Forward-looking statements

This Quarterly Report on Form 10-Q contains forward-looking statements,
including without limitation statements regarding strategic alliances, the
almond, pistachio and grape industries, the future plantings of permanent crops,
future yields, prices and water availability for the Company's crops and real
estate operations, future prices, production and demand for oil and other
minerals, future development of the Company's property, future revenue and
income of its jointly-owned travel plaza and other joint venture operations,
potential losses to Tejon Ranch Co. and its subsidiaries (the Company, Tejon,
we, us, and our) as a result of pending environmental proceedings, the adequacy
of future cash flows to fund our operations, and of current assets and contracts
to meet our water and other commitments, market value risks associated with
investment and risk management activities and with respect to inventory,
accounts receivable and our own outstanding indebtedness, ongoing negotiations,
the uncertainties regarding the impact of COVID-19 on the Company, its customers
and suppliers, and global economic conditions, and other future events and
conditions. In some cases, these statements are identifiable through use of
words such as "anticipate," "believe," "estimate," "expect," "intend," "plan,"
"project," "target," "can," "could," "may," "will," "should," "would," "likely,"
and similar expressions such as "in the process." In addition, any statements
that refer to projections of our future financial performance, our anticipated
growth, and trends in our business and other characterizations of future events
or circumstances are forward-looking statements. We caution you not to place
undue reliance on these forward-looking statements. These forward-looking
statements are not a guarantee of future performance, are subject to assumptions
and involve known and unknown risks, uncertainties and other important factors
that could cause the actual results, performance or achievements of the Company,
or industry results, to differ materially from any future results, performance,
or achievement implied by such forward-looking statements. These risks,
uncertainties and important factors include, but are not limited to, the impacts
of COVID-19 and the actions taken by governments, businesses, and individuals in
response to it, including the development, distribution, efficacy and acceptance
of vaccines and related mandates, weather, market and economic forces,
availability of financing for land development activities, and competition and
success in obtaining various governmental approvals and entitlements for land
development activities. No assurance can be given that the actual future results
will not differ materially from the forward-looking statements that we make for
several reasons, including those described above and in the section entitled
"Risk Factors" in our most recent Annual Report on Form 10-K.

PREVIEW

We are a diversified real estate development and agribusiness company committed
to responsibly using our land and resources to meet the housing, employment, and
lifestyle needs of Californians and to create value for our shareholders. In
support of these objectives, we have been investing in land planning and
entitlement activities for new industrial and residential land developments and
in infrastructure improvements within our active industrial development. Our
prime asset is approximately 270,000 acres of contiguous, largely undeveloped
land that, at its most southerly border, is 60 miles north of Los Angeles and,
at its most northerly border, is 15 miles east of Bakersfield.

Corporate goals and strategies

Our primary business objective is to maximize long-term shareholder value
through the monetization of our land-based assets. A key element of our strategy
is to entitle and then develop large-scale mixed-use master planned residential
and commercial/industrial real estate development projects to serve the growing
populations of Southern and Central California. Our mixed-use master planned
residential developments have been approved to collectively include up to 35,278
housing units, and more than 35 million square feet of commercial space. Over
the next few years, it is possible that we will be engaged in continuous
litigation defending the entitlements of our master planned developments.

We are currently executing on value creation as we are engaged in construction,
commercial sales, and leasing at our fully operational commercial/industrial
center Tejon Ranch Commerce Center, or TRCC. In January 2021, the Kern County
Board of Supervisors approved two Conditional Use Permits, authorizing
development of multi-family apartment uses within the Tejon Ranch Commerce
Center, on a 27-acre site located immediately north of the Outlets at Tejon.
This authorization allows the Company to develop up to a maximum of 495
multi-family residences, in thirteen apartment buildings, as well as
approximately 6,500 square feet of community amenity space and we anticipate
construction beginning late 2022. All of these efforts are supported by diverse
revenue streams generated from other operations including: farming, mineral
resources, and our various joint ventures.

Our business

We currently operate in five business segments: commercial/industrial real estate development; resort/residential real estate development; mineral resources; Agriculture; and ranch operations.

The activities of the commercial/industrial real estate development segment include the planning and approval of land for development; infrastructure construction; construction of pre-let buildings; construction of buildings intended to be rented or sold;

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and the sale of land to third parties for their own development. The commercial/industrial real estate development segment also includes activities related to power plant leasing and communications leases.

At the heart of the commercial/industrial real estate development segment is
TRCC, a 20 million square foot commercial/industrial development on Interstate 5
just north of the Los Angeles basin. Six million square feet of industrial,
commercial and retail space has already been developed, including distribution
centers for IKEA, Caterpillar, Famous Footwear, L'Oreal, Camping World, and
Dollar General. TRCC sits on both sides of Interstate 5, giving distributors
immediate access to the west coast's principal north-south goods movement
corridor.

We are also involved in multiple joint ventures within TRCC with several partners that help us develop our commercial/industrial activities:

•A joint venture with Petro that owns and operates two travel and truck stop
facilities, comprised of five separate gas stations with convenience stores and
fast-food restaurants within TRCC-West and TRCC-East.

•Two joint ventures with Rockefeller Development Group, or Rockefeller:
•18-19 West LLC owns 61.5 acres of land for future development within TRCC-West.
In 2019, our 18-19 West LLC joint venture entered into a land purchase option
with the same third-party who purchased the Five West building and land. In
November 2021, the third-party exercised the land option and purchased the land
from the joint venture for $15,213,000; and

• TRCC/Rock Outlet Center LLC operates outlets at Tejon, a net shopping experience of 326,000 square feet at TRCC-East;

• Six joint ventures with Majestic Realty Co.or Majestic, to develop, manage and operate industrial buildings within TRCC:

•TRC-MRC 1, LLC operates a 480,480 square foot industrial building at TRCC-Est, which was completed in 2017 and is fully leased;

•TRC-MRC 2, LLC owns and operates a 651,909 square foot building at TRCC-West that is fully leased;

•TRC-MRC 3, LLC operates a 579,040 square foot industrial building at TRCC-Est which is fully leased; and

•TRC-MRC 4, LLC was formed in 2021 to pursue the development, construction,
leasing and management of a 629,274 square foot industrial building in
TRCC-East. Grading on the site has been substantially completed and construction
of the building has begun. The building is expected to be completed during the
second half of 2022.

•TRC-MRC 5 LLC was formed in March 29, 2022 to pursue the development,
construction, lease-up, and management of an approximately 446,400 square foot
industrial building located within TRCC-East. The project is currently in its
initial planning and design phases with construction set to commence in 2023.

