Maui Land & Pineapple Company Reports Fiscal 2024 Second Quarter Results
KAPALUA, Hawaii – Maui Land & Pineapple Company, Inc. (NYSE: MLP) has released its financial results for the six-month period ending June 30, 2024.
“The mid-year results for Maui Land & Pineapple Company demonstrate our positive momentum as we activate our extensive portfolio of valuable assets. This not only enhances economic stability for the company but also creates value for our shareholders. Our commitment to addressing the critical needs of the Maui community, coupled with a strong sense of urgency, drives our team to support local businesses and enhance the quality of life on Maui,” stated CEO Race Randle.
Second Quarter 2024 Highlights
Our strategic investments aimed at repositioning commercial centers to assist businesses affected by the Maui wildfires have led to a 24% boost in commercial real estate occupancy over the past year. This uptick in occupancy, along with recent land sales of non-strategic parcels and enhancements to resort amenities, has resulted in a 7.5% increase in overall operating revenue.
Business Segment Results:
- Real Estate
- Land sales revenue rose by $181,000 during the six months ending June 30, 2024, primarily from the sale of a non-strategic parcel easement in West Maui. In August, we finalized a contract to sell another non-strategic parcel and its associated assets in upcountry Maui. We are currently marketing additional non-strategic parcels for sale to generate further cash flow to support strategic land improvements. While we expect to monetize these non-strategic parcels in the near term, the benefits from improved land sales will typically take years to materialize as necessary enhancements are carried out.
- Operating costs related to real estate increased by $37,000 year-over-year as we began implementing strategic land improvement initiatives, which include planning and engineering for five projects in Upcountry and West Maui. During the six months ending June 30, 2024, we spent $549,000 on these active projects.
- Leasing
- The occupancy rate for our commercial properties surged by 24% as we continued to reposition and actively lease our portfolio, generating consistent operational cash flow in a market with limited supply.
- Leasing revenues increased by $70,000, reaching $4,388,000 for the six months ending June 30, 2024, indicating a recovery in percentage rents and tenant sales following the wildfires. We expect revenue to keep rising as occupancy improves, enhancements are finalized, and new tenants commence operations.
- We invested $595,000 in tenant improvements at our commercial centers during the six months ending June 30, 2024.
- Resort Amenities and Other
- Revenue from resort amenities, including the Kapalua Club, increased by $107,000 compared to the same period last year, driven by operational improvements and the acceptance of new memberships.
Overall Results:
- Operating Revenues – Totaled $5,128,000 for the six months ending June 30, 2024, reflecting an increase of $358,000 from the previous year.
- Operating Costs and Expenses – Totaled $8,409,000 for the six months ending June 30, 2024, which is an increase of $925,000 compared to the same period in 2023, mainly due to 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 prior year.
- Adjusted EBITDA (Non-GAAP) – Was ($251,000) for the six months ending 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 made it a priority to reposition and revitalize its commercial centers during the first half of 2024. As part of this initiative, the company is actively seeking new opportunities to optimize existing tenancies and secure new leases for available commercial spaces.
New Leaders Hired to Advance Asset Optimization & Development
The company has welcomed two senior leaders to enhance the productive use of its assets. Mark Matsuda has been appointed as Director of Engineering, while Kainoa Casco has taken on the role of Vice President of Land Productivity & Asset Management.
“Our mission to put tens of thousands of acres of prime land into active use presents both a significant opportunity and a serious responsibility. Mark and Kainoa bring invaluable local expertise,” said Randle. “We are proud to have these local leaders join our team as we strive to meet the critical needs of our community.”
Additional Information
For more details regarding Maui Land & Pineapple Company’s fiscal year 2023 operating results, please refer to the Form 10-K filed with the Securities and Exchange Commission.
About Maui Land & Pineapple Company
Maui Land & Pineapple Company, Inc. (NYSE: MLP) is committed to the responsible stewardship of its portfolio, which includes over 22,300 acres of land and 266,000 square feet of commercial real estate. The company envisions a future where individuals can flourish in resilient communities that offer adequate housing, economic stability, food and water security, and strong connections between people and their environment.
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 ending June 30, 2024.
How has the company's real estate segment performed recently?
The real estate segment experienced an increase in land sales revenue of $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 is focused on repositioning and revitalizing its commercial centers to support local businesses and fill vacancies.
Who are the newly appointed leaders at Maui Land & Pineapple Company?
Mark Matsuda has been appointed as Director of Engineering, and Kainoa Casco has taken on the role of Vice President of Land Productivity & Asset Management.
Where can I find more information about Maui Land & Pineapple Company's financials?
Detailed financial information can be found in the Form 10-K filed with the Securities and Exchange Commission.
