Tejon Ranch Co. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders was $3.3 million ($0.12 per share basic and diluted) for the third quarter of 2026, an increase of $1.6 million compared to $1.7 million ($0.06 per share) in the third quarter of 2025.
• Revenues and other income, including equity in earnings of unconsolidated joint ventures, totaled $25.0 million for the third quarter of 2026, an increase of $10.3 million compared to $14.7 million in the third quarter of 2025.
• Adjusted EBITDA was $10.4 million for the third quarter of 2026, an increase of $5.1 million compared to $5.3 million in the third quarter of 2025.
• Corporate expenses, excluding share-based compensation adjustments, decreased 39.8% in the third quarter of 2026 compared to the same period in 2025.
• For the nine months ended September 30, 2026, corporate expenses, excluding share-based compensation adjustments and non-recurring costs in 2025, decreased 22.4% compared to the prior year.
• Total capital, including debt, was $591.3 million as of September 30, 2026.
• Total liquidity was approximately $74.4 million, consisting of $8.8 million in cash and securities and $65.6 million available on the line of credit.
• Revolving line of credit balance was $94.4 million as of September 30, 2026, compared to $93.9 million as of December 31, 2025.
• Net income for the nine months ended September 30, 2026, was $6.1 million, compared to a net loss of $1.5 million in the prior-year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $23.6 million, compared to $13.9 million in the prior-year period.

Guidance and Future Outlook:

• The Company expects the new industrial Building 1B at Tejon Ranch Commerce Center to be delivered in early 2027.
• Management plans to continue pursuing commercial and industrial development directly and through joint ventures, including opportunistic land sales.
• The Company continues to advance its proposed residential communities.
• Net income is expected to fluctuate based on the timing of land sales, leasing activity, agricultural results, and commodity prices.
• The 2026 farming harvest is substantially complete, with results benefiting from prior-year pistachio pricing adjustments and crop insurance proceeds.
• Water market conditions remain influenced by higher State Water Project allocations in 2026 and the potential for increased precipitation in 2027; the Company continues to evaluate opportunities to execute water sales when market conditions are favorable.

Business Segments and Product Lines:

• Commercial/Industrial Real Estate: Revenues were $3.2 million and segment operating income was $4.0 million for the third quarter of 2026, generally consistent with the prior-year period.
• Leasing and Occupancy: The TRCC industrial portfolio consists of 2.8 million square feet of gross leasable area (GLA) and remains 100% leased. The TRCC commercial portfolio consists of approximately 584,000 square feet of GLA and is 95% leased. Occupancy at the Outlets at Tejon was 92% as of September 30, 2026.
• Construction: Construction continues on Building 1B (510,500 square feet Class A industrial building) through a joint venture with Dedeaux Properties (60% economic interest), expected to receive its certificate of occupancy in the first quarter of 2027.
• Development: The Tejon Indian Tribe and Hard Rock International broke ground on Phase II of the Hard Rock Casino Tejon, which will include a 406-room hotel, a 2,800-seat entertainment venue, and additional gaming space.
• Farming: Revenues increased to $12.6 million in the third quarter of 2026 compared to $4.3 million in the prior-year period, driven by higher crop sales, $2.6 million in pricing adjustments on prior-year pistachio sales, and $3.9 million in crop insurance proceeds.
• Farming Operating Income: The segment generated operating income of $1.4 million in the third quarter of 2026, compared to an operating loss of $1.0 million in the prior-year period.
• Farming Year-to-Date: For the nine months ended September 30, 2026, farming revenues increased to $14.3 million compared to $6.5 million in the prior-year period, while the operating loss narrowed to $0.2 million from $2.9 million.
• Farming Crop Mix: The increase was primarily attributable to pistachio revenues and higher wine grape revenues due to harvest timing, partially offset by an 11.3% decrease in almond revenues due to lower sales of carryover crop.
• Crop Diversification: The Company completed the planting of an additional 150 acres of olives in 2026, bringing total olive acreage to approximately 300 acres.
• Mineral Resources: Revenues increased 24.9% to $4.0 million in the third quarter of 2026 compared to $3.2 million in the prior-year period, driven by higher rock and aggregate royalties and water sales. Segment operating income increased 57.5% to $1.7 million.
• Mineral Resources Year-to-Date: For the nine months ended September 30, 2026, segment revenues increased 27.6% to $9.3 million, while segment operating income increased 57.8% to $3.6 million.
• Mineral Resources Lease: National Cement exercised its option to extend its lease term an additional 20 years, through 2047.

Market and Competitive Landscape:

• The Hard Rock Casino Tejon opening and continued leasing at Terra Vista are contributing to increased commercial activity at TRCC.
• The Phase II expansion of the Hard Rock Casino is expected to strengthen the area as a regional destination and support additional commercial activity at TRCC.
• The Company's strategy focuses on generating recurring revenue from landholdings through ground leases, royalty agreements, and rights-of-way easements.

Risks and Challenges:

• Net income fluctuation is driven by the timing of land sales, leasing activity, agricultural results, and commodity prices.
• Agricultural results are subject to weather conditions, specifically warmer spring weather which accelerated wine grape harvests but adversely affected almond development and kernel weights.
• Water market conditions are influenced by State Water Project allocations and precipitation levels.
• Forward-looking statements are subject to risks including market, economic, geopolitical, and weather conditions; availability and cost of financing; competition; commodity prices and agricultural yields; ability to obtain governmental entitlements and permits; and timing of regulatory and litigation matters.

Management Commentary and Tone:

• Matthew Walker, President and CEO, described the quarter as "solid," noting improvements in revenue, net income, and EBITDA on both a quarterly and year-to-date basis.
• Management highlighted that while farming revenue included unusually large crop insurance proceeds and price adjustments, individual operating segments generated steady growth over the same quarter last year when excluding these items.
• The Company is implementing a plan to create sustainable earnings growth by pursuing opportunities surpassing hurdles, carefully committing capital expenditures based on available cash, and driving performance from high-return activities across its 270,000 acres.
• Management stated the clear goal is to "unlock with urgency the substantial value of our land and water assets for our shareholders."

Other Key Points:

• The Company holds a 60% economic interest in the joint venture with Dedeaux Properties for the TRCC industrial portfolio.
• The Company has 27,021,444 shares of common stock issued and outstanding as of September 30, 2026.
• The Company reported Adjusted Farming EBITDA before fixed water obligations of $2.6 million for the third quarter of 2026, compared to $0.4 million in the prior-year period.
• The Company reported Adjusted Farming EBITDA before fixed water obligations of $3.3 million for the nine months ended September 30, 2026, compared to $0.8 million in the prior-year period.
• The Company hosts an earnings conference call on November 5, 2026, at 2:00 p.m. Pacific Time.
• The Company's landholding spans 270,000 acres in Los Angeles and Kern Counties, California.