Tejon Ranch (NYSE:TRC) executives used the company’s fourth-quarter 2025 earnings call to highlight improved operating performance, continued cost-cutting initiatives, and progress on governance changes, while also addressing investor concerns about returns on invested capital tied up in its long-dated master planned community projects.
Quarterly results and full-year performance
President and CEO Matt Walker said operating income increased versus the fourth quarter of 2024, while net income declined due to what he described as one-time proxy defense costs. Chief Financial Officer Robert Velasquez reported net income attributable to common stockholders of $1.6 million, or $0.06 per diluted share, compared with $4.5 million, or $0.17 per diluted share, in the prior-year quarter.
For the full year, Walker said revenue totaled $49.6 million and adjusted EBITDA was $24.2 million, both improving over 2024. He emphasized that commercial real estate remains the company’s primary economic driver.
Segment highlights: commercial real estate, farming, joint ventures, and minerals
Walker said commercial revenue increased by $1 million for the quarter and $3.5 million for the year, attributing the gains to two land sales: one hotel site and a back-end payment tied to the company’s Nestlé transaction from 2025. Velasquez reported commercial and industrial real estate revenue of $4.2 million for the quarter, compared with $4.1 million in the prior-year period.
Operationally, Velasquez said the industrial portfolio was fully leased and the commercial portfolio was approximately 98% leased. He added that the Outlets at Tejon ended the year at 93% occupancy. Walker also pointed to “encouraging signs” at the outlets, noting that December generated the highest retail sales of any month since the center opened in 2014. He cited the opening of Hard Rock Casino Tejon in November as a factor and said the casino’s impact had been “extremely encouraging,” with expectations for additional benefits in 2026.
In farming, Walker described 2025 as one of the stronger years in recent memory, supported by an “on-bearing year” for pistachios. He said farming revenue rose 20% in the quarter versus the prior year and nearly 26% for the full year, calling it the highest farming revenue in a decade. Velasquez reported fourth-quarter farming revenue of $12.2 million, up from $9.7 million, and said the increase reflected the pistachio cycle and improved performance across other permanent crops. Adjusted farming EBITDA before fixed water obligation increased to $4.4 million from $3.4 million, with modest margin improvement due to operating leverage.
Equity and earnings from unconsolidated joint ventures totaled $2.1 million in the quarter, down from $3.3 million, which Velasquez said reflected lower earnings from the travel center joint venture. Walker said the travel center JV with TA Petro was impacted by reduced car and truck traffic on Interstate 5, contributing to lower fuel sales and margins as well as reduced sales in travel centers and restaurants. He added that the company’s industrial real estate joint ventures performed well.
Mineral resources revenue totaled $2.4 million for the quarter, slightly below $2.5 million in the prior year, which Velasquez attributed to lower oil and natural gas production volumes and pricing.
New multifamily reporting segment and Terra Vista lease-up
Velasquez introduced a new reporting segment for multifamily operations, saying the company determined the activity warranted separate disclosure as leasing momentum built at Terra Vista at Tejon. The company recognized $536,000 of multifamily revenue during the quarter, reflecting leasing activity that began early in 2025. Phase 1 of Terra Vista, consisting of 228 units, was completed during the year and remains in lease-up, according to Velasquez.
Responding to an investor question, Walker said management was pleased with the pace of leasing at Terra Vista and reported the property was 70% leased. He said Greystar was hired to manage the apartments and is leveraging its broader platform to support leasing in the region. Walker said a Phase 2 expansion remains the plan, but timing will depend on capital allocation and prioritization. He also noted efficiencies from the amenity complex already built in Phase 1.
Governance initiatives and ongoing cost reductions
Walker said the board was following through on governance commitments discussed in the prior quarter. He highlighted an announced proposal—filed on a Form 8-K—to give shareholders the right to call special meetings. Under the proposal, shareholders or groups owning at least 25% of outstanding shares could call a special meeting, and Walker said the measure would be up for a vote ahead of the annual meeting in May.
Walker also said the board decided to reduce its size from 10 to nine members, and that two directors would step down by May 2027 if elected this year, which would reduce the board to seven members. In addition, the board voted to eliminate its executive committee.
On expenses, Walker said prior cost-saving measures included a 20% workforce reduction and “millions of dollars” cut from overhead. He added that the company is targeting an additional $1 million of overhead savings by the end of 2027. He characterized 2024 as a year of “setting the table” and said 2026 efforts are focused on activating plans to grow revenue and convert cost savings into earnings growth.
Invested capital concerns, Mountain Village and Centennial, and funding approach
Several shareholder questions focused on the company’s invested capital and the long development timelines at its master planned communities, Mountain Village and Centennial. Walker acknowledged the concerns and said his goal is to move the communities into active implementation to begin producing cash flow and returns, while noting it would take additional years. He said the company expects its master planned communities to generate “significantly more” than $20 million of annual income over time and plans to use third-party joint venture equity as part of its strategy.
Walker said the company has begun a capital raising process for Mountain Village. For Centennial, he said the near-term focus is completing a re-entitlement effort, which he believes can create significant value and preserve the investment made to date. He stated Centennial would soon enter a more public stage and that the company expects to be in front of Los Angeles County later in the year.
Asked about monetization inquiries, Walker said there have been outbound capital raising efforts related to Mountain Village in the past and that the company is currently raising capital for the project. He added that management is willing to speak with parties interested in the company’s business or land, while noting Centennial’s position is affected by the ongoing re-entitlement process.
On Centennial approval, Walker said the company would not prejudge regulatory outcomes but described confidence in advancing the project as “high,” citing a “genuinely strong” relationship with Los Angeles County. He said the pace of any legal process is a key variable and noted the company is preparing a plan intended to address issues previously identified by the court, with the list of open issues narrowing.
Walker also said the company has not disclosed the all-in development costs for Mountain Village or Centennial and would expect to provide that closer to groundbreaking. He said construction would be phased and that the company intends to recycle early cash flow to minimize required equity. In response to a question about a shareholder rights offering, Walker said the company would plan to use third-party joint venture equity “as opposed to a rights offering” to avoid dilution.
Velasquez closed his financial review by outlining liquidity, reporting that as of Dec. 31, 2025, cash and marketable securities were approximately $24.9 million, with about $66.1 million of available capacity on the revolving line of credit, for total liquidity of approximately $91 million. He said the company believes that liquidity provides flexibility to advance development initiatives while maintaining balance sheet discipline.
About Tejon Ranch (NYSE:TRC)
Tejon Ranch Corporation (NYSE: TRC) is one of California’s largest private landowners, with a diversified portfolio spanning agriculture, real estate development and natural resource operations. Headquartered in Lebec, California, the company’s holdings encompass approximately 270,000 acres in Kern and Los Angeles counties. Established in 1937 on the historic Rancho Tejon land grant, Tejon Ranch has leveraged its strategic location along Interstate 5 to build a multifaceted enterprise serving both local and regional markets.
In agriculture, Tejon Ranch grows a variety of row crops and permanent plantings, including almonds, pistachios, table grapes and citrus.
