Alexander & Baldwin Q4 2018 Earnings Conference Call

Alexander & Baldwin (NYSE: ALEX) 
Q4 2018 Earnings Conference Call
Feb. 27, 2019 5:00 p.m. ET Remarks:

Operator

Good day, ladies and gentlemen, and welcome to Alexander & Baldwin 2018 fourth quarter and full-year earnings call. [Operator instructions] As a reminder, this call may be recorded. It is now my pleasure to introduce VP, Capital Markets, Mr. Kenny Kan.

Please go ahead, sir.

Kenny Kan -- Vice President, Capital Markets

Thank you, operator. Aloha, and welcome to our call to discuss Alexander & Baldwin's fourth quarter and full-year 2018 earnings. With me today are our president and CEO, Chris Benjamin; and Diana Laing, our interim CFO. We are also joined by Lance Parker, our chief real estate officer; and Clayton Chun, our chief accounting officer, who will participate in the Q&A portion of the call.

Before we commence, please note that statements in this call and presentation that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. These forward-looking statements include but are not limited to statements regarding possible or assumed future results of operations, business strategies, growth opportunities and competitive positions. Such forward-looking statements speak only as of the date the statements were made and are not guarantees of future performance. Future-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of uncertain -- of certain events to differ materially from those expressed in or implied by the forward-looking statements.

These factors include but are not limited to prevailing market conditions and other factors related to the company's REIT status and the company's business as well as the evaluation of alternatives by the company related to its Materials & Construction business and by the company's joint venture related to the development of Kukui'ula, generally discussed in the company's most recent Form 10-K and Form 10-Q and other filings with the Securities and Exchange Commission. The information in this call and presentation should be evaluated in light of these important risk factors. We do not undertake any obligation to update the company's forward-looking statements. Management will be referring to non-GAAP financial measures during our call today.

Included in the appendix of today's presentation slides is a statement regarding our use of these non-GAAP measures and reconciliations. Slides from this presentation are available for download at our website, alexanderbaldwin.com. Chris will open up today's presentation by walking through the 2018 highlights and providing a strategic and operational update. He will then turn the presentation over to Diana, who will discuss financial matters and guidance.

Chris will then return for some closing remarks, and then we'll open it up for your questions. With that, let me turn it over to Chris.

Chris Benjamin -- Chief Executive Officer

Thanks a lot, Kenny. Welcome to our listeners. There are certainly a lot to digest in our earnings release and in the 10-K we will file tomorrow. But it's all consistent with the messaging from our December 21 call when we announced our big Maui land sale.

I'll start with the performance update slide comparing what we communicated in our October and December investor calls and what we are reporting today. In our core Commercial Real Estate portfolio, we ended the year with same-store NOI growth of 3.6%, which was within our guidance range of 3% to 4%. And we exceeded our releasing spread guidance of 6.5% to 7.5%, finishing the year at 8.4%. We also realized a profit of $162 million in 2018 on our Maui land sale.

The difference between the guidance of $165 million and the reported $162 million is simply the timing of certain land parcels that closed in February 2019 as opposed to late 2018. Total profit on the Maui land sale will modestly exceed guidance. I'm very pleased to say we are tracking favorably on the reinvestment of the Maui land sale proceeds of $258 million, both in timing and quality of investments. For Grace, our impairment came in at $78 million, also within the guidance we provided.

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Mary Ann Pahukoa