TRC News & Events

Tejon Ranch Co. announced that its Board of Directors has voted to include a proposal for a vote at the 2026 Annual Meeting that would grant shareholders, or groups of shareholders, owning at least 25% of the Company's outstanding shares the right to call a special meeting of shareholders. This proposed governance change builds on the updates to Board size and structure the Company announced last week. The proposal to afford shareholders the right to call special meetings also follows through on a commitment made by the Board and outlined at the Company's Investor Day held in November of 2025. Additional details regarding the proposal will be included in the Company's 2026 proxy statement, which will be filed with the Securities and Exchange Commission and distributed to the Company's shareholders in advance of the Annual Meeting scheduled for May 13, 2026.

Reports revenue $23.3M vs. $21.6M last year. "Last year we focused on establishing a clear direction for the company and aligning the organization around it," said Matthew Walker, president and CEO of Tejon Ranch Company. "Our strategy is now beginning to gain traction in our operating performance. Our $49.6 million in revenues and $25.3 million in Adjusted EBITDA both improved over last year, reflecting the strength of our underlying businesses and the progress we're making in executing our strategy. While our reported net income this year includes approximately $3.4 million in one-time proxy defense costs, the underlying performance of the business improved, led by stronger profitability in commercial real estate and a significant year-over-year improvement in farming. The broader story is the continued activity across our operating platform, particularly at the Tejon Ranch Commerce Center. In December for example, leveraging the opening of the neighboring Hard Rock Tejon Casino, fuel and food revenue increased at TA Petro Travel Center, and the Outlets at Tejon generated its highest retail sales of any month ever. Those trends are continuing through the first quarter. Our 2025 results included two land transactions at TRCC, the sale of a hotel site and the back-end revenue recognition tied to the Nestle land sale. We are also encouraged by our success beyond TRCC, where farming revenues in 2025, which was an on-bearing year, were the highest in ten years. We continue to set the table for future growth. Over the past year we've simplified our organization, reduced overhead and clarified where and how capital will be deployed. We are not done yet, but we are encouraged with the progress in strengthening our communication, governance and overall alignment with our shareholders. Last year included several non-recurring costs including our activism defense expenses, and adjusting for those our net income would show improvement over 2024. Our responsibility now is to put more of the Ranch to work, converting land into recurring cash flow. A significant step in that process is the advancement of Centennial, our master-planned community in Los Angeles County, which is about to enter a more public phase of its entitlement process addressing the court's identified issues. We recognize that investors will ultimately judge us by our results which means driving long term value through earnings growth and returns on invested capital."

The company said, "The Company remains focused on TRCC as its primary development platform and long-term value driver, pursuing commercial and industrial development, multi-family development, leasing and investment activity, both directly and through joint ventures. The Company may also pursue selective land sales on an opportunistic basis and continues to advance its residential projects, including Mountain Village, Grapevine and Centennial at Tejon Ranch. California remains a highly regulated environment for real estate development and delays, including litigation-related matters, can occur. As a result, the Company expects net income to fluctuate from year to year based on development activity, commodity prices, production within its farming and mineral resources segments, and the timing of land sales and leasing activity. The Company expects its 2026 farming operations to reflect elevated production costs, including fuel, fertilizer, pest control and labor. Winter chill hours to date have been below historical averages, which may affect bloom timing and crop development. The Company's pistachio orchards are expected to be in a down-bearing year consistent with the crop's alternate bearing cycle. Final yields will depend on spring weather conditions, although tighter industry inventories may help support commodity pricing. As part of its crop diversification strategy, the Company planted 150 acres of olives in 2025 and expects to plant an additional 150 acres in 2026."

The company said, "The Company will continue to strategically pursue commercial/industrial development, multi-family development, leasing, sales, and investment activities across TRCC, including its joint ventures developments. The Company will also continue to make measured capital investment to advance its residential projects, Mountain Village at Tejon Ranch, Centennial at Tejon Ranch and Grapevine at Tejon Ranch, through disciplined, strategic investment, with a focus on critical entitlements, planning milestones, and value-enhancing activities. 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 from 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 industrial 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. This year marks the third consecutive year of above average snowpack levels. The current SWP allocation is at 50% of contract amounts, suggesting that water sales opportunities may be limited this year. On July 10, 2025, the U.S. Department of Agriculture released its Objective Forecast for the 2025 California almond crop, projecting total production of 3.0 billion pounds. This represents a 7% increase from the USDA's Subjective Forecast issued on May 12, 2025, and a 10% increase over the 2024 crop of 2.73 billion pounds. We believe this anticipated increase in supply may exert downward pressure on almond pricing throughout the 2025 crop year. While certain regions of California experienced pollination challenges due to significant honeybee colony losses and resulting hive shortages, the Company's operations were not materially impacted during the critical pollination period. Nonetheless, potential yield declines in other growing regions may influence broader market dynamics. Additionally, recently announced U.S. trade measures have heightened the risk of retaliatory tariffs from key export markets, including the European Union, India, and China. These potential trade barriers may negatively affect export demand and further contribute to pricing volatility in the global almond market. While year-to-year results may fluctuate due to external factors, the Company remains focused on long-term value creation. With a strong asset base, disciplined investment approach, and a clear development strategy, we are well-positioned to navigate near-term challenges and advance our strategic priorities."