Tejon Ranch Co. Announces Fourth Quarter and Year-Ended December 31, 2024 Financial Results
Tejon Ranch Co. (NYSE:TRC) reported its Q4 and full-year 2024 financial results, marking growth in multiple areas. Q4 GAAP net income increased 186% to $4.5 million ($0.17 per share), while revenues rose 15% to $21.6 million compared to Q4 2023.
The Tejon Ranch Commerce Center (TRCC) drove year-over-year revenue growth, with its industrial portfolio of 2.8 million square feet maintaining 100% occupancy. The company announced a joint venture with Dedeaux Properties to build a 510,385 square foot warehouse facility. The commercial portfolio stands at 96% leased, with total TRCC comprising 7.1 million square feet.
Key developments include the construction of Terra Vista at Tejon Phase 1 (228 residential units) and a 700,000+ square foot distribution facility for Nestlé USA. Full-year 2024 results showed net income of $2.7 million ($0.10 per share), with total revenues increasing 1% to $54.7 million. The company maintains strong liquidity with $146.8 million available through cash, securities, and credit lines.
Tejon Ranch Co. (NYSE:TRC) ha riportato i risultati finanziari del Q4 e dell'intero anno 2024, segnando una crescita in molteplici aree. Il reddito netto GAAP del Q4 è aumentato del 186% a $4,5 milioni ($0,17 per azione), mentre i ricavi sono cresciuti del 15% a $21,6 milioni rispetto al Q4 2023.
Il Tejon Ranch Commerce Center (TRCC) ha guidato la crescita dei ricavi anno su anno, con il suo portafoglio industriale di 2,8 milioni di piedi quadrati che mantiene un'occupazione del 100%. L'azienda ha annunciato una joint venture con Dedeaux Properties per costruire una struttura di magazzino di 510.385 piedi quadrati. Il portafoglio commerciale è attualmente affittato al 96%, con un totale di TRCC che comprende 7,1 milioni di piedi quadrati.
Sviluppi chiave includono la costruzione di Terra Vista at Tejon Fase 1 (228 unità residenziali) e una struttura di distribuzione di oltre 700.000 piedi quadrati per Nestlé USA. I risultati dell'intero anno 2024 hanno mostrato un reddito netto di $2,7 milioni ($0,10 per azione), con ricavi totali in aumento dell'1% a $54,7 milioni. L'azienda mantiene una forte liquidità con $146,8 milioni disponibili attraverso contante, titoli e linee di credito.
Tejon Ranch Co. (NYSE:TRC) informó sus resultados financieros del Q4 y del año completo 2024, marcando un crecimiento en múltiples áreas. La renta neta GAAP del Q4 aumentó un 186% a $4.5 millones ($0.17 por acción), mientras que los ingresos crecieron un 15% a $21.6 millones en comparación con el Q4 de 2023.
El Tejon Ranch Commerce Center (TRCC) impulsó el crecimiento de ingresos interanual, con su portafolio industrial de 2.8 millones de pies cuadrados manteniendo una ocupación del 100%. La compañía anunció una empresa conjunta con Dedeaux Properties para construir una instalación de almacén de 510,385 pies cuadrados. El portafolio comercial se encuentra al 96% arrendado, con un total de TRCC que comprende 7.1 millones de pies cuadrados.
Los desarrollos clave incluyen la construcción de Terra Vista en Tejon Fase 1 (228 unidades residenciales) y una instalación de distribución de más de 700,000 pies cuadrados para Nestlé USA. Los resultados del año completo 2024 mostraron un ingreso neto de $2.7 millones ($0.10 por acción), con ingresos totales aumentando un 1% a $54.7 millones. La compañía mantiene una sólida liquidez con $146.8 millones disponibles a través de efectivo, valores y líneas de crédito.
테존 랜치 컴퍼니 (NYSE:TRC)는 2024년 4분기 및 연간 재무 결과를 발표하며 여러 분야에서의 성장을 기록했습니다. 4분기 GAAP 순이익은 186% 증가하여 450만 달러($0.17 per 주식)에 달했으며, 수익은 2023년 4분기 대비 15% 증가한 2160만 달러에 이르렀습니다.
