On this page of StockholderLetter.com we present the latest annual shareholder letter from TEJON RANCH CO — ticker symbol TRC. Reading current and past TRC letters to shareholders can bring important insights into the investment thesis.
Since 1843 2025 ANNUAL REPORT to SHAREHOLDERS
April 3, 2026 Dear Shareholders, Last November, we made a commitment to chart a new course at Tejon Ranch Company. Since then, I am proud of the progress we have made and realistic about the significant work that remains. Above all, we have established a clear and rational investment framework focused on allocating capital to opportunities which generate meaningful returns on our investments. We must take a highly disciplined approach to investing and continue to find new ways to do things more efficiently, minimizing capital deployment, and generating a higher multiple on what we invest. This is not necessarily a paradigm shift. Rather, it is the implementation of a strategy that focuses on doing more of the things which have worked for us, and less of the things which haven t. As I reflect upon 2025, I want to thank our exceptional team for their hard work during my transition into the Company. Together, our team will expand the ways to extract value from the Ranch while remaining dedicated to our overall mission. 2025 Accomplishments In 2025, we laid the foundation for our business plan. An important part of this foundation was listening to shareholder feedback and discussing internally how we can continually improve. Throughout the year, much was accomplished by management and our Board to advance our commitments, positioning the Company for future success. Below are some examples. 1 In 2025, revenues grew to $49.6 million and Adjusted EBITDA1 improved to $25.3 million. Both measures reflect meaningful year-over-year progress across our operating businesses. Our 2025 financials included approximately $3.4 million in one-time proxy defense costs. That chapter is closed, and we re focused on execution and results. We completed a staff reduction which reduced personnel costs by 20% and targeted $1.5 million in reduced G&A expenses in 2026 and an additional $1.0 million by 2027. Our Board made meaningful progress on Board composition, voting to reduce the Board size from 10 to 9 after this year s annual meeting and from 9 to 7 after the 2027 meeting. Our Board voted to eliminate the Executive Committee. Our proxy includes a proposal for shareholder consideration at this year s annual meeting to establish a right for shareholders with a 25% or more threshold to call special meetings. We redesigned our executive compensation plan to better align management incentives with operating results and share price movement. We have provided increased financial disclosures to better explain our business. For the first time, we hosted quarterly earnings calls. We held an investor day in New York last fall. We will be hosting our annual meeting at the Ranch in May. As part of this event, shareholders attending will be able to tour our assets. More on that below. Adjusted EBITDA is a non-GAAP financial measure. See reconciliation to net income on Page 60 of the company s most recent Annual Report filed on Form 10-K.
Each of these steps helps us to optimize and streamline our organization so that we can focus on our much larger goal of driving shareholder value. Tejon Ranch Commerce Center (TRCC): Development Drives New Revenues At TRCC, the opening of the neighboring Hard Rock Casino Tejon brought a new wave of traffic. The Outlets at Tejon benefited from this increased traffic, posting its highest retail sales month ever in December 2025. This is an example of the flywheel effect that we have been building. New demand drivers such as the casino attract visitors, while our retail outlets convert that demand into revenue. Together, they make TRCC an increasingly compelling destination for tenants, business partners and future development. At year end, the Outlets at Tejon enjoyed 93% occupancy and our industrial portfolio was 100% occupied. Two land transactions also closed at TRCC during 2025 a hotel site sale and the back-end revenue recognition tied to the Nestl transaction. Multifamily: From Residential Potential to Residential Results Last year represented the achievement of a significant residential milestone for us: the completion of Phase 1 of Terra Vista at Tejon. We partnered with Greystar the nation s largest multifamily owner and manager to operate the 228-unit property which is now over 70% leased. Terra Vista s early performance reinforces our residential thesis for TRCC. Additionally, as reflected in our Annual Report, Multifamily is now presented as a separate segment. Putting the Ranch to Work: Land Monetization and New Revenue As we look ahead to the development of Phase 2 of Terra Vista, we will follow our capital allocation discipline and leverage our land and operating platform at TRCC to identify suitable partners for that opportunity. Our plan for Phase 2 of Terra Vista is a good example of our larger strategy of conserving our balance sheet and maximizing the return on our invested capital by utilizing the financial resources of operating partners. Under this approach, the Company retains an equity interest, royalty or ground lease, generating long-term cash flow while minimizing risk. This path will continue to serve us well, as it has across our broad existing base of economic assets. Oil and gas royalties, rock and aggregate royalties, communications