• TRC-MRC Multi I, LLC was formed in February 2022 with Majestic for the development, rental and management of approximately 495 multi-family residences. The development would be located on an approximately 23-acre site located immediately north of the outlets in Tejon.

The resort/residential real estate development segment is actively involved in
the land entitlement and development process internally and through a joint
venture. Our active developments within this segment are Mountain Village at
Tejon Ranch, or MV, Centennial at Tejon Ranch, or Centennial, and Grapevine at
Tejon Ranch, or Grapevine.

•MV encompasses a total of 26,417 acres, of which 5,082 acres will be used for a
mixed-use development that will include housing, retail, and commercial
components. MV is entitled for 3,450 homes, 160,000 square feet of commercial
development, 750 hotel keys, and more than 21,335 acres of open space. The first
final map for the project consisting of 401 residential lots and parcels for
hospitality, amenities, and public uses was approved by Kern County in December
2021;

•The Centennial development is a mixed-use master planned community development
encompassing 12,323 acres of our land within Los Angeles County. Upon completion
of Centennial, it is estimated that the community will include approximately
19,333 homes and 10.1 million square feet of commercial development, including
nearly 3,500 affordable units. Centennial had entitlements approved in December
2018 and received legislative approvals in April 2019 from the Los Angeles
County Board of Supervisors. See Note 12 (Commitments and Contingencies) of the
Notes to Unaudited Consolidated Financial Statements for additional information
related to current litigation; and

•Grapevine is an 8,010-acre development area located on the San Joaquin Valley
floor area of our lands, adjacent to TRCC. Upon completion of Grapevine, the
community will include 12,000 homes, 5.1 million square feet for commercial
development, and more than 3,367 acres of open space and parks. The 4,643 acres
designated for mixed-use development will include housing, retail, commercial,
and industrial components.
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•Immediately northeast of Grapevine is Grapevine North, a 7,655-acre development
area, that is currently used for agricultural purposes. Identified as a
development area in the RWA, Grapevine North presents a significant opportunity
for future development. Grapevine North may feature mixed use community
development similar to Grapevine at Tejon Ranch, or other development uses as
appropriate based upon market conditions at the time.

Please refer to our Annual Report on Form 10-K for the year ended December 31, 2021for a more detailed description of our active developments in the resort/residential real estate development segment.

Our mineral resources segment generates revenue from oil and gas royalty leases, rock and aggregate extraction leases, a lease with National Cement Company of California Inc.and sale of water.

The agricultural segment derives revenue from the sale of wine grapes, almonds and pistachios.

Finally, the ranch operations segment includes revenue from game management and ancillary land uses such as grazing leases and filming.

First quarter 2022 performance summary

For the three months ended March 31, 2022, the Company had a net income
attributable to common stockholders of $4,307,000 compared to a net loss of
$1,055,000 for the three months ended March 31, 2021. Improvements in the
Company's operating results are attributed to the following: commercial land
sale resulting in a $3,937,000 increase in Commercial/Industrial operating
profits, additional water sales resulting in a $2,682,000 improvement in Mineral
Resources operating profits, and improved joint venture operating results of
$1,272,000. Income tax expense increased accordingly by $3,025,000 to reflect
the improved operating results.

For the first three months of 2021, we had a net loss attributable to common
stockholders of $1,055,000 compared to a net loss of $682,000 during the first
three months of 2020. The primary driver of this decrease was a $1,414,000
decrease in the equity in earnings of unconsolidated joint ventures. For the
quarter, Petro Travel Plaza Holdings experienced significant declines in fuel
margins resulting from higher fuel costs. Additionally, full-service restaurant
margins within the Petro joint venture decreased due to ongoing closures during
the period, driven by operating capacity limitations under California's
Blueprint for a Safer Economy. The decline in operating results from our joint
ventures was offset by a $998,000 increase in mineral resources revenues, driven
by increased water sales due, in part, to drier conditions statewide which led
to a lower SWP allocation over the comparative period.

This Management's Discussion and Analysis of Financial Condition and Results of
Operations provides a narrative discussion of our results of operations. It
contains the results of operations for each reporting segment of the business
and is followed by a discussion of our financial position. It is useful to read
the reporting segment information in conjunction with Note 14 (Reporting
Segments and Related Information) of the Notes to Unaudited Consolidated
Financial Statements.

Critical accounting estimates

The preparation of our interim financial statements in accordance with generally
accepted accounting principles in the United States, or GAAP, requires us to
make estimates and judgments that affect the reported amounts for assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. We consider an accounting estimate to be critical if: (1) the
accounting estimate requires us to make assumptions about matters that were
highly uncertain at the time the accounting estimate was made, and (2) changes
in the estimates that are likely to occur from period to period, use of
different estimates that we reasonably could have used in the current period, or
would have a material impact on our financial condition or results of
operations. On an ongoing basis, we evaluate our estimates, including those
related to revenue recognition, impairment of long-lived assets, capitalization
of costs, allocation of costs related to land sales and leases, stock
compensation, our future ability to utilize deferred tax assets, and defined
benefit retirement plan. We base our estimates on historical experience and on
various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions.

During the three months ended March 31, 2022, our critical accounting policies
have not changed since the filing of our Annual Report on Form 10-K for the year
ended December 31, 2021. Please refer to that filing for a description of our
critical accounting policies. Please also refer to Note 1 (Basis of
Presentation) in the Notes to Unaudited Consolidated Financial Statements in
this report for newly adopted accounting principles.
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Operating results by segment

We evaluate the performance of our reporting segments separately to monitor the
different factors affecting financial results. Each reporting segment is subject
to review and evaluation as we monitor current market conditions, market
opportunities, and available resources. The performance of each reporting
segment is discussed below:

Real Estate – Commercial/Industrial:

                                               Three Months Ended March 31,                           Change
($ in thousands)                                2022                   2021                  $                     %
Commercial/industrial revenues
Pastoria Energy Facility                  $          996          $     1,016          $       (20)                   (2) %
TRCC Leasing                                         388                  399                  (11)                   (3) %
TRCC management fees and reimbursements              585                  186                  399                   215  %
Commercial leases                                    154                  142                   12                     8  %
Communication leases                                 253                  227                   26                    11  %
Landscaping and other                                292                  258                   34                    13  %
Land sale                                          4,681                    -                4,681                   100  %

Total commercial/industrial income $7,349 $2,228 $5,121

                   230  %

Total Commercial/Industrial Expenditure $2,736 $1,552 $1,184

                    76  %
Operating income from
commercial/industrial                     $        4,613          $       676          $     3,937                   582  %



•Commercial/industrial real estate development segment revenues were $7,349,000
for the three months ended March 31, 2022, an increase of $5,121,000, or 230%,
from $2,228,000 for the three months ended March 31, 2021. The increase is
attributed to a land sale to a third party for a 12.3-acre parcel for total
consideration of $4,681,000.

