A $225 million tax benefit in the fourth quarter helped major Hawaii retail property owner Alexander & Baldwin Inc. earn $231 million last year that grossly overshadowed an $8 million loss the year before.
Honolulu-based A&B announced its latest financial results Wednesday and said the tax benefit mainly related to its conversion last year to a real estate investment trust. The recent federal tax overhaul also would have had a similar effect.
As a REIT, A&B was able to erase about $220 million in deferred tax obligations that it incurred from selling mainly commercial real estate over many years. A&B deferred paying taxes on gains from the sales by using proceeds to buy other properties, though the company could have had to pay the taxes one day if it sold the properties without reinvesting proceeds in more real estate. Continue reading “Star-Advertiser: “A&B profit soars after tax benefit””