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Gladstone Land (LAND)
NASDAQ:LAND
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Gladstone Land
(NASDAQ:LAND)
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Rating:57Neutral
Price Target:
$13.00
â–²(6.91% Upside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weaker financial performance (2025 net loss and sharply lower operating cash flow) and earnings-call risks (AFFO decline, rent restructuring, vacancies, and loan reset exposure). These are partly offset by strong technical uptrend signals and a supportive dividend yield alongside improved balance-sheet flexibility.
Positive Factors
Recurring Rental Model
Gladstone Land’s core business is leasing farmland under long-term arrangements, producing recurring base rent and participation income. This tenancy-based model provides durable cash flows and dividend support versus transactional businesses, helping sustain revenue through farming cycles and offering predictable long-term cash generation.
Liquidity & Debt Flexibility
The company’s substantial immediately available capital and large pool of unpledged collateral materially increases financial optionality. With low or no reported debt in 2025 and access to capital, management can address lease vacancies, fund direct-operated crops, redeem expensive preferreds, or repay/restructure maturing loans, reducing refinancing risk over the medium term.
Water & Acreage Assets
A sizable land base complemented by water entitlements provides multi-decade optionality: water can be monetized via banking or pricing arbitrage while acreage produces rental income and capital appreciation. In water-constrained regions, these assets offer durable scarcity value and diversified cash generation beyond pure rent, strengthening the long-term asset moat.
Negative Factors
Profitability Volatility
GAAP profitability swung to a meaningful net loss to common shareholders in 2025, reflecting allocation, noncontrolling interests, and underlying operational pressure. Persistent earnings volatility undermines sustainable returns and complicates dividend coverage forecasting, weakening investor confidence in long-term payout reliability and ROE improvement.
Weakened Operating Cash Flow
Operating cash generation declined sharply in 2025, driven by timing of crop receipts and higher direct-operating costs. Lower and timing-sensitive cash flow reduces the firm’s ability to fund dividends, buybacks, or acquisitions without tapping capital markets, increasing reliance on asset sales or equity issuance during adverse cycles.
Lease Restructuring & Vacancy Risk
A material shift from fixed base rents toward participation and renegotiated leases cuts revenue predictability and increases earnings sensitivity to crop prices. Combined with nine wholly/partially vacant farms, this raises re-leasing and direct-operation costs, making AFFO and dividend stability more dependent on commodity markets and successful lease renewals.
Gladstone Land (LAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$503.89M
Dividend Yield6.36%
Average Volume (3M)841.62K
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-23.25%
EPS Growth-51.02%
CountryUS
Employees70
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)-0.05
Shares Outstanding41,438,408
10 Day Avg. Volume861,057
30 Day Avg. Volume841,616
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.50
Price to Sales (P/S)4.39
P/FCF Ratio-1.99K
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue12.67
Enterprise Value/Gross Profit14.49
Enterprise Value/Ebitda16.30
Forecast
1Y Price Target
$11.75Price Target Upside-3.37% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.47
Revenue Forecast (FY)$67.08M
Gladstone Land Business Overview & Revenue Model
Company DescriptionFounded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 127 farms, comprised of approximately 94,000 acres in 13 different states, valued at approximately $1.0 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, figs, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 10 to 20-plus years and harvested annually. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. The Company pays monthly distributions to its stockholders and has paid 93 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 20 times over the prior 23 quarters, and the current per-share distribution on its common stock is $0.0449 per month, or $0.5388 per year.
How the Company Makes MoneyGladstone Land generates revenue primarily through leasing its farmland to agricultural operators under long-term leases. These lease agreements typically provide Gladstone with a fixed rental income, which is structured to increase over time, ensuring predictable cash flows. Additionally, the company may benefit from the appreciation of land values over time, contributing to its overall earnings. Gladstone Land also engages in selective acquisitions of farmland that align with its investment strategy, thereby enhancing its portfolio and potential revenue sources. The company’s focus on sustainable agriculture and strategic partnerships with experienced farmers further strengthens its revenue model, as it positions itself favorably within the agricultural sector and aids in attracting reliable tenants.
