JMP Securities Financial Services and Real Estate Conference. Christopher J. Benjamin, President & Chief Operating Officer Alexander & Baldwin, Inc.

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1 JMP Securities Financial Services and Real Estate Conference October 1, 2013 Christopher J. Benjamin, President & Chief Operating Officer Alexander & Baldwin, Inc.

2 DISCLOSURE Statements in this presentation that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Factors that could cause actual results to differ materially from those contemplated in the statements include, without limitation, those described in our 2012 Annual Report on Form 10-K and in our other subsequent filings with the SEC. These forward looking statements are not guarantees of future performance. We do not undertake any obligation to update our forward-looking statements. 2

3 A PREMIER HAWAII COMPANY Unique Hawaii Assets TANGIBLE 87,000 acres primarily on Maui & Kauai 8 million square feet of high-quality commercial properties in Hawaii & mainland Robust Hawaii development pipeline (fully entitled) of over 3,500 residential units & 100,000 square feet of commercial space Leading natural materials and infrastructure construction company 36,000-acre sugar plantation Strong balance sheet & ample debt capacity INTANGIBLE Deep experience, network & understanding of Hawaii Disciplined underwriting & investment Reputation for integrity, performance & commitment to the community 3

4 STRATEGY focused Hawaii- Over $600M invested since Leverage deep separation (6/29/12) experience, network & understanding Grace Pacific - $277M Capitalize on attractive investment Pearl Highlands Center - $142M Kahala Portfolio - $98M Waianae Mall - $30M Port Allen Solar Project - $27M ONE Ala Moana - $20M opportunities Napili Plaza - $19M 4

5 COMMERCIAL PORTFOLIO AS OF OCTOBER 1, 2013, EXCEPT AS INDICATED SQUARE FEET 8 million Hawaii 2 million Mainland 6 million NUMBER OF PROPERTIES 46 Hawaii 25 Mainland 21 LOCATIONS Hawaii, Arizona, California, Colorado, Nevada, Utah, Georgia, Texas OCCUPANCY (AS OF 6/30/13) Hawaii 92% Mainland 95% 2012 CASH NOI $63.1 million 5

6 FOCUS ON HAWAII RETAIL Acquired $191M in Hawaii retail properties this year 43% increase in Hawaii GLA this year 2 nd largest owner/operator of retail commercial properties NAPILI PLAZA Maui May 2013 WAIANAE MALL Oahu January 2013 PEARL HIGHLANDS CENTER Oahu September

7 ACQUISITION PEARL HIGHLANDS 415,000-square foot, retail power center 12 miles west of downtown Honolulu Acquisition price: $142M, including assumption of $59M loan CENTER 63% 6.3% in-going ingoing cap rate Closed on Sept. 17 (OAHU) $82M to be funded with 1031 and reverse 1031 exchange proceeds A&B is Hawaii s 2nd largest retail owner/operator Hawaii GLA increased by 43% Hawaii retail GLA increased by 90% 7

8 DEVELOPMENT OF HISTORICAL LANDHOLDINGS WAILEA MAUI BUSINESS PARK KUKUI ULA LOCATION Wailea, Maui ZONING Residential/Commercial ACRES 167 UNITS Up to 700 LOCATION Kahului, Maui ZONING Commercial ACRES 179 (155 acres) LOTS 131 LOCATION Poipu, Kauai ZONING Residential ACRES 1,000 (950 remaining; 630 saleable) UNITS Up to 1,500 TARGETED SALES PRICE PER S.F. TARGETED SALES PRICE PER S.F. $38-$60 $30-$130 (land) 8

9 HAWAII INVESTMENTS OUTSIDE HISTORICAL LANDHOLDINGS Hawaii investments outside of historic landholdings since 2000 Development projects: $615M Commercial properties: p $270M Total: $885M Targeting returns in the high-teens to mid-20% range Ka Milo Kai Lani Gateway at Mililani Mauka Keola Lai Lanikea Daiei Kunia Shopping Center 9



12 KAHALA RESIDENTIAL PORTFOLIO ACQUISITION Leveraged local knowledge and relationships Off-market transaction $98M acquisition price, $20M below land-only tax assessed value Acquisition included: 27 residential properties on Kahala Ave. 2 residential properties and a preservation-zoned parcel in Windward Oahu 146-acre agricultural l parcel in Kihei, Maui Plan to reposition, refurbish and resell properties over the next 3 to 5 years Expected returns consistent with past Hawaii investments Beach frontage at 4631 Kahala Ave. Kahala beach frontage looking toward Diamond Head 12

