Alico, Inc. Aktie

Good morning, and welcome to Alico's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. Please go ahead, sir.

Good morning, everyone, and thank you for joining us for Alico's Second Quarter 2026 Conference Call. On the call today are John Kiernan, President and Chief Executive Officer; and Brad Heine, Chief Financial Officer. By now, everyone should have access to the second quarter 2026 earnings release, which went out yesterday at approximately 4:15 p.m. Eastern Time. If you've not had a chance to view the release, it's available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements. Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law. During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued yesterday. And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan.

Thank you, John, and good morning, good afternoon and good evening to everyone here on the call. Our second quarter results demonstrate continued execution of our strategy and our commitment to delivering on our near-term and long-term goals. With net income of $11.4 million, adjusted EBITDA of $16.9 million and cash of $52.9 million at quarter end, we've extended our financial runway through fiscal '28 while maintaining the flexibility to advance our development initiatives. Let me walk through the key accomplishments during and subsequent to the quarter. First, we closed a $26.9 million land sale in January. This transaction involved approximately 2,950 acres and generated a gain of approximately $19.8 million, bringing our year-to-date land sales to $34.6 million. The transaction reflects the strong demand for our Florida properties and validates our land monetization strategy. Our land portfolio continues to attract qualified buyers seeking prime agricultural and development-ready properties across Southwest Florida's growth corridors. With approximately 46,000 acres remaining in our Florida portfolio, we believe our diversified holdings provide continued opportunities for strategic land monetization that balances near-term cash generation with long-term development optionality. Second, we deployed $10 million through our 10b5-1 share repurchase program, acquiring 245,399 shares through April. This reflects our balanced approach to capital allocation and our confidence in the embedded value within our portfolio. We continue to assess optimal capital allocation decisions, including potential additional share repurchases, dividends and strategic investments in our development pipeline, as we execute our value creation strategy. Third and most significantly, in late April, we received unanimous approval from the Collier County Board of Commissioners for Corkscrew Grove East Village. This local entitlement represents a meaningful regulatory milestone for what we believe has the potential to be a significant development project for Southwest Florida.

The approved East Village encompasses 1,446 acres and authorizes up to 4,502 dwelling units, including 362 affordable housing units for essential workers and approximately 238,000 square feet of neighborhood scaled retail and office space. The project aligns with Collier County's rural land stewardship area program and reflects our commitment to responsible development that balances growth with conservation.

Corkscrew Grove East Village will enhance public infrastructure while permanently protecting thousands of acres of sensitive land and restoring wetlands and uplands to native habitat. As part of this plan, Alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers. The project reflects our emphasis on connected open space, preservation and restoration and landscape scale habitat connectivity. With local approvals now secured, we're focusing on working closely with the South Florida Water Management District, the U.S. Army Corps of Engineers and the U.S. Fish and Wildlife Service to continue to show that this project is thoughtfully planned, environmentally responsible and aligned with all requirements necessary to secure state and federal permits. We remain on our time line of expected state approval by early 2027 and federal approval by the end of 2028, keeping us on track for potential construction commencement in 2028 or 2029. And fourth, our diversified land utilization strategy continues to perform as intended. Approximately 97% of our farmable acres now generate revenue through agricultural partnerships with citrus growers, farmers, cattle ranchers, mining companies, sugarcane producers and sod farming operations. These programs reduce operational complexity while maintaining agricultural use of our land. I'm also pleased to announce that Eric Speron joined our Board of Directors this quarter. Eric brings proven expertise in real estate and finance from his work at First Foundation and previously at JPMorgan. He currently serves on the Board of Kiwina Land Association and Tejon Ranch Company, and his experience will be valuable as we advance our development pipeline. Our development pipeline continues to advance with Parks Corkscrew Grove Villages, Bonnett Lake, Saddlebag Grove and Plant World, which total a total of 5,500 acres, maintain their estimated present value of between $335 million and $380 million, which we expect to realize within the next 5 years. This represents significant value creation potential from just 10% of our land holdings. Our balance sheet is strong with $52.9 million in cash at quarter end and $92.5 million of available borrowing under our line of credit, we have the financial resources to execute our strategy. That cash positions -- that cash position extends our runway through fiscal 2028, giving us the time and flexibility to advance our development projects on our time line, not driven by liquidity constraints. In addition, because of our strategic decision to exit the citrus business, we have now dramatically improved our operating cash flow and essentially removed the current headwinds of fuel and fertilizer costs facing many industries today. Management's NPV analysis of our approximately 46,000 acres indicates asset value between $650 million and $750 million. With our current market capitalization and net debt of approximately $32.6 million at quarter end, we believe Alico represents value for investors seeking exposure to Florida's growth. What differentiates Alico is our combination of strategic land holdings across 7 Florida counties, more than 125 years of local relationships and conservation credibility, a management team with expertise in both agriculture and real estate development and a balanced portfolio approach with 75% of our land continuing in agricultural use. Our priorities for fiscal 2026 remain unchanged. Optimize agricultural operations by maximizing revenue from diversified leasing programs while maintaining cost controls, advance our development projects through the entitlement process with particular focus on securing remaining approvals for Corkscrew Grove Villages, balance required entitle investments with shareholder returns while maintaining financial flexibility and to pursue operational excellence by leveraging our experienced team and local relationships to execute efficiently. The foundation is in place. The Collier County approval represents meaningful progress, and we're positioned to advance through the remaining permitting processes. Our balance sheet and revenues from diversified agricultural operations provide the resources to execute our strategy. And with that, I'll turn it over to Brad Heine, who will walk through our detailed financial results.

