T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
b u i l d i n g a f o u n d a t i o n
b u i l d i n g a f o u n d a t i o n
The word Foundation
carries significant weight at Tejon Ranch.
In a business sense, it is frequently used to
describe the underlying reasons for a com-
pany’s existence or the core values behind its
operation. In construction, it is used to
describe the base of concrete and steel upon
which a structure is built. For the majestic
oak trees that cover our land, their long deep
roots serve as their foundation. In all these
cases, it’s vitally important that the foundation
be solid and strong.
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
T O O U R
V A L U E D S H A R E H O L D E R S
At Tejon Ranch Co., we’ve built a foundation on our unparalleled assets, our
long-term strategy and our experienced, dedicated team. We believe our foun-
dation is solid, and strongly believe that it will be the basis for the creation of
meaningful shareholder value over the long term.
Tejon Ranch Co. owns a unique, valuable property – 270,000 acres of superbly
located prime California real estate – with a legacy spanning nearly two centuries.
The Ranch is an asset that cannot be replicated and represents a unique, long-
term investment opportunity. It is strategically and geographically positioned to
capitalize on California’s real estate market, with growth opportunities coming
from both Southern California and the central and northern reaches of the state.
Tejon Ranch’s rich resources, including prime farming and grazing land, mineral
deposits, oil and gas, extensive water rights, the intellectual property emanating
from its historic brand, and it’s unparalleled natural beauty, form the foundation
for diverse revenue streams, led by future residential, commercial and industrial
real estate development. All of this leads to increased shareholder value. Having
reserved up to 240,000 acres of the property for environmental conservation, the
Company has ensured that Tejon Ranch’s natural beauty will endure for future
residents, and the Company’s relationships with local governments and the
community are strong and growing.
p a g e
1
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
b u i l d i n g o n o u r m o m e n t u m
The development and monetization of such an array of assets require a compre-
hensive strategy and consistent execution. Our strategy has been, and continues
to be, to focus on real estate development, particularly the development of large
scale residential and mixed use communities, which represent the most significant
growth opportunity for the Company. These communities: Centennial at Tejon
Ranch, Mountain Village at Tejon Ranch and Grapevine at Tejon Ranch, will
provide our Company with a pipeline of long-term real estate projects.
As I reflect on 2015, and the meaningful progress we made in executing our overall
strategy, I would describe the year as one in which we built upon our strong foun-
dation and enhanced our potential for growth, both near term and long term.
Perhaps the most significant milestone as it relates to near-term impact is the
Board’s approval of the detailed business plan that will guide the ultimate devel-
opment and marketing of Mountain Village at Tejon Ranch, and its decision to
move forward with the processing of tentative tract maps for the initial phases of
the community. Preparing tract maps—both tentative and then final maps— is
the last regulatory hurdle that must be cleared before construction can begin.
The process itself requires us to prepare a series of specific reports and studies,
in addition to engineering and systems design. We are well underway with the
effort, which is expected to take about two years to complete. The tentative tract
maps will be reviewed and are ultimately required to be approved by the Kern
County Planning Commission. Engaging in this process sends a clear signal that
we are ready, willing and able to bring Mountain Village to market—as market
conditions warrant— and have a clear path to execution.
We reached another important milestone in 2015 when the Los Angeles County
Board of Supervisors approved a new Antelope Valley Plan, which provides the land
use designations and zoning we need for our large-scale community, Centennial at
Tejon Ranch. The next step is to submit a Specific Plan and circulate an environ-
mental impact report. We are working diligently on both and are targeting the end
p a g e
2
mountain village at tejon ranch
The Company is in the midst of preparing tract maps for its premiere residential/
resort community. Finalizing tract maps is the last regulatory step that must be
taken before construction can begin.
tejon ranch commerce center
The Outlets at Tejon is energizing new retail development at the Tejon Ranch
Commerce Center. This Pieology Pizzeria represents just one of the many new
establishments that have opened adjacent to the outlet center.
