribuição de ativos	92.4%	$425,000
Distribuição dos acionistas	90.1%	$312,000
Diversificação da fonte de renda	95.6%	$285,000

Riscos potenciais de litígios no desenvolvimento imobiliário e operações agrícolas

Análise de risco de litígio:

• Casos legais ativos totais: 7
• Despesas anuais estimadas de defesa legal: US $ 2,3 milhões
• Tempo médio de resolução de casos: 18 meses
• Custos de liquidação projetados: US $ 1,5 milhão

Desafios regulatórios na conservação da terra e direitos de propriedade indígenas

Conformidade de direitos de propriedade indígena:

Categoria à direita da propriedade	Acres sob gestão	Gasto de consulta
Acordos de terra havaianos nativos	12.500 acres	$975,000
Zonas de preservação cultural	8.200 acres	$650,000
Servidões de conservação	5.600 acres	$425,000

Alexander & Baldwin, Inc. (Alex) - Análise de Pestle: Fatores Ambientais

Impactos de mudanças climáticas nas operações agrícolas e gestão da terra

Alexander & As operações agrícolas de Baldwin no Havaí enfrentam desafios significativos das mudanças climáticas. A partir de 2024, a empresa gerencia aproximadamente 87.000 acres de terra, com 32% dedicado às operações agrícolas.

Categoria de impacto climático	Mudança projetada	Impacto econômico potencial
Redução de chuvas	15-20% diminuição até 2050	US $ 4,2 milhões em potencial perda de receita agrícola
Aumento da temperatura	2,5 ° F Aumento médio	Redução de 7% na produtividade das culturas
Frequência de seca	Aumento de 40%	Custos de gerenciamento de água de US $ 3,7 milhões

Iniciativas de sustentabilidade em esforços de desenvolvimento imobiliário e conservação

Alexander & A Baldwin se comprometeu com práticas de desenvolvimento sustentável em seu portfólio imobiliário.

Métrica de sustentabilidade	Desempenho atual	Investimento
Certificações de construção verde	62% dos novos desenvolvimentos certificados	US $ 12,5 milhões em infraestrutura verde
Redução de emissões de carbono	Redução de 23% desde 2019	US $ 6,8 milhões em estratégias de mitigação de carbono
Integração de energia renovável	45% das propriedades com recursos solares	US $ 9,3 milhões em infraestrutura de energia renovável

Gerenciamento de recursos hídricos e desafios de conservação no Havaí

O gerenciamento da água permanece crítico para Alexander & Operações havaianas de Baldwin.

Métrica de gerenciamento de água	Status atual	Investimento em conservação
Uso anual da água	42 milhões de galões	US $ 3,6 milhões em tecnologias de eficiência hídrica
Eficiência de irrigação	68% de otimização do uso da água	US $ 2,1 milhões em sistemas de irrigação de precisão
Proteção da bacia hidrográfica	1.200 acres sob conservação ativa	US $ 5,4 milhões em administração de bacias hidrográficas

Preservação ecológica e proteção da biodiversidade em projetos de desenvolvimento de terras

Alexander & Baldwin prioriza a preservação ecológica em suas iniciativas de desenvolvimento da terra.

Métrica de Proteção à Biodiversidade	Desempenho atual	Gasto de conservação
Áreas de proteção de espécies nativas	3.500 acres de habitat protegido	US $ 7,2 milhões em restauração ecológica
Gerenciamento invasivo de espécies	Redução de 86% na propagação invasiva da planta	US $ 1,9 milhão em monitoramento ecológico
Projetos de restauração de habitat	12 sites de restauração ativos	US $ 4,5 milhões em reabilitação de habitat

Alexander & Baldwin, Inc. (ALEX) - PESTLE Analysis: Social factors

You're operating in a unique market, so understanding Hawaii's social dynamics is not just about demographics; it's about navigating a deeply rooted cultural and community-focused environment. The core takeaway for Alexander & Baldwin is that its focus on essential, grocery-anchored retail is a powerful hedge against national commercial real estate (CRE) headwinds, but its development pipeline is still highly sensitive to local sentiment and the state's tight labor market.

Strong local community opposition to new commercial land development.

Developing new commercial land in Hawaii is defintely a high-friction process, and this is a persistent social risk for Alexander & Baldwin. The state's history, scarcity of land, and strong local advocacy for preservation mean that any new project-even industrial, like the Komohana Industrial Park expansion-faces intense scrutiny.

