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Sep 30, 2023
Gladstone Land Q3 2023 Earnings Report
Gladstone Land reported financial results for the third quarter ended September 30, 2023.
Key Takeaways
Gladstone Land's net income for the quarter was approximately $3.1 million, compared to $1.8 million in the prior-year quarter. AFFO for the quarter was approximately $5.6 million, or $0.15 per share, compared to approximately $7.2 million, or $0.21 per share, in the prior-year quarter.
Executed seven new or amended lease agreements on farms in two different states, expected to result in an aggregate increase in annual net operating income of approximately $210,000, or 9.8%, over the prior leases.
Repaid approximately $4.2 million of maturing loans.
Increased the distribution run rate on common stock by 0.43% and paid monthly cash distributions totaling $0.1386 per share of common stock during the quarter.
Estimated NAV per share increased by $3.77 from the prior-year quarter to $20.33 at September 30, 2023.
Gladstone Land
Gladstone Land
Forward Guidance
The company is working through issues with a few tenants and is in discussions to lease vacant farms. The company is also focusing on securing additional water rights for farms in California.
Positive Outlook
- Balance sheet remains strong with nearly 100% of borrowings at fixed rates.
- Significantly limiting the impact of increased interest rates.
- Focusing efforts on securing additional water rights for our farms in California.
- Taking advantage of surplus water supplies and storing water for future use on our farms.
- Overall value of our farmland portfolio has continued to increase.
Challenges Ahead
- 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.
- Currently have four properties (encompassing 12 total farms) that we are operating with the help of a third-party management company.
- Have one property (which consists of three farms) that is vacant.
- High borrowing costs continue to impact our ability to purchase new farms.
- High borrowing costs have resulted in reduced values for certain types of real estate.