Gladstone Land Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call conveys a mix of positive operational momentum and manageable liquidity/financial positioning alongside meaningful challenges. Operationally, management highlighted a strong 2025 harvest, resilient nut markets (notably pistachios), realized gains from property sales, improved Q4 AFFO, and solid liquidity & low fixed-rate debt. Offsetting these positives are full-year pressures including a net loss to common shareholders, a year-over-year decline in full-year AFFO, substantial reductions in fixed base rents due to lease restructuring, tenancy/vacancy issues, timing-related cash flow weakness, and exposure to upcoming loan repricings. Management is taking proactive actions (preferred redemption, ATM raises, targeted sales) and expects additional crop-related cash flows in 2026, but elevated cost of capital limits near-term acquisition activity. Overall, positives and negatives are roughly balanced.Q4-2025 Updates
Positive Updates
Strong Q4 Adjusted FFO Performance
Adjusted FFO (AFFO) for Q4 was $14.4M or $0.38 per share, up from $3.4M or $0.09 per share in the year-ago quarter (≈+322% per share), reflecting improved quarter-end operating results and higher participation rents.
Property Sales and Realized Gains
Completed 6 property sales during the year with proceeds of $95M and recognized aggregate gains of about $21M; two sales occurred in Q4 (small blueberry farm sold at a small loss; Colorado farm sold at a gain).
Successful 2025 Harvest and Strong Nut Markets
Harvest completed for 2025 with yields exceeding budgeted objectives, particularly for almonds and pistachios; pistachio market showing resilience and strength with light buyer-side supply and a processor announcing a $0.50/lb bonus for 2025 pistachios, increasing likelihood that final 2025 pistachio pricing will exceed 2024.
Direct-Operated Farm Profitability and Future Revenue
Net profit from crop sales in direct-operated farms was ~$2.6M for 2025 (first harvest year). Management expects additional pistachio-related cash (estimated at ~ $3M) to be recognized in 2026 due to marketing bonus payments.
Healthy Liquidity and Balance Sheet Flexibility
Approximately $85M of immediately available capital plus over $185M of unpledged properties available as additional collateral; raised roughly $50M of common stock via ATM since the beginning of Q4 to fund preferred redemption and liquidity needs.
Low Fixed-Rate Debt Cushion
About 98% of borrowings are at fixed rates with a weighted-average interest rate of 3.39% locked for another ~2.7 years, helping shield the company from near-term rate volatility.
Dividend and Shareholder Yield
Declared monthly dividend of $0.0467 per share for Q1 2026; at the reported stock price of $11.51 this equates to an annualized yield of ~4.9%, above the REIT sector average.
Water Asset Position and Market Opportunity
Own nearly 99,000 acres across 144 farms and about 56,000 acre-feet of water (approx. 18 billion gallons). Current wet conditions and above-average reservoirs create attractive water banking opportunities; management cited available Article 21 water pricing in the $50–$80/acre-foot range.
Proactive Capital Management
Redeemed Series D preferred to avoid coupon step-up (from 5% to 8%), funded via ATM issuance and line-of-credit draw; management intends to use future sale proceeds to pay down debt and repurchase higher-cost preferred shares when attractive spreads exist.
Negative Updates
Full-Year Net Loss to Common Shareholders
For the year, recorded net income of $13.5M but a net loss to common shareholders of $10.5M or $0.29 per share, indicating distribution/attribution and noncontrolling impacts that weighed on common returns.
Year-Over-Year Decline in AFFO
Full-year AFFO declined to $14.4M or $0.39 per share from $16.0M or $0.47 per share in the prior year (≈-17.0% per share), driven primarily by lease structure changes, timing of crop revenue recognition, lost revenue from property sales and tenancy vacancies.
Significant Decrease in Fixed Base Cash Rents
Fixed base cash rents decreased by about $1.9M in the quarter and approximately $19.8M for the full year, primarily due to lease modifications that reduced or eliminated fixed rents in exchange for higher participation (crop-share) components.
Tenancy and Vacancy Challenges
Currently have 9 farms wholly or partially vacant (including four direct-operated); three tenants collectively lease about five farms on cash-basis arrangements. Vacancy/tenancy issues contributed to lower revenues and higher costs; management is working toward resolutions for several farms.
Operating Cash Flow Timing and Expense Pressures
Operating cash flows declined due to timing differences (most growing costs paid in 2025 while proceeds from crops primarily received in 2026). Recurring cash operating expenses increased due to supplemental water costs, higher insurance and property taxes on certain direct-operated properties.