테존 랜치 상업 센터 (TRCC)는 전년 대비 수익 성장의 원동력이 되었으며, 280만 평방 피트의 산업 포트폴리오는 100%의 점유율을 유지하고 있습니다. 회사는 Dedeaux Properties와 공동 투자하여 510,385 평방 피트의 창고 시설을 건설할 계획을 발표했습니다. 상업 포트폴리오는 96% 임대 중이며, TRCC의 총 면적은 710만 평방 피트에 달합니다.
주요 개발 사항으로는 테존 1단계의 테라 비스타 건설(228개 주거 유닛)과 네슬레 USA를 위한 70만 평방 피트 이상의 유통 시설이 포함됩니다. 2024년 전체 결과는 순이익이 270만 달러($0.10 per 주식)로 나타났으며, 총 수익은 1% 증가하여 5470만 달러에 달했습니다. 회사는 현금, 유가증권 및 신용 한도를 통해 1억 4680만 달러의 강력한 유동성을 유지하고 있습니다.
Tejon Ranch Co. (NYSE:TRC) a annoncé ses résultats financiers du 4ème trimestre et de l'année complète 2024, marquant une croissance dans plusieurs domaines. Le revenu net GAAP du 4ème trimestre a augmenté de 186% pour atteindre 4,5 millions de dollars (0,17 $ par action), tandis que les revenus ont augmenté de 15% pour atteindre 21,6 millions de dollars par rapport au 4ème trimestre 2023.
Le Tejon Ranch Commerce Center (TRCC) a été le moteur de la croissance des revenus d'une année sur l'autre, avec son portefeuille industriel de 2,8 millions de pieds carrés maintenant un taux d'occupation de 100%. L'entreprise a annoncé un partenariat avec Dedeaux Properties pour construire une installation de stockage de 510 385 pieds carrés. Le portefeuille commercial est loué à 96%, avec un total de TRCC qui comprend 7,1 millions de pieds carrés.
Parmi les développements clés figurent la construction de Terra Vista à Tejon Phase 1 (228 unités résidentielles) et une installation de distribution de plus de 700 000 pieds carrés pour Nestlé USA. Les résultats de l'année complète 2024 ont montré un revenu net de 2,7 millions de dollars (0,10 $ par action), avec des revenus totaux augmentant de 1% pour atteindre 54,7 millions de dollars. L'entreprise maintient une forte liquidité avec 146,8 millions de dollars disponibles via des liquidités, des titres et des lignes de crédit.
Tejon Ranch Co. (NYSE:TRC) hat seine finanziellen Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 bekannt gegeben und ein Wachstum in mehreren Bereichen verzeichnet. Der GAAP-Nettoertrag im 4. Quartal stieg um 186% auf 4,5 Millionen USD (0,17 USD pro Aktie), während die Einnahmen im Vergleich zum 4. Quartal 2023 um 15% auf 21,6 Millionen USD zunahmen.
Das Tejon Ranch Commerce Center (TRCC) trieb das Umsatzwachstum im Jahresvergleich voran, wobei das industrielle Portfolio von 2,8 Millionen Quadratfuß eine Auslastung von 100% aufrechterhielt. Das Unternehmen kündigte ein Joint Venture mit Dedeaux Properties an, um eine Lagerhalle mit einer Fläche von 510.385 Quadratfuß zu bauen. Das kommerzielle Portfolio ist zu 96% vermietet, wobei das gesamte TRCC 7,1 Millionen Quadratfuß umfasst.
Zu den wichtigsten Entwicklungen gehören der Bau von Terra Vista in Tejon Phase 1 (228 Wohneinheiten) und eine Verteilungsanlage von über 700.000 Quadratfuß für Nestlé USA. Die Ergebnisse des gesamten Jahres 2024 zeigten einen Nettoertrag von 2,7 Millionen USD (0,10 USD pro Aktie), wobei die Gesamteinnahmen um 1% auf 54,7 Millionen USD stiegen. Das Unternehmen hält eine starke Liquidität mit 146,8 Millionen USD, die über Bargeld, Wertpapiere und Kreditlinien verfügbar sind.
