What drove TRC's earnings volatility in 2024?

Tejon Ranch Co. (TRC) experienced earnings volatility in 2024, with a significant increase in net income in the fourth quarter, primarily driven by the following factors:

1. **Commercial and Industrial Segment Growth**: The Tejon Ranch Commerce Center (TRCC) contributed to the revenue growth, with its industrial portfolio achieving 100% occupancy. This segment saw a 15% year-over-year revenue increase, reaching $21.6 million in Q4. The success of TRCC and the growth in commercial/industrial revenues were key factors in the quarterly financial performance.
2. **Joint Venture and Developments**: The company's joint venture with Dedeaux Properties to build a 510,385 square foot warehouse facility and the construction of Terra Vista at Tejon Phase 1 were significant developments. These projects are expected to contribute to future growth and diversification. Such developments can lead to increased revenues and profitability.
3. **Mineral Resources Segment Challenges**: While the company faced challenges in the mineral resources segment, primarily due to decreased water sales, this segment's impact on the annual net income was more pronounced. The farming segment also experienced increased expenses, which affected the full-year net income. However, the fourth quarter's performance was less affected by these challenges.

In conclusion, TRC's earnings volatility in 2024 was primarily driven by the growth in its commercial and industrial segments, particularly from the Tejon Ranch Commerce Center, and the impact of strategic developments and joint ventures. The volatility was less influenced by the mineral resources segment's challenges, which had a more significant impact on the annual net income.