Shares of Alexander & Baldwin Inc (ALEX), a real estate investment trust focused on commercial properties in Hawaii, surged 5.33% on Friday, following the release of its impressive fourth-quarter and full-year 2024 results. The stock's rally reflects investors' enthusiasm for the company's strong performance and optimistic outlook for continued growth in 2025.

ALEX reported robust leasing activity in Q4, executing 47 leases representing over 140,000 square feet of gross leasable area (GLA). For the full year 2024, the company signed 209 leases totaling 630,000 square feet of GLA, achieving blended leasing spreads of 14% in Q4 and 11.7% for the year. This strong leasing momentum, coupled with a 2.9% increase in same-store NOI for 2024, contributed to the company's solid financial performance.

In addition to its operational success, ALEX took strategic steps to enhance its balance sheet and streamline its business. The company refinanced $130 million of mortgage debt with unsecured debt at fixed rates, improving its capital structure. It also reduced G&A expenses by $4.2 million, or 12.4%, compared to 2023, reflecting its commitment to cost efficiency.

Looking ahead to 2025, ALEX expects to build on its momentum, with a focus on three key priorities: improving performance in its commercial real estate portfolio, pursuing internal and external growth opportunities, and further streamlining its business and cost structure. The company is actively exploring development and redevelopment prospects within its existing land bank, particularly in the Maui Business Park, where it anticipates strong demand for industrial properties.