SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549



                                  FORM 10-Q



                 Quarterly Report Under Section 13 or 15(d)
                   of the Securities Exchange Act of 1934




For the quarterly period
ended March 31, 2004                             Commission file #0-50273




                             KAANAPALI LAND, LLC
           (Exact name of registrant as specified in its charter)




       Delaware                           01-0731997
(State of organization)        (IRS Employer Identification No.)




  900 N. Michigan Ave., Chicago, IL                   60611
(Address of principal executive office)             (Zip Code)




Registrant's telephone number, including area code 312/915-1987


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).  Yes [  ]  No [ X ]

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 (the "Exchange Act") during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [ X ]  No [   ]

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.  Yes [ X ]  No [   ]

As of April 30, 2004, the registrant had 1,792,170 shares of common stock
outstanding.



<PAGE>


                              TABLE OF CONTENTS




PART I      FINANCIAL INFORMATION

Item 1.     Condensed Consolidated Financial Statements . . . .       3

Item 2.     Management's Discussion and Analysis of
            Financial Condition and Results of
            Operations. . . . . . . . . . . . . . . . . . . . .      16

Item 4.     Controls and Procedures . . . . . . . . . . . . . .      19



PART II     OTHER INFORMATION

Item 1.     Legal Proceedings . . . . . . . . . . . . . . . . .      19

Item 6.     Exhibits and Reports on Form 8-K. . . . . . . . . .      19





<PAGE>


PART I  FINANCIAL INFORMATION

     ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                             KAANAPALI LAND, LLC

                    Condensed Consolidated Balance Sheets

                    March 31, 2004 and December 31, 2003
                  (Dollars in Thousands, except share data)
                                 (Unaudited)



                                 A S S E T S
                                 -----------
                                               March 31,     December 31,
                                                 2004           2003
                                               ---------     -----------

Cash and cash equivalents . . . . . . .         $ 41,487          28,995
Receivables, net. . . . . . . . . . . .              702             777
Property, net . . . . . . . . . . . . .          104,934         104,926
Notes receivable, net of deferred
  gain of $5,304. . . . . . . . . . . .           11,692          26,058
Prepaid pension costs . . . . . . . . .           25,966          25,989
Other assets. . . . . . . . . . . . . .            2,857           2,728
                                                --------        --------
                                                $187,638         189,473
                                                ========        ========


                            L I A B I L I T I E S
                            ---------------------

Accounts payable and accrued expenses .         $  1,281           2,444
Deferred income taxes . . . . . . . . .           19,340          19,369
Accumulated postretirement benefit
  obligation. . . . . . . . . . . . . .           13,218          13,743
Other liabilities . . . . . . . . . . .           52,455          52,498
Mortgage payable. . . . . . . . . . . .            8,259           8,288
                                                --------        --------
        Total liabilities . . . . . . .           94,553          96,342

Commitments and contingencies


                    S T O C K H O L D E R S'  E Q U I T Y
                    -------------------------------------

Common stock, at 3/31/04 and 12/31/03
  non par value (shares authorized -
  4,500,000; shares issued 1,792,106
  and 1,791,274, respectively). . . . .            --              --
Additional paid-in capital. . . . . . .            5,357           5,357
Accumulated earnings. . . . . . . . . .           87,728          87,774
                                                --------        --------
        Total stockholders' equity. . .           93,085          93,131
                                                --------        --------
                                                $187,638         189,473
                                                ========        ========





                 The accompanying notes are an integral part
             of the condensed consolidated financial statements.


<PAGE>


                             KAANAPALI LAND, LLC

                     Condensed Statements of Operations

                 Three Months Ended March 31, 2004 and 2003
                                 (Unaudited)
                  (Dollars in Thousands, except share data)



                                                  2004           2003
                                                --------       --------
Revenues:
  Sales . . . . . . . . . . . . . . . . .       $  2,087         13,327
  Interest. . . . . . . . . . . . . . . .            458             87
                                                --------       --------
                                                   2,545         13,414
                                                --------       --------
Cost and expenses:
  Cost of sales . . . . . . . . . . . . .          1,010         12,138
  Reduction of postretirement
    benefit obligation. . . . . . . . . .           (125)        (2,426)
  Selling, general and administrative . .          1,316          3,947
  Interest. . . . . . . . . . . . . . . .            146            291
  Depreciation and amortization . . . . .            273            292
                                                --------       --------
                                                   2,620         14,242
                                                --------       --------

Operating income (loss) . . . . . . . . .            (75)          (828)

  Equity in income (loss) from
    unconsolidated investments. . . . . .          --              (146)
                                                --------       --------
  Income (loss) from continuing
    operations before income taxes. . . .            (75)          (974)

  Income tax benefit (expense). . . . . .             29            323
                                                --------       --------

      Net income (loss) . . . . . . . . .       $    (46)          (651)
                                                ========       ========

Earnings per share:
  Net income (loss) . . . . . . . . . . .       $   (.03)          (.35)
                                                ========       ========





















            The accompanying condensed notes are an integral part
             of the condensed consolidated financial statements.


<PAGE>


                             KAANAPALI LAND, LLC

               Condensed Consolidated Statements of Cash Flows

                 Three Months Ended March 31, 2004 and 2003
                                 (Unaudited)
                           (Dollars in Thousands)



                                                   2004          2003
                                                 --------      --------

Net cash used in operating activities . . .      $ (2,043)       (2,659)

Cash flows from investing activities:
  Property additions. . . . . . . . . . . .          (295)         (213)
  Property sales, net . . . . . . . . . . .           493         2,301
  Note receivable . . . . . . . . . . . . .        14,366         --
                                                 --------      --------

Net cash provided by investing
  activities. . . . . . . . . . . . . . . .        14,564         2,088

Cash flows from financing activities:
  Net repayments of debt. . . . . . . . . .           (29)          (29)
                                                 --------      --------

  Net cash used in financing activities . .           (29)          (29)
                                                 --------      --------

        Net increase (decrease) in cash
          and cash equivalents. . . . . . .        12,492          (600)
        Cash and cash equivalents at
          beginning of period . . . . . . .        28,995        15,848
                                                 --------      --------
        Cash and cash equivalents at
          end of period . . . . . . . . . .      $ 41,487        15,248
                                                 ========      ========

Supplemental disclosure of cash
  flow information:
  Cash paid for interest. . . . . . . . . .      $    146           145
                                                 ========      ========

Non-cash investing and financing activities:
  Note receivable received in sale
    of Lot 2. . . . . . . . . . . . . . . .      $  --           14,366
  Deferred gain . . . . . . . . . . . . . .         --           (5,304)
                                                 --------      --------
                                                    --            9,062
  Note receivable received in sale
    of Lot 4. . . . . . . . . . . . . . . .         --            --
                                                 --------      --------
  Note receivable, net. . . . . . . . . . .      $  --            9,062
                                                 ========      ========











                 The accompanying notes are an integral part
             of the condensed consolidated financial statements.


