If you’ve been watching the ticker for Alexander and Baldwin stock (NYSE: ALEX) lately, you might have noticed something weird. The price essentially flatlined near the $21 mark. No wild swings. No frantic day-trading volume. Just a steady, quiet hum.
There’s a massive reason for that.
On December 8, 2025, Alexander & Baldwin—a company that has been synonymous with Hawaii’s economy for over 150 years—announced it was getting hitched. A partnership led by MW Group, along with heavy hitters from Blackstone Real Estate and DivcoWest, struck a deal to take the company private. The price tag? A cool $2.3 billion.
For long-time shareholders, it was a "get out while the getting's good" moment. The deal offered $21.20 per share in cash. That was a 40% premium over where it was trading just the day before. Basically, if you owned the stock, you woke up 40% richer on a random Monday in December.
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What most people get wrong about A&B
People still think of Alexander & Baldwin as a "sugar company." I get it. History is sticky. They were one of the "Big Five" that basically ran Hawaii during the territorial days. But they haven't touched a stalk of sugarcane in a decade.
Today, they are a Real Estate Investment Trust (REIT). Honestly, they’re more of a "grocery store and drugstore" play than anything else. They own 3.9 million square feet of commercial space. Think of the places where locals actually go: Kaneohe Bay Shopping Center, Pearl Highlands Center, and Waianae Mall.
While tourism-heavy stocks like hotels get hammered when travel dips, A&B’s portfolio is built on "necessity retail." People still need toilet paper and milk, even if the visitor count at Waikiki drops. That’s the moat. Or at least, it was the moat that caught Blackstone’s eye.
The dividend drama of late 2025
Before the buyout news hit, there was a massive spike in the dividend. In December 2025, the board hiked the quarterly payout by over 55%, jumping from $0.225 to **$0.35 per share**.
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It was a total flex.
At the time, the forward dividend yield shot up to nearly 7%. For a REIT, that's juicy. Most analysts, like the team at Janney Montgomery Scott, saw it as a sign of incredible internal strength, even though the broader revenue growth had been a bit sluggish. It turned out to be the "last dance" for public shareholders.
Why the buyout matters for Hawaii
This isn't just a ticker symbol disappearing. It’s a shift in who owns the "land of Hawaii."
A&B owns over 28,000 acres. When a group led by Blackstone takes over, people get nervous. Blackstone already owns the Grand Wailea and The Ritz-Carlton Maui, Kapalua. By absorbing A&B, they aren't just buying buildings; they’re buying the infrastructure of daily life in the islands.
The deal is expected to close in the first half of 2026. Until then, the stock is basically a "cash proxy." It’s trading just a hair below that $21.20 buyout price.
Is there still money to be made?
If you’re looking to buy Alexander and Baldwin stock today, you’re basically playing the "arbitrage" game.
- The Current Price: Hovering around $20.85 to $21.00.
- The Payout: $21.20 when the deal closes.
- The Math: You’re looking at a gain of maybe 1% or 2%.
It’s not exactly "to the moon" territory. Most retail investors have moved on to other REITs like Whitestone REIT (WSR) or Stag Industrial (STAG) to find actual growth. Wall Street analysts have almost universally moved their ratings to "Hold" or "Neutral." There’s no point in a "Buy" rating when the ceiling is already bolted to the floor at $21.20.
The reality of the "Distress Zone"
Interestingly, some financial models, like the Altman Z-Score, flagged A&B as being in a "distress zone" earlier in 2025. Their ROIC (Return on Invested Capital) was sitting at about 4.13%, which was actually lower than their cost of capital.
Basically, they were spending more to get money than they were making from it.
This might explain why the board was so eager to take the $2.3 billion deal. It provides a clean exit before the pressures of high interest rates and Hawaii’s geographic concentration risks—like tourism fluctuations or regulatory shifts—start to bite harder.
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What happens next
If you still hold shares, you don’t really have to do anything. Once the merger is finalized later in 2026, your shares will likely be automatically converted into cash at the $21.20 rate, depending on your brokerage.
Actionable Steps for Investors:
- Check your cost basis. If you bought years ago at $30, this buyout is a realized loss. Talk to a tax pro about "tax-loss harvesting" before the deal closes.
- Watch the closing date. If the deal hits a regulatory snag (unlikely, but possible), the stock could dip.
- Look for the next "Necessity REIT." With A&B going private, the play for Hawaii-centric retail is shrinking. Look at companies with similar "grocery-anchored" models in high-barrier markets to replace this in your portfolio.
The era of A&B as a public entity is ending. It's a reminder that in the world of real estate, the land always wins—it just changes whose name is on the deed.