leases and easements, power plant and utility-scale solar leases, grazing leases and water sales all generate high margin recurring revenue. This is not a new model for us. The Company has been generating royalty and lease income for decades. The Ranch is a platform with multiple, layered revenue streams, and our goal is to keep expanding them. Over the past year, we have been systematically exploring how to grow each of these categories and identify new ones. The most promising opportunities share a common profile: low capital requirement from Tejon, high yield on cost, and durable cash flow. We intend to expand on this plan as we also build out TRCC s remaining 11 million square feet of entitled industrial density. Farming: Improved Results and Diversification Turning to farming, pistachio trees run in alternate bearing cycles, and 2025 was an especially productive onbearing year, driving our farming segment to its best revenues in a decade. In addition, last year we diversified our agricultural portfolio by planting 150 acres of olives, with another 150 acres being planted in 2026. Going forward, we will continue to evaluate each crop s economics rigorously. Farming remains a portfolio diversifier, a cash generator and the program that supports the water contracts that will ultimately underpin our residential communities. Land Value: Managing Our Residential Assets for the Long Term We have been asked by some shareholders whether we should simply monetize the land for our master planned communities sell Centennial, sell Mountain Village, return the proceeds, and instead focus exclusively on TRCC.
It is a legitimate question and one we take seriously. Our answer is consistent: a disciplined, patient, flexible approach to these assets will create more value per share than an impatient exit. Grapevine. We are in the process of advancing our business plan for the initial phase of the entitled 12,000-unit residential community in planning area 6A, leveraging existing TRCC infrastructure. We look forward to sharing more as this effort progresses. Mountain Village. We are working on raising capital to seek a joint venture equity partner who would fund the go-forward equity to deliver the 3,450-unit community. This effort is expected to run through next year. Centennial. Following the California Court of Appeals decision directing the rescission of the 19,333-unit project s approvals, we evaluated our options carefully. While we disagreed with the ruling, we recognize that litigation is part of the land use process in California. We were also encouraged that the court affirmed that the Company prevailed on the vast majority of issues contested at trial. We are preparing environmental documentation in response to the specific issues identified by the court and expect to submit that work to Los Angeles County within the coming months. We anticipate being in front of the LA County Board of Supervisors towards the end of the year. This re-entitlement effort preserves the value of our investment in Centennial and provides the greatest opportunity for value realization in the future. You Are Invited to the Ranch This year's Annual Meeting of Shareholders will be held on Wednesday, May 13, 2026, at 9:00 a.m. Pacific Time in a hybrid format, allowing shareholders to participate in person at the Ranch or remotely by webcast. Following the meeting, we will be hosting property tours for shareholders who make the trip. Tour registration is separate from Annual Meeting registration, and space is limited. To reserve a spot on the property tour or for more information on the agenda, please email ir@tejonranch.com or visit ir.tejonranch.com by Thursday, April 30, 2026. Seats are available on a first-come, first served basis. Full instructions for how registered shareholders may attend the Annual Meeting in person or virtually are available in our Proxy Statement. For general inquiries about the meeting or agenda, please email ir@tejonranch.com or visit ir.tejonranch.com. We look forward to seeing you at the Ranch. Looking Ahead The Ranch is a remarkable place 270,000 acres at the intersection of two of California s great economies. Water. Infrastructure. Agriculture. Residential. Industrial. Retail. There are very few assets like it in the country and none quite like it in California, not just in its scale and resources, but in its legacy and authenticity. In 2025, we established our footing as a company, but also as a team moving forward with a shared purpose. We now have a solid platform, a disciplined capital framework, and an organization aligned around a single objective: earning a return on the land which reflects its true potential. The foundation for this effort is in place. We look forward to the road ahead. Sincerely, Matthew H. Walker President and Chief Executive Officer Tejon Ranch Company
Forward-Looking Statements This letter contains forward-looking statements within the meaning of the federal securities laws. These statements reflect current expectations about future developments and are not guarantees of future performance. Actual results may differ materially due to risks and uncertainties described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent SEC filings. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Tejon Ranch Co. becomes aware of after the date hereof, except as required by applicable law or regulation.
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TRC Shareholder/Stockholder Letter Transcript:

