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Mar 31, 2024
Gladstone Land Q1 2024 Earnings Report
Gladstone Land reported first quarter 2024 results, with net income increasing significantly due to the sale of a farm, while AFFO decreased slightly due to lower lease revenues.
Key Takeaways
Gladstone Land reported a net income of $13.6 million for Q1 2024, a significant increase compared to $1.8 million in the prior-year quarter, primarily driven by the sale of a farm in Florida. However, AFFO decreased to $5.1 million, or $0.14 per share, from $5.9 million, or $0.17 per share, in the prior-year quarter, due to decreased cash lease revenues.
Net income for the quarter was approximately $13.6 million, compared to approximately $1.8 million in the prior-year quarter.
Net income to common stockholders was approximately $7.4 million, or $0.21 per share, compared to a net loss of approximately $4.3 million, or $0.12 per share, in the prior-year quarter.
AFFO for the quarter was approximately $5.1 million, or $0.14 per share, compared to approximately $5.9 million, or $0.17 per share, in the prior-year quarter.
NAV per share increased by $1.38 from the prior-year quarter to $18.50 at March 31, 2024.
Forward Guidance
The company is working through issues with a few tenants and aims to resolve vacant or direct-operated properties by the end of the year. The balance sheet remains strong with nearly 100% of borrowings at fixed rates, but high borrowing costs impact the ability to purchase new farms. Focus is on securing additional water rights in California.
Positive Outlook
- Balance sheet remains strong with nearly 100% of borrowings at fixed rates.
- Focusing efforts on securing additional water rights for farms in California.
- Taking advantage of surplus water supplies and storing water for future use.
- Working to resolve issues with vacant or direct-operated properties.
- Aiming to resolve these situations by the end of the year.
Challenges Ahead
- Results were slightly down from last year due to lost revenue from a large farm sale.
- High borrowing costs continue to impact the ability to purchase new farms and lease them at high enough rates.
- Currently have five properties that are either vacant or being direct-operated.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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