Loading...
•
Sep 30, 2020
Gladstone Land Q3 2020 Earnings Report
Announced financial results for the third quarter ended September 30, 2020.
Key Takeaways
Gladstone Land Corporation reported net income of approximately $1.6 million and AFFO of approximately $3.1 million for the quarter. Total lease revenues increased by approximately $1.4 million, primarily driven by participation rents. NAV per share increased by $0.91 from the prior quarter to $11.97.
Acquired eight new farms, consisting of 3,473 total acres across three different states for approximately $39.2 million.
Executed four new lease agreements on certain farms that are expected to result in an aggregate increase in annual net operating income of approximately $181,000, or 11.3%, over that of the prior leases.
Secured a loan of approximately $4.5 million from a new lender at an expected effective interest rate of 3.24%, which is fixed for the next 10 years.
Increased the monthly distribution run rate on common stock by 0.22% and paid total cash distributions of $0.13440 per share of common stock for July, August, and September 2020.
Gladstone Land
Gladstone Land
Gladstone Land Revenue by Segment
Revenue by Segment
Participation Rents Revenue
CapyFin.com Forward Guidance
The Company has acquired approximately $75 million of new farms over the past two months, and the team has a robust list of farms they are seeking to acquire over the next several months.
Positive Outlook
- Company has acquired approximately $75 million of new farms over the past two months.
- Team has a robust list of farms they are seeking to acquire over the next several months.
- Recently surpassed $1 billion in total farmland value.
- Success with lease renewals.
- Increased net rental rates on these renewals indicate the strong demand for, and continued appreciation in value of, the Company’s farms.
Challenges Ahead
- One farmer owes about $43,000.
- Tenant on the Company's farms sell their products to grocery stores.
- Impact on the Company's farms and farmers as a result of COVID-19 continues to be minimal.
- Most tenants on the Company's farms sell their products to grocery stores, with very little of their sales going to restaurants and other segments of the food service industry.
- Cash flows from operations for the current quarter decreased, primarily due to the timing of when certain rental payments are scheduled to be paid, as well as increases in the amounts of fees paid to our Adviser and interest payments made.