Benjamin David Klieve

Benjamin David Klieve inquired about the Linco del Mar development, specifically asking about anticipated costs through 2026 and Limoneira's long-term vision for its development, including potential partnerships. He also sought clarity on what constitutes 'normalized pricing' for lemons given recent market shifts and identified sources of supply constraints for the upcoming year. Finally, Klieve asked for an early outlook on avocado volumes for fiscal year 2026.

Answer

EVP and CFO Mark Palamountain explained that Linco del Mar development costs are estimated at $3 million to $5 million over three to five years, primarily capitalized. President and CEO Harold Edwards added that Limoneira is currently leading the project, with two main value triggers: entitlement and subsequent development, at which point partnership options will be evaluated. Regarding lemons, Mark Palamountain noted August prices in the low $20s, attributing the rebound to East Coast shortages and European demand. He anticipates 20-30% supply shortages from Turkey and Spain in 2026, supporting higher prices and stability through the Sunkist partnership. For avocados, Harold Edwards indicated that 2026 volumes are expected to be similar to or less than 2025, with significant production growth projected for 2027.

Benjamin David Klieve asked about the anticipated costs and long-term development vision for the Linco del Mar property, including Limoneira's role in potential partnerships. He also inquired about expectations for normalized lemon pricing and identified supply constraints for the upcoming year, as well as a preliminary outlook for avocado volumes in fiscal year 2026.

Answer

Mark Palamountain detailed that Linco del Mar development costs are estimated at $3 million to $5 million over three to five years, primarily capitalized rather than expensed. Harold Edwards elaborated on two value triggers: entitlement (requiring CEQA, SOAR vote, and LAFCO annexation) and subsequent development, noting a successful partnership model with Lewis Group for Harvest at Limoneira. Regarding lemons, Mark Palamountain highlighted August prices in the low $20s, attributing recent improvements to East Coast shortages and European import shifts. He projected 20-30% shortages from Turkey and Spain in the next year due to weather, anticipating more stable pricing with the Sunkist partnership and prices potentially starting with a "two." For avocados, Harold Edwards indicated it's too early for a definitive 2026 forecast but suggested volumes might be similar to or less than 2025, with significant growth expected in 2027.

Benjamin David Klieve inquired about the anticipated costs associated with the Linco del Mar development, specifically regulatory and consulting expenses through 2026. He also asked about Limoneira's long-term vision for developing the property, including potential partnership structures. Additionally, Klieve sought clarification on what constitutes "normalized pricing" in the current lemon market and the expected supply constraints for the upcoming year. Finally, he asked for preliminary expectations regarding avocado volumes for fiscal year 2026.

Answer

Mark Palamountain, CFO, Treasurer & Corporate Secretary, explained that Linco del Mar development costs, estimated at $3 million to $5 million over three to five years, would primarily be capitalized rather than expensed through the income statement. Harold Edwards, President, CEO & Director, added that there would be two value triggers: entitlement and actual development, noting the successful partnership model with the Lewis Group for Harvest at Limoneira. Regarding lemons, Mark Palamountain highlighted a rebound in August pricing to the low $20s, attributing it to East Coast shortages and imports shifting to Europe. He cited anticipated 20-30% shortages in Spain and Turkey for next year due to weather events, which should support higher, more stable pricing, potentially with a "two" in front of it. For avocados, Harold Edwards stated it's premature for a definitive 2026 outlook but indicated volumes might be similar to or less than 2025, with a significant breakout year expected in 2027.

Benjamin David Klieve inquired about the Linco del Mar development, specifically asking about anticipated costs through 2026 and Limoneira's long-term vision for its development, including potential partnerships. He also sought clarity on what constitutes 'normalized pricing' for lemons given recent market shifts and identified sources of supply constraints for the upcoming year. Finally, Klieve asked for an early outlook on avocado volumes for fiscal year 2026.

Answer

EVP and CFO Mark Palamountain explained that Linco del Mar development costs are estimated at $3 million to $5 million over three to five years, primarily capitalized. President and CEO Harold Edwards added that Limoneira is currently leading the project, with two main value triggers: entitlement and subsequent development, at which point partnership options will be evaluated. Regarding lemons, Mark Palamountain noted August prices in the low $20s, attributing the rebound to East Coast shortages and European demand. He anticipates 20-30% supply shortages from Turkey and Spain in 2026, supporting higher prices and stability through the Sunkist partnership. For avocados, Harold Edwards indicated that 2026 volumes are expected to be similar to or less than 2025, with significant production growth projected for 2027.