- 186% increase in Q4 net income to $4.5 million
- 15% revenue growth in Q4 to $21.6 million
- 100% occupancy in industrial portfolio (2.8M sq ft)
- 96% occupancy in commercial portfolio
- Strong liquidity position of $146.8 million
- Full-year net income declined to $2.7M from $3.3M in 2023
- 30% decrease in mineral resources revenue due to lower water sales
- Higher production costs affecting farming operations
- Debt to total capitalization ratio at 29.5%
Insights
Tejon Ranch's Q4 2024 financial results show significant quarterly improvement with net income surging
Revenue growth was notably imbalanced across segments. The commercial/industrial division drove a
The real estate portfolio shows remarkable strength with
The company maintains adequate liquidity with
The mixed-use development strategy is gaining traction with their first multi-family project nearing completion, which will diversify revenue streams beyond commercial/industrial leasing and agricultural operations. The company's pivot to include olives in their agricultural portfolio represents a prudent hedging strategy against almond market volatility.
Tejon Ranch's strategic positioning at the "gateway to Southern California" is bearing fruit as evidenced by the
The company is executing a well-timed portfolio diversification with the Terra Vista at Tejon residential development. The 228-unit first phase coming online in Q2 2025 marks a critical evolution from purely commercial/industrial development to true mixed-use, creating synergistic value across property types and potentially accelerating absorption rates for future commercial space.
The new 510,385 square foot joint venture with Dedeaux Properties and the 700,000+ square foot Nestlé USA facility represent significant value creation through build-to-suit and speculative development. These projects add high-quality, modern industrial space that continues to see strong demand despite economic uncertainty.
The
Management's references to three additional mixed-use master planned communities indicates a substantial long-term development pipeline, though California's regulatory environment will likely extend timelines. The company's measured approach to phasing these developments while maintaining steady income from legacy operations provides downside protection through diversified revenue streams.
TEJON RANCH, Calif., March 06, 2025 (GLOBE NEWSWIRE) -- Tejon Ranch Co. (NYSE:TRC), ("Tejon" or the "Company"), a diversified real estate development and agribusiness company, today announced financial results for the fourth quarter and year-ended December 31, 2024.
“2024 marked another year of progress as we continue to generate steady income streams from our legacy operations, while further positioning the Company to unlock future growth from land development opportunities and other business units,” said Gregory S. Bielli, President & CEO of Tejon Ranch Company. “As the gateway to Southern California, Tejon Ranch Commerce Center ("TRCC") continues to be a success and was the primary driver in our year-over-year total revenue growth for both the fourth quarter and full year. In late 2024, we announced a joint venture with Dedeaux Properties to build a 510,385 square foot warehouse facility as we look to continue unlocking growth from our industrial portfolio in 2025. Furthermore, the impending completion of the initial units of the Company’s first multi-family development, Terra Vista at Tejon, positions TRCC as a true mixed-use, master planned community. This important evolution will allow the Company to further refine and capitalize on skills and capabilities that we believe ultimately will guide the future development of three additional mixed-use master planned communities."
“Overall, I remain confident in Tejon’s long-term growth trajectory,” continued Bielli, “and I'm optimistic about the near future as we enter into our next growth phase with Matthew Walker taking the reins as the new President and CEO at the end of this month.”
Commercial/Industrial Real Estate Highlights
- Leasing and occupancy updates as of December 31, 2024:
- TRCC industrial portfolio, through the Company's joint venture partnerships, consists of 2.8 million square feet of gross leasable area (GLA) and is
100% leased. - TRCC commercial portfolio, wholly owned and through joint venture partnerships, consists of 620,907 square feet of GLA and is
96% leased. - In total, TRCC comprises 7.1 million square feet of GLA.
- Outlets at Tejon celebrated its 10-year anniversary in 2024, with
93% occupancy as of December 31, 2024.
- TRCC industrial portfolio, through the Company's joint venture partnerships, consists of 2.8 million square feet of gross leasable area (GLA) and is
- Construction of Terra Vista at Tejon Phase 1, the Company's multi-family residential development located in TRCC, is underway. Phase 1 includes 228 of the planned 495 residential units, with the first units becoming available in the second quarter of 2025 and the remaining units in this phase coming online soon thereafter. See www.terravistatejon.com for further information.
