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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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