<PAGE>


                             KAANAPALI LAND, LLC

            Notes to Condensed Consolidated Financial Statements

                                 (Unaudited)
                           (Dollars in Thousands)


     The accompanying unaudited condensed consolidated financial statements
are prepared in accordance with accounting principles generally accepted in
the United States for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly,
they do not include all of the information and footnotes required by
accounting principles generally accepted in the United States for complete
financial statements, and therefore, should be read in conjunction with the
Company's Annual Report on Form 10-K (File No. 0-50273) for the year ended
December 31, 2003.  Capitalized terms used but not defined in this
quarterly report have the same meanings as the Company's 2003 Annual Report
on Form 10-K.

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     ORGANIZATION AND BASIS OF ACCOUNTING

     Kaanapali Land, LLC ("Kaanapali Land"), a Delaware limited liability
company, is the reorganized entity resulting from the Joint Plan of
Reorganization of Amfac Hawaii, LLC (now known as KLC Land Company, LLC
("KLC Land")), certain of its subsidiaries (together with KLC Land, the
"KLC Debtors") and FHT Corporation ("FHTC" and, together with the KLC
Debtors, the "Debtors") under Chapter 11 of the Bankruptcy Code, dated
June 11, 2002 (as amended, the "Plan").

     The Plan was confirmed by the Bankruptcy Court by orders dated
July 29, 2002 and October 30, 2002 (collectively, the "Order") and became
effective November 13, 2002 (the "Plan Effective Date").  Kaanapali Land
continues to work toward completion of the various requirements of the Plan
and to implement the restructuring transactions that are contemplated to be
effected under the Plan, including, among other things, the resolution of
all outstanding claims and distributions on all claims that are allowed
under the Plan.

     The Company's continuing operations are in three business segments -
agriculture, property and golf.  The Agriculture segment grows seed corn
under contract and leases land currently cultivated in coffee to a third
party.  The Property segment primarily develops land for sale and
negotiates bulk sales of undeveloped land.  The Golf segment is responsible
for the management and operation of the Waikele Golf Course.  The Property,
Agriculture and Golf segments operate exclusively in the State of Hawaii.
For further information on the Company's business segments see Note 10.

     PROPERTY

     The Company's principal land holdings are on the island of Maui.  The
Company has determined, based on its current projections for the
development and/or disposition of its land holdings, that the land holdings
are not currently recorded in an amount in excess of proceeds that the
Company expects that it will ultimately obtain from the disposition
thereof.



<PAGE>


     USE OF ESTIMATES

     The financial statements have been prepared in conformity with
accounting principles generally accepted in the United States, which
require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities (including disclosure of
contingent assets and liabilities) at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.

     In the opinion of management, all adjustments necessary for a fair
statement of the financial position and results of operations for the
interim periods presented have been included in these financial statements
and are of a normal and recurring nature.

     Operating results for the three months ended March 31, 2004 are not
necessarily indicative of the results that may be achieved in future
periods.

     RECLASSIFICATIONS

     Certain amounts in the 2003 consolidated financial statements have
been reclassified to conform to the 2004 presentation.

(2)  INVESTMENTS

     On September 9, 2003, the Company and certain affiliates consummated a
settlement agreement with the ERS that resulted, among other things, in the
foreclosure of the Company's indirect interests in the RKGC.  As a
consequence of such settlement, the Company has received certain easements
and other rights respecting certain of the golf course land, including,
among other things, drainage rights, utility line easements, access rights
and the right to reconfigure one of the golf holes to accommodate the
construction of a road to serve certain other land owned by the Company. In
2003 the Company escrowed cash as required by the settlement agreement in
the approximate amount of $1,500, primarily to satisfy certain debts to
former creditors and employees and to ensure that funds are available for
the reconfiguration of a golf hole that was needed by the Company in order
to construct a roadway on adjacent land.  The Company recently entered into
a contract for the completion of such reconfiguration work which required
the Company to deposit an additional approximate amount of $200 into
escrow.  Such work has commenced and is expected to be conducted during the
second and third quarters of 2004.  A portion of the amounts so funded is
to be reimbursed to the Company by AFLP which formerly owned a majority
indirect interest in the RKGC.

(3)  LAND SALES AND MORTGAGES RECEIVABLE

     On January 31, 2003, an option to purchase Lot 2 (an approximate 11.5
acre site in the North Beach area of Kaanapali) was exercised.  A non-
refundable payment was made for $2 million (before closing costs and
prorations).  The remainder of the purchase price was reflected by a note
secured by a mortgage due March 31, 2004 for approximately $14,000.  The
note was paid in March 2004.  Approximately one-half of the proceeds of the
note is subject to adjustment based on the number of units approved for
construction on the site.

     The Company is recording the sale under the cost recovery method of
accounting.  The entire deferred gain will be recognized once final
adjusted cash receipts from the purchaser exceed the cost of the property.

(4)  MORTGAGE AND OTHER NOTES PAYABLE

     The Company's mortgage payable was entered into by an operating
subsidiary of the Company and generally places certain specified
restrictions on the transfer of the individual subsidiary's assets, as well
as on the use of proceeds generated from operations and the sales of such
assets.


<PAGE>


     The Waikele Golf Course debt, secured by the Waikele Golf Course, had
an original principal balance of $8,500, an interest rate of LIBOR plus
3.75% (LIBOR floor of 3%), principal amortization based on a 25-year
amortization schedule and a maturity date of December 1, 2006.  The loan
has certain cash flow and other financial covenants.

     In December 1996, Oahu MS, a wholly-owned subsidiary of Kaanapali
Land, obtained a $10,000 loan facility from City Bank.  The loan, which had
been extended through December 1, 2002 with certain modifications, was
secured by a mortgage on certain property at the Oahu Sugar mill-site (the
sugar plantation was closed in 1995).  On the maturity date, Oahu MS did
not pay the balance due.  On January 2, 2003, City Bank filed a complaint
for foreclosure and Oahu MS asserted certain defenses.  As a consequence of
court-supervised mediation during the period commencing in August 2003,
Oahu MS and Oahu Sugar entered into a settlement of certain litigation with
City Bank and certain other parties and in December 2003 the settlement was
consummated.  The settlement resulted in Oahu MS no longer having title to
the property as well as the Company being released from its obligations
relating to the mortgage encumbered by the property; however, City Bank
also released certain other security to Oahu MS.  Certain contingencies to
the final effectiveness of such settlement were satisfied during the first
quarter of 2004 and the settlement is now final.

