Maui Highlighted in A&B Second Quarter 2016 Results
In the Development & Sales sector, seven binding sales contracts were made at the 70-unit Keala O Wailea on Maui averaging $1.1 million per unit. To date, there have been 43 binding sales at the property, at an average price of $1.1 million or $820 per square foot. The company reports that site construction has advanced with a projected delivery date for the completion of units targeted for late 2017.
According to a 2nd Quarter report filed by A&B, operating profit from Development & Sales in the second quarter of 2015 was $14.3 million and “primarily included the sale of three Kahala Avenue properties and a 2.4-acre parcel at Maui Business Park.”
“Our core strategy of expanding our Hawaiʻi commercial portfolio and increasing recurring earnings produced solid results in the quarter. Leasing operating profit and net operating income were up 6.5% and 4.2%, respectively, in the quarter. In addition, we completed Mainland dispositions to fund the Mānoa Marketplace acquisition, and launched our important Kailua redevelopment efforts at the former Macy’s site,” said Chris Benjamin, A&B president & chief executive officer.
He continued, “Based on strong performance year to date and a continued favorable outlook, we expect Leasing operating profit to grow 5-7% in 2016, and we are increasing our full-year NOI growth estimate to 3-4%, up from 2%. We expect to be announcing more commercial growth opportunities as the year progresses.”
According to Benjamin, A&B “made good progress in Agribusiness, where our final sugar harvest is on track and our sugar cessation-related losses so far this year are lower than originally projected. We’re now in a position to improve our full-year guidance for cessation costs.”