Tejon Ranch Co · NYSE:TRC
Tejon Ranch — 2025 Oppenheimer Industrial Growth Conference
37 slides from Tejon Ranch's conference presentation, May 6, 2025
Slide 1: 2025 Oppenheimer Industrial Growth Conference
2025 Oppenheimer Industrial Growth Conference Turning Legacy Into Lasting Value Matthew Walker, President & CEO MAY 6, 2025
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: CEO Introduction: Bringing Experience & Ingenuity For The Next Phase of TRC Growth
CEO Introduction: Bringing Experience & Ingenuity For The Next Phase of TRC Growth Lowe is a private real estate company, with 53 years of real estate investment, development and management experience. The company creates commercial properties, hotel properties, multifamily properties, and retail pr
Slide 4: Tejon Ranch: A Unique California Land Asset
Tejon Ranch: A Unique California Land Asset • One Ranch, One Company: Tejon Ranch Company is a unique public company • We own one asset, the ranch: At 270,000 acres, we are California’s largest privately held contiguous land holding • One singular mission: Maximize the value of our land for long- te
Slide 5: Vision: Nexus Of Growth
Vision: Nexus Of Growth SAN JOAQUIN VALLEY Secular changes in demographics, housing Bakersfield and industrial support Tejon’s business strategy SIERRA NEVADA MOUNTAINS 90 Miles • Regional Demographic Migration Supports Demand: Los Angeles County and its population of ~10mm migrates North, the last
Slide 6: An Ecosystem Built for Economic Growth
An Ecosystem Built for Economic Growth Tejon Ranch’s business units are vitally interconnected, generating near-term returns that create long-term value. Commercial / Resort / • Farming operations support long-term water contracts that Industrial Residential contribute to the water supply critical f
Slide 7: Tejon Ranch Commerce Center – Harvesting Value
Tejon Ranch Commerce Center – Harvesting Value 10 years of securing entitlements at TRCC have produced $110 million of cumulative cash flows to date 1 Retail/Outlets 2 Industrial 3 Residential 674,000 sf of commercial retail 7mm sf of industrial built to Terra Vista will include up to 495 built, wit
Slide 8: Tejon Ranch's Value Creation Strategy
Tejon Ranch’s Value Creation Strategy Maximizing Land Value. Monetizing Potential. Illustrative Land Value Creation • Scale Commercial and Industrial Cash $30,000 - $1,200,000 / acre Flow at TRCC with development that +5 – 10x meets the market $1,500 - $10,000 / acre • Monetize Legacy Land Uses and
Slide 9: Unlocking the Upside: TRC is an Undervalued Opportunity
Unlocking the Upside: TRC is an Undervalued Opportunity Illustrative Impact of TRCC to Net Asset Value (NAV) / Share(1) $20.11 High end of range Market Value +132.1x Captured Entirely Low end of range $14.65 at TRCC +96.3x $0.15 2000 2024 Commercial/retail land ($6.00 - $27.00 per sq. ft.*) ~$260,00
Slide 10: Q&A
Q&A 10
Slide 11: Appendix
APPENDIX Executive Compensation 11
Slide 12: Working Land Divisions
WORKING LAND DIVISIONS Executive Compensation 12
Slide 13: Farming
Farming In the San Joaquin Valley, TRC farms permanent crops, including wine grapes, almonds, pistachios and olives. TRC periodically leases land used for vegetable growing, which can also be used for the development of permanent crops, such as almonds. Wine grapes - 1,036 total acres Almonds - 2,11
Slide 14: Mineral Resources
Mineral Resources TRC’s mineral resource segment consists of oil and gas royalties, Oil/gas rock and aggregate royalties, royalties from a cement operation leased to the National Cement Company of California, Inc., and • 12,015 acres currently under lease the management of water assets and water inf
Slide 15: Ranch Operations
Ranch Operations Ranch Operations include grazing lease and game management revenues, land maintenance activities as well as ancillary land uses such as filming Approximately 256k acres are being used for two grazing leases. These lease together are ~45% of revenues for the segment. Game management
Slide 16: Tejon Ranch Commerce Center
TEJON RANCH COMMERCE CENTER TEJON RANCH COMMERCE CENTER
Slide 17: From Pioneering Opportunity to Institutional Real Estate
From Pioneering Opportunity to Institutional Real Estate • Lengthy entitlement processes and CEQA litigation defense (1997- TRCC: Industrial Land Value Over Time 2007) have paved the way for future growth ($ per sq.ft.) $10 $9.00/SF − Travel Plaza: 2 Years $9 $8 − TRCC-West: 3 Years $7 − TRCC East:
Slide 18: TRCC – Building Stable Long Term Recurring Cash Flow
TRCC – Building Stable Long Term Recurring Cash Flow • Cash flows reflect “hockey stick effect” as investments in TRCC Cumulative Cash Flows(2) (commercial/industrial) start-up period transition to recurring cash flow ($ in mm) $120 • Standalone NAV of TRCC of ~$14-20/share(1) exceeds $100 company m
Slide 19: Master Planned Communities
“MASTER PLANNED - COMMUNITIES } ae,
Slide 20: Tejon Ranch is a Master Planned Community Developer
Tejon Ranch is a Master Planned Community Developer • Master Planned Community development is the large-scale planning, zoning and building of an entire community Irvine Ranch – Creation of a mixed-use project that integrates housing, amenities, and commercial space Master Planned Community in South
Slide 21: Replicating The Success of TRCC in Other MPCs
