Dividend coverage remains strained, as evidenced by a 2025Q4 payout ratio of 124% relative to AFFO, which was pressured by $15.2 million in quarterly capital expenditures.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 79.51M | 97.99M | 67.1M | 34M | 124.2M | 63.1M | 157.6M | 309.9M | -1.3M | 111.2M | 128.5M | 39.1M | -38.3M | 10.9M | 86M | 150M | 115M |
| Operating CF Growth % | -18.86% | 46.04% | 97.35% | -72.62% | 96.83% | -59.96% | -49.14% | 23938.46% | -101.17% | -13.46% | 228.64% | 202.09% | -451.38% | -87.33% | -42.67% | 30.43% | - |
| Operating CF / Revenue % | 38.47% | 41.41% | 32.13% | 14.75% | 48.9% | 33.16% | 36.21% | 48.09% | -0.31% | 28.7% | 27.18% | 8.57% | -10.49% | 4.17% | 36.58% | 57.3% | 8.23% |
| Net Income | 64.67M | 60.54M | 33M | -49.5M | 35.8M | 5.2M | -38.4M | -69.8M | 230.5M | -8.4M | 31.1M | 64.5M | 37.4M | 20.5M | 34M | 92M | 44M |
| Depreciation & Amortization | 38.34M | 36.31M | 36.8M | 38M | 39.6M | 42.5M | 50.5M | 42.8M | 41.4M | 119.5M | 55.7M | 55M | 41.7M | 35.1M | 109M | 107M | 105M |
| Stock-Based Compensation | 5.91M | 4.79M | 6.1M | 4.9M | 5.9M | 5.8M | 5.4M | 4.7M | 4.4M | 4.1M | 4.7M | 4.9M | 4.2M | 5.4M | 8M | 8M | 9M |
| Other Non-Cash Items | -23.16M | -8.08M | 4M | 80.4M | 33.8M | 7.3M | -8.3M | 200.3M | -28M | -25.5M | -46.7M | -123.8M | -206.3M | -43.6M | -37M | -76M | -58M |
| Working Capital Changes | -6.25M | 4.43M | -12.8M | -21.7M | 9.1M | 2.3M | 102.7M | 115.3M | -50.6M | 41.6M | 66.8M | 29.7M | 86.3M | -200K | -23M | 14M | 14M |
| Cash from Investing | -45.51M | -16.11M | 7.1M | 44.6M | 96.5M | 12M | -240.4M | -104.7M | -3.9M | -25.6M | 1M | -28M | -211.7M | -50.1M | -71M | -150M | -31M |
| Acquisitions (Net) | -208K | -306K | -9.5M | -500K | -18.1M | -1M | -3.3M | -22.6M | -8.6M | -5.9M | 15M | -53.1M | -44M | -14.6M | 67M | 95M | 10M |
| Purchase of Investments | 0 | 0 | 0 | -500K | 0 | 0 | -3.3M | -22.6M | -41.9M | -47.2M | -29.4M | -75.1M | -43.4M | -17.5M | -28M | -102M | -48M |
| Sale of Investments | 0 | 0 | 0 | 73.2M | 0 | 0 | 4.4M | 22.6M | 33.3M | 41.3M | 44.4M | 85.6M | 335.9M | 2.9M | 8M | 13M | 6M |
| Other Investing | 6.93M | 34.97M | 38.3M | -5.9M | 144.9M | 33.6M | 16.9M | 214M | 55.8M | 102.3M | 15.7M | 89.7M | 45.1M | 24.5M | -51M | -61M | 32M |
| Cash from Financing | -56.14M | -61.96M | -94.9M | -115.2M | -207.1M | -33.1M | -136.7M | -73.5M | 96.1M | -84.7M | -131.6M | -11.6M | 252.2M | 28.6M | -7M | -2M | -87M |
| Dividends Paid | -65.71M | -64.98M | -64.3M | -57.7M | -46.6M | -13.8M | -50M | -156.6M | -10.3M | -12.3M | -10.3M | -8.3M | -2M | -26.7M | -53M | -52M | -52M |
| Common Dividends | -65.71M | -64.98M | -64.3M | -57.7M | -46.6M | -13.8M | -50M | -156.6M | -10.3M | -12.3M | -10.3M | -8.3M | -2M | -26.7M | -53.1M | -52.2M | -52M |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K |
| Share Repurchases | -5.75M | -2.98M | -5.4M | -7.3M | -1.3M | -600K | -1M | -1.5M | -7.2M | 0 | -1.1M | -900K | -1M | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -15.1M | 11M | -1.4M | -1.3M | -7.4M | -700K | -500K | -1.4M | -1.1M | 1.1M | -1.1M | 0 | -28.9M | 0 | 0 |
| Net Change in Cash | -22.13M | 19.92M | -20.7M | -36.6M | 13.6M | 42M | -219.5M | 131.7M | 90.9M | 900K | -1.5M | -500K | 2.2M | -10.6M | 8M | -2M | -3M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 33.67M | 13.75M | 34.4M | 71M | 57.4M | 15.4M | 234.9M | 103.2M | 12.3M | 1.3M | 2.8M | 3.3M | 1.1M | 11.7M | 14M | 16M | 19M |
| Cash at End | 11.54M | 33.67M | 13.7M | 34.4M | 71M | 57.4M | 15.4M | 234.9M | 103.2M | 2.2M | 1.3M | 2.8M | 3.3M | 1.1M | 22M | 14M | 16M |
| Free Cash Flow | 27.28M | 47.21M | 35.9M | 12.3M | 93.9M | 42.5M | -97.5M | 13.8M | -43.8M | -4.9M | 83.8M | -36M | -543.6M | -34.5M | 19M | 55M | 84M |