•Commercial/industrial real estate development segment expenses were $2,736,000
for the three months ended March 31, 2022, an increase of $1,184,000, or 76%,
from $1,552,000 for the three months ended March 31, 2021. This increase is
primarily attributed to recognizing cost of land sales associated with the
12.3-acre parcel noted above.

The logistics operators currently located within TRCC have demonstrated success
in serving all of California and the western region of the United States, and
the Company showcases their success in its marketing efforts. We expect to
continue to focus our marketing strategy for TRCC-East and TRCC-West on the
significant labor and logistical benefits of our site, the pro-business approach
of Kern County, and the demonstrated success of the current tenants and owners
within our development. Our location fits within the logistics model that many
companies are using, which favors large, centralized distribution facilities
which have been strategically located to maximize the balance of inbound and
outbound efficiencies, rather than many decentralized smaller distribution
centers. The world-class logistics operators located within TRCC have
demonstrated success through utilization of this model. With access to markets
of over 40 million people for next-day delivery service, they are also
demonstrating success with e-commerce fulfillment.

Our Foreign Trade Zone (FTZ) designation allows businesses to secure the many
benefits and cost reductions associated with streamlined movement of goods in
and out of the trade zone. This FTZ designation is further supplemented by the
Advance Kern Incentive Program, or AKIP, adopted by the Kern County Board of
Supervisors. AKIP is aimed to expand and enhance the County's competitiveness by
taking affirmative steps to attract new businesses and to encourage the growth
and resilience of existing businesses. AKIP provides incentives such as
assistance in obtaining tax incentives, building supporting infrastructure, and
workforce development.

We believe that the FTZ and AKIP, along with our ability to provide fully
entitled, shovel-ready land parcels to support buildings of any size, including
buildings one million square feet or larger, can provide us with a potential
marketing advantage. Our marketing efforts target the Inland Empire region of
Southern California, the Santa Clarita Valley of northern Los Angeles County,
the northern part of the San Fernando Valley - due to the limited availability
of new product and high real estate costs in these locations, and the San
Joaquin Valley of California. The Company continues to analyze the market and
evaluate expansions of industrial buildings for lease either on our own or in
partnerships, as we have done with the buildings developed within our joint
ventures.

A potential disadvantage to our development strategy is our distance from the
ports of Los Angeles and Long Beach in comparison to the warehouse/distribution
centers located in the Inland Empire, a large industrial area located east of
Los Angeles, which continues its expansion eastward beyond Riverside and San
Bernardino, to include Perris, Moreno Valley, and Beaumont. As development in
the Inland Empire continues to move east and farther away from the ports, the
potential
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the inconvenience of our remoteness from the ports is mitigated. Strong demand for large distribution facilities is pushing development further east in search of large licensed parcels.

During the quarter ended March 31, 2022, vacancy rates in the Inland Empire
dipped another 20 basis points to a historical low of 0.3%, leading to an
increase in lease rate of 18.7%, both setting new records when compared to the
fourth quarter of 2021. Demand for Inland Empire logistics space continues to be
strong, as net absorption reached 3.1 million square feet. As lease rates
increase in the Inland Empire, we may experience greater pricing advantages due
to our lower land basis.

During the quarter ended March 31, 2022, vacancy rates in the San Fernando
Valley and Ventura County were unchanged at 0.5% quarter over quarter and 120
basis points below its mark from one year ago. Rents are at $1.16 square feet,
which increased by 5% over the fourth quarter of 2021.

Industrial vacancy rates are expected to remain low, and industrial users
seeking larger spaces are going further north into neighboring Kern County, and
particularly, TRCC, which has attracted increased attention as market conditions
continue to tighten. Additionally, TRCC is in a position to capture tenant
awareness due to our ability to provide a competitive alternative for users in
the Inland Empire and the Santa Clarita Valley. The Company's TRC-MRC 4 joint
venture is currently constructing a 629,274 square foot industrial building
while Scannell Properties, a third-party land purchaser, is building a 252,000
square foot industrial building.

We expect our commercial/industrial real estate development segment to continue
to experience costs, net of amounts capitalized, primarily related to
professional service fees, marketing costs, commissions, planning costs, and
staffing costs as we continue to pursue development opportunities. These costs
are expected to remain consistent with current levels of expense with any
variability in future costs tied to specific absorption transactions in any
given year.

The actual timing and completion of development is difficult to predict due to
the uncertainties of the market. Infrastructure development and marketing
activities and costs could continue to increase over several years as we develop
our land holdings. We will also continue to evaluate land resources to determine
the highest and best uses for our land holdings. Future land sales are dependent
on market circumstances and specific opportunities. Our goal in the future is to
increase land value and create future revenue growth through planning and
development of commercial and industrial properties.

Real Estate – Resort/Residential:

We are in the preliminary stages of real estate development for this segment; therefore, no revenue or profit is attributed to this segment.

Resort/residential real estate development segment expenses were $423,000 for
the three months ended March 31, 2022, a decrease of $130,000, or 24%, from
$553,000 for the three months ended March 31, 2021. The decrease is attributed
to additional payroll capitalized to qualifying real estate development
projects.

Our long-term business plan of developing the communities of MV, Centennial, and
Grapevine remains unchanged. As home buyer trends change in California to a more
suburban orientation and the economy stabilizes, we believe the perception of
land values will continue to improve. Long-term macro fundamentals, primarily
California's population growth and household formation will also support housing
demand in our region. California also has a significant documented housing
shortage, which we believe our communities will help ease as the population base
within California continues to grow. Most of the expenditures and capital
investment to be incurred within our resort/residential real estate segment are
expected to continue to focus on the mixed use master planned communities of
Centennial, Grapevine, and Mountain Village.

•Centennial - the approved Centennial specific plan includes 19,333 residential
units and more than 10.1 million square feet of commercial space. The Company is
working with the County of Los Angeles to address litigation filed in the Los
Angeles Superior Court. See Note 12 (Commitments and Contingencies) of the Notes
to Unaudited Consolidated Financial Statements for further discussion.

•Grapevine - an 8,010-acre development area located on the San Joaquin Valley
floor area of our lands, adjacent to TRCC. Upon completion of Grapevine, the
community will include 12,000 homes, 5.1 million square feet for commercial
development, and more than 3,367 acres of open space and parks.

