Tejon Ranch Co · NYSE:TRC
Tejon Ranch — Investor Presentation (March 2018)
23 slides from Tejon Ranch's investor presentation, Mar 12, 2018
Slide 1: Unlocking Value
Unlocking Value March 2018 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in or accompanying this presentation that relate to or are based on plans, projections, expectations, assumptions, future events and results are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “inte
Slide 3: Tejon Ranch at a Glance
Tejon Ranch at a Glance 270,000 acres of contiguous land Large-scale master planned real estate development Commercial/industrial real estate development Mineral resources (oil & gas, minerals, water sales) Farming Ranch operations Diversified real estate development and agribusiness company operati
Slide 4: Investment in a California Legacy
Investment in a California Legacy Track record of success Navigating development process/securing entitlements Unlocking asset value to drive profitable growth and cash flow Uniquely positioned to significantly monetize tens of thousands of acres of raw land in California Ownership of largest contig
Slide 5: Strategically and Geographically Positioned
Strategically and Geographically Positioned
Slide 6: Track Record of Success
Track Record of Success History of successfully navigating California’s complex regulatory landscape ENTITLEMENT PROCESS Create development plan SECURE STATE AND FEDERAL PERMITS Obtain necessary permits to develop land State Department of Fish and Wildlife, Regional Water Quality Control Board and U
Slide 7: Case Study: Development Process
Case Study: Development Process 1997 Public announcement of development 1998 350-acre development approved by Kern County Board of Supervisors 1999 Petro Travel Plaza opens 2001 IKEA Distribution Center opens 1995 2003 1100-acre expansion approved by Kern County Board of Supervisors Approval challen
Slide 8: Case Study: Unlocking Asset Value to Drive Profitable Growth
Case Study: Unlocking Asset Value to Drive Profitable Growth Industrial Land Raw land $1,500/acre * Prices quoted in marketplace and dependent on size of lot and final use. $130,680 - $261,360/acre OR $3.00 - 6.00 per sq. ft.* Commercial/Retail Land $261,360 - $1,176,120/acre OR $6.00 - $27.00 per s
Slide 9: Uniquely Positioned to Significantly Monetize Tens of Thousands of Acres of Raw California Land
Uniquely Positioned to Significantly Monetize Tens of Thousands of Acres of Raw California Land Tejon Ranch is a select location where large-scale development can and will occur Largest contiguous piece of private land in California Extensive development regulations create high barriers to entry, li
Slide 10: Clear Strategic Vision
4.8M sq. ft. already developed Additional 15.4M sq. ft. of commercial/industrial space available for development Tejon Ranch Commerce Center Together expected to include 34,783 residential units and 15.4M sq. ft. of commercial space Mountain Village Centennial Grapevine Clear Strategic Vision Positi
Slide 11: Tejon Ranch Commerce Center Industrial Real Estate Development
15.1M sq. ft. of monetizable industrial space Tejon Ranch Commerce Center Industrial Real Estate Development MAJOR DISTRIBUTION CENTERS
Slide 12: Tejon Ranch Commerce Center Commercial/Retail Real Estate Development
Tejon Ranch Commerce Center Commercial/Retail Real Estate Development 324,000 sq. ft. of monetizable commercial/retail space MAJOR RETAIL OPERATIONS
Slide 13: Solid Growth at Tejon Ranch Commerce Center
Solid Growth at Tejon Ranch Commerce Center 2014 2015 2016 2017* $6.3 M $8.5 M$9.7 M $7.5 M Annual Recurring Revenues * 2017 decline due to reductions in joint venture earnings. Recurring lease and fee revenue increased 8.8% over 2016.
Slide 14: Mountain Village at Tejon Ranch: Resort Real Estate Development
Mountain Village at Tejon Ranch: Resort Real Estate Development Mountain Village: Located in one of the most beautiful parts of Tejon Ranch, about an hour from Los Angeles, designed to embrace area’s natural beauty and act as private escape for city residents Tentative Tract Map approved Covers firs
Slide 15: Centennial at Tejon Ranch: Residential Real Estate Development
Centennial at Tejon Ranch: Residential Real Estate Development 19,333 residential units and 10.1M sq. ft. of commercial space Received Los Angeles County Board of Supervisors approval in 2015, providing land use designations and zoning Specific Plan submitted to Regional Planning Next steps: Plannin
Slide 16: Grapevine at Tejon Ranch: Residential Real Estate Development
Grapevine at Tejon Ranch: Residential Real Estate Development Half hour from Bakersfield; less than hour from Northern LA County, Santa Clarita and Valencia Entitlements approved by Kern County Board of Supervisors in December 2016 12,000 residential units and 5.1M sq. ft. of commercial development
Slide 17: Compelling Macro Trends
Compelling Macro Trends Expected to continue rising, buoyed by diversified California economy Expected to continue rising due to scarcity of entitleable land in California POPULATION GROWTH MEDIAN HOUSING PRICE GROWTH Source: National Association of Realtors; Moody’s Analytics, (values are approxima
Slide 18: Strong Foundation Supported by Diversified Operations
FARMING REVENUE MINERAL RESOURCES REVENUE $16.4 Million in 2017 $5.9 Million in 2017 Strong Foundation Supported by Diversified Operations Steady cash flow generated from diversified operations enables investment in entitlement and development of real estate assets * Other in “Farming Revenue” chart
Slide 19: Operating Segment Revenue
Operating Segment Revenue ($ in thousands) 2015 2016 2017 Real Estate Commercial/Industrial (Including Joint Ventures) $ 14,596 $ 16,536 $ 13,630 Mineral Resources 15,116 14,153 5,983 Farming 23,836 18,648 16,434 Ranch Operations 3,923 3,338 3,837 Investment/Gain on Sale/Other 909 1,659 615 Total Re
Slide 20: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow ($ in thousands) 2015 2016 2017 Cash/Marketable Securities* $ 34,745 $ 27,933 $ 90,975 Total Assets 431,919 439,701 518,199 Long-Term Debt 74,038 73,706 69,820 Stockholders’ Equity 291,634 305,875 398,242 Cash Flow from Operations 16,968 5,585 9,830 Committed to ma
Slide 21: Strong, Experienced Executive Team
Strong, Experienced Executive Team Over 25 years of real estate, land acquisition, development & financing experience Since joining Tejon in 2013, has led as COO and now as CEO Successful master planned community developer Formerly led Newland Communities’ western region Allen Lyda Executive VP, CFO
Slide 22: Investment in a California Legacy
Investment in a California Legacy Track record of success Navigating development process/securing entitlements Unlocking asset value to drive profitable growth and cash flow Uniquely positioned to significantly monetize tens of thousands of acres of raw land in California Ownership of largest contig
Slide 23: Thank You
Thank You Barry Zoeller VP of Corporate Communications & Investor Relations bzoeller@tejonranch.com (661) 663-4212 www.TejonRanch.com/InvestorRelations Assets, strategy and team to drive meaningful long-term shareholder value