Maui Land & Pineapple Q2 Loss Narrows Y/Y Amid Revenue Growth

Shares of Maui Land & Pineapple Company, Inc. (MLP) have slipped 4% since releasing second-quarter 2025 results. By comparison, the S&P 500 index edged down 0.2% in the same period. Over the past month, the company’s shares have retreated 2.9%, while the S&P 500 has gained 2.5%. This underperformance highlights investor caution regarding the company’s latest results and outlook, despite broader market strength.

Financial Performance Overview

For the quarter ended June 30, 2025, Maui Land & Pineapple posted operating revenues of $4.6 million, surging 74% from $2.6 million in the prior-year quarter. For the first six months of 2025, revenues skyrocketed 103% year over year to $10.4 million from $5.1 million. Leasing revenues climbed 46% in the first six months of 2025, benefiting from higher occupancy and rental rates, while land development and sales surged due to contributions from the Honokeana Homes Relief Housing Project and a non-strategic parcel sale.

Amid revenue growth, the company narrowed its net loss. For the quarter, Maui Land & Pineapple reported a net loss of $1 million, or 5 cents per share, narrower than a loss of $1.9 million, or 10 cents per share, in the year-ago quarter.

For the six months, the company recorded a net loss of $9.6 million, or 49 cents per share, versus a loss of $3.2 million, or 16 cents per share, in the same period last year. The widening in losses was primarily due to a $7.5-million pension settlement expense recognized in the first half of 2025. Adjusted EBITDA loss improved modestly to $0.2 million from a loss of $0.25 million a year earlier.

Maui Land & Pineapple Company, Inc. Price, Consensus and EPS Surprise

 

Maui Land & Pineapple Company, Inc. price-consensus-eps-surprise-chart | Maui Land & Pineapple Company, Inc. Quote

Other Key Business Metrics

Commercial leasing continued to strengthen, with occupancy in commercial real estate increasing from 86% at the end of 2024 to 89% by June 2025. Industrial properties were 89% occupied, retail stood at 94%, and office space achieved 100% occupancy. Leasing revenues also benefited from re-tenanting initiatives and adjustments to market rental rates, particularly across properties in Kapalua Resort, Hali’imaile Town and the Alaeloa Business Center.

On the land side, the Honokeana Homes Relief Housing Project with the State of Hawai‘i was a notable contributor, generating $3.1 million in contracting revenues in the six months ended June 30, 2025. Development expenses, however, rose substantially, with $3.3 million spent on real estate development in the first half versus $0.5 million a year earlier.

Management Commentary

Chief executive officer Race Randle emphasized that the company’s financial performance validates its strategy of maximizing land and commercial asset productivity. He highlighted diversification efforts, particularly the launch of an agave farming venture on underutilized croplands, intended to create long-term revenue streams. Meanwhile, chief financial officer Wade Kodama explained that the pension annuitization decision created significant non-cash GAAP expenses in the second quarter but will generate a comprehensive gain in the next quarter as the plan termination is finalized.

Factors Influencing Results

The headline net loss was largely led by pension settlement costs, which accounted for $7.5 million in expenses in the first half of the year. In addition, general and administrative expenses rose due to new hires, while water system operation costs climbed amid conservation initiatives and higher electricity expenses. Leasing costs also increased by more than 50% year over year as the company executed 17 new leases.

Offsetting some of these expenses, Maui Land & Pineapple recognized $0.5 million in other income during the first half from a COVID-era Employee Retention Credit. Distributions from its BRE2 joint venture added another $0.7 million to its cash flow.

Guidance

Management reiterated its focus on asset optimization and capital deployment toward development, leasing and diversification initiatives. The company expects a non-cash gain related to pension plan termination to be recognized in the third quarter of 2025, which will counterbalance second-quarter expenses. Management also signaled continued investment in land planning, tenant improvements and agave cultivation, with the latter expected to have a seven to nine-year growth cycle before maturity for commercial production.

Other Developments

Maui Land & Pineapple advanced its agave venture in the second quarter, planting more than 12,000 blue weber agave plants on Upcountry Maui landholdings. The initiative supports diversification into agriculture and potential vertical integration through distillation and agritourism. Separately, the company continued asset recycling by selling remnant non-strategic parcels, which it anticipates will remain a funding source for development and conservation projects in the near term.

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