NASDAQ$LAND

Gladstone Land Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported financial results, showing an increase in net income and AFFO compared to the prior quarter, driven by higher lease revenues and participation rents.

Gladstone Land reported a net income of $2.0 million for the quarter, with a net loss to common stockholders of $1.4 million, or $0.04 per share. AFFO increased to $6.7 million, or $0.20 per share, driven by higher lease revenues, particularly from participation rents. The company's NAV per share increased by $0.51 to $14.31.

  • Net income for the quarter was approximately $2.0 million, compared to $1.5 million in the prior quarter.
  • AFFO was approximately $6.7 million, an increase of approximately $1.5 million, or 28.4%, over the prior quarter.
  • Total cash lease revenues increased by approximately $2.8 million, or 14.5%, primarily driven by participation rents.
  • Estimated NAV per share increased by $0.51 from the prior quarter to $14.31.

Headline financials

Total Revenue

$22.8M

Previous: $15.1M+50.8%
EPS (adj)

$0.20

Previous: $0.15+33.3%
Farms Owned

164

Previous: 137+19.7%
Acres Owned

112.5K

Previous: 101.1K+11.3%
Occupancy Rate

100.0%

Previous: 100.0%+0.0%
Net Income

$1.99M

Previous: $91K+2084.6%
Operating Income

$9.8M

Previous: -$2.86M+442.4%
Gross Profit

$22.8M

Previous: $15.1M+50.8%
Cash & Equivalents

$16.7M

Previous: $9.22M+81.3%
Total Assets

$1.35B

Previous: $1.07B+26.6%

Revenue & EPS history

Gladstone Land · Revenue · Quarterly

$22.8M

Q4 2021+50.8%vs Q4 2020
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 anticipates another successful year in 2022, with a focus on replenishing the backlog of potential farm acquisitions.

Tailwinds

  • Actively working to replenish backlog of potential farm acquisitions.
  • Increase the distribution run rate by 0.22%, declaring monthly cash distributions of $0.0453 per share of common stock for each of January, February, and March 2022.
  • Recorded $5.2 million in participation rents during the year, which was more than twice the amount recorded in each of the prior two years.
  • Secured new long-term borrowings from two different lenders resulting in total proceeds of approximately $3.4 million.
  • Increased the size of our credit facility with Metropolitan Life Insurance Company Through the addition of a new $100.0 million long-term note payable.

Headwinds

  • Executed five new lease agreements on certain of our farms in three different states that are expected to result in an aggregate decrease in annual net operating income of approximately $659,000 from that of the prior leases.
  • California remains under drought conditions.
  • The majority of this decrease is due to one lease renewal in which we agreed to pay a fixed amount to cover the majority of the farm's operating expenses in exchange for adding a significant participation rent component to the lease, the result of which will not be known until later in 2022.
  • Excluding this lease renewal, the other lease renewals executed subsequent to December 31, 2021, are expected to result in an aggregate decrease in annual net operating income of approximately $25,000, or 2.8%, from that of the prior leases.
  • Despite record-breaking storms that came toward the end of 2021, California remains under drought conditions.

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 Q4 2021

Historical avgQ4 2021

+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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