Latest news with #DavidGladstone
Miami Herald
7 days ago
- Business
- Miami Herald
Gladstone Land Announces Preferred Stock Repurchase Authorization
MCLEAN, VA / ACCESS Newswire / July 11, 2025 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") announced that its board of directors has authorized a share repurchase program for up to $20,000,000 of the Company's 6.00% Series B Cumulative Redeemable Preferred Stock (Nasdaq: LANDO) and up to $35,000,000 of the Company's 6.00% Series C Cumulative Redeemable Preferred Stock (Nasdaq: LANDP) (together, the "Preferred Stock Repurchase Program"). The repurchases are intended to be implemented through open market transactions on U.S. exchanges or in privately negotiated transactions, in accordance with applicable securities laws, and any market purchases will be made during applicable trading window periods or pursuant to any applicable Rule 10b5-1 trading plans. The timing, prices, and sizes of repurchases will depend upon prevailing market prices, general economic and market conditions and other considerations. The board's authorization of the Preferred Stock Repurchase Program expires July 10, 2026, and the Preferred Stock Repurchase Program may be suspended or discontinued at any time and does not obligate the Company to acquire any particular amount of preferred stock. "After a thorough analysis and in consultation with our board of directors, we are announcing another share repurchase authorization as part of a capital allocation strategy that we believe is in the best interest of our shareholders and our business. We believe that the current market conditions provide an attractive buying opportunity for our preferred stock and that using capital to repurchase our preferred shares at appropriate prices represents a favorable strategic use of capital," said David Gladstone, President of the Company. About Gladstone Land Corporation: Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. The Company currently owns 150 farms, comprised of approximately 103,000 acres in 15 different states and over 55,000 acre-feet of water assets in California. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, blueberries, figs, olives, pistachios, and wine grapes, which are generally planted every 20-plus years and harvested annually. Over 30% of the Company's fresh produce acreage is either organic or in transition to become organic, and nearly 20% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 149 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.0467 per month, or $0.5604 per year. Additional information, including detailed information about each of the Company's farms, can be found at Owners or brokers who have farmland for sale in the U.S. should contact: Western U.S. - Bill Reiman at (805) 263-4778 or Bill.R@ and Midwest U.S. - Joey Van Wingerden at (703) 287-5914 or Joe.V@ orSoutheastern U.S.- Brett Smith at (703) 287-5837 or Brett.S@ Lenders who are interested in providing Gladstone Land with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Company's ability to procure financing for investments, downturns in the current economic environment, the performance of its tenants, the impact of competition on its efforts to renew existing leases or re-lease real property, and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" within the Company's Form 10-K for the fiscal year ended December 31, 2024, as filed with the SEC on February 19, 2025, and certain other documents filed with the SEC from time to time. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. For further information: Gladstone Land, (703) 287-5893 SOURCE: Gladstone Land Corporation
Yahoo
14-05-2025
- Business
- Yahoo
Q1 2025 Gladstone Land Corp Earnings Call
David Gladstone; Chairman of the Board, President, Chief Executive Officer; Gladstone Land Corp Michael LiCalsi; General Counsel and Secretary; Gladstone Land Corp Lewis Parrish; Chief Financial Officer, Assistant Treasurer; Gladstone Land Corp Gaurav Mehta; Analyst; Alliance Global Partners Robert Stevenson; Analyst; Janney Montgomery Scott John Massocca; Analyst; B Riley Securities Operator Greetings and welcome to the to the Gladstone Land Corporation first-quarter earnings call. (Operator instructions) As a reminder, this conference is being is now my pleasure to introduce David Gladstone, Chief Executive Officer and President. Please go ahead. David Gladstone Okay, Paul, thank you for that nice introduction, and this is David Gladstone, and welcome to the quarterly conference call for Gladstone Land. Thank you all for calling in today. We appreciate the time it takes to listen and talk to you and thank you for listening to our I begin, we'll start with Michael LiCalsi. He's our General Counsel. Michael? Michael LiCalsi Thanks, David. Good morning, everybody. Today's report may include forward-looking statements in the Securities Act of 1933, the Securities Exchange Act of 1934, including those regarding our future performance, and these forward-looking statements involve certain risks and uncertainties that are based on our current plans, which we believe to be factors may cause the actual results to be materially different from the future results expressed or implied by these forward-looking statements, including the risk factors in our form 10-K and 10-Q of the documents we filed at the SEC.