TEJON RANCH COTRC
TEJON RANCH CO Segments Disclosure
REPORTING SEGMENTS AND RELATED INFORMATION
Identifiable assets by segment include both assets directly identified with those operations and an allocable share of jointly used assets. Corporate assets consist primarily of cash and cash equivalents, marketable securities, deferred income taxes, and land and buildings. Land is valued at cost for acquisitions since 1936. Land acquired in 1936, upon organization of the Company, is stated on the basis carried by the Company’s predecessor.
The Company currently operates six reporting segments: commercial/industrial real estate development, multifamily, resort/residential real estate development, mineral resources, farming, and ranch operations. Beginning in the fourth quarter of 2025, the Company commenced multifamily leasing operations as buildings within the Terra Vista development were completed and placed into service. The final building was delivered in October 2025. Multifamily is presented as a separate reportable segment due to the significance of its operations and the manner in which management evaluates its performance.
The financial results of these segments are reviewed by the chief operating decision maker (“CODM”), who is the Company’s President and Chief Executive Officer, for purposes of evaluating segment performance and allocating resources. The CODM evaluates segment performance primarily based on GAAP operating income (loss) for each segment. Segment operating income (loss) represents revenues less direct segment operating expenses, and excludes investment income, other income (loss), corporate expenses, and income taxes. This measure is used in the Company’s annual budgeting and forecasting process and in monthly reviews of budget-to-actual variances when making decisions regarding the allocation of capital and personnel among segments. The CODM also reviews capital expenditures by segment, which represent cash expenditures for additions to long-lived assets, consistent with the information regularly provided to and reviewed by the CODM for purposes of evaluating resource allocation decisions.
Certain prior-year amounts have been reclassified to conform to the significant expense categories in which the CODM receives the information. Specifically, certain costs previously included within General and administrative expenses have been reclassified to Operating costs within the segment expense presentation, and depreciation expense, which was previously included within Other expense, is now presented separately. These reclassifications had no impact on total operating expenses, operating income, net income, or earnings per share as previously reported.
Information pertaining to operating results of the Company's reporting segments are as follows for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenues | ||||||||||||||||||||
| Real estate—commercial/industrial | $ | 15,006 | $ | 12,552 | $ | 11,758 | ||||||||||||||
| Multifamily | 732 | — | — | |||||||||||||||||
| Mineral resources | 9,636 | 10,214 | 14,524 | |||||||||||||||||
| Farming | 18,738 | 13,925 | 13,950 | |||||||||||||||||
| Ranch operations | 5,479 | 5,195 | 4,507 | |||||||||||||||||
| Segment revenues | $ | 49,591 | $ | 41,886 | $ | 44,739 | ||||||||||||||
| Segment Operating Results | ||||||||||||||||||||
| Real estate—commercial/industrial | $ | 15,366 | $ | 15,523 | $ | 10,573 | ||||||||||||||
| Multifamily | (1,547) | — | — | |||||||||||||||||
| Real estate—resort/residential | (2,277) | (2,615) | (1,528) | |||||||||||||||||
| Mineral resources | 2,829 | 3,162 | 5,839 | |||||||||||||||||
| Farming | (112) | (3,626) | (1,307) | |||||||||||||||||
| Ranch operations | 218 | 331 | (536) | |||||||||||||||||
Segment operating results 1 | 14,477 | 12,775 | 13,041 | |||||||||||||||||
| Reconciling items: | ||||||||||||||||||||
| Investment income | 914 | 2,273 | 2,557 | |||||||||||||||||
| Other loss | (164) | (292) | (138) | |||||||||||||||||
| Corporate expenses | (14,068) | (11,092) | (9,872) | |||||||||||||||||
| Income from operations before income taxes | $ | 1,159 | $ | 3,664 | $ | 5,588 | ||||||||||||||
1 Segment operating results are comprised of revenues and equity in earnings of unconsolidated joint ventures, less segment expenses, excluding investment income, other income (loss), corporate expenses, and income taxes. | ||||||||||||||||||||
Real Estate - Commercial/Industrial
Commercial revenue consists of land and building leases to tenants at the Company's commercial retail and industrial developments, base and percentage rents from the PEF power plant lease, communication tower rents, land sales, and payments from easement leases.
