Alexander & Baldwin: Its Moat Is The Hawaiian Islands

Summary

• Alexander & Baldwin is the only publicly traded REIT whose operations are exclusively focused on the Hawaiian Island Chain, with over 150 years of experience operating in the region.
• Its market dominance, cemented by the state's high barriers to entry, is a significant competitive advantage that insulates the company from any meaningful competition.
• Its minimally levered balance sheet and competitive moat justify its premium trading multiple relative to other peers.
• Though an advantage in many ways, the island's presence does limit external growth opportunities. With the acquisition environment set to slow, there aren't enough catalysts to propel shares significantly higher.
• Though a great long-term holding for existing shareholders, new investors may be better off keeping ALEX on the watchlist in favor of other opportunities.

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Alexander & Baldwin, Inc. (NYSE:ALEX) is the only real estate investment trust ("REIT") that is geographically focused on the State of Hawaii. While there are other REITs that own assets in the state, ALEX is the dominant presence, whose operations

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.