Limoneira Company (LMNR) 27th Annual ICR Conference 2025 summary

Strategic transition and business model evolution

• Transitioning to an asset-lighter model by expanding grower partnerships and reducing direct production, aiming for 80% of citrus supply from partners within five years.

• Focused on maximizing value through strategic land conversion from agriculture to urban development, targeting a 10x value increase.

• Monetizing water rights in key regions, with new fallowing programs and upcoming opportunities tied to the Colorado River accord in 2026.

• Streamlining operations by selling non-strategic assets, reducing debt, and improving return on invested capital.

• Enhanced ESG initiatives and improved ESG scores, reflecting ongoing commitment to sustainability.

Growth drivers and operational highlights

• Significant expansion in avocado production, shifting from 1,000 to 2,000 acres in Ventura County over five years, targeting 30 million pounds annually.

• Agency and farm management services businesses are key growth areas, leveraging relationships and new technologies like drone spraying.

• Packing house investment enables automated, efficient processing of over a billion lemons annually, supporting margin expansion.

• Real estate development, especially the Harvest at Limoneira project, is a major cash flow driver, with $180 million expected over five years.

• Steady dividend payments and EBITDA growth, with 2025 guidance of 5–5.5 million lemon cartons and 7–8 million pounds of avocados.

Asset monetization and real estate development

• Sold four of six non-strategic assets, generating $130 million, with $50 million more expected.

• Progressing on entitlement and monetization of Chilean assets and a 724-acre vineyard in Paso Robles.

• Harvest at Limoneira phase two sold for $100 million; phase three includes 550 lots and 300 apartments, with commercial development underway.

• Developing Harvest Medical Pavilion with hospital, clinic, restaurant, and hotel to enhance commercial value.

• Large disparity between historical book value and current fair market value of assets presents further monetization opportunities.