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1. Company Snapshot

1.a. Company Description

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers.The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 169 farms, comprised of approximately 116,000 acres in 15 different states and over 45,000 acre-feet of banked water in California, valued at a total of approximately $1.6 billion.Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually.


The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually.Approximately 40% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 10% of its permanent crop acreage falls into this category.The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers.


Gladstone Land pays monthly distributions to its stockholders and has paid 129 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013.The Company has increased its common distributions 32 times over the prior 35 quarters, and the current per-share distribution on its common stock is $0.0464 per month, or $0.5568 per year.

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1.b. Last Insights on LANDP

Negative drivers behind Gladstone Land Corporation's recent stock performance include: * Declining third-quarter revenue and cash flows, leading to a drop in Net Asset Value (NAV) per share from $20.33 to $15.57. * Lower farm valuations and higher long-term borrowing costs contributing to the decline in NAV. * Threat of mass deportations potentially impacting agricultural REITs like Gladstone Land, affecting labor supply and lease structures. * Industry-wide concerns about sustainability due to post-election optimism inflating valuations in midstream energy, regional banks, investment banks, and insurance companies. * Industrial REITs facing weakened fundamentals, although still having growth potential. * Manufactured housing REITs deserving a premium due to affordability and constrained supply, but offering cheaper entry points.

1.c. Company Highlights

2. Gladstone Land Corporation: A Resilient Farmland Owner

Gladstone Land Corporation reported a net loss to common shareholders of $3.9 million, with adjusted Funds From Operations (FFO) of $1.4 million. Revenue from the pistachio harvest was $16.9 million, significantly higher than what they would have received from leases a few years ago. Earnings per share (EPS) came in at -$0.1, missing estimates of -$0.07. The year-over-year decline in Adjusted Funds From Operations (AFFO) was driven by recent changes to lease structures, loss of revenue from farm sales, and ongoing tenancy issues.

Publication Date: Nov -16

📋 Highlights
  • Farm Sales & Gains: Sold two Florida farms for $21.5M, generating $6M gain, with potential for further sales in next quarters.
  • Revenue from Crops: Pistachio harvest revenue reached $16.9M, 2–3x higher than prior lease-based income.
  • Liquidity Position: $25M cash reserves, $75M undrawn line of credit, and $170M immediately available capital for flexibility.
  • Debt Management: 99% fixed-rate debt at 3.39% average rate; plans to redeem Series D loan by 2026, saving 2% in interest costs.
  • Lease Modifications: Adjusted West Coast lease structures to reduce tenant fixed costs and boost participation in upside revenue potential.

Operational Highlights

The company's farmland holdings remain robust, with approximately 100,000 acres across 15 states, and 148 farms leased to over 80 different tenant farmers. They have been taking a disciplined approach to new investments due to high interest rates, focusing on existing farms. Gladstone discussed modifications to lease structures on certain permanent crop farms in the West, adjusting to help growers reduce fixed costs and participate in upside potential. As Bill Reiman, COO, noted, "2025 pistachio, almond, and grape crops are nearly complete, with favorable conditions and strong yields."

Financial Flexibility

The company has demonstrated financial flexibility, with over $170 million of immediately available capital and nearly $150 million of unpledged properties that could be used as additional collateral if needed. They have over 99% of their borrowings at fixed rates with a weighted average interest rate of 3.39% locked in for a minimum of 3 years. The company's liquidity position is further bolstered by $25 million in cash reserves and a fully undrawn $75 million line of credit.

Valuation and Outlook

With a Price-to-Book Ratio of 0.52 and a Dividend Yield of 5.84%, Gladstone Land Corporation appears to be reasonably valued. Analysts estimate next year's revenue growth at 4.9%. The company's plans to redeem the Series D loan by January 31, 2026, using a combination of common stock and line of credit, will save on interest expenses. As the market trend continues to improve, Gladstone is well-positioned to capitalize on opportunities to sell assets and potentially acquire new farms.