Replicating The Success of TRCC in Other MPCs Following the success of TRCC, we are in the process of developing our other three MPCs, which will be activated in the coming years Entitlement State + Federal permits Tract/final maps Construction Operations • Create a development • Obtain necessary pe
Slide 22: We Have Made Significant Progress to Entitle the MPCs
We Have Made Significant Progress to Entitle the MPCs The entitlement process and successful defense against CEQA litigation in California takes time, but we have made substantial progress on activating each of the MPCs TRCC (10 Years to Entitle) Mountain Village (14 Years to Entitle) Grapevine (10
Slide 23: As a Land Developer, We Create Value Over Time through Entitlement and Approval Processes
As a Land Developer, We Create Value Over Time through Entitlement and Approval Processes A Raw Land E Construction Entitlement/ B F Groundbreaking Litigation Defense C State & Federal Permits G Homesite Closings D Tract/Final Maps H Home Closings Up Front Investments Lead to Cash Flows in Later Yea
Slide 24: Land Development Process: Adding Value To Land
Land Development Process: Adding Value To Land Finished Home Retail Home Sale Price Profit Margin Purchase Custom Lot Sale to Homebuilding A Buyer Costs Custom Lot B Sale Price Additional Profit Homebuilder Margin Finished Pad Purchases Sale Price Profit Margin 5-10x or more Step-up in Value MPC Inf
Slide 25: Value Creation Through Successful Entitlements
Value Creation Through Successful Entitlements Resources, strategy and expertise in obtaining approvals to transform raw land into a monetizable real estate asset to drive shareholder value Commercial/retail land ~$260,000 - ~$1.2mm/acre $6.00 - $27.00 per sq. ft.* Industrial land ~$390,000/acre $9.
Slide 26: Mountain Village
Residential real estate development Mountain Village Kern County • Location: 70 miles north of Los Angeles off Interstate 5 • Entitlements: 3,450 residential units, 750 hotel keys (guestrooms), 160k sq.ft. of commercial space − Prevailed in state California Environmental Quality Act (CEQA) and feder
Slide 27: Grapevine
Residential real estate development Grapevine Kern County • Location: 30 miles south of Bakersfield • Entitlements: 12,000 residential units/5.1 mm sq. ft. of commercial and industrial development − Successfully defended CEQA challenge with respect to approved Specific Plan − Active in advancing fed
Slide 28: Centennial
Residential real estate development Los Angeles County Centennial • Location: 70 miles north of Los Angeles off SR 138 • Program: 19,333 residential units/10.1mm sq.ft. of commercial space • Positioning: Large-scale residential and mixed-use community to help address region’s housing needs, while em
Slide 29: Financials
FINANCIALS
Slide 30: Conservative Balance Sheet with Significant Liquidity
Conservative Balance Sheet with Significant Liquidity TRC maintains a conservative balance sheet with the right capital markets tools that provide liquidity to be opportunistic and flexible • Total capitalization and low leverage. Including pro rata share ($ in millions) 2024 2023 2022 2021 (“PRS”)
Slide 31: Disciplined Approach to Spending, With a Shift Towards Cash Generating Assets
Disciplined Approach to Spending, With a Shift Towards Cash Generating Assets • Disciplined approach to investments: A portion of investments are nondiscretionary (e.g. taxes), whereas others are discretionary and increase the value of our landholdings • MPC Discretionary Spending has Dropped: Discr
Slide 32: Operating Segment Revenue
Operating Segment Revenue Revenues ($ in millions) : 2024 2023 2022 Real estate - commercial/ industrial $23.4 $18.6 $48.3 (Incl Joint Ventures) Mineral resources $10.2 $14.5 $216 Farming $13.9 $14.0 $13.0 Ranch operations $5.2 $4.5 $4.1 Investment/ Gain $2.3 $2.6 $0.6 Total Revenues $55.0 $54.2 $87
Slide 33: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow Committed to maintaining financial flexibility ($ in millions) 2024 2023 2022 Cash and Marketable Securities $53.7 $64.5 $72.6 Total Assets 608.0 577.5 566.8 Total Debt 66.9 47.9 49.9 Shareholders' Equity 473.6 467.7 462.2 Operating Cash Flow 14.3 13.7 8.5 Data sou
Slide 34: Reconciliations and Additional Information
RECONCILIATIONS AND ADDITIONAL INFORMATION
Slide 35: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation ($ in thousands) 2024 2023 2022 2021 Net income $2,688 $3,265 $15,810 $5,342 Net Income (loss) attributed to non-controlling interest (2) -- 2 (6) Interest, net Consolidated, interest income (2,273) (2,557) (634) (57) Our share of interest expense from unconso
Slide 36: Non-GAAP Net Debt / Adjusted EBITDA Reconciliation
Non-GAAP Net Debt / Adjusted EBITDA Reconciliation GAAP Reconciliations Non-GAAP Reconciliations As of December 31, 2024 ($ in millions) 2024 As of December 31, 2024 ($ in millions) 2024 Net Debt (GAAP) Debt TRC Debt $66.94 Pro Rata Share of JV Debt $111.91 Less: TRC Cash and Marketable Securities (
Slide 37: Additional Information and Where to Find It
Additional Information and Where to Find It Tejon has filed a definitive proxy statement on Schedule 14A and WHITE proxy card with the SEC in connection with its solicitation of proxies for its 2025 Annual Meeting of Shareholders. SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AME
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