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Gladstone Land (LAND)
NASDAQ:LAND
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Gladstone Land
(NASDAQ:LAND)
58Neutral
Positive Factors
Dividend Distribution
The company increased the distribution run rate on their common stock and paid a monthly cash dividend, marking the 37th dividend increase over the past 40 quarters.
Lease Transactions
The company executed 21 amended or new lease agreements during the quarter, with some expected to generate an aggregate increase in NOI of approximately $309K, or 11%, over that of the prior leases.
Negative Factors
Farm Performance
21 underperforming farms have impacted revenue, and though some are expected to be resolved or sold, soft prices have negatively affected pistachio and almond farms.
Financial Performance
The company reported AFFO numbers with a 38.3% decrease year-over-year, which was in-line with consensus estimates but lower than some estimates.
Net Asset Value
Net asset value (NAV) was down 4.2% to $14.91 mainly due to lower valuations of farms.
Gladstone Land (LAND) vs. S&P 500 (SPY)
Market Cap
$391.52M
Dividend Yield5.15%
Average Volume (3M)433.06K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth-5.73%
EPS Growth-5.33%
CountryUS
Employees72
SectorReal Estate
Sector Strength76
IndustryREITs
Share Statistics
EPS (TTM)-0.29
Shares Outstanding36,184,658
10 Day Avg. Volume354,628
30 Day Avg. Volume433,062
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.61
Price to Cash Flow (P/CF)8.50
P/FCF Ratio15.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.67Price Target Upside17.21% Upside
Rating ConsensusHold
Number of Analyst Covering4
Gladstone Land Business Overview & Revenue Model
Company DescriptionGladstone Land Corp. is an agricultural real estate investment trust, which engages in the business of owning and leasing farmland. It also includes farm-related facilities, such as cooling facilities, packinghouses, processing facilities, and various storage facilities. The company was founded by David Gladstone on June 14, 1997 and is headquartered in McLean, VA.
How the Company Makes MoneyGladstone Land makes money primarily through leasing its farmland properties to farmers and agricultural operators. The company earns rental income from long-term lease agreements, which provide a stable and predictable revenue stream. Additionally, Gladstone Land may benefit from property appreciation over time, allowing for potential capital gains upon the sale of farmland. The company also engages in strategic acquisitions and improvements of farmland properties to enhance their value and productivity. Significant partnerships with agricultural operators and a diversified portfolio of farmland across various regions and crops contribute to the company's earnings.
Gladstone Land Financial Statement Overview
Summary
Gladstone Land exhibits strengths in operational efficiency and cash flow management, with an increase in free cash flow. However, challenges include a decline in revenue and negative net income. The elimination of debt enhances financial stability.Income Statement
Gladstone Land shows a decreasing trend in revenue with a revenue decline of 6.23% from 2023 to 2024. The company's gross profit margin remains strong at 100% due to its revenue structure. However, the net profit margin is concerning due to a negative net income of $-10.46 million in 2024. EBIT margin is robust at 93.7% for 2024, although EBITDA margin is lower at 41.35%.65
Positive
Balance Sheet
The balance sheet reveals a strong equity position with stockholders' equity of $687.18 million against total assets of $1.31 billion, resulting in an equity ratio of 52.37%. There is a notable reduction in total debt to zero in 2024, leading to a healthier debt-to-equity ratio. Return on equity is negative due to the net loss.70
Positive
Cash Flow
Free cash flow has increased by 8.3% from 2023 to 2024, indicating better cash management. Operating cash flow covers net income well, despite the latter being negative, showcasing strong cash generation capabilities. Free cash flow to net income ratio is strong, compensating for profit shortfalls.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 84.76M | 90.40M | 89.24M | 75.32M | 57.03M | Gross Profit |
| 84.76M | 77.59M | 86.42M | 72.78M | 55.18M | EBIT |
| 79.43M | 70.58M | 34.27M | 30.87M | 27.69M | EBITDA |
| 70.29M | 70.64M | 69.73M | 58.17M | 44.34M | Net Income Common Stockholders |
| 13.29M | 14.56M | -21.02M | -20.55M | -15.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 18.27M | 18.57M | 61.14M | 16.71M | 9.22M | Total Assets |
| 1.31B | 1.39B | 1.46B | 1.35B | 1.07B | Total Debt |
| 527.52M | 574.11M | 626.50M | 667.98M | 624.06M | Net Debt |
| 509.25M | 555.54M | 565.36M | 651.27M | 614.84M | Total Liabilities |
| 625.01M | 667.71M | 725.89M | 762.48M | 683.50M | Stockholders Equity |
| 687.18M | 719.61M | 731.36M | 586.82M | 383.79M |
| Cash Flow | Free Cash Flow | |||
| 29.55M | 27.28M | 23.66M | 26.26M | 8.49M | Operating Cash Flow |
| 29.55M | 40.08M | 43.79M | 32.38M | 25.00M | Investing Cash Flow |
| 63.31M | -3.77M | -85.48M | -295.00M | -272.90M | Financing Cash Flow |
| -93.15M | -78.88M | 86.13M | 270.11M | 243.43M |
Gladstone Land Technical Analysis
Negative
10.81
Price Trends
10.99
Negative
11.43
Negative
12.47
Negative
Market Momentum
-0.05
Positive
43.45
Neutral
19.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAND, the sentiment is Negative. The current price of 10.81 is below the 20-day moving average (MA) of 11.35, below the 50-day MA of 10.99, and below the 200-day MA of 12.47, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAND.