•MV - a fully entitled project that obtained final map approvals in 2021 for 401
residential lots and parcels for hospitality, amenities, and public uses. The
timing of the MV development in the coming years will depend on the strength of
both the economy and the real estate market, including both primary and second
home markets. In moving the project forward, we will focus on consumer and
market research studies, fine tuning of development business plans.

•Over the next several years, we expect to explore funding opportunities for the
future development of our projects. Such funding opportunities could come from a
variety of sources, such as joint ventures with financial partners, debt
financing, or the Company's issuance of additional common stock.
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Mineral Resources:

                                         Three Months Ended March 31,                             Change
($ in thousands)                          2022                    2021                  $                      %
Mineral resources revenues
Oil and gas                        $            274          $       174          $       100                      57  %
Cement                                          583                  466                  117                      25  %
Rock aggregate                                  251                  258                   (7)                     (3) %
Exploration leases                               43                   25                   18                      72  %
Water Sales                                  10,157                6,252                3,905                      62  %
Reimbursables and other                         660                    1                  659                  65,900  %

Total revenue from mineral resources $11,968 $7,176

       $     4,792                      67  %

Total Mineral Resource Expenditures $7,157 $5,047

      $     2,110                      42  %
Operating income from mineral
resources                          $          4,811          $     2,129          $     2,682                     126  %



•Mineral resources segment revenues were $11,968,000 for the three months ended
March 31, 2022, an increase of $4,792,000, or 67%, from $7,176,000 for the three
months ended March 31, 2021. The dry 2021/2022 winter diminished water
availability in California and eventually resulted in a SWP allocation of 5%. As
a result, the Company generated $3,905,000 in additional water sales during the
quarter ended March 31, 2022. Comparatively the Company sold 6,970 and 5,881
acre-feet of water as of March 31, 2022 and 2021, respectively. The remainder of
the increase is attributed to the timing of property tax reimbursements from our
mineral leases.

•Mineral resources segment expenses were $7,157,000 for the three months ended
March 31, 2022, an increase of $2,110,000, or 42%, from $5,047,000 for the three
months ended March 31, 2021. This increase in expenses is primarily attributed
to an increase in water cost of sales resulting from the increased water sales
volumes along with the prices associated with the mix of water sold.

As anticipated changes arise in the future related to groundwater management in
California, such as limits on groundwater pumping in over drafted water basins
outside of our lands, we believe that our water assets, including water banking
operations, ground water recharge programs, and access to water contracts like
those we have purchased in the past, will become even more important and
valuable in servicing our projects and providing opportunities for water sales
to third parties. With 2021 and the first quarter of 2022 being drought periods,
local water market participants had few alternative water sources. Current
forecasts indicate that this trend may continue beyond the first quarter of
2022, which may lead to favorable water sales opportunities.

The price per barrel of oil has increased over 42% from December 31, 2021
levels. California Resources Corporation, or CRC, our largest oil royalty tenant
currently has 13 wells in production, with the expectation of returning more
wells into production in the near future. So far in 2022, we have seen a small
increase in oil production. Prices for oil, natural gas fluctuate in response to
relatively minor changes in supply and demand, market uncertainty and a variety
of additional factors that are beyond our control, such as: changes in domestic
and global supply and demand, domestic and global inventory levels, political
and regulatory conditions in California, and international disputes such as
current conflicts in Eastern Europe.
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Farming:

                                         Three Months Ended March 31,                   Change
  ($ in thousands)                            2022                    2021          $           %
  Farming revenues
  Almonds                        $            483                   $   304      $  179         59  %
  Pistachios                                    -                        14      $  (14)      (100) %
  Wine grapes                                   -                        16      $  (16)      (100) %
  Hay                                         114                       129         (15)       (12) %
  Other                                        58                       144         (86)       (60) %
  Total farming revenues         $            655                   $   607      $   48          8  %
  Total farming expenses         $          1,762                   $ 1,478      $  284         19  %
  Operating loss from farming    $         (1,107)                  $ 

(871) ($236) 27%


•Farming segment revenues were $655,000 for the three months ended March 31,
2022, an increase of $48,000, or 8%, from $607,000 during the same period in
2021. The improvement is primarily attributed to an $185,000 increase in almond
revenues. Comparatively, we sold 269,000 and 161,000 pounds of almonds as of
March 31, 2022 and 2021, respectively. This increase was offset by a $74,000
decline in water usage reimbursements associated with a farmland lease.

•Farming segment expenses were $1,762,000 for the three months ended March 31,
2022, an increase of $284,000, or 19%, from $1,478,000 during the same period in
2021. The increase in expenses resulted from higher fixed water costs resulting
from increased costs associated with maintaining local water district
infrastructure.

Our almond, pistachio, and wine grape crop sales are highly seasonal with most
of our sales occurring during the third and fourth quarters. Nut and grape crop
markets are particularly sensitive to the size of each year's world crop and the
demand for those crops. As witnessed in 2020, large crop yields in California
and abroad can rapidly depress prices. Tariffs from India, which is a major
customer of almonds and pistachios, can make American products less competitive
and push customers to switch to another producing country.

Weather conditions can also impact the number of tree and vine dormant hours,
which are integral to tree and vine growth. We will not know the impact of
current weather conditions on 2022 production until the summer of 2022. Thus
far, we have experienced a warm winter, which reduces the number of chilling
hours for our pistachio and almond trees. In the past, this has had a very
adverse effect on pistachio yields. The current SWP allocation of 5% alone is
inadequate for our farming needs. As such, management will use a portion of the
Company's water sources to cover any shortfall and may incur additional water
delivery charges, which will increase overall 2022 crop production costs.

Labor shortages are increasing the cost of labor for the Company's farming
segment, while supply chain disruptions such as shortages of drivers for
trucking companies and availability of food grade containers are impacting our
ability to deliver goods to customers. Because a majority of the Company's
almonds are sold to customers in India and China, it is very likely that there
will be continued sales delays given the current disruption in the global supply
chain network. The Company, along with the rest of the farming industry, is
experiencing increased costs for chemicals, herbicides and fertilizers. For the
remainder of 2022, we expect these issues to have an adverse effect on the
Company's farming operations.

Lastly, the impact of state ground water management laws on new plantings and
continuing crop production remains unknown. Water delivery and water
availability continues to be a long-term concern within California. Any
limitation of delivery of SWP water and the absence of available alternatives
during drought periods could potentially cause permanent damage to orchards and
vineyards throughout California. While this could impact us, we believe we have
sufficient water resources available to meet our requirements for the next crop
year.
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Ranch Operations:

                                           Three Months Ended March 31,                            Change
($ in thousands)                             2022                   2021                  $                     %
Ranch Operations revenues
Game management and other 1           $           702          $       646          $        56                     9  %
Grazing                                           346                  397                  (51)                  (13) %

Total revenue from ranch operations $1,048 $1,043

         $         5                     -  %

Total Ranch Operating Expenses $1,315 $1,187

         $       128                    11  %

Operating loss from ranch operation $ (267) $ (144)

         $      (123)                   85  %

1 Game management and other income includes income from hunting, filming, the High Desert Game Club (a leading upland bird hunting club) and other ancillary activities.



