Gladstone Land Corporation (LAND) Bundle
A Brief History of Gladstone Land Corporation
Gladstone Land Corporation (NASDAQ: LAND) is a real estate investment trust (REIT) focused on acquiring and leasing farmland. The company primarily invests in high-quality farmland in the United States, which is leased to farmers who grow various crops. As of September 30, 2024, Gladstone Land's total assets were valued at approximately $1.317 billion, down from $1.387 billion at the end of 2023.
Financial Performance Overview
For the three months ended September 30, 2024, Gladstone Land reported operating revenues of $22.571 million, a decrease from $23.534 million in the same period of 2023. The net income attributable to the company for the same quarter was $6, compared to $3.141 million in the prior year. The nine-month results ending September 30, 2024, showed total operating revenues of $64.120 million, down from $65.946 million in 2023, while net income was $12.750 million, slightly higher than $12.746 million from the previous year.
Key Financial Metrics
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues | $22.571 million | $23.534 million | $64.120 million | $65.946 million |
| Net Income | $6,000 | $3.141 million | $12.750 million | $12.746 million |
| Net Loss Attributable to Common Stockholders | $(5.787) million | $(2.964) million | $(4.992) million | $(5.557) million |
Asset Management and Acquisitions
As of September 30, 2024, Gladstone Land owned a total of 53,787 acre-feet of long-term water assets valued at approximately $36.8 million. In the third quarter of 2024, the company acquired 2,260 gross acre-feet of water from the Byron-Bethany Irrigation District for approximately $883,000, at a rate of about $391 per acre-foot.
Debt and Financing Activities
Gladstone Land's total borrowings as of September 30, 2024, amounted to approximately $530.678 million, with a weighted-average interest rate of 3.83%. The company repaid around $13.3 million in loans during the third quarter of 2024, with interest rates on these borrowings ranging from 2.45% to 6.97%.
Disaster Impact and Losses
In September and October 2024, Hurricanes Helene and Milton caused damage to several farms owned by Gladstone Land. The estimated carrying value of the damage amounted to approximately $275,000, leading to a property and casualty loss recorded during the third quarter.
Stockholder Equity and Dividends
As of September 30, 2024, Gladstone Land's total stockholders' equity was approximately $691.204 million, down from $719.613 million at the end of 2023. The company declared dividends of $6,024,000 on cumulative redeemable preferred stock during the third quarter of 2024.
Future Outlook
Looking ahead, Gladstone Land continues to focus on expanding its portfolio of high-quality farmland and maintaining strong relationships with its tenants. The company remains committed to increasing shareholder value through strategic acquisitions and effective asset management.
A Who Owns Gladstone Land Corporation (LAND)
Overview of Ownership Structure
As of 2024, Gladstone Land Corporation (LAND) has a diverse ownership structure comprising both institutional and individual shareholders. The company is externally managed by Gladstone Management Corporation, led by David Gladstone, who also serves as the Chairman and CEO. The ownership of the corporation can be categorized into common stock and various series of preferred stock.
Common Stock Ownership
As of November 5, 2024, the number of shares of common stock outstanding was approximately 36,184,658 shares . The common stock is traded on the NASDAQ under the ticker symbol LAND.
Institutional Ownership
As of 2024, institutional investors hold a significant portion of Gladstone Land Corporation's stock. The following table summarizes the top institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 9.66% |
| The Vanguard Group, Inc. | 2,800,000 | 7.74% |
| State Street Corporation | 2,200,000 | 6.09% |
| Invesco Ltd. | 1,500,000 | 4.15% |
| Fidelity Investments | 1,200,000 | 3.32% |
Preferred Stock Ownership
Gladstone Land Corporation has issued various series of preferred stock, which are also held by institutional and retail investors. The Series D Term Preferred Stock has a significant presence in the market.
| Preferred Stock Series | Shares Outstanding | Liquidation Preference per Share |
|---|---|---|
| Series B | 5,901,330 | $25.00 |
| Series C | 10,156,509 | $25.00 |
| Series D | 2,415,000 | $25.00 |
| Series E | 175,335 | $25.00 |
Management and Insider Ownership
David Gladstone, as the CEO and Chairman, holds a considerable number of shares in the company, reflecting his vested interest in its performance. As of 2024, insider ownership is approximately 1.5 million shares, representing about 4.15% of total shares outstanding .
Market Performance and Shareholder Returns
The estimated Net Asset Value (NAV) per common share as of September 30, 2024, was approximately $15.57 . The closing price of common stock on the same date was $13.90, indicating a discrepancy between market price and NAV .
Conclusion on Ownership Dynamics
Gladstone Land Corporation continues to exhibit a well-rounded ownership structure, with significant institutional backing and active participation from individual investors, particularly in the preferred stock segments. The presence of David Gladstone in leadership ensures alignment between management and shareholder interests.
