Tejon Ranch (TRC) - 2023 Q1 - Quarterly Report

Revenue Performance - Commercial/Industrial real estate segment revenues decreased to $2,676,000 in Q1 2023 from $7,349,000 in Q1 2022, a decline of 63.6%[86] - Mineral Resources segment revenues fell to $6,912,000 in Q1 2023 compared to $11,968,000 in Q1 2022, representing a decrease of 42.3%[88] - Farming segment revenues increased to $1,185,000 in Q1 2023 from $655,000 in Q1 2022, a growth of 80.8%[89] - Ranch Operations segment revenues rose to $1,492,000 in Q1 2023, up from $1,048,000 in Q1 2022, an increase of 42.5%[90] - The total revenues from all unconsolidated joint ventures decreased to $41,421,000 in Q1 2023 from $42,774,000 in Q1 2022, a decline of 3.2%[95] Joint Ventures and Investments - The Company reported equity in earnings from unconsolidated joint ventures of $1,517,000 for Q1 2023, compared to $1,213,000 in Q1 2022, a growth of 24.9%[91] - The Company’s investment in unconsolidated joint ventures was $36,291,000 as of March 31, 2023[91] - The construction of TRC-MRC 5 LLC, a 446,400 square foot industrial building, is expected to be completed by winter 2023/2024[92] - The joint venture TRC-MRC 4 LLC refinanced its construction loan in March 2023 with an outstanding balance of $62,400,000[92] - The Company has 100% leased all rentable space in its joint ventures as of March 31, 2023[93] Financial Position - As of March 31, 2023, total assets amounted to $283,204,000, with total debt at $183,736,000, resulting in equity of $27,179,000[96] - The company has a long-term debt balance of $48,092,000 tied to the daily secured overnight financing rate (SOFR) plus a margin of 1.55 percentage points[188] - The company paid $2,363,000 for water contracts and related costs as of March 31, 2023, under contracts extending to 2035[99] - Marketable securities totaled $35,425,000 as of March 31, 2023, with a weighted average interest rate of 3.96%[192] - The company has a fixed interest rate of 4.62% on a term loan of $48,092,000, while another term loan of $1,627,000 has a fixed rate of 4.25%[188] Risk Exposure - Farming inventories are exposed to adverse price fluctuations, with no receivables subject to commodity price fluctuations as there were no pistachio yields in 2022[195] - The company’s investment strategy focuses on preserving principal while maximizing yields, limiting investments to securities with a maturity of less than five years[186] - The company’s total liabilities include long-term debt of $1,627,000 and $48,092,000, with respective weighted average interest rates of 4.25% and 4.62%[192] - The company is the largest landowner and taxpayer within the TCWD, with a water service contract entitling it to all of TCWD's State Water Project entitlement[98] - The company’s exposure to market risk includes interest rates and commodity prices, impacting financial position and cash flows[184]