Alico announces development plan for master-planned community

FORT MYERS, Fla. - Alico, Inc. (NASDAQ:ALCO), a company historically known for its citrus production and its 20-year track record of consistent dividend payments, has filed a development application for the first of two mixed-use villages, marking a significant step in its strategic shift towards real estate development. According to InvestingPro data, the company currently trades at $28.03 per share, with a market capitalization of approximately $214 million. The application for Corkscrew Grove East Village is part of a larger 3,000-acre master-planned community in northwest Collier County, Florida.

The company’s move into real estate development comes after it announced the cessation of its citrus operations post the 2024/2025 harvest. Alico has set plans to monetize approximately 5,500 acres of its land holdings over the next five years, which are estimated to be worth between $335 and $380 million. This strategic pivot comes as InvestingPro analysis shows the company is currently experiencing negative EBITDA and requires careful cash management, with 8 additional key insights available to subscribers.

The Corkscrew Grove Villages project is designed to align with the goals of the Collier County Rural Land Stewardship Area (RLSA) program, which encourages clustering development to maximize environmental preservation. Alico’s plan also includes dedicating 6,000 acres of land in Collier County for permanent conservation, underscoring its commitment to balanced development and environmental stewardship.

The initial phase of development is expected to commence between 2028 and 2029, subject to obtaining all required permits. Alico’s strategic assets targeted for development also include properties in Highlands, Polk, and Hendry counties. The company maintains a strong current ratio of 4.84, indicating sufficient liquid assets to meet its short-term obligations during this transition period. For detailed analysis of Alico’s financial position and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides expert insights on over 1,400 US stocks.

John Kiernan, President and CEO of Alico, emphasized the transformative nature of the filing, which follows two years of planning and engagement with community stakeholders, environmental experts, and local officials. The development is aimed at addressing Southwest Florida’s need for housing and commercial space while ensuring responsible environmental management.

In preparation for the development’s regulatory review process, a local bill was filed in February 2025 to establish the Corkscrew Grove Stewardship District, which is anticipated to receive final action by the Florida legislature and Governor by the end of June 2025. The stewardship district is expected to provide a more coordinated approach to development and conservation efforts in the area.

This news is based on a press release statement from Alico, Inc. The company will further discuss the announcement in a conference call and webcast scheduled for Friday at 8:30 am Eastern Time.

In other recent news, Alico Inc. reported a notable earnings miss for the first quarter of fiscal year 2025, with an earnings per share (EPS) of -$1.20, significantly below the forecasted -$0.28. Despite this, the company achieved a revenue of $16.9 million, surpassing the expected $11.5 million. Alico’s revenue increase was driven by a 21% year-over-year growth, attributed partly to a new agreement with Tropicana that resulted in a higher price per pound solid for citrus. The company is currently undergoing a strategic transformation, moving away from citrus production due to challenges like citrus greening disease and hurricanes, and is exploring alternative agricultural opportunities such as sod production and sand mining.

In terms of financial health, Alico reported a net loss of $9.2 million, contrasting with a net income of $42.9 million in the previous year. The company has cash and cash equivalents of $4.4 million and total debt of $104.9 million. Alico anticipates generating $20 million from land sales in fiscal year 2025, which will help fund operations through fiscal year 2027. The company is also considering various lease arrangements with agricultural operators in Florida to diversify its revenue streams. Alico’s strategic shift aims to unlock the value of its extensive land holdings, estimated to be worth between $650 million and $750 million.

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