(inaudible) them on our website specifically the investors page on the SEC's website, that we undertake no obligation publicly update or revise. Any of these statements were the result of new information, future events, or otherwise except as required by today we will discuss FFO, which is a non-GAAP accounting term defined as net income, excluding the gains or losses from sale of real estate and impairment losses from property plus depreciation and amortization of real estate assets. They also discuss core FFO, which is generally FFO, adjusted for certain non-recurring revenues and expenses and adjusted adjust core FFO for certain non-cash items such as converting GAAP rents to normalized cash rents. We believe these are better indications for better operating results and allow better comparability for period over period performance. And please visit our website that's Sign up for our email notification can also find us on Facebook. The keyword there is the Gladstone Company and on X, formerly known as Twitter. Our handle there is at gladstonecoms. Now today is an overview of our results. So we ask that you review our press release in Form 10-Q, both issued yesterday for more detailed that, I'll turn it back to David Gladstone. David Gladstone Oh thank you, Michael. I'll start with a brief overview of our farmland holdings. We currently have about 103,000 acres. And they own 50 different farms and about 55,000 acre feet of water assets that we hold as well. One acre foot is equal to about 326,000 gallons. So if you multiply that out, we own about 18 billion gallons of water, and that's very good because the West can be dry, but we're in good shape farms are in 15 different states and more importantly, they're in 29 different growing regions, and all our water assets are in California. Our farms are leased to over 80 different tenant farmers, and the tenants on these farms are growing 60 different crops, so we're highly of our crops are fruits and vegetables and nuts, and these are the healthy things that people should be eating. You can find those in the produce section of the grocery store, which is where most of the crops grown on our farms are we've mentioned in previous calls, we continue to be cautious with new investments because interest rates and our cost of capital remains very high, and cap rates on row crops and farmlands are just too low to be something that we can do in buying more farmland, which remains very high value and interest rates and all the inputs to farming are very expensive these days. And we also believe in a good time to conserve cash given the uncertain times that we're all living in leasing activity so far in 2025, we executed seven new leases or amended some existing leases, mostly on the permanent crops out the West. On one of these leases, we adjusted the lease to structure it in a similar manner to what we've done on a few other farms, and that is we've reduced eliminated the base rent, so we're not being paid on a monthly basis and in some cases provided the tenant with a little bit of cash to grow the crops on the the operating and capital costs are taken by us in exchange for that. We significantly increased the participation rent component in the lease, the majority of which unfortunately be recognized in the fourth quarter when we harvest the crops. So we're in the growing business with those eight farms that we've got. I want to touch a little bit more on mentioned in prior calls market conditions around many permanent crop farms in the West, particularly those growing nuts and grapes have been hampered by lower crop prices and higher inputs and borrowing such, we decided to adjust the lease structure on six properties to help the grower minimize their fixed cost, but also allow us to participate in the upside. In essence, we're accepting a percentage of the gross crops that are for sale. And instead of those rent payments that we normally were also decided to operate two properties ourselves with the help of a third party operator, so the third party operator is growing and we're covering some of the cost. We assume the worst case scenario, and if we do, and everything just doesn't work out our way. And for example, if we had total crop losses because of some crazy atmospheric thing, then we expect the crop insurance that we have on this to be enough to cover all of our costs and also provide us with a small we don't want, nor do we hope that we have to use that, but I can't talk at this point. My wife just called me. Let's see what's going on here. I'm on a call. I'm course, our hope is that we have a good production on all of these farms, so that we don't need to rely on crop insurance, in which case, could be significant. Just don't know and won't know until the fourth quarter when we actually sell the crops. We've been seeking positive movement in terms of pricing for almonds. We're seeing that happening pistachios are doing well, and this is supposed to be a good year in terms of production. So we're hopeful of a strong turnout when we gather this information in the fourth quarter, but we really won't know much about it. We'll give you progress reports as we go along when we find out what's going on in the current plan is to move forward with this structure for 2025 and harvest these eight farms that way. Then hopefully we'll revert back to more traditional lease structure next year. We may look to sell some of these properties that we have. And the six leases we executed so far this year are expected to result in a year-over-year decrease in our annual we'll see what that looks like at the end of the year, so pretty flat year. Looking ahead, we've had 16 lease schedules to expire throughout the rest of 2025 and due to some of these leases containing no fixed rent base and others including cash leases, both in exchange for increase in participation (Inaudible - microphone inaccessible)These leases actually account for negative $1.1 million of lease revenues during the first quarter of 2025. So we've given up some straight line income and largely because we want to participate in the resulting from these leases. And again I'll say it we won't know much about it until the fourth quarter and then we'll get our report cards, so to speak as we sell the -- all the things that they're growing on the in discussion with some current tenants and perspective new tenants about leasing these farms, including reverting some of these leases back to standard leases with fixed rates. Fixed base rents or if we're unable to