•Ranch operations revenues were $1,048,000 for the three months ended March 31,
2022, an increase of $5,000, or 0%, from $1,043,000 for the same period in 2021.
The fluctuation is in line with expectations

•Ranch operations expenses were $1,315,000 for the three months ended March 31,
2022, an increase of $128,000, or 11%, from $1,187,000 for the same period in
2021. This increase is primarily attributed to an increase in repairs and
maintenance costs resulting from a shift in business strategy. Historically, the
Company has maintained property grounds using internal sources, during 2022 we
began outsourcing this effort which is attributing to the aforementioned
increase in repairs and maintenance costs during the quarter.

Companies and others:

Corporate general and administrative costs were $2,415,000 for the three months
ended March 31, 2022, an increase of $124,000, or 5%, from $2,291,000 for the
same period in 2021. The increase in 2022 is attributed to the fact that the
Company did not have an in-house counsel during the first quarter of 2021.

On November 2021the Company’s 18-19 West joint venture sold its land for
$15,213,000. In 2022, the Company received excess distributions and recognized long-term deferred gains, associated with the 18-19 West joint venture of
$925,000.

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Joint Ventures:

                                        Three Months Ended March 31,                              Change
($ in thousands)                          2022                    2021                  $                      %
Equity in earnings (loss)
Petro Travel Plaza Holdings, LLC  $           1,161          $       146          $     1,015                      695  %
Five West Parcel, LLC                             -                    -                    -                        -  %
18-19 West, LLC                                   -                  (17)                  17                     (100) %
TRCC/Rock Outlet Center, LLC                   (207)                (344)                 137                      (40) %
TRC-MRC 1, LLC                                    9                   43                  (34)                     (79) %
TRC-MRC 2, LLC                                  172                  168                    4                        2  %
TRC-MRC 3, LLC                                   79                  (55)                 134                     (244) %
TRC-MRC 4, LLC                                   (1)                   -                   (1)                     100  %
Total equity in earnings          $           1,213          $       (59)         $     1,272                   (2,156) %



•Equity in earnings were $1,213,000 for the three months ended March 31, 2022,
an increase of $1,272,000, from a loss of $59,000 during the same period in
2021. The improvement is primarily attributed to the Company's Petro joint
venture that saw an increase in overall traffic and fuel sales volumes when
compared to the prior year. Additionally, the joint venture's full service
restaurants were open during the first quarter of 2022, but were closed due to
COVID-19 mandates during the same period in 2021.

Please refer to the “Non-GAAP Financial Measures” section for a more in-depth financial discussion of the results of our joint ventures.

General outlook

The operations of the Company are seasonal and future results of operations
cannot reliably be predicted based on quarterly results. Historically, the
Company's largest percentages of farming revenues are recognized during the
third and fourth quarters of the fiscal year. Real estate activity and leasing
activities are dependent on market circumstances and specific opportunities and
therefore are difficult to predict from period to period.

For further discussion of the risks and uncertainties that could potentially
adversely affect us, please refer to Part I, Item 7 - "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2021, or Annual
Report, and to Part I, Item 1A - "Risk Factors" of our Annual Report. We
continue to be involved in various legal proceedings related to leased acreage.
For a further discussion, please refer to Note 12 (Commitments and
Contingencies) of the Notes to Unaudited Consolidated Financial Statements in
this report.

Income Taxes

For the three months ended March 31, 2022, the Company had net income tax
expense of $3,046,000 compared to $21,000 for the three months ended March 31,
2021. The effective tax rates approximated 41% and -2% for the three months
ended March 31, 2022 and 2021, respectively. As of March 31, 2022, income tax
payables were $4,591,000. The Company classifies interest and penalties incurred
on tax payments as income tax expenses. The Company's effective tax rates were
higher than statutory rates primarily because permanent differences related to
Section 162(m) limitations and discrete tax expense associated with stock
compensation. The Section 162(m) compensation deduction limitations occurred due
to changes in tax law arising from the 2017 Tax Cuts Jobs Act. The discrete item
was triggered when stock grants were issued to participants at a price less than
the original grant price, causing a deferred tax shortfall. The shortfall
recognized during the quarter represents the reversal of excess deferred tax
assets recognized in prior periods. The recognition of the shortfall is not
anticipated to have a material impact on the Company's current income tax
payable.

Cash flow and liquidity

Our financial position allows us to pursue our strategies of land entitlement,
development, and conservation. Accordingly, we have established well-defined
priorities for our available cash, including investing in core operating
segments to achieve profitable future growth. We have historically funded our
operations with cash flows from operating activities, investment proceeds, and
short-term borrowings from our bank credit facilities. In the past, we have also
issued common stock and used the proceeds for capital investment activities.

To enhance shareholder value over the long-term, we expect to continue to make
investments in our real estate segments to secure land entitlement approvals,
build infrastructure for our developments, provide adequate water supplies, and
provide
                                       33
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funds for general land development activities. Within our farming segment, we
intend to make investments as needed to improve efficiency and add capacity to
its operations when it is profitable to do so.

Our cash, cash equivalents and marketable securities totaled $56,242,000 as of
March 31, 2022, an increase of $9,064,000 from $47,178,000 as of December 31,
2021.

The following table shows our cash flow activities for the three months ended
March 31,

(in thousands)                2022          2021
Operating activities       $  7,984      $   3,714
Investing activities       $ (5,243)     $ (11,679)
Financing activities       $ (2,231)     $  (2,032)



Operating Activities

During the first three months of 2022, the Company’s activities provided
$7,984,000 mainly due to profit distributions from unconsolidated joint ventures.

During the first three months of 2021, the Company’s activities provided
$3,714,000. The main driver included collection of outstanding receivables.

Investing activities

During the first three months of 2022, investing activities used $5,243,000. The
Company made capital expenditures, inclusive of capitalized interest and payroll
(exclusive of stock compensation), of $4,432,000, which includes predevelopment
activities for our master planned communities; $517,000 consisting of permitting
efforts for MV; $156,000 consisting of permitting efforts for Grapevine, and
costs related to litigation defense for Centennial of $1,274,000. At TRCC, we
spent $642,000 on infrastructure improvements, qualifying costs related to land
development and the residential community at TRCC-East. Within our farming
segment, we spent $1,673,000 which includes cultural costs for orchards not
currently in production and replacing machinery and equipment. Lastly, the
Company used $941,000 to acquire water assets.

