Tejon Ranch Co. Announces Second Quarter 2024 Financial Results

Core Insights - Tejon Ranch Co. reported financial results for the second quarter and first half of 2024, highlighting strategic efforts to unlock land value and diversify cash flow streams [1][4]. Financial Performance - For Q2 2024, the company achieved a net income of $1.0 million, or $0.04 per share, compared to $0.3 million, or $0.01 per share in Q2 2023, driven by tax benefits and improved joint venture earnings [4][6]. - Year-to-date net income for the first six months of 2024 was $43,000, a decrease from $2.0 million in the same period of 2023, with total revenues declining to $18.6 million from $23.2 million [6][4]. - Adjusted EBITDA for Q2 2024 was $5.1 million, up from $4.5 million in Q2 2023, reflecting improved operational performance [4][18]. Real Estate Development - The Terra Vista at Tejon multi-family apartment project is progressing, with 495 units planned and the first units expected to be available in Q2 2025 [2][3]. - The Tejon Ranch Commerce Center (TRCC) industrial portfolio is fully leased, comprising 2.8 million square feet of gross leasable area, while the commercial portfolio is 95% leased [3][4]. Mineral Resources and Farming - Revenues from the mineral resources segment decreased by 47% to $4.5 million in the first half of 2024, primarily due to reduced water sales from heavy rainfall in California [6][4]. - The farming segment also saw a 54% revenue decline to $1.0 million, attributed to lower almond sales and reduced farming operations [6][4]. Liquidity and Capital Resources - As of June 30, 2024, the company had total liquidity of $154.2 million, with a market capitalization of approximately $622.5 million and a debt-to-total market capitalization ratio of 27% [7][22]. - The company reported a total debt of $165.2 million, with a net debt to trailing twelve months adjusted EBITDA ratio of 6.5x [7][22]. Future Outlook - The company plans to continue its focus on commercial and industrial development, as well as residential projects, to meet regional housing needs and support economic growth [8][9].