do come to terms on some of these leases, most likely we'll sell a couple of these farms. We believe we have some very valuable farms for selling is always, and selling is always an now give a quick update on some of the remaining tenant issues that we have. We currently have five farms. That's part of the eight that are vacant and two properties and companies, four farms that are direct operating, so we've got eight of these properties that we've gone from having fixed rent leases into participation leases, and we're recognizing revenues from the leases with $0.03. We're collectively leasing five of our farms on a cash these farms, we are in discussions with various potential buyers and tenants to buy or lease these properties, and we hope to get these remaining issues resolved later this year. And if we're unable to come up with an acceptable resolution at about a year end, probably be listing some of these farms for sale. And just note on tariffs which everybody's talking about these days, most fresh produce such as berries and vegetables are somewhat insulated from the impact of (technical difficulty) because due to a strong domestic consumption, we're just selling those to other sector on the other hand, is vulnerable because 70% or so of US grown almonds and pistachios are exported annually. They box them up in boxes and ship them out. And China has in the past done a significant portion of those. It's down substantially now, and we have other countries that are more involved in buying our almonds and the tariff announcement, almond prices had risen significantly year-over-year, and pistachios remained stable over that slightly. While the full impact of tariffs on pricing is still unfolding, we are continuing to monitor the situation. In response to previous rounds of tariffs, China shifted much of its almond demand to other countries, and it has also reduced its imports of US pistachios due to more recent a result, some of the largest importers of US almonds and pistachios are now in India, The European Union and Turkey. None of which have announced any tariffs on the US goods. These demand shifts could help stabilize prices for US nets, although market dynamics are still evolving as they always do. This is not an exceptional year. It's just a straightforward year in that factor impacting export demand is the weakening of the US dollar. As the dollar gets weaker against other currencies, say, EU, for example. The global market helps mitigate any of the negative impacts from this point I'm going to turn it over to Lewis, and Lewis, of course, is will go through the numbers. Go ahead, Lewis. Lewis Parrish All right, thank you, David, and good morning everyone. I'll begin with our financing activity in connection with certain property sales, we paid off about $19.5 million of loans that were scheduled to reprice at market rates later this did not borrow any new money or issue any equity during the quarter. So move on to our operating results for the first quarter, we had net income of about $15.1 million and net income to common shareholders of $9.1 million or $0.25 per FFO was approximately $2 million for $0.06 per share compared to $5.1 million or $0.14 per share in the same quarter last year. Dividends declared for common share were $0.14 in both year-over-year decrease in FFOs was primarily driven by recent changes in lease structures on certain farms and certain tenancy issues that resulted in farm vacancies, leading to reduced revenues and higher costs, as well as lost revenues from farms sold over the past base cash rents decreased by about $5.7 million compared to the prior year quarter due to the reasons just mentioned. Again, primarily the vacancies we continue to work through and structural changes made to certain leases where we reduced or eliminated fixed base cash rents or in some cases provided cash lease incentives to certain tenants in exchange for a significantly increasing the crop share components in the as David mentioned, the results of these crop share components will not be known until the harvest is completed later this year. The decrease in fixed fixed base cash rents was partially offset by a $2.4 million lease termination fee we received from an outgoing tenant who previously leased three of our farms along with about $465,000 of participation rents recorded during the current quarter, primarily due to cash collected on the wine grape we mentioned this on the past couple of calls, but with a few additional agreements now in place, I think it's worth providing an update to the numbers. As a result of the change in lease structures we made on some of the farms, we are expecting a total year-over-year decline of about $17 million in our fixed base rents for fiscal year 2025 compared to ' figures consists of the base rents that we recognized last year under the prior leases, plus the cash allowances granted to certain tenants for the 2025 crop year. This will be shown as a reduction in our fixed base rents at a rate of roughly $4 million to $5 million per quarter in 2025, which is consistent with the impact we saw in the first quarter in turn, we expect most of the resulting crop share proceeds from these cases to be recognized as participation rent in the fourth quarter of 2025, with the remaining smaller portion to be recognized in the second half of in essence, we're shifting this revenue from fixed base rents to participation rents over the next couple of years. As a result, we expect earnings this year will be more heavily weighted towards the fourth quarter with wider earnings coming through the first three quarters compared to prior the expense side, excluding reimbursable items and certain non-recurring or non-cash charges, our core operating expenses increased by about $365,000 during the current the related party fees, excluding a capital gains fee that was triggered by recent sales, total related party fees decreased by about $60,000 driven by a lower base management fee due to recent farm capital gains fee is not payable until after the end of the fiscal year and remains subject to adjustment throughout 2025 based on future asset sales or dispositions, so it's been added back to AFFO for the time remaining core operating expenses increased by about $425,000 which is primarily due to additional property operating expenses associated with farms that were either vacant, direct operated, or non-accrual included additional property taxes, which were previously the responsibility of prior tenants, as well as additional legal fees related to leasing activity, establishing direct farming operations on certain farms, and protecting water rights on certain farms in our other expenses decreased mainly due to reduced interest expense and preferred dividend payments driven by loan repayments and preferred repurchases completed over the past to liquidity, including availability on our lines of credit and other undrawn notes, we currently have access to over $180 million of capital, including about $40 million of cash on hand. In addition, we have nearly $150 million of unpledged properties. Over 99.9% of our borrowings are at fixed rates, with a rated average rate of 3.41% locked in for an additional 3.4 a result, our operating results have experienced minimal impact from rising interest rates over the past few years, and we believe our current borrowing structure provides strong protection should interest rates continue at elevated at upcoming debt maturities, we have about $28 million coming due over the next 12 months. Of that, roughly $11 million consists of individual loan maturities, and given the value of the underlying collateral, we do not anticipate any issues refinancing these loans if we choose to do excluding those maturities, we have about $17 million of scheduled principal amortization coming due over the next 12 months, representing less than 4% of our total debt outstanding. In addition, we have about $7 million of loans with fixed rate terms that are set to expire within the next year, though the loans themselves are not regarding our common distribution, in April, we declared a monthly dividend of [$0.0467] per share for the second quarter of 2025. Based on our current stock price of $19.65 this equates to an annualized yield of 5.8%, which is above the average dividend yield across the broader wheat holding the dividend at its current level for now, we'll continue to evaluate it as more information becomes available regarding the 2025 that, I'll turn the program back over to David. David Gladstone Okay, thank you, Lewis. Nice report. We continue to stay active in the market should a good acquisition opportunity come along. So we're ready if interest rates come down because there's no use buying it unless you have low cost as mentioned on prior calls, we're still being more cautious on the acquisitions front because our cost of capital remains very high. And while we have seen decreases in pricing for certain permanent crops and farms out West, the value of most low crop farms like those growing strawberries remains high and cap rates on most of those farms are just high enough to cost worrisome for people who are growing those crops. So as a result, acquisition activity remains slow to none for us and probably will for at least the next. I don't know 12 months interest rates are still very high and banks are charging very high prices, and that's very bad for farming, especially for farmers who are borrowing money to plant their crops and also to harvest their getting reduced or pushed further out so that amounts of timing of any additional rate cuts remains uncertain. We just don't know what the Federal Reserve is going to do, and they almost dictate straight through to all the federal banks that we have our loans we do hope that rates will come down from some points in the near future, so that we can start looking at buying more farms again. And just a final point, excuse me, I got a frog in my throat. We believe that investing in farmland growing crops that contribute to a healthy lifestyle such as fruits and vegetables and nuts follows the trend that we're seeing in the market demand for the prime farmland growing berries and vegetables remains stable to strong almost all areas where farms are located, particularly. Both of those East and West coast. As mentioned earlier, crop prices of certain permanent crops such as nuts and wine grapes have been depressed lately, which has impacted the value of our underlying farm remember though for this company, and I guess for all companies for that matter, purchasing stock in this company is a long-term investment in farmland. Historically speaking, long term returns remain strong over time, but there are occasionally some ups and downs as there has been for the last year and a half since the now there's a portion of our portfolio that's in a down cycle as we call it and we're working hard to maneuver through it. We expect inflation, particularly in the food sector to continue to increase over time, and we expect the values of the underlying farmland to increase over time as they have mostly in the expect this, especially to be true of fresh produce in the food section and the trend of more people to eat those foods rather than some of the bad foods that are out we'll have some questions from those who follow us, and operator Paul, would you please come on and tell them how they can ask a question. Operator Thank you. We'll now be conducting a question and answer session.