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
of 2016 for approval by Los Angeles County. The County controls the eventual
timeline, but we are working cooperatively together toward the 2016 goal. The
Specific Plan submitted for Centennial calls for 19,333 residential units and about
10.1 million square feet of commercial space.
On the Kern County side of the ranch, we are aiming to have our large-scale
community—Grapevine at Tejon Ranch—approved by the Board of Supervisors
in 2016. The County will be circulating the environmental impact report for
Grapevine and then scheduling meetings before the Planning Commission and
then the Supervisors. The plan presented to the County is for 12,000 - 14,000
residential units and 5.1 million square feet of commercial development.
In 2015 we also advanced our strategy at the Tejon Ranch Commerce Center
(TRCC). As we anticipated, the Outlets at Tejon, which opened on the east side of
TRCC in 2014, is proving to be a catalyst for increased traffic, revenue and new busi-
ness opportunities. The growing level of traffic exiting from Interstate 5 is driving
significant increases in volume at our TA/Petro joint venture. Our share in earnings
from the JV were up 29% in 2015 compared to 2014. Three new quick-serve food
offerings opened adjacent to the outlets in 2015, a Carl’s Jr., Starbucks and Pieology
Pizzeria, and two more—a Habit Burger and Baja Fresh—will open in the second
quarter of this year. All are generating new lease revenue for the Company.
In addition, the Board approved the expansion of our portfolio of industrial
buildings at TRCC, authorizing the 2016 construction of a 250,000 square foot
spec building. While most of the buildings and pads at TRCC are designed to
accommodate larger users like distribution centers, an analysis of the nearby Santa
Clarita/San Fernando Valley market indicates there is a real opportunity for build-
ings with a smaller footprint. Available space in that market is almost non-existent
and the real demand is in the 50,000 to 100,000 square foot range. The new spec
building at TRCC will be divisible and can house multiple users. This is another
example of the Company taking concrete steps to monetize its assets.
p a g e
5
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
w e l l p o s i t i o n e d f o r 2 0 1 6 a n d b e y o n d
The diversity of our business operations enables us to invest the cash flow gener-
ated from other operations, including farming, mineral resources and our various
joint ventures, into the entitlement and future development efforts of our resi-
dential communities. While we expect to engage capital partners to mitigate risk
once we begin development of our residential communities, having the ability to
fund the entitlement of the communities through existing cash flow and/or
future equity events is a distinct advantage.
In addition, we have been deepening the bench to ensure we have the internal
capabilities to manage the Company’s transformation into a fully integrated real
estate development business. We have an exciting opportunity to take the raw
land at our disposal and develop it into a monetizable real estate asset, and we
have the right team in place to execute on our strategy. In California, there are a
number of steps in the real estate development process, some driven by law and
regulation, others by what’s become common practice in the state. It’s also
important to understand that most of the steps are consecutive in that you
cannot proceed to the next step without completing the prior, though in certain
instances they can be concurrent. That said, California’s complex, costly and
time-consuming regulations create a high barrier to entry, and therefore also play
to our advantage. There are a limited number of locations in California where
large-scale real estate development can take place and a limited number of players
who can engage in the activity at this scale. Tejon Ranch is one of the select
locations in the state where large-scale residential development can and will
occur, and our Company is one of the few with the ability to capitalize on this
increasingly rare opportunity.
p a g e
6
foundation for growth
Just as the advent of spring signals a time for new growth, Tejon Ranch Co. is at an
exciting inflexion point. We believe we have the assets, the strategy and the team to
drive meaningful shareholder value over the long term.
