Alico 3Q Revenue Jumps on Booming Land Management Strategy – Quarterly Update Report

New Lease Structure Broadens Land Monetization Strategy; Stronger Liquidity Extends Runway Through FY29

• Key Takeaways:

  • 3Q FY26 reinforced ALCO's post-citrus transition, with gross rising 7.7% y/y to $9.0 cardinal arsenic land-management activities became the superior gross source.

  • ALCO broadened its onshore monetization strategy with a caller cultivation lease covering astir 3,280 acres successful Hendry County that includes a lessee-held acquisition enactment initially valued astatine $29.5 million.

  • Corkscrew Grove East Village continues to de-risk, advancing into authorities and national permitting aft section approval, with imaginable operation opening successful 2028 oregon 2029.

  • Liquidity and net visibility improved, with $55.6 cardinal of cash, $29.8 cardinal of nett debt, FY26 adjusted EBITDA guidance raised to astir $15 million, and runway extended done FY29.

  • Valuation remains supported by $9,000-$9,761/acre transaction grounds versus $4,000-$5,000/acre cultivation assumptions, with further upside tied to entitlement progress.

• 3Q FY26 results progressively reflected ALCO's post-citrus operating model, with the gross basal present centered connected land-management activities. Revenue accrued 7.7% y/y to $9.0 cardinal from $8.4 million, arsenic Land Management and Other Operations gross roseate to $7.9 cardinal from $0.6 million, much than offsetting the 85.6% diminution successful Alico Citrus gross to $1.1 cardinal from $7.8 cardinal pursuing completion of the last important citrus harvest. Net income improved to $2.1 cardinal from a nonaccomplishment of $18.3 cardinal y/y, portion adjusted EBITDA was $4.6 cardinal and FY26 guidance was raised to astir $15 million. Beginning successful 3Q FY26 (q/e June 30, 2026), ALCO besides moved to a azygous reportable conception pursuing important completion of the citrus wind-down, providing a structural marker that the citrus wind-down is substantially implicit and the fiscal reporting progressively reflects execution of the land-focused model.

  • The gross premix has shifted decisively toward onshore management. Land Management and Other Operations represented astir 88% of 3Q FY26 revenue, versus astir 7% successful 3Q FY25, erstwhile Alico Citrus accounted for astir 93% of revenue. The displacement progressively positions lease income, royalties and different land-management activities arsenic the halfway operating gross base, with citrus present representing lone a residual publication to consolidated results.

  • The underlying lease basal is besides providing greater visibility beneath the much episodic quarterly gross profile. ALCO recognized $456,000 of basal lease income and $6.7 cardinal of adaptable lease income during 3Q, including astir $6.6 cardinal tied to crop-insurance proceeds received by a lessee, portion rock-and-sand royalties contributed different $429,000. The 4th highlights the economical flexibility of ALCO's lease structures, though the important adaptable lease publication means the $9.0 cardinal consolidated gross level should not beryllium viewed arsenic a normalized quarterly tally rate.

• A cardinal strategical improvement is ALCO's caller cultivation lease covering astir 3,280 acres successful Hendry County. The lease commenced July 1, 2026, and initially runs done June 30, 2027, with the lessee holding the close to widen it for an further 10 years. More importantly, the statement includes an enactment to get astir 3,280 acres for $29.52 million, oregon $9,000 per acre, if exercised by June 30, 2029, taxable to yearly escalation and definite acreage adjustments; an extended lease would propulsion the enactment play done June 2031. Rather than choosing betwixt leasing and selling the plus today, ALCO tin truthful make cultivation income portion preserving vulnerability to aboriginal land-value realization.

  • We presumption the lease operation arsenic an enlargement of ALCO's land-monetization toolkit portion improving recurring gross visibility. ALCO tin cod rental income portion retaining ownership unless the lessee exercises its acquisition option, creating imaginable aboriginal monetization without requiring improvement risk. Contracted minimum basal rentals full $16.6 cardinal aft June 30, including astir $1.9 cardinal successful FY27. Approximately 98% of ALCO's farmable acreage besides remains leased, supporting utilization of the existing onshore basal arsenic ALCO expands recurring land-management revenue.

• Recent transaction pricing continues to enactment upside to our cultivation onshore assumptions. The caller acquisition enactment is initially priced astatine astir $9,000 per acre, portion ALCO sold 3,546 acres during the archetypal 9 months of FY26 for $34.6 million, oregon astir $9,761 per acre. Both beryllium materially supra the $4,000-$5,000-per-acre assumptions utilized successful the cultivation constituent of our valuation framework. The wide consistency betwixt caller realized pricing and the caller enactment worth provides further grounds that these assumptions permission meaningful country for upside arsenic further acreage is monetized. While values volition alteration by location, infrastructure and improvement potential, the latest transaction grounds supports upside to blimpish portfolio assumptions.

• Corkscrew Grove East Village has moved beyond the section entitlement milestone achieved successful April and into the authorities and national permitting phase, progressively reducing the regulatory discount embedded successful ALCO's largest improvement asset. Corkscrew Grove Villages encompasses astir 4,660 acres and is planned arsenic 2 master-planned villages supporting astir 9,000 homes, including astir 750 affordable units, and astir 480,000 quadrate feet of commercialized uses. More than 6,000 surrounding acres are expected to participate imperishable conservation. Following Collier County approval, the remaining process includes permits from the South Florida Water Management District, U.S. Army Corps of Engineers and U.S. Fish and Wildlife Service, with operation perchance opening successful 2028 oregon 2029 if approvals are obtained.

  • Importantly, ALCO is already backing selected enabling infrastructure without taking connected the economics of afloat vertical development. The institution precocious $5.1 cardinal to the Corkscrew Grove Stewardship District for the wildlife crossing associated with the project; that receivable accrues involvement astatine 5% and whitethorn yet beryllium repaid done a territory enslaved issuance oregon onshore merchantability to developers. The operation allows ALCO to beforehand entitlement and infrastructure portion limiting nonstop vulnerability to the longer-term improvement burden. The adjacent meaningful valuation catalysts are truthful authorities and national permits alternatively than near-term homebuilding activity.