(Operator instructions)Gaurav Mehta, Alliance Global Partners. Gaurav Mehta Thank you. Good morning. I wanted to clarify your comments around $17 million of lower revenues in '25 versus '24. It seemed like a higher number than I think $13 million that you guys mentioned on the last call. So was there any more farms added, that to like the fixed to participation rent structure that increased that number for '25? Lewis Parrish Yes, there was one additional farm that we executed a new lease on where we gave the tenant a lease incentive, and there was one farm, one property that we took over to be direct operated, so the lost revenues that were recognized last year from those two farms were added to that, as well as the lease incentive we gave one tenant. Gaurav Mehta Okay. And so in terms of the total participation rents that you guys expect in '25, so that's $17 million plus some additional number as well based on last year's run rate. Lewis Parrish Yes, so, as David said, the eight properties that are kind of in this this bucket of having a lease incentive or being direct operated, we do expect to make all of that $17 million back and insurance should cover that number plus a little bit of a profit. Of course, we're hoping not to have to use it and to be able to show a higher the split of the revenues coming will be between Q4 '25 and Q4 '26, if we had a guess, maybe we'll get between 60% to 70% of that this year, and then the remaining amount will be in 2026, second half of '26. Gaurav Mehta And so in addition to $17 million, I think last year you had $9.4 million of participation rent so it's going to be last year's run rate plus additional $17 million, right? Lewis Parrish Not exactly, because some of those -- some of that participation rate came from farms that are now in this adjusted lease structure, if you will, so that $9.4 million would probably be a little bit lower this year and then add the $17 million plus any profit we're able to generate on these farms for the current year. Gaurav Mehta Okay. And then lastly, the $2.4 million termination fee, can you provide some color on that form? Lewis Parrish Yeah, so those were just, so three almond farms that 110 leased and those three farms are vacant now. We got a termination fee for letting them out of certain lease obligations, and one time event, of course, no, we won't get that again, but we are working through a variety of options on those three farms to get income coming in on those farms again. Gaurav Mehta Okay. Thank you. That's all I had. David Gladstone Okay, next question, Paul. Operator Rob Stevenson, Janney Montgomery Scott. Robert Stevenson Good morning guys. How should we be thinking about additional sales here in the second quarter and going forward throughout 2025? It doesn't look like that there's anything held for sale at March 31. David Gladstone No, we've had some, we have some farms that we've listed for sale, but we don't have any contracts that we want to execute on. Robert Stevenson Okay. And then the five assets that are vacant now, I assume that that's the three almond farms plus two others there. How are those being looked at right now? Are the other ones vacant? Is there stuff planted on there that you guys are taking care of on your own? Are they just raw land? How should we think about that? And the ability for that to be, somewhat of a kicker later on this year. Lewis Parrish So two of them are open ground. Nothing is planted on this, so it's pretty low cost to keep those going. It just their real estate taxes, which are pretty low on those. And the other three are the on the properties, these trees are at the end of their life, so they will be pulled out eventually. But as far as maintenance costs, it's also just the real estate taxes on those three farms that we're having to bear at the have a few, several different options that we're kind of evaluating for each of these. I mean, we could be entering into following programs, leasing off water rights, looking at potential new crops to plant there, which crops make the most sense in these regions with the water availability, market demand, tenant demand, but it's nothing is in stone yet. We're kind of in the process of throwing around a few different options and seeing which makes the most we'll get a few of these turned into income producing properties through the end of the year, but a couple of them could swing into next year as well. Robert Stevenson Are the almond farms close enough to population areas where it could make sense to sell to a home builder? Lewis Parrish Not at this time. We don't think, no. Robert Stevenson Okay. And then David, last month the common stock went below $9 for the first time since 2016. How do you and the board thinking about, possibly repurchasing shares, especially with the asset sales in the first quarter and some cash on the balance sheet, if the stock continues to be cheap in the sub [950] range. David Gladstone Yeah, it's always difficult. We are right now harboring cash, and the reason we're doing that is worst nightmare is, you have something come do and don't have the cash to pay for it. That's what we never want to do. And so we're making sure that we're in a position to borrow more money. All of our banks are telling us, please take down our money and our statement, of course, is reduce the interest rate and we'll take right now the farming area is kind of locked up tight. Not many people doing things mainly because interest rates are too high. And while we don't think about it that way, farming is a situation in which you need to be able to borrow money to harvest and borrow money to plant. And we just don't want to get in a situation where we can't have crops come our way during the next year and so I'm a little bit skittish on using my cash and my CFO, he's looking at me saying let's spend some money, but we could buy back preferred stock and make a lot of money for our stockholders, but you have to give up the liquidity, and I'm just not willing to do we're going to remain highly liquid for at least the rest of this year, and we'll have to see how well we do. If we do extremely well at growing and these growing situations and make a lot of money, that might change my mind, but we won't know that until probably toward the end of this