Revenues and other income, for the first quarter of 2021, including equity in earnings of unconsolidated joint ventures were $11.1 million, compared with $11.9 million for the first quarter of 2020. Factors affecting the quarterly results include: Net loss attributable to common stockholders for the first quarter of 2021 was $1.1 million, or net loss per share attributed to common stockholders, basic and diluted, of $0.04, compared to a net loss attributable to common stockholders of $0.7 million, or net loss per share attributed to common stockholders, basic and diluted, of $0.03, for the first quarter of 2020. Equity in losses of unconsolidated joint ventures were $59,000 for the three months ended March 31, 2021, a decrease of $1.4 million or 104%, from equity in earnings of $1.4 million during the same period in 2020. The equity in earnings from the Petro Travel Plaza Holdings, or Petro, joint venture decreased $1.4 million. For the quarter, the joint venture experienced significant declines in fuel margins resulting from higher fuel costs. Additionally, full service restaurant margins decreased as a result of closures, driven by operating capacity limitations under California’s Blueprint for a Safer Economy. In April 2021, restaurants were able to resume indoor dining at 50% capacity, leading to the re-opening of the Black Bear Diner on the east side of TRCC.
Story continues “We also continue to build our portfolio of assets, both real estate and otherwise,” Bielli continued. “With demand for industrial space continuing to increase, it’s important to have new buildings in the pipeline. Accordingly, we have entered into our fourth joint-venture agreement with Majestic Realty Co., to construct a 629,274 square foot industrial building on the east side of our Tejon Ranch Commerce Center, or TRCC. We expect construction to begin later this year with completion targeted for 2022. We are also focused on transitioning TRCC into a full mixed-use community as we advance plans for our new multi-family residential community located immediately adjacent to the Outlets at Tejon, bringing much needed housing to the area. Lastly, our farming operation has begun development of a new vineyard on 160 acres of farmland under contract with Gallo.”
First Quarter Financial Results “We saw two significant court decisions during the first quarter of 2021,” said Gregory S. Bielli, President and CEO. “The first was a total victory affirming Kern County’s reapproval of our Grapevine master planned community. The second involved the Centennial community in Los Angeles County. That project’s approval was challenged by two lawsuits which collectively contained 23 separate claims. The County and Company prevailed on 20 of those challenges. The remaining three will require additional work, which we have already started to address.”
As of the date of this report, Kern County and Los Angeles County are considered to have moderate COVID-19 transmission risk under California’s Blueprint for a Safer Economy, or the Blueprint. Our farming and mineral resources segments continue to operate as normal while following common-sense health measures. Our retail outlets can now operate at full capacity, following guidelines provided by the Blueprint. There is much to be hopeful and optimistic for over the next few months as it pertains to the current recovery phase. However, uncertainty over long-term vaccine efficacy, virus mutations, vaccine availability, California’s ability to meet reopening guidelines, and continuing vaccine adoption remain for the next phase of the pandemic. These uncertainties may continue to impact our business activities as they did during the first quarter of 2021. The Company operates solely in California, which continued its vaccine rollout in the first quarter of 2021 and opened vaccinations to individuals who are 16 years old and older in April 2021. California is currently projected to fully reopen on June 15, if vaccine supply is sufficient for Californians aged 16 years and older who wish to be inoculated and if hospitalization rates are stable and low.
2021 Outlook: Helping to partially offset the decline in revenue was an increase in water sales revenues of $1.1 million. Dry conditions throughout California and a State Water Project allocation of only 5% presented additional water sales opportunities. Comparatively, we sold 5,881 acre-feet and 4,625 acre-feet of water in the first quarters of 2021 and 2020, respectively.
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