Tejon Ranch Co

Greetings and welcome to the Tejon Ranch Company fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. If anyone wants to require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Nick Ortiz, Senior Vice President of Corporate Communications. Please go ahead.

Good afternoon, and welcome to To Home Ranch Company's fourth quarter 2025 earnings call. My name is Nick Ortiz. Joining me today are Matt Walker, President and CEO, and Robert Velasquez, Senior Vice President and Chief Financial Officer. Today's press release, 10K, and this webcast are available on our Investor Relations website. A replay will be posted after we conclude. That site is ir.tohomeranch.com. Today's remarks may include forward-looking statements. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. These factors are detailed in our SEC filings, including our most recent forms 10Q and 10K. We assume no obligation to update any forward-looking statements. We may reference non-GAAP measures. These measures should be considered in addition to, not as a substitute for, GAAP results. Reconciliations to the most directly comparable GAAP measures and reasons why we use non-GAAP are included in today's filings and are posted on our website, again, ir.tohoneranch.com. After prepared remarks, we'll address questions. Shareholders were invited to submit questions by email in advance. With that, I'll turn the call over to Matt.

Good afternoon. I'm Matt Walker, President and CEO of Tohon Ranch Company. Thank you for joining us. But this, our second earnings call, will be used in the same format as last November. I'll share my perspective and turn it over to our CFO, Robert Velasquez, who will cover our financials, and then we'll answer questions. As we did last quarter, we'll be answering each shareholder question that is asked. So, moving on to this quarter, I'd like to talk about where we've been and where we're headed. For the quarter, our operating income was up compared to the fourth quarter of 2024, while our net income was down. Our net income reflects one-time proxy defense costs, but our overall operating performance was strong, which we'll explain as we go through our segments. For the year, our $49.6 million in revenue and $24.2 million in adjusted EBITDA both improved over 2024. Our company's economic driver remains our commercial real estate business. Commercial revenue was up $1 million for the quarter and $3.5 million for the year, led by two land sales, one of which was a hotel site and the second, a back-end payment on our Nestle transaction from 2025. In farming, we had one of the stronger years in recent memory, and this was supported by an on-bearing year for pistachios. Farming revenue was up 20% over the same quarter last year and up nearly 26% annually. I'm pleased to report that our farming revenues were the highest in a decade. Income from our joint ventures was down for the quarter and down for the year. While our industrial real estate JVs performed well, our travel center JV with TA Petro was impacted by reduced car and truck traffic on Interstate 5. This led to lower fuel sales and fuel margins, as well as lower sales on our travel centers and restaurants. On the positive side, we have seen encouraging signs from the outlets of Tejon. with December generating the highest retail sales of any month since we opened in 2014. There are many factors in play, but among them is the positive impact of the new Hard Rock Tejon Casino, which opened in mid-November. So far, the casino's impact has been extremely encouraging, and we look forward to further positive benefits from the casino in 2026. Last fall, I talked about commitments made by the Board with respect to corporate governance. Today, I'm pleased to report that our board is delivering on those commitments. First, as I hope you saw this morning, we filed an 8K announcing our proposal to provide shareholders with a right to call special meetings. We are proposing that our shareholders or groups of shareholders owning at least 25% of the outstanding shares can call for a special meeting. Our proposal is consistent with the majority of public companies, and we think it better aligns us with our shareholders. Shareholders will be able to vote on this proposal as part of their proxy ballot prior to the annual meeting in May. Second, I have spoken in the past about our board size and composition. We filed an 8K earlier this month announcing the decision by our board to reduce in size from 10 to 9. Also, the board decided that two board members in the event that they are elected this May would step down by May 2027, which would bring our board size down to 7. In addition, as part of our board size reduction, the board voted to eliminate our executive committee. These changes reinforce that our board is committed to positive governance change. Next, we will be holding our annual meeting on-site at the ranch on May 13th. We invite each of our shareholders to attend. We'll also provide an opportunity for our shareholders to attend virtually. It will be a good opportunity to see our assets up close. also a chance to spend time with our management team and board. Following the annual meeting, we'll be hosting tours of the ranch, including the Tejon Ranch Commerce Center, the Terra Vista apartment community, and the Hard Rock Tejon Casino. We hope you can join us. Registration information will be provided with your proxy statement. Last year, we completed a number of cost-saving measures. Looking ahead, I want to communicate that we're not done yet. We're continuing to streamline our operations and have targeted an additional million dollars of overhead savings by the end of 2027. When you add all of this up, our operating business is showing signs of positive momentum. However, I want to emphasize that cost improvement alone is not our only goal. As a company, we must put more of our assets to work, generating higher cash flow, producing more earnings, and increasing value for our shareholders. I've described my first year at the company as setting the table. This consisted of taking a close look at all aspects of the business, formulating a strategy, and then communicating that strategy to the market. This year, we are working on activating those plans. Right now is an exciting time for the company as we look to grow our revenue base and realize the benefits of our cost savings to drive more earnings growth. With all this as a backdrop, I would like to turn over the mic to our Chief Financial Officer, Robert Velasquez, correlate financials. Robert?