TRC News & Events

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."

Reports Q2 revenue $8.3M vs. $5.7M last year. "We saw positive momentum this quarter in our adjusted EBITDA and farming revenues, reflecting our focus on disciplined execution and highlighting the strength of our diversified platform," said Matthew H. Walker, President and Chief Executive Officer. "While our GAAP results reflect the costs of the proxy contest, those were one-time events. Our focus remains on the long-term fundamentals and driving incremental earnings growth. At the Tejon Ranch Commerce Center, our core commercial and industrial assets continue to perform well. Terra Vista at Tejon has officially opened and is leasing in line with our targets. We are encouraged by our performance and remain committed to building shareholder value."

Strathmore Capital, a long-term shareholder of Tejon Ranch, issued the following letter urging Tejon's Board of Directors to Enable CEO Matthew Walker to Significantly Reduce G&A and Prioritize Free Cash Flow Production. "Dear Tejon Ranch Board of Directors, Strathmore Capital, a long-term TRC shareholder, commends CEO Matthew Walker's recent decision to appoint an existing employee as interim CFO, a prudent step toward reducing executive overhead at Tejon. This action signals an initial step to fiscal responsibility, which we applaud. However, we believe additional substantial reductions are needed to unlock the full potential of the Company's recurring income streams and deliver meaningful free cash flow to shareholders. Historically, we believe these streams have been eroded by excessive and unnecessary general and administrative (G&A) expenses and capital expenditures on master-planned communities that have, in our view, failed to deliver any returns to shareholders. Our analysis indicates that the majority of Tejon's recurring income is derived from passive investments (royalties, land leases, etc.) and joint venture partnerships. Yet, according to LinkedIn profiles, the Company currently employs five Vice Presidents of Real Estate, including an Executive Vice President who over the last three years has received a total annual average compensation of nearly $1 million. Given the passive nature of these investments, we question the necessity of maintaining more than one Vice President of Real Estate. Additionally, to our knowledge, the Company employs multiple employees in communications and public affairs, when in our view, a single officer would suffice. To achieve a true focus on free cash flow, we urge the Board to empower Mr. Walker to implement wholesale changes in order to significantly reduce corporate waste. This includes reconsidering the composition of the Board itself, which, at ten members, is disproportionately large for a company of this size. Reducing the Board's size would yield additional immediate cost savings. Furthermore, we find the consulting contract awarded to the former CEO, valued at approximately $1 million annually, to be an unnecessary expense that is indicative of the widespread corporate waste at the Company. We acknowledge Mr. Walker's efforts to engage with shareholders, which is a positive step toward rebuilding trust. It is our hope that Mr. Walker can be the right leader to finally deliver the value that shareholders have been waiting decades for. However, in order for this investor mandate to be achieved, we believe Mr. Walker needs to be enabled by the Board to make significant cost reductions that are necessary. Lastly, it is our view that wholesale changes cannot be made while the former CEO remains on the Board. For over four decades, Tejon Ranch has operated with a cost structure that has not prioritized shareholder value, largely due to insufficient investor oversight and accountability. That era must end. Sincerely, Justin Lebo, Strathmore Capital, Inc."

Glenbrook Capital, a long-time shareholder of Tejon Ranch with more than 300,000 shares of Tejon, made the following statement regarding the departure on of CFO Brett Brown. Grover Wickersham, chairman of Glenbrook stated: "There has been no press release or public disclosure other than the statement in a Form 8-K late last Friday that Mr. Brown 'separated from employment.' This raises more questions than answers, leaving us disappointed by the Tisch-led board's apparent continuing disregard for public shareholders. The Form 8-K Friday minimally announced Brett Brown's abrupt departure as Chief Financial Officer and Treasurer, providing no reason or context for the sudden exit of its second most senior executive. Mr. Brown was Tejon's sole senior executive with an SEC compliance background and his contributions to Tejon should not be overlooked. At Glenbrook, we were impressed by Mr. Brown's origination of a very favorable Farm Credit loan on behalf of Tejon, his participation at investor conferences and his improvements to Tejon's financial disclosure, such as better illuminating G & A expenses. The shareholders deserve to know why Mr. Brown 'separated from employment.' Shareholders are left to wonder if there is fire where there is smoke. If Mr. Brown's exit was related to disagreements over Tejon company policies, operations, or accounting practices - such as failing to take an impairment charge for the obscenely mismanaged Centennial project, then shareholders have the right to know. We believe e SEC disclosure requirements provide that such issues be disclosed fully and promptly.Tejon's trademark lack of transparency on such an important development only serves to erode the Company's dwindling supply of shareholder trust. For this reason, we again urge the independent directors to retain independent counsel to advise them on changing course. Tejon's public shareholders control the majority of Tejon's outstanding shares. Transparency is essential to building shareholder trust, especially in light of the calls for increased disclosure during the recent proxy contest. Implementing PFS Trust's shareholder proposal, which we called on the Board to implement in May, would allow Tejon shareholders owning a combined 10% of outstanding shares to call a special meeting of shareholders. That proposal, combined with adequate disclosure around Mr. Brown's departure, would go a long way to salvage what little shareholder trust remains. This underscores the vital importance of Tejon shareholders having the ability to hold the Board and management accountable. We once again call on the independent directors to implement the PFS Trust shareholder proposal, which was overwhelmingly supported by Tejon's public shareholders, and to immediately and transparently disclose further details of Mr. Brown's departure and clearly communicate plans to cover the crucial function that he served."