Alico, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Assets Held for Sale

Assets Held for Sale

9 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Note 4. Assets Held for Sale

In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale at June 30, 2024 and September 30, 2023:


(in thousands)	Carrying Value
	June 30, 2024		September 30, 2023
Ranch	$	69	$	1,632
Alico Citrus	3,037		—
Total assets held for sale	$	3,106	$	1,632

On April 19, 2024, the Company entered into an agreement to sell 798 acres of citrus land, which were not producing as expected, for $7,183 ($9,000 per acre). This agreement includes an option to purchase approximately 680 additional acres within 10 months of the closing date of the sale, at the same price per acre. The 798 acre sale closed on June 28, 2024.

During the nine months ended June 30, 2024, the Company consummated the sale of approximately 18,354 acres of land for $86,217 and recognized a gain of $81,246, including 17,229 acres of the Alico Ranch to the State of Florida for $77,631 in gross proceeds. A portion of the proceeds from these sales was used to repay the outstanding balance on the Company’s working capital line of credit (“WCLC”) with Rabo Agrifinance, Inc. (“Rabo”), the $19,094 Met Life Variable-Rate Term Loans, plus accrued interest and for general corporate purposes.

During the nine months ended June 30, 2023, the Company sold approximately 888 acres to various third parties for $4,883 and recognized a gain of $4,689 (including approximately 85 acres to Mr. John E. Kiernan, the Company’s President and CEO, on October 20, 2022, for $439 ($5,161 per acre) for general corporate purposes. See Note 13. Related Party Transactions for further information.