Maui Land & Pineapple Company, Inc. (NYSE: MLP) has reported its financial results for the six-month period ending June 30, 2024. The company's operating revenue increased by 7.5% to $5,128,000 compared to the same period in 2023. This growth was driven by increases in real estate, leasing, and resort amenities.
The strategic investments made to reposition the company's commercial centers in the aftermath of the August 2023 Maui wildfires have led to a significant 24% increase in the occupancy of its commercial real estate. These investments, coupled with recent land sales of non-strategic parcels and operational improvements in resort amenities, have resulted in the 7.5% growth in overall operating revenue.
In the real estate segment, land sales revenue saw a substantial increase of $181,000 in the six months ended June 30, 2024, compared to $19,000 in 2023. This was driven by the first non-strategic parcel sale of an easement in West Maui, with additional non-strategic parcels currently being marketed for sale to generate additional cash flow.
Moreover, leasing revenues increased by $70,000 to $4,388,000 for the six months ended June 30, 2024, indicating a recovery in percentage rents and associated tenant sales following the wildfires. This increase in leasing revenues reflects a 24% increase in commercial property occupancy and ongoing cash expenditure on tenant improvements.
The company's resort amenities, including the Kapalua Club, saw a revenue increase of $107,000 over the same period last year, attributed to operational improvements and the acceptance of new Kapalua Club memberships.
However, despite the positive revenue growth, Maui Land & Pineapple Company reported an increased net loss of $3,247,000, or $0.16 per diluted common share, in the six months ended June 30, 2024, compared to a net loss of $2,481,000 or $0.13 per diluted common share in the six months ended June 30, 2023. This increase in net loss was primarily driven by non-cash expenses related to share-based compensation and severance payments to the former CEO.
The company also reported adjusted EBITDA (non-GAAP) of ($251,000) for the six months ended June 30, 2024, after adjusting for net non-cash expenses totaling $2,996,000. The decrease in cash and investments convertible to cash (non-GAAP) to $6,960,000 on June 30, 2024, reflects the strategic investment in the company’s commercial properties and land improvements to support asset productivity.
In an effort to reinvigorate its commercial centers in West Maui and Hali‘imaile, the company has pursued new opportunities to optimize existing tenancy and execute new leases for available commercial space.
Additionally, Maui Land & Pineapple Company has added two senior leaders to the team to advance efforts in maximizing the productive use of the company’s assets. Mark Matsuda, a veteran civil engineer, has been appointed as the director of engineering, and Kainoa Casco, a local leader from Lahaina, has been appointed as the vice president of land productivity & asset management.
The company also emphasized that certain non-GAAP financial measures, including adjusted EBITDA and cash and investments convertible to cash, have been presented to assist investors in understanding its financial results and assessing its prospects for future performance. These non-GAAP financial measures are not intended to represent more meaningful measures than, or alternatives to, measures of operating performance or liquidity as determined in accordance with GAAP.
For more information about Maui Land & Pineapple Company’s fiscal year 2023 operating results, the company has directed stakeholders to refer to the form 10-K filed with the Securities and Exchange Commission on March 28, 2024, and posted at mauiland.com.
Maui Land & Pineapple Company, Inc. envisions a future where people can thrive in resilient communities with sufficient housing supply, economic stability, food and water security, and deep connections between people and place. The company continues to build a legacy of authentic innovation through conservation, agriculture, community building, and land management with a mission to thoughtfully maximize the productive use of its assets to meet the current critical needs and those of future generations. Today the company's shares have moved 2.3% to a price of $22.79. For the full picture, make sure to review Maui Land & Pineapple's 8-K report.
