Alexander & Baldwin: Investing In Hawaii Real Estate

Summary

• Alexander & Baldwin ("A&B") is a premier commercial real estate company in Hawaii with specialized experience serving the high-barrier-to-entry market.
• The company has had a good year. Domestic visitation is up, dividends are increasing, and guidance has been raised.
• Since their Q3 earnings release, shares have rallied nearly 20% from $16.58/share then to its present level of $19.73/share.
• In recent periods, existing capital has been redirected to share repurchases. While this may represent confidence in the stock, it could also be an indication of limited deployment opportunities elsewhere.
• Given its current run-up and current market uncertainties, further upside appears limited.

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Alexander & Baldwin, Inc ("A&B") (NYSE:ALEX) is a premier commercial real estate ("CRE") company headquartered in Honolulu, Hawaii with the largest portfolio of grocery-anchored, neighborhood shopping centers in the state.

Their regional market dominance is

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.