Alico, Inc. Announces Strategic Transformation of Agriculture Operations to Unlock Value in Land Holdings
Alico Inc (Nasdaq: ALCO) announced a strategic transformation to become a diversified land company, winding down its Alico Citrus division after the current 2025 harvest. The company owns approximately 53,371 acres across eight Florida counties and 48,700 acres of mineral rights.
The decision comes after citrus production declined 73% over the last decade due to citrus greening disease and hurricane damage. The company will focus on non-citrus agricultural opportunities and real estate development, with approximately 75% of land holdings remaining in agriculture and 25% having potential for commercial and residential development.
Management estimates current landholdings could be worth $650-750 million. Approximately 3,460 citrus acres will be managed by third-party caretakers through 2026. The company expects positive cash flow for the remainder of the fiscal year and sufficient cash reserves for at least two additional years without additional land sales.
Alico Inc (Nasdaq: ALCO) ha annunciato una trasformazione strategica per diventare una società di terreni diversificata, chiudendo la sua divisione Alico Citrus dopo la raccolta del 2025. L'azienda possiede circa 53.371 acri in otto contee della Florida e 48.700 acri di diritti minerari.
La decisione arriva dopo che la produzione di agrumi è diminuita del 73% nell'ultimo decennio a causa della malattia di greening degli agrumi e dei danni causati dagli uragani. L'azienda si concentrerà su opportunità agricole non citricole e sviluppo immobiliare, mantenendo circa 75% delle proprietà terriere in agricoltura e 25% con potenziale per sviluppo commerciale e residenziale.
La direzione stima che le attuali proprietà terriere potrebbero valere tra $650-750 milioni. Circa 3.460 acri di agrumi saranno gestiti da custodi di terzi fino al 2026. L'azienda si aspetta un flusso di cassa positivo per il resto dell'anno fiscale e riserve di liquidità sufficienti per almeno altri due anni senza ulteriori vendite di terreni.
Alico Inc (Nasdaq: ALCO) anunció una transformación estratégica para convertirse en una empresa de tierras diversificada, cerrando su división Alico Citrus después de la cosecha de 2025. La compañía posee aproximadamente 53,371 acres en ocho condados de Florida y 48,700 acres de derechos minerales.
La decisión llega después de que la producción de cítricos disminuyó 73% en la última década debido a la enfermedad de greening de los cítricos y daño por huracanes. La compañía se centrará en oportunidades agrícolas no cítricas y en el desarrollo inmobiliario, con aproximadamente 75% de sus tierras dedicadas a la agricultura y 25% con potencial para desarrollo comercial y residencial.
La dirección estima que las tierras actuales podrían valer entre $650-750 millones. Aproximadamente 3,460 acres de cítricos serán gestionados por cuidadores externos hasta 2026. La empresa espera un flujo de caja positivo durante el resto del año fiscal y reservas de efectivo suficientes para al menos dos años adicionales sin ventas de tierras adicionales.
Alico Inc (Nasdaq: ALCO)는 현재 2025년 수확 이후 Alico Citrus 부서를 종료하고 다각화된 토지 회사로 전환하기 위한 전략적 변화를 발표했습니다. 이 회사는 플로리다의 8개 카운티에 걸쳐 약 53,371에이커를 소유하고 있으며, 48,700에이커의 광물권을 보유하고 있습니다.
이번 결정은 감귤류 생산이 지난 10년 동안 73% 감소한 결과로, 이는 감귤 그리닝 병과 허리케인 피해로 인한 것입니다. 회사는 농업 기회를 비감귤 분야로 전환하고 부동산 개발에 집중할 것이며, 농업에 75%의 토지를 남기고 25%는 상업 및 주거 개발 가능성을 가지고 있습니다.
경영진은 현재의 토지 소유가 $650-750백만의 가치가 있을 것으로 추정하고 있습니다. 약 3,460에이커의 감귤 농지는 2026년까지 제3자 관리자가 관리하게 될 것입니다. 이 회사는 회계 연도 나머지 동안 긍정적인 현금 흐름을 기대하며, 추가 토지 판매 없이 최소 2년 이상의 충분한 현금 보유고를 예상하고 있습니다.
Alico Inc (Nasdaq: ALCO) a annoncé une transformation stratégique pour devenir une entreprise foncière diversifiée, en mettant fin à sa division Alico Citrus après la récolte de 2025. L'entreprise possède environ 53,371 acres répartis sur huit comtés de Floride et 48,700 acres de droits miniers.