During the first three months of 2021, investing activities used $11,679,000.
The Company made capital expenditures, inclusive of capitalized interest and
payroll (exclusive of stock compensation), of $5,218,000, which includes
predevelopment activities for our master planned communities; $1,064,000
consisting of planning and permitting primarily related to the preparation of
final maps for Phase 1 of MV; expenditures relating to litigation of $293,000
for Grapevine, and costs related to litigation defense for Centennial of
$529,000. At TRCC, we spent $721,000 on water treatment infrastructure
improvements and road improvements tied to the ongoing development of the
industrial building currently under construction at TRCC-East. Within our
farming segment, we spent $2,178,000, which includes cultural costs for orchards
not currently in production and replacing machinery and equipment. We also
invested $5,715,000 in marketable securities. Lastly, the Company used
$1,653,000 to acquire long-term water assets.

As we move forward, we anticipate we will continue to use cash from operations,
proceeds from the maturity of securities, and anticipated distributions from
joint ventures to fund real estate project investments, including the
investments summarized below.

Our estimated capital investment, inclusive of capitalized interest and payroll,
for the remainder of 2022 is primarily related to our real estate projects.
These estimated investments include approximately $12,074,000 of infrastructure
development at TRCC-East to support continued commercial retail and industrial
development and to expand water facilities to support future anticipated
absorption. We also plan to invest approximately $1,664,000 for cultural costs
tied to new almond orchards and vineyards, and to replace farm equipment. The
farm investments are part of a long-term farm management program to redevelop
declining orchards and vineyards to maintain and improve future farm revenues.
Lastly, we expect to invest up to $6,566,000 for land planning,
litigation/appeals, federal and state agency permitting activities, and
development activities at MV, Centennial, and Grapevine during the remainder of
2022.

We capitalize interest cost as a cost of the project only during the period for
which activities necessary to prepare an asset for its intended use are ongoing,
provided expenditures for the asset have been made and interest cost has been
incurred. Capitalized interest for the three months ended March 31, 2022 and
2021, was $579,000 and $624,000, respectively, and is classified within real
estate development. We also capitalized payroll costs related to development,
pre-construction, and construction projects which aggregated $719,000 and
$519,000 for the three months ended March 31, 2022 and 2021, respectively.
Expenditures for repairs and maintenance are expensed as incurred.
                                       34
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Fundraising activities

During the first three months of 2022, financing activities used $2,231,000,
which was attributable to long-term debt service of $1,109,000 and tax payments
on vested share grants of $1,122,000.

During the first three months of 2021, financing activities used $2,032,000,
which was attributable to long-term debt service of $1,066,000 and tax payments
on vested share grants of $966,000.

It is difficult to accurately predict cash flows due to the nature of our
businesses and fluctuating economic conditions. Our earnings and cash flows will
be affected from period to period by the commodity nature of our farming and
mineral operations, the timing of sales and leases of property within our
development projects, and the beginning of development within our residential
projects. The timing of sales and leases within our development projects is
difficult to predict due to the time necessary to complete the development
process and negotiate sales or lease contracts. Often, the timing aspect of land
development can lead to certain years or periods having different earnings than
comparable periods. Based on the Company's experience, the Company believes it
will have adequate cash flows, cash balances, and availability on our line of
credit (discussed below) over the next twelve months to fund internal
operations. As we move forward with the completion of our litigation, permitting
and engineering design for our master planned communities and prepare to move
into the development stage, we will need to secure additional funding through
the issuance of equity and secure other forms of financing such as joint
ventures and possibly debt financing.

We continuously evaluate our short-term and long-term capital investment needs.
Based on the timing of capital investments, we may supplement our current cash,
marketable securities, and operational funding sources through the sale of
common stock and the incurrence of additional debt.

Capital structure and financial situation

To March 31, 2022total capitalization at book value was $514,556,000made up of $51,674,000 debt and $462,882,000 equity, which translates into a debt to total capitalization ratio of approximately 10.0%.

On October 13, 2014, the Company, as borrower, entered into an Amended and
Restated Credit Agreement, a Term Note and a Revolving Line of Credit Note, with
Wells Fargo, or collectively the Credit Facility. The Credit Facility added a
$70,000,000 term loan, or Term Loan, to the then existing $30,000,000 revolving
line of credit, or RLC. In August 2019, the Company amended the Term Note
(Amended Term Note) and extended its maturity to June 2029 and amended the RLC
to expand the capacity from $30,000,000 to $35,000,000 and extend the maturity
to October 5, 2024.

The Amended Term Note had a $49,790,000 balance as of March 31, 2022. The
interest rate per annum applicable to the Amended Term Loan is LIBOR (as defined
in the Amended Term Note) plus a margin of 170 basis points. The interest rate
for the term of the Amended Term Note has been fixed through the use of an
interest rate swap at a rate of 4.16%. The Amended Term Note requires monthly
amortization payments pursuant to a schedule set forth in the Amended Term Note,
with the final outstanding principal amount due June 5, 2029. The Amended Credit
Facility is secured by the Company's farmland and farm assets, which include
equipment, crops and crop receivables; the PEF power plant lease and lease site;
and related accounts and other rights to payment and inventory.

The RLC had no outstanding balance as of March 31, 2022 and December 31, 2021.
At the Company's option, the interest rate on this line of credit can float at
1.50% over a selected LIBOR rate or can be fixed at 1.50% above LIBOR for a
fixed rate term. During the term of this RLC (which matures in October 2024),
the Company can borrow at any time and partially or wholly repay any outstanding
borrowings and then re-borrow, as necessary.

Any future borrowings under the RLC are expected to be used for ongoing working
capital requirements and other general corporate purposes. To maintain
availability of funds under the RLC, undrawn amounts under the RLC will accrue a
commitment fee of 10 basis points per annum. The Company's ability to borrow
additional funds in the future under the RLC is subject to compliance with
certain financial covenants and making certain representations and warranties,
which are typical in this type of borrowing arrangement.

The Amended Credit Facility requires compliance with three financial covenants:
(a) total liabilities divided by tangible net worth not greater than 0.75 to 1.0
at each quarter end; (b) a debt service coverage ratio not less than 1.25 to
1.00 as of each quarter end on a rolling four quarter basis; and (c) maintain
liquid assets equal to or greater than $20,000,000. At March 31, 2022 and
December 31, 2021, the Company was in compliance with those financial covenants.