Since 1843
2025 ANNUAL
REPORT to
SHAREHOLDERS

April 3, 2026
Dear Shareholders,
Last November, we made a commitment to chart a new course at Tejon Ranch Company. Since then, I am proud
of the progress we have made and realistic about the significant work that remains.
Above all, we have established a clear and rational investment framework focused on allocating capital to
opportunities which generate meaningful returns on our investments. We must take a highly disciplined approach
to investing and continue to find new ways to do things more efficiently, minimizing capital deployment, and
generating a higher multiple on what we invest. This is not necessarily a paradigm shift. Rather, it is the
implementation of a strategy that focuses on doing more of the things which have worked for us, and less of the
things which haven   t.
As I reflect upon 2025, I want to thank our exceptional team for their hard work during my transition into the
Company. Together, our team will expand the ways to extract value from the Ranch while remaining dedicated to
our overall mission.
2025 Accomplishments
In 2025, we laid the foundation for our business plan. An important part of this foundation was listening to
shareholder feedback and discussing internally how we can continually improve. Throughout the year, much was
accomplished by management and our Board to advance our commitments, positioning the Company for future
success. Below are some examples.






1
In 2025, revenues grew to $49.6 million and Adjusted EBITDA1 improved to $25.3 million. Both measures
reflect meaningful year-over-year progress across our operating businesses.
Our 2025 financials included approximately $3.4 million in one-time proxy defense costs. That chapter is
closed, and we   re focused on execution and results.
We completed a staff reduction which reduced personnel costs by 20% and targeted $1.5 million in reduced
G&A expenses in 2026 and an additional $1.0 million by 2027.
Our Board made meaningful progress on Board composition, voting to reduce the Board size from 10 to
9 after this year   s annual meeting and from 9 to 7 after the 2027 meeting.
Our Board voted to eliminate the Executive Committee.
Our proxy includes a proposal for shareholder consideration at this year   s annual meeting to establish a
right for shareholders with a 25% or more threshold to call special meetings.
We redesigned our executive compensation plan to better align management incentives with operating
results and share price movement.
We have provided increased financial disclosures to better explain our business.
For the first time, we hosted quarterly earnings calls.
We held an investor day in New York last fall.
We will be hosting our annual meeting at the Ranch in May. As part of this event, shareholders attending
will be able to tour our assets. More on that below.
Adjusted EBITDA is a non-GAAP financial measure. See reconciliation to net income on Page 60 of the company   s most recent
Annual Report filed on Form 10-K.

Each of these steps helps us to optimize and streamline our organization so that we can focus on our much larger
goal of driving shareholder value.
Tejon Ranch Commerce Center (TRCC): Development Drives New Revenues
At TRCC, the opening of the neighboring Hard Rock Casino Tejon brought a new wave of traffic. The Outlets at
Tejon benefited from this increased traffic, posting its highest retail sales month ever in December 2025. This is
an example of the flywheel effect that we have been building. New demand drivers such as the casino attract
visitors, while our retail outlets convert that demand into revenue. Together, they make TRCC an increasingly
compelling destination for tenants, business partners and future development. At year end, the Outlets at Tejon
enjoyed 93% occupancy and our industrial portfolio was 100% occupied. Two land transactions also closed at
TRCC during 2025     a hotel site sale and the back-end revenue recognition tied to the Nestl   transaction.
Multifamily: From Residential Potential to Residential Results
Last year represented the achievement of a significant residential milestone for us: the completion of Phase 1 of
Terra Vista at Tejon. We partnered with Greystar     the nation   s largest multifamily owner and manager     to
operate the 228-unit property which is now over 70% leased. Terra Vista   s early performance reinforces our
residential thesis for TRCC. Additionally, as reflected in our Annual Report, Multifamily is now presented as a
separate segment.
Putting the Ranch to Work: Land Monetization and New Revenue
As we look ahead to the development of Phase 2 of Terra Vista, we will follow our capital allocation discipline and
leverage our land and operating platform at TRCC to identify suitable partners for that opportunity. Our plan for
Phase 2 of Terra Vista is a good example of our larger strategy of conserving our balance sheet and maximizing
the return on our invested capital by utilizing the financial resources of operating partners. Under this approach,
the Company retains an equity interest, royalty or ground lease, generating long-term cash flow while minimizing
risk.
This path will continue to serve us well, as it has across our broad existing base of economic assets. Oil and gas
royalties, rock and aggregate royalties, communications leases and easements, power plant and utility-scale solar
leases, grazing leases and water sales all generate high margin recurring revenue. This is not a new model for us.
The Company has been generating royalty and lease income for decades.
The Ranch is a platform with multiple, layered revenue streams, and our goal is to keep expanding them. Over the
past year, we have been systematically exploring how to grow each of these categories and identify new ones. The
most promising opportunities share a common profile: low capital requirement from Tejon, high yield on cost,
and durable cash flow. We intend to expand on this plan as we also build out TRCC   s remaining 11 million square
feet of entitled industrial density.
Farming: Improved Results and Diversification
Turning to farming, pistachio trees run in alternate bearing cycles, and 2025 was an especially productive onbearing year, driving our farming segment to its best revenues in a decade. In addition, last year we diversified our
agricultural portfolio by planting 150 acres of olives, with another 150 acres being planted in 2026. Going forward,
we will continue to evaluate each crop   s economics rigorously. Farming remains a portfolio diversifier, a cash
generator and the program that supports the water contracts that will ultimately underpin our residential
communities.
Land Value: Managing Our Residential Assets for the Long Term
We have been asked by some shareholders whether we should simply monetize the land for our master planned
communities     sell Centennial, sell Mountain Village, return the proceeds, and instead focus exclusively on TRCC.