La décision intervient après une baisse de la production d'agrumes de 73% au cours de la dernière décennie en raison de la maladie du greening et des dommages causés par des ouragans. La compagnie se concentrera sur des opportunités agricoles non agrumicoles et le développement immobilier, avec environ 75% de ses terrains restant en agriculture et 25% ayant un potentiel pour le développement commercial et résidentiel.
La direction estime que les propriétés foncières actuelles pourraient valoir entre $650-750 millions. Environ 3,460 acres d'agrumes seront gérés par des tiers jusqu'en 2026. La société s'attend à un flux de trésorerie positif pour le reste de l'année fiscale et à suffisamment de réserves de liquidités pour au moins deux années supplémentaires sans ventes supplémentaires de terrains.
Alico Inc (Nasdaq: ALCO) hat eine strategische Transformation angekündigt, um ein diversifiziertes Landunternehmen zu werden und die Alico Citrus-Sparte nach der aktuellen Ernte 2025 einzustellen. Das Unternehmen besitzt etwa 53.371 Acres in acht Counties in Florida sowie 48.700 Acres an Mineralrechten.
Die Entscheidung folgt auf einen Rückgang der Zitrusproduktion um 73% in den letzten zehn Jahren aufgrund der Zitrussäurekrankheit und der Schäden durch Hurrikans. Das Unternehmen wird sich auf nicht-zitrische landwirtschaftliche Möglichkeiten und Immobilienentwicklung konzentrieren, wobei etwa 75% der Ländereien in der Landwirtschaft verbleiben und 25% für kommerzielle und Wohnentwicklungspotenziale vorhanden sein werden.
Das Management schätzt, dass die aktuellen Landbestände einen Wert zwischen $650-750 Millionen haben könnten. Etwa 3.460 Zitrus Acres werden bis 2026 von Dritten verwaltet. Das Unternehmen erwartet für den Rest des Geschäftsjahres einen positiven Cashflow und ausreichende Liquiditätsreserven für mindestens zwei weitere Jahre ohne zusätzliche Verkaufsaktivitäten.
- Estimated land holdings value of $650-750 million
- Expected positive cash flow for remainder of fiscal year
- Cash reserves sufficient for 2+ years of operations without additional land sales
- 25% of land holdings have commercial and residential development potential
- Reduction in working capital requirements and financial volatility
- 73% decline in citrus production over past decade
- Immediate workforce reduction in citrus operations
- Discontinuation of core citrus business due to economic non-viability
- Impact of multiple hurricanes and citrus greening disease on operations
Insights
This strategic pivot marks a watershed moment for Alico, fundamentally altering its business model and financial outlook. The decision to exit citrus operations, which have seen a
The company's land portfolio of 53,371 acres across Florida, valued at approximately
The immediate impact includes workforce reduction costs and short-term operational adjustments, but the company's projected cash position suggests sufficient runway for at least two years without additional land sales. This provides flexibility in timing asset monetization to maximize value.
The transformation strategy positions Alico to capitalize on Florida's robust real estate market dynamics. The company's land holdings across eight counties represent a valuable portfolio ripe for strategic development. The plan to entitle
Historical success in land monetization, including the sale of 40,000 acres to Florida and the strategic donation that established Florida Gulf Coast University, demonstrates Alico's capability in executing high-value land transactions. The current
Company announces it will wind down its Alico Citrus division to focus on its long-term diversified land usage and real estate development strategy
Conference call and webcast to discuss announcement at 8:30 am Eastern Time today
FORT MYERS, Fla., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or “the Company”) (Nasdaq: ALCO), today announces a strategic transformation to become a diversified land company with each of its properties now expected to create profitable agricultural revenue opportunities that are not citrus-related until the Highest and Best Use (“HBU”) for these acres can be realized.
Alico owns approximately 53,371 acres of land across eight counties in Florida, as well as approximately 48,700 acres of oil, gas and mineral rights in the state. Alico Citrus, which holds the Company’s citrus production operations, has faced increasing financial challenges from citrus greening disease and environmental factors for many seasons. The Company has decided to not spend further capital on its citrus operations after the current crop is harvested in 2025. It will focus its resources on creating new opportunities for profitable growth while also acting prudently on behalf of shareholders.