The company mitigates this by focusing on redevelopment and infill projects, often on land it already owns, and by branding itself as a 'Partners for Hawai'i.' Still, any new Gross Leasable Area (GLA) addition, such as the over 150,000 square feet of industrial space currently underway at Komohana Industrial and Maui Business Park, is subject to a protracted and costly permitting and approval process that can be easily delayed by community opposition. This is a capital expenditure risk that you have to factor into your development timelines.

Shift to remote work slightly dampens demand for office space, but retail remains strong.

The national trend of remote and hybrid work is clearly impacting office demand, but Alexander & Baldwin's portfolio structure offers a significant buffer. The company is primarily a retail and industrial operator, owning only four office properties out of its total portfolio of 39 improved properties as of 2025.

The strength is in the essential-service retail and industrial segments. For the third quarter of 2025, Alexander & Baldwin's total leased occupancy stood at a very healthy 95.6%. More telling, the comparable leasing spreads for industrial spaces were robust at 6.0%, significantly outpacing the retail spreads of 2.4% for the same period. The shift isn't hurting their core business; it's just making their small office segment less of a growth driver.

High cost of living in Hawaii limits population growth and labor pool.

Hawaii's status as having the highest cost of living in the U.S. creates a structural headwind for the labor market, which impacts every tenant in Alexander & Baldwin's centers. High housing costs, where over 33.1% of homeowners spend 35% or more of their income on housing, directly limit the state's ability to retain and attract a working-age population.

While the state's Department of Business, Economic Development and Tourism (DBEDT) projects a slight population increase of 0.1% in 2025, this minimal growth is a constraint on long-term demand for new commercial space. The tight labor market is evident in the low unemployment rate, which is projected to be around 2.7% to 2.9% for 2025, making it hard for tenants to staff their businesses.

Here's the quick math on the labor situation for 2025:

Metric (2025)	Value	Context
Projected Population Growth	0.1%	Minimal growth limits new consumer base expansion.
Projected Unemployment Rate	2.7% - 2.9%	Extremely tight labor market for tenants.
Civilian Labor Force (Q2 2025)	687,600 people	Increased 1.3% from Q2 2024, but small overall size.
Non-Agriculture Payroll Job Growth (Projected)	0.9% - 1.2%	Modest job creation, primarily in Health Care and Food Services.

Focus on locally-sourced goods and services drives demand for community retail centers.

The strong local culture and preference for supporting community businesses translate directly into demand for Alexander & Baldwin's grocery-anchored neighborhood retail centers. The company is the state's largest owner of this essential retail category, which is inherently defensive against e-commerce.

Consumers are increasingly seeking out specialty grocery stores and local food markets that cater to a demand for locally-sourced produce and sustainable goods. This social trend reinforces the value of Alexander & Baldwin's 21 retail centers, which are designed to be community hubs for daily needs. This focus is why the retail segment maintains a high occupancy rate and solid leasing spreads, even if industrial is growing faster.

The social demand for local retail centers is driven by:

• Seeking out locally-sourced produce and niche food items.
• The need for essential, non-discretionary services like grocery and drug stores.
• A preference for experiential retail that online commerce cannot replicate.

Alexander & Baldwin, Inc. (ALEX) - PESTLE Analysis: Technological factors

You're operating a real estate investment trust (REIT) in a geographically isolated market like Hawai'i, so technology isn't just about faster computers; it's a critical tool for operational efficiency and maximizing rent growth against high local costs. For Alexander & Baldwin, Inc. (ALEX), technology is a core lever for cost control and strategic pricing, directly impacting the bottom line in 2025.

Adoption of digital property management systems to cut operating expenses by 2%.

Alexander & Baldwin has prioritized 'streamlining our business and cost structure' in 2025, a strategy that leans heavily on digital adoption to manage its vast portfolio of commercial properties. This focus on efficiency is visible in their financial results: General and Administrative (G&A) expenses decreased to approximately $7.0 million in the first quarter of 2025, a 3.4% reduction compared to the same period in the prior year. This follows a larger 12.4% reduction in G&A for the full year 2024.

Implementing modern digital property management systems (PMS) and automating back-office functions is the engine behind this cost control. While the overall G&A reduction is substantial, the sustained, incremental savings in property-level operating expenses (OpEx) are what really move the needle for a REIT. We project that the digital system adoption is on track to deliver a conservative 2% cut in property-level operating expenses by year-end, which translates directly into higher Net Operating Income (NOI). This is defintely a key component of their internal growth story.

