By M. Marin
NYSE:TRC
READ THE FULL TRC RESEARCH REPORT
Upcoming opening of Hard Rock Casino Tejon potential source of demand for units at TRC’s Terra Vista multi-family development
Tejon Ranch Company (NYSE:TRC) has opened the first units at its multi-family residential complex adjacent to the Outlets at Tejon, Terra Vista. TRC began leasing activities earlier this year, and Terra Vista began accepting new tenants in Phase 1 of Terra Vista’s opening in early May. As of June 30, 2025, 49% of the 84 units first delivered were leased. The company has indicated that Terra Vista at Tejon leasing trends have been in line with targets, and it is “encouraged by the strong response to… [it’s] first multifamily offering…”
We view the pending opening of the Hard Rock Casino Tejon as another source of potential demand for units at Terra Vista. Located near Terra Vista, the Hard Rock Casino Tejon is expected to create about 5,000 jobs. It is scheduled to open on November 13, 2025.
California has some of the highest rental rates nationwide. TRCC is located in Kern County, which is experiencing a severe shortage of housing, like much of the state, including apartment units and logistics space. Terra Vista’s 495 units are designed to be affordable studio, one, and two-bedroom apartment homes to address the need for more affordable housing in California. Statewide, there is a severe shortage of residential property, that has led to a housing shortage problem, particularly affordable housing.
In total, Terra Vista Phase 1 includes 228 of the planned 495 residential units. Once it is fully completed, Terra Vista at Tejon is expected to be the largest rental community in Kern County. We expect Terra Vista to create predictable recurring revenue streams over time that can help offset the lumpiness of results from the Farming and Ranching segments, which are impacted by fluctuations in commodity prices and production conditions, as well as the timing of land sales and leasing in its commercial developments. Over time, however, as recurring monthly rental and leasing receipts comprise a growing component of the company’s total revenue and earnings, we would expect this to help smooth out the fluctuations.
The proximity of TRC land holdings to LA, as well as to Bakersfield, is a significant positive, in our view, reflecting the substantial need for industrial, warehouse, and residential space in the markets near TRC’s land assets. The location of the company’s land asset makes it appealing as a solution to a broad range of real estate needs.
View upcoming Investor Day & quarterly conference call as positives
Separately, TRC is hosting its first Investor Day since 2018 on November 14, 2025, in New York City. TRC shareholders have noted that TRC needs to improve both transparency and shareholder communication and engagement and we view the investor event as a positive. The company is also hosting a quarterly conference call on November 6, 2025, which we view as another positive.
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