Anchor tenant loss or store closure
Retail centers rely on major tenants to drive traffic; if an anchor leaves, smaller tenants may suffer and rent collections can decline.
- Scope
- Retail centers and grocery-anchored properties
- Materiality
- high
Alexander & Baldwin, Inc.
Alexander & Baldwin, Inc. is a Hawai‘i-focused real estate investment trust with roots in the islands dating back to 1870. The company owns and operates a portfolio of grocery-anchored neighborhood shopping centers, industrial properties, office assets, and commercial land, with most of its income coming from leasing real estate in Hawai‘i. It also retains a Land Operations segment that monetizes legacy landholdings through sales, joint ventures, and related activities. The business is distinguished by its long local operating history, dense tenant relationships, and concentration in essential retail and industrial real estate serving Hawai‘i communities.
57,3 %
31,3 %
−12,7 %
| % | |
|---|---|
| Commercial Real Estate leasing | 90% Ownership, operation, and leasing of retail, industrial, office, and ground-lease assets in Hawai‘i. |
| Retail centers | 45% Grocery-anchored neighborhood shopping centers that generate rental income from daily-needs tenants. |
| Industrial assets | 20% Industrial properties leased to tenants needing warehouse, distribution, and service space. |
| Office properties | 5% Office buildings leased to businesses and public-sector users in Hawai‘i. |
| Ground leases and commercial land | 20% Urban ground leases and land holdings that provide long-duration rental or monetization income. |
| Land Operations | 10% Legacy land sales, development parcels, joint ventures, and related monetization activity. |
A&B’s core customers are tenants that lease space in its Hawai‘i commercial real estate portfolio, especially grocery...
- Grocery-anchored retail tenantsprimary
Supermarkets and daily-needs retailers lease space in neighborhood centers because these locations capture recurring local traffic and support stable occupancy.
- Industrial and service tenantsprimary
Businesses lease industrial space for storage, distribution, and local operations in Hawai‘i where supply is limited and location matters.
- Office and public-sector tenantssecondary
Office users, including government-related tenants, lease space for administrative and service functions in established Hawai‘i locations.
- Land buyers and development counterpartiessecondary
Buyers of unimproved land and development parcels purchase assets for monetization, redevelopment, or strategic land assembly.
- Joint venture partnersemerging
Partners in legacy land and real estate ventures participate to share development, monetization, or asset-management economics.
The company’s business is overwhelmingly concentrated in Hawai‘i, where it owns and operates most of its commercial...
- •Portfolio is concentrated in Hawai‘i, not diversified across many states
- •Retail, industrial, office, and ground-lease assets are all local to the islands
- •Maui is a notable focus for Land Operations land sales and legacy assets
- •Local tenant relationships and reputation are important in a concentrated market
- •U.S.-only operating base reduces foreign-currency exposure
- •Island supply constraints support the value of well-located commercial assets
A&B’s strategy centers on maximizing value from its Hawai‘i commercial real estate portfolio through leasing, occupancy...
01
Maximize occupancy and tenant quality in the CRE portfolioshort-term
Stable occupancy and strong tenants support recurring rental income and reduce re-leasing risk in a concentrated Hawai‘i market.
02
Monetize legacy land holdingsmedium-term
Land sales and related transactions convert non-core assets into cash and reduce complexity in the Land Operations segment.
03
Concentrate on essential-use Hawai‘i real estatemedium-term
Grocery-anchored and industrial assets are more resilient and better aligned with local demand than discretionary property types.
A&B’s biggest business risk is concentration: its portfolio and operating results are heavily tied to Hawai‘i, so local...
Co-tenancy and go-dark lease provisions
Certain leases allow tenants to reduce rent or exit if occupancy conditions are not met, which can amplify vacancy impacts.
- Scope
- Retail portfolio
- Materiality
- high
Geographic concentration in Hawai‘i
A localized downturn, regulatory change, or island-specific disruption can affect a large share of assets and cash flow.
- Scope
- All operating segments
- Materiality
- high
Interest-rate and refinancing risk
REITs depend on debt markets and property cash flows; rising rates can increase interest expense and reduce flexibility.
- Scope
- Capital structure and distributions
- Materiality
- high
Lumpy land-sale and development results
Land Operations depends on transaction timing, so revenue and profit can swing materially between periods.
- Scope
- Land Operations
- Materiality
- medium
Weather, natural disaster, and climate exposure
Island properties can be affected by hurricanes, storms, flooding, and longer-term climate impacts.
- Scope
- Hawai‘i real estate portfolio
- Materiality
- medium
Purchase price allocation of acquired real estate
Can materially change reported NOI and net income over time
Impairment and fair value of legacy land and investments
Can create one-time gains or losses and affect asset carrying values
Timing of land-sale revenue recognition
Creates quarter-to-quarter volatility in revenue and operating profit
Lease and tenant collectability estimates
Affects rental revenue, receivables, and cash flow visibility
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AEI INCOME & GROWTH FUND XXII LTD PARTNERSHIP
XAEIU · Real Estate
AEI Income & Growth Fund XXII Ltd Partnership is a U.S.
: 11/08/2026