Sale of Business

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Grace Disposal Group

On November 15, 2023, the Company sold the Grace Disposal Group to Nan, Inc., an unrelated third party, for total consideration of $57.5 million, which consisted of cash proceeds of $42.5 million and a $15.0 million promissory note. The promissory note had a maturity date of January 5, 2024, and did not accrue interest. The note was paid in full in January 2024. In connection with the sale, the Company recognized a net loss on disposition of $13.2 million for the year ended December 31, 2023, which is presented within Income (loss) from discontinued operations, net of income taxes in the consolidated statements of operations. In addition, the Company was released by Grace Pacific's third-party sureties from all indemnity obligations relating to Grace Pacific's construction bonds (bid, performance and payment bonds). The financial results associated with the Grace Disposal Group are classified as discontinued operations in the consolidated statements of operations and cash flows for the year ended December 31, 2023.

Held for Sale and Discontinued Operations

As discussed in Note 4 – Real Estate Transactions, one subdivided unit at a CRE industrial property met the criteria for classification as held for sale as of December 31, 2025. In addition, the Company entered into a disposition agreement with an unrelated third party for the sale of one Company-occupied office building on Maui that houses the Company’s regional office. The Company determined that the property met the criteria to be classified as held for sale. Both transactions are structured to qualify under section §1031 of the Code. In order to allow time for the Company to identify suitable replacement properties, the Company has up to one year from the agreement execution dates to close the transactions, at its option.

The planned dispositions of the subdivided unit and the office building represent neither a strategic shift nor will they have material impact on the Company's operations and financial results and therefore, will continue to be accounted for as continuing operations. Assets and liabilities associated with the subdivided unit and the office building were measured at fair value less any costs to sell and found to be in excess of the carrying value. Those assets and liabilities are presented in the Company's consolidated balance sheets in Assets held for sale and Accrued and other liabilities, respectively, as of December 31, 2025. Refer to Note 7 – Fair Value Measurements for additional discussion of the inputs used to determine their fair value.

In November 2023, the Company entered into a disposition agreement with an unrelated third party for the sale of Waipouli Town Center, a retail property within the Commercial Real Estate segment. The Company determined that the property met the criteria to be classified as held for sale as of the agreement execution date of November 15, 2023, but would not be considered discontinued operations as it neither represented a strategic shift, nor would have a material impact on the Company's operations and financial results. The disposition was completed in October 2024. Accordingly, the Company measured the assets and liabilities associated with the property at fair value less any costs to sell as of December 31, 2023, and recorded impairment of $2.2 million in the fourth quarter of 2023. The impairment charge is presented in Impairment of assets in the consolidated statements of operations for the year ended December 31, 2023.

In December 2022, the Company's Board of Directors authorized Management to complete a sale of the Grace Disposal Group. In conjunction with the Board's authorization, the Company concluded that the Grace Disposal Group met the criteria for classification as held for sale and discontinued operations as of December 31, 2022, as it represented a strategic shift and was expected to have a material impact on the Company's operations and financial results. Accordingly, the results of operations associated with the Grace Disposal Group are presented as discontinued operations in the consolidated statements of operations and cash flows for the year ended December 31, 2023.

Refer to Note 7 – Fair Value Measurements for additional discussion of the inputs used to determine the fair value of assets held for sale.

The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in the consolidated balance sheet as of December 31, 2025 (in thousands):


	2025
Assets:
Real estate investments
Real estate property	$	11,026
Accumulated depreciation	(2,860)
Real estate property, net	8,166




Real estate investments, net	8,166






Straight-line rent receivable	35

Prepaid expenses and other assets	72


Total Assets held for sale	$	8,273


Liabilities:








Accrued and other liabilities	$	49
Total Liabilities associated with assets held for sale1	$	49

1Liabilities associated with assets held for sale is presented in Accrued and other liabilities on the Consolidated Balance Sheets as of December 31, 2025.

The following table summarizes income (loss) from discontinued operations included in the Consolidated Statements of Operations for the three years ended December 31, 2025, 2024, and 2023, (in thousands):


	2025		2024		2023

Revenue	$	—	$	—	$	201,162
Cost of sales1	—		(62)		(178,115)
Selling, general, and administrative1	(44)		(3,404)		(15,753)

Gain (loss) on disposal of assets, net	—		—		(13,242)
Operating income (loss) from discontinued operations1	(44)		(3,466)		(5,948)
Income (loss) related to joint ventures	—		—		(1,465)

Interest and other income (expense), net	—		—		77
Interest expense	—		—		(496)
Income (loss) from discontinued operations before income taxes1	(44)		(3,466)		(7,832)
Income tax benefit (expense) attributable to discontinued operations	129		—		(15)
Income (loss) from discontinued operations1	85		(3,466)		(7,847)
Loss (income) attributable to discontinued noncontrolling interest	—		—		(3,151)
Income (loss) from discontinued operations attributable to A&B Shareholders1	$	85	$	(3,466)	$	(10,998)
1Includes zero, $3.5 million, and $0.1 million in costs associated with the resolution of liabilities from the Company’s former sugar operations for the years ended December 31, 2025, 2024, and 2023, respectively.

Related Party Transactions within Discontinued Operations and Held for Sale: The Company entered into contracts in the ordinary course of business, as a supplier, with affiliate entities that required accounting under the equity method due to the Company's financial interests in such entities and also with affiliate parties that are members in entities in which the Company also was a member and held a controlling financial interest. Related to the periods during which such relationships existed, revenues earned from transactions with such affiliates was $13.7 million for the year ended December 31, 2023. Expenses recognized from transactions with such affiliates was $4.4 million for the year ended December 31, 2023. These related party relationships were terminated in conjunction with the sale of the Grace disposal group in 2023, and as such, revenues earned and expenses incurred from transactions with previously affiliated entities are not considered related party transactions for the years ended December 31, 2025 and 2024.