Maui Land & Pineapple considers sale of water assets amid drought

KAPALUA, Hawaii - Maui Land & Pineapple Company, Inc. (NYSE:MLP) announced Wednesday that it has formed a board subcommittee to explore options for potentially selling or leasing its water infrastructure assets on Maui.

The strategic review, which began in early 2025, is examining the company’s extensive water-related holdings that include wells, storage facilities, and transmission systems across the island. This strategic initiative comes as the company has shown significant revenue growth of 74.59% over the last twelve months, though InvestingPro analysis indicates the stock is trading above its Fair Value. For deeper insights into MLP’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Among the assets under consideration is the Piʻiholo Well in Upcountry Maui, which has an estimated capacity exceeding 1 million gallons per day, along with land for additional well sites. In West Maui, the company owns groundwater wells and a surface water system that supplies drinking water to portions of Lahaina and irrigation water to Kapalua.

"For more than a century, MLP has invested tens of millions of dollars to construct and responsibly manage critically important water infrastructure in communities across Maui," said Race Randle, CEO of Maui Land & Pineapple Company, in the press release.

The subcommittee will be led by Ken Ota, an independent director with over 30 years of experience in water, wastewater, and irrigation systems. Ota stated that selling certain water-related assets could support "acceleration of other priority business efforts including critically needed housing creation."

The company, which owns over 22,000 acres of land and approximately 247,000 square feet of commercial real estate, has not established a timeline for completing its evaluation. With an EBITDA of -$13.94 million and a current ratio of 0.77, InvestingPro analysis reveals additional financial metrics and insights that could help investors better understand the company’s strategic decisions. Subscribers gain access to over 30 key financial metrics and exclusive ProTips for MLP.

Maui has been experiencing severe drought conditions, and the company indicated that these assets could potentially increase water security across the island. The company said no additional disclosures are anticipated unless further action is determined to be appropriate or required.

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