Thank you, John, and good morning, everyone. I'll walk you through our second quarter fiscal 2026 financial results and provide additional details on our financial position. For the 3 months ended March 31, 2026, we reported total revenue of $5.3 million compared to $18 million in the prior year period. For the 6-month period ended March 31, 2026, we reported total revenue of $7.2 million compared to $34.9 million in the prior year period. Looking at our business segments, the Alico citrus results reflect the ongoing wind-down of citrus operations that began in 2025. Revenue decreased significantly as expected, while cost of sales declined correspondingly. We completed our last significant citrus harvest in April 2025. And while we may see some residual activity during the wind-down period, the reduced scale demonstrates our successful exit from capital-intensive citrus production. Land management and other operations revenue increased 113% in the quarter, driven by farm lease and Sod revenue as we shift our focus to diversified land usage. For the 6 months ended March 31, 2026, revenues increased 97%, primarily from farm lease revenue, rock and sand royalties and Sod revenue. Our diversified programs now utilize approximately 97% of our roughly 32,500 farmable acres, representing approximately 89% of our total 46,000 agricultural acres. Our net income attributable to Alico common stockholders for the 3 months ended March 31, 2026, was $11.4 million or $1.49 per diluted share compared to a net loss of $111.4 million or $14.58 per diluted share in the prior year period. The improvement was principally driven by the wind-down of our citrus operations and the $26.9 million land sale we closed in January. We achieved positive EBITDA of $16.7 million for the 3-month period ended March 31, 2026, compared to negative $14.7 million in the prior year period, a $31.4 million improvement. Our adjusted EBITDA was $16.9 million for the 3-month period ended March 31, 2026, compared to $12.7 million last year. This positive EBITDA generation validates the cash-generating capability of our transformed operating model. From a balance sheet perspective, we continue to demonstrate financial strength. Cash and cash equivalents at quarter end were $52.9 million, up from $38.1 million at fiscal year-end. This increase reflects the $26.9 million land sale in January, partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash. Working capital was $52.2 million with a current ratio of 9.63:1, while total debt was $85.5 million and net debt was $32.6 million at quarter end compared to $85.5 million and $47.4 million, respectively, at fiscal year-end. Available borrowings under our credit facility were approximately $92.5 million, and our minimum liquidity requirement was $5.8 million, providing substantial financial flexibility. Through April 2026, we repurchased 245,399 shares for $10 million through our share repurchase program, demonstrating our commitment to returning capital to shareholders when we see value. We are maintaining our 2026 guidance for adjusted EBITDA of approximately $14 million, and we are updating our year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million, reflecting the $10 million share repurchase program completed through April 2026. We expect to end the fiscal year with only the minimum required balance of $2.5 million on our revolving line of credit. The fundamentals are working as intended. We're generating cash flow from diversified land usage while maintaining optionality to pursue higher-value development opportunities. The Tiger County Pool Corkscrew Grove East Villages represents meaningful progress and our balance sheet provides the resources to advance through the remaining permitting processes. Now I'd like to turn the call back to John for his closing remarks.

Thank you, Brad. Before we open the call to questions from research analysts, I want to emphasize a few key points. First, Alico is delivering on what we committed to do. The land sales, the share repurchases, the entitlement approvals, the high land utilization rates we've achieved really demonstrate a consistent execution of our strategy. Second, our financial position provides the runway and flexibility to advance our development projects. The extension of our cash runway through fiscal '28 gives us the time to maximize value from our regulatory process and development pipeline. Third, our business model is working. We've created multiple revenue streams through land leasing and management while advancing high-value development projects that we believe will generate substantial returns over the next 5 years. We're very pleased to have received unanimous approval from the Collier County Board of Commissioners for Corkscrew Grove East Village. We remain on our time line of expecting state approval by the end of 2026 or '27 and federal approval by the end of 2028, keeping us on track for potential construction commencement in 2028 or 2029. And finally, we remain focused on responsible land stewardship and conservation. Wildlife Underpass partnership with the Florida Department of Transportation and our commitment to preserving more than 6,000 acres of conservation areas for the entire Corkscrew Grove Villages project reflects our values and differentiate Alico in the development community. Katie, we will now open the call for questions.[Operator Instructions]

Our first question will come from Gerry Sweeney with ROTH Capital.

Bill, congrats on the Collier County approval of Corkscrew Ranch. You also laid out the next sort of, I guess, hurdles for the state and federal approval. However, I wanted to discuss with you, and I understand that it could be early, if you have gone or reviewed how you'll develop Corkscrew Ranch, whether or not you'll partner with somebody, do it yourself, et cetera. And again, I know it may be a little bit early for that question, but I figured to ask it.

It's a highly relevant question. We've been discussing it publicly over the last 2 years. And right now, our answer has not changed, but certainly, the time horizon is starting to shrink a little bit. Alico still reserves the optionality to sell the land outright once it's entitled for entitled value to national or local homebuilders. We reserve the right to actually partner with these homebuilders at the same time where we would get a little money upfront and then share as the development progresses over time or Alico reserves the right to potentially bring in-house capabilities inside and basically develop this ourselves. Right now, we continue to have meetings in a number of those areas. And clearly, in the next year or so, we will probably have to commit to one path or another. But it really is going to depend on a number of factors. That would be the timing of the approval process and the success that we have on staying on the 2027 and the 2028/'29 approvals and also kind of what the market bears. We have a very, very good team in-house, but we really are not construction experts. But this is a prime location. It is a very well thought-out plan. I think the approvals that we got at the local level reflect the fact that it's been very thoughtful, and we think it's highly marketable. But at this point, we have nothing to announce on which path we're continuing to go down.

Got it. That's helpful. And so within a year, so it's getting close -- so I appreciate that. Separately, obviously, nice land sale in January, by my math, a little over $9,100 per acre. I think you have about 46,000 acres left, you said. And some of that is Corkscrew Grove and Bonnet Lake and some other maybe potentially developable land. How much shall we say, maybe for lack of a better word, I know agricultural land or the sand land is available for sale? And that $9,000 per acre number is up considerably from 5, 6, 7 years ago. How much could you get for that remaining land, understanding that maybe some of -- not all land was created equal and some have different value scenarios?

Sure. We ask that you give us another week. We're going to be seeing an investor conference next week, and we will give you a more detailed breakdown of kind of the buckets that we previously had discussed for what management believes is potentially their net present value. However, we just reiterated it, we think the entire portfolio, which is now 46,000 acres instead of the 50,000 plus that we had 2 years ago, is still worth between $650 million and $750 million, and that is supported primarily by the large percentage of acres that will be tied to agricultural for the long term, simply because the price point we had said previously was between $4,000 and $5,000 per acre. And the trades that we've done over the last year and change have been in the $9,000 range. We can't say that the portfolio is worth $9,000. We're not saying that at all. We're continuing to actually be conservative. And we -- again, beg your indulgence, but when we come out with our revised investment presentation next week, we should have a detailed slide that will break that out in detail.

