Alico (ALCO) 2024 Southwest IDEAS Conference summary

Company overview and land assets

• Operates as a 127-year-old Florida-based agricultural business with a $195 million market cap and 53,700 acres of land, plus 48,700 acres of mineral rights.

• Main revenue streams are citrus production and land management, including third-party grove management and land leases.

• Recognized as the top citrus grower in the U.S., supplying major brands and managing groves for peers on a fee basis.

• Land value estimates suggest a significant gap between market cap and replacement value, with citrus land valued at $8,000–$10,000 per acre.

Strategic land sales and capital allocation

• Divested a 69,000-acre cattle ranch since 2018 for $226 million, focusing on core citrus operations.

• Opportunistically sold underperforming citrus groves at $9,000 per acre, with options for future sales.

• Returned nearly $197 million to shareholders since 2015 through dividends and buybacks, while reducing debt from over $200 million to $80 million.

Citrus operations and production strategy

• Citrus operations are based on multi-year contracts with processors, primarily Tropicana, at pre-negotiated prices.

• Increased tree density on existing land since 2017, planting 2.2 million new trees, now reaching maturity.

• Maximum tree density is 160–180 trees per acre, with future replanting focused on offsetting attrition.