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Maui Land & Pineapple Posts Wider Net Loss in Q3, Revenues Grow

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Shares of Maui Land & Pineapple Company, Inc. (MLP - Free Report) have declined 36.6% since the company reported third-quarter 2025 results, steeper than the S&P 500 Index’s 2.3% decrease. Over the past month, the stock has also fallen 11.7% compared with the S&P 500’s 1.8% decline. This negative post-earnings performance reflects investor concerns despite operational progress highlighted in the company’s latest filings and disclosures.

In the third quarter, Maui Land & Pineapple posted total operating revenue of $4.5 million, up from $3 million a year earlier, driven primarily by higher leasing revenue and renewed activity in land development. The company generated net income of $0.2 million, a notable improvement from a net loss of $2.2 million in the year-ago quarter. Earnings per share rose to 1 cent against a loss of 11 cents in the prior-year quarter. Leasing revenue increased to $3.5 million from $2.7 million, while land development and sales contributed $0.8 million versus no revenue in the prior-year quarter. Resort amenities revenue declined modestly to $0.2 million from $0.3 million. Operating costs declined to $4.9 million from $5.3 million, reflecting lower share-based compensation but higher leasing-related costs.

Other Key Business Metrics

Maui Land & Pineapple’s operating picture showed improvement across several areas. For the nine months ended Sept. 30, 2025, operating revenue rose 83.1% to $14.9 million from $8.2 million, with growth driven by leasing, land development sales and cost reimbursements from the State of Hawai‘i’s Relief Housing Project. Leasing revenue grew to $9.9 million from $7.1 million, boosted by tenant additions, higher occupancy and water system revenues. Land development and sales revenue surged to $4.2 million from $0.2 million, reflecting parcel sales and progress on the Honokeana Homes project.

Operating loss narrowed significantly to $2.8 million from $5.5 million in the prior-year period. Adjusted EBITDA turned positive at $1.6 million against a slight loss a year earlier. However, the company recorded a GAAP net loss of $9.4 million, widening from a $5.5 million loss last year, mainly due to $6.9 million in pension-related expenses as it terminated its qualified pension plan.

Total cash and investments convertible to cash declined to $5 million from $9.5 million at year-end 2024, reflecting pension contributions, development costs and capital expenditures.

Management Commentary

Management emphasized strong leasing momentum, noting a 39% year-over-year increase in recurring leasing revenue and improved occupancy across commercial properties. Leadership also highlighted progress in land development and strategic land activation, including parcel sales and planning efforts across its West Maui and Upcountry holdings. The company pointed to its new agave venture as part of long-term agricultural diversification, with 15,000 blue weber agave plants already in the ground.

The third-quarter earnings underscore a strategic shift toward stabilizing recurring income while unlocking value from non-strategic parcels. Management also noted the fulfillment of “its largest remaining legacy obligation” with the termination of the qualified pension plan.

Factors Influencing the Quarter

For the nine months ended Sept. 30, 2025, results were significantly affected by the State of Hawai‘i’s Relief Housing Project, which contributed $3.4 million in reimbursed development costs. Leasing benefited from increased tenant activity, higher water system revenues and improved occupancy across industrial, retail and agricultural properties.

The widening GAAP net loss was primarily due to the $6.9 million pension-related expense, $6.6 million of which was non-cash. Share-based compensation also declined markedly due to fewer option grants, helping reduce operating expenses. Meanwhile, land development activity accelerated, with sales of non-strategic parcels and construction tied to the Honokeana Homes project.

On the cost side, leasing-related expenses rose because of increased occupancy, property management fees and tenant improvement work. Resort amenities expenses were affected by the restructuring of club privileges and first-quarter bad debt write-offs.

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Management stated expectations for continued leasing income growth as occupancy stabilizes and origination costs decline. It also noted plans to monetize remnant parcels over the next one to three years and continue development activities across its strategic land portfolio.

Other Developments

Beyond operational metrics, Maui Land & Pineapple reported several noteworthy developments. The company advanced its agave farming venture, hired a director to lead agricultural operations and initiated planting across 25 acres. It also continued administering the State of Hawai‘i’s Honokeana Homes project on a cost-recovery basis. Additionally, the company terminated its qualified pension plan, representing a key step in reducing long-term liabilities. Several legal matters were disclosed, including lawsuits related to irrigation water access and Kapalua Resort Association governance, though financial impacts remain undetermined.

Overall, while Maui Land & Pineapple delivered operational improvement across leasing and land development, cash outflows and pension-related charges weighed on reported earnings, contributing to the muted market reaction.


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