Loading...
•
Jun 30, 2024
Gladstone Land Q2 2024 Earnings Report
Reported a net loss for the quarter and AFFO slightly ahead of the prior year, primarily due to additional participation rents offsetting lost revenues and tenancy issues.
Key Takeaways
Gladstone Land reported a net loss of $823,000 for the second quarter of 2024, compared to a net income of $7.9 million in the prior-year quarter. However, AFFO increased slightly to $3.7 million, or $0.103 per share, compared to $3.6 million, or $0.102 per share, in the prior-year quarter. The company experienced a decrease in fixed base cash rents offset by additional participation rents. They have six properties that are either vacant or being direct-operated.
Net loss for the quarter was $823,000, compared to net income of $7.9 million in the prior-year quarter.
Net loss to common stockholders was $6.7 million, or $0.19 per share, compared to net income of $1.7 million, or $0.05 per share, in the prior-year quarter.
AFFO was $3.7 million, or $0.103 per share, compared to $3.6 million, or $0.102 per share, in the prior-year quarter.
NAV per share decreased by $1.56 from the prior-year quarter to $17.59 at June 30, 2024.
Gladstone Land
Gladstone Land
Forward Guidance
Gladstone Land anticipates resolving tenancy issues and potentially selling farms if leasing isn't viable. They also plan to continue acquiring water assets and maintain a strong balance sheet.
Positive Outlook
- Continue to acquire more water at below-market prices
- Provide additional water security to their farms and those growers who lease them
- Balance sheet remains strong, with nearly 100% of borrowings at fixed rates
- Continue to maintain high levels of liquidity
- Continue to maintain overall access to capital
Challenges Ahead
- Values of almond and pistachio farms have been negatively impacted by lower crop prices and higher input costs
- Have six properties (encompassing 13 of their 168 farms) that are either vacant or being direct-operated via agreements with third-party management groups
- Lost revenues from a large farm in Florida that was sold in the first quarter
- Continuing tenancy issues on certain of farms
- May include listing certain farms at auction if not leased or sold beforehand