Gladstone Land Corporation (LAND) Mission Statement
Overview of Gladstone Land Corporation
Gladstone Land Corporation is an agricultural real estate investment trust (REIT) primarily focused on owning and leasing farmland. The company aims to provide attractive returns to its investors while promoting sustainable agricultural practices. As of 2024, the mission statement reflects its commitment to acquiring, owning, and leasing high-quality farmland to generate income through long-term leases.
Mission Statement Details
The mission statement emphasizes the following core principles:
- Investment in Farmland: Gladstone Land Corporation is committed to acquiring and managing high-quality agricultural properties.
- Long-term Sustainability: The company aims to support sustainable agricultural practices that benefit the environment and local communities.
- Investor Returns: Focused on generating stable and attractive returns for shareholders through consistent rental income and property appreciation.
- Partnerships: Building strong relationships with farmers and agricultural operators to ensure successful farming operations on its properties.
Financial Performance Indicators
As of September 30, 2024, Gladstone Land Corporation reported the following financial metrics relevant to its mission:
| Metric | Value |
|---|---|
| Net Income | $12.75 million |
| Net Loss Attributable to Common Stockholders | $(5.79) million |
| Comprehensive (Loss) Income | $(2.56) million |
| Operating Income | $6.87 million |
| Total Assets | $1.32 billion |
| Total Equity | $691.20 million |
| Estimated NAV per Common Share | $15.57 |
| Closing Stock Price (September 30, 2024) | $13.90 |
Acquisitions and Investments
Gladstone Land Corporation actively invests in agricultural assets. Recent notable transactions include:
- Acquisition of 2,260 gross acre-feet of water from Byron-Bethany Irrigation District for approximately $883,000, approximately $391 per gross acre-foot.
- Sale of a 3,748-acre farm in Martin County, Florida, for approximately $65.7 million, resulting in a net gain of approximately $10.4 million.
Debt and Financing Activities
As of September 30, 2024, Gladstone Land Corporation's debt metrics are as follows:
| Debt Metric | Value |
|---|---|
| Total Borrowings | $530.48 million |
| Weighted-Average Interest Rate | 3.83% |
| Loan Repayments (July - September 2024) | $13.3 million |
Lease Expirations and Revenue
Lease expirations are critical for cash flow and operational planning. The following table summarizes lease expirations as of September 30, 2024:
| Year | Number of Expiring Leases | Expiring Leased Acreage | Lease Revenue |
|---|---|---|---|
| 2024 | 7 | 4,058 acres | $2.05 million |
| 2025 | 17 | 24,592 acres | $14.54 million |
| 2026 | 8 | 10,394 acres | $3.20 million |
| 2027 | 9 | 8,497 acres | $7.18 million |
| 2028 | 13 | 4,867 acres | $3.32 million |
| 2029 | 8 | 1,973 acres | $2.24 million |
| Thereafter | 42 | 56,101 acres | $30.48 million |
Current Investment Portfolio
As of September 30, 2024, Gladstone Land Corporation's investment portfolio includes:
| Location | No. of Farms | Total Acres | Acre-feet of Water Assets | Net Cost Basis |
|---|---|---|---|---|
| California | 63 | 34,844 | 53,787 | $847.37 million |
| Florida | 25 | 18,720 | 0 | $166.31 million |
| Washington | 6 | 2,520 | 0 | $57.01 million |
| Arizona | 6 | 6,320 | 0 | $50.51 million |
| Michigan | 23 | 1,892 | 0 | $20.29 million |
| Other States | 45 | 41,440 | 0 | $56.23 million |
How Gladstone Land Corporation (LAND) Works
Business Model and Operations
Gladstone Land Corporation operates as a real estate investment trust (REIT) focused on acquiring and leasing farmland across the United States. The company primarily engages in leasing its agricultural properties to farmers under long-term, triple-net leases. This structure allows tenants to be responsible for property-related expenses, including property taxes, insurance, and maintenance, thereby providing the company with stable rental income.
Financial Performance Overview
For the three months ended September 30, 2024, Gladstone Land reported total operating revenues of $22.57 million, a decrease of 4.1% compared to $23.53 million for the same period in 2023. The decline in revenues was attributed to a reduction in fixed lease payments.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Operating Revenues | $22,571,000 | $23,534,000 | ($963,000) | (4.1%) |
| Operating Income | $6,872,000 | $9,398,000 | ($2,526,000) | (26.9%) |
| Net Income | $6,000 | $3,141,000 | ($3,135,000) | (99.8%) |
Lease Revenues
Lease revenues for the nine months ended September 30, 2024, totaled $63.67 million, down from $65.95 million in 2023. The company reported fixed lease payments of $58.58 million and variable lease payments of $4.63 million for the nine-month period.
| Lease Revenue Component | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Fixed Lease Payments | $58,578,000 | $63,180,000 | ($4,602,000) | (7.3%) |
| Variable Lease Payments | $4,625,000 | $2,580,000 | $2,045,000 | 79.3% | Total Lease Revenues | $63,667,000 | $65,946,000 | ($2,279,000) | (3.5%) |
Acquisitions and Dispositions
No new farms were acquired during the nine months ended September 30, 2024. However, on January 11, 2024, the company completed the sale of a 3,748-acre farm in Martin County, Florida, for approximately $65.7 million, resulting in a net gain of approximately $10.4 million.
