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Here are 1-2 brief analogies to describe Tejon Ranch (TRC):

• Like The Irvine Company, but publicly traded and focused on developing new cities and commercial hubs on its vast landholdings in California.
• Similar to The Howard Hughes Corporation (HHC), as it develops large master-planned communities and commercial centers, but with significant agricultural and natural resource operations.

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• Real Estate Development: Tejon Ranch plans and develops master-planned communities and commercial/industrial properties across its extensive land holdings.
• Agriculture: The company cultivates permanent crops such as almonds, pistachios, and wine grapes, and operates a significant beef cattle ranch.
• Mineral Resources: Tejon Ranch manages and leases its extensive oil and natural gas mineral rights to third-party exploration and production companies.
• Ranch Operations: This segment involves the stewardship of vast undeveloped land, offering recreational activities like hunting and providing other land-based services.

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Major Customers of Tejon Ranch (TRC)

Tejon Ranch (TRC) primarily sells to other companies across its diverse business segments, rather than directly to individuals. Its operations include real estate development, agriculture, and mineral resources.

For its real estate development segment, particularly the Tejon Ranch Commerce Center, major customers are often companies that lease commercial and industrial space. Examples of well-known tenant companies (customers) in its commercial properties include:

• Caterpillar Inc. (Symbol: CAT)
• Dollar General Corporation (Symbol: DG)
• Famous Footwear (a brand of Caleres, Inc. - Symbol: CAL)
• Other significant tenants include companies like IKEA (privately held) and L'Oréal (publicly traded in Paris, not NYSE).

In its other business segments, Tejon Ranch serves a variety of business customers, though specific major customers are not always publicly disclosed due to the nature of the industries:

• For its agricultural operations (e.g., pistachios, almonds, wine grapes, jojoba, cattle), customers are typically large-scale food processors, distributors, and wholesalers who purchase bulk agricultural products.
• For its mineral resources (e.g., oil and gas, aggregates), customers include energy companies and construction material buyers.
• For its residential land development projects, customers are often homebuilders and other real estate developers who purchase land parcels for further development and construction.

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• Edison International (EIX)
• Sempra Energy (SRE)

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Matthew Walker, President & CEO

Mr. Walker assumed the role of President and CEO on March 31, 2025, having joined Tejon Ranch as Chief Operating Officer on March 6, 2025. Prior to Tejon Ranch, he had a distinguished 24-year career at Lowe Enterprises, a Los Angeles-based real estate firm, where he served as Executive Vice President and Shareholder. At Lowe, he oversaw the firm's hospitality and resort community platform and gained extensive real estate experience in resort and residential development, residential sales and marketing, master-planned community entitlement and development, and capital development and joint venture formation.

Robert D. Velasquez, Senior Vice President, Finance, Chief Accounting Officer and Chief Financial Officer

Mr. Velasquez was appointed interim Chief Financial Officer and Treasurer, effective July 15, 2025, and also continues in his roles as Senior Vice President, Finance, Chief Accounting Officer, and Assistant Secretary. He joined Tejon Ranch in 2014 and has over 25 years of experience in the real estate, hospitality, and construction industries. Before joining Tejon Ranch, he was an Executive Director at Ernst & Young, where he oversaw audit and advisory services for publicly traded companies.

Hugh F. McMahon IV, Executive Vice President, Real Estate

Michael R.W. Houston, Senior Vice President, General Counsel

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1. Regulatory Hurdles and Legal Challenges for Real Estate Development: A dominant risk for Tejon Ranch is the complex and protracted process of obtaining governmental approvals and entitlements for its large-scale real estate developments in California. Projects like Centennial have faced significant delays and legal challenges, notably due to concerns over wildfire risk and greenhouse gas emissions, leading to court rulings that have stalled construction.

2. Financial Performance and Capital Intensity of Development: Tejon Ranch is heavily investing in master-planned communities that are not yet profitable, contributing to increased debt and operational losses. The company has experienced inconsistent and declining revenue in recent years, leading to shareholder concerns about capital allocation and a lack of commensurate returns on long-term projects. The availability and cost of financing for these capital-intensive land development activities also pose a continuous risk.

3. Adverse Market and Economic Forces: The company's business results are significantly influenced by broader market and economic conditions, including fluctuating interest rates and the overall health of the real estate market. Rising interest rates and a softening commercial real estate market can reduce the incentive for new construction and make securing necessary financing more challenging, impacting the timing and profitability of Tejon Ranch's development initiatives.

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Intensifying impacts of climate change in California, particularly severe drought conditions leading to increasing water scarcity and heightened wildfire risks. This trend is driving more stringent environmental regulations, particularly concerning land use and water allocation, and increasing public and political opposition to large-scale greenfield developments, potentially delaying projects, increasing development costs, and limiting the scope or profitability of Tejon Ranch's residential, commercial, and agricultural operations.

