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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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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