In 2025, the Company sold 2.8 acres of commercial land located at TRCC East to a third party for $1,727,000 and recognized previously deferred gross margin associated with the 2022 Nestlé land sale.
In 2024 and 2023, the Company did not have any land sales.
The following table summarizes revenues, expenses and operating income from this segment for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Commercial/industrial revenues | $ | 15,006 | $ | 12,552 | $ | 11,758 | |||||||||||
| Equity in earnings of unconsolidated joint ventures | 8,362 | 10,881 | 6,868 | ||||||||||||||
| Commercial/industrial revenues and equity in earnings of unconsolidated joint ventures | $ | 23,368 | $ | 23,433 | $ | 18,626 | |||||||||||
| Cost of sales of land | 1,862 | $ | — | $ | (176) | ||||||||||||
| Operating expenses | 2,451 | 3,206 | 4,074 | ||||||||||||||
| Selling, general and administrative expenses | 3,189 | 4,280 | 3,687 | ||||||||||||||
| Depreciation and amortization | 500 | 424 | 468 | ||||||||||||||
| Commercial/industrial expenses | $ | 8,002 | $ | 7,910 | $ | 8,053 | |||||||||||
| Operating results from commercial/industrial and unconsolidated joint ventures | $ | 15,366 | $ | 15,523 | $ | 10,573 | |||||||||||
Multifamily
The multifamily segment generates rents from the tenants living in the Terra Vista community. Construction of the Terra Vista development occurred in phases during 2024 and 2025, and leasing operations commenced as individual buildings were completed and placed into service. The final building was delivered in October 2025. The property is currently in the initial lease-up phase. Operating losses for 2025 primarily reflect start-up costs and depreciation and amortization associated with the newly completed development and are expected to moderate as occupancy increases.
The following table summarizes revenues, expenses and operating results from this segment for the years ended December 31:
| ($ in thousands) | 2025 | ||||
Multifamily revenues1 | 732 | ||||
| Operating expenses | 815 | ||||
| Selling, general and administrative expenses | 504 | ||||
| Depreciation and amortization | 960 | ||||
| Multifamily expenses | $ | 2,279 | |||
| Operating loss from multifamily | $ | (1,547) | |||
1Multifamily segment had no operating activities in 2024 and 2023. | |||||
Real Estate - Resort/Residential
The Resort/Residential real estate development segment is actively involved in pursuing land entitlement and development processes both internally and through joint ventures. The segment incurs costs and expenses related to land management activities on land held for future development, but currently generates no revenue.
The following table summarizes expenses and operating results from this segment for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Resort/residential | |||||||||||||||||
| Operating expenses | 1,632 | 1,742 | 754 | ||||||||||||||
| Selling, general and administrative expenses | 609 | 831 | 731 | ||||||||||||||
| Depreciation and amortization | 36 | 42 | 43 | ||||||||||||||
| Total resort/residential expenses | $ | 2,277 | $ | 2,615 | $ | 1,528 | |||||||||||
| Operating loss from resort/residential | $ | 2,277 | $ | 2,615 | $ | 1,528 | |||||||||||
Mineral Resources
The mineral resources segment receives oil and mineral royalties from the exploration and development companies that extract or mine the natural resources from the Company's land along with revenue from water sales. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Mineral resources revenues | $ | 9,636 | $ | 10,214 | $ | 14,524 | ||||||||||||||
| Cost of sales of water | 3,431 | 3,555 | 5,220 | |||||||||||||||||
| Operating expenses | 1,307 | 1,225 | 1,338 | |||||||||||||||||
| Selling, general and administrative expenses | 694 | 897 | 753 | |||||||||||||||||
| Depreciation and amortization | 1,375 | 1,375 | 1,374 | |||||||||||||||||
| Mineral resources expenses | $ | 6,807 | $ | 7,052 | $ | 8,685 | ||||||||||||||
| Operating results from mineral resources | $ | 2,829 | $ | 3,162 | $ | 5,839 | ||||||||||||||
Farming
The farming segment produces revenues from the sale of wine grapes, almonds, pistachios and hay. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Farming revenues | $ | 18,738 | $ | 13,925 | $ | 13,950 | ||||||||||||||
| Cost of sales | 13,532 | 11,832 | 12,125 | |||||||||||||||||
| Fixed water obligations | 2,796 | 2,912 | 695 | |||||||||||||||||
| Selling, general and administrative expenses | 109 | 488 | 340 | |||||||||||||||||
| Depreciation and amortization | 2,413 | 2,319 | 2,097 | |||||||||||||||||
| Farming expenses | $ | 18,850 | $ | 17,551 | $ | 15,257 | ||||||||||||||
| Operating results from farming | $ | (112) | $ | (3,626) | $ | (1,307) | ||||||||||||||
The improvement in 2025 operating results compared to 2024 was primarily driven by higher crop revenues and lower fixed water obligations.
