Tejon Ranch Co.

Revenue increased across all segments, led by a $6.9 million contribution from the Dedeaux Properties 1B land sale. Net income attributable to common stockholders was $2.6 million, or $0.10 per share, versus a loss of $1.7 million a year ago, and adjusted EBITDA was up approximately 47% year over year. The company recognized $6.9 million of revenue and $2 million of profit on the land contribution, with $3 million of profit deferred. On the balance sheet, Tejon ended the quarter with approximately $79 million of liquidity and a debt-to-capital ratio of 16.3%. For forward commentary, management said the Dedeaux JV’s 510,000-square-foot Class A industrial building is under way, walls are being tilted up this week, and the project is targeting early 2027 delivery. Centennial is being reworked through the county process, with management aiming to get it back before the Planning Commission and Board of Supervisors before year-end, though no construction start date was given.

Matthew Walker framed the quarter as a step in a broader strategy to monetize land, improve recurring earnings, and use capital more efficiently. He highlighted the Dedeaux JV as proof of the company’s land monetization model, said AI is already improving efficiency across the business, and emphasized that water assets should be more actively monetized rather than remain dormant. His tone was candid and urgent when discussing the stock price and shareholder value, but he repeatedly said he is committed to a rational, facts-based process and is optimistic about the company’s future.

Robert Velasquez emphasized earnings quality and cost control, noting that the company recognized $6.9 million of revenue and $2 million of profit from the Dedeaux land contribution, with the remaining $3 million deferred because it relates to the retained JV interest. He said joint venture equity earnings rose 21% to $3.1 million, helped by TA/Petro, the outlets, and the industrial portfolio, and that Terra Vista leasing crossed 80% this month. He also highlighted cost discipline, with expenses down nearly 18% year to date excluding land and water costs, and said the balance sheet ended with approximately $79 million of liquidity, a 16.3% debt-to-capital ratio, and trailing 12-month adjusted EBITDA of $29.8 million, up 21%.

Analysts and investors pressed management on the weak stock price, shareholder dilution, ongoing losses without land sales, the value of the ranch/farm assets, and whether a strategic review or separation of assets should be pursued. Walker acknowledged the stock performance is “painful” and said it is not acceptable, but argued the company has improved results for two consecutive quarters, reduced headcount and board size, and is increasing shareholder alignment through compensation changes and more disclosure. On Centennial, he said the project is moving through environmental recertification and re-entitlement, with hearings targeted before year-end, but a construction start date is too uncertain to estimate. On the Dedeaux JV, he said the 60% ownership structure was attractive because it increased economic interest without additional net cash investment.