Tejon Ranch Co · NYSE:TRC
Tejon Ranch — Investor Presentation (October 2018)
39 slides from Tejon Ranch's investor presentation, Oct 4, 2018
Slide 1: Tejon Ranch History
Exhibit 99.1 TEJON RANCH HISTORYExhibit 99.1 TEJON RANCH HISTORY
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 Diversified real estate development and agribusiness company operating in five business segments Large-scale master planned residential real estate development Commercial/industrial real estate development Mineral resources (oil & gas, minerals, water sales) Farming Ranch ope
Slide 4: Tejon Ranch History: Mexican Land Grants
Tejon Ranch History Landholding consisting of four Mexican land grants, dating back to November 13, 1843 Rancho El Tejon Rancho La Liebre Rancho De Castac Rancho Los Alamos Y Agua Caliente 4Tejon Ranch History Landholding consisting of four Mexican land grants, dating back to November 13, 1843 Ranch
Slide 5: Tejon Ranch History: Federalized Land Grants
Tejon Ranch History Landholding consisting of four Mexican land grants, dating back to November 13, 1843 After the Treaty at Guadalupe Hidalgo ended the Mexican American War, the land grants were federalized and recognized as US territory 5Tejon Ranch History Landholding consisting of four Mexican l
Slide 6: Tejon Ranch History: Edward Fitzgerald Beale
Tejon Ranch History Edward Fitzgerald Beale War hero Dispatch – first to make it to the east coast bringing news of the gold discovery in California Superintendent of Indian Affairs Surveyor General Brigadier General in California Militia Surveyed first transcontinental wagon road Ambassador to Aust
Slide 7: Tejon Ranch History: Fort Tejon
Tejon Ranch History Fort Tejon Founded in 1854 at Beale’s urging Third most-populated area in Southern California at the time Abandoned in 1863 due to the Civil War 7Tejon Ranch History Fort Tejon Founded in 1854 at Beale’s urging Third most-populated area in Southern California at the time Abandone
Slide 8: Tejon Ranch History: Beale's Cut
Tejon Ranch History Beale’s Cut Commissioned to improve the route out of Southern California Cut a pass through the mountains in the northern part of the San Fernando Valley – now Santa Clarita area Responsible for keeping California from being divided into two states – north and south 8Tejon Ranch
Slide 9: Tejon Ranch History: Transition
Tejon Ranch History Transition Beale died in 1893 His son Truxtun Beale served as an absentee owner 9Tejon Ranch History Transition Beale died in 1893 His son Truxtun Beale served as an absentee owner 9
Slide 10: Tejon Ranch History: Transition to Chandler-Sherman syndicate
Tejon Ranch History Transition Tejon Ranch sold in 1912 to Chandler-Sherman syndicate, which totaled 70 members Led by Harry Chandler, publisher of the Los Angeles Times, who owned the largest real estate empire in the US Incorporated as a company in 1936 with 108,000 shares of stock outstanding 10T
Slide 11: Tejon Ranch History: American Stock Exchange 1974
Tejon Ranch History American Stock Exchange – 1974 Oil Agriculture Ranching 11Tejon Ranch History American Stock Exchange – 1974 Oil Agriculture Ranching 11
Slide 12: Tejon Ranch History: New York Stock Exchange 1999
Tejon Ranch History New York Stock Exchange – 1999 Real Estate Oil Agriculture Ranching 12Tejon Ranch History New York Stock Exchange – 1999 Real Estate Oil Agriculture Ranching 12
Slide 13: 1999-Today: Assets, strategy and team to drive long-term value
1999-Today Assets, strategy and team to drive meaningful long-term shareholder value 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
Slide 14: Business Strategy
BUSINESS STRATEGYBUSINESS STRATEGY
Slide 15: Location of Master Planned Developments
Location of Master Planned Developments 15Location of Master Planned Developments 15
Slide 16: Clear Strategic Vision
Clear Strategic Vision Positioned to deliver significant value as a fully integrated real estate development company 5.0 MM sq. ft. already developed Additional 14.4 MM sq. ft. of commercial/ industrial space available for development Tejon Ranch Commerce Center Together expected to include 34,783 r
Slide 17: Tejon Ranch Commerce Center (TRCC)
Tejon Ranch Commerce Center (TRCC) 17Tejon Ranch Commerce Center (TRCC) 17
Slide 18: TRCC Industrial Real Estate Development
Tejon Ranch Commerce Center Industrial Real Estate Development 14.1 MM sq. ft. of monetizable industrial space Major Distribution Centers 18Tejon Ranch Commerce Center Industrial Real Estate Development 14.1 MM sq. ft. of monetizable industrial space Major Distribution Centers 18
Slide 19: TRCC 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 19Tejon Ranch Commerce Center Commercial/Retail Real Estate Development 324,000 sq. ft. of monetizable commercial/retail space Major Retail Operations
