Tejon Ranch to aggressively pursue commercial/industrial development

The company said, “The Company will continue to aggressively pursue commercial/industrial development, multi-family development, leasing, sales, and investment within TRCC and its joint ventures. The Company also will continue to invest in its residential projects, including Mountain Village at Tejon Ranch, Centennial at Tejon Ranch and Grapevine at Tejon Ranch. 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, as well as State Water Project, or SWP, allocations. The current SWP allocation is at 100% of contract amounts, so the Company anticipates that demand for its water over the remainder of the year will be lower than in previous years when the SWP allocation was significantly less. The Company’s farming operations in 2023 continue to be impacted by higher costs of production such as fuel costs, fertilizer costs, pest control costs, and labor costs. Higher than historically normal almond inventory levels from prior years are anticipated to have an adverse effect on selling prices for the remainder of 2023. The current subjective production estimate for the 2023 California almond crop is 2.6 billion pounds which is consistent with 2022.”