Limoneira Company, with a market cap of $393 million and revenue of $191.5 million, has been notified of the termination of its Farm Management Agreement (FMA) with Capital Agricultural Property Services, Inc. Initiated by PGIM Real Estate Finance, LLC for PAI Centurion Citrus, LLC, the termination takes effect on March 31, 2025.
The FMA started on January 31, 2023, involving the management of 3,537 acres of citrus groves in Tulare County, California, sold to PGIM in October 2022. Termination incurs no material penalties for Limoneira, which will cease managing these properties by March's end.
Limoneira will continue packing, marketing, and selling lemons from these groves under a separate Grower Packing & Marketing Agreement (GPMA) with PAI, also initiated on January 31, 2023, for five years.
The FMA termination is not expected to impact Limoneira financially. The company remains active in agriculture and real estate development.
Recent SEC filings reveal Limoneira's fourth-quarter 2024 earnings showed a slight EPS miss at -$0.15 against the forecasted -$0.14, but record revenue of $43.9 million contributed to a yearly net revenue increase of 6%. Adjusted EBITDA improved to $26.7 million.
Limoneira is shifting towards increased avocado production to enhance revenue streams. Analysts note interest in the company's water rights monetization and real estate ventures. Limoneira is also exploring strategic alternatives to maximize stockholder value, with ongoing evaluations alongside advisors.
Source: Investing