Ranch Operations
Ranch operations consists of game management revenues and ancillary land uses, such as grazing leases and filming. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
| ($ in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Ranch operations revenues | $ | 5,479 | $ | 5,195 | $ | 4,507 | ||||||||||||||
| Operating expenses | 4,322 | 3,833 | 4,095 | |||||||||||||||||
| Selling, general and administrative expenses | 563 | 649 | 558 | |||||||||||||||||
Other expenses1 | 376 | 382 | 390 | |||||||||||||||||
| Ranch operations expenses | $ | 5,261 | $ | 4,864 | $ | 5,043 | ||||||||||||||
| Operating results from ranch operations | $ | 218 | $ | 331 | $ | (536) | ||||||||||||||
1 The main components of the other expenses included amortization and depreciation. | ||||||||||||||||||||
Information pertaining to assets of the Company’s reporting segments is as follows for each of the years ended December 31:
| ($ in thousands) | Identifiable Assets | Depreciation and Amortization | Capital Expenditures | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| Real estate - commercial/industrial | $ | 64,681 | $ | 500 | $ | 12,487 | ||||||||||||||
| Multifamily | 63,695 | 960 | 34,073 | |||||||||||||||||
| Real estate - resort/residential | 341,433 | 36 | 10,107 | |||||||||||||||||
| Mineral resources | 62,236 | 1,375 | 57 | |||||||||||||||||
| Farming | 58,545 | 2,413 | 6,202 | |||||||||||||||||
| Ranch operations | 2,172 | 376 | 192 | |||||||||||||||||
| Corporate | 37,707 | 354 | 92 | |||||||||||||||||
| Total | $ | 630,469 | $ | 6,014 | $ | 63,210 | ||||||||||||||
| 2024 | ||||||||||||||||||||
| Real estate - commercial/industrial | $ | 68,944 | $ | 424 | $ | 16,361 | ||||||||||||||
| Multifamily | 29,241 | — | 26,657 | |||||||||||||||||
| Real estate - resort/residential | 330,513 | 40 | 8,394 | |||||||||||||||||
| Mineral resources | 54,658 | 1,375 | 46 | |||||||||||||||||
| Farming | 54,478 | 2,319 | 4,891 | |||||||||||||||||
| Ranch operations | 2,658 | 382 | 739 | |||||||||||||||||
| Corporate | 67,506 | 345 | 146 | |||||||||||||||||
| Total | $ | 607,998 | $ | 4,885 | $ | 57,234 | ||||||||||||||
| 2023 | ||||||||||||||||||||
| Real estate - commercial/industrial | $ | 70,521 | $ | 468 | $ | 5,231 | ||||||||||||||
| Multifamily | 2,584 | — | 2,584 | |||||||||||||||||
| Real estate - resort/residential | 321,216 | 42 | 7,888 | |||||||||||||||||
| Mineral resources | 52,068 | 1,374 | — | |||||||||||||||||
| Farming | 52,094 | 2,097 | 4,870 | |||||||||||||||||
| Ranch operations | 2,072 | 390 | 464 | |||||||||||||||||
| Corporate | 76,968 | 435 | 291 | |||||||||||||||||
| Total | $ | 577,523 | $ | 4,806 | $ | 21,328 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 12, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 8, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.