- Construction of a new distribution facility for Nestlé USA is underway on the east side of TRCC, which will total more than 700,000 square feet.
- On October 4, 2024, a new joint venture with Dedeaux Properties was formed to develop, lease, and manage an industrial building of 510,385 square feet of space at TRCC-East.
Fourth-Quarter 2024 Financial Highlights
- GAAP net income attributable to common stockholders for the fourth quarter of 2024 increased
186% to$4.5 million , or net income per share attributable to common stockholders, basic and diluted, of$0.17 , compared with net income attributable to common stockholders of$1.6 million , or net income per share attributable to common stockholders, basic and diluted, of$0.06 , for the fourth quarter of 2023. - Revenues and other income, including equity in earnings of unconsolidated joint ventures, for the fourth quarter of 2024 increased
15% to$21.6 million , compared to$18.8 million for the same period in 2023. Factors behind this change included:- Commercial/industrial segment revenues increased
$1.0 million , or33% , when compared with the fourth quarter in 2023. The primary driver of this increase was a$1.2 million increase in communication lease revenue, attributable primarily to non-recurring amounts received from a right-of-way tenant that increased its fiber optic cables, the increase was partially offset by a decrease of$276,000 in revenue from the PEF lease due to lower spark spread payments. - Equity in earnings of unconsolidated joint venture increased
$1.0 million , or45% , when compared with the fourth quarter in 2023. The increase was mainly attributed to the increase of Petro Travel Plaza equity, or TA/Petro, in earnings due to higher fuel margins and a new revenue stream generated by the completed industrial building of TRC-MRC 5, LLC joint venture.
- Commercial/industrial segment revenues increased
- Adjusted EBITDA, a non-GAAP measure, increased
116% to$10.5 million for the fourth quarter of 2024 compared to$4.8 million for the same period in 2023.
Tejon Ranch Co. provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company's cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.
Fiscal 2024 Financial Highlights
- GAAP net income attributable to common stockholders for fiscal 2024 was
$2.7 million , or net income per share attributable to common stockholders, basic and diluted of$0.10 , compared with net income attributable to common stockholders of$3.3 million , or$0.12 per share basic and diluted, for 2023. - Revenues and other income, including equity in earnings of unconsolidated joint ventures, increased
1% to$54.7 million in 2024, compared to$54.0 million in 2023. Factors driving this increase included:- An increase in equity in earnings of unconsolidated joint ventures of
$4.0 million , or58% , compared with 2023, primarily resulting from better fuel margins at our TA/Petro joint venture, and a new revenue stream generated by the completed industrial building of TRC-MRC 5, LLC joint venture, combined with higher rental rates or rental escalations of our various joint ventures with Majestic. - An increase in commercial/industrial segment revenue of
$0.8 million , or7% , compared with 2023, primarily resulting from an increase in communication leases revenue as mentioned above. - The increases were partially offset by a decrease of
$4.3 million , or30% , in mineral resources revenue compared to 2023, primarily attributed to lower water sales revenue due to back-to-back above average rainfall years in California.
- An increase in equity in earnings of unconsolidated joint ventures of
- Adjusted EBITDA, a non-GAAP measure, increased
9% to$23.4 million for 2024, compared to$21.4 million for 2023.
Tejon Ranch Co. provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company's cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.
Liquidity and Capital Resources
As of December 31, 2024, total capitalization, including pro rata share (PRS) of unconsolidated joint venture debt, was approximately
2025 Outlook:
The Company will continue to opportunistically pursue commercial/industrial development, multi-family development, leasing, sales, and investment within TRCC and its joint ventures. The Company also will continue to invest in its residential projects, including Mountain Village at Tejon Ranch, Centennial at Tejon Ranch and Grapevine at Tejon Ranch.
California is one of the most highly regulated states in which to engage in real estate development and, as such, natural delays, including those resulting from litigation, can be reasonably anticipated. Accordingly, throughout the next few years, the Company expects net income to fluctuate year-to-year based on the above-mentioned activity, along with commodity prices, production within its farming and mineral resources segments, and the timing of land sales and leasing of land within its commercial developments.