Slide 20: Mountain Village at Tejon Ranch
Mountain Village at Tejon Ranch 20Mountain Village at Tejon Ranch 20
Slide 21: Mountain Village: Residential Real Estate Development
Mountain Village at Tejon Ranch Residential Real Estate Development Entitled for 3,450 homes, 750 hotel keys, 160,000 sq. ft. of commercial Tentative tract map & commercial site plan approved Covers first 752 lots (first three phases of development) Phase One of 160K sq. ft. commercial center at ent
Slide 22: Centennial at Tejon Ranch
Centennial at Tejon Ranch 22Centennial at Tejon Ranch 22
Slide 23: Centennial: Residential Real Estate Development
Centennial at Tejon Ranch Residential Real Estate Development Large-scale residential and mixed-use community in LA County that will address region’s housing and local needs, while embracing sustainability and conservation 19,333 residential units Received LA County Planning Next steps: Board of and
Slide 24: Grapevine at Tejon Ranch
Grapevine at Tejon Ranch 24Grapevine at Tejon Ranch 24
Slide 25: Grapevine: Residential Real Estate Development
Grapevine at Tejon Ranch Residential Real Estate Development Located adjacent to TRCC at base of foothills in the San Joaquin Valley, will support and expand economic development activity taking place at TRCC Half hour from Bakersfield; less than hour from Northern LA County, Santa Clarita and Valen
Slide 26: California Development Process Path
California Development Process Path Progress can be impacted by regulatory changes, litigation and market conditions TRCC Grapevine Detailed Maps/Engineering Level Designs for: ü Create Development Plan ü Lot Layouts ü Prepare Environmental Impact Plan ü Grading ü Obtain Project Approval from ü Amen
Slide 27: Case Study Development Process
Case Study Development Process 1998 2003 2005 350-acre 2007 1100-acre expansion Kern County Board of development 1997 5th District Court approved by Kern County 2006 approved by Supervisors certify Public of Appeals affirms Board of Supervisors Judge rules SEIR SEIR and reapprove Kern County announc
Slide 28: Case Study Development Process: Land Value Transformation
Case Study Development Process Resources and strategy to transform raw land into a monetizable real estate asset to drive shareholder value Industrial Land Commercial/Retail Land Post Entitlement Developable Land $261,360 - $1,176,120/acre $130,680 - $261,360/acre OR $6.00 - $27.00 per sq. ft.* OR $
Slide 29: Compelling Macro Trends
Compelling Macro Trends 200% POPULATION GROWTH 171% 160% 120% Expected to continue 85% 84% 80% rising, buoyed by 40% diversified California 61% economy 0% 1980 2015 2035 Kern County 479,000 886,000 1,300,000 LA Basin 11,100,000 17,900,000 20,400.000 Source: US Census Bureau; Moody’s Analytics (value
Slide 30: Uniquely Positioned to Monetize 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 31: Diverse Operations
DIVERSE OPERATIONSDIVERSE OPERATIONS
Slide 32: Strong Foundation Supported by Diversified Operations
Strong Foundation Supported by Diversified Operations Steady cash flow generated from diversified operations enables investment in entitlement and development of real estate assets AGRICULTURE MINERAL RESOURCES 32Strong Foundation Supported by Diversified Operations Steady cash flow generated from d
Slide 33: Farmland by Crop
Farmland by Crop Crop Acres Wine grapes 1,180 Almonds 1,982 Pistachios 1,053 Total 4,215 33Farmland by Crop Crop Acres Wine grapes 1,180 Almonds 1,982 Pistachios 1,053 Total 4,215 33
Slide 34: Mineral Rights Offering: Oil & Gas
Mineral Rights Offering Oil & Gas Total acres available for lease 61,000 Acres currently under lease 8,824 Active wells 310 34Mineral Rights Offering Oil & Gas Total acres available for lease 61,000 Acres currently under lease 8,824 Active wells 310 34
Slide 35: Minerals
Minerals Minerals Acres National Cement 2,438 Aggregate Leases 523 35Minerals Minerals Acres National Cement 2,438 Aggregate Leases 523 35
Slide 36: Water: Overview of Current Water Resources
Water TEJON RANCH COMPANY OVERVIEW OF CURRENT WATER RESOURCES - JUNE 2018 SOURCES OF WATER ACRE FEET STATE WATER PROJECT: WHEELER RIDGE-MARICOPA WATER DISTRICT 15,547 TULARE WATER DISTRICT 1, 451 DUDLEY-RIDGE WATER DISTRICT 1, 993 TEJON-CASTAC WATER DISTRICT 5, 749 TOTAL STATE WATER PROJECT WATER (1
Slide 37: Operating Segment Revenue
Operating Segment Revenue ($ in thousands) 2015 2016 2017 Real Estate $14,596 $16,536 $13,630 Commercial/Industrial (Including Joint Ventures) 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
Slide 38: Investment in a California Legacy
Investment in a California Legacy Assets, strategy and team to drive meaningful long-term shareholder value 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 o
Slide 39: Tejon Ranch
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