On August 19, 2024, Maui Land & Pineapple Company, Inc. (NYSE: MLP) reported financial results covering the three-month period ended June 30, 2024.
“Maui Land & Pineapple Company’s mid-year results reflect positive momentum as we activate our vast portfolio of prime assets into productive use, thus supporting improved economic stability for the company and value creation for shareholders. With our mission of meeting the critical needs of our Maui community, combined with a profound sense of urgency, our team is focused on supporting local businesses and improving the quality of life on Maui,” said CEO, Race Randle.
Second Quarter 2024 Highlights:
Business Segment Results:
Real Estate
Land sales revenue increased by $181,000 year-over year. This growth was driven by the sale of a non-strategic parcel in West Maui, with additional parcels currently being marketed to generate further cash flow in support of strategic land improvements.
Real estate-related operating costs also increased by $37,000 year-over-year due to ongoing land improvement projects.
Leasing
Occupancy across MLP’s commercial properties increased by 24%, reflecting the company’s success in actively leasing its portfolio. Leasing revenues rose by $70,000 to $4,388,000 year-to-date, indicating a recovery in percentage rents and a return to pre-wildfire levels of tourism activity.
Cash spent on tenant improvements at commercial centers totaled $595,000 in the first half of 2024, with further capital improvements planned to support profitable lease-up of town centers.
Resort Amenities and Other
Revenue from resort amenities, including the Kapalua Club, grew by $107,000 year-over-year, thanks to operational improvements and new membership enrollments.
Overall Results:
Total operating revenues increased by $358,000 year-over-year due to increases in real estate, leasing and resort amenities.
Operating costs and expenses totaled $8,409,000, an increase of $925,000 compared to the same period last year. This is primarily due to non-cash share-based compensation and higher costs associated with leasing vacant commercial spaces.
Net loss was $3,247,000 or $0.17 per common share, driven by non-cash expenses related to share-based compensation and post-retirement expenses.
Adjusted EBITDA (Non-GAAP) was $251,000.
Cash and liquid investments convertible to cash totaled $6,960,000, a decrease of $1,875,000 compared to December 31, 2023, attributable to the strategic investments in the company’s commercial properties and land improvements aimed at enhancing asset productivity.
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