So in other words, that $650 to $750 was using $4,000 to $5,000 per acre. Some of the land -- some -- not all that land has probably increased. So the average price may have increased is what you're saying?

Correct. That is correct. And we put that out as an analysis. We don't think we're making that up.

Got it. And then one last question. Obviously, you have local approval, you have state approval, federal approval, you laid that out. You discussed that development path are going to go down over the course of the next year. Any other major sort of steps, milestones that we should be aware of over the next couple of years? Or do you think that's the majority of them?

I mean, as far as Corkscrew Grove, East Villages, it's -- you actually hit the third point, which is making a decision on how potentially we would monetize this on behalf of the shareholders would be kind of the next big news item outside of the state approval and the federal approval for that.

This concludes our Q&A session. I'll now turn the call back over to John Kiernan for any final or closing remarks.

Thank you, Katie. And to everyone, we really appreciate your continued interest in Alico. We look forward to updating you on our progress in the quarters ahead. We hope to talk to you again in August. Have a good day.

Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Good morning, and welcome to Alico's First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us for Alico's First Quarter 2026 Conference Call. On the call today are John Kiernan, President and Chief Executive Officer; and Brad Heine, Chief Financial Officer. By now, everyone should have access to the first quarter 2026 earnings release, which went out yesterday at approximately 4:15 p.m. Eastern Time.

If you've not had a chance to view the release, it's available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied in these statements. Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release.

The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law. During this call, the company may also disclose non-GAAP financial measures, including EBITDA, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued yesterday.

And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan. Please go ahead, John.

Thank you, John. Good morning, everyone, and thank you for joining us for Alico's First Quarter 2026 Earnings Call. We are very pleased with our first quarter results and subsequent transactions we achieved in the first month of our second fiscal quarter. We believe this momentum and our enhanced business model in action validates our land monetization and utilization strategy.

Let me highlight a few specific achievements in our first quarter and subsequent events. First, in the first quarter, we generated $7.7 million in land sales, reflecting the strong demand for our strategically located Florida properties. Second, our net loss improved to $3.5 million from a loss of $9.2 million in the prior year period, and we generated positive EBITDA of $2.4 million compared to negative $6.7 million in the prior period, demonstrating the financial stability we've built through this transformation.

Third, with our strengthened balance sheet holding $34.8 million in cash at first quarter end and reduced operating complexity, we believe we are financially very well positioned to execute on our near- and long-term plan. Fourth, Alico entered into a 10-year lease with Bayer Crop Science to establish an agricultural research station on 100 acres on our TRB property located in Charlotte County. And subsequent to quarter end, following the signing of new lease agreements in January, Alico has achieved 97% utilization of our approximately 32,500 farmable agricultural acreage.

Lastly, also after quarter end, we closed on an additional sale of a large citrus Grove, representing approximately 2,950 acres for $26.8 million, leaving us within an approximately 46,000-acre Florida portfolio. We believe these results and transactions demonstrate that Alico has a business model that will continue to unlock substantial value from its land portfolio while maintaining our commitment to responsible land stewardship.

As we look forward, our development pipeline continues to advance on schedule with Corkscrew Grove Villages leading the way as the crown jewel of our portfolio. The establishment of the Corkscrew Grove Stewardship District represents a significant regulatory milestone that validates our development strategy and provides the framework for sustainable community-focused growth. This stewardship district, approved unanimously by the Florida legislator positions us to effectively finance infrastructure, restore and manage natural areas and oversee the administration of our master planned communities. I'm particularly excited to highlight our previously announced strategic partnership with the Florida Department of Transportation to design and construct a wildlife underpass as part of the State Road 82 expansion.

This $5 million investment demonstrates our commitment to Florida Wildlife and showcases the innovative conservation approach that sets Alico apart in the development community. We remain on track for an anticipated final decision from Collier County in 2026 with potential construction for Florida for Corkscrew Grove Villages beginning as early as 2028. Collectively, our 4 near-term real estate development projects, Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove and Plant World, totaling approximately 5,500 acres, maintain their estimated present value of between $335 million and $380 million, which we hope to be realized within the next 5 years. This represents significant value creation potential from just 10% of our land holdings, demonstrating the substantial embedded value within our diversified portfolio.

As you can see from the first quarter results and achievements, our approach creates the best of both worlds. With approximately 25% of our land identified for strategic development and 75% remaining for diversified agriculture, we've built a balanced platform for both near-term returns and long-term growth. We believe it is important to emphasize our commitment to returning capital to shareholders, especially as we achieved positive EBITDA for the quarter and generate approximately $34.5 million in recent land sales.

Since 2015, we've returned more than $190 million to shareholders through dividends, share repurchase and voluntary debt reduction. Going forward, we continue to evaluate the best use of capital to enhance shareholder value. Management's comprehensive NPV analysis of our approximately 46,000 acres indicates a market value of assets between $650 million and $750 million. With our current market capitalization of approximately $320 million and net debt of approximately $50.7 million at quarter end, we believe Alico represents compelling value for investors seeking exposure to Florida's continued growth story.

What differentiates Alico is our unique combination of strategic land holdings across 7 Florida counties, more than 125 years of local relationships and conservation credibility, a proven management team with deep expertise in both agriculture and real estate development and a balanced portfolio approach with 75% of our land continuing to be used for agricultural activities.

On our fourth quarter call, I listed our priorities for fiscal year 2026 to continue our transformation momentum. And today, we are reiterating those priorities. First, to optimize our agricultural operations by maximizing revenue from our diversified leasing programs while maintaining rigorous cost controls across all properties. We have made tremendous progress on this and now have approximately 97% of our farmable land leased.

Second, we remain committed to advancing our residential and commercial development projects by continuing to progress through the entitlement process for our 4 priority projects with particular focus on securing final approvals for Corkscrew Grove Villages. Third, our strategic capital allocation approach will balance required entitlement investments with shareholder returns while maintaining the financial flexibility necessary to execute on our long-term strategy.

And finally, to pursue operational excellence by leveraging our experienced management team and strong local relationships to execute efficiently across all these initiatives. As we enter our second fiscal quarter, our strengthened balance sheet, holding $34.8 million in cash as of December 31, 2025, the January 2026 land sale of $26.8 million and our reduced operational complexity highlight the fact that we continue to believe we are well positioned to advance along our high-value development road map.