(5)  RENTAL ARRANGEMENTS

     The Company leases various office space with average annual rental of
approximately $250 per year.  Leases expire at various times through
February 2005.  Although the Company is a party to certain other leasing
arrangements, none of them are material.

(6)  EMPLOYEE BENEFIT PLANS

     (a)  PENSION PLANS

     The Company participates in a defined benefit pension plan that covers
substantially all its eligible employees.  The Plan is sponsored and
maintained by Kaanapali Land in conjunction with other plans providing
benefits to employees of Kaanapali Land and its affiliates.

     (b)  RETIREE HEALTH AND LIFE INSURANCE BENEFITS

     In addition to providing pension benefits, KLC Land and certain of its
affiliates currently provide certain healthcare and life insurance benefits
to certain eligible retired employees.  Where such benefits are offered,
substantially all employees may become eligible for such benefits if they
reach a specified retirement age while employed by KLC Land (or the
applicable affiliate) and if they meet a certain length of service
criteria. The postretirement healthcare plan is contributory and contains
cost-sharing features such as deductibles and copayments.  However, these
features, as they apply to bargaining unit retirees, are subject to
collective bargaining provisions of a labor contract between each such
entity and the International Longshoremen's & Warehousemen's Union as they
may have been amended or settled through agreements or memoranda executed
with the union at about the time each operating facility was closed.  The
postretirement life insurance plan is non-contributory.

     Each relevant entity continues to fund benefit costs for both plans on
a pay-as-you-go basis, and each entity expects to continue funding its
post-retirement health care obligations until the end of 2004, which is a
date on or after the date when its required cost maintenance period as
defined under Internal Revenue Code Section 420 expires.  These entities
believe that they generally have no obligation to continue the post-
retirement life insurance benefits, and most terminated such benefits
effective at the end of 2003.  Medical benefits are expected to either
terminate or be significantly revised at the end of 2004.  Kaanapali Land
has not assumed any obligation to fund the cost of these benefits on behalf
of any of its affiliates.



<PAGE>


     No net periodic benefit cost or credit was recognized by the Company
for the pension plan at March 31, 2004 and 2003.  The retiree health and
life insurance benefits plan recognized credits of $125 and $2,426 at
March 31, 2004 and 2003, respectively.

     The relevant entities have elected to defer recognition of the
effects, if any, of the Medicare Prescription Drug Improvement and
Modernization Act of 2003 on the actuarial projections and assumptions
utilized by the plans.

(7)  INCOME TAXES

     The statues of limitations have expired with respect to the Company's
Federal tax returns for all years through 1997.  The examination of the
Company's Federal tax returns for the periods 1998-2000 has been completed.

As a result of this examination, the IRS has proposed adjustments in taxes
of approximately $7,400 (before interest), which the Company intends to
contest.  The statutes of limitations with respect to the Company's tax
returns for 1998 through 2002 remain open.  The Company believes adequate
provisions for Federal income taxes have been recorded for all years.

(8)  COMMITMENTS AND CONTINGENCIES

     Material legal proceedings of the Company are described below.  Unless
otherwise noted, the parties adverse to the Company in the legal
proceedings described below have not made a claim for damages in a
liquidated amount and/or the Company believes that it would be speculative
to attempt to determine the Company's exposure relative thereto, and as a
consequence believes that an estimate of the range of potential loss cannot
be made.  In proceedings filed prior to the Petition Date where a Debtor is
a defendant, such proceedings were stayed as against such Debtor by the
filing of the Reorganization Case.  Those proceedings may now continue
since the Plan Effective Date has occurred so long as the plaintiffs
therein filed timely claims under the Plan.  However, any judgments
rendered therein would be subject to the distribution provisions of the
Plan, which would in most cases result in the entitlement of such claims to
proceeds that are substantially less than the face amount of such
judgments.  Any claims that were not filed on a timely basis under the Plan
have been discharged by the Bankruptcy Court and thus the underlying legal
proceedings should not result in any liability to the Debtors.  Proceedings
against subsidiaries or affiliates of Kaanapali Land that are not Debtors
were not stayed by the Plan and may proceed.

     On September 20, 1996, Oahu Sugar Company, LLC, successor by merger to
Oahu Sugar Company, Limited ("Oahu Sugar") and a subsidiary of Kaanapali
Land, filed a lawsuit (the "First Arakaki Case"), Oahu Sugar v. Walter
Arakaki and Steve Swift, Case No. 96-3880-09, in the Circuit Court of the
First Circuit, State of Hawaii.  In the lawsuit, Oahu Sugar, which is a
Non-Debtor KLC Subsidiary, alleged that it entered into an agreement to
sell to defendants certain sugar cane processing equipment at Oahu Sugar's
sugar cane mill in Waipahu.  Oahu Sugar alleged that defendants failed to
timely dismantle and remove the equipment, as required by the agreement,
and that defendants were obligated to pay Oahu Sugar rent for the area
occupied by the equipment beyond the time provided for by the parties.
Oahu Sugar further alleged that it provided notice to defendants that Oahu
Sugar was entitled to treat the equipment as abandoned property and to sell
the equipment, because the equipment had not been removed from the property
in a timely fashion, as required by the parties' agreement.  In its
complaint, Oahu Sugar sought, among other things, declaratory relief that
it was entitled to treat the equipment as abandoned, damages for breach of
contract, and rent under an unjust enrichment theory.



<PAGE>


     Defendants filed an answer, as amended, denying the substantive
allegations of Oahu Sugar's complaint and asserting various affirmative
defenses.  In addition, the defendants filed a seven-count counterclaim
against Oahu Sugar.  In the counterclaim, defendants alleged, among other
things, that Oahu Sugar failed to make the equipment available for removal
on a timely basis, and that Oahu Sugar otherwise improperly interfered with
defendants' plans for the removal and subsequent sale of the equipment.  In
the counterclaim, defendants sought, among other things, general, special
and punitive damages, attorneys' fees, costs, and such other relief as the
Court may have deemed appropriate.

     Oahu Sugar's declaratory relief claim was settled in advance of trial.

