NEWHALL LAND ON RECORD PACE; SALE OF SUEY RANCH PUMPS UP FIRM'S BOTTOM LINE.

Byline: Bhavna Mistry Staff Writer

A recent major land sale is expected to thrust the Newhall Land and Farming Co. to record earnings for 1999, with profits estimated as high as $90 million.

The strong performance was bolstered by the recent sale of 36,000-acre Suey Ranch in Santa Barbara and San Luis Obispo counties, which is expected to add close to $22 million to fourth-quarter earnings for the Valencia-based company.

``The company expects 1999 to be the best year in its history, achieving new records in revenues, net income and net income per unit,'' Thomas L. Lee, Newhall Land's chairman and chief executive officer, said in a statement.

The Suey Ranch sale will add an estimated 70 cents per shareholder unit, projected to bring fourth-quarter per-unit earnings to as much as $1.85. Last year, per-unit earnings were $1.86, up 58 cents from 1997's rate of $1.28.

``The area is performing very strongly for them,'' said Katherine Flores, an analyst at Sutro and Co. in Los Angeles, the only research firm that actively tracks publicly traded Newhall Land. ``The demand for land is very strong.''

Flores said closing the sale of the Suey Ranch was particularly important to the company's year-end outcome.

The major sale in the fourth quarter bring the local developer to its third consecutive year of increased profits and eighth consecutive year of increased per-unit earnings.

Company officials said they expect the trend to continue, predicting another record in 2000.

Year-end results show record earnings across the board - Newhall Land's residential, commercial and industrial divisions logged successes.

To date, approximately 113 acres of commercial and industrial land sales has closed escrow, including sales of 45 acres in the fourth quarter.

Residential lots closing escrow in the fourth quarter totaled 544, including 250 lots in the Bridgeport Lake Community under construction and 294 unimproved lots in the Hasley Hills, just north of Valencia.

Included in profits was the second-quarter sale of a parcel near the Valencia Town Center, which added about $18.7 million to revenues and $10.9 million to net income.

The 33-acre parcel is approved for 828 luxury apartments.

A total of 891 residential lots were sold this year, including some valued at more than $1 million per net acre, a company record high.

Much of last year's performance was credited to the second-quarter $111 million sale of the Valencia Marketplace to Samuel S. Mevorach, a private investor.

Officials said 1999 sales prices across all real estate segments exceeded 1998 appraised values by 21 percent.

For the upcoming year, company officials expect to generate approximately $200 million from a combination of land sales and recurring commercial and agricultural income.

Newhall Land also is looking at selling 700 residential lots in the North River area of Valencia.

Commercial and industrial land sales are targeted at approximately 100 acres and will be concentrated in the Valencia Commerce Center and Valencia Town Center areas.

``Next year should also be a great year for them,'' Flores said. ``They're looking to sell commercial land portfolios and pushing land sales.''