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Tejon Ranch (TRC) is a diversified real estate development and agribusiness company that also generates revenue from mineral resources and ranch operations. The addressable market sizes for its main products and services, primarily within California, are detailed below.

Real Estate Development

• Commercial/Industrial Real Estate: The California commercial building market is projected to grow from approximately $151.04 billion in 2024 to $198.85 billion by 2035. In 2023, direct spending on commercial real estate in California contributed an estimated $48.3 billion to the state's economy. Within this, the industrial sector accounted for $5 billion and warehouses for $8.8 billion.
• Residential Real Estate: The median sale price for homes in California was $813,000 in September 2024. By March 2025, the statewide median price for an existing single-family home reached $884,350, with a forecast of approximately $909,400 for the entire year 2025. The average home value in California was about $796,255 as of mid-2025.

Farming Operations

• Agricultural Products (Almonds, Pistachios, Wine Grapes, Hay): California's agriculture sector generated over $59 billion in sales in 2022. Fruits, tree nuts, and berries alone contributed over $23 billion to the state's agricultural sales in 2022. California's almond production, a key crop for Tejon Ranch, is valued at $5.3 billion annually and accounts for 80% of the world's commercial almonds.

Mineral Resources

• Oil, Gas, Aggregate, Limestone, and Water Sales: Tejon Ranch derives revenue from oil and mineral royalties, and water sales. For instance, National Cement produces over 23 million cubic yards of cement from its limestone mining lease on the ranch. Specific addressable market sizes for royalties, water sales, or the aggregate/limestone mining industry that Tejon Ranch participates in at the state level are not readily available in the provided information beyond the company's internal revenue figures for these segments.

Ranch Operations

• Cattle Grazing, Game Management (Hunting), and Filming Locations: Tejon Ranch leases land for cattle grazing, operates a hunting program, and provides locations for filming. Specific addressable market sizes for these niche services within California are not readily available in the provided information.

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Tejon Ranch (TRC) is expected to drive future revenue growth over the next two to three years through several key initiatives across its diversified real estate development and agribusiness segments:

1. Expansion and Leasing within the Tejon Ranch Commerce Center (TRCC): Tejon Ranch anticipates continued revenue growth from its fully leased 2.8 million square feet of industrial property within the TRCC, suggesting potential for new industrial development or future rent escalations. Additionally, the ongoing leasing of its Terra Vista residential community, which is 55% leased of its 180 delivered units and will eventually total 228 units, is expected to generate a steady stream of rental income.
2. Advancement and Monetization of Master Planned Communities (MPCs): The company is strategically investing in and progressing its master-planned communities, including Mountain Village, Grapevine, and Centennial. These developments involve securing land use entitlements and transforming raw land into monetizable assets, a core component of Tejon Ranch's long-term growth strategy to generate future cash flow.
3. Increased Economic Activity from the Hard Rock Tejon Casino: The pending opening of the Hard Rock Tejon Casino on November 13, 2025, is a significant external driver. The casino is projected to create approximately 5,000 jobs, which is expected to substantially increase traffic and demand for Tejon Ranch's residential units, particularly Terra Vista, as the company is actively working with casino management to highlight the benefits of residing there.
4. Growth in the Farming Segment: Tejon Ranch's farming segment has demonstrated strong performance, with revenues increasing by 34% in Q3 2025 compared to the previous year. This growth is attributed to improved almond prices, higher production volumes of almonds and wine grapes, and strategic crop diversification efforts, such as planting an olive orchard in 2025, to enhance resilience against market changes.

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Capital Allocation Decisions for Tejon Ranch (TRC)

Share Issuance

• Tejon Ranch Co.'s outstanding shares were 26,893,955 as of July 31, 2025, and October 31, 2025. This is a slight increase from 26,822,768 shares outstanding at December 31, 2024.
• Additional paid-in capital saw minor increases, from $348,497 thousand at December 31, 2024, to $349,604 thousand at September 30, 2025.

Capital Expenditures

• Year-to-date capital expenditures as of September 30, 2025, were $49,393,000, with real estate held for lease increasing to $59,679,000, reflecting investments in multifamily and industrial projects.
• For the first six months of 2025, capital expenditures for real estate development totaled $37,146,000, including $22,850,000 for the construction of Terra Vista at Tejon and $5,663,000 for infrastructure improvements at TRCC-East.
• The company also spent $9,519,000 to acquire water assets during the first six months of 2025, and net investment in water assets increased to $63.85 million year-to-date 2025.