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
s t e p s t o d e v e l o p m e n t
Here are the steps one must go through in California to transform raw land into
a monetizable real estate asset.
s Entitlement: Creating the plan, preparing the environmental impact report
and then gaining approval of both by the local governing body—City Council or
County Board of Supervisors.
s Securing state and federal permits: Various state and federal agencies have
jurisdiction over all or part of the project and one must obtain necessary permits
in order to begin construction. Some of the agencies include the State Department
of Fish and Wildlife, the Regional Water Quality Control Board, the US Fish and
Wildlife Service, and the US Army Corps of Engineers, among others.
s Tract maps: Final detailed maps showing exact locations of all lots and engi-
neering and systems infrastructure, including water and sewer.
s Weather the inevitable delays: When you’re executing your strategy within
a highly regulated framework, such as you encounter working in real estate devel-
opment in California, you must anticipate and be prepared for natural delays –
including those resulting from litigation.
We are at an exciting inflexion point for the Company, and look forward to shar-
ing our continued progress with our shareholders and the investment community.
We believe in our assets, our strategy to monetize those assets and in the high-
quality team we’ve assembled to continue the execution of that strategy to drive
meaningful shareholder value over the long term.
Thank you for your continued confidence as we build upon this strong founda-
tion for our next phase of growth.
Greg Bielli
President & CEO
p a g e
9
an irreplaceable asset
Tejon Ranch Co. owns a unique, valuable property – 270,000 acres of superbly
located prime California real estate—an asset that cannot be replicated and which
represents a long-term investment opportunity.
F I N A N C I A L H I G H L I G H T S
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
c o n s o l i d a t e d b a l a n c e s h e e t s
($ in thousands)
A s s e t s
Current Assets:
Cash and cash equivalents
Marketable securities - available-for-sale
Accounts receivable
Inventories
Prepaid expenses and other current assets
Total current assets
Real estate and improvements - held for lease, net
Real estate development (includes $84,194 at December 31, 2015 and $77,131 at
December 31, 2014)
Property and equipment, net
Investments in unconsolidated joint ventures
Long-term water assets
Deferred tax assets
Other assets
Total Assets
L i a b i l i t i e s a n d E q u i t y
Current Liabilities:
Trade accounts payable
Accrued liabilities and other
Income taxes payable
Deferred income
Revolving line of credit
Current maturities of long-term debt
Total current liabilities
Long-term debt, less current portion
Long-term deferred gains
Other liabilities
Total liabilities
Commitments and contingencies
Equity:
Tejon Ranch Co. Stockholders’ Equity
Common stock, $0.50 par value per share:
Authorized shares - 30,000,000
Issued and outstanding shares - 20,688,154 at December 31, 2015 and 20,636,478 at
December 31, 2014
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Total Tejon Ranch Co. Stockholders’ Equity
Non-controlling interest
Total equity
Total Liability and Equities
p a g e
1 2
$
2015
1,930
32,815
6,511
3,517
4,120
48,893
21,942
235,466
44,469
30,680
43,806
4,659
2,004
$ 431,919
$
3,252
3,492
1,237
1,525
—
815
10,321
73,223
3,816
13,251
100,611
December 31
2014
$
5,638
42,140
8,506
4,098
4,456
64,838
20,226
219,654
43,094
32,604
45,349
4,576
1,582
$ 431,923
$
3,347
2,774
1,703
