NASDAQ$LAND

Gladstone Land Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced financial results for the third quarter ended September 30, 2020.

Gladstone Land Corporation reported net income of approximately $1.6 million and AFFO of approximately $3.1 million for the quarter. Total lease revenues increased by approximately $1.4 million, primarily driven by participation rents. NAV per share increased by $0.91 from the prior quarter to $11.97.

  • Acquired eight new farms, consisting of 3,473 total acres across three different states for approximately $39.2 million.
  • Executed four new lease agreements on certain farms that are expected to result in an aggregate increase in annual net operating income of approximately $181,000, or 11.3%, over that of the prior leases.
  • Secured a loan of approximately $4.5 million from a new lender at an expected effective interest rate of 3.24%, which is fixed for the next 10 years.
  • Increased the monthly distribution run rate on common stock by 0.22% and paid total cash distributions of $0.13440 per share of common stock for July, August, and September 2020.

Headline financials

Total Revenue

$14M

Previous: $11M+27.0%
EPS (adj)

$0.14

Previous: $0.14+0.0%
Farms Owned

123

No prior period
Acres Owned

92.6K

No prior period
Occupancy Rate

100.0%

No prior period
Capital Expenditures

-$75.4M

Previous: -$210M+64.0%
Free Cash Flow

-$73.8M

Previous: -$209M+64.7%
Net Income

$1.57M

Previous: $517K+203.3%
Operating Income

$7.13M

Previous: $5.44M+31.2%
Gross Profit

$14M

Previous: $11M+27.0%
Cash & Equivalents

$6.46M

Previous: $3.99M+61.7%
Total Assets

$878M

Previous: $757M+16.0%

Revenue & EPS history

Gladstone Land · Revenue · Quarterly

$14M

Q3 2020+27%vs Q3 2019
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Gladstone Land · $1.1M total across 1 segment · Q3 2020

  • Participation Rents
    $1.1M

Forward guidance

The Company has acquired approximately $75 million of new farms over the past two months, and the team has a robust list of farms they are seeking to acquire over the next several months.

Tailwinds

  • Company has acquired approximately $75 million of new farms over the past two months.
  • Team has a robust list of farms they are seeking to acquire over the next several months.
  • Recently surpassed $1 billion in total farmland value.
  • Success with lease renewals.
  • Increased net rental rates on these renewals indicate the strong demand for, and continued appreciation in value of, the Company’s farms.

Headwinds

  • One farmer owes about $43,000.
  • Tenant on the Company's farms sell their products to grocery stores.
  • Impact on the Company's farms and farmers as a result of COVID-19 continues to be minimal.
  • Most tenants on the Company's farms sell their products to grocery stores, with very little of their sales going to restaurants and other segments of the food service industry.
  • Cash flows from operations for the current quarter decreased, primarily due to the timing of when certain rental payments are scheduled to be paid, as well as increases in the amounts of fees paid to our Adviser and interest payments made.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-1.0%

Avg return

30 days after

54%

26 / 48 earnings

Positive

+8.7%

Q4 2025

Best reaction

-10.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%-3.4%-6.4%
Q4 2025+8.7%+5.6%-14.2%
Q3 2025+1.1%+8.1%-1.2%
Q1 2025+2.8%+1.6%+5.9%
Q4 2024+1.3%-0.9%-9.3%
Q3 2024-1.5%-7.5%-14.3%
Q2 2024-0.2%-1.0%-2.7%
Q1 2024+1.8%+3.2%+3.7%
Q4 2023-2.5%-3.5%-2.4%
Q3 2023-4.8%-4.6%-1.1%
Q2 2023+0.9%-1.0%-7.2%
Q1 2023-3.3%-1.8%+9.5%
Q4 2022-2.5%-6.8%-19.3%
Q3 2022+2.1%+7.3%-3.6%
Q2 2022-2.7%-1.6%-12.6%
Q1 2022-10.0%-14.2%-21.1%
Q4 2021-3.0%+4.0%+22.0%
Q3 2021+3.6%+9.2%+20.8%
Q2 2021-4.4%+0.0%-2.4%
Q1 2021+3.3%+10.6%+12.0%
Q4 2020+2.3%+2.4%+1.3%
Q3 2020-0.9%-2.5%+4.4%
Q2 2020-1.7%-0.5%-5.7%
Q1 2020+2.2%+0.7%+11.9%
Q4 2019+2.9%+0.6%-24.6%
Q3 2019+0.0%+0.9%+8.5%
Q2 2019+1.0%+1.6%+1.2%
Q1 2019-0.4%-0.6%-2.9%
Q4 2018+1.3%-0.9%+2.2%
Q3 2018+2.2%+3.2%+4.6%
Q2 2018-4.0%-0.2%+1.9%
Q1 2018+0.6%+1.6%+2.1%
Q4 2017-1.0%+2.2%+3.0%
Q3 2017-0.5%-0.4%-2.7%
Q2 2017+2.4%+5.4%-0.1%
Q1 2017-0.5%-0.5%+2.9%
Q4 2016+4.1%+4.6%-8.1%
Q3 2016+2.7%+6.3%+4.1%
Q2 2016-0.3%-0.7%+1.2%
Q1 2016-1.4%
Q4 2015+1.1%
Q3 2015+2.1%
Q2 2015+0.9%
Q1 2015+0.3%
Q4 2014+5.5%
Q4 2013-3.7%
Q2 2013+5.7%
Q4 2012+1.8%
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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