Oahu Sugar obtained dismissals and directed verdicts on six of defendants'
claims.  The remaining portions of the complaint and counterclaim proceeded
to a jury trial and verdict.  On December 2, 1999, the jury denied Oahu
Sugar relief on its remaining claims and awarded the defendants
approximately $2,600 in damages on their counterclaim.  On March 2, 2000,
the trial court entered a judgment against Oahu Sugar for the $2,600 in
damages awarded by the jury.  In addition, the trial court awarded
counterclaimants $751 in attorneys' fees, $28 in costs and $866 in
prejudgment interest.  Oahu Sugar's post trial motions for judgment as a
matter of law and for a new trial were denied.  Oahu Sugar filed a notice
of appeal.  Since no appeal bond was obtained, the defendants began efforts
to collect the amounts awarded to them.  Defendants caused garnishee
summons to be issued to various affiliated and unaffiliated entities.  The
defendants scheduled a debtor's examination for August 23, 2000 which was
not concluded.  The Hawaii Supreme Court also scheduled the case for an
appellate conference and mediation that was unsuccessful.  Then, on
January 3, 2001, the Hawaii Supreme Court entered an order dismissing the
appeal.  The Supreme Court held that it lacked jurisdiction over the appeal
because the judgment entered on March 2, 2000 was legally defective in that
it did not identify the claim for which judgment was entered or dismiss all
of the other claims and counterclaims of the parties.  In light of the
order of the Hawaii Supreme Court, the parties filed legal briefs before
the trial court to have the court determine, among other things, whether a
corrected judgment consistent with the jury verdict was to be entered as of
March 2, 2000 or a new judgment order was required.  After hearing the
arguments of the parties, on March 19, 2001, the trial court ruled that it
would not enter a corrected judgment as of March 2, 2000 and that a new
judgment order was required.  On April 12, 2001, the court entered the new
judgment order on the counterclaims providing for the payment of
approximately $2,600 in damages, $730 in attorneys' fees, $28 in costs,
$867 in prejudgment interest, and additional prejudgment interest from
January 20, 2000 through April 12, 2001.  From and after entry of the
order, post-judgment interest was to accrue on the unpaid balance at the
statutory rate of ten percent per annum until paid in full.  Oahu Sugar
continued to pursue its appeal in the First Arakaki Case and the opposing
side filed a cross appeal seeking further relief on any potential retrial
of the matter.  The case was fully briefed and was awaiting a decision by
the Hawaii Supreme Court.  However, the First Arakaki Case is subject to an
overall potential settlement with the Second Arakaki Case and the City Bank
Foreclosure case, each as described below.

     On or about December 15, 2000, Oahu Sugar and Oahu MS Development
Corp. ("Oahu MS", f/k/a Amfac Property Development Corp.), subsidiaries of
Kaanapali Land, among others, were named in a lawsuit (the "Second Arakaki
Case") entitled Walter Arakaki and Steve Swift v. Oahu Sugar Company,
Limited et al, Civil No. 00-1-3817-12, and filed in the Circuit Court of
the First Circuit of Hawaii.  This case is also the subject of a potential
settlement as described below.  In the complaint, as amended, plaintiffs
sought a declaration that certain conveyances of real estate made by Oahu
Sugar or Oahu MS, since December 1996, were allegedly fraudulent transfers
made in violation of the common law, the Hawaii fraudulent transfer act,
and rights which they claim arose in connection with the claims they filed
in the First Arakaki Case.  Plaintiffs sought, among other things,
injunctive and declaratory relief, compensatory damages, punitive damages,
orders of attachment against sales proceeds, voidance of certain transfers,
foreclosure and other remedies in connection with various transfers of real


<PAGE>


estate made by Oahu Sugar to Oahu MS, the Young Men's Christian Association
of Honolulu ("YMCA"), and the Filipino Community Center, Inc. ("FCC"),
among others, all over the years 1996-2000.  Although the amount of damages
sought in the Second Arakaki Case was unspecified, the case arose in
connection with the plaintiffs' efforts to realize on their judgment in the
First Arakaki Case described above.  The YMCA and FCC were also named
defendants in this action and have filed cross-claims for relief against
Oahu Sugar and Oahu MS for alleged breach of warranty of title, indemnity
and contribution in connection with their respective transactions, and
seeking, among other things, damages, attorneys' fees, costs, and
prejudgment interest.  Oahu Sugar and Oahu MS filed answers to the
complaint, as amended, and the cross-claims.  On May 3, 2001, plaintiffs
filed an amended complaint dropping the remedy of foreclosure in connection
with certain property transferred to the YMCA and adding various
allegations including, without limitation, allegations regarding the final
judgment entered in the underlying matter.

     On October 23, 2002, Oahu MS was named in a civil action entitled City
Bank v. Amfac Property Development Corp., et al, pending in the Circuit
Court of the First Circuit, State of Hawaii, Civil No. 02-2494-10.  In this
case, plaintiff sought injunctive relief and declaratory relief to cease
actions preventing City Bank and its consultants from gaining access to the
mortgaged property for environmental testing.  In addition, the complaint
sought unspecified damages as may be shown at trial, costs, interest and
reasonable attorneys' fees, and such other further relief as the Court
would choose to award.  A stipulation for dismissal without prejudice was
entered on July 9, 2003.

     On January 2, 2003, Oahu MS was named in a civil action (the "City
Bank Foreclosure Case") entitled City Bank v. Amfac Property Development
Corp., et al, in the Circuit Court of the First Circuit, State of Hawaii,
Civil No. 03-1-0005-01.  In this case, plaintiff sought foreclosure of
property owned by Oahu MS and encumbered by a mortgage in favor of City
Bank.  City Bank made a $10,000 loan to APDC under a loan agreement dated
December 18, 1996.  The loan became due on December 1, 2002.  City Bank
claimed that as a result of Oahu MS's failure to pay the loan when due,
Oahu MS was in default under the loan documents.  It alleged that the
amount due as of December 2, 2002 was approximately $2,900 plus a per diem
charge of approximately $1 accruing on the unpaid principal, until payment
was made and/or interest changes, plus advances and expenses incurred in
connection with the action.  In its complaint, City Bank sought all amounts
allegedly due and owing to City Bank, together with legal interest
thereafter to accrue thereon and all advances, costs and attorneys' fees; a
foreclosure decree and sale; the appointment of a receiver to conduct an
environmental audit on a specified portion of the secured property and to
collect rents being paid on a portion of the mortgaged properties that
consist of subleases on improved land; the entry of an order of deficiency
against APDC to the extent such exists after sale with execution to follow
thereon; and such other relief as the court may deem proper.  This action
had been consolidated with the Second Arakaki Case described above
(together, the "Consolidated Action").  Together with the Complaint, City
Bank filed a Motion for Appointment of Receiver alleging that it was
entitled to have a receiver appointed for an environmental audit on the
mortgaged property and collection of all net rental income assigned to City
Bank.  With regard to the subleases, on June 28, 2002, Oahu MS and City
Bank executed three assignments of net rental income as security for the
loan Oahu MS had obtained from City Bank in 1996 ("Assignments").  Two of
the Assignments pertained to subleases under leases with the Trustees Under
the Will and of the Estate of Bernice Pauahi Bishop, deceased, also known
as Kamehameha Schools ("Trustees"): Lease Number 24,710 ("Bougainville
Assignment"), and Lease Number 24,720 ("Halawa Assignment").  The third
Assignment pertained to subleases and leases with Queen's Hospital located
on Bougainville Industrial Park and the Halawa Light Industrial Park
("Queen's Assignment").  The three Assignments gave City Bank certain
rights in the net rental income derived from each of the properties.  This
motion was granted.