The Corkscrew Grove Villages entitlement process remains on track for an anticipated 2026 decision by Collier County, and our balance sheet and revenues from our diversified agricultural operations provide the financial resources to execute our long-term strategy. We believe that Alico has a business model that unlocks substantial value from our approximately 46,000-acre Florida portfolio while maintaining our commitment to responsible land stewardship. The foundation is in place, and we're excited about the opportunities ahead.

With that, I'll turn it over to Brad Heine to walk through our detailed financial results, and then we'll be happy to take your questions. Brad?

Thank you, John, and good morning, everyone. I'll walk you through our first quarter fiscal 2026 financial results, which demonstrate solid execution of our business model and continued financial discipline. For the 3 months ended December 31, 2025, we reported total revenue of $1.9 million compared to $16.9 million in the prior year period. The decrease primarily reflects the substantial conclusion of our citrus business. Our Alico Citrus segment generated $0.9 million in revenue with a gross loss of $6.5 million compared to $16.3 million in revenue and an $8.8 million gross loss in the prior year. While we still had some residual citrus activities, the significantly reduced scale demonstrates our successful exit from the capital-intensive citrus production.

Land management and other operations revenue increased 77%, driven by higher rock and sand royalties and farming lease revenue. This growth reflects the diversified revenue streams we've established through our agricultural partnerships. Our net loss attributable to Alico common stockholders improved significantly to $3.5 million or $0.45 per diluted share compared to a net loss of $9.2 million or $1.20 per diluted share in the prior year period. This improvement demonstrates the financial benefits of our business model evolution.

Furthermore, we achieved positive EBITDA of $2.4 million compared to negative $6.7 million in the prior year period, a $9.1 million improvement. Our adjusted EBITDA was $2.7 million, also compared to negative $6.7 million last year. This positive EBITDA generation validates the cash-generating capability of our new operating model. Our balance sheet remains strong with $34.8 million in cash and cash equivalents at quarter end, providing excellent liquidity. The current ratio improved to 14.39:1, demonstrating exceptional financial flexibility.

Total debt remained stable at $85.5 million with net debt of $50.7 million at quarter end. We have $92.5 million available under our credit facility, and our minimum liquidity requirement is just $5.8 million, giving us substantial financial runway. Net cash used in operating activities improved to $5.5 million from $7.6 million in the prior year period, reflecting better operational efficiency. We generated $7.7 million from land sales in the quarter with a gain of approximately $4.9 million. Year-to-date through January 2026, we have achieved $34.5 million in total land sales, contributing to our strong liquidity position and validating our land monetization strategy.

Looking ahead to fiscal year 2026, I'm pleased to provide updated guidance that reflects our strong operational momentum and strategic positioning. We expect to deliver adjusted EBITDA of approximately $14 million for the full fiscal year, which represents a significant improvement from our historical performance and validates the cash-generating potential of our transformed business model. From a balance sheet perspective, we anticipate ending fiscal year 2026 in a strong liquidity position with approximately $50 million in cash. This will allow us to reduce our net debt to approximately $35 million by our fiscal year-end with only the minimum required $2.5 million balance remaining on our revolving credit facility.

I should note that these projections assume our current operational plan. However, our strong cash position and improving cash flow generation provide us with significant flexibility for potential capital allocation opportunities. Should we decide to return capital to shareholders during fiscal 2026 through increased dividends, special distributions, share repurchases or tender offers, our ending cash balance would naturally be lower and net debt correspondingly higher than these base case projections. This guidance reflects the financial stability that we've built through our strategic transformation and positions us well to fund both our ongoing operations and future development initiatives while maintaining the financial flexibility that's become a hallmark of our new business model.

Positive EBITDA generation in Q1, combined with our strong balance sheet, demonstrates that we've successfully built a financially stable platform for long-term value creation. The fundamentals of our business model are working as intended. We're generating cash flow from diversified land usage while maintaining the optionality to pursue higher-value development opportunities.

Now I'd like to turn the call back to John for his closing remarks.

Thank you, Brad. Our first quarter results demonstrate our commitment to continue utilizing all of our assets to enhance shareholder value. We have a balance sheet and operating structure that positions us extremely well to execute on our near- and long-term projects as we continue to unlock the value in our approximately 46,000-acre Florida portfolio. Management's NPV analysis values our land portfolio between $650 million and $750 million, yet we traded at approximately $313 million as of last night.

We believe this represents a significant valuation disconnect that we expect will close as we continue to execute on our plan. Alico today is fundamentally transformed. We are well capitalized, strategically focused and spread across Southwest Florida. With more than 125 years of Florida heritage, proven conservation leadership, 97% of our farmable land leased and a clear real estate development pipeline, we're very well positioned to deliver sustainable value creation.

Jamie, we'll now open the call for questions from industry analysts.

[Operator Instructions] We'll hear first from Gerry Sweeney with ROTH Capital.

But a couple of quick questions on Corkscrew. Well, I think an easy one first. The approval, are we thinking sort of -- you said 2026, -- do you have an idea if this is more of like a 3Q, 4Q type event? Or just any idea on maybe a little bit not better timing, but spotted timing when that could come through.

Yes. So we haven't pinned that down, but I would say from a fiscal year perspective, 3 or 4 is by the end of September. That is not an unreasonable assumption. But again, we don't really control local calendar.

That's fair. Yes. Got it. And then assuming approval, what are the key steps -- the next key steps for Corkscrew as you move forward between the approval process and shovels in the ground? And does that include potential partnerships with developers or builders and things like that?

Sure. I don't think those are mutually exclusive tracks. Conversations with national homebuilders and other developers happen as a regular course of business. So clearly, nothing has been negotiated or solidified, but we're acquainted with a lot of the national players. I think to be clear, local approval, state approval and then we need federal approval from the Army Corps of Engineers and Fish and Wildlife. We expect that the federal level will take the longest and nothing really happens until all those approvals are realized and a permit can be issued.

Got it. That makes sense. And then just switching over to the farmland opportunity. Obviously, I think you highlighted 97% utilization of farmland. Can you discuss or are you in a position to discuss what type of maybe cash flow that utilization rate could bring in as we look to model results going forward?

I appreciate that, that is a difficult task. At this point, we have not provided any additional forecasted information or giving any guidance. But Brad and I will take that request offline. And hopefully, next quarter, we might be able to give you a little more clarity.