Water sales opportunities each year are impacted by the total precipitation and snowpack runoff in Northern California from winter storms along with State Water Project, or SWP, allocations. The current SWP allocation is at
The Company expects its 2025 farming operations to continue to be impacted by higher costs of production, such as fuel costs, fertilizer costs, pest control costs, and labor costs. The almond industry currently projects 2024 yields to be about 2.6 billion pounds, down from the previous report of over 3.0 billion pounds. The Company expects this estimate, along with a lower inventory carry forward, will help improve pricing. Additionally in 2025, the Company's crop segmentation in its farming division will include the planting of an olive orchard, diversifying the Company's commodity products and best positioning the Company for market changes.
About Tejon Ranch Co.
Tejon Ranch Co. (NYSE: TRC) is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 15 miles east of Bakersfield.
More information about Tejon Ranch Co. can be found online at http://www.tejonranch.com.
Forward Looking Statements:
The statements contained herein, which are not historical facts, are forward-looking statements based on economic forecasts, strategic plans, and other factors, which by their nature involve risk and uncertainties. In particular, among the factors that could cause actual results to differ materially are the following: business conditions and the general economy, future commodity prices and yields, market forces, the ability to obtain various governmental entitlements and permits, interest rates and other risks inherent in real estate and agriculture businesses. For further information on factors that could affect the Company, the reader should refer to the Company’s filings with the Securities and Exchange Commission.
| TEJON RANCH CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) | ||||||
| December 31 | ||||||
| 2024 | 2023 | |||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 39,267 | $ | 31,907 | ||
| Marketable securities - available-for-sale | 14,441 | 32,556 | ||||
| Accounts receivable | 7,916 | 8,352 | ||||
| Inventories | 3,972 | 3,493 | ||||
| Prepaid expenses and other current assets | 3,806 | 3,502 | ||||
| Total current assets | 69,402 | 79,810 | ||||
| Real estate and improvements - held for lease, net | 16,253 | 16,609 | ||||
| Real estate development (includes | 377,905 | 337,257 | ||||
| Property and equipment, net | 56,387 | 53,985 | ||||
| Investments in unconsolidated joint ventures | 28,980 | 33,648 | ||||
| Net investment in water assets | 55,091 | 52,130 | ||||
| Other assets | 3,980 | 4,084 | ||||
| TOTAL ASSETS | $ | 607,998 | $ | 577,523 | ||
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities: | ||||||
| Trade accounts payable | $ | 9,085 | $ | 6,457 | ||
| Accrued liabilities and other | 5,549 | 3,214 | ||||
| Deferred income | 2,162 | 1,891 | ||||
| Total current liabilities | 16,796 | 11,562 | ||||
| Long-term debt, less current portion | — | — | ||||
| Revolving line of credit | 66,942 | 47,942 | ||||
| Long-term deferred gains | 11,447 | 11,447 | ||||
| Deferred tax liability | 9,059 | 8,269 | ||||
| Other liabilities | 14,798 | 15,207 | ||||
| Total liabilities | 119,042 | 94,427 | ||||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Tejon Ranch Co. stockholders’ equity | ||||||
| Common stock, | ||||||
| Authorized shares - 50,000,000 | ||||||
| Issued and outstanding shares - 26,822,768 at December 31, 2024 and 26,770,545 at December 31, 2023 | 13,412 | 13,386 | ||||
| Additional paid-in capital | 348,497 | 345,609 | ||||
| Accumulated other comprehensive income (loss) | 87 | (171 | ) | |||
| Retained earnings | 111,598 | 108,908 | ||||
| Total Tejon Ranch Co. stockholders’ equity | 473,594 | 467,732 | ||||
| Non-controlling interest | 15,362 | 15,364 | ||||
| Total equity | 488,956 | 483,096 | ||||
| TOTAL LIABILITIES AND EQUITY | $ | 607,998 | $ | 577,523 | ||
| TEJON RANCH CO. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except earnings per share) | |||||||||||||||
| Three-Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Real estate - commercial/industrial | $ | 4,055 | $ | 3,052 | $ | 12,552 | $ | 11,758 | |||||||
| Mineral resources | 2,527 | 2,894 | 10,214 | 14,524 | |||||||||||
| Farming | 9,676 | 9,098 | 13,925 | 13,950 | |||||||||||