<PAGE>


     The parties to the City Bank Foreclosure Action commenced settlement
discussions in January 2003.  Although City Bank argued that no agreement
had been reached between the two parties, Oahu MS contended that a valid
and enforceable settlement agreement had been reached as to all material
terms providing for a modification and extension of the terms of the loan
in question.

     On May 12, 2003, City Bank filed a motion for partial summary judgment
against all defendants and interlocutory decree of foreclosure and for
entry of final judgment pursuant to Hawaii Rules of Civil Procedure 54(b),
seeking foreclosure on the Assignments.  The motion was granted at a
hearing on June 16, 2003.

     Soon thereafter, on June 5, 2003, Trustees filed a motion to intervene
in order to assert their interests in the rental income from the Halawa and
Bougainville Assignments.  Trustees' Motion was granted on July 23, 2003,
and Trustees filed their answer to complaint in this action on July 24,
2003, with a Cross-Claim against Oahu MS.  Thereafter, Trustees, City Bank
and Oahu MS reached agreement on the terms of a stipulation pertaining to
the receivership.

     Mediation of the Consolidated Action and certain matters concerning
the receivership commenced in late August 2003.  Trustees did not
participate in the mediation as their claims as intervenor had been
resolved through agreement with City Bank and their claims against Oahu MS
were to be determined through the arbitration proceedings described below.
However, Oahu Sugar did participate in the mediation in order that both
Oahu MS and its affiliates could achieve an overall settlement of the
claims surrounding both the Consolidated Action and the First Arakaki Case.

Mediation was unsuccessful at the initial session; however, the parties
continued to meet thereafter with the participation of the mediator and,
occasionally, the judge in the Consolidated Action.  This resulted in a
settlement that was signed by the attorneys for all parties in late
September 2003.  Such agreement provided the principal terms of the
settlement and stated that a more formal and detailed settlement agreement
would be drafted and signed.

     In December 2003 the settlement was consummated.  In general, the
terms of the settlement provided that Oahu MS convey the mill site property
that is encumbered by the City Bank loan to City Bank and pay Swift and
Arakaki the amount of $100, and pay City Bank certain expenses of the
transactions.  YMCA and FCC also contributed money to the settlement, as
well as Ticor Title Insurance Company, which had written title insurance
policies insuring City Bank and YMCA.  City Bank provided the plaintiffs
with what amounted to a participation in the property and will perform any
environmental cleanup required on the property.  All parties were released
from the claims brought against them in the Consolidated Action and the
First Arakaki Case, effective as of the date that is 91 days after the
property was deeded by Oahu MS to City Bank.  The Consolidated Action and
the appeal of the First Arakaki Case were dismissed by orders entered on
March 31, 2004. In connection with the settlement, the Company reversed a
previous accrual of $4,900 and reported such as a reduction in general and
administrative expenses.  In addition, the Company recorded a gain on the
extinguishment of the City Bank loan of approximately $500.

     On June 3, 2003, Trustees filed a Complaint against Oahu MS, a
subsidiary of Kaanapali Land, and City Bank in Trustees Under the Will and
the Estate of Bernice Paugahi Bishop, deceased, also known as Kamehameha
Schools v. Amfac Property Development Corp., et al, in the Circuit Court of
the First Circuit, State of Hawaii, Civil No. 03-1-1154-05, seeking, among
other things, cancellation of its leases with APDC, collection of unpaid
net rents on the leases, and appointment of a receiver to collect future
subrents under the subleases.  Concurrent therewith, Trustees filed a
motion for appointment of receiver.  Oahu MS filed its answer on June 24,
2003.



<PAGE>


     On July 2, 2003, Oahu MS filed a demand for arbitration of Trustees'
claims with the American Arbitration Association ("AAA"), and on July 3,
2003, APDC filed a motion to dismiss, or in the alternative, to stay
plaintiffs' complaint pending arbitration.  On July 2, 2003, Trustees filed
a motion for partial summary judgment against all defendants.  Both motions
were set to be heard on August 11, 2003.  Prior to that date, however, the
Court informally advised the parties that it would likely enforce the
arbitration provisions contained in the leases, and the parties thereafter
reached agreement on a stipulation staying the case pending arbitration.
The parties thereafter entered into mediation and have reached a settlement
in principle, pending the collection of various information necessary to
the completion thereof.  There are no assurances that the settlement will
be consummated.

     On or about February 23, 2001 Kekaha Sugar Co., Ltd., a subsidiary of
Kaanapali Land, received a letter from the Hawaii Department of Health
("HDOH") assigning the Kekaha Sugar Co., Ltd. site a high priority status
based on HDOH's review of available environmental data.  In the letter,
HDOH identified five major areas of potential environmental concern
including the former wood treatment plant, the herbicide mixing plant, the
seed dipping plant, the settling pond, and the Kekaha Sugar Mill.  While
setting forth specific concerns, the HDOH reserved the right to designate
still further areas of potential concern which might require further
investigation and possible remediation.  HDOH further reserved the right to
modify its prioritization of the site should conditions warrant.  The
assignment of the high priority status will likely result in a high degree
of oversight by the HDOH as the issues raised are studied and addressed.
Kekaha Sugar Co., Ltd. has responded to the letter.  The United States
Environmental Protection Agency has performed a visual inspection of the
property and indicated there will be some testing performed.  HDOH has
performed some testing at the site and results are pending.  Kekaha Sugar
Co., Ltd. is substantially without assets and further pursuit of this
matter by HDOH could have a material adverse effect on the financial
condition of Kekaha Sugar Co., Ltd.