13 Description LOCATION Honolulu, Oahu ACQUISITION DATE June 30, 2010 ZONING UNITS FLOORS 43 STATUS ESTIMATED CONSTRUCTION COMPLETION AVERAGE UNIT SIZE High-rise residential 340 saleable Under construction Early ,000 s.f. AVERAGE SALES PRICE PER S.F. $725 AVERAGE COST PER S.F. $550 to $600 Overview All 340 saleable units sold under binding contracts t Extremely well located near shopping, restaurants & beaches Successful navigation of complex permitting process JV partners to provide half of $65M equity capital $120M construction loan 13

14 LOCATION Honolulu, Oahu FUNDED DATE May 13, 2013 ZONING UNITS 206 STATUS High-rise residential 100% under binding contracts ESTIMATED CONSTRUCTION COMPLETION AVERAGE UNIT PRICE Late 2014 $1.6M Artist Rendering 14

15 LOCATION ACQUISITION DATE ZONING Honolulu, Oahu Long-term option to acquire site High-rise residential UNITS 467 Artist rendering subject to change STATUS unit high rise - 16, 3-bedroom townhouses - 54 low-rise flats Presales Views from Kaka ako high-rise site Artist Rendering 15

16 VALUE CREATION FROM LAND STEWARDSHIP ACTIVITIES Employ lands at highest & best use 36,000-acre Maui sugar plantation Low domestic sugar prices present near-term financial challenges 2013 priced; agribusiness expected to be profitable 2014 crop has not been priced Investigating alternative business models for plantation 4,000 acres leased for coffee farming operations on Kauai 16

17 GROWTH IN COMPLEMENTARY BUSINESSES Hawaii s leading infrastructure company Vertically-integrated it td natural materials il & paving firm, with ownership of: One of two Grade A rock quarries on Oahu State s primary liquid asphalt terminal 7 hot mix asphalt plants Operations on all islands 60% share of state s hot mix asphalt market 50% share of state s asphalt paving market Grace Pacific s Hot Mix Waihonua Operations Site Grace Pacific s Paving Operations Port Allen Solar Farm Grace Pacific s Asphalt Operations 17

18 OPPORTUNE TIMING Increased spending for Hawaii roads Hawaii s roads consistently tl ranked among the worst in America $120M to $150M per year for the next Grace Pacific s Hot Mix Operations five years to repave & maintain Oahu s roads Expected increases in state & federal roadway spending as well Improving Hawaii economy Key indicators trending positively 7 to 11% annual growth forecasted for the next three years in Hawaii construction sector Grace Pacific s Densiphalt Operations Grace Pacific s Kapaa Quarry HMA Plant 18

19 TRANSACTION OVERVIEW Equity consideration of $235M to acquire Grace Approximately 85% in stock; 15% in cash 71% of shares subject to six-month lock-up agreement Financial benefits Accretive to earnings for the first full year Strong & stable cash flow Enhance ability to pursue future real estate opportunities Offsets more variable real estate development & agribusiness earnings Initiate modest quarterly dividend of $0.04 per share Heavy capital investment completed; modest future capital needs 19

20 CONDENSED BALANCE SHEET AS OF JUNE 30, 2013, EXCEPT AS NOTED DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNT OR AS NOTED Assets 6/30/13 12/31/12 Current assets Investments in affiliates Real estate developments Property, net Other assets Total 1,518 1,437 Available borrowing $291M capacity Average annual debt maturities $18M Liabilities & Shareholders Equity 6/30/13 12/31/12 Current liabilities excluding debt Long-term debt including current portion Debt to debt + equity 25% Deferred income taxes Accrued pension and post-retirement benefits Other long-term liabilities Shareholders equity Total 1,518 1,437 Debt to total assets 20% 20

21 WHY A&B? Unique assets & competitive strengths Proven track record Embedded growth opportunities in a development pipeline & Hawaii investments Healthy balance sheet & liquidity idit Growing Hawaii economy Best public company vehicle for capitalizing on Hawaii s upside & creating long-term shareholder value 21