Maui Land & Pineapple Company (MLP) Q3 2024 earnings summary

Executive summary

• Maui Land & Pineapple Company owns over 22,400 acres on Maui and 247,000 sq. ft. of commercial real estate, focusing on land management, leasing, and development.

• Revenue grew 18.6% year-over-year for the nine months ended September 30, 2024, driven by higher leasing, land sales, and resort amenities.

• Leadership changes in 2023-2024 brought in expertise in real estate, planning, and asset management, with a renewed mission to maximize asset value and community benefit.

• Strategic investments in commercial properties and landholdings are underway, with planning progressing on over 4,100 acres.

• Strategic plans prioritize land activation for agriculture, housing, and commercial use, with increased commercial property occupancy from 72% to 86% year-to-date.

Financial highlights

• Operating revenues for Q3 2024 were $3.0M, up from $2.1M in Q3 2023; nine-month revenues were $8.2M, up from $6.9M year-over-year.

• Net loss for Q3 2024 was $2.2M ($0.11/share) vs. $1.2M ($0.06/share) in Q3 2023; nine-month net loss was $5.5M ($0.28/share) vs. $3.7M ($0.19/share) year-over-year.

• Operating costs and expenses rose to $13.7M, up $2.9M, mainly from increased share-based compensation and leasing expenses.

• Share-based compensation expense rose to $4.7M for the nine months ended September 30, 2024, from $2.5M in the prior year period.

• Cash and investments convertible to cash totaled $9.2M at September 30, 2024, including a $3M credit facility draw.

Outlook and guidance

• Near-term sales revenues (1-3 years) expected from non-strategic parcel sales and improved land in active marketing; longer-term revenue from land improvements and leasing.

• Revenue is expected to rise as occupancy increases, improvements are completed, and new tenants open.

• Commercial property cash flow anticipated to increase as occupancy stabilizes and tenant improvements are completed.

• Additional capital improvements are planned to support profitable lease-up of town centers.

• The company expects to fund improvements through property cash flow, asset sales, and credit facility draws.