Gladstone Land Stock Earnings Reports

Gladstone Land owns ~100,000 acres across 148 farms in 15 states and ~56,000 acre-feet of California water rights. Management is taking a disciplined stance on acquisitions due to elevated cost of capital and high interest rates; minimal to no new farm purchases are expected until financing improves. During Q3 they sold a Florida property for $21.5 million (36% above purchase price, ~$6M gain) and may consider additional selective disposals. Management has modified several permanent-crop lease structures (six properties modified; two properties now directly operated via third-party operators) by replacing fixed base rents with crop-share/participation arrangements to reduce tenant fixed costs and capture upside. As a result, fixed base cash rents declined year-over-year (about $5.4M lower for the quarter), but participation rents increased (about $1.9M) and most of the crop-share revenue is expected to be recognized in Q4 2025 — management cited approximately $17M of revenue expected in Q4 from three orchards (pistachios/almonds) and noted pistachios outperformed expectations. Wine grapes remain oversupplied and depressed; tree nuts (pistachios, almonds) show resilient pricing and demand. Liquidity is strong: >$170M in immediately available capital, $25M cash on hand, a fully undrawn $75M line of credit, and ~ $150M of unpledged properties available as collateral. Capital actions: repaid a $10M bond during the quarter; raised ~ $10M via ATM to help redeem preferred Series D (approx. $60.4M principal) which would otherwise reset from 5% to 8% on Jan 31, 2026. Management prefers redeeming/modifying the preferred to avoid the rate step up, using a mix of common equity and the line of credit; the blended cost would be ~6% vs 8% if left outstanding. Operating results: Q3 net income ~$2.1M; net loss to common ~$3.9M (-$0.11/share); adjusted FFO $1.4M ($0.04/share) vs $4.5M a year ago, driven by lease structure changes, farm sales and tenancy vacancies (six vacant farms). Management expects most 2025 earnings to be realized in Q4 due to revenue timing from participation leases. They declared a monthly common dividend of $0.0467 for Q4 2025 (~6.1% annualized at the stated share price). Key near-term risks: elevated cost of capital, tenancy resolution on vacant farms, crop market volatility (especially wine grapes), and timing of crop-share harvest proceeds.