Maui Land & Pineapple Inc. today said it was selling the prized Plantation Course in Kapalua, home to the PGA Tour's season-opening Mercedes-Benz Championship, for $50 million to reduce debt.

Kapalua Plantation Golf LLC, a subsidiary of MLP, will operate the scenic golf course on behalf of its new owner, Hawaii-based TY Management Corp., under a renewable two-year lease.

The announcement was made as the developer and specialty pineapple grower reported its loss widened in a dreadful fourth quarter due to slow real estate sales, one-time charges and a decline in each of its business segments.

For the quarter ended Dec. 31, the company reported a loss of $70.6 million, or $8.86 per share, compared with a loss of $4 million, or 51 cents per share, in the prior year quarter.

Revenue fell 35 percent to $16.8 million from $25.9 million. The revenue drop stemmed from lower real estate sales in 2008. The company is also no longer producing or selling solid-packed pineapple products, which hurt its sales.

MLP said its loss reflects a decline in all of its business segments, in particular in its community development division due to a loss from its equity investment in Kapalua Bay Holdings and an impairment charge for the drop in value of its investments totaling $45.3 million.

The company said the community development division also recorded fourth-quarter charges of $10.6 million for deferred development costs that the company doesn't expect to recover.

In its resort division, MLP reported an operating loss of $6.6 million in the quarter, including the cost of hosting the LPGA Tour's Kapalua Classic in October. Kapalua is the only resort to host events on both the PGA Tour and LPGA Tour.

"In 2008, financial results for the resort were sharply affected by the reduction in visitor counts due to the global economic recession," the company said.

For the year, the company reported a loss of $79.4 million, or $9.98 per share, compared with a profit of $8 million, or $1.02 per share in 2007. Revenue fell 49 percent to $78.8 million from $154.1 million.

The deal for the recently renovated Plantation Course is expected to close by the end of the month. Kapalua also has the Bay Course, which hosts the Kapalua Classic, and was not a part of the sale.

"In this transaction, we will receive cash for the sale of the land and improvements, and will continue to operate the Plantation Course under the Kapalua brand with our golf management team," MLP President and Chief Executive Robert Webber said in a statement.

MLP spokeswoman Teri Freitas Gorman said the contract to host the Mercedes' winners-only tournament expires after next year's event.

"Beyond that, I don't know what the future holds," she said.

Built on the foothills of the West Maui mountains and opened in 1991, the hilly, 7,411-yard Plantation Course has hosted the Mercedes since 1999. It was designed by Bill Coore and Ben Crenshaw and features sweeping views of the Pacific Ocean and plays across century-old pineapple plantation fields.

"We would not have entered into this transaction if the new owner did not share our commitment to provide the highest quality golf experience and to work closely with us to maintain a seamless and integrated resort experience for our guests and residents," Webber said.

MLP owns approximately 23,000 acres on the island of Maui, on which it operates the Kapalua Resort community and has 2,000 acres of pineapple fields. It also owns and manages the 8,300-acre Puu Kukui Watershed Preserve, the largest private nature preserve in Hawaii, and the 3,300-acre Honolua-Mokuleia Marine Life Conservation District.

Shares dropped 69 cents, or 8.9 percent, to $7.08 in electronic after-hours trading. During regular trading before the results were released, the stock rose $1.26, or 19.4 percent, to close at $7.77.

___

On the Net:

Maui Land & Pineapple: http://www.mauiland.com/