Alico is continuing its transition away from citrus production toward a land-focused strategy based on agricultural leasing, selective land sales, and longer-term real estate development, according to chief executive John Kiernan.
Speaking during a company event, Kiernan said the decision to exit citrus was driven by economics, particularly the impact of citrus greening disease on yields, fruit quality, and caretaking costs. He said the business had generated losses for two consecutive years. "It was a very, very difficult decision," Kiernan said, referring to Alico's long history in citrus, including supplying fruit to Tropicana for more than a decade.
Kiernan described Alico as a land company, noting it owns more than 50,000 acres across 31 locations in seven or eight counties in Florida, equivalent to about 20,200 hectares. An internal parcel-by-parcel review was carried out to identify the highest and best use of each property, taking into account infrastructure development and population growth. Based on this assessment, about 25 per cent of the land could be used for residential or commercial development over time, while the remainder is expected to stay in agricultural use.
In the interim, Alico is generating cash flow by leasing land for agricultural purposes rather than operating crops itself. Kiernan said this approach creates diversified income streams while allowing flexibility as properties move through zoning and entitlement processes.
One of the main entitlement projects is Corkscrew Grove Village in Collier County near Naples. Kiernan said the plan includes about 9,000 homes across two villages, alongside commercial areas and open space. A wildlife corridor of roughly 1,200 acres is planned to link conservation areas and support Florida panther movement. Through conservation trade-offs, about 7,000 acres would be placed under conservation in exchange for development on around 3,000 acres, subject to approvals.
Kiernan said county-level review is ongoing, with hearings before planning bodies expected during the first half of the year and potential county approval in 2026. At the state level, an application has been submitted to the South Florida Water Management District, with a decision anticipated in late 2026 or early 2027. Federal review by the US Army Corps of Engineers and the US Fish and Wildlife Service is also required.
A second development, Bonnet Lake in Highlands County, has entered planning stages following community engagement with more than 400 residents.
On monetisation, Kiernan said Alico sold about US$23–24 million in agricultural land last year and reported around US$34 million in assets held for sale. He added that around US$7 million in sales have already been completed in the current fiscal year.
Kiernan said Alico ended its fiscal year with about US$38 million in cash and net debt of roughly US$48 million, down substantially from a decade earlier. He said the company remains focused on liquidity, leasing income, and progressing entitlements while returning capital through dividends and potential buybacks.
Source: Yahoo!finance
