Maui Land & Pineapple Co., Inc. (MLP) reported its financial results for the first quarter of 2025. The company’s revenue was $43 million, with a net loss of $0.0001 per share. MLP’s Land Development and Sales segment reported a $1.6 million equity method investment as of March 31, 2024, and a $42,000 equity method investment as of March 31, 2025. The company’s cash and cash equivalents decreased to $19.7 million as of March 31, 2025, from $19.6 million as of December 31, 2024. MLP’s total assets were $266.6 million as of March 31, 2025, and its total liabilities were $15.75 million. The company’s prime rate was 6.02% as of March 31, 2025.
Overview
Maui Land & Pineapple Company, Inc. is a Delaware corporation that owns and manages over 22,000 acres of land on the island of Maui, Hawaii, along with approximately 247,000 square feet of commercial real estate. The company has a diverse portfolio of unimproved land, entitled land for residential and mixed-use construction, and completed commercial properties.
In April 2023, the company appointed a new Chief Executive Officer and Chairperson of the Board, who have experience in large-scale real estate portfolio management. The new leadership team has strengthened the company’s team with additional members experienced in planning, engineering, permitting, community development, land and natural resource stewardship, and asset management.
The company’s strategic plan aims to maximize the productivity of its leasable land and commercial properties. As of March 31, 2025, the company’s commercial properties and land were occupied at the following levels:
Commercial Real Estate | Total Sq. Ft. | Leased Sq. Ft. | Percent Leased | Net Increase (Decrease) in Leased Area (2024) |
---|---|---|---|---|
Industrial | 168,880 | 142,153 | 84% | 8,591 |
Office | 10,105 | 10,105 | 100% | 40 |
Retail | 61,004 | 56,312 | 92% | (5) |
Residential | 7,339 | 3,000 | 41% | - |
Total CRE | 247,328 | 211,570 | 86% | 8,626 |
Land | Total Acres | Leased Acres | Percent Leased | Net Increase (Decrease) in Leased Area (2024) |
---|---|---|---|---|
Commercial/Industrial | 19 | 19 | 100% | - |
Residential | 866 | 12 | 1% | - |
Agriculture | 10,356 | 4,653 | 45% | 1,026 |
Conservation | 11,045 | - | 0% | - |
Total Land | 22,286 | 4,684 | 21% | 1,026 |
The company has recognized revenue from one non-strategic parcel sale in the first quarter of 2025 and anticipates additional near-term sales revenues from other remnant parcels and improved land in active marketing. Unimproved land in active planning and improvements will likely require three or more years before improvements are completed and revenue generation is realized.
The company has also initiated a new scalable business venture to cultivate agave, a drought-tolerant, low-maintenance crop with growing global demand. This strategy complements the company’s ongoing leasing and development projects and utilizes its prime landholdings to enable revenue upside potential from vertical integration with on-island distillation, regenerative agri-tourism, and global distribution.
Results of Operations
Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
CONSOLIDATED | | Three Months Ended March 31 | | | 2025 | 2024 | | | (in thousands) | | Operating revenues | $5,804 | $2,483 | | Segment operating costs and expenses | $(4,299) | $(1,694) | | General and administrative | $(1,517) | $(1,057) | | Share-based compensation | $(1,581) | $(959) | | Depreciation | $(186) | $(172) | | Operating loss | $(1,779) | $(1,399) | | Gain on asset disposal | 1 | - | | Other income | 105 | 104 | | Pension and other postretirement expenses | $(6,919) | $(78) | | Interest expense | $(48) | $(2) | | Net loss | $(8,640) | $(1,375) | | Net loss per Common Share - Basic and Diluted | $(0.44) | $(0.07) |
LAND DEVELOPMENT AND SALES | | Three Months Ended March 31 | | | 2025 | 2024 | | | (in thousands) | | Operating revenues | $2,298 | $- | | Operating costs and expenses | $(2,323) | $(266) | | Operating loss | $(25) | $(266) |
Land development and sales operating revenues primarily consist of the project revenue from the Honokeana Homes project. There were no sales of real estate during the three months ended March 31, 2025 or 2024, as the company continues to evaluate its commercial assets and land holdings to determine the best utilization.
Approximately $2.3 million was spent towards real estate development expenditures during the three months ended March 31, 2025 related to the Honokeana Homes project, and $266,000 in development expenditures were made during the three months ended March 31, 2024.
LEASING | | Three Months Ended March 31 | | | 2025 | 2024 | | | (in thousands) | | Operating revenues | $3,219 | $2,216 | | Operating costs and expenses | $(1,364) | $(992) | | Operating income | $1,855 | $1,224 |
Operating revenues from leasing activities for the three months ended March 31, 2025, were primarily comprised of $2.2 million from commercial, industrial, and agricultural leases, and the remaining $1.0 million was from licensing fees, water system sales, and grant revenue. The increase in operating revenues and costs compared to the prior year period reflects the company’s efforts to re-tenant, re-merchandise, and convert below-market leases to current market rates.
RESORT AMENITIES AND OTHER | | Three Months Ended March 31 | | | 2025 | 2024 | | | (in thousands) | | Operating revenues | $287 | $267 | | Operating costs and expenses | $(612) | $(436) | | Operating income (loss) | $(325) | $(169) |
This segment includes the operations of the Kapalua Club, a private club that provides members access to certain resort amenities. The increase in operating revenues was due to new memberships being sold, while the increase in operating costs was primarily due to bad debt write-offs.
GENERAL AND ADMINISTRATIVE COSTS, SHARE-BASED COMPENSATION General and administrative costs and share-based compensation for the three months ended March 31, 2025 amounted to $3.1 million, compared to $2.0 million for the three months ended March 31, 2024. The increase was primarily due to higher share-based compensation expenses related to option grants and cancellations.
LIQUIDITY AND CAPITAL RESOURCES The company had cash and cash equivalents of $7.9 million and $6.8 million (audited) at March 31, 2025 and December 31, 2024, respectively. It also had investments in a bond fund of $1.6 million and $2.7 million at those respective dates.
The company has a $15 million revolving line of credit facility with First Hawaiian Bank, of which $12 million was available at March 31, 2025. The company was in compliance with the covenants of this credit facility at March 31, 2025.
The company believes its cash, investments, cash from operations, and available borrowings will provide sufficient liquidity to meet its working capital requirements, contractual obligations, and debt obligations for the next twelve months and the foreseeable longer term.
Critical Accounting Policies and Estimates The preparation of the financial statements requires the use of accounting estimates, which may have a material effect on the results. There have been no material changes to the critical accounting policies and key estimates and assumptions disclosed in the company’s Annual Report.