1,164
6,850
244
16,082
74,023
3,683
13,802
107,590
10,344
216,803
(6,902)
71,389
291,634
39,674
331,308
431,919
$
10,318
212,763
(6,899)
68,439
284,621
39,712
324,333
$ 431,923
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
c o n s o l i d a t e d s t a t e m e n t s o f o p e r a t i o n
($ in thousands, except per share amounts)
R e v e n u e s :
Real estate - commercial/industrial
Mineral resources
Farming
Ranch operations
Total revenues
Costs and Expenses:
Real estate - commercial/industrial
Real estate - resort/residential
Mineral resources
Farming
Ranch operations
Corporate expenses
Total expenses
Operating (loss) income
Other Income:
Investment income
Other income
Total other income
(Loss) income from operations before equity in earnings of
unconsolidated joint ventures
Equity in earnings of unconsolidated joint ventures, net
Income before income tax expense
Income tax expense
Net income
Net (loss) income attributable to non-controlling interest
Net income attributable to common stockholders
Net income per share attributable to common stockholders,
basic
Net income per share attributable to common stockholders,
diluted
2015
8,272
15,116
23,836
3,923
51,147
6,694
2,349
7,396
18,984
6,112
12,808
54,343
(3,196)
528
381
909
(2,287)
6,324
4,037
1,125
2,912
(38)
2,950
0.14
0.14
$
$
$
$
Year Ended December 31
2013
2014
$
$
$
$
7,845
16,255
23,435
3,534
51,069
7,206
2,608
6,418
16,250
5,998
10,646
49,126
1,943
696
526
1,222
3,165
5,294
8,459
2,697
5,762
107
5,655
0.27
0.27
$
$
$
$
7,455
10,242
23,610
3,693
45,000
6,853
2,231
1,277
15,926
6,049
11,826
44,162
838
941
404
1,345
2,183
4,006
6,189
2,086
4,103
(62)
4,165
0.21
0.20
c o n s o l i d a t e d s t a t e m e n t s o f c o m p r e h e n s i v e i n c o m e ( l o s s )
($ in thousands)
Net income
Other comprehensive income/(loss):
Unrealized loss on available for sale securities
Benefit plan adjustments
Benefit plan reclassification for losses included in net income
SERP liability adjustments
Unrealized interest rate swap gains/(losses)
Other comprehensive (loss) income before taxes
Benefit (provision) for income taxes related to other
comprehensive loss items
Other comprehensive (loss) income
Comprehensive income
Comprehensive (loss) income attributable to non-controlling interests
Comprehensive income attributable to common stockholders
p a g e
1 3
2015
2,912
$
$
Year Ended December 31
2013
4,103
2014
5,762
$
(188)
(1,301)
536
234
678
(41)
38
(3)
2,909
(38)
2,947
$
(208)
(3,168)
407
(1,003)
(2,227)
(6,199)
2,644
(3,555)
2,207
107
2,100
$
(348)
2,218
—
1,098
—
2,968
(1,183)
1,785
5,888
(62)
5,950
$
Total
Equity
308,259
4,103
1,785
211
—
9,370
1,223
39,667
(62)
—
—
—
—
—
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
c o n s o l i d a t e d s t a t e m e n t s o f e q u i t y
Common
Stock Shares
Outstanding
Additional
Accumulated
Other
Paid-In Comprehensive
Capital Income (Loss)
Common
Stock
Total
Retained Stockholders’
Equity
Earnings
Non-
controlling
Interest
20,085,865
10,043
198,117
(5,118)
—
1,785
65,550
4,165
—
268,592
4,165
1,785
($ in thousands, except share information)
Ba lanc e, Decembe r 31, 201 2
Net income
Other comprehensive income
Exercise of stock options and related
tax benefit of $3
Restricted stock issuance
Common stock issued for water purchase
Stock compensation
Shares withheld for taxes and
7,567
391,555
251,876
4
196
126
207
(196)
9,244
1,223
tax benefit of vested shares
(173,840)
(87)
(4,677)
—
—
—
—
—
Warrants issued as
—
—
—
—
211
—
9,370
1,223
—
(4,764)
—
(4,764)
dividends (3,000,000 warrants)
—
—
6,930
—
(6,930)
—
—
—
Ba lanc e, Decembe r 31, 201 3
Net income
Other comprehensive income
Restricted stock issuance