And as there are no further questions in queue at this time, I'd like to turn the floor back over to Mr. Kiernan for any additional or closing comments.

Thank you, Jamie. I want to thank all of our employees for their dedication during this transition, particularly over the past weekend, where there was a significant freeze event over Florida, and we were doing our best to kind of cooperate with our neighbors to kind of maintain some of our properties. So thank you to our employees for really digging in. I also want to thank our Board for their continued support of our strategic vision and to you, our shareholders, for your patience and confidence as we execute this transformation. We look forward to updating you on our further progress on our second quarter earnings call. Have a good day.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may disconnect.

Good morning, and welcome to the Alico Fourth Quarter and Fiscal Year Ended 2025 Earnings Call. [Operator Instructions]. As a reminder, today's conference is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us for Alico's Fourth Quarter and Fiscal Year 2025 Conference Call. On the call today are John Kiernan, President and Chief Executive Officer; and Brad Heine, Chief Financial Officer.

By now, everyone should have access to the fourth quarter and fiscal year 2025 earnings release, which went out yesterday at approximately 4:15 p.m. Eastern Time. If you've not had a chance to view the release, it's available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well.

Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements.

Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law.

During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued yesterday. And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan.

Thank you, John. Good morning, everyone, and thank you for joining us for Alico's Fourth Quarter and Fiscal Year 2025 Earnings Call.

This has been a truly transformational year for Alico. We successfully executed on our strategic pivot from a traditional citrus producer to a diversified land company, positioning ourselves for sustainable long-term value creation while maintaining our deep commitment to conservation and responsible stewardship.

Fiscal year 2025 will be remembered as a milestone year in Alico's 125-plus year history. We delivered on the commitments we made to you, our shareholders, and demonstrated the disciplined execution that defines our approach to this transformation.

Let me highlight our key accomplishments. First, we successfully completed our final major citrus harvest, officially concluding our capital-intensive citrus production operations. This achievement represents the culmination of a carefully planned 12-month transition that we executed while maintaining day-to-day agricultural operations. Second, we exceeded our financial guidance across key metrics. We achieved $22.5 million in adjusted EBITDA surpassing our $20 million target. Our land sales of $23.8 million also exceeded a $20 million guidance, demonstrating strong demand for our strategically located properties.

Third, we strengthened our balance sheet significantly. We ended the year with $38.1 million in cash and reduced our net debt to $47.4 million providing us with the financial flexibility to fund operations through fiscal year 2027, while advancing our high-value development projects.

The takeaway accomplishment for 2025 is that we have essentially lowered the financial risk for the company by reducing the volatility of weather-dependent and disease-affected citrus agricultural operations by leasing land to other agricultural crop growers while maintaining the stability of diversified land usage.

Our development pipeline continues to advance on schedule with Corkscrew Grove Villages leading the way as the crown jewel of our portfolio. The establishment of the Corkscrew Grove Stewardship District represents a significant regulatory milestone that validates our development strategy and provides the framework for sustainable community focused growth. The Stewardship District approved unanimously by the Florida legislature positions us to effectively finance infrastructure, restore and manage natural areas and oversee the administration of our master planned communities.

I'm particularly excited about our strategic partnership with the Florida Department of Transportation to design and construct a wildlife underpass as part of the State Road 82 expansion. This $5 million investment demonstrates our commitment to the Florida Wildlife Corridor and showcases the innovative conservation approach that sets Alico apart in the development community. We remain on track for the final decision from Collier County in 2026 with potential construction for Corkscrew beginning as early as 2028.

The entitlement process -- I'm sorry, the entitlement progress with our Bonnett Lake property is also progressing well with our application moving through the review process as expected. Collectively, our 4 near-term real estate development projects Corkscrew Villages, Bonnett Lake, Saddlebag Grove and Plant World, totaling approximately 5,500 acres maintain their estimated present value of between $335 million and $380 million to be realized within the next 5 years. This represents significant value creation potential from just 10% of our land holdings, demonstrating the substantial embedded value within our diversified portfolio.

Our conservation legacy continues to be a cornerstone of our strategy. Over the past 40 years, we've transferred lands that have become part of major conservation areas, including the CREW, Tiger Creek Preserve, and the Okaloacoochee Slough Wildlife Management Area. The Corkscrew Grove Villages project will continue that legacy by placing no less than 6,000 acres into permanent conservation, supporting the implementation of the Florida Wildlife Corridor and Collier Rural land stewardship program.

We believe in responsible development that balances growth with conservation and believe it enhances the value and marketability of our development projects. Our approach creates the best of both worlds. With approximately 25% of our land identified for strategic development and 75% remaining for diversified agriculture, we've built a balanced platform for both near-term returns and long-term growth.

We've successfully negotiated lease agreements for approximately 5,250 acres with third-party citrus growers and we're seeing strong interest from cattle operators, sugarcane growers and [ soy ] producers. This diversified approach generates revenue during our transition and also maintains productive use of our agricultural lands while preserving optionality for future development or continued agricultural use.

Brad will provide detailed financial results in a moment. I want to emphasize our strong cash generation and disciplined capital allocation. The $20.4 million in crop insurance proceeds we received following Hurricane Milton, combined with our land sales, has created a robust liquidity position. We remain committed to returning capital to shareholders. We paid our fourth quarter dividend in October, maintaining our track record of consistent dividend payments. Since 2015, we've returned more than $190 million of capital through dividends, share repurchases and debt reduction.

Management's comprehensive NPV analysis of our approximately 49,000 acres indicates a market value of assets between $650 million and $750 million. With our current market capitalization of approximately $240 million and net debt of $47.4 million, we believe Alico represents compelling value for investors seeking exposure to Florida's continued growth story.

What differentiates Alico is our unique combination of strategic landholdings across 8 Florida counties, more than 125-plus years of local relationships and conservation credibility, a proven management team with deep expertise in both agriculture and real estate development and a balanced portfolio approach with 75% of our land remaining in agriculture.

Looking ahead into fiscal 2026, we've already demonstrated continued execution of our land monetization strategy. Earlier this month, we completed the sale of 579 acres of citrus land for approximately $6.1 million and sold our office and shop in Frostproof, for approximately $1.7 million, further optimizing our real estate portfolio while generating additional cash flow.