It is a legitimate question and one we take seriously. Our answer is consistent: a disciplined, patient, flexible
approach to these assets will create more value per share than an impatient exit.


Grapevine. We are in the process of advancing our business plan for the initial phase of the entitled
12,000-unit residential community in planning area 6A, leveraging existing TRCC infrastructure. We look
forward to sharing more as this effort progresses.
Mountain Village. We are working on raising capital to seek a joint venture equity partner who would
fund the go-forward equity to deliver the 3,450-unit community. This effort is expected to run through
next year.
Centennial. Following the California Court of Appeals decision directing the rescission of the 19,333-unit
project   s approvals, we evaluated our options carefully. While we disagreed with the ruling, we recognize
that litigation is part of the land use process in California. We were also encouraged that the court affirmed
that the Company prevailed on the vast majority of issues contested at trial. We are preparing
environmental documentation in response to the specific issues identified by the court and expect to
submit that work to Los Angeles County within the coming months. We anticipate being in front of the
LA County Board of Supervisors towards the end of the year. This re-entitlement effort preserves the
value of our investment in Centennial and provides the greatest opportunity for value realization in the
future.
You Are Invited to the Ranch
This year's Annual Meeting of Shareholders will be held on Wednesday, May 13, 2026, at 9:00 a.m. Pacific Time
in a hybrid format, allowing shareholders to participate in person at the Ranch or remotely by webcast. Following
the meeting, we will be hosting property tours for shareholders who make the trip. Tour registration is separate
from Annual Meeting registration, and space is limited.
To reserve a spot on the property tour or for more information on the agenda, please email ir@tejonranch.com
or visit ir.tejonranch.com by Thursday, April 30, 2026. Seats are available on a first-come, first served basis.
Full instructions for how registered shareholders may attend the Annual Meeting in person or virtually are available
in our Proxy Statement. For general inquiries about the meeting or agenda, please email ir@tejonranch.com or
visit ir.tejonranch.com. We look forward to seeing you at the Ranch.
Looking Ahead
The Ranch is a remarkable place     270,000 acres at the intersection of two of California   s great economies. Water.
Infrastructure. Agriculture. Residential. Industrial. Retail. There are very few assets like it in the country and none
quite like it in California, not just in its scale and resources, but in its legacy and authenticity.
In 2025, we established our footing as a company, but also as a team moving forward with a shared purpose. We
now have a solid platform, a disciplined capital framework, and an organization aligned around a single objective:
earning a return on the land which reflects its true potential. The foundation for this effort is in place. We look
forward to the road ahead.
Sincerely,
Matthew H. Walker
President and Chief Executive Officer
Tejon Ranch Company

Forward-Looking Statements
This letter contains forward-looking statements within the meaning of the federal securities laws. These statements
reflect current expectations about future developments and are not guarantees of future performance. Actual
results may differ materially due to risks and uncertainties described in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2025, and subsequent SEC filings. The Company undertakes no
obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur,
or which Tejon Ranch Co. becomes aware of after the date hereof, except as required by applicable law or
regulation.


shareholder letter icon 4/3/2026 Letter Continued (Full PDF)
 

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