Maui Land & Pineapple (MLP -0.75%), the landowner and developer behind West Maui’s Kapalua Resort and commercial properties, reported GAAP earnings for the first half of FY2025 on Aug. 14, 2025. The most notable update was a 103% year-over-year increase in GAAP revenue, reaching $10.4 million for the six months ended June 30, 2025, as both leasing and land development expanded. However, GAAP net loss ballooned to $9.6 million from $3.2 million a year ago for the six months ended June 30, 2025, mainly due to a one-time, non-cash pension charge related to the annuitization of retirement liabilities. There are no Wall Street estimates for comparison. Overall, the period was marked by strong operational progress partially masked by temporary expenses at the bottom line.
Business Overview and Recent Focus
Maui Land & Pineapple operates mainly by leasing commercial, industrial, and agricultural properties, developing and selling land, and providing resort amenities at Kapalua Resort. It owns approximately 22,300 acres on the island of Maui as of December 31, 2024, and continues efforts to realize more value from these holdings through new projects and asset sales.
Leasing is the company's largest and most stable revenue source, but it has increased focus on activating underused land for development or agriculture. Success depends on efficiently navigating government approval processes for land sales, maintaining high commercial property occupancy, and controlling development and operating costs. Resort amenities, though smaller, play a role in supporting its destination appeal.
Key Developments During the Quarter
Revenue growth was broad-based, with land development making exceptional progress during the six months ended June 30, 2025. The land development segment grew its GAAP revenue to $3.4 million in the first half of 2025, up from $0.2 million in the prior-year period. Most of this was driven by a $3.1 million GAAP contracting agreement with the State of Hawai‘i for the Honokeana Homes Relief Housing Project, where Maui Land & Pineapple handled infrastructure improvements in the first half of 2025. An additional $265,000 was generated from the sale of a non-strategic remnant parcel in Pukalani in Q2 2025, as part of its ongoing plan to sell smaller land holdings. However, costs on the housing project were nearly as high as revenues, so margins remain slim in this area for now, based on GAAP results for the Honokeana Homes Relief Housing Project during the period.
Leasing operations remained the primary revenue engine, growing to $6.4 million, up 46% in the first six months of 2025. Management attributed this to higher occupancy, rent adjustments to current market rates, and new leases for improved or previously dormant properties, including agricultural lands, as reflected in the leasing segment performance for the six months ended June 30, 2025. Leasing costs also rose 50.5% in the six months ended June 30, 2025, driven by higher insurance, increased repairs and salaries, and utilities needed to support new leases and property upgrades. Seventeen new leases were signed and commenced during the 12-month period from July 1, 2024, to June 30, 2025, increasing future recurring revenues.
The resort amenities segment, which includes club operations at Kapalua Resort, reported flat GAAP revenue of $0.54 million for the six months ended June 30, 2025, but continued to generate losses as costs rose and outpaced revenue.
A major factor in the large reported loss in Q2 2025 was a $7.5 million GAAP pension and post-retirement expense. Of this, $6.4 million was a non-cash GAAP charge related to annuitizing the legacy pension plan for the six months ended June 30, 2025. The company expects to report a corresponding non-cash gain in Q3 2025. Adjusted EBITDA (non-GAAP) improved slightly from last year but remained negative for the six months ended June 30, 2025, impacted by cash payments to terminate pension obligations. Cash and investments convertible to cash (non-GAAP) declined to $7.0 million as of June 30, 2025, from $9.5 million at December 31, 2024, as the company paid down pension liabilities and invested in new projects and agricultural ventures.
Looking Ahead
Management did not provide formal forward guidance for revenue, earnings per share, or segment outlooks in the earnings release. However, the filing noted an ongoing focus on maximizing the productivity of owned land, progressing commercial leasing, developing the Blue Weber agave agricultural venture, and continuing to market non-strategic land for sale. The company expects the outsized pension expense (GAAP, for the six months ended June 30, 2025) to be temporary and offset by a future comprehensive gain, though the effects on cash flow remain material in the short term.
Investors should continue to watch for new asset sales, successful lease commencements, and cash preservation efforts in coming quarters. The ability to navigate Maui’s land entitlement process and manage expenses, particularly in land development and leasing, will shape financial performance going forward.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