Stock compensation
Shares withheld for taxes and
tax benefit of vested shares
Warrants exercised
Ba lanc e, Decembe r 31, 201 4
Net income
Other comprehensive loss
Restricted stock issuance
Stock compensation
Shares withheld for taxes and
tax benefit of vested shares
Modified share-based awards
Balance, December 31, 2015
20,563,023
—
—
94,014
10,282
—
—
47
210,848
—
—
(47)
2,564
(20,559)
(11)
(603)
1
(3,333)
—
(3,555)
—
—
(11)
—
62,785
5,655
—
—
—
280,582
5,655
(3,555)
—
2,564
—
(1)
(625)
—
39,605
107
—
—
—
—
—
20,636,478
—
—
85,584
$ 10,318
—
—
43
$ 212,763
—
—
(43)
3,922
$
(6,899)
—
(3)
—
—
$ 68,439
2,950
—
—
—
$ 284,621
2,950
(3)
—
3,922
$ 39,712
(38)
—
—
—
320,187
5,762
(3,555)
—
2,564
(625)
—
$ 324,333
2,912
(3)
—
3,922
(33,908)
(17)
20,688,154 $
10,344 $
(904)
1,065
216,803 $
—
(6,902) $
—
71,389 $
(921)
1,065
291,634 $
—
—
39,674 $
(921)
1,065
331,308
p a g e
1 4
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
c o n s o l i d a t e d s t a t e m e n t s o f c a s h f l o w s
($ in thousands)
O p e r a t i n g A c t i v i t i e s
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
Amortization of premium/discount of marketable securities
Equity in earnings
Non-cash retirement plan expense
Gain on sale of real estate/assets
Deferred income taxes
Stock compensation expense
Distribution of earnings from unconsolidated joint ventures
Changes in operating assets and liabilities:
Receivables, inventories, prepaids and other assets, net
Current liabilities, net
Net cash provided by operating activities
I n v e s t i n g A c t i v i t i e s
Maturities and sales of marketable securities
Funds invested in marketable securities
Real estate and equipment expenditures
Reimbursement of outlet center costs
Reimbursement proceeds from Communities Facilities District
Proceeds from sale of real estate/assets
Investment in unconsolidated joint ventures
Purchase of partner interest in TMV LLC
Distribution of equity from unconsolidated joint ventures
Investments in long-term water assets
Other
Net cash used in investing activities
F i n a n c i n g A c t i v i t i e s
Borrowings of line of credit
Repayments of line of credit
Borrowings of long-term debt
Repayments of long-term debt
Proceeds from exercise of stock options
Taxes on vested stock grants
Net cash (used in) provided by financing activities
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
S u p p l e m e n t a l C a s h F l o w I n f o r m a t i o n
Increase in construction in progress attributable to the reclassification of equity
in investment of TMV LLC
Accrued capital expenditures included in current liabilities
Taxes paid (net of refunds)
Common stock issued for water purchase
2015
Year Ended December 31
2013
2014
$
2,912
$
5,762
$
4,103
5,090
555
(6,324)
997
(95)
(120)
3,757
7,200
2,733
263
16,968
24,157
(15,574)
(28,048)
—
4,971
796
(52)
—
1,100
—
(11)
(12,661)
17,540
(24,390)
—
(244)
—
(921)
(8,015)
(3,708)
5,638
1,930
—
329
1,817
—
$
$
$
$
$
4,871
769
(5,294)
164
—
112
3,534
—
2,291
1,009
13,218
20,844
(8,525)
(24,775)
—
—
—
(9,656)
(70,000)
—
(480)
—
(92,592)
31,050
(24,200)
70,000
(244)
—
(625)
75,981
(3,393)
9,031
5,638
44,950
1,096
(2,384)
—
$
$
$
$
$
4,226
879
(4,006)
865
(46)
(8)
929
—
3,712
(1,118)
9,536
29,779
(21,392)
(21,558)
512
17,809
—
(3,415)
—
1,000
(9,635)
(711)
(7,611)
—
—
4,750
(310)
211
(4,764)
(113)
1,812
7,219
9,031
—
2,058
15
9,370
$
$
$
$
$
p a g e
1 5
T E J O N R A N C H C O .
a n n u a l r e p o r t
2 0 1 5
The following graph is a comparison of cumulative total shareowner returns for the Company, the Dow Jones Equity Market
Index, and the Dow Jones Real Estate Index for the period shown.
