Tejon Ranch Co. has recently released its 10-K report, detailing its operations as a diversified real estate development and agribusiness company. The company operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. Tejon Ranch's primary asset is approximately 270,000 acres of largely undeveloped land located 60 miles north of Los Angeles and 15 miles east of Bakersfield.
In 2024, Tejon Ranch reported a net income attributable to common stockholders of $2,690,000, down from $3,265,000 in 2023. The decrease was primarily driven by a reduction in mineral resources segment operating income and a decrease in farming segment operating income due to the lack of pistachio crop yield. However, these decreases were partially offset by improved equity in earnings of unconsolidated joint ventures.
Looking ahead, Tejon Ranch plans to invest funds towards vertical development within its active commercial and industrial development, including construction on Terra Vista at Tejon, a new multi-family apartment community located adjacent to the Outlets at Tejon at TRCC. The company also intends to invest funds in litigation defense, permits, and maps for master plan mixed-use developments and for master project infrastructure.
Tejon Ranch's critical accounting estimates include the evaluation of real estate development projects for impairment and the allocation of costs related to land sales and leases. The company believes these estimates are critical as they are susceptible to change from period to period and could have a material impact on its financial statements.
In 2024, the Commercial/Industrial Real Estate Development segment generated revenues of $12,552,000, representing a 7% increase from 2023. The primary driver of this increase was a rise in communication lease revenue, partially offset by a decrease in land sales. The segment reported an operating income of $4,642,000 for 2024.
Tejon Ranch's 10-K report provides a detailed insight into its financial performance and strategic outlook, showcasing the company's efforts to create value for shareholders while responsibly utilizing its land and resources to meet the needs of Californians. The market has reacted to these announcements by moving the company's shares 3.3% to a price of $15.83. If you want to know more, read the company's complete 10-K report here.
