Tejon Ranch Co. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets increased to $598.0 million from $577.5 million at the end of 2023. However, total current assets decreased to $55.6 million, down from $79.8 million, with cash and cash equivalents also declining to $27.4 million from $31.9 million. Real estate development assets rose to $374.3 million, reflecting ongoing investments in this segment. Total liabilities increased to $114.4 million from $94.4 million, while stockholders’ equity saw a slight rise to $468.3 million from $467.7 million.

For the three months ended September 30, 2024, Tejon Ranch reported total revenues of $10.9 million, up from $10.2 million in the same period of 2023. However, for the nine-month period, revenues fell to $24.0 million from $28.6 million in the prior year. Total expenses for the third quarter surged to $14.6 million, compared to $10.2 million in 2023, leading to an operating loss of $(3.8) million, a stark contrast to the operating income of $37,000 reported in the same quarter of the previous year. The net loss for Q3 2024 was $(1.8) million, compared to a net loss of $(347,000) in Q3 2023.

The farming segment faced challenges, with revenues for the nine months down 12% to $4.2 million, primarily due to a decrease in wine grape sales. The segment's expenses increased significantly, leading to an operating loss of $(5.2) million for the nine-month period, compared to a loss of $(792,000) in 2023. Conversely, the commercial/industrial real estate development segment saw revenues rise to $6.3 million for Q3 2024, up from $4.6 million in 2023, driven by improved performance in joint ventures.

Strategically, Tejon Ranch has been active in its development projects, including the ongoing construction of the Terra Vista multi-family community and various infrastructure improvements at its TRCC site. The company also entered into a $160 million revolving credit facility to support its operations and development initiatives. As of September 30, 2024, the outstanding balance on this line of credit was $59.9 million, with an effective interest rate of 7.45%.

Overall, while Tejon Ranch Co. experienced growth in certain revenue segments, it faced significant challenges in profitability, particularly within its farming operations, which impacted overall financial performance for the nine-month period.