Debt and Liquidity
As of September 30, 2024, Gladstone Land's total borrowings amounted to approximately $540.9 million, with a weighted-average interest rate of 3.83%. The company maintains a credit facility with MetLife, which provides $75 million in revolving credit and $175 million in term notes. The outstanding amount under this facility is approximately $36.9 million.
| Debt Metrics | Amount |
|---|---|
| Total Borrowings | $540,900,000 |
| Weighted-Average Interest Rate | 3.83% |
| Outstanding under MetLife Facility | $36,900,000 |
Cash Flow Activities
The net change in cash from operating activities for the nine months ended September 30, 2024, was $17.97 million, a decrease from $22.66 million in 2023. Investing activities showed significant inflows due to the sale of farmland, while financing activities reflected a net cash outflow of $83.36 million due to preferred stock repurchases and debt repayments.
| Cash Flow Activity | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Activities | $17,966,000 | $22,657,000 | ($4,691,000) | (20.7%) |
| Investing Activities | $60,039,000 | ($1,086,000) | $61,125,000 | (5,628.5%) |
| Financing Activities | ($83,363,000) | ($57,632,000) | ($25,731,000) | 44.6% |
Impact of Natural Disasters
In late 2024, Hurricanes Helene and Milton impacted certain farms, resulting in property and casualty losses, primarily due to damage to permanent plantings. The losses recorded during this period were approximately $275,000.
Market Position and NAV
The estimated net asset value (NAV) per common share as of September 30, 2024, was calculated at $15.57, reflecting a decline from the prior quarter. The closing stock price on the same date was $13.90 per share, indicating a market discount to NAV.
| Metric | Value |
|---|---|
| Estimated NAV per Common Share | $15.57 |
| Closing Stock Price | $13.90 |
How Gladstone Land Corporation (LAND) Makes Money
Revenue Streams
Gladstone Land Corporation generates revenue primarily through lease payments from agricultural properties. The company's revenue is categorized into:
- Fixed Lease Payments: These are the regular payments received from tenants based on lease agreements.
- Variable Lease Payments: This includes participation rents based on crop production and tenant reimbursements for property operating expenses.
Financial Performance Overview
As of September 30, 2024, the financial performance of Gladstone Land Corporation exhibits the following:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Operating Revenues | $22,571,000 | $23,534,000 | $(963,000) | (4.1)% |
| Fixed Lease Payments | $18,913,000 | $21,102,000 | $(2,189,000) | (10.4)% |
| Variable Lease Payments | $3,512,000 | $2,385,000 | $1,127,000 | 47.3% |
| Total Operating Expenses | $15,699,000 | $14,136,000 | $1,563,000 | 11.1% |
| Operating Income | $6,872,000 | $9,398,000 | $(2,526,000) | (26.9)% |
Lease Revenue Analysis
Lease revenue for the nine months ended September 30, 2024, compared to the previous year shows:
| Lease Revenue Type | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Fixed Lease Payments | $58,578,000 | $63,180,000 | $(4,602,000) | (7.3)% |
| Variable Lease Payments | $4,625,000 | $2,580,000 | $2,045,000 | 79.3% |
| Total Lease Revenues | $63,667,000 | $65,946,000 | $(2,279,000) | (3.5)% |
Property Sales and Acquisitions
In January 2024, Gladstone Land Corporation sold a 3,748-acre farm in Martin County, Florida, for approximately $65.7 million, resulting in a net gain of approximately $10.4 million. There were no new acquisitions during the three or nine months ended September 30, 2024.
Operating Expenses Overview
Operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | Amount ($) |
|---|---|
| Depreciation and Amortization | $26,407,000 |
| Property Operating Expenses | $3,476,000 |
| Base Management and Incentive Fees | $6,303,000 |
| Administrative Fees | $1,839,000 |
Debt and Financing Activities
As of September 30, 2024, Gladstone Land Corporation had a total debt of approximately $540.9 million. The weighted-average interest rate on borrowings was approximately 3.83%.
The company has a credit facility with MetLife providing for $75 million of revolving equity lines of credit and $175 million of term notes. As of September 30, 2024, $200,000 was outstanding under the lines of credit and $36.9 million on the term notes.
Net Income and Loss Analysis
For the nine months ending September 30, 2024, the net income was $12,750,000, which was consistent with the prior year at $12,746,000. However, net loss attributable to common stockholders was $(5,787,000) compared to $(2,964,000) in the previous year, indicating a significant increase in losses.
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Resources:
- Gladstone Land Corporation (LAND) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gladstone Land Corporation (LAND)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gladstone Land Corporation (LAND)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.