Note 6 - Property & Equipment, Net

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6. PROPERTY & EQUIPMENT, NET

Property and equipment, net at September 30, 2025, and December 31, 2024 consisted of the following:

	September 30,			December 31,
	2025			2024
	(unaudited)			(audited)
	(in thousands)
Land	$	7,706		$	7,715
Land improvements		12,633			13,158
Buildings		20,475			22,976
Machinery and equipment		6,899			9,124
Construction in progress		534			1,367
Total property and equipment		48,247			54,340
Less accumulated depreciation		(30,717	)		(36,939	)
Property and equipment, net	$	17,530		$	17,401

Land

Most of the Company’s 22,300 acres of land were acquired between 1911 and 1932 and are carried in its condensed consolidated balance sheets at cost. More than 20,000 acres are located in West Maui and are largely contiguous parcels that extend from the sea to an elevation of approximately 5,700 feet. This area includes approximately 900 acres entitled for mixed-use development within the Kapalua Resort, a master-planned, destination resort and residential community located in West Maui. The Company’s remaining approximate 1,500 acres of land are located in Upcountry Maui in an area commonly known as Hali‘imaile and are mainly comprised of agricultural fields, ranch lands and industrial and retail properties.

Land Improvements

Land improvements are comprised primarily of roads, utilities, and landscaping infrastructure improvements at the Kapalua Resort. Also included is the Company’s potable and non-potable water systems in West Maui. A majority of the Company’s land improvements were constructed and placed in service in the mid-to-late 1970s or conveyed in 2017. Depreciation expense would be considerably higher if these assets were stated at current replacement cost.

Buildings

Buildings are comprised of restaurant, retail, and light industrial spaces located at the Kapalua Resort, Alaeloa Business Center, and Hali‘imaile, which are used in the Company’s leasing operations. Most of the Company’s buildings were constructed and placed in service in the mid-to-late 1970s. Depreciation expense would be considerably higher if these assets were stated at current replacement cost.

Machinery and Equipment

Machinery and equipment are mainly comprised of zipline course equipment installed in 2008 at the Kapalua Resort and used in the Company’s leasing operations and various rolling stock and off road equipment used in our land management and Agave farming operations.

Construction in Progress

Construction in progress is comprised of ongoing Kapalua Resort and Hal‘iimaile projects, including renovations and improvements to buildings, warehouses and commercial assets.