     On or about February 23, 2001, Lihue Plantation, a subsidiary of
Kaanapali Land, received a similar letter from the HDOH assigning the LPCo
site a high priority status based on HDOH's review of available
environmental data.  In the letter, HDOH identified four major areas of
potential environmental concern including the Lihue Plantation herbicide
mixing plant, the seed dipping plant, the settling pond and the Lihue Sugar
Mill.  While setting forth specific concerns, the HDOH reserved the right
to designate still further areas of potential concern which might require
further investigation and possible remediation.  HDOH further reserved the
right to modify its prioritization of the site should conditions warrant.
As noted above, the high priority assignment will likely result in a high
degree of oversight by the HDOH as the issues raised are studied and
addressed.  Lihue Plantation is substantially without assets and further
pursuit of this matter by HDOH could have a material adverse effect on the
financial condition of LPCo.

     Pioneer Mill, a subsidiary of Kaanapali Land, is engaged in an ongoing
cleanup arising out of the discovery of petroleum contamination found at
the Pioneer Mill site.  The Pioneer Mill site has been assigned a high
priority and the HDOH has shown an interest in the environmental conditions
relating to or arising out of the former operations of Pioneer Mill.  These
issues will have to be addressed as they are raised.  Pioneer Mill has
received a report on the results of environmental testing conducted on the
site by the United States Environmental Protection Agency and HDOH.
Pioneer Mill is currently making arrangements to address the issues
evidenced by the test results, which are not currently believed to be
material to the Company.  EPA has designated HDOH as the oversight agency
for Pioneer Mill.



<PAGE>


     As a result of an administrative order issued to Oahu Sugar, a
subsidiary of Kaanapali Land, by the HDOH, Order No. CH 98-001, dated
January 27, 1998, Oahu Sugar is currently engaged in environmental site
assessment of lands it leased from the U.S. Navy and located on the Waipio
Peninsula.  Oahu Sugar has submitted a Remedial Investigation Report to the
HDOH.  The HDOH has provided comments which indicate additional testing may
be required.  Oahu Sugar has responded to these comments with additional
information.  Oahu Sugar is substantially without assets and further
pursuit of this matter by HDOH could have a material adverse effect on the
financial condition of Oahu Sugar.  On January 9, 2004, the United States
Environmental Protection Agency, Region IX (hereinafter, "EPA"), issued a
request to Oahu Sugar seeking information related to the actual or
threatened release of hazardous substances, pollutants and contaminants at
the Waipio Peninsula portion of the Pearl Harbor Naval Complex National
Priorities List Superfund Site.  The request seeks, among other things,
information relating to the ability of Oahu Sugar to pay for or perform a
clean up of the land formerly occupied by Oahu Sugar.  Oahu Sugar is in the
process of responding to the information requests.  Oahu Sugar is
substantially without assets and the pursuit of any action, informational,
enforcement, or otherwise, could have a material adverse effect on the
financial condition of Oahu Sugar.

     The IRS filed a claim in the bankruptcy proceedings in the aggregate
amount of approximately $20,600 for taxes, interest and penalties related
to the years 1998-2000.  However, the Company has entered into a
stipulation with the IRS whereby the IRS has withdrawn its claim due to the
fact that the Plan leaves the IRS unimpaired relative to any taxes that may
be due.  As a result of its examination relative to the years 1998-2000 the
IRS has proposed adjustments in taxes of approximately $7,400 (before
interest).  The Company intends to contest the proposed deficiency.
However, there can be no assurance that the Company will be successful in
such contest and, although the Company has reserved for potential tax
liabilities on its financial statements, to the extent that the Company is
unsuccessful in defending against any such claims, the amount for which the
Company could be liable could be material.

     Kaanapali Land, as successor by merger to other entities, and D/C
Distribution Corporation ("D/C"), a subsidiary of Kaanapali Land, have been
named as defendants in personal injury actions allegedly based on exposure
to asbestos.  There are approximately 130 cases against such subsidiary
that are pending on the mainland and are alleged based on such subsidiary's
prior business operations.  Each company believes that it has meritorious
defenses against these actions, but can give no assurances as to the
ultimate outcome of these cases.  In the case of D/C, there can be no
certainty that it will be able to satisfy all of its liabilities for these
cases, as it is without assets to satisfy any material existing or future
judgments, there can be no assurances that these cases (or any of them), if
adjudicated in a manner adverse to the subsidiary, will not have a material
adverse effect on the financial condition of such subsidiary.  Kaanapali
Land does not believe that it has liability, directly or indirectly, for
such subsidiary's obligations.

     Northbrook Corporation ("Northbrook"), a predecessor by merger to
Kaanapali Land was named in a lawsuit filed in August 2003 in the Circuit
Court of Cook County, Chicago, Illinois, styled Silverado Golf & Country
Club, Inc. v. JMB Realty Corporation and Northbrook Corporation.  The
lawsuit sought unspecified damages and alleges that the defendants engaged
in fraudulent conduct in connection with the administration and termination
of a defined benefit pension plan that had been sponsored by Northbrook
Corporation and certain affiliates and predecessors.  The complaint has
since been amended.  In the eight count amended complaint, plaintiff seeks
unspecified general damages, the imposition of a constructive trust, an
accounting, attorneys' fees and costs, interest, punitive damages and such


<PAGE>


other further relief as is deemed appropriate by the court under the
circumstances.  Plaintiff seeks return of approximately $1,000 in pension
related costs paid by it over the period 1989-1994, the return of all
pension related costs paid by it since 1995, and all fees, costs and other
consideration charged to or received by defendants from plaintiff since
1988.  The participants in the pension plan included employees of an
affiliate who were engaged in employment at the Silverado Country Club &
Resort, in Napa, California (the "Resort").  The Resort was and continues
to be operated pursuant to a Management Agreement between the plaintiff and
Xanterra Parks & Resorts, L.L.C. ("Xanterra"), a former subsidiary of
Northbrook that continues to be under common control with the defendants.
The plaintiffs are also pursuing their claims in a separate action against
Xanterra that is currently being arbitrated in San Francisco, California.
The defendants in the Chicago action vigorously deny all of the plaintiff's
claims.  Although the amended complaint has only recently been filed and an
answer has not yet been filed, the defendants intend to defend, among other
things, on the basis that it had no relationship with the plaintiff and no
duties to them whatsoever and that the plaintiff was not a participating
employer in the pension plan and otherwise had no interest therein.  In
addition, to the extent that the California arbitration is decided in favor
of Xanterra, such decision would provide further defenses for Kaanapali
Land (as successor by merger to Northbrook).  However, there can be no
assurance that the plaintiffs will not ultimately prevail on some or all of
their claims.

