Financial Data and Key Metrics Changes - For Q3 2025, Tejon Ranch reported net income of $1.7 million, or $0.06 per share, compared to a net loss of $1.8 million, or $0.07 per share, in the same period last year [8] - Total revenues increased by 10% year-over-year to $12 million, while total costs and expenses declined by nearly 5% [8][12] - Adjusted EBITDA for the year-to-date period was $13.9 million, up 7.3% from the same period last year [12] Business Line Data and Key Metrics Changes - Farming operations saw revenues improve by more than 50% year-over-year, with GAAP operating losses reduced by 40% [10] - Real estate, commercial, and industrial revenues increased by 4% to $3.1 million, with operating income rising 7% to $976,000 [9] - Mineral resources produced operating income of $1.1 million on revenues of $3.2 million, stable year-over-year [10] Market Data and Key Metrics Changes - The industrial portfolio at Tejon Ranch Commerce Center remains 100% leased, while the commercial portfolio is 95% leased, and the Outlets at Tejon maintain a 90% occupancy [6] - The TA Petro joint venture remains the highest-performing profit center, generating $1.9 million in the quarter despite reduced traffic impacting sales [7][10] Company Strategy and Development Direction - The company aims to enhance transparency and communication with shareholders, marking the first quarterly earnings call as part of this initiative [4][5] - Tejon Ranch is focused on developing master plan communities, with the Grapevine Master Plan community currently advancing through design [7] - The company is exploring additional residential developments around TRCC, including multifamily housing [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while the quarter showed positive results, there is still significant work to be done to improve operational efficiency and profitability [14] - The company is committed to cost discipline, having recently completed a workforce reduction that will save over $2 million annually [15] - Management believes that the combination of resilient operating assets and growing rental income positions Tejon Ranch well for future growth [13] Other Important Information - Total assets increased to $630 million from $608 million at year-end, with total debt standing at $91.9 million, resulting in a debt-to-total capitalization ratio of approximately 16% [12] - Year-to-date capital investment was $49.9 million, primarily tied to the construction of Terra Vista and infrastructure at TRCC East [12] Q&A Session Summary Question: Should the company sell land and buy back stock? - Management emphasized the goal of creating long-term shareholder value through master plan communities, while remaining open to monetizing land holdings if compelling opportunities arise [16] Question: What is the policy on disclosing detailed cost information? - The company provides information on material cash requirements and estimated costs in SEC filings, but specific capital cost estimates for initial development phases have not yet been disclosed [18][20] Question: Will the company disclose accounting policies for community development? - Accounting for construction costs is done in accordance with GAAP, with costs capitalized while activities are in progress [22] Question: What is the expected absorption level for the first phases of development? - Absorption is considered when proceeding with development, with expectations for a joint venture partner to drive market rate returns [23] Question: Will the sale of land in phase one result in a profit or loss? - Initial phases of development are likely to incur significant upfront infrastructure costs, making it unlikely to include a book profit [24] Question: What is the company's plan for Mountain Village and Centennial? - Management plans to seek joint venture partners for both projects to avoid shareholder dilution and expects a timeline of 18 to 24 months for Mountain Village to start generating revenue [30][31] Question: Why not focus on TRCC instead of MPCs? - Management stated that TRCC remains the focus, with significant capital deployed there over the past five years, and the casino expected to enhance traffic and growth [37] Question: When will shareholders see returns? - Management aims to implement a plan to create shareholder value, including potential dividends or share repurchases in the future [40][41] Question: What is the company's stance on governance and board size? - Management plans to address governance issues in a future meeting, emphasizing a commitment to shareholder value [42] Question: What caused the decrease in equity and earnings from joint ventures? - Reduced traffic on Interstate 5 impacted sales at the TA Petro joint venture, leading to decreased earnings [48]