• Automate rent collection, reducing administrative tasks by an estimated 40% based on industry benchmarks.
• Centralize maintenance requests, leading to faster vendor dispatch and lower repair costs.
• Improve financial reporting speed, giving management real-time data on property performance.

Increased use of energy-efficient building technology to meet state mandates.

The technological push extends into building infrastructure, driven by Hawai'i's aggressive environmental goals. The state has set a goal of 100 percent renewable energy for electricity generation by 2045, which mandates that commercial property owners like Alexander & Baldwin invest in energy-efficient technology (PropTech) to remain compliant and competitive.

Alexander & Baldwin is actively retrofitting its properties with smart, sustainable technology. They partnered with Carbon Lighthouse to implement energy-saving measures across four properties, covering nearly 805,000 square feet, or roughly 23 percent of their commercial real estate portfolio. These efforts are crucial because Hawai'i faces some of the highest energy prices in the nation, making efficiency a direct financial benefit.

The technology deployment includes:

• Installation of Photovoltaic (PV) systems on rooftops to generate on-site power.
• Upgrading to modern, energy-efficient HVAC (Heating, Ventilation, and Air Conditioning) systems.
• Wide-scale adoption of LED lighting and smart fixtures to reduce common-area electricity consumption.
• Deployment of Electric Vehicle (EV) charging stations, supported by a partnership with Hawaiian Electric, to future-proof their centers for evolving consumer needs.

E-commerce competition is low due to high shipping costs, bolstering physical retail.

The technological factors that benefit e-commerce on the mainland-fast, cheap logistics-become a significant barrier to entry in Hawai'i. The sheer distance from the continental U.S. means that e-commerce sellers face high shipping costs and long transit times, often five or more days, which makes same-day or next-day delivery nearly impossible for most goods. This logistics hurdle acts as a powerful, non-replicable technological moat for Alexander & Baldwin's physical retail portfolio.

This market reality directly supports the company's core business model of owning grocery-anchored neighborhood centers. The robust performance of their retail assets in 2025 is the proof: Retail portfolio occupancy rose to 95.5% as of September 30, 2025, an increase of 260 basis points year-over-year. People still need to physically shop for groceries and services, and the high cost of shipping ensures that local, physical retail remains the dominant channel.

Data analytics used to optimize tenant mix and rental pricing strategies.

The most impactful technological application is the use of data analytics to inform both leasing and capital allocation decisions. Alexander & Baldwin uses market data, demographic trends, and internal performance metrics to optimize the tenant mix (the combination of businesses in a center) and to set rental pricing (leasing spreads) with precision.

Here's the quick math on how well this data-driven strategy is working in 2025:

Metric	Q1 2025 Result	Q2 2025 Result	Q3 2025 Result
Total Leased Occupancy (as of quarter end)	95.4%	95.8%	95.6%
Comparable Blended Leasing Spreads (Improved Portfolio)	10.2%	6.8%	4.4%
Comparable Retail Leasing Spreads	11.1%	7.4%	2.4%

The high occupancy rate, consistently above 95% throughout 2025, shows that their tenant mix is right for the local market. Plus, the double-digit leasing spreads for the improved portfolio in Q1 2025, reaching 10.2%, demonstrate strong pricing power. This isn't guesswork; it's the direct, measurable outcome of using data analytics to understand exactly how much value they can command for their space in a supply-constrained market.

Alexander & Baldwin, Inc. (ALEX) - PESTLE Analysis: Legal factors

The legal landscape in Hawai'i presents Alexander & Baldwin, Inc. (ALEX) with unique, high-stakes challenges that directly impact its core commercial real estate (CRE) and land operations. You need to focus on two areas: the decades-long litigation over water rights and the emerging legislative risk to your long-term commercial ground leases.

Complex and lengthy state environmental review process for land entitlement.

Land entitlement in Hawai'i is a long, expensive process, often stretching into years due to the Hawai'i Environmental Policy Act (HEPA, Chapter 343, Hawai'i Revised Statutes) and the state's strong public trust doctrine. This complexity is not theoretical; it's a decades-long reality for Alexander & Baldwin, Inc. The most significant example is the East Maui water diversion permits, which have spawned over 20 years of litigation.

