{"id":833793,"date":"2025-04-03T16:37:22","date_gmt":"2025-04-03T20:37:22","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/tejon-ranch-co-reiterates-commitment-to-shareholder-value-creation-and-highlights-successful-execution-of-long-term-operating-strategy\/"},"modified":"2025-04-03T16:37:22","modified_gmt":"2025-04-03T20:37:22","slug":"tejon-ranch-co-reiterates-commitment-to-shareholder-value-creation-and-highlights-successful-execution-of-long-term-operating-strategy","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/tejon-ranch-co-reiterates-commitment-to-shareholder-value-creation-and-highlights-successful-execution-of-long-term-operating-strategy\/","title":{"rendered":"Tejon Ranch Co. Reiterates Commitment to Shareholder Value Creation and Highlights Successful Execution of Long-Term Operating Strategy"},"content":{"rendered":"
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\n Files Definitive Proxy Materials and Mails Letter to Shareholders<\/em>\n <\/p>\n

\n Urges Shareholders to Vote \u201cFOR\u201d Only Tejon\u2019s Highly Qualified Director Nominees on the WHITE Proxy Card TODAY<\/em>\n <\/p>\n

TEJON RANCH, Calif., April 03, 2025 (GLOBE NEWSWIRE) — Tejon Ranch Co. (NYSE:TRC), (\u201cTejon\u201d or the \u201cCompany\u201d), a diversified real estate development and agribusiness company, today filed definitive proxy materials with the Securities and Exchange Commission in connection with its upcoming Annual Meeting of Shareholders (the \u201cAnnual Meeting\u201d) to be held on May 13, 2025. Shareholders of record as of the close of business on March 17, 2025, are entitled to vote at the Annual Meeting.<\/p>\n

Tejon is also mailing a letter to shareholders highlighting the successful execution of its long-term strategy to create shareholder value and urging shareholders to vote \u201cFOR\u201d<\/strong> the Company\u2019s director nominees only, which are located on the WHITE<\/strong> proxy card. The full text of the letter follows:<\/p>\n

Dear Fellow Tejon Ranch Shareholders,<\/p>\n

At the upcoming 2025 Annual Meeting, you have an important choice to make regarding the future of your investment. We urge you to vote on the WHITE<\/strong> proxy card in favor of ONLY<\/strong> Tejon\u2019s 10 director nominees to protect the value of your investment.<\/p>\n

The Tejon Board of Directors and executive team have taken strategic and decisive steps that we believe position Tejon for long-term success while generating meaningful value for shareholders. Over the last year alone, Tejon has strengthened its business with a renewed commitment to operational excellence and the highest standards of corporate governance, including the implementation of strategic improvements, active director refreshment as part of an ongoing Board succession and investor engagement effort, and the hiring of a new CEO to help usher in the next phase of the Company\u2019s growth.<\/p>\n

Bulldog Investors, a New Jersey-based hedge fund, only recently took a position in Tejon and through an affiliated party has purported to nominate three directors to our Board \u2013 two of whom are current Bulldog Investors employees. Compared to Tejon\u2019s current Board of Directors, who bring a depth of expertise in executing the Company\u2019s business plans, none of Bulldog Investors\u2019 nominees have any identified expertise that matches Tejon\u2019s operating business units, including real estate development, operational experience or experience with the development of master-planned communities. We believe that Bulldog Investors wants to disrupt our value-creating strategy that we have been successfully executing on for years.<\/p>\n

By voting ONLY <\/strong>for Tejon\u2019s nominees and withholding your votes from Bulldog Investors\u2019 nominees, we will be able to continue executing on our long-term strategy to drive sustained growth of your investment while providing vital housing and economic growth for the State of California.<\/p>\n

\n Strong Momentum Underway to Unlock Value<\/strong>\n <\/p>\n

We are executing a strategy built on monetizing our 270,000 acres of contiguous land in a prime portion of the Southern California market located between Bakersfield and Los Angeles. We believe our deliberate development strategy and approach to land entitlement as well as the related industrial, commercial and residential development will drive long-term value creation for Tejon shareholders.<\/p>\n

We are carrying significant momentum into 2025 as construction continues on key projects and we advance our ambitious development agenda. Tejon\u2019s fourth quarter results showcase this momentum, including:\u00a0\u00a0<\/p>\n

