Development

A&B Properties is a subsidiary of Alexander & Baldwin, Inc. which owns over 88,000 acres in Hawaii. A&B Properties is responsible for the stewardship of these lands including planning, entitlement and development to enhance value, in keeping with community needs.

By identifying and pursuing developments and transactions that enhance value from raw land holdings, and reinvesting tax-deferred proceeds from these efforts into new developments and a portfolio of income-producing properties, A&B Properties creates value for shareholders with a diverse income stream.

The Company's development activities, once limited to its historic landholdings, have been expanded through the use of acquired land and joint ventures, enabling the further diversification of earnings through the expansion to other Hawaiian islands and the U.S. Mainland. This extension of the Company's development activities has allowed it to leverage its development expertise, market knowledge and capital resources.

Leasing

A core business objective of the Real Estate Leasing Segment is to generate the highest returns possible from its portfolio of income properties in Hawaii and on the U.S. Mainland. This is accomplished through an integrated program of selective acquisitions, effective property and asset management, positioning the properties for sale and enabling the recycling of proceeds from those sales into tax-advantaged 1031 acquisitions of properties with higher growth potential.

A&B Properties seeks to acquire income properties in markets with strong growth prospects and to enhance asset values through facility upgrades, re-tenanting and repositioning. Properties are identified for disposition when optimal values have been achieved.

Reinvestment of proceeds will not necessarily be in the same asset class, but, over time, the company has maintained a relatively consistent balance among retail, office and industrial space.

The company's mainland income properties have been acquired primarily with tax-deferred exchange proceeds, and while it is expected that future acquisitions will be predominantly acquired in a similar manner, the company is not limited to the use of tax-deferred exchange proceeds in acquiring properties to enhance and expand its operations.