The Amended Credit Facility also contains customary negative covenants which limit TRC’s ability to, among other things, make capital expenditures, incur indebtedness and issue guarantees, complete the sale, acquisition or merger of certain assets, to make investments, to pay dividends or to repurchase shares, or to incur liens on all assets.

The Amended Credit Facility contains customary events of default, including:
failure to make required payments; failure to comply with terms of the Amended
Credit Facility; bankruptcy and insolvency; and a change in control without
consent of bank
                                       35
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(which consent will not be unreasonably withheld). The Amended Credit Facility
contains other customary terms and conditions, including representations and
warranties, which are typical for credit facilities of this type.

The Company also has a $4,750,000 promissory note agreement whose principal and
interest due monthly began October 1, 2013. The interest rate on this promissory
note is 4.25% per annum, with principal and interest payments ending on
September 1, 2028. The balance as of March 31, 2022 was $1,884,000.

Current and future capital resource requirements will be provided primarily from
current cash and marketable securities, cash flow from ongoing operations,
distributions from joint ventures, proceeds from the sale of developed and
undeveloped land parcels, potential sales of assets, additional use of debt or
drawdowns against our line of credit, proceeds from the reimbursement of public
infrastructure costs through CFD bond debt (described below under "Off-Balance
Sheet Arrangements"), and the issuance of additional common stock.

In May 2019, we filed an updated shelf registration statement on Form S-3, which
went effective in May 2019. Under the shelf registration statement, we may offer
and sell in the future one or more offerings not to exceed $200,000,000, common
stock, preferred stock, debt securities, warrants or any combination of the
foregoing. The shelf registration allows for efficient and timely access to
capital markets and when combined with our other potential funding sources just
noted, provides us with a variety of capital funding options that can then be
used and appropriately matched to the funding needs of the Company.

Although we have a strong liquidity position at March 31, 2022 with $56,242,000
in cash and securities and $35,000,000 available on our RLC to meet any
short-term liquidity needs, we have taken steps to maximize positive cash flow,
in case a lack of liquidity in the economy limits our access to third party
funding by responsibly limiting cash expenditures to the extent practical. See
Note 3 (Marketable Securities) and Note 7 (Line of Credit and Long-Term Debt) of
the Notes to Unaudited Consolidated Financial Statements for more information.

We continue to expect that substantial investments will be required to develop
our land assets. To meet these capital requirements, we may need to secure
additional debt financing and continue to renew our existing credit facilities.
In addition to debt financing, we will use other capital alternatives such as
joint ventures with financial partners, sales of assets, and the issuance of
common stock. We will use a combination of the above funding sources to properly
match funding requirements with the assets or development project being funded.
There is no assurance that we can obtain financing or that we can obtain
financing at favorable terms. We believe we have adequate capital resources to
fund our cash needs and our capital investment requirements in the near-term as
described earlier in the cash flow and liquidity discussions.

Cash contractual obligations

The following table summarizes our contractual cash obligations and commercial
commitments as of March 31, 2022, to be paid over the next five years and
thereafter:

                                                                            Payments Due by Period
(In thousands)                            Total            One Year or Less          Years 2-3          Years 4-5          Thereafter
Contractual Obligations:
Estimated water payments               $ 277,288          $         11,632          $  24,321          $  25,804          $  215,531
Long-term debt                            51,674                     4,531              9,700             10,569              26,874
Interest on long-term debt                10,083                     2,051              3,513              2,668               1,851

Cash contract commitments                  8,850                     5,605              1,656                518               1,071
Defined Benefit Plan                       4,568                       317                712                973               2,566
SERP                                       5,099                       526                997              1,115               2,461
Financing fees                               163                       163                  -                  -                   -

Total contractual obligations $357,725 $24,825

$40,899 $41,647 $250,354


The categories above include purchase obligations and other long-term
liabilities reflected on our balance sheet under GAAP. We define a "purchase
obligation" a "an agreement to purchase goods or services that is enforceable
and legally binding on the registrant that specifies all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or
variable price provisions; and the approximate timing of the transaction." Based
on this definition, the table above includes only those contracts that include
fixed or minimum obligations. It does not include normal purchases, which are
made in the ordinary course of business.



                                       36
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Estimated water payments include the Nickel Family, LLC water contract, which
obligates us to purchase 6,693 acre-feet of water annually through 2044 and SWP
contracts with Wheeler Ridge Maricopa Water Storage District, TCWD, Tulare Lake
Basin Water Storage District, and Dudley-Ridge Water Storage District. These
contracts for the supply of future water run through 2035. Please refer to Note
5 (Long-Term Water Assets) of the Notes to Consolidated Financial Statements for
additional information regarding water assets.

Our cash contract commitments consist of contracts in various stages of
completion related to infrastructure development within our industrial
developments and entitlement costs related to our industrial and residential
development projects. Also included in the cash contract commitments are
operating lease obligations. Our operating lease obligations are for office
equipment. At the present time, we do not have any capital lease obligations or
purchase obligations outstanding.

As discussed in Note 13 (Retirement Plans) of the Notes to Unaudited
Consolidated Financial Statements, we have long-term liabilities for deferred
employee compensation, including pension and supplemental retirement plans.
Payments in the above table reflect estimates of future defined benefit plan
contributions from the Company to the plan trust, estimates of payments to
employees from the plan trust, and estimates of future payments to employees
from the Company that are in the SERP program. We expect to contribute $165,000
to our defined benefit plan in 2022.


                                       37
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Off-balance sheet arrangements

The following table sets out the potential obligations we have in respect of certain bonds issued by CFDs:

                                                                      Amount of Commitment Expiration Per Period
($ in thousands)                              Total               < 1 year           2 -3 Years           4 -5 Years           After 5 Years
Other Commercial Commitments:
Standby letter of credit                 $       4,393          $   4,393          $         -          $         -          $            -

Total other trade commitments $4,393 $4,393

        $         -          $         -          $            -


The Tejon Ranch Public Facilities Financing Authority, or TRPFFA, is a joint
powers authority formed by Kern County and TCWD to finance public infrastructure
within the Company's Kern County developments. TRPFFA created two CFDs, the West
CFD and the East CFD. The West CFD has placed liens on 420 acres of the
Company's land to secure payment of special taxes related to $28,620,000 of bond
debt sold by TRPFFA for TRCC-West. The East CFD has placed liens on 1,931 acres
of the Company's land to secure payments of special taxes related to $75,965,000
of bond debt sold by TRPFFA for TRCC-East. At TRCC-West, the West CFD has no
additional bond debt approved for issuance. At TRCC-East, the East CFD has
approximately $44,035,000 of additional bond debt authorized by TRPFFA.