Limited Acquisition Activity Due to Elevated Cost of Capital
Management remains cautious on acquisitions because capital costs remain high; stated that capital rates on most row-crop farmland are too low to make acquisitions economically attractive when significant debt is required.
Near-Term Repricing Risk on Floating/Resetting Loans
No loans maturing in next 12 months but approximately $160M of loans with fixed-rate terms are scheduled to reprice over the next 12 months (including $135M under the MetLife facility scheduled to reprice in Jan 2027), creating potential interest expense pressure upon reset.
Quarterly Net Loss to Common Shareholders and Per-Share Impacts
Recorded a Q4 net loss to common shareholders of $1.8M or $0.05 per share despite positive AFFO results, reflecting non-cash and allocation impacts that affected GAAP earnings.
Selective Farm Sales Included a Loss
One Q4 sale (small blueberry farm in North Carolina) incurred a small loss driven by tenant rent arrears and difficulty re-leasing the property outside the company’s normal territory.
Company Guidance
Management's guidance emphasized liquidity, timing of crop proceeds, cautious deployment of capital, and portfolio actions: they sold 6 properties in 2025 for ~$95M of proceeds with ~ $21M aggregate gains, still own ~99,000 acres across 144 farms (≈56,000 acre‑feet ≈18 billion gallons) in 14 states with water assets in California, executed 5 lease renewals this quarter (two row‑crop renewals up ~7%), have 5 leases expiring over the next six months representing ~3.6% of 2025 lease revenue, and currently report 9 wholly/partially vacant farms (4 direct‑operated); financially Q4 net income was ~$4.2M (net loss to common $1.8M, $0.05/sh), FY net income ~$13.5M (net loss to common $10.5M, $0.29/sh), AFFO was $14.4M/$0.38 in Q4 (vs $3.4M/$0.09 LY) and $14.4M/$0.39 for the year (vs $16.0M/$0.47 LY), fixed base cash rents fell ~$1.9M in the quarter (~$19.8M FY) while participation rents rose ~$9.3M Q (~$10.6M FY), net crop profit from direct‑operated farms was ~$2.6M, and termination‑related revenue totaled ~$4.4M ($2M in Q4); liquidity and capital posture includes ~ $85M of immediately available capital, >$185M of unpledged properties, ~98% of borrowings fixed at a 3.39% weighted average rate for ~2.7 years, ~$17M of scheduled principal in the next 12 months, ~ $160M of loans scheduled to reset (including $135M MetLife repricing Jan‑2027), ~ $50M raised via ATM since Q4 (~$33M this quarter) used largely to redeem Series D (avoiding a coupon step‑up from 5% to 8%), a ~$10M LOC balance at 5.69%, and a declared monthly dividend of $0.0467 (annualized ≈$0.56, ~4.9% yield at $11.51); operationally management expects additional 2025 pistachio proceeds in 2026 (management estimates at least ~$3M from marketing bonuses, citing a $0.50/lb processor bonus), sees ample California water and attractive Article‑21 water pricing (~$50–$80/acre‑ft), anticipates interest expense ~10–15% lower in Q1, and will remain disciplined on acquisitions while considering using future sale proceeds to pay down debt and repurchase higher‑cost preferred stock.Gladstone Land Financial Statement Overview
Summary
Mixed fundamentals: uneven revenue with a 2025 rebound, but profitability deteriorated as net income turned into a 2025 net loss (-$10.5M) and operating cash flow fell sharply ($7.0M vs $29.5M in 2024). Balance sheet leverage improved materially (including zero reported debt in 2025), but returns weakened and financial consistency is a concern.Income Statement
Revenue growth has been uneven: strong gains in 2020–2022, modest in 2023, a decline in 2024, and a rebound in 2025 (+11.98%). Profitability is a key concern—despite consistently high gross profit margins, net income swung from solidly positive in 2023–2024 to a net loss in 2025 (-$10.5M), pushing net margin negative. EBITDA remains sizable, but the earnings volatility and the 2025 loss weigh on overall quality.46
Neutral
Balance Sheet
