Alico (ALCO) investor relations material

Strategic transformation and business model

• Transitioned from direct citrus farming to a diversified real estate and land management model after sustained losses from disease and hurricanes, ceasing citrus operations in January 2025.

• Now focuses on monetizing 46,000 acres through leasing to agricultural tenants and pursuing development opportunities, with 72% of land expected to remain agricultural.

• Identified 5,500 acres for near-term development (next five years) valued at $335M–$380M, and 7,100 acres for mid- to long-term development valued at $140M–$170M.

• Remaining 33,400 acres retained for agriculture, valued at $175M–$200M, with total land value estimated at $650M–$750M, about double current market cap.

• Land use and development plans are tailored county by county, leveraging local expertise and regulatory knowledge.

Key development projects and approvals

• Major project in Collier County (near Naples) with 4,660 acres, recently achieved significant county approval and progressing through state and federal processes.

• Collier project to be developed in two villages, with 3,000 acres for residential/commercial and 7,000 acres for conservation, including a panther corridor and $5M underpass for wildlife.

• Bonnet Lake (600 acres) and Saddlebag Grove (240 acres) targeted for residential development, with Bonnet Lake potentially yielding 2,000 homes.

• Hendry County's Mobley Plant World (80 acres) and other smaller parcels also in the pipeline for development.

• Commercial development options remain open: self-develop, sell entitled land, or partner with builders, with a decision expected within a year.

Financial performance and capital management

• Returned $209M to shareholders since 2015 through dividends, debt repayment, and buybacks; $107M since 2021.

• Net debt reduced to mid-$40M, with $10M buyback completed and $40M more authorized through May 2028.

• Six-month revenue of $19.6M, projected year-end EBITDA of $14M, and expected cash balance of $40M to support operations through at least fiscal 2028.

• Recent land sales achieved $9,000+ per acre, above modeled estimates of $4,000–$5,000 per acre.

• Discount rates for land valuations range from 10% to 15%.