you're right. We could make a lot of money and make our shareholders happy in the short term, but if we run into that brick wall of not having money to do things, then the game is not over, but it's really hurt. And so Rob, we're sticking with the idea of having enough money to do all the things that we need to do in order to be a farmer, and that's, I had some real good friends in the farming business that have just had to quit because they ran out of we've got to keep ourselves highly liquid and paying our dividend and hopefully when we cash in these crops that are growing and right now they seem to be very good at the end of the day you don't know until it happens and so, we're going to keep going and doing what we're doing, which is being highly liquid and taking care of our existing company, and some people just don't believe in us and I can't blame them. It's been tough for all the farmers since the pandemic that happened and really shut down the farming business for anything other than very stable are just going to continue to muddle our way through this and hopefully our bet on the crops in the ground and all of these are not things that we're planting. They're trees that are already growing, so we're just taking care of the trees and some point in time you'll know you're here is singing a good song down here about how well things went. That's where we are. I hope that's okay for you. Robert Stevenson All right. Thanks, guys. Appreciate the time this morning. David Gladstone Okay. We have another question. Operator John Massocca, B Riley Securities. John Massocca Good morning. David Gladstone Good morning. John Massocca So me with that kind of cash balance in mind, how are you thinking about any relatively limited debt maturities for the remainder of '25, but you do have that term preferred stock out there at the beginning of ' are you thinking about financing that? I mean, is that something you take out with additional asset sales? Would you potentially use some of the, you may be kind of runway you have in terms of taking on more leverage to take that down just kind of curious your thoughts about that particular instrument. David Gladstone Well, we planned it out and we are going to make the payment and not worry about that, but the question is always how you do it, and if we use our cash, we lose some liquidity. We've got these banks that want to lend us money but their prices are still high. So we're kind of sitting between those two decisions and trying to figure out which is the best way to go through it. We've got plenty of room to do it. It just means that, we're pushing out the answer to the question of these eight farms for another year or two years. I don't want to do that. I'd rather get back to leasing farms and letting the farmer make the big dollars rather than us putting up some money and making the big dollars.I don't like the growing side of the business. I do love the leasing side of the business. So we're just going to keep doing that and hopefully things will work out. Right now it looks extremely good projections for the farms are following exactly what we thought. We're still in good shape. So we'll let you know if anything happens, but I hate to see the people out there selling their shares because I think we're going to do well for the year. Lewis Parrish John, regarding your question about the, yeah, the preferred stock $60 million change coming due in January 26. We're talking through a few options. It's likely not guaranteed, but it's likely we'll have a couple more farm sales, so that's more cash on the balance sheet that could be used towards it depending on what interest rates are towards closer to that could go that route. We have been talking with banks to refinance that, but as David said, the price for that is high and it's honestly it's not too much cheaper than the option that would result in if we just let it sit out there, the coupon would go from 5% to 8%, not something we want to do, but the current refinancing cost is not a whole lot cheaper than that. And of course, you have a lot of upfront commissions and costs involved in that transaction as well. So we have a few different options that we're looking at, but it's too early to make a decision on which route we want to go, but it is in the forefront of our minds. John Massocca And just as a reminder, how long could that stay at 8% if you did decide to just let it roll forward. Lewis Parrish Forever. It turns into perpetual (multiple speakers). John Massocca Okay, and then, kind of bigger picture, how are you thinking about the bank groundwater, both in terms of maybe adding to that and what you have, kind of currently tucked away, just given where kind of market dynamics are, I mean, right, it's kind of a security policy with kind of traditional drought in some of these western markets, but we've had some wetter winter. So just curious kind of your thoughts about, your bank water holdings adding to it, you selling out of it, et cetera. David Gladstone Well, we have one situation in which we're probably going to add to it. Right now we have enough water to do whatever we want to do this year unless everything's turned just total against us, but I think we're in great shape, and I think the water situation is going to be good for us, all of that water is in the ground and we get our name on it and we pump it out whenever we need haven't needed any of that water so far. It's been a relatively wet year, and I don't think there's going to be much change, but the weather can can blindside you easily by coming in really strong, and we had so much water coming in the amount of snow that's in the mountains that will melt this summer is better than it was last year. So this year should be a good I don't worry about water nearly as much as I worry about what the Federal Reserve is going to do with interest rates because with interest rates high, I mean, we borrowed money at 