Maui Land & Pineapple Co. had a very good year in 2014, earning its second-biggest profit in more than 25 years thanks to the state buying a big piece of land on the Valley Isle.
Kapalua-based Maui Land reported Monday evening that it had a $17.6 million profit last year compared with a $1.2 million loss in the prior year.
The only year since 1990 when the company earned more was 2010 when a $24.8 million profit was produced mainly by cutting retiree benefits and selling a golf course — drastic moves that countered losses of $123 million in 2009 and $79 million in 2008.
The outsize profit earned last year will fund Maui Land pension plan obligations that appeared to be on shaky ground despite the company’s efforts to recover from the recession and real estate development meltdown several years ago.
Warren Haruki, company chairman and CEO, said in a written statement that the firm is pleased with what he termed "substantial progress" selling noncore assets and shoring up the pension plan.
"We continue to work diligently toward strengthening our financial position and in managing our Maui landholdings for the long-term benefit of our stakeholders and the community," he said.
The major asset sale last year was 244 acres fronting Honolua Bay that the state bought for $19.8 million in October. The parcel, which is zoned for agriculture and known as Lipoa Point, produced a $19.3 million gain for Maui Land.
Selling Lipoa Point generated fourth-quarter net income of $18.8 million compared with $1.4 million in the same period the year before.
One other major asset sale last year for Maui Land was a Kapalua Plantation Golf Course maintenance facility on 4 acres. That sale for $2.3 million resulted in a $1.5 million gain, the company said.
The purchase of Lipoa Point was proposed in a bill passed by the state Legislature and signed by Gov. Neil Abercrombie last year.
The scenic stretch of coastal land had been pledged via a mortgage to the Pension Benefit Guaranty Corp., a federal agency, as security for Maui Land pension obligations that were underfunded by about $20 million.
Maui Land in recent years proposed the area and adjacent property for development of 40 home sites and an 18-hole golf course. That plan drew heavy community opposition and was abandoned, though some preservationists still feared development of up to 20 homes on the site under lax state and county rules governing agricultural subdivisions.
The company owns roughly 23,000 acres on Maui; it has some mainly residential development plans but no longer farms pineapple and has largely exited the resort business.
Total revenue for Maui Land last year was $33 million, most of which was from real estate sales. About $5 million came from property leasing, $3 million from utilities and $1 million from resort amenities.
Shares of Maui Land stock closed Tuesday at $6.06, down 5 cents from $6.11 on Monday.
Maui Land stock has traded in the past 52 weeks between a high of $9 in April and a low of $5.31 in November.
