Alico Shifts to Real Estate After Citrus Exit
Alico, Inc. (NASDAQ:ALCO) is reinventing itself as a diversified Florida land and real estate company after winding down its legacy citrus business.
The transition follows two consecutive years of roughly $30 million in annual losses caused by citrus greening disease and severe hurricane damage.
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Land Value Gap
Management estimates the company's total land value between $650 million and $750 million, significantly exceeding its current market capitalization of about $300 million.
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This gap suggests the stock market has not fully recognized the worth of Alico's Florida land holdings.
Key Development and Leasing Plans
The company's near-term development asset is a Collier County project with initial plans for 4,500 homes in an East Village, potentially expanding to 9,000 homes pending final approvals.
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While exiting direct agricultural operations, Alico owns 46,000 acres across seven Florida counties and plans to lease 72% of this land to external citrus and non-citrus growers for steady rental income.
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The company has also highlighted major conservation commitments alongside securing enough financial flexibility to continue operations through at least fiscal 2028.
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