Tejon Ranch to continue to invest in residential projects

The company said, “The Company will continue to opportunistically pursue commercial/industrial development, multi-family development, leasing, sales, and investment within TRCC and its joint ventures. The Company also will continue to invest in its residential projects, including Mountain Village at Tejon Ranch (TRC), Centennial at Tejon Ranch and Grapevine at Tejon Ranch. California is one of the most highly regulated states in which to engage in real estate development and, as such, natural delays, including those resulting from litigation, can be reasonably anticipated. Accordingly, throughout the next few years, the Company expects net income to fluctuate year-to-year based on the above-mentioned activity, along with commodity prices, production within its farming and mineral resources segments, and the timing of land sales and leasing of land within its commercial developments. Water sales opportunities each year are impacted by the total precipitation and snowpack runoff in Northern California from winter storms along with State Water Project, or SWP, allocations. The current SWP allocation is at 35% of contract amounts as of February 25, 2025. Although the allocation may increase, the Company is optimistic for a year-over-year increase in water sales opportunities in 2025. The Company expects its 2025 farming operations to continue to be impacted by higher costs of production, such as fuel costs, fertilizer costs, pest control costs, and labor costs. The almond industry currently projects 2024 yields to be about 2.6 billion pounds, down from the previous report of over 3.0 billion pounds. The Company expects this estimate, along with a lower inventory carry forward, will help improve pricing. Additionally in 2025, the Company’s crop segmentation in its farming division will include the planting of an olive orchard, diversifying the Company’s commodity products and best positioning the Company for market changes.”