| Ranch operations | 1,677 | 1,123 | 5,195 | 4,507 | |||||||||||
| Total revenues | 17,935 | 16,167 | 41,886 | 44,739 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Real estate - commercial/industrial | 1,905 | 2,536 | 7,910 | 8,053 | |||||||||||
| Real estate - resort/residential | 299 | 449 | 2,615 | 1,528 | |||||||||||
| Mineral resources | 2,009 | 1,694 | 7,052 | 8,685 | |||||||||||
| Farming | 8,145 | 9,613 | 17,551 | 15,257 | |||||||||||
| Ranch operations | 1,153 | 1,179 | 4,864 | 5,043 | |||||||||||
| Corporate expenses | 2,298 | 3,048 | 11,092 | 9,872 | |||||||||||
| Total expenses | 15,809 | 18,519 | 51,084 | 48,438 | |||||||||||
| Operating (loss) income | 2,126 | (2,352 | ) | (9,198 | ) | (3,699 | ) | ||||||||
| Other income: | |||||||||||||||
| Investment income | 430 | 782 | 2,273 | 2,557 | |||||||||||
| Other (loss) income, net | (82 | ) | (410 | ) | (292 | ) | (138 | ) | |||||||
| Total other income, net | 348 | 372 | 1,981 | 2,419 | |||||||||||
| (Loss) income from operations before equity in earnings of unconsolidated joint ventures and income tax expense | 2,474 | (1,980 | ) | (7,217 | ) | (1,280 | ) | ||||||||
| Equity in earnings of unconsolidated joint ventures, net | 3,270 | 2,252 | 10,881 | 6,868 | |||||||||||
| Income before income taxes | 5,744 | 272 | 3,664 | 5,588 | |||||||||||
| Income tax expense | 1,262 | (1,296 | ) | 976 | 2,323 | ||||||||||
| Net income | 4,482 | 1,568 | 2,688 | 3,265 | |||||||||||
| Net (loss) income attributable to non-controlling interest | (1 | ) | 3 | (2 | ) | — | |||||||||
| Net income attributable to common stockholders | $ | 4,483 | $ | 1,565 | $ | 2,690 | $ | 3,265 | |||||||
| Net income per share attributable to common stockholders, basic | $ | 0.17 | $ | 0.06 | $ | 0.10 | $ | 0.12 | |||||||
| Net income per share attributable to common stockholders, diluted | $ | 0.17 | $ | 0.06 | $ | 0.10 | $ | 0.12 | |||||||
| Weighted average number of shares outstanding: | |||||||||||||||
| Common stock | 26,821,449 | 26,739,791 | 26,806,173 | 26,706,824 | |||||||||||
| Common stock equivalents: stock options, grants | 7,895 | 2,789 | 17,233 | — | |||||||||||
| Diluted shares outstanding | 26,829,344 | 26,742,580 | 26,823,406 | 26,706,824 | |||||||||||
| Non-GAAP Financial Measure |
This news release includes references to the Company’s non-GAAP financial measure “EBITDA.” EBITDA represents earnings before interest, taxes, depreciation, and amortization, a non-GAAP financial measure, and is used by us and others as a supplemental measure of performance. We use Adjusted EBITDA to assess the performance of our core operations, for financial and operational decision making, and as a supplemental or additional means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as EBITDA, excluding stock compensation expense and asset abandonment charges. We believe Adjusted EBITDA provides investors relevant and useful information because it permits investors to view income from our operations on an unleveraged basis before the effects of taxes, depreciation and amortization, stock compensation expense, and abandonment charges. By excluding interest expense and income, EBITDA and Adjusted EBITDA allow investors to measure our performance independent of our capital structure and indebtedness and, therefore, allow for a more meaningful comparison of our performance to that of other companies, both in the real estate industry and in other industries. We believe that excluding charges related to share-based compensation facilitates a comparison of our operations across periods and among other companies without the variances caused by different valuation methodologies, the volatility of the expense (which depends on market forces outside our control), and the assumptions and the variety of award types that a company can use. EBITDA and Adjusted EBITDA have limitations as measures of our performance. EBITDA and Adjusted EBITDA do not reflect our historical cash expenditures or future cash requirements for capital expenditures or contractual commitments. While EBITDA and Adjusted EBITDA are relevant and widely used measures of performance, they do not represent net income or cash flows from operations as defined by GAAP. Further, our computation of EBITDA and Adjusted EBITDA may not be comparable to similar measures reported by other companies.
