Gladstone Land Corp (LAND) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News
3 min read

In This Article:

  • Net Income: $6,000 for the third quarter.

  • Net Loss to Common Shareholders: $5.8 million or 16 per share.

  • Adjusted FFO: Approximately $4.5 million or 13 per share.

  • Dividends Declared per Common Share: 14 in both quarters.

  • Fixed Base Cash Rents: Decreased by about $2.6 million year over year.

  • Participation Rents: Increased by $1.1 million during the current quarter.

  • Impairment Charge: $2 million related to Michigan Blueberry farms.

  • Net Asset Value per Common Share: $15.57 as of September 30th, down from $17.59 at June 30th.

  • Liquidity: Over $160 million of liquidity, including about $20 million of cash on hand.

  • Debt Maturities: About $39 million coming due over the next 12 months.

  • Dividend Yield: 4.1% based on current stock price of $13.66 per share.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Gladstone Land Corp (NASDAQ:LAND) executed 21 new or amended leases, resulting in an aggregate increase of net operating income by $309,000 or 11% over prior leases.

  • The company has nearly 18 billion gallons of water assets, valued alongside their land at approximately $1.5 billion.

  • Gladstone Land Corp (NASDAQ:LAND) has a diversified portfolio with farms in 15 different states and 29 growing areas, providing stability and risk mitigation.

  • The company successfully raised $4.5 million from sales of common stock and $80,000 from Series E preferred stock, enhancing liquidity.

  • Gladstone Land Corp (NASDAQ:LAND) maintains over $160 million in liquidity, with 99.9% of borrowings at fixed rates, minimizing exposure to interest rate fluctuations.

Negative Points

  • Net income for the third quarter was only $6,000, with a net loss to common shareholders of $5.8 million or 16 per share.

  • The company experienced a decrease in net operating income by $638,000 due to tenant issues and vacant properties.

  • Gladstone Land Corp (NASDAQ:LAND) recorded an impairment charge of about $2 million related to Michigan Blueberry farms.

  • The company anticipates a $20 million swing from fixed base rents to participation rents over the next five quarters, impacting short-term cash flow.

  • NAV per common share decreased from $17.59 to $15.57, primarily due to declines in the value of permanent crop farms.

Q & A Highlights

Q: Can you provide the number of leases expiring in 2025 and how many of those are permanent crops? A: In 2025, we have 17 leases expiring, which account for about 20% of our revenue. Approximately 60% of these leases are for annual row crops, and 40% are for permanent crops. - Lewis Parrish, CFO

Recommended Stories