Download PDF

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.

Show Full description

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's Earnings Report: A Mixed Bag

Gladstone Land Corporation reported a net loss of $1.8 million for the fourth quarter and a net loss of $10.5 million for the year. However, Adjusted FFO for the fourth quarter was $14.4 million or $0.38 per share, compared to $3.4 million or $0.09 per share in the same quarter last year. The actual EPS came out at -$0.37799, missing estimates at $0.1675. Revenue growth is expected to be -2.9% next year.

Publication Date: Mar -06

📋 Highlights
  • Farm Sales Proceeds & Gains:: Sold 6 farms for $95M, recognizing $21M in aggregate gains during Q4.
  • Modified Lease Structure:: Renewed modified leases on 5 top-performing farms, shifting to revenue-sharing models to reduce tenant fixed costs.
  • Adjusted FFO Growth:: Q4 Adjusted FFO rose to $14.4M ($0.38/share), up from $3.4M ($0.09/share) in the prior-year quarter.
  • Pistachio Bonus Expectation:: Anticipates a $3M increase in 2026 revenue from higher pistachio prices due to supply shortages and demand.
  • Strong Capital Position:: Holds $85M in immediately available capital and $185M in unpledged properties, with 98% of debt at fixed rates (3.39% avg rate).

Operational Highlights

The company sold 6 farms during the fourth quarter, totaling $95 million in proceeds, and recognized an aggregate gain of $21 million. The company owns 144 farms, covering nearly 99,000 acres, with water assets in California. The sales were driven by the company's decision to exit non-core farms and focus on its core business. As Bill Reiman, Senior Vice President of Farming Operations, discussed, the company's farming operations exceeded yield objectives for the 2025 harvest.

Leasing and Farming Operations

The company has a modified structure on some farms, where it takes a larger percentage of gross crop sales instead of fixed rent payments. This approach has allowed the company to adapt to market conditions and reduce fixed costs for growers. The company has also renewed leases on 5 farms and is in discussions with existing tenants and prospective new tenants for 5 leases scheduled to expire over the next 6 months.

Financial Position and Capital Management

The company is in a strong capital position with $85 million in immediately available capital and over $185 million of unpledged properties that can be used as additional collateral. About 98% of its borrowings are at fixed rates with a weighted average interest rate of 3.39% locked in for another 2.7 years. The common distributions remain attractive, with a declared monthly dividend of $0.0467 per share for the first quarter of 2026, representing a 4.9% annualized yield.

Valuation and Outlook

With a P/E Ratio of 31.87 and a P/B Ratio of 0.64, the stock appears to be fairly valued. The Dividend Yield is 4.75%, which is attractive for income investors. However, the expected revenue growth of -2.9% next year may put pressure on the stock's performance. The company's efforts to reposition its farms and acquire water holdings at favorable prices are positive steps, but the high cost of capital may limit its acquisition activity.

3. NewsRoom

Card image cap

Gladstone Land Corporation (LAND) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

Card image cap

Gladstone Land (LANDP) Expected to Announce Quarterly Earnings on Tuesday

Feb -22

Source: defenseworld.net

Card image cap

Sell Alert: 3 REITs Facing Likely Dividend Cuts

Jan -22

Source: seekingalpha.com

Card image cap

3 Key Stocks For Early 2026

Jan -06

Source: seekingalpha.com

Card image cap

3 Of My Favorite Dividend REITs That Pay You Every Month

Jan -06

Source: seekingalpha.com

Card image cap

Yields Up To 8%: 3 REITs To Buy For 2026

Dec -18

Source: seekingalpha.com

Card image cap

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

Dec -03

Source: defenseworld.net

Card image cap

Gladstone Land Corporation (LAND) Q3 2025 Earnings Call Transcript

Nov -06

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
Chicago Atlantic

A-Score: 7.5/10

Value: 6.8

Growth: 9.1

Quality: 8.4

Yield: 10.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Farmland Partners

A-Score: 6.7/10

Value: 5.8

Growth: 4.9

Quality: 8.9

Yield: 9.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Gladstone Land

A-Score: 6.4/10

Value: 4.0

Growth: 5.4

Quality: 5.2

Yield: 9.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
AFC Gamma

A-Score: 5.6/10

Value: 8.6

Growth: 7.4

Quality: 4.8

Yield: 10.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Uniti

A-Score: 4.1/10

Value: 5.6

Growth: 3.8

Quality: 5.3

Yield: 5.0

Momentum: 2.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
CoreCivic

A-Score: 3.9/10

Value: 6.3

Growth: 3.6

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.75$

Current Price

19.74$

Potential

-20.20%

Expected Cash-Flows