\u2022\u00a0 Total revenue growth of 15% year-over-year to $21.6 million1<\/sup>;
\u2022\u00a0\u00a0GAAP net income attributable to common shareholders increased 186% year-over-year to $4.5 million;
\u2022\u00a0\u00a0Increase in year-over-year adjusted EBITDA of 116% to $10.5 million2<\/sup>; and
\u2022\u00a0\u00a0Strong occupancy rates at our Tejon Ranch Commerce Center (\u201cTRCC\u201d) industrial and commercial portfolios reaching 100% and 96%, respectively.<\/p>\n

This sustained progress combined with our disciplined and prudent approach to capital management has enabled us to maintain the liquidity required to develop true master-planned communities, while also supporting our diverse portfolio of real estate, mineral resources, agriculture and ranch operations that can drive long-term value. With unmatched assets in a highly attractive market, we believe Tejon is well positioned to unlock future value for shareholders.<\/p>\n

\n Substantial Progress on Execution of Long-Term Strategy<\/strong>\n <\/p>\n

Tejon Ranch consists of four master-planned communities, expected to eventually include over 35,000 homesites and approximately 35 million square feet of commercial and industrial space.\u00a0<\/p>\n

At the core of our portfolio is Tejon Ranch Commerce Center (TRCC)<\/strong><\/a>, a world-class development currently serving one of the most highly used corridors in California. TRCC generates recurring revenue through a balanced mix of industrial, commercial and residential assets and has significant opportunity for revenue expansion in the near-term. The ongoing success of TRCC, achieved through strategic entitlements and successful litigation defense of those entitlements, sets the benchmark for our other projects.<\/p>\n

We are also advancing several other strategically-located developments. Mountain Village<\/strong>at Tejon Ranch<\/strong><\/a> has been significantly advanced through both entitlement and litigation success and is envisioned as an exclusive, resort-style community, tailored to an active, outdoor lifestyle. Grapevine at Tejon Ranch<\/strong><\/a>, located adjacent to TRCC, is a primary market, mixed-use community designed to serve key regional markets while providing homes for those working at TRCC, where the logistics centers and retail tenants collectively employ several thousand workers. Centennial at Tejon Ranch<\/strong><\/a>, our Los Angeles County mixed-use development offers an opportunity for significant growth potential with substantial housing and commercial space in a high-opportunity area; this project has received approvals from the Los Angeles County Board of Supervisors and we are in the process of working to resolve pending litigation. Together, we believe these projects not only enhance our revenue potential but also demonstrate our ability to transform large tracts of land into integrated communities that drive sustainable shareholder value.<\/p>\n

The entitlement process is complex, lengthy, requires upfront capital, and creates significant barriers to entry into California development process. However, we believe that achieving and protecting master-plan entitlements can lead to significant cash flow generation once assets are developed into communities where people live, work and play, unlocking future value.<\/em><\/strong> Tejon has a decades-long track record of successfully obtaining land use entitlements in the notoriously difficult state of California (including in Los Angeles County, where there are additional challenges to entitlement), and these entitlements for Tejon\u2019s four master-planned communities will deliver significant value. In order to maximize the value of our long-term assets over time, it is critical that we continue to invest in the entitlement and approval process, and vigorously defend those entitlements in litigation challenging these approvals \u2013 something that Tejon has successfully done for each of its master-planned communities, while remaining focused on prudent capital usage. Our business is intentionally structured for prudent and market-driven, long-term development, and we believe that over time we will continue to generate stronger returns for our shareholders as additional projects come online.<\/strong><\/p>\n

We also have secured and carefully protected our water assets and contracts, which we believe will allow us to meet the needs for each of Tejon\u2019s development projects, as well as for the Company\u2019s existing agricultural and ranch operations. Our water assets have also historically generated revenue for the Company through water sales, while we await use of this vital resource in our developments. In addition, the Company will continue to utilize the legacy revenue-producing aspects of the land to their highest potential \u2013 including farming, grazing, minerals, land leases and easements \u2013 to generate additional recurring cash flow.<\/p>\n

\n Our Projects Address Critical Need for Housing and Jobs in California<\/strong>\n <\/p>\n