This legal environment means that even routine renewals of land-use permits can be challenged, delaying or derailing development plans. The Hawai'i Supreme Court's September 2025 ruling confirmed the Board of Land and Natural Resources (BLNR) violated the constitutional rights of water advocates by denying a contested case hearing for the revocable permits. This ruling reinforces the public's right to a meaningful opportunity to be heard, which translates into longer timelines and greater legal expense for Alexander & Baldwin, Inc. in securing any land entitlements.

Here's the quick math on the risk: a single, adverse court decision can materially reduce a key asset's value, as seen when a June 2023 court ruling cut the allowed water diversion for A&B and East Maui Irrigation from nearly 40.5 million gallons per day (mgd) to 31.5 mgd.

Compliance with the Americans with Disabilities Act (ADA) requires ongoing capital expenditure.

Maintaining a large commercial real estate portfolio means continuous capital outlay to meet evolving accessibility standards under the Americans with Disabilities Act (ADA). This isn't a one-time fix; it's an ongoing maintenance capital expenditure (CapEx) item, especially for older properties in the portfolio.

For the first six months of 2025, Alexander & Baldwin, Inc.'s consolidated maintenance capital expenditures totaled $3.588 million. While this figure covers all ongoing maintenance, a significant portion is dedicated to ADA upgrades to mitigate litigation risk and ensure compliance. Plus, the state's Environmental Review Program has a hard deadline: by April 2026, all submitted documents must be 100% ADA compliant. This signals a heightened focus on accessibility compliance across all public-facing and regulatory aspects of the business, pushing CapEx higher in the near term.

Strict water rights and land ownership laws specific to Hawaiian history.

Hawaiian legal history, particularly the public trust doctrine, places strict limits on land and water use, treating water as a public trust resource. Alexander & Baldwin, Inc.'s legacy land holdings and water infrastructure, such as the East Maui Irrigation system, are constantly under legal scrutiny.

The September 2025 Hawai'i Supreme Court decision is a clear indicator of this risk. The court ruled that the BLNR must consider the mauka-to-makai (mountain-to-sea) impacts of water diversion. This means that any water use must now satisfy Native Hawaiian cultural practices, stream restoration, and environmental needs before commercial interests, creating a permanent, high-level constraint on land development and agricultural support activities.

The core legal risk is the potential for further reductions in water allocation, which directly impacts the value and usability of thousands of acres of land. You can't separate the land from the water rights in Hawai'i.

Legal Constraint	2025 Impact/Status	Financial Implication (Example)
East Maui Water Rights Case	Hawai'i Supreme Court ruling in September 2025 affirmed due process rights for water advocates, requiring contested case hearings for permits.	Prior court-ordered water reduction from 40.5 mgd to 31.5 mgd directly limits land-use potential and agricultural income.
ADA Compliance Deadline	Environmental Review Program requires 100% ADA compliant submissions by April 2026.	Part of the $3.588 million in maintenance CapEx for H1 2025 is allocated to ongoing accessibility upgrades.

Lease agreements must adhere to evolving tenant protection laws.

As a major owner of commercial real estate and a significant ground lease portfolio, Alexander & Baldwin, Inc. is highly sensitive to changes in landlord-tenant law. While much of the recent legislation targets residential leases-like Act 202 in 2025 requiring mandatory mediation before residential eviction for nonpayment of rent-the legislative focus is expanding.

A proposed bill in the 2025 Hawai'i Legislature (HB832) directly targets Alexander & Baldwin, Inc.'s long-term commercial ground lease model. This bill seeks to fundamentally alter the economics of these agreements by:

• Prohibiting long-term commercial lease rent resets above an 'economic' level for the lessee's actual use.
• Requiring lessors to compensate the lessee for the value of buildings and infrastructure they created upon lease termination.

This is a defintely material risk. Alexander & Baldwin, Inc.'s ground lease value proposition relies on the contractual reversion of improvements at the end of the lease term. If this bill or similar legislation passes, it would significantly reduce the long-term value capture of the ground lease portfolio and increase the capital required to take back a property, fundamentally changing the risk-return profile of this key asset class.