     Other than as described above and the Reorganization Case as described
above, the Company is not involved in any material pending legal
proceedings, other than ordinary routine litigation incidental to its
business. The Company and/or certain of its affiliates have been named as
defendants in several pending lawsuits. While it is impossible to predict
the outcome of such routine litigation that is now pending (or threatened)
and for which the potential liability is not covered by insurance, the
Company is of the opinion that the ultimate liability from any of this
litigation will not materially adversely affect the Company's consolidated
results of operations or its financial condition.

(9)  CALCULATION OF NET INCOME PER SHARE

     The following tables set forth the computation of net income (loss)
per share - basic and diluted:
                                                    THREE MONTHS ENDED
                                                          MARCH 31,
                                                  ----------------------
                                                   2004           2003
                                                 --------       --------
                                                  (Amounts in thousands
                                                except per share amounts)
NUMERATOR:
Net income (loss) . . . . . . . . . . . . .      $    (46)          (651)
                                                 ========       ========
DENOMINATOR:
Denominator for net income (loss)
 per share - basic and diluted. . . . . . .      $  1,792          1,863
                                                 ========       ========
Net income (loss) per share -
 basic and diluted. . . . . . . . . . . . .      $   (.03)          (.35)
                                                 ========       ========

(10) BUSINESS SEGMENT INFORMATION

     As described in Note 1, the Company operates in three business
segments.  Total revenues and operating profit by business segment are
presented in the tables below.

     Total revenues by business segment includes primarily (i) sales, all
of which are from unaffiliated customers and (ii) interest income that is
earned from outside sources on assets which are included in the individual
industry segment's identifiable assets.



<PAGE>


     Operating profit is comprised of total revenue less operating
expenses.  In computing operating profit, none of the following items have
been added or deducted:  general corporate revenues and expenses, interest
expense, income taxes, and equity in income (loss) from unconsolidated
investments.

                                                    Three Months Ended
                                                          March 31,
                                                   --------------------
                                                     2004        2003
                                                   --------    --------
Revenues:
  Property. . . . . . . . . . . . . . . . . . .    $    526      11,813
  Agriculture . . . . . . . . . . . . . . . . .         736         423
  Golf. . . . . . . . . . . . . . . . . . . . .       1,069       1,136
  Corporate . . . . . . . . . . . . . . . . . .         214          42
                                                   --------    --------
                                                   $  2,545      13,414
                                                   ========    ========

Operating Profit (loss):
  Property. . . . . . . . . . . . . . . . . . .    $   (258)       (838)
  Agriculture . . . . . . . . . . . . . . . . .         430         158
  Golf. . . . . . . . . . . . . . . . . . . . .         196         207
                                                   --------    --------

Operating income (loss) . . . . . . . . . . . .         368        (473)

Corporate . . . . . . . . . . . . . . . . . . .        (297)        (52)
Interest expense. . . . . . . . . . . . . . . .        (146)       (303)
Equity in income (loss) from
  unconsolidated investments. . . . . . . . . .       --           (146)
                                                   --------    --------
Loss from continuing operations
  before income taxes . . . . . . . . . . . . .    $    (75)       (974)
                                                   ========    ========



PART I.  FINANCIAL INFORMATION

     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
              FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

General

     In addition to historical information, this Report contains forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995.  These statements are based on management's current
expectations about its businesses and the markets in which the Company
operates.  Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties or other
factors which may cause actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Actual operating results may be affected by various factors including,
without limitation, changes in national and Hawaiian economic conditions,
competitive market conditions, uncertainties and costs related to the
imposition of conditions on receipt of governmental approvals and costs of
material and labor, and actual versus projected timing of events all of
which may cause such actual results to differ materially from what is
expressed or forecast in this report.



<PAGE>


     The Debtors shall continue to exist after the Plan Effective Date as
separate legal entities.  Except as otherwise provided in the Order or the
Plan, the Debtors have been discharged from all claims and liabilities
existing through the Plan Effective Date.  As such, all persons and
entities who had receivables, claims or contracts with the Debtors that
first arose prior to the Petition Date and have not previously filed timely
claims under the Plan or have not previously reserved their right to do so
in the Reorganization Case are precluded from asserting any claims against
the Debtors or their assets for any acts, omissions, liabilities,
transactions or activities that occurred before the Plan Effective Date.

     On November 14, 2002, pursuant to the Plan, all of the KLC Debtors
executed and delivered to Kaanapali Land a certain Secured Promissory Note
in the principal amount of $70 million.  Such note matures on October 31,
2011 and carries an interest rate of 3.04% compounded semi-annually.  The
note, which is prepayable, is secured by substantially all of the real
property owned by the KLC Debtors, pursuant to a certain Mortgage, Security
Agreement and Financing Statement, dated as of November 14, 2002 and placed
on record in December 2002.  The note has been eliminated in the
consolidated financial statements because the obligors are consolidated
subsidiaries of Kaanapali Land.

     In addition to such Secured Promissory Note, certain Non-Debtor KLC
Subsidiaries continue to be liable to Kaanapali Land under certain
guarantees (the "Guarantees") that they had previously provided to support
certain Senior Indebtedness (as defined in the Plan) and the Certificate of
Land Appreciation Notes ("COLA Notes") formerly issued by Amfac/JMB Hawaii,
Inc. (as predecessor to KLC Land).  Although such Senior Indebtedness and
COLA Notes were discharged under the Plan, the Guarantees of the Non-Debtor
KLC Subsidiaries were not.  Thus, to the extent that the holders of the
Senior Indebtedness and COLA Notes did not receive payment on the
outstanding balance thereof from distributions made under the Plan, the
remaining amounts due thereunder remain obligations of the Non-Debtor KLC
Subsidiaries under the Guarantees.  Under the Plan, the obligations of the
Non-Debtor KLC Subsidiaries under such Guarantees were assigned by the
holders of the Senior Indebtedness and COLA Notes to Kaanapali Land on the
Plan Effective Date.  Kaanapali Land has notified each of the Non-Debtor
KLC Subsidiaries that are liable under such Guarantees that their
respective guarantee obligations are due and owing and that Kaanapali Land
reserves all of its rights and remedies in such regard.  Given the
financial condition of such Non-Debtor KLC Subsidiaries, however, it is
unlikely that Kaanapali Land will realize payments on such Guarantees that
are more than a small percentage of the total amounts outstanding
thereunder or that in the aggregate will generate any material proceeds to
the Company.  These Guarantee obligations have been eliminated in the
consolidated financial statements because the obligors are consolidated
subsidiaries of Kaanapali Land, which is now the sole obligee thereunder.

