Brookfield Property Partners L.P.

Green Plains consolidated revenues for Q3 were $892.8 million, down $62.2 million, or about 6.5%, from the same quarter last year. Net income attributable to Green Plains was $22.3 million, or $0.35 per diluted share, versus a net loss of $73.5 million, or a $1.27 loss per diluted share, a year ago. EBITDA was $52 million versus negative $35.6 million in the prior-year period, consolidated crush was $48.5 million versus negative $20.5 million, and plant utilization was 93.9% versus 90.9% a year ago and 81.5% in Q2. Q3 ag and energy EBITDA was $12.2 million, SG&A was $35.5 million, interest expense was $9.6 million, and the company ended the quarter with $366.2 million in cash, cash equivalents and restricted cash plus about $200 million available on its working capital revolver. For 2023, management said CapEx should be $25 million to $45 million for the remainder of the year. For 2024, Todd Becker said the five MSC facilities plus a partial-year contribution from the Tharaldson JV could contribute $80 million to $120 million of EBITDA, excluding any uplift from 60 Pro, and he also reiterated a base renewable corn oil contribution of $130 million to $160 million depending on veg oil pricing. On capital spending, Jim Stark said normal annual spend has historically been about $60 million to $70 million, and next year capital is expected to be roughly $150 million including one major MSC project. The partnership reported net income of $9.4 million and adjusted EBITDA of $12.7 million, with a quarterly distribution of $0.455 per unit and 0.99x coverage.

Todd Becker framed the quarter as evidence that Green Plains’ transformation is starting to show through, emphasizing better operations, higher protein yields, and stronger margins across the platform. He said the company is moving from recovering from first-half headwinds to building on record rates in Q4 and beyond, with expanded protein, corn oil, and decarbonization opportunities all contributing. His tone was confident and upbeat, but he also acknowledged that permitting, plant aging, and market volatility remain important execution points.

Jim Stark highlighted that Q3 financials improved materially year over year, with revenue of $892.8 million, EBITDA of $52 million, and net income of $22.3 million. He pointed to the balance sheet as a strength, citing $366.2 million in cash, cash equivalents and restricted cash, about $200 million of revolver capacity, no debt maturities until 2026, and roughly two-thirds of debt fixed at an average borrowing cost of about 7.2% in the quarter. He also broke out capital allocation: $29 million of platform CapEx in Q3, including $15 million for Clean Sugar and MSC Protein initiatives, about $8 million for growth initiatives, and about $6 million for maintenance, safety and regulatory capital, with year-end CapEx expected at $25 million to $45 million and normal annual spending typically $60 million to $70 million.

Analysts focused on protein economics, the ramp of 60 Pro, carbon capture timing, 45Z guidance, corn basis, ethanol exports, and how much of the 2024 output Green Plains might lock in. Management said protein economics improved because corn was lower and protein prices were stronger, with 60 Pro already in commercial quantities and a goal of 20% to 30% of the portfolio in 2024; they also said the Tharaldson JV should start commissioning in Q1 2024. On carbon, management said Treasury guidance on 45Z and SAF is still expected by year-end, though it could slip into early 2024, and they expressed confidence in both Summit and the Nebraska CCS project. For corn basis, they said third-quarter basis was unusually elevated versus the five-year average but has normalized significantly, and for exports they said ethanol shipments are running around 100,000 barrels per day with continued demand from Canada, Europe, and some other regions.