Alexander & Baldwin, Inc. (ALEX) - PESTLE Analysis: Environmental factors

The environmental landscape for Alexander & Baldwin, Inc. (ALEX) is dominated by its pure-play focus on Hawai'i commercial real estate, which means climate change and stringent local regulations are not abstract risks-they are core operational and valuation factors. The state's unique geography creates a high-barrier-to-entry market, but it also concentrates environmental risks, particularly for coastal assets.

Here's the quick math: Hawai'i's push for sustainability is a cost center for new development, but the resulting scarcity of developable land acts as a powerful tailwind, boosting the value of ALEX's existing 4.0 million square feet of high-quality commercial space.

Climate change risk from sea-level rise impacting low-lying coastal properties

Climate change presents a material physical risk to a significant portion of the company's asset base, especially those properties located near the coastline. ALEX explicitly recognizes this, aligning its disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) framework and tracking its properties located within flood zones.

The risk is quantifiable and near-term. Sea levels in Hawai'i are projected to rise between 0.97 feet and 1.23 feet by 2050, which is a critical timeframe for long-term commercial leases and property management. A 2024 analysis of Hawai'i real estate estimated Coastal Property Vulnerability at a significant 38%, reflecting the high concentration of infrastructure along the coast. This vulnerability translates directly into higher operating costs, primarily through escalating insurance premiums, which are already trending up across the state.

The table below summarizes the key climate risk metrics that factor into ALEX's long-term planning and capital expenditure decisions:

Climate Risk Metric	Hawai'i Projection / Estimate	Implication for ALEX
Near-Term Sea-Level Rise (by 2050)	0.97 ft to 1.23 ft	Increased flood insurance costs and capital expenditure for asset hardening/mitigation.
Coastal Property Vulnerability (General Estimate)	38%	High exposure to physical damage and potential long-term devaluation of coastal assets.
Risk Management Framework	TCFD Adoption	Commitment to transparently identifying and managing climate-related financial risks.

Strict state regulations on water runoff and storm water management

Hawai'i's commitment to environmental protection translates into a rigorous regulatory environment for all commercial real estate development and operations. This is defintely a high-cost compliance area. The City and County of Honolulu's Department of Planning and Permitting mandates stormwater management regulations that prioritize on-site retention/infiltration for new projects, which adds to construction complexity and cost.

For ALEX's portfolio, which includes 14 industrial assets as of Q2 2025, compliance is a continuous process. Industrial facilities must either obtain an industrial stormwater permit or certify 'no exposure' to runoff, with permits requiring renewal every five years. Furthermore, the State Legislature is enacting the Charlotte 'Sharkey' Schaefers Inspection Law in 2025, which mandates safety requirements and a new monitoring and inspection program for retention and detention ponds, increasing regulatory oversight on existing infrastructure.

Focus on renewable energy mandates for new and existing commercial properties

The state's aggressive renewable energy goals create both a regulatory compliance burden and a clear investment opportunity for ALEX. Hawai'i is targeting a 100% renewable energy portfolio by 2045, with an interim goal of 40% by 2030. This mandate forces all large commercial operators to actively decarbonize their energy consumption. ALEX has responded by setting its own 2025 reduction targets for GHG Scope 2 emissions, energy, and water usage from a 2017 baseline.

The company is a historical leader in this space, having produced renewable energy since 1906. Today, this legacy manifests in tangible investments and portfolio upgrades:

• Installation of Photovoltaic (PV) systems across the commercial real estate portfolio.
• Implementation of energy-efficient HVAC, LED lighting, and fixtures.
• Deployment of Electric Vehicle (EV) charging stations at properties.
• Past significant investment of $24 million in a 12-megawatt solar facility on Kaua'i.

Land conservation efforts limit the supply of developable land, boosting existing asset values

The environmental pressure to conserve land is a primary driver of the high barriers to entry in Hawai'i's real estate market. As one of Hawai'i's largest private landowners, ALEX has a significant portion of its total holdings-approximately 87,000 acres-earmarked for conservation or non-core use, which limits the overall supply of developable land.

This scarcity is a powerful economic factor. It underpins the value of ALEX's core commercial real estate portfolio and its remaining entitled land bank. As of June 30, 2025, the Land Operations segment still holds approximately 3,100 acres of legacy landholdings being monetized, often through capital-efficient strategies like long-term ground leases. For example, the 75-year ground lease for 4.7 acres at Maui Business Park Phase II, announced in Q1 2025, demonstrates how even small parcels of entitled land can be transformed into high-value, long-term income streams due to the state's extreme land-supply constraint.