Alexander & Baldwin: I'm Saying 'Aloha' To This Undervalued Dividend REIT

(8min)

Summary

  • ALEX offers a compelling 5.1% yield, backed by a conservative 73% payout ratio and strong fundamentals, which are ideal for income investors.
  • ALEX's strategic asset recycling, robust leasing activity, and low leverage balance sheet support continued growth and resilience.
  • ALEX's focus on needs-based retail and industrial properties in Hawaii, a supply-constrained market, underpins management's raised FFO/share guidance.
  • Trading at a discounted P/FFO versus historical averages, ALEX presents attractive total return potential through yield, growth, and possible valuation re-rating.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »
A young girl and her grandmother enjoying sunset at the Pacific Ocean in Costa Rica

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Now is a great time to be an income investor, as especially as the market has once again shown a divergence between high growth tech stocks and beaten down sectors like REITs, pharmaceuticals, and energy. This brings me to Alexander & Baldwin

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This article was written by

21.46K Followers

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group

iREIT®+HOYA Capital

. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ALEX either through stock ownership, options, or other derivatives. 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.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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