3%, and most of our long term debt is at 3%. So it would be nice if we could go back to that level, and this is farmland lending, and we don't have any problem with the lenders are willing to lend. It's just they can't lend much below what they're being charged by the Fed and by the government. So if you've got any strings to pull them in for the Federal Reserve because all the farmers need help this year and in the future. It's very expensive to borrow 8% money and use it to plant everything is pretty much stalled. There are a lot of people who would like to sell the farms, and I would love to buy them because prices are good, but at the same time, you can't borrow it. You need an enormous amount of equity in order to wade into the marketplace today. John Massocca Okay. So that kind of last that last comment in mind. It's not a very specific level. Are you seeing anything loosening up in terms of transactions in the California kind of permanent crop market? It seems like that was kind of stuck, given some of the prices of tree nuts, over the last couple of years, but anything kind of opening up a little bit here is, operators have kind of digested distress of the last couple of years. David Gladstone Well, prices for almonds, for example, have come up substantially from last year, and pistachios seem to be holding their own and making money for people that are farming those. We do have some wine grapes, and that's not a good market to be in right now, but we're getting along and I think for us, as long as the pistachio market is good, we're going to be fine. John Massocca Would you look at that market kind of got a little better? Would you like to sell any of your assets in in that kind of specific area? David Gladstone Yeah, we've talked to a lot of brokers. There's a unfortunately these past two years have been really bad for farmers, and there are a lot of farms for sale. We've seen bankruptcies right and left, farmers who were too highly leveraged and couldn't make their payments, so the banks end up with could get some great deals if we had cheap money to buy it, but I'm not going to go down that path. We've got enough money to do what we need to do for the next year, and I think we're just going to stay and keep doing what we're doing. Pretty boring for everybody except I guess people who are hoping our stock will go down even further. So other than that, we're in good shape. John Massocca Okay, that's it for me. Thank you very much. David Gladstone Okay Joe, anybody else? No other questions?Well, I hate to say it and leave it where it is, but we don't have any better information for you. So as a result, we're going to close it out and see you next quarter. We've got the money to go to next quarter and the quarter after that and even the quarter after that as long as we don't have complete disaster like they had in (inaudible)That would be be able to just stick around and wait it out and if we hit the ball out of the park as we hope to do with our ape farms, we're going to be able to say some nice things to you next time. So that's the end of this call. Operator This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Here's How You Can Earn $100 In Passive Income By Investing In Gladstone Land Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Gladstone Land Corporation (NASDAQ:LAND) is a real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The 52-week range of Gladstone Land stock price was $10.27 to $15.36. Gladstone Land's dividend yield is 5.32%. It paid $0.56 per share in dividends during the last 12 months. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – On Feb. 19, the company announced its Q4 2024 earnings, posting FFO of $0.09, missing the consensus estimate of $0.11, while revenues of $21.10 million came in above the consensus estimate of $20.45 million, as reported by Benzinga. 'Our annual row crop farms, including those in California and Florida, continue to perform, both in terms of value appreciation and rent growth. The market for many permanent crop farms in the west has been negatively impacted by lower crop prices, higher input costs, and water uncertainty. As such, we've been taking a different approach with the leases on some of these farms, whereby we will grant the tenants a cash allowance to cover a portion of their growing costs in return for receiving a larger portion of the gross crop proceeds on the farms. We may also decide to operate some of these farms ourselves with the help of a third-party operator," CEO David Gladstone said. Trending: It's no wonder Jeff Bezos holds over $250 million in art — If you want to make $100 per month — $1,200 annually — from Gladstone Land dividends, your investment value needs to be approximately $22,556, which is around 2,144 shares at $10.52 each. Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (5.32% in this case). So, $1,200 / 0.0532 = $22,556 to generate an income of $100 per month. You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40). In summary, income-focused investors may find Gladstone Land stock an attractive option for making a steady income of $100 per month by owning 2,144 shares of stock. There may be more upside to come as investors benefit from the company's consistent dividend hikes. Gladstone Land has raised its dividend consecutively for the last 10 years. Check out this article by Benzinga for three more stocks offering high dividend yields. Real estate is a great way to diversify your portfolio and earn high returns, but it can also be a big hassle. Luckily, there are other ways to tap into the power of real estate without owning property. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, Looking for fractional real estate investment opportunities? The features the latest offerings. Send To MSN: 0 This article Here's How You Can Earn $100 In Passive Income By Investing In Gladstone Land Stock originally appeared on Sign in to access your portfolio
