On November 14, 2024, Maui Land & Pineapple Company, Inc. (NYSE: MLP) reported financial results covering the three-month period ended September 30, 2024.
“Our third-quarter results demonstrate strong momentum across all business segments, with an 18.6% increase in revenue compared to last year. We’re encouraged by this growth as we continue making strategic investments in our portfolio of commercial properties and landholdings. This includes progressing the planning on over 3,500 acres in West Maui and over 600 acres in Hali‘imaile, with improvements and value uplift to occur over the next several years. These initiatives reinforce our commitment to addressing community needs and delivering long-term value to our shareholders.” – CEO Race Randle
Third Quarter 2024 Highlights:
Business Segment Results:
Real Estate
Land sales revenue increased by $181,000 year-over year. This growth was driven by the sale of a non-strategic parcel easement in West Maui, with additional parcels currently marketed to support strategic land improvements. The company’s first land development project in Hali‘imaile, in partnership with a local community builder, has also begun marketing efforts.
Real estate-related operating costs also increased by $161,000 year-over-year due to ongoing land improvement projects across ten initiatives in Upcountry and West Maui.
Leasing
Occupancy across MLP’s commercial properties increased by 19%, reflecting the company’s ongoing efforts to reposition and actively lease its portfolio in a supply-constrained market. Leasing revenues rose by $899,000 to $7,148,000 year-to-date, indicating a substantial recovery in percentage rents and tenant sales following the August 2023 wildfires.
Cash spent on tenant improvements at commercial centers totaled $1,063,000, with additional capital improvements planned to support profitable lease-ups in town centers.
Resort Amenities and Other
Revenue from resort amenities, including the Kapalua Club, increased by $201,000 year-to-date, attributed to new memberships and enhanced membership structures.
Overall Results:
Total operating revenues increased by $8,153,000, due to increases in leasing, and resort amenities and other.
Operating costs and expenses totaled $13,669,000, an increase of $2,895,000 compared to the same period in 2023. This was primarily driven by share-based compensation, along with increased expenses related to the lease-up on vacant spaces in our commercial properties.
Net loss was $5,484,000 or $0.28 per basic common share and $0.27 per diluted common share, driven by non-cash expenses related to share-based compensation and post-retirement expenses.
Adjusted EBITDA was $138,000.
Cash and liquid investments convertible to cash totaled $9,239,000, an increase of $404,000 compared to December 31, 2023, attributable to a draw on the Company’s credit facility to invest in strategic improvements to the Company’s portfolio of commercial properties and land.
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