| TEJON RANCH CO. Non-GAAP Financial Measures (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 4,482 | $ | 1,568 | $ | 2,688 | $ | 3,265 | |||||||
| Net income (loss) attributed to non-controlling interest | (1 | ) | 3 | (2 | ) | — | |||||||||
| Interest, net | |||||||||||||||
| Consolidated interest income | (430 | ) | (782 | ) | (2,273 | ) | (2,557 | ) | |||||||
| Our share of interest expense from unconsolidated joint ventures | 1,540 | 1,261 | 6,165 | 4,879 | |||||||||||
| Total interest, net | 1,110 | 479 | 3,892 | 2,322 | |||||||||||
| Income tax expense | 1,262 | (1,296 | ) | 976 | 2,323 | ||||||||||
| Depreciation and amortization | |||||||||||||||
| Consolidated | 1,748 | 1,803 | 4,885 | 4,806 | |||||||||||
| Our share of depreciation and amortization from unconsolidated joint ventures | 1,764 | 1,413 | 6,753 | 5,418 | |||||||||||
| Total depreciation and amortization | 3,512 | 3,216 | 11,638 | 10,224 | |||||||||||
| EBITDA | $ | 10,367 | $ | 3,964 | $ | 19,196 | $ | 18,134 | |||||||
| Stock compensation expense | $ | 96 | $ | 883 | $ | 4,182 | $ | 3,252 | |||||||
| Adjusted EBITDA | $ | 10,463 | $ | 4,847 | $ | 23,378 | $ | 21,386 | |||||||
| Summary of Outstanding Debt as of December 31, 2024 (Unaudited) | ||||||
| Entity/Borrowing | Amount | % Share | PRS Debt | |||
| Revolving line-of-credit | $ | 66,942 | 100 | % | $ | 66,942 |
| Petro Travel Plaza Holdings, LLC | 11,793 | 60 | % | 7,076 | ||
| TRCC/Rock Outlet Center, LLC | 20,545 | 50 | % | 10,273 | ||
| TRC-MRC 1, LLC | 21,470 | 50 | % | 10,735 | ||
| TRC-MRC 2, LLC | 21,234 | 50 | % | 10,617 | ||
| TRC-MRC 3, LLC | 32,722 | 50 | % | 16,361 | ||
| TRC-MRC 4, LLC | 60,906 | 50 | % | 30,453 | ||
| TRC-MRC 5, LLC | 52,795 | 50 | % | 26,398 | ||
| $ | 288,407 | $ | 178,855 | |||
| Capitalization and Debt Ratios (Unaudited) | ||||
| December 31, 2024 | ||||
| Period end share price | $ | 15.90 | ||
| Outstanding shares | 26,822,768 | |||
| Equity market capitalization as of reporting date | $ | 426,482 | ||
| Total debt, including PRS unconsolidated joint venture debt | $ | 178,854 | ||
| Total market capitalization | $ | 605,336 | ||
| Debt to total market capitalization | 29.5 | % | ||
| Net debt, including PRS unconsolidated joint venture debt and cash, to TTM adjusted EBITDA | 4.9 | x | ||
Contacts
Tejon Ranch Co.
Nicholas Ortiz
Senior Vice President, Corporate Communications & Public Affairs
661-663-4212
nortiz@tejonranch.com
Gateway Group
Cody Slach and Cody Cree
949-574-3860
TRC@gateway-grp.com
FAQ
What was Tejon Ranch's (TRC) Q4 2024 earnings performance?
What is the current occupancy rate of TRC's industrial and commercial portfolios?
When will Terra Vista at Tejon's first residential units become available?
What is Tejon Ranch's (TRC) current liquidity position as of December 2024?
What new development projects is TRC currently undertaking at TRCC?