Alico expects to maintain its commitment to the Florida agriculture industry through diversified farming operations on nearly all its land holdings following this citrus production transition. Alico also expects to entitle certain parcels of its land for commercial and residential development. The Company believes these strategic decisions improve its ability to provide investors with a greater return on capital that includes the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management.
“For over a century, Alico has been proud to be one of Florida’s leading citrus producers and a dedicated steward of its agricultural land, but we must now reluctantly adapt to changing environmental and economic realities. Our citrus production has declined approximately
“This difficult decision is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture by meaningfully reducing our working capital requirements for annual citrus production, reducing financial volatility and allowing the Company to focus on profitable non-citrus agricultural opportunities and entitlement work to achieve the HBU for all properties in our real estate portfolio.”
Alico plans to wind down Alico Citrus’ primary operations, which will include reducing most of its citrus production workforce effective immediately. The Company expects that approximately 3,460 citrus acres will be managed by third-party caretakers for another season through 2026.
Mr. Kiernan continued, “This strategic transformation is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture. We recognize the personal impact this decision has on our valued employees and the Company is supporting them through this transition. Through these operational changes, Alico will remain a responsible corporate citizen and steward of both our land and communities, just as we have done for more than 125 years. For decades, while maintaining its agriculture leadership, Alico has opportunistically sold land in Florida for responsible purposes that benefit both the local communities and our shareholders, such as the approximately 40,000 acres of the Alico Ranch that were sold to the State of Florida since 2017 and the 760 acres of land donated in 1992 to establish Florida Gulf Coast University. We’ve explored all available options to restore our citrus operations to profitability, but the long term production trend and the cost needed to combat citrus greening disease no longer supports our expectations for a recovery. Alico thanks our entire Alico Citrus team for their unwavering dedication, hard work, and perseverance. Despite our collective efforts, Alico believes that this strategic decision is not only correct but essential. We remain committed to creating opportunities that will maintain our legacy of stewardship while also acting prudently on behalf of our shareholders, including working with local municipalities to develop plans that will benefit their Florida communities.”
Under this new strategy, Alico:
- Expects to recognize positive cash flow for the remainder of the current fiscal year once land sales that have already been negotiated close, severance and restructuring costs are realized, and harvesting activities conclude.
- Anticipates that cash reserves at the end of the 2025 fiscal year will be sufficient to meet future operating expenses for at least two additional years without any additional land sales being required.
- Estimates that approximately
75% of its current land holdings are likely to remain agriculturally focused for the foreseeable future. - Expects that approximately
25% of its land holdings have near- and long-term potential for commercial and residential development, with approximately10% of its acres targeted for development within the next five years. - Management estimates that the value of our current landholdings could be worth approximately
$650 million to$750 million , with75% of these acres valued for agriculture usage.
Conference Call and Webcast Information
The Company will host a conference call and webcast on Monday, January 6, 2025 at 8:30 am Eastern Time to discuss its strategic transformation.
The conference call can be accessed live over the phone by dialing 1-800-445-7795 in the United States and 1-785-424-1699 from outside of the United States. The participant identification to join the conference call is ALICO. A replay will be available approximately three hours after the call concludes and can be accessed by dialing 1-844-512-2921 in the United States and 1-412-317-6671 from outside of the United States; the passcode is 11157835.
The webcast can be accessed from the Investors tab of Alico’s website at https://www.alicoinc.com/ under “News / Events.”
About Alico
Alico, Inc. currently operates two divisions: Alico Citrus, currently one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. While Alico Citrus will cease operations after the 2024/2025 harvest due to environmental and financial challenges, Alico remains committed to Florida’s agriculture industry, and will focus on its long-term diversified land usage and real estate development strategy. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s strategic transformation, the Company’s future cash flow and cash reserves, the future use and estimated value of the Company’s land holdings, the Company’s expected future profitable growth, expectations for the management of certain acres by third-party caretakers, and any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “if,” “will,” “should,” “expects,” “plans,” “hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: our ability to successfully develop and execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; water use regulations restricting our access to water; harm to our reputation; tax risks associated with a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the result of any significant corporate transactions; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and certain of the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed with the Securities and Exchange Commission (the “SEC”) on December 2, 2024. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Investor Contact:
John Mills
ICR
(646) 277-1254
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
Media Contact:
Michael Wolfe
ICR
alicopr@icrinc.com
FAQ
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