     As of March 31, 2004, the Company had cash of approximately $41
million, which is available for working capital requirements, including
future operating expenses, and the Company's obligations for Kaanapali 2020
development costs, environmental remediation costs, including those on
former mill-sites, other potential environmental costs, potential tax
liabilities resulting from the IRS audits, retiree medical insurance
benefits (which are generally expected to be paid through the end of 2004),
and existing and possible future litigation.  The primary business of
Kaanapali Land is the land development of the Company's assets on the
Island of Maui.  The Kaanapali 2020 development plan will take many years
at significant expense to fully implement, although the material portion of
such anticipated expenses are not currently subject to any contractual
commitments.  Proceeds from land sales are the Company's only source of
significant cash proceeds and the Company's ability to meet its liquidity
needs over the longer term is dependent on the timing and amount of such
proceeds.



<PAGE>


      The Company's current indebtedness includes an $8.3 million mortgage
loan secured by the Waikele Golf Course which has a maturity date of
December 1, 2006, with an interest rate of LIBOR plus 3.75% (LIBOR floor of
3%) (6.75% per annum at March 31, 2004).  The Company currently expects to
service and ultimately refinance such loan in the ordinary course of
business.

     The Company's continuing operations have in recent periods been
primarily reliant upon the net proceeds of sales of developed and
undeveloped land parcels.  A purchase money note receivable related to Lot
2 in the amount of approximately $14.4 million was paid in March 2004.
Approximately one-half of the proceeds of the note is subject to adjustment
based upon the number of units approved for construction on Lot 2.  A
purchase money note related to Lot 4 in the amount of approximately $17
million is due no later than August 2006.  If such note is paid upon
maturity, the Company expects that it will have adequate liquidity for the
foreseeable future and the Company expects that it now has sufficient
liquidity to fund the Company's operations until that time.  However, there
can be no assurance that the cash proceeds relating to Lot 4 will be
realized or that the proceeds from the Lot 2 note will not be adjusted down
upon final approval of the development plan on Lot 2.

     Although the Company does not currently believe that it has
significant liquidity problems over the near term, should the Company prove
to be unable to satisfy its liquidity requirements from its existing
resources it will likely pursue alternate financing arrangements.  However
it cannot be determined at this time what, if any, financing alternatives
may be available and at what cost.  Therefore, there can be no assurance
that there will be any available financing, and a lack of such financing if
needed would have a material adverse effect on the operations of the
Company.

RESULTS OF OPERATIONS

     Reference is made to the footnotes to the financial statements for
additional discussion of items addressing comparability between years.

     Note receivable, net decreased in the accompanying balance sheets due
to the collection of the note receivable received in the sale of Lot 2.

    The accumulated post-retirement benefit obligation decreased due to
benefits paid and the reversal of deferred income which has been reflected
as a reduction of cost items in the Consolidated Statement of Operations.

     The decrease in sales and cost of sales is primarily due to the sale
of Lot 2 during the first quarter of 2003.

     Interest income increased primarily as a result of income earned on
notes receivable arising from 2003 property sales.

     Selling, general and administrative decreased primarily as a result of
the recovery from an insurance company of amounts previously expensed by
the Company relating to certain liability claims as well as a decrease in
legal fees incurred during the first quarter of 2004 as a result of the
settlement of certain litigation during 2003.

     Interest decreased due to the settlement with City Bank which resulted
in the Company being released from its obligations relating to the mortgage
with City Bank.

     The change in equity in income (loss) from unconsolidated investments
is primarily due to the Company's settlement with the ERS that resulted,
among other things, in the foreclosure of the Company's indirect interest
in the RKGC.

     The decrease in income tax benefit is a result of the decrease in the
Company's loss from continuing operations.



<PAGE>


INFLATION

     Due to the lack of significant fluctuations in the level of inflation
in recent years, inflation generally has not had a material effect on real
estate development.

     In the future, high rates of inflation may adversely affect real
estate development generally because of their impact on interest rates.
High interest rates not only increase the cost of borrowed funds to the
Company, but can also have a significant effect on the affordability of
permanent mortgage financing to prospective purchasers. However, high rates
of inflation may permit the Company to increase the prices that it charges
in connection with real property sales, subject to general economic
conditions affecting the real estate industry and local market factors, and
therefore may be advantageous where property investments are not highly
leveraged with debt or where the cost of such debt has been previously
fixed.


     ITEM 4.  CONTROLS AND PROCEDURES

     The principal executive officer and the principal financial officer of
the Company have evaluated the effectiveness of the Company's disclosure
controls and procedures as defined in Rule 13a-15(e) of the Securities
Exchange Act of 1934, as amended, (the "Exchange Act") as of the end of the
period covered by this report.  Based on such evaluation, the principal
executive officer and the principal financial officer have concluded that
the Company's disclosure controls and procedures were effective to ensure
that information required to be disclosed was recorded, processed,
summarized and reported within the time periods specified in the applicable
rules and form of the Securities and Exchange Commission.

     There was no change in internal control over financial reporting that
occurred during the period covered by this report that materially affected,
or is reasonably likely to materially affect, our internal control over
financial reporting.



PART II.  OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS

                 See Note 8 to the Condensed Consolidated Financial
            Statements included in Part I of this report.

     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

      (a)   Exhibits.

             3.1  Amended and Restated Limited Liability Company Agreement
                  of Kaanapali Land, LLC dated November 14, 2002 filed as
                  an exhibit to the Company's Form 10 filed May 1, 2003 and
                  hereby incorporated by reference.

            31.1. Certification of Chief Executive Officer pursuant to
                  Rule 13a-14(a) is filed herewith.

            31.2. Certification of Chief Financial Officer pursuant to
                  Rule 13a-14(a) is filed herewith.

            32.   Certifications pursuant to 18 U.S.C. Section 1350, as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                  of 2002 are filed herewith.

      (b)   No reports on Form 8-K were filed since the beginning of the
            last quarter of the period covered by the report.




<PAGE>


                                  SIGNATURE


     Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                              KAANAPALI LAND, LLC

                              By:   Pacific Trail Holdings, LLC
                                    (sole member)


                                    /s/ Gailen J. Hull
                                    ---------------------
                              By:   Gailen J. Hull
                                    Senior Vice President
                              Date: May 14, 2004