| FCF Growth % | -42.22% | 31.52% | 191.87% | -86.9% | 120.94% | 143.59% | -806.52% | 131.51% | -793.88% | -105.85% | 332.78% | 93.38% | -1475.65% | -281.58% | -65.45% | -34.52% | - |
| FCF / Revenue % | 13.2% | 19.95% | 17.19% | 5.33% | 36.97% | 22.33% | -22.4% | 2.14% | -10.29% | -1.26% | 17.72% | -7.89% | -148.85% | -13.19% | 8.08% | 21.01% | 6.01% |
Non-core asset divestment drag
As reported in recent financial statements, Alexander & Baldwin's AFFO frequently fails to cover dividend payments, with the 2025Q4 payout ratio reaching 124%, highlighting a significant reliance on non-recurring cash sources to sustain distributions to shareholders during this period of strategic portfolio transition and simplification.
The recurring inability of AFFO to consistently cover the dividend suggests that the company's current distribution policy is not supported by core property operations alone. Investors should monitor whether the ongoing divestment of non-core assets will eventually yield a stable enough cash flow profile to align with the dividend payout without requiring external capital support.
Based on quarterly data, the company's recurring capital expenditures, including tenant improvements and leasing commissions, reached $15.2M in 2025Q4, which significantly eroded the cash flow available for distribution and underscores the capital-intensive nature of maintaining a legacy Hawai'i retail and industrial portfolio.
The high level of maintenance capex relative to FFO suggests that the company must reinvest a substantial portion of its earnings just to keep its assets competitive in the Hawai'i market. This structural requirement for capital suggests that true free cash flow generation may remain suppressed until the portfolio is fully optimized and the non-core drag is eliminated.
According to the provided financial data, the relationship between FFO and GAAP operating cash flow is highly inconsistent, with FFO/NI ratios swinging from -6.71 to 3.32, indicating that non-cash adjustments and lumpy operational items continue to distort the visibility of true recurring cash earnings.
This wide variance suggests that investors should be cautious when relying on FFO as a proxy for cash generation, as it appears to be heavily influenced by the timing of land sales and the volatility of the legacy construction segment. The lack of a stable conversion ratio warrants further investigation into the underlying quality of the reported earnings.
As indicated by the discrepancy between Net Income and FFO, the company's heavy reliance on depreciation add-backs may be masking the true economic cost of maintaining its aging Hawai'i asset base, as evidenced by the frequent negative AFFO results observed over the last ten quarters.
The significant gap between GAAP Net Income and FFO appears to reflect the accounting treatment of a legacy portfolio that requires constant capital infusion. This suggests that the company's reported earnings may overstate its actual cash-generating capacity, necessitating a focus on AFFO as the primary metric for assessing long-term viability.
Quick answers to the most common questions about buying ALEX stock.
Alexander & Baldwin, Inc. (ALEX) generated $79.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alexander & Baldwin, Inc. (ALEX) generated $27.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alexander & Baldwin, Inc. (ALEX) spent $52.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alexander & Baldwin, Inc. (ALEX) returned $65.7M to shareholders via cash dividends and spent $5.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.