In connection with the sale of the bonds there is a standby letter of credit for
$4,393,000 related to the issuance of East CFD bonds. The standby letter of
credit is in place to provide additional credit enhancement and cover
approximately two years' worth of interest on the outstanding bonds. This letter
of credit will not be drawn upon unless the Company, as the largest landowner in
the CFD, fails to make its property tax payments. As development occurs within
TRCC-East, there is a mechanism in the bond documents to reduce the amount of
the letter of credit. The Company believes as of March 31, 2022, that the letter
of credit will likely never be drawn upon. This letter of credit is for a
two-year period and will be renewed in two-year intervals as necessary. The
annual cost related to the letter of credit is approximately $68,000. The tax
assessment of each individual property sold or leased within each CFD is not
determinable at this time because it is based on the current tax rate of the
property at the time of sale or at the time it is leased to a third-party.
Accordingly, the Company is not required to recognize an obligation as of March
31, 2022.

As of March 31, 2022, aggregate outstanding debt of unconsolidated joint
ventures was $148,679,000. We provided a guarantee on $134,022,000 of this debt,
relating to our joint ventures with Rockefeller and Majestic. Because of
positive cash flow generation within the Rockefeller and Majestic joint
ventures, we, as of March 31, 2022, do not expect the guarantee to be called
upon. We do not provide a guarantee on the $14,657,000 of debt related to our
joint venture with TA/Petro.
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Non-GAAP Financial Measures

EBITDA represents earnings before interest, taxes, depreciation, and
amortization, a non-GAAP financial measure, and is used by us and others as a
supplemental measure of performance. Adjusted EBITDA is used to assess the
performance of our core operations, for financial and operational decision
making, and as a supplemental or additional means of evaluating period-to-period
comparisons on a consistent basis. Adjusted EBITDA is calculated as EBITDA,
excluding stock compensation expense. We believe Adjusted EBITDA provides
investors relevant and useful information because it permits investors to view
income from our operations on an unleveraged basis before the effects of taxes,
depreciation and amortization, and stock compensation expense. By excluding
interest expense and income, EBITDA and Adjusted EBITDA allow investors to
measure our performance independent of our capital structure and indebtedness
and, therefore, allow for a more meaningful comparison of our performance to
that of other companies, both in the real estate industry and in other
industries. We believe that excluding charges related to share-based
compensation facilitates a comparison of our operations across periods and among
other companies without the variances caused by different valuation
methodologies, the volatility of the expense (which depends on market forces
outside our control), and the assumptions and the variety of award types that a
company can use. EBITDA and Adjusted EBITDA have limitations as measures of our
performance. EBITDA and Adjusted EBITDA do not reflect our historical cash
expenditures or future cash requirements for capital expenditures or contractual
commitments. While EBITDA and Adjusted EBITDA are relevant and widely used
measures of performance, they do not represent net income or cash flows from
operations as defined by GAAP. Further, our computation of EBITDA and Adjusted
EBITDA may not be comparable to similar measures reported by other companies.

                                                                      Three Months Ended March 31,
($ in thousands)                                                        2022                   2021
Net income (loss)                                                $         4,314          $    (1,063)
Net income (loss) attributable to non-controlling interest                     7                   (8)
Net income (loss) attributable to common stockholders                      4,307               (1,055)
Interest, net
Consolidated                                                                 (17)                  (7)
Our share of interest expense from unconsolidated joint ventures             591                  624
Total interest, net                                                          574                  617
Income taxes                                                               3,046                   21
Depreciation and amortization:
Consolidated                                                                 967                  965

Our share of the amortization of unconsolidated joint ventures

                                                             1,149                1,175
Total depreciation and amortization                                        2,116                2,140
EBITDA                                                                    10,043                1,723
Stock compensation expense                                                 1,219                1,276
Adjusted EBITDA                                                  $        11,262          $     2,999


Net operating income (NOI) is a non-GAAP financial measure calculated as
operating income, the most directly comparable financial measure calculated and
presented in accordance with GAAP, excluding general and administrative
expenses, interest expense, depreciation and amortization, and gain or loss on
sales of real estate. We believe NOI provides useful information to investors
regarding our financial condition and results of operations because it primarily
reflects those income and expense items that are incurred at the property level.
Therefore, we believe NOI is a useful measure for evaluating the operating
performance of our real estate assets.

                                                                          Three Months Ended March 31,
($ in thousands)                                                           2022                   2021
Commercial/Industrial operating income                               $        4,613          $       676
Plus: Commercial/Industrial depreciation and amortization                       116                  116
Plus: General, administrative, cost of sales and other expenses               2,518                1,338
Less: Other revenues including land sales                                    (5,559)                (434)
Total Commercial/Industrial net operating income                     $      

1,688 $1,696

                                       39
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($ in thousands)                                                                 Three Months Ended March 31,
Net operating income                                                              2022                   2021
Pastoria Energy Facility                                                    $          993          $     1,012
TRCC                                                                                   304                  318
Communication leases                                                                   246                  221
Other commercial leases                                                                145                  145
Total Commercial/Industrial net operating income                            

$1,688 $1,696


The Company utilizes NOI of unconsolidated joint ventures as a measure of
financial or operating performance that is not specifically defined by GAAP. We
believe NOI of unconsolidated joint ventures provides investors with additional
information concerning operating performance of our unconsolidated joint
ventures. We also use this measure internally to monitor the operating
performance of our unconsolidated joint ventures. Our computation of this
non-GAAP measure may not be the same as similar measures reported by other
companies. This non-GAAP financial measure should not be considered as an
alternative to net income as a measure of the operating performance of our
unconsolidated joint ventures or to cash flows computed in accordance with GAAP
as a measure of liquidity, nor are they indicative of cash flows from operating
and financial activities of our unconsolidated joint ventures.

The following schedule reconciles net income of unconsolidated joint ventures to
NOI of unconsolidated joint ventures. Please refer to Note 15 (Investment in
Unconsolidated and Consolidated Joint Ventures) of the Notes to Unaudited
Consolidated Financial Statements for further discussion on joint ventures.

                                                                     Three Months Ended March 31,
($ in thousands)                                                      2022                   2021
Net income of unconsolidated joint ventures                     $        2,040          $      (167)
Interest expense of unconsolidated joint ventures                        1,166                1,232
Operating income of unconsolidated joint ventures                        3,206                1,065

Depreciation and amortization of non-consolidated joint ventures 2,143

                2,214
Net operating income of unconsolidated joint ventures           $        

5,349 $3,279

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