TRC

CEO's Vision and Strategy: Matthew Walker, the CEO of Tejon Ranch Co., outlines his commitment to improving shareholder value through disciplined capital allocation, focusing on income-generating assets, and addressing past missteps in capital deployment.

Tejon Ranch's Unique Position: The company controls 270,000 acres strategically located between the Central Valley and Los Angeles, capitalizing on economic activity and addressing California's housing crisis with plans for 35,000 homes through master planned communities.

Investment Priorities and Performance Metrics: Tejon Ranch will prioritize investments that meet specific hurdle rates for returns, emphasizing cash flow generation and using joint ventures for capital-intensive projects to avoid shareholder dilution.

Commitment to Governance and Transparency: The company aims to enhance governance practices, improve communication with shareholders, and foster a cohesive corporate culture, with specific milestones set for the next 18 months to track progress and accountability.

Financial Performance: Tejon Ranch Co. reported a net income of $1.7 million for Q3 2025, a significant improvement from a net loss of $1.8 million in Q3 2024, with revenues remaining stable at $14.7 million year-over-year.

Operational Highlights: The company's farming segment saw a 34% increase in revenues to $4.3 million, while its industrial portfolio is fully leased, and the residential community Terra Vista is progressing well with 55% of units leased.

Cost Management: Tejon Ranch implemented a 20% workforce reduction, expected to save $2 million annually, as part of a strategy to streamline operations and enhance cash flow.

Future Outlook: The company anticipates fluctuations in net income due to various factors, including land sales timing and commodity prices, while remaining focused on long-term growth through strategic investments in real estate and agribusiness.