TRC: Zacks Company Report: Initiating coverage of the Tejon Ranch Company.

By Ian Gilson, PhD, CFA



Zacks Small-Cap Research has initiated research coverage on The Tejon Ranch Company (NYSE:TRC) with a target price of $18 a share.

The Tejon Ranch is 425 square miles of contiguous property to the north of the Los Angeles basin. From the Tejon Ranch Commerce Centre (TRCC) to Union Station Los Angeles it is 73 miles by road and takes about 75 minutes. To Santa Clarita it is 45 miles and, on average, can be run at over 65 mph with no problems.

Most of the commercial operations surround or are adjacent to Interstate 5, including two of the proposed residential real estate developments.

The prime business objective is maximizing shareholder value through monetization of the land based assets.

The company has four business segments, plus three residential real estate operations, and equity ownership in a number of unconsolidated operations. There are a total of 32 profit centers.

Most of the business segments have other businesses within the segment. Revenue and income for each segment is available on a quarterly basis, but operations within each segment are not.

The revenue and expenses for each segment are shown. Estimates are included in the financials later in the report.

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