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Jun 30, 2023
Gladstone Land Q2 2023 Earnings Report
Reported financial results for the second quarter ended June 30, 2023.
Key Takeaways
Gladstone Land reported a net income of approximately $7.9 million for the quarter, compared to approximately $613,000 in the prior-year quarter. AFFO for the quarter was approximately $3.8 million, or $0.11 per share, compared to approximately $4.5 million, or $0.13 per share, in the prior-year quarter. Total cash lease revenues increased by approximately $491,000, or 2.5%, from the prior-year quarter.
Sold a 138-acre parcel of unfarmed land in Florida for $9.6 million, resulting in a net gain of approximately $6.4 million.
Executed 12 new or amended lease agreements on farms in five different states that are expected to result in an aggregate decrease in annual net operating income of approximately $503,000 from the prior leases.
Increased the distribution run rate on common stock by 0.22% and paid monthly cash distributions totaling $0.1380 per share of common stock during the quarter ended June 30, 2023.
Estimated NAV per share increased by $3.55 from the prior-year quarter to $19.15 at June 30, 2023.
Gladstone Land
Gladstone Land
Forward Guidance
Results for the quarter were largely as expected but remained slightly down from last year as we continue to work through issues with a few of our tenants, which we think we will have resolved within the next few months. Our balance sheet remains strong, with nearly 100% of our borrowings at fixed rates, significantly limiting the impact of increased interest rates. However, high interest rates continue to impact our ability to buy new farms.
Positive Outlook
- Balance sheet remains strong
- Nearly 100% of borrowings at fixed rates
- Significantly limiting the impact of increased interest rates
Challenges Ahead
- Results for the quarter remained slightly down from last year
- Continue to work through issues with a few of our tenants
- High interest rates continue to impact our ability to buy new farms
- Costs to finance new acquisitions have continued to increase
- Farm owners have not yet reduced the price at which they are willing to sell their farms