Page 21 - 2018 MHT Annual Report

Lands
Trust land requires diligent analysis and constant interaction across Trust Land Office (TLO) asset classes to determine the highest and best use of Trust land. Development
and management of the surface estate is geared toward strategic agreement structures favoring efficiency and scalability, as well
as branching into new asset classes such as mitigation marketing.
Management of the Trust’s surface estate generated $5.4 million in revenues, not inclusive of real estate transactions, during FY 2018. This includes leases, land sales, interest on land sale contracts, and easements. The most significant portion of this revenue, 87 percent, is derived from
land sales. It is important to note that since inception, $97 million, or roughly 24 percent, of all TLO revenue has been derived through land sales, but less than 3 percent of the land from the original million-acre entitlement has been sold. The TLO is effectively and prudently generating revenue through land sales in order to fulfill the Trust’s goal of perpetuity.
The TLO holds one competitive land sale each year, and during FY 2018 the fall land sale received winning bids totaling $980,212 — a 15 percent premium above the minimum bid value. Additionally, the TLO implemented
an online over-the-counter (OTC) land sale, which generated $300,500 in sales — a 30
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