Tejon Ranch Co. (NYSE: TRC), a diversified real estate development and agribusiness company, today reported its financial results for the three and six months ended June 30, 2025. Despite a GAAP net loss in the second quarter, the Company demonstrated encouraging signs of growth across key segments, driven by strategic execution, robust leasing activity, and strong farming performance.
Leadership Commentary Reflects Confidence in Long-Term Strategy
“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 of Tejon Ranch Co. “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.”
Chief Financial Officer Robert D. Velasquez added, “Our second quarter results were impacted by non-recurring expenses and the timing of revenues in our farming and real estate – commercial/industrial segments. That said, we are encouraged by the strong response to our first multifamily offering and the continued high occupancy rates across our industrial and retail portfolios. We remain committed to disciplined expense management and are executing targeted initiatives to drive operational efficiency and enhance free cash flow over time.”
The Company also announced that it will host its first Investor Day since 2018 on November 14, 2025, at the New York Stock Exchange, with further details to be announced. A video update from CEO Matthew Walker is also available at
Commercial and Industrial Real Estate: Continued Strength in Leasing and Development
As of June 30, 2025, Tejon Ranch’s commercial and industrial real estate portfolio—primarily located at the Tejon Ranch Commerce Center (TRCC)—remained strong across several metrics:
- The industrial portfolio, managed through joint ventures, consists of 2.8 million square feet of gross leasable area (GLA), and remains 100% leased.
- The commercial/retail portfolio, both wholly owned and through joint ventures, totals 620,907 square feet and is 95% occupied.
- The broader TRCC comprises a total of 7.1 million square feet of GLA.
The Outlets at Tejon, a key retail component within TRCC, sustained high performance, with 91% occupancy at quarter-end.
Another major milestone during the quarter was the May 2025 debut of Terra Vista at Tejon, the Company’s first foray into multifamily housing. Phase 1 of the development includes 228 of a planned 495 residential units. Leasing demand has been strong, with 49% of the 84 delivered units leased by June 30.
Additionally, Nestlé USA is nearing completion of a cutting-edge 700,000+ square-foot distribution facility on the east side of TRCC. This facility, part of Nestlé’s strategic distribution footprint, underscores the long-term appeal of Tejon’s industrial assets.\
Second Quarter 2025 Financial Results: Non-Recurring Proxy Costs Impact GAAP Earnings
For the second quarter ended June 30, 2025:
- GAAP net loss attributable to common stockholders was $1.7 million, or $0.06 per share, compared to net income of $1.0 million, or $0.04 per share, in the prior-year quarter.
- The year-over-year decline of $2.7 million was primarily due to $2.3 million in consulting and legal fees related to a contested board election and proxy defense, which management described as a non-recurring event.
- Revenues and other income, including equity in earnings of unconsolidated joint ventures, totaled $11.1 million, up from $9.0 million in Q2 2024.
- The real estate commercial/industrial segment contributed significantly to the revenue increase with a $2.6 million boost, due to land sale revenue recognized upon completion of a performance obligation from a 2022 transaction.
- This was partially offset by a $0.5 million decline in the mineral resources segment, primarily due to reduced water sales stemming from increased rainfall.
- Adjusted EBITDA, a non-GAAP measure used by management to assess operating performance and cash flow, increased to $5.7 million, from $5.1 million in the year-ago quarter.
Year-to-Date 2025 Financial Highlights: Diversified Revenue Drivers Offset Strategic Costs
For the six months ended June 30, 2025:
- Net loss attributable to common stockholders was $3.2 million, or $0.12 per share, versus a modest net income of $43,000 in the same period in 2024.
- The decline was driven by over $3.0 million in expenses incurred during the contested proxy process in the first half of 2025.
- Total revenues and other income reached $20.7 million, compared to $18.6 million in the prior-year period.
Segment Highlights:
- The real estate commercial/industrial segment reported revenue of $7.9 million, a 43% increase from $5.5 million in the first half of 2024, again driven by the same land sale revenue recognition.
- The farming segment saw strong growth, with revenue rising to $2.2 million, more than double the $1.0 million recorded in H1 2024. This was largely attributed to increased almond sales, with 727,000 pounds sold in 2025, compared to 381,000 pounds in 2024.
These gains were partially offset by a $0.6 million reduction in equity in earnings from unconsolidated joint ventures, which totaled $3.7 million, compared to $4.3 million a year earlier. The decline was primarily due to lower earnings from the TA/Petro joint venture, which saw nonfuel gross margins fall by 7.6% and operating expenses rise by 10.9%.
Other income declined by $682,000, mainly due to reduced returns on marketable securities, reflecting a lower investment base.
- Adjusted EBITDA for the six-month period rose to $8.6 million, compared to $7.3 million in the first half of 2024.
Balance Sheet and Liquidity: Solid Capital Structure and Ample Resources
As of June 30, 2025, Tejon Ranch Co. reported:
- Total capitalization (including pro rata share of joint venture debt) of $648.4 million, consisting of:
- $455.9 million in equity market capitalization, and
- $192.5 million in total debt.
- The Company maintained a debt-to-total capitalization ratio of 29.7%.
- Total liquidity stood at $98.1 million, including:
- $20.1 million in cash and securities,
- $78.1 million in available credit.
The net debt to trailing twelve-month adjusted EBITDA ratio was 6.5x, based on non-GAAP metrics and including the Company’s share of joint venture cash and debt positions.