Leverage improved materially over time, with debt-to-equity declining from 1.63 (2020) to ~0.77–0.80 (2023–2024), and 2025 showing zero reported debt, which strengthens financial flexibility if accurate. Equity is substantial ($670M in 2025) against a $1.24B asset base. The main weakness is returns: return on equity was modestly positive in 2023–2024 but turned negative in 2025 alongside the loss, highlighting that balance-sheet strength isn’t consistently translating into shareholder profitability.60
Neutral
Cash Flow
Cash generation weakened sharply in 2025, with operating cash flow falling to $7.0M from $29.5M in 2024, and free cash flow also only $7.0M. While free cash flow growth appears extremely high in 2025, that’s largely a rebound effect from a low prior base and doesn’t offset the absolute cash flow drop. Historically, operating cash flow generally exceeded net income (2022–2024), but 2025’s cash flow is low while earnings turned negative, signaling reduced cash cushion and higher sensitivity to operating conditions.42
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 76.13M | 85.22M | 90.40M | 89.24M | 75.32M |
| Gross Profit | 66.54M | 79.88M | 86.20M | 86.42M | 72.78M |
| EBITDA | 44.09M | 70.29M | 75.48M | 65.91M | 55.70M |
| Net Income | -10.48M | 13.29M | 14.56M | 4.71M | 3.50M |
Balance Sheet | |||||
| Total Assets | 1.24B | 1.31B | 1.39B | 1.46B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 27.18M | 18.27M | 18.57M | 61.14M | 16.71M |
| Total Debt | 537.91M | 527.52M | 574.11M | 626.50M | 667.98M |
| Total Liabilities | 568.89M | 625.01M | 667.71M | 725.89M | 762.48M |
| Stockholders Equity | 670.29M | 687.18M | 719.61M | 731.36M | 586.82M |
Cash Flow | |||||
| Free Cash Flow | -168.00K | 24.35M | 27.28M | 23.66M | 26.26M |
| Operating Cash Flow | 6.99M | 29.55M | 40.08M | 43.79M | 32.38M |
| Investing Cash Flow | 84.07M | 63.31M | -3.77M | -85.48M | -295.00M |
| Financing Cash Flow | -82.16M | -93.15M | -78.88M | 86.13M | 270.11M |
Gladstone Land Technical Analysis
Positive
12.16
Price Trends
10.15
Positive
9.59
Positive
9.43
Positive
Market Momentum
0.57
Negative
68.81
Neutral
68.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAND, the sentiment is Positive. The current price of 12.16 is above the 20-day moving average (MA) of 11.30, above the 50-day MA of 10.15, and above the 200-day MA of 9.43, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAND.
Gladstone Land Risk Analysis
Gladstone Land disclosed 72 risk factors in its most recent earnings report. Gladstone Land reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Land Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.51B | 13.48 | 6.09% | 13.07% | -11.22% | -24.64% | |
71 Outperform | $7.59B | 26.86 | 7.75% | 4.02% | 9.62% | 31.08% | |
68 Neutral | $2.90B | 27.26 | 5.45% | 5.33% | 6.98% | 465.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $503.89M | -42.22 | 1.99% | 6.36% | -23.25% | -51.02% | |
51 Neutral | $405.92M | -6.07 | -16.39% | 2.20% | 1.08% | 14.30% |
* Real Estate Sector Average
LAND
Gladstone Land
12.16
1.46
13.61%
STAG
Stag Industrial
39.73
4.72
13.47%
LXP
LXP Industrial Trust
49.09
6.00
13.93%
IIPR
Innovative Industrial Properties
53.68
-9.65
-15.24%
ILPT
Industrial Logistics Properties
6.09
2.28
59.84%
Gladstone Land Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Gladstone Land Redeeming and Delisting Series D Preferred
Neutral
Jan 6, 2026
On January 6, 2026, Gladstone Land Corporation announced it would redeem all outstanding shares of its 5.00% Series D Cumulative Term Preferred Stock at a redemption price of $25.100695 per share, including accrued and unpaid dividends through but excluding January 30, 2026, which has been set as the redemption date. Following the redemption, the Series D preferred shares will cease to be outstanding, all associated rights will terminate other than the right to receive the redemption payment, and the issue will be delisted from trading on the Nasdaq Global Market, marking a clean exit of this preferred series from the company’s capital structure and affecting holders who will be cashed out of the security.
The most recent analyst rating on (LAND) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Gladstone Land stock, see the LAND Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.