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Mar 31, 2023
Gladstone Land Q1 2023 Earnings Report
Reported financial results for the first quarter ended March 31, 2023.
Key Takeaways
Gladstone Land's first quarter 2023 results showed a net income of $1.8 million, AFFO of $6.0 million, and an increased NAV per share of $17.12. The company faced challenges with certain tenants but maintains a strong balance sheet with nearly 100% fixed-rate borrowings.
Net income for the quarter was approximately $1.8 million, compared to approximately $1.2 million in the prior-year quarter.
AFFO for the quarter was approximately $6.0 million, or $0.17 per share, compared to approximately $6.4 million, or $0.19 per share, in the prior-year quarter.
Total cash lease revenues increased by approximately $1.0 million, or 5.4%, from the prior-year quarter, primarily due to higher fixed base cash rents of approximately $850,000, or 4.4%.
Estimated NAV per share increased by $1.58 from the prior-year quarter to $17.12 at March 31, 2023.
Gladstone Land
Gladstone Land
Forward Guidance
Gladstone Land anticipates continued strong demand for food and crop pricing, expecting its portfolio to benefit from sustained high inflation, while working through tenant issues and remaining conservative with capital deployment.
Positive Outlook
- Balance sheet remains strong with nearly 100% of borrowings at fixed rates.
- The overall food segment, and more particularly, the food-at-home segment, both continue to outpace overall inflation.
- Demand for food and crop pricing to continue to stay strong.
- Current portfolio is poised to benefit from continued high inflation.
Challenges Ahead
- Results for the quarter were slightly down.
- Continue to work through issues with a few of our tenants.
- Acquisition activity continues to be slow.
- Continue to act conservatively with our capital.