Alico, Inc. closed the sale of a 2,950‑acre citrus grove in Hendry County for $26.8 million in gross proceeds, a transaction that adds a substantial cash infusion to the company’s balance sheet and signals a decisive step in its transition away from citrus production.
The sale brings Alico’s total land‑sale proceeds for fiscal 2026 to $34.6 million. As of September 30 2025, the company carried $85.5 million in debt and $38.1 million in cash, leaving a net debt of $47.4 million. The new cash balance of $64.9 million reduces net debt to $18.9 million, improving leverage and freeing capital for future development projects.
Alico’s land‑management strategy now focuses on high‑utilization leasing. The company reports 97 % utilization of its approximately 32,500 farmable acres and 89 % utilization of its total 46,000 acres, with leases to citrus growers, cattle operators, mining companies, sugarcane producers and sod farms. The grove sale further consolidates the portfolio and enhances the company’s ability to generate stable, diversified income streams.
The decision to exit citrus production is driven by the persistent impact of citrus greening disease, which has eroded yields, increased caretaking costs, and led to consecutive years of losses. By divesting a large, disease‑affected parcel, Alico reduces exposure to a declining commodity while positioning itself for higher‑margin land uses and development opportunities.
President and CEO John Kiernan said the sale “represents the successful continuation of our strategic transformation that began in fiscal year 2025, demonstrating our ability to unlock substantial value from our land portfolio.” He added that the company’s 97 % farmable‑land utilization underscores the effectiveness of its diversified leasing model.
The transaction also dovetails with Alico’s broader capital‑allocation plan, which includes a $50 million share‑buyback program set to expire on April 1 2028 and ongoing development of the Corkscrew Grove Villages master‑planned community in Collier County. Together, these initiatives reinforce the company’s long‑term growth strategy and enhance shareholder value.
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