Our priorities for fiscal year 2026. To continue our transformation momentum, our first, to optimize our agricultural operations by maximizing revenue from our diversified leasing programs while maintaining rigorous cost controls across all properties. Second, to remain committed to advancing our residential and commercial development projects by continuing to progress through the entitlement process for our 4 priority projects with particular focus on securing final approvals for Corkscrew Grove Villages.

Third, our capital allocation approach will balance required entitlement investments with shareholder returns while maintaining the financial flexibility necessary to execute our long-term strategy. And finally, to pursue operational excellence by leveraging our experienced management team and strong local relationships to execute efficiently across all of these initiatives.

In closing, fiscal year 2025 was a year of successful transformation that positions Alico for sustainable long-term growth. We've derisked our business model, strengthened our balance sheet and created a clear path to unlock the significant value embedded in our land portfolio. Our approach of balancing specific high-value development projects with the diversified agricultural operations creates a business model that leverages our core strengths while adapting to market opportunities.

We're well-capitalized, strategically focused and positioned to deliver sustainable value creation. The foundation is in place, and we're excited about the opportunities ahead. With that, I'll turn it over to Brad to walk through our detailed financial results, and then we'll be happy to take a few questions.

Thank you, John, and good morning, everyone. I'll walk you through our fourth quarter and full fiscal year 2025 financial results, which demonstrate the successful completion of our strategic transformation.

For the fourth quarter ended September 30, 2025, revenue was $802,000 compared to $935,000 in the prior year quarter, reflecting the substantial conclusion of our citrus operations. We reported a net loss attributable to legal common stockholders of $8.5 million or $1.11 per diluted share compared to a net loss of $18.1 million or $2.38 per diluted share in the prior year quarter. This improvement was driven by the completion of our transformation activities and reduced operational complexity.

For the full fiscal year, revenue was $44.1 million compared to $46.6 million in fiscal 2024. While we reported a net loss of $147.3 million or $19.29 per diluted share, this was primarily due to noncash charges related to our strategic transformation including $162.7 million in accelerated depreciation and $25 million in asset impairments as we exited citrus operations.

Importantly, our adjusted EBITDA for fiscal 2025 was $22.5 million, exceeding our $20 million guidance target. This demonstrates the underlying operational strength of our transformed business model.

Our balance sheet transformation has been remarkable. We ended fiscal year 2025 with $38.1 million in cash and cash equivalents compared to just $3.2 million at the end of fiscal 2024. Our net debt decreased significantly to $47.4 million from $89 million, representing a $41.6 million improvement year-over-year. This strong liquidity position, combined with our $92.5 million available under our line of credit provides us with sufficient resources to fund operations through fiscal 2027, while advancing our development projects.

Our working capital ratio improved to 9.56:1 demonstrating exceptional financial flexibility. We exceeded our land sales guidance, generating $23.8 million in proceeds from 96 acres sold during fiscal 2025, surpassing our $20 million target. These sales, combined with our operational improvements have created the financial foundation for our next phase of growth.

Looking ahead, our financial position is strong, and we're well balanced to execute on our development pipeline while maintaining operational efficiency. Now I'd like to turn the call back to John for his closing remarks.

Thank you, Brad. Fiscal 2025 was truly transformational for Alico. We delivered on our commitments. We completed our final major citrus harvest, exceeded our financial guidance across key metrics and now have a balance sheet that provides the company with years of operational runway. Most importantly, we've eliminated citrus agricultural volatility while unlocking the value in our approximately 49,000 acre Florida portfolio.

Our path forward has been set, and we believe it is compelling. We're optimizing agricultural leasing across our entire portfolio, advancing our high-value development projects through local, state and federal entitlement processes and maintaining our disciplined approach to capital allocation.

With Corkscrew Grove Villages approaching the first set of approvals in 2026 and our other development projects advancing as well, we have multiple catalysts for value creation. The numbers tell the story. Our NPV analysis values our land portfolio between $650 million and $750 million, yet we trade at just $240 million today. We believe this represents a significant valuation disconnect that we expect will close as we execute.

We remain committed to shareholder returns through our 50-year dividend legacy and multiple capital deployment options, including our authorized $50 million buyback program. As land sales accelerate, we have increasing flexibility to return more capital. Alico today is fundamentally transformed, well-capitalized, strategically focused and spread across Southwest Florida with more than 125 years of Florida heritage, proven conservation leadership, and a clear real estate development pipeline, we're very well positioned to deliver sustainable value creation. Mickey, we'll now open up the call for questions.

[Operator Instructions] And we'll take our first question from [ George ] with [ Freedom Broadcast ].

My only question, what is the expected current of the land sales in the next 12 months? Should we anticipate larger transactions similar to prior year disposals of more measured pace?

I'm sorry, are you asking if we're giving any sort of guidance or forecast on revenues for fiscal 2026?

Yes, if you have some guidance on land sales.

Right. So we have not provided any guidance on additional land sales at this time for fiscal year 2026.

[Operator Instructions]. And we show no further questions in queue. At this time, I will turn the call back to John Kiernan for closing remarks.

Thank you. I want to thank all of our employees for their dedication during this transition. I'd like to thank our Board for their continued support of our strategic vision. And I'd like to thank you, our shareholders, for your patience and confidence as we execute this transformation. We look forward to updating you on our further progress in the new fiscal year. I wish everyone a happy holiday. Thank you.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Good morning, and welcome to the Alico Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, today's conference is being recorded.

I would now like to turn the call over to your host, John Mills, Managing Partner at ICR.

Good morning everyone, and thank you for joining us for Alico's Third Quarter Fiscal Year 2025 Conference Call. On the call today are John Kiernan, President and Chief Executive Officer; and Brad Heine, Chief Financial Officer. By now, everyone should have access to the third quarter fiscal year 2025 earnings release, which went out yesterday at approximately 4:00 p.m. Eastern Time. If you've not had a chance to review the release, it's available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well.

Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties, and other factors that may cause the actual results to differ materially from those expressed or implied in these statements. Important factors that could cause, or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 10 -- on the 8-K, and any amendments thereto filed with the SEC and those mentioned in the earnings release. The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law.

During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued yesterday. And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan.

Thank you, John. Good morning, everyone, and thank you for joining us for Alico's Third Quarter of the Fiscal Year 2025 Earnings Call.

