NASDAQ$LAND

Gladstone Land Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Gladstone Land reported financial results for the third quarter ended September 30, 2023.

Gladstone Land's net income for the quarter was approximately $3.1 million, compared to $1.8 million in the prior-year quarter. AFFO for the quarter was approximately $5.6 million, or $0.15 per share, compared to approximately $7.2 million, or $0.21 per share, in the prior-year quarter.

  • Executed seven new or amended lease agreements on farms in two different states, expected to result in an aggregate increase in annual net operating income of approximately $210,000, or 9.8%, over the prior leases.
  • Repaid approximately $4.2 million of maturing loans.
  • Increased the distribution run rate on common stock by 0.43% and paid monthly cash distributions totaling $0.1386 per share of common stock during the quarter.
  • Estimated NAV per share increased by $3.77 from the prior-year quarter to $20.33 at September 30, 2023.

Headline financials

Total Revenue

$23.5M

Previous: $24.2M-2.8%
EPS (adj)

$0.15

Previous: $0.21-28.6%
Occupancy Rate

100.0%

Previous: 100.0%+0.0%
Capital Expenditures

-$9.98M

Previous: -$75.2M+86.7%
Free Cash Flow

-$6.84M

Previous: -$73.4M+90.7%
Net Income

$3.14M

Previous: $1.8M+74.1%
Operating Income

$9.4M

Previous: $9.64M-2.5%
Gross Profit

$23.5M

Previous: $24.2M-2.8%
Cash & Equivalents

$25.1M

Previous: $37M-32.2%
Total Assets

$1.41B

Previous: $1.44B-2.2%

Revenue & EPS history

Gladstone Land · Revenue · Quarterly

$23.5M

Q3 2023-2.8%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Gladstone Land · $1.2M total across 1 segment · Q4 2020

  • Participation Rents
    $1.2M

Forward guidance

The company is working through issues with a few tenants and is in discussions to lease vacant farms. The company is also focusing on securing additional water rights for farms in California.

Tailwinds

  • Balance sheet remains strong with nearly 100% of borrowings at fixed rates.
  • Significantly limiting the impact of increased interest rates.
  • Focusing efforts on securing additional water rights for our farms in California.
  • Taking advantage of surplus water supplies and storing water for future use on our farms.
  • Overall value of our farmland portfolio has continued to increase.

Headwinds

  • Results for the quarter were largely as expected but remained slightly down from last year as we continue to work through issues with a few of our tenants.
  • Currently have four properties (encompassing 12 total farms) that we are operating with the help of a third-party management company.
  • Have one property (which consists of three farms) that is vacant.
  • High borrowing costs continue to impact our ability to purchase new farms.
  • High borrowing costs have resulted in reduced values for certain types of real estate.

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 2023

Historical avgQ3 2023

+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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