In its first quarter financial results, LAND reported a revenue of $16.8 million, which fell short of the anticipated $17.3 million. Despite this revenue miss, the company saw an increase in net income, reaching approximately $15.1 million. This marks an improvement from the $13.6 million recorded in the same period last year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Gladstone Land Corp (LAND, Financial) is $12.75 with a high estimate of $14.50 and a low estimate of $12.00. The average target implies an upside of 32.12% from the current price of $9.65. More detailed estimate data can be found on the Gladstone Land Corp (LAND) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Gladstone Land Corp's (LAND, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gladstone Land Corp (LAND, Financial) in one year is $13.46, suggesting a upside of 39.48% from the current price of $9.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gladstone Land Corp (LAND) Summary page.
LAND Key Business Developments
Release Date: February 20, 2025
- Total Assets: Approximately $1.3 billion in land and water assets.
- Adjusted FFO (Funds From Operations): $3.4 million for Q4 2024, down from $5.4 million in Q4 2023.
- Adjusted FFO per Share: $0.09 for Q4 2024, compared to $0.15 in Q4 2023.
- Annual Adjusted FFO: $16.7 million for 2024, down from $20.3 million in 2023.
- Annual Dividends Declared per Share: $0.56 in 2024, up from $0.55 in 2023.
- Net Asset Value per Share: $14.91 as of December 31, 2024, down from $15.57 as of September 30, 2024.
- Participation Rents: $4.8 million in Q4 2024, up from $3.3 million in Q4 2023.
- Fixed-Base Cash Rents: Decreased by $4.9 million quarterly and $9.7 million annually.
- Property Sales: Sold 11 blueberry farms in Michigan and 5 farms in Florida, with a 40% premium on the Florida farms.
- Debt Repayment: Paid off $23.5 million of loans during the quarter.
- Liquidity: Access to over $195 million of capital, including $50 million in cash.
- Dividend Yield: 4.9% based on a stock price of $11.52.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gladstone Land Corp (LAND, Financial) owns a substantial portfolio of farmland, totaling about 103,000 acres across 150 farms, valued at approximately $1.3 billion.
- The company has diversified its assets across 15 states and 29 growing regions, with a focus on fruits, vegetables, and nuts.
- Recent farmland sales in Florida and the Midwest resulted in significant gains, including a 40% premium on Florida farms.
- Gladstone Land Corp (LAND) has adjusted lease structures to increase participation rent, potentially leading to higher future revenues.
- The company maintains a strong liquidity position with over $195 million in available capital and a majority of borrowings at fixed rates, protecting against interest rate fluctuations.
Negative Points
- The company faces high costs of capital, limiting new investment opportunities and acquisition activities.
- Recent changes in lease structures and tenant issues have led to a decrease in fixed-base cash rents and net operating income.
- Certain farms have been sold or are vacant, resulting in lost revenues and increased costs.
- The company has experienced a decrease in net asset value per share, from $15.57 to $14.91, due to revaluations of certain farms.
- Gladstone Land Corp (LAND) has decided to stop publishing net asset value calculations quarterly due to high costs and reliability issues with external appraisals.