There is a severe housing shortage in California and a chronic undersupply of residences, which are expected to drive significant demand for our developments. The L.A. Basin and the Central Valley have a combined population of 25.8 million residents that require more than 180,000 new homes annually. Over the past decade, housing production has averaged just over 100,000 new homes per year \u2013 resulting in a massive supply shortfall. This shortage is further compounded by the immensely challenging entitlement efforts in California. Master-planned communities have proven to add enormous value to the State.\u00a0Several other State land use, housing and economic development planning efforts hinge on the construction of projects like Centennial<\/a>, Grapevine<\/a> and Mountain Village<\/a>.<\/p>\n

Tejon\u2019s ability to provide new housing in an undersupplied market not only responds to a significant need, but we believe also sets the foundation for long-term revenue diversification and value creation for Tejon shareholders. We regularly engage with our shareholders regarding these business plans that we believe have meaningful alignment of those plans with California\u2019s need for housing and jobs.<\/p>\n

\n Building on our High Standards of Corporate Governance<\/strong>\n <\/p>\n

We are proud to have a purpose-built Board overseeing the development and execution of the Company\u2019s growth strategy. Our directors are highly qualified, active and engaged leaders that bring the right balance of skills and expertise in areas relevant to our business, including executive-level experience in land and master-planned community development, knowledge of and success in California\u2019s challenging land development environment, real estate and business operations, banking, finance, law, accounting and capital allocation. Most importantly, our Board is committed to acting in the best interests of the Company and all of its shareholders.<\/p>\n

Our Board upholds high standards of corporate governance, including active board refreshment. The Board regularly engages in succession planning activities, most recently resulting in the Board adding four independent directors over the last six months and the retirement of two independent directors as the result of this robust succession planning effort, which included direct input from several Tejon shareholders. We continue to prioritize ongoing refreshment, focusing on candidates who add relevant skills to the Board in our effort to strengthen the Company\u2019s dedication to Tejon\u2019s entitled land assets and grow our diversified cash flow streams.<\/p>\n

Tejon\u2019s immensely qualified nominees include:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nSteven A. Betts<\/td>\n\u00a0<\/td>\n\n
    \n
  • Serves as Managing Director for a real-estate investment and development company focused on commercial, multifamily and hospitality assets, and formerly served as a strategic advisor to multiple real estate and commercial investment and development companies<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nGregory S. Bielli<\/td>\n\u00a0<\/td>\n\n
    \n
  • Tejon Ranch Co.\u2019s recently retired President and CEO, who served from 2013 through March 31, 2025, brings more than 35 years of experience and expertise in every aspect of the business including implementation of master-planned communities in highly regulated and litigious environments, real estate, land acquisition, entitlements, development and financing<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nDenise Gammon<\/p>\n

(Elected November 2024)<\/em><\/td>\n

\u00a0<\/td>\n\n
    \n
  • Senior development executive with nearly four decades of experience leading, managing, and consulting on a diverse range of real estate ventures, including at highly regarded development firms, influencing 30 communities nationwide<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nAnthony L. Leggio<\/td>\n\u00a0<\/td>\n\n
    \n
  • Real estate development executive with nearly five decades experience in California\u2019s commercial and residential real estate industry, agribusiness, land use entitlements, water resources, finance, as well as extensive legal experience<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nJeffrey J. McCall<\/p>\n

(Elected November 2024)<\/em><\/td>\n

\u00a0<\/td>\n\n
    \n
  • Served as CFO and COO of a publicly-traded company that oversees multi-strategy residential real estate investments (including in California) and has deep financial acumen bringing experience in finance, accounting and business operations<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nNorman J. Metcalfe<\/td>\n\u00a0<\/td>\n\n
    \n
  • Real estate and community development executive with extensive entitlement and financial experience, particularly with capital structures within the real estate industry and public company board experience<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nEric H. Speron<\/p>\n

(Elected November 2024)<\/em><\/td>\n

\u00a0<\/td>\n\n
    \n
  • Managing Director of a banking, trust services, financial planning and investment company with deep capital markets and financial expertise as well as experience in corporate governance<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nDaniel R. Tisch<\/td>\n\u00a0<\/td>\n\n
    \n
  • Managing member of an investment fund with over 50 years of investing experience, brings experience in capital raising and risk management<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nMichael H. Winer<\/td>\n\u00a0<\/td>\n\n
    \n
  • Senior investment manager with over two decades of mutual fund experience and extensive board service, bringing deep expertise in real estate investing<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\nKenneth G. Yee<\/p>\n

(Elected November 2024)<\/em><\/td>\n

\u00a0<\/td>\n\n