Gladstone Land Risk Analysis
Gladstone Land disclosed 72 risk factors in its most recent earnings report. Gladstone Land reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Land Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.64B | 35.15 | 5.59% | 2.79% | 18.24% | 6.95% | |
73 Outperform | $513.84M | 10.82 | 11.91% | 2.20% | 1.32% | 108.94% | |
72 Outperform | $9.12B | 33.24 | 3.38% | 4.13% | 17.48% | 7.45% | |
69 Neutral | $334.87M | ― | -4.52% | 5.65% | 2.15% | -556.06% | |
61 Neutral | $4.81B | 18.83 | -3.82% | 10.85% | 6.22% | -19.50% | |
58 Neutral | $391.52M | ― | 1.89% | 5.15% | -5.73% | -5.33% | |
52 Neutral | $6.08B | ― | -2.73% | 4.12% | -0.25% | 72.06% |
* Real Estate Sector Average
Performance Comparison
LAND
Gladstone Land
10.81
-1.54
-12.47%
TRNO
Terreno Realty
66.51
5.78
9.52%
REXR
Rexford Industrial Realty
40.71
-8.60
-17.44%
FPI
Farmland
11.05
1.52
15.95%
BRT
BRT Apartments
18.21
2.88
18.79%
COLD
Americold Realty
22.14
-1.43
-6.07%
Gladstone Land Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -6.16% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful sales and increased participation rents, which were offset by decreased fixed base rents, declining operating income, and tenant issues affecting net asset value. The overall sentiment reflects a cautious outlook with a focus on restructuring lease agreements for future gains.Highlights
Increased Participation Rents
During the fourth quarter, participation rents increased to approximately $4.8 million from $3.3 million in the prior year quarter, and for the year, participation rents increased to $9.4 million from $5.9 million last year.
Successful Farmland Sales
The company sold five farms in Florida at a 40% premium over the purchase price after 6.5 years and two Midwest farms for a 9% gain over the purchase price.
Cash Reserves and Liquidity
The company has over $195 million in capital access, including $50 million in cash on hand, and nearly $150 million in unpledged properties.
Steady Row Crop Performance
Renewed 12 leases on annual row crops expected to result in a 14% increase in annual net operating income, contributing to a $556,000 increase.
Lowlights
Operating Income Decline
The adjusted funds from operations (AFFO) for 2024 was $16.7 million compared to $20.3 million in 2023, with AFFO per share decreasing from $0.57 in 2023 to $0.47 in 2024.
Decreased Fixed Base Cash Rents
Fixed base cash rents decreased by $4.9 million quarterly and $9.7 million annually, primarily due to tenant issues and structural changes to leases.
Blueberry Farms Sale Loss
Sold 11 blueberry farms in Michigan resulting in a small loss, with these farms negatively impacting net operating income by about $400,000 in 2024.
Net Asset Value Decline
The net asset value per common share decreased to $14.91 from $15.57 due to decreases in valuations of certain permanent crop farms.
Company Guidance
During the call, Gladstone Land Corporation provided guidance on various financial metrics and operational strategies for 2024. The company reported adjusted funds from operations (AFFO) of approximately $16.7 million for 2024, compared to $20.3 million in 2023, with a per-share AFFO of $0.47 versus $0.57 in the previous year. Dividends declared per share were $0.56 in 2024, slightly up from $0.55 in 2023. The company highlighted the impact of recent lease structure changes, noting a decrease in fixed base cash rents by $9.7 million annually, offset by a rise in participation rents to $9.4 million in 2024, up from $5.9 million in 2023. The net asset value per common share decreased to $14.91 as of December 31, down from $15.57 at the end of the third quarter, largely due to revaluations of certain permanent crop farms. The company also highlighted its cautious investment approach due to high capital costs and its strategy to adjust lease structures to include higher participation rent components.Gladstone Land Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Gladstone Land Announces COO Retirement and Leadership Changes
Neutral
Nov 15, 2024
Gladstone Land Corporation, a leading real estate investment trust specializing in farmland, announced the retirement of COO Terry Lee Brubaker, effective December 2, 2024. Known for his vital role in the company’s growth, Brubaker’s duties will be shared by Michael LiCalsi and a new Chief Investment Officer after a national search. The company, which owns 168 farms valued at $1.5 billion, continues to expand its organic and permanent crop acreage and has consistently increased monthly stockholder distributions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.