Maui Land & Pineapple Company Reports Fiscal 2024 Second Quarter Results
KAPALUA, Hawaii – Maui Land & Pineapple Company, Inc. (NYSE: MLP) today reported financial results covering the six month period ended June 30, 2024.
“Maui Land & Pineapple Company’s mid-year results reflect positive momentum as we activate our vast portfolio of prime assets into productive use, thus supporting improved economic stability for the company and value creation for shareholders. With our mission of meeting the critical needs of our Maui community, combined with a profound sense of urgency, our team is focused on supporting local businesses and improving the quality of life on Maui,” said CEO Race Randle.
Second Quarter 2024 Highlights
Strategic investments to reposition our commercial centers with a focus on supporting businesses impacted by the Maui wildfires has contributed to a 24% increase in commercial real estate occupancy over the past year. Due to this improved occupancy, recent land sales of non-strategic parcels, and operational improvements of resort amenities, the company has experienced a 7.5% growth in overall operating revenue.
Business Segment Results:
- Real Estate
- Land sales revenue increased by $181,000 during the six months ended June 30, 2024. This resulted from the first non-strategic parcel sale of an easement in West Maui. In August, we contracted to sell a non-strategic parcel and associated assets in upcountry Maui. Additional non-strategic parcels are currently being marketed for sale to generate additional cash flow in support of strategic land improvements. While non-strategic parcels will be monetized in the near term, proceeds from improved land sales will generally require years to realize as necessary improvements are executed.
- Real estate-related operating costs increased $37,000 year-over-year as we began to implement strategic land improvement efforts, including planning and engineering across five projects in Upcountry and West Maui. Cash expended toward these active projects amounted to $549,000 during the six months ended June 30, 2024.
- Leasing
- The occupancy of our commercial properties increased 24% as we advanced the repositioning and actively leased our portfolio to generate steady operational cash flow in a supply-constrained market.
- Leasing revenues increased $70,000 to $4,388,000 for the six months ended June 30, 2024, indicating that percentage rents and associated tenant sales have recovered following the wildfires. We anticipate continued rising revenue as occupancy continues to increase, improvements are completed, and new tenants open for business.
- Cash expended on tenant improvements at our commercial centers amounted to $595,000 during the six months ended June 30, 2024.
- Resort Amenities and Other
- Revenue from resort amenities, including the Kapalua Club, increased by $107,000 over the same period last year, due to operational improvements and acceptance of new memberships.
Overall Results:
- Operating Revenues – Totaled $5,128,000 for the six months ended June 30, 2024, an increase of $358,000 compared to the previous year.
- Operating Costs and Expenses – Totaled $8,409,000 for the six months ended June 30, 2024, an increase of $925,000 compared to the same period in 2023, primarily driven by non-cash expenses related to share-based compensation.
- Net loss – Was $3,247,000, or $0.17 per common share, compared to a loss of $2,481,000 or $0.13 per common share in the previous year.
- Adjusted EBITDA (Non-GAAP) – Was ($251,000) for the six months ended June 30, 2024.
- Cash and Investments Convertible to Cash (Non-GAAP) – Totaled $6,960,000 on June 30, 2024, a decrease of ($1,875,000) compared to the previous audited result.
Revitalizing MLP’s Commercial Town Centers
Maui Land & Pineapple Company has prioritized repositioning and reinvigorating its commercial centers during the first half of 2024. As part of these efforts, the Company has been actively pursuing new opportunities to optimize existing tenancy and execute new leases for available commercial space.
New Leaders Hired to Advance Asset Optimization & Development
Maui Land & Pineapple Company added two senior leaders to the team to maximize the productive use of the Company’s assets. Mark Matsuda was appointed as Director of Engineering, and Kainoa Casco became the Vice President of Land Productivity & Asset Management.
“A mission to place tens of thousands of acres of prime land into active use is both a tremendous opportunity and an incredible responsibility. Mark and Kainoa bring valuable local expertise,” said Randle. “We’re honored to welcome these local leaders to our team as we embark on our journey to meet the critical needs of the community.”
Additional Information
More information about Maui Land & Pineapple Company’s fiscal year 2023 operating results is available in the Form 10-K filed with the Securities and Exchange Commission.
About Maui Land & Pineapple Company
Maui Land & Pineapple Company, Inc. (NYSE: MLP) is dedicated to the thoughtful stewardship of their portfolio including over 22,300 acres of land and 266,000 square feet of commercial real estate. The Company envisions a future where people can thrive in resilient communities with sufficient housing supply, economic stability, food and water security, and deep connections between people and place.
Frequently Asked Questions
What were the key financial results for Maui Land & Pineapple Company?
The company reported an operating revenue of $5,128,000 and a net loss of $3,247,000 for the six-month period ended June 30, 2024.
How has the company's real estate segment performed recently?
The real estate segment saw an increase in land sales revenue by $181,000 compared to the previous year, driven by strategic parcel sales.
What are Maui Land & Pineapple Company's plans for their commercial centers?
The company aims to reposition and reinvigorate its commercial centers to support local businesses and fill vacancies.
Who are the newly appointed leaders at Maui Land & Pineapple Company?
Mark Matsuda was appointed as Director of Engineering, and Kainoa Casco became Vice President of Land Productivity & Asset Management.
Where can I find more information about Maui Land & Pineapple Company's financials?
Detailed financial information is available in the Form 10-K filed with the Securities and Exchange Commission.
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