STOCK TITAN

Tejon Ranch Co. Announces Fourth Quarter and Year-Ended December 31, 2024 Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

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.

Positive
  • 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
Negative
  • 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 186% to $4.5 million ($0.17/share), while full-year 2024 performance was more measured with net income of $2.7 million ($0.10/share), down from $3.3 million in 2023. The contrast between strong quarterly momentum and softer annual results presents a nuanced picture.

Revenue growth was notably imbalanced across segments. The commercial/industrial division drove a 15% quarterly revenue increase, bolstered by communication lease revenue, while the full-year saw just 1% growth due to a 30% decline in mineral resources revenue following above-average rainfall. This highlights the company's vulnerability to weather-dependent revenue streams.

The real estate portfolio shows remarkable strength with 100% occupancy in their industrial properties and 96% in commercial spaces. Their equity investments are performing exceptionally well, with unconsolidated joint ventures providing 58% higher earnings than 2023, primarily from improved fuel margins and new industrial rental income.

The company maintains adequate liquidity with $146.8 million available between cash and credit lines. However, their debt-to-EBITDA ratio of 4.9x is relatively high for a real estate company, potentially limiting financial flexibility for future development projects.

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 100% occupancy of their 2.8 million square feet industrial portfolio. This exceptional occupancy rate amid broader market softness indicates the company has established TRCC as a premier logistics hub capitalizing on its strategic location along major transportation corridors.

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 93% occupancy at the Outlets at Tejon after 10 years of operation demonstrates remarkable resilience in the retail sector, which has faced substantial headwinds. This suggests the company has successfully positioned the outlet center as a destination retail location rather than relying solely on convenience-based traffic.

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.
  • 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, or 33%, 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, or 45%, 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.
  • 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, or 58%, 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, or 7%, 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, or 30%, 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.
  • 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 $605.3 million, consisting of an equity market capitalization of $426.5 million and $178.9 million of debt, and our debt to total capitalization was 29.5%. As of December 31, 2024, the Company had cash and securities totaling approximately $53.7 million and $93.1 million available on its line of credit for total liquidity of $146.8 million. The ratio of total debt including PRS of unconsolidated joint venture debt, net of cash and securities including PRS of unconsolidated joint venture cash, of $113.9 million, to trailing twelve months adjusted EBITDA of $23.4 million was 4.9x.

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 35% of contract amounts as of February 25, 2025. Although the allocation may increase, the Company is optimistic for a year-over-year increase in water sales opportunities in 2025.

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 $124,136 at December 31, 2024 and $119,788 at December 31, 2023, attributable to Centennial Founders, LLC, Note 17) 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, $0.50 par value per share:   
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/BorrowingAmount% SharePRS Debt
Revolving line-of-credit$66,942100%$66,942
Petro Travel Plaza Holdings, LLC 11,79360% 7,076
TRCC/Rock Outlet Center, LLC 20,54550% 10,273
TRC-MRC 1, LLC 21,47050% 10,735
TRC-MRC 2, LLC 21,23450% 10,617
TRC-MRC 3, LLC 32,72250% 16,361
TRC-MRC 4, LLC 60,90650% 30,453
TRC-MRC 5, LLC 52,79550% 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?

TRC's Q4 2024 net income increased 186% to $4.5 million ($0.17 per share), with revenues up 15% to $21.6 million compared to Q4 2023.

What is the current occupancy rate of TRC's industrial and commercial portfolios?

TRCC's industrial portfolio (2.8M sq ft) is 100% leased, while the commercial portfolio (620,907 sq ft) maintains 96% occupancy.

When will Terra Vista at Tejon's first residential units become available?

The first units of Terra Vista Phase 1 (228 units) will become available in Q2 2025.

What is Tejon Ranch's (TRC) current liquidity position as of December 2024?

TRC has total liquidity of $146.8 million, comprising $53.7 million in cash and securities and $93.1 million available on its credit line.

What new development projects is TRC currently undertaking at TRCC?

TRC is developing a 510,385 sq ft warehouse with Dedeaux Properties and a 700,000+ sq ft distribution facility for Nestlé USA.
Tejon Ranch

NYSE:TRC

TRC Rankings

TRC Latest News

TRC Stock Data

431.17M
24.62M
8.25%
63.73%
1.8%
Conglomerates
Real Estate
Link
United States
LEBEC