Growth Prospects

The company's focus on prime farmland for growing berries and vegetables creates underlying value in their farms. Although prices for certain permanent crops have been depressed, signs of improvement are emerging, and the value of their farmland is expected to increase, especially for healthy foods like fresh nuts, fruits, and vegetables. With a strong operational and financial foundation, Gladstone Land Corporation is poised for growth.

3. NewsRoom

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Gladstone Land (NASDAQ:LANDP) Stock Price Up 0.3% – Here’s Why

Dec -03

Source: defenseworld.net

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Gladstone Land Corporation (LAND) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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8% Yields I'd Bet My Retirement On Right Now

Oct -28

Source: seekingalpha.com

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3 REITs To Sell Before They Cut The Dividend

Sep -30

Source: seekingalpha.com

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3 REITs To Buy The Dip In

Sep -11

Source: seekingalpha.com

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Important Warning To REIT Investors

Sep -01

Source: seekingalpha.com

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Avoid These REIT Dividend Disasters Before It's Too Late

Aug -13

Source: seekingalpha.com

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Turbocharge Your Retirement With Income Machines Paying Fat Dividends

Jul -21

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.81%)

6. Segments

Fixed Lease Payments

Expected Growth: 10.2%

Increasing demand for sustainable farming practices, growing need for food security, and rising popularity of organic produce drive growth in fixed lease payments from Gladstone Land Corporation.

Variable Lease Payments - Participation Rents

Expected Growth: 5.2%

Growth driven by increasing demand for sustainable farming practices, rising crop prices, and expansion of farmland under Gladstone Land's management, leading to higher variable lease payments.

Variable Lease Payments - Tenant Reimbursements

Expected Growth: 4.5%

Growth driven by increasing demand for farmland, rising crop prices, and expanding tenant base, leading to higher reimbursements for operating expenses, taxes, and insurance.

7. Detailed Products

Farms

Gladstone Land Corporation owns and operates farms that grow a variety of crops, including fruits, nuts, and vegetables.

Ranches

The company owns and operates ranches that raise livestock, such as cattle and poultry, for meat production.

Orchards

Gladstone Land Corporation owns and operates orchards that grow a variety of fruits and nuts, including apples, berries, and almonds.

Vineyards

The company owns and operates vineyards that grow grapes for wine production.

Farm-related Services

Gladstone Land Corporation provides farm-related services, including farm management, crop consulting, and equipment leasing.

8. Gladstone Land Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Gladstone Land Corporation is moderate due to the availability of alternative investment options in the agricultural sector.

Bargaining Power Of Customers

The bargaining power of customers is low for Gladstone Land Corporation as the company's diversified portfolio and long-term lease agreements reduce the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Gladstone Land Corporation as the company relies on a few large suppliers for its farming operations, but has some flexibility to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low for Gladstone Land Corporation due to the high barriers to entry in the agricultural sector, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Gladstone Land Corporation due to the competitive nature of the agricultural sector, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.38%
Debt Cost 3.95%
Equity Weight 55.62%
Equity Cost 8.95%
WACC 6.73%
Leverage 79.78%

11. Quality Control: Gladstone Land Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Farmland Partners

A-Score: 7.0/10

Value: 5.6

Growth: 4.9

Quality: 8.8

Yield: 9.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Chicago Atlantic

A-Score: 6.7/10

Value: 6.1

Growth: 9.1

Quality: 4.3

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Gladstone Land

A-Score: 6.1/10

Value: 3.8

Growth: 5.6

Quality: 5.1

Yield: 9.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
AFC Gamma

A-Score: 5.7/10

Value: 8.3

Growth: 7.4

Quality: 5.4

Yield: 10.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
CoreCivic

A-Score: 4.9/10

Value: 6.1

Growth: 3.7

Quality: 4.3

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Uniti

A-Score: 4.1/10

Value: 5.5

Growth: 4.6

Quality: 5.3

Yield: 5.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.0$

Current Price

19$

Potential

-0.00%

Expected Cash-Flows