Tejon Ranch (TRC)2024-11-07 18:15Revenue Performance - Commercial/industrial revenues for Q3 2024 were $3,002,000, a decrease of 11.6% from $3,397,000 in Q3 2023[70] - Mineral resources revenues for Q3 2024 were $3,166,000, up 1.5% from $3,118,000 in Q3 2023[72] - The Farming segment generated revenues of $3,242,000 in Q3 2024, an increase of 22.7% from $2,642,000 in Q3 2023[73] - Ranch operations revenues increased to $1,446,000 in Q3 2024, compared to $1,052,000 in Q3 2023, marking a growth of 37.5%[75] - Total revenues for Petro Travel Plaza Holdings, LLC for the three months ended September 30, 2024, were $40,446,000, a decrease of 10.5% from $44,976,000 in the same period of 2023[80] - For the nine months ended September 30, 2024, total revenues were $143,392,000, an increase of 1.0% compared to $140,984,000 in 2023[81] Earnings and Investments - Equity in earnings of unconsolidated joint ventures increased to $3,329,000 for Q3 2024, compared to $1,161,000 in Q3 2023[70] - The equity in income of unconsolidated joint ventures for the nine months ended September 30, 2024, was $7,611,000, up from $4,616,000 in the same period of 2023[74] - The equity in earnings for Petro Travel Plaza Holdings, LLC for the three months ended September 30, 2024, was $1,736,000, compared to a loss of $2,785,000 in the same period of 2023[80] Assets and Liabilities - The total assets for Petro Travel Plaza Holdings, LLC as of September 30, 2024, were $322,146,000, with a joint venture debt of $222,746,000[83] - The outstanding balance of the term note for the TRCC/Rock Outlet Center LLC joint venture was $20,626,000 as of September 30, 2024, after a reduction of $6,000,000[77] - The company has a revolving line of credit with an outstanding balance of $59,942,000, with an effective interest rate of 7.45% as of September 30, 2024[160] - Marketable securities amounted to $6,270,000 with a weighted average interest rate of 4.98%[162] - The company reported a total equity of $81,667,000 as of September 30, 2024, compared to $85,857,000 at the end of 2023[83] Operational Highlights - The Resort/Residential segment reported losses of $328,000 for Q3 2024, slightly improved from a loss of $367,000 in Q3 2023[71] - The construction of a 446,400 square foot industrial building was completed in Q4 2023, with 100% of the rentable space leased[76] Risk Management - The company’s market risk exposure includes interest rates and commodity prices, with a focus on preserving principal while maximizing yields[158] - The company’s investment strategy limits investments to securities with a maturity of less than five years and an investment grade rating[159] - As of September 30, 2024, there were no receivables exposed to commodity price fluctuations due to the absence of at-risk pistachio crop receivables[165] - The company is currently not facing any adverse price fluctuations impacting its farming inventories[165] Farming Operations - Farming inventories include costs associated with crop production, which are recorded as incurred and historically recovered through post-harvest crop sales[165] - The company’s water service contract with TCWD requires an annual payment of $5,434,000 for water deliveries[84]