comparison of five year cumulative total returns
250.00
200.00
s
r
a
l
l
o
d
150.00
100.00
50.00
12.31.10
12.30.11
12.30.12
12.30.13
12.30.14
12.31.15
tejon ranch
dj equity mkt
dj real estate
- Assumes $100 invested on December 31, 2010
- Total return assumes reinvestment of dividends
- Fiscal year ending December 31
tejon ranch
dj equity mkt
dj real estate
2011
-11.14%
1.07%
6.05%
2012
14.71%
16.38%
18.91%
2013
30.91%
33.47%
1.79%
2014
-19.86%
12.48%
27.24%
2015
-35.00%
0.44%
2.14%
The stock price performance depicted in the above graph is not necessarily indicative of future price performance.
The Performance Graph will not be deemed to be incorporated by reference in any filing by the Company under the Securities Act of 1933 or
the Securities Exchange Act of 1934, except where the Company specifically incorporates the Performance Graph by reference.
The Dow Jones Real Estate Index, for the most part, includes companies which have revenues substantially greater
than those of the Company. The Company is unaware of any industry or line-of-business index that is more
nearly comparable.
quarter
First
Second
Third
Fourth
high
$29.74
$27.10
$28.00
$24.28
2015
low
$23.57
$23.84
$21.50
$18.12
high
$36.98
$35.23
$33.08
$31.44
2014
low
$32.14
$29.54
$27.95
$27.86
As of March 1, 2016, there were 307 registered owners of record of our Common Stock.
p a g e
1 6
Geoffrey L. Stack
Managing Director,
SARES-REGIS Group
Real Estate Development and Management
Daniel R. Tisch
Managing Member,
TowerView LLC
Investment Management
Frederick C. Tuomi
Chief Executive Officer,
Colony Starwood Homes
Michael H. Winer
Portfolio Manager,
Third Avenue Management LLC
Investment Management
e x e c u t i v e
o f f i c e r s
Gregory S. Bielli
President and Chief Executive Officer
Allen E. Lyda
Executive Vice President,
Chief Financial Officer and Assistant Secretary
Hugh F. McMahon
Executive Vice President,
Commercial and Industrial Real Estate
Joseph N. Rentfro
Executive Vice President,
Real Estate
Dennis J. Atkinson
Senior Vice President,
Agriculture
Robert D. Velasquez
Vice President of Finance,
Chief Accounting Officer
d i r e c t o r s
Norman Metcalfe
Chairman of the Board,
Tejon Ranch Co.
Real Estate and Investments
Robert A. Alter
President,
Seaview Investors, LLC
Steven A. Betts
Real Estate and Investments
Gregory S. Bielli
President and Chief Executive Officer,
Tejon Ranch Co.
John L. Goolsby
Private Investments and Real Estate
Anthony L. Leggio
President,
Bolthouse Properties LLC
Real Estate Development and Management
c o r p o r a t e
d i r e c t o r y
Corporate Office
Stock Transfer Agent & Registrar
Form 10-k
Tejon Ranch Company
Post Office Box 1000
4436 Lebec Road
Tejon Ranch, California 93243
Telephone: (661) 248-3000
Securities Listing
Tejon Ranch Company
Common Stock is listed on
the New York Stock Exchange
under the ticker symbol: TRC
Computershare Shareowner Services LLC
480 Washington Boulevard
Jersey City, NJ 07310-1900
Telephone: (877) 898-2101
A copy of this report and the Company’s
Annual Report to the Securities and
Exchange Commission on Form 10-k, with-
out exhibits, will be provided without charge
to any stockholder submitting a written or
electronic request to Investor Relations:
Auditors
Ernst & Young LLP
Barry Zoeller
Vice President,
Corporate Communications &
Investor Relations
bzoeller@tejonranch.com
Tejon Ranch Company
Post Office Box 1000
Tejon Ranch, California 93243
w w w. t e j o n r a n c h . c o m