Kaanapali Land Reports Decline in Financial Performance Due to Lahaina Wildfires

Kaanapali Land, LLC reported a decline in financial performance for the second quarter of 2025, with total revenues of $376,000, a decrease from $423,000 in the same period of 2024. The company experienced a net loss of $338,000 for the quarter, compared to a net income of $2.03 million in the prior year. For the first half of 2025, revenues totaled $816,000, up from $964,000 in the first half of 2024, while the net loss for this period was $1.51 million, compared to a profit of $999,000 in the previous year. The decline in profitability is attributed to the ongoing impacts of the Lahaina wildfires, which severely disrupted operations, particularly in the coffee segment.

Significant changes in the company's financials include a reduction in accumulated earnings, which fell to $73.88 million as of June 30, 2025, down from $76.31 million at the end of 2024. The company's total assets decreased to $89.43 million from $90.97 million, primarily due to a decline in cash and cash equivalents, which dropped to $19.89 million from $23.08 million. The increase in accounts payable and accrued expenses, which rose to $1.71 million from $355,000, reflects the company's efforts to manage cash flow amid operational disruptions.

Operationally, Kaanapali Land continues to face challenges stemming from the Lahaina wildfires, which destroyed its coffee mill and other facilities. The company has relocated its offices and is in the process of planning a new coffee mill. The company received $682,000 in crop insurance proceeds during the quarter, which helped mitigate some losses. However, the overall impact of the wildfires has led to a significant decrease in coffee production and sales, with the company unable to process its 2023 and 2024 coffee crops.

Looking ahead, Kaanapali Land is focused on rebuilding and recovery efforts, including the development of a 295-acre parcel in Kaanapali Coffee Farms and a 241-acre residential site known as Puukolii Village. The company is also working to secure necessary water use permits from the State of Hawaii, which are critical for its development plans. Despite the current challenges, management remains optimistic about future growth opportunities, contingent on the successful execution of its recovery strategies and market conditions. The company does not anticipate making any distributions in the near term as it prioritizes liquidity and operational stability.