I'm pleased to report another quarter of significant progress in executing our strategic transformation to become a diversified land company. We successfully completed our final major citrus harvest during the third quarter, marking a pivotal milestone in our transformation. This harvest represents the conclusion of our capital-intensive citrus production operations, allowing us to focus our resources entirely on our long-term land development and diversified usage strategy.

Our land monetization and asset optimization efforts accelerated in the third quarter, generating $9.3 million from combined land and equipment sales. The land component included approximately 694 acres, bringing our year-to-date land sales to $23.5 million from approximately 2,794 acres sold, exceeding our original $20 million guidance for fiscal 2025. Additionally, we received $16 million in crop insurance proceeds during the quarter, which significantly strengthened our financial position and provides additional flexibility as we advance our transformation initiatives. This insurance recovery, combined with our land sales, has resulted in a robust $42.1 million cash position, and a strong liquidity profile to execute our strategic transformation strategy.

On the development front, we achieved a major regulatory milestone with the Florida legislature approval of House Bill 4041 to create the Corkscrew Grove stewardship district in June. This represents a crucial step forward in our Corkscrew Grove Villages development project. The enabling legislation received unanimous support from the Collier County legislation delegation, multiple Florida House committees, the Senate Rules Committee, and both the full Florida House and Senate. The proposal also received unanimous support from the Collier County commissioners. The district will assist Alico in effectively financing infrastructure, helping restore and manage natural areas, and overseeing the administration of our planned -- our master planned communities.

Following this legislative approval, we appointed a 5-member Board of Supervisors in August to facilitate collaboration and communications with local, state and federal government agencies and community stakeholders. We also received the first round of comments from the South Florida Water Management District and Collier County regarding our development applications. This feedback is part of the normal regulatory review process, and we're working diligently to address these comments as we advance through the entitlement process. The process remains on track with our expectations with the final decision by the Collier Board of County Commissioners still anticipated in 2026.

Our diversified agricultural operations continue to progress as planned. We successfully negotiated agreements to lease approximately 5,250 acres to third-party citrus growers for next season, and we're in discussions with vegetable and fruit growers who are clearing as many as 500 acres for us this season in lieu of lease payments. These arrangements are generating revenue while maintaining productive use of our agricultural lands during our transition period.

Our near-term real estate development projects including Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove and Plant World properties continue advancing as planned. These four properties totaling approximately 5,500 acres maintain our estimated present value of between $335 million and $380 million, and could be realized within the next 5 years. This represents significant value for our shareholders from just 10% of our land holdings.

With our strategic transformation well underway, and our financial position strengthened, we remain confident in our ability to deliver enhanced long-term returns for our shareholders. Our approach of balancing the development of select high-value properties with diversified agricultural operations, creates a business model that leverages our core strengths while adapting to market opportunities.

I'll now turn it over to our CFO, Brad Heine, to provide more detail on our financial performance.

Thank you, John, and good morning, everyone. For the third fiscal quarter ended June 30, 2025, revenue decreased 38% to $8.4 million, compared to $13.6 million for the prior year period. For the 9 months ended June 30, 2025, revenue decreased 5% to $43.3 million, compared to $45.7 million for the prior year period. For the 3 and 9 months ended June 30, 2025, Alico Citrus harvested approximately 2.1 million and 10.8 million pound solids of respectively, compared to 4.3 million and 14.7 million pound solids of fruit in the same periods of the prior fiscal year.

As expected harvest volumes in 2025 were lower compared to 2024 levels, driven by the impact of Hurricane Milton, which hit Florida in October of 2024. Alico's blended price per pound solid for the 3 and 9 months ended June 30, 2025, increased $0.81 and $0.85, respectively, as compared to the same periods in the prior year, as a result of more favorable pricing in one of our contracts with Tropicana. As John said, we completed our last major citrus harvest in April and have thus concluded the majority of our capital investment in citrus operations.

Land management and other operations revenue for the 3 and 9 months ended June 30, 2025, increased 57% and 68%, respectively, as compared to the same periods in the prior year. This was primarily the result of an increase in rock and sand royalty income and sat sales, partially offset by lower farming, brazing and hunting lease revenues due to the sale of the Alico Ranch. Total operating expenses for the 3 and 9 months ended June 30, 2025, were $36.4 million and $229.3 million, respectively, as compared to $17.9 million and $82.4 million in the same periods in the prior year. The increase in operating expenses was driven by the decision to wind down our citrus operations and the impairment of our young trees, which were not yet being depreciated.

General and administrative expenses for the 3 and 9 months ended June 30, 2025, increased $0.4 million and $0.8 million, respectively, as compared to the same periods in the prior year. The increase was primarily due to the acceleration of depreciation on certain administrative assets and higher legal fees, both related to the strategic transformation.

Our other income expense for the 3 months ended June 30, 2025 increased $0.8 million, compared to the prior year period, driven by sale of approximately 694 acres of land in the third quarter of '25, and a gain of approximately $1.3 million from the sale of equipment and vehicles as compared to the prior year when we sold 798 acres of land. Other income expense net for the 9 months ended June 30, 2025, decreased $60 million, compared to the 9 months ended June 30, 2024, principally as a result of fewer acres of land being sold during the 9 months ended June 30, 2025, as compared to the prior year period when we sold the Alico Ranch to the state of Florida.

For the 3 months ended June 30, 2025 and 2024, the company reported a net loss attributable to Alico common stockholders of $18.3 million and $2 million, respectively. The increase in our net loss was principally the result of accelerated depreciation of approximately $40.7 million on our citrus trees due to strategic transformation and the decision to wind down our citrus operations, as well as lower revenue due to the impact of Hurricane Milton in October 2024. Partially offsetting this was crop insurance proceeds of $16 million in the current quarter.

The increased loss was partially offset by a tax benefit of $7.8 million for the 3 months ended June 30, 2025. For the 3 months ended June 30, 2025, the company had a loss of $2.39 per diluted common share, compared to a loss of $0.27 per diluted common share for the 3 months ended June 30, 2024.

For the 3 months ended June 30, 2025, EBITDA was $19.2 million, compared to $1.3 million for the 3 months ended June 30, 2024. For the 3 months ended June 30, 2025, adjusted EBITDA was $19.3 million, compared to $1.3 million for the 3 months ended June 30, 2024.

