Alexander & Baldwin launches $200 million equity distribution

Alexander & Baldwin, Inc. (NYSE:ALEX), a Hawaii-based real estate investment trust, announced today the filing of an automatic shelf registration statement and a new “at the market” equity offering program. The company, through an equity distribution agreement with several financial institutions, plans to offer and sell shares of common stock totaling up to $200 million.

The equity distribution agreement, dated today, involves KeyBanc Capital Markets Inc., A.G.P./Alliance Global Partners (NYSE:), BofA Securities, Inc., Citizens JMP Securities, LLC, Janney Montgomery Scott LLC, Piper Sandler & Co., and Wells Fargo Securities, LLC as Sales Agents and/or Forward Sellers, and their respective affiliates as Forward Purchasers.

Under this arrangement, in addition to direct sales, Alexander & Baldwin may enter into forward sale agreements. These agreements allow Forward Purchasers or their affiliates to borrow and sell shares, with the intention of settling the agreements at a future date by delivering shares. The transactions aim to facilitate the sale of the company’s common stock to the public at market prices from time to time.

In other recent news, Alexander & Baldwin, a leading real estate firm, has announced an optimistic outlook following robust Q2 2024 results. The company’s total net operating income increased by 1.1% in the second quarter, with a significant land sale in July adding $10.5 million to its revenues. The firm also reported a rise in same-store net operating income and funds from operations, leading to raised guidance for these key performance indicators.

Alexander & Baldwin’s focus on operational excellence and growth in its commercial real estate portfolio has been underlined, with the company exploring internal development and external investment opportunities. Notably, the company’s CFO, Clayton Chun, has raised the 2024 adjusted funds from operations guidance to $0.99 – $1.08 per share.

InvestingPro Insights

As Alexander & Baldwin, Inc. (NYSE:ALEX) embarks on its new equity offering program, current and prospective investors might find the following metrics from InvestingPro valuable for assessing the company’s market position. With a market capitalization of $1.37 billion and a P/E ratio of 34.05, ALEX reflects a certain level of investor confidence. Notably, the company’s P/E ratio is projected to adjust to 24.38 in the last twelve months as of Q2 2024, suggesting an anticipated improvement in earnings. Moreover, the PEG ratio during the same period stands at an attractive 0.14, indicating that the company’s earnings growth might be undervalued relative to its peers.

InvestingPro Tips for ALEX also highlight that the company has a track record of raising its dividend for three consecutive years, which could be a sign of a strong commitment to returning value to shareholders. In addition, ALEX is trading at a low P/E ratio relative to near-term earnings growth, and analysts predict the company will be profitable this year, having already been profitable over the last twelve months. These insights, along with the fact that there are many more tips available on InvestingPro for ALEX, provide a deeper look into the company’s financial health and future prospects.

For those interested in further analysis, additional InvestingPro Tips for Alexander & Baldwin, Inc. can be found at: https://www.investing.com/pro/ALEX.

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