Associated Press
27-01-2025
- Business
- Associated Press
Gladstone Land Reports No Damage to Farms from California Wildfires
MCLEAN, VA / ACCESS Newswire / January 27, 2025 / Gladstone Land Corporation (Nasdaq:LAND) ('Gladstone Land' or the 'Company') announced that none of its California farms have been impacted by the recent wildfires that have occurred in the southern part of the state. The Company further notes that all of its farms in the state growing permanent crops are insured by the Company or its tenant-farmers under policies that would cover both the crops and any potential loss of crop income. 'Our hearts and prayers go out to all of those who were negatively affected by the recent wildfires in California,' said Bill Reiman, Executive Vice President of Gladstone Land. 'Our farms typically have low risk of being damaged from wildfires; however, we are always on alert and ready to react should action be required to protect our assets. We also stand ready to help our neighbors and communities should we be in a position to do so.' 'Wildfires in California generally occur in the hills and mountains where the brush is,' said David Gladstone, President and CEO of Gladstone Land. 'Our farms are mostly located in the farming plains that are far below the hills, usually separated by large bodies of water, and there is very little brush to burn there.' About Gladstone Land Corporation: Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 157 farms, comprised of approximately 111,000 acres in 15 different states and over 55,000 acre-feet of water assets in California, valued at a total of approximately $1.4 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 30% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 20% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 143 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.0467 per month, or $0.5604 per year. Additional information, including detailed information about each of the Company's farms, can be found at Owners or brokers who have farmland for sale in the U.S. should contact: Lenders who are interested in providing Gladstone Land with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or [email protected]. For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit All statements contained in this press release, other than historical facts, may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates' and variations of the foregoing words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause Gladstone Land's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption 'Risk Factors' of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the 'Form 10-K'), as filed with the SEC on February 20, 2024, and certain other documents filed with the SEC from time to time. Gladstone Land cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. For a definition of net asset value and a reconciliation to the most directly comparable GAAP measure, please see the Company's Form 10-K.
Yahoo
27-01-2025
- Business
- Yahoo
Gladstone Land Reports No Damage to Farms from California Wildfires
MCLEAN, VA / / January 27, 2025 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") announced that none of its California farms have been impacted by the recent wildfires that have occurred in the southern part of the state. The Company further notes that all of its farms in the state growing permanent crops are insured by the Company or its tenant-farmers under policies that would cover both the crops and any potential loss of crop income. "Our hearts and prayers go out to all of those who were negatively affected by the recent wildfires in California," said Bill Reiman, Executive Vice President of Gladstone Land. "Our farms typically have low risk of being damaged from wildfires; however, we are always on alert and ready to react should action be required to protect our assets. We also stand ready to help our neighbors and communities should we be in a position to do so." "Wildfires in California generally occur in the hills and mountains where the brush is," said David Gladstone, President and CEO of Gladstone Land. "Our farms are mostly located in the farming plains that are far below the hills, usually separated by large bodies of water, and there is very little brush to burn there." About Gladstone Land Corporation: Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 157 farms, comprised of approximately 111,000 acres in 15 different states and over 55,000 acre-feet of water assets in California, valued at a total of approximately $1.4 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 30% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 20% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 143 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.0467 per month, or $0.5604 per year. Additional information, including detailed information about each of the Company's farms, can be found at Owners or brokers who have farmland for sale in the U.S. should contact: Western U.S. - Bill Reiman at (805) 263-4778 or Bill.R@ Mid-Atlantic and Midwest U.S. - Joey Van Wingerden at (703) 287-5914 or Joe.V@ or Southeastern U.S.- Brett Smith at (703) 287-5837 or Brett.S@ Lenders who are interested in providing Gladstone Land with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of the foregoing words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause Gladstone Land's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Form 10-K"), as filed with the SEC on February 20, 2024, and certain other documents filed with the SEC from time to time. Gladstone Land cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. For a definition of net asset value and a reconciliation to the most directly comparable GAAP measure, please see the Company's Form 10-K. For further information: Gladstone Land, (703) 287-5893 SOURCE: Gladstone Land Corporation View the original press release on ACCESS Newswire Sign in to access your portfolio