Turning now to our balance sheet and liquidity. Cash and cash equivalents were $42.1 million as of June 30, 2025, compared to $3.2 million at the end of fiscal year 2024. Net cash provided by operating activities was $22.8 million for the 9 months ended June 30, 2025, compared to net cash used in operating activities of $18.7 million for the 9 months ending June 30, 2024. At quarter end, we had $92.5 million of remaining availability on our line of credit and there were no significant debt maturities until 2029. Total debt was $85.2 million, and net debt was $43.2 million as of June 30, 2025, compared to $92.1 million and $89 million, respectively, at the end of fiscal year 2024.

Now I'd like to turn the call back to John to discuss our fiscal year 2025 outlook.

Thank you, Brad. Let me now share our guidance for fiscal 2025 and where we stand in our transformation journey. We've made substantial strides in our transformation this quarter. And with our final major harvest now complete, we've successfully transitioned from capital-intensive citrus production to a diversified land company model. While we continue to have citrus operations from our properties through our roughly 3,800 acres of retained groves, and third-party growers under lease arrangements, we're no longer making significant capital investments in citrus infrastructure.

This quarter's $9.3 million in combined land sales and equipment sales, plus the $16 million crop insurance recovery demonstrates the strength of our new approach. The legislative approval and establishment of the Corkscrew Grove Stewardship District represents a significant regulatory milestone that validates our development strategy, and provides the framework for sustainable community-focused growth. With our 5-member Board now appointed, and initial regulatory feedback received from the South Florida Water Management District in Collier County, we're advancing steadily through the entitlement process. Everything is progressing as expected, and we remain on track with our previously announced time lines.

Our financial productions remain solid. We continue to expect approximately $20 million in adjusted EBITDA for fiscal 2025. We've achieved $23.5 million year-to-date in land sales, exceeding our original $20 million guidance. And we believe there is potential to achieve another $25 million before year-end. We're positioned to end the fiscal year with approximately -- at least $25 million in cash, and [ sufficient ] liquidity to fund operations through fiscal year 2027.

What's particularly encouraging is how our diversified agricultural partnerships are developing alongside our development pipeline. Our leasing arrangements with citrus growers and discussions with vegetable and fruit growers are generating revenue while maintaining productive use of our land during this transition. The transformation we announced in January continues to unfold as planned. We're executing on our strategy to become a diversified land company, while maintaining our commitment to responsible stewardship on our 50,500 acre real estate portfolio. With that foundation in place, I'm confident we'll continue delivering on our commitments while building long-term value for our shareholders. We look forward to updating you on our continued progress next quarter.

And with that, we'll open up the line to questions from industry analysts. David?

[Operator Instructions] We'll take our first question from Gerry Sweeney with Roth Capital.

This is Brandon Rogers on for Gerry Sweeney. So for -- you announced the $23.5 million in land sales so far with the potential for $25 million in additional land sales. Are you currently in discussions for those other land sales?

And then what is the likelihood you can achieve the $45-plus million in land sales for the year?

I mean we're basically in a transaction. It has a life and a timetable of its own. There's a diligence and inspection period that's continuing to go on. Right now, it's possible that it could close at the end of fiscal 2025. It's also possible that could roll into fiscal 2026. But we think it's a good transaction. We think it's at a fair value. And the timing just is a little bit hazy right now.

Okay. And then turning to Corkscrew. Construction on the first village to be in 2028, 2029, if all approvals are granted. What are some potential milestones we can watch for between now and the potential entitlement approvals?

And then you have -- what's the likelihood of the final decision by the Collier Board of County Commissioners by 2026? And then is there anything that could delay that?

Okay. So you packed a whole bunch into that one. So let's unpack it.

In all of these entitlement projects, there are multiple external variables that the company cannot control. There's all sorts of government reviews. There's additional questioning. We've got some public meetings that will take place. And all of them have to be scheduled, timed, held, sometimes there's follow-ups. So the current timetable that we've articulated in our earnings release, we believe with good confidence, based on what we've achieved so far, as well as the visibility into going forward that, yes, we would be on track for the potential securing of the permits, particularly at our Corkscrew property on the time frame that you had described. But some of those are just out of our control.

We've done a very good job of basically turning around quickly of filing efficiently and accurately. We've tried to be very, very transparent with all constituents as we've gone through these entitlement processes, but some of that is just simply out of our control.

Understood. And then if I can squeeze one more in. In addition to Corkscrew Grove Stewardship, have you decided that Alico will partner with other groups on development? And then if so, can you give us any additional color on the strategy around bringing the project to permitting, building into market?

So the permitting process is the entitlement process that we're going through right now. And right now, we're handling that as a solo effort with many, many engineers, consultants, contractors, attorneys. Traffic experts and so on that are really experienced in Collier County, working on projects of this size and scale.

We've spoken previously, publicly, about our strategy to maintain some optionality. At this point, we don't have a need for a partner at this early entitlement stage. We've got substantial resources to kind of navigate that process without requiring additional capital. The Stewardship District that was recently approved also gives us an avenue to raise capital should we need to build infrastructure prior to basically transferring the property over to builders, or partnering with builders, once the entitlement process is complete.

So we've spoken previously that we've had conversations with state and national homebuilders, and they certainly are very much aware of the Corkscrew property itself, as well as our expertise, and kind of what the entitlement process is expected to deliver and what we're looking to do. Because we've got a website up. We've got a lot of the information on that website as far as the Corkscrew Grove Villages project. But right now, there is nothing to basically share with you or the rest of the investor community on any of those other discussions because they're way, way premature and from the optionality perspective, we haven't made a decision whether we want to go down a path, or whether we want to entitle the process and sell the land? Whether we want to entitle the process and basically partner with builders? Or whether we want to entitle the property and basically build ourselves? At this point, we haven't made a final decision about any of that.

[Operator Instructions] And there are no further questions on the line at this time. I'll turn the program back to John Kiernan for any additional or closing remarks.

Thank you, David. And I want to say thank you to everyone for your continued support of Alico as we navigate this exciting transformation. We look forward to updating you about our further progress in the current quarters and delivering our year-end results in late November. So thank you, and we'll talk to you soon.

This does conclude today's program. Thank you for your participation, and you may now disconnect.