Q1 2024 Gladstone Land Corp Earnings Call Transcript
Key Points
- Gladstone Land Corp reported a net income of $13.6 million and net income to common shareholders of $7.4 million, or $0.21 per share for the first quarter.
- The company successfully sold a large farm in Florida for $66 million, realizing a net gain of approximately $10 million, which was $2 million more than its appraised value.
- Gladstone Land Corp has continued to focus on water security, completing the construction of two groundwater recharge facilities which are expected to provide long-term sustainable water supplies.
- The company has over $200 million of liquidity, including nearly $60 million of cash on hand, providing a strong financial position to manage upcoming obligations and investments.
- Gladstone Land Corp raised its common dividend to $0.0466 per share per month, marking the 34th increase in the past 37 quarters.
- The company is experiencing decreased demand for certain crops like almonds and pistachios, which is affecting the rental income from farms growing these crops.
- Two properties encompassing four out of 168 farms are currently vacant, and properties encompassing 11 farms are under direct operating management, indicating challenges in leasing out all properties efficiently.
- Adjusted FFO for the quarter was approximately $5.1 million or $0.143 per share, down from $5.9 million or $0.166 per share in the prior year quarter, primarily due to lost income from the sold farm and decreased revenues from properties that were either vacant or on nonaccrual status.
- The company noted a cautious approach to new investments due to high cost of capital and insufficient increase in farmland rental rates to cover additional farming costs.
- Gladstone Land Corp reported a decrease in net asset value per common share from $19.06 at the end of the previous quarter to $18.50, driven by a decrease in the fair value of preferred securities and a drop in valuations of certain farms.
Greetings and welcome to the Gladstone Land Corporation first quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, David Gladstone, Chief Executive Officer. Thank you, sir, you may begin.
Thank you, LaTonya. That was nice introduction and this is, as you said, David Gladstone and we welcome you all to the quarterly conference call for Gladstone Land. Thank you all for calling in today. We appreciate you taking time out of your day to listen to our presentation before I begin, we're going to start with Michael LiCalsi. He's our General Counsel, and Michael, go ahead.
Thanks, David. Today's report may include forward-looking statements under the Securities Act of 1933 and the Securities Exchange Act of 1934, including those regarding our future performance
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
