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Gladstone Land (LAND)
NASDAQ:LAND
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Gladstone Land (LAND) AI Stock Analysis

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LAND

Gladstone Land

(NASDAQ:LAND)

Rating:56Neutral
Price Target:
$9.00
▼(-2.17% Downside)
Gladstone Land's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and cash flow issues. The technical analysis indicates a bearish trend, further weighing on the score. While the valuation is affected by recent losses, the high dividend yield offers some appeal. The earnings call provided a mixed outlook with both challenges and strategic strengths. The share repurchase program is a positive corporate event, slightly boosting the overall score.
Positive Factors
Liquidity and Investment Potential
LAND has $150M in dry powder if conditions improve, showing a potential for future investment and growth.
Liquidity Position
The company is in a positive liquidity position with $180 million consisting $38 million in cash and ~$150 million available under the line of credit and notes.
Negative Factors
Financial Performance
The core funds from operations (CFFO) did not cover the dividend in 1Q25, indicating financial strain.
Tariff Impact
Most of the underperforming properties are farms for pistachios and almonds, which could be negatively affected by tariffs.
Underperforming Assets
There are still 10 underperforming farms after the sale of seven farms in 1Q25, which poses a challenge for the company.

Gladstone Land (LAND) vs. SPDR S&P 500 ETF (SPY)

Gladstone Land Business Overview & Revenue Model

Company DescriptionGladstone Land Corporation (LAND) is a real estate investment trust (REIT) that specializes in acquiring, owning, and leasing farmland in the United States. The company focuses on agricultural properties primarily used for the cultivation of fresh produce, nuts, and other crops. Gladstone Land aims to provide investors with a reliable income stream and capital appreciation through its investment in high-quality farmland and diversified agricultural operations.
How the Company Makes MoneyGladstone Land generates revenue primarily through long-term leases with farmers who cultivate crops on its owned farmland. The company receives rental income from these leases, which are typically structured to provide stable cash flow. Additionally, the company may benefit from the appreciation of its agricultural properties over time, contributing to overall asset value growth. Gladstone Land also engages in strategic acquisitions of high-quality farmland, which can enhance its revenue base and attract more tenants. The company may enter into partnerships with agricultural operators or investors to expand its footprint and leverage expertise in the agricultural sector, further enhancing its revenue potential.

Gladstone Land Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook for Gladstone Land Corporation. While there are strong water management practices, crop insurance coverage, and improvements in the almond market, the company faces financial challenges with net losses, lease modifications, and market pressures on crop prices. The liquidity position remains robust, but the company's financial performance is currently strained.
Q2-2025 Updates
Positive Updates
Water Security and Management
Gladstone Land Corporation has 55,000 acre-feet of water stored in aquifers, providing a strong water security for its farms, particularly in California. They have improved delivery and storage infrastructure, enabling them to navigate water scarcity and Sigma regulations effectively.
Positive Crop Insurance Impact
The company has secured high levels of crop insurance on eight of its farms, providing a safety net against natural disasters and ensuring income even in adverse weather conditions.
Improvements in Almond Market
Recent weeks have shown positive trends in the almond market, with prices rising by 5% to 8%. The harvest season has started, indicating potential for increased revenue.
Strong Liquidity Position
Gladstone Land Corporation has over $150 million of available capital and $170 million of unpledged properties, ensuring financial flexibility. Their borrowings are 99% at fixed rates, protecting against rising interest rates.
Negative Updates
Net Loss and Negative Adjusted FFO
The company reported a net loss of $7.9 million and a net loss to common shareholders of $13.9 million. Adjusted FFO was negative $3.4 million, down from positive $3.7 million in the previous year.
Challenges with Lease Modifications
Recent changes to lease structures have led to reduced fixed base cash rents by $6.8 million and increased reliance on crop share components, impacting revenue recognition and causing financial uncertainty.
Decline in Participation Rents
Participation rents declined due to accelerated revenue recognition in the previous year and a shift from fixed base rents to participation rents, creating a revenue gap until the fourth quarter.
Market Pressures on Crop Prices
Trade negotiations and supply-demand dynamics have put pressure on markets for key crops such as almonds and wine grapes, leading to price volatility and impacting profitability.
Company Guidance
In the recent earnings call for Gladstone Land Corporation, key metrics and financial insights were discussed by the management team. The company reported a net loss of $13.9 million to common shareholders, translating to a loss of $0.38 per share for the second quarter. Adjusted Funds From Operations (AFFO) was negative $3.4 million or $0.10 per share, a decline from the positive $3.7 million or $0.10 per share seen in the same quarter of the previous year. The company has maintained its monthly dividend at $0.0467 per share, representing a 6.1% annualized yield based on the current stock price. Significant changes in lease structures have led to reduced fixed base cash rents by $6.8 million year-over-year, with participation rents expected to provide revenue primarily in the fourth quarter. Additionally, the company has invested around $25 million into operating eight properties with crop insurance covering costs, and they have over $150 million in available capital with a focus on maintaining strong liquidity amidst ongoing financial adjustments.

Gladstone Land Financial Statement Overview

Summary
Gladstone Land's financial performance is stable with strong gross profit margins and healthy cash flow management. However, declining revenue growth and modest net profit margins slightly dampen the overall financial outlook.
Income Statement
65
Positive
Gladstone Land's income statement reveals a mixed performance. The gross profit margin is strong, indicating efficient cost management. However, the revenue growth rate has been declining, and the net profit margin, while positive, reflects a modest profitability. The EBIT and EBITDA margins are healthy, suggesting good operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a stable financial position with a reasonable equity ratio. The debt-to-equity ratio is moderate, indicating balanced leverage. Return on equity is positive, demonstrating effective use of equity to generate profits. Overall, the balance sheet reflects a stable financial structure with manageable debt levels.
Cash Flow
75
Positive
Cash flow analysis shows that operating cash flow is consistently positive, which is a strong indicator of the company's ability to generate cash from its operations. Free cash flow growth is present, and the ratios of operating and free cash flow to net income are favorable, indicating healthy cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue72.77M85.22M90.40M89.24M75.32M57.03M
Gross Profit67.16M79.88M77.59M86.42M39.27M55.18M
EBITDA63.05M70.29M70.64M69.58M58.89M44.09M
Net Income7.78M13.29M14.56M4.71M3.50M4.93M
Balance Sheet
Total Assets1.26B1.31B1.39B1.46B1.35B1.07B
Cash, Cash Equivalents and Short-Term Investments30.48M18.27M18.57M61.14M16.71M9.22M
Total Debt496.38M527.52M574.11M626.50M667.98M624.06M
Total Liabilities588.51M625.01M667.71M725.89M762.48M683.50M
Stockholders Equity670.07M687.18M719.61M731.36M586.82M383.79M
Cash Flow
Free Cash Flow11.14M24.35M27.28M23.66M26.26M8.49M
Operating Cash Flow18.63M29.55M40.08M43.79M32.38M25.00M
Investing Cash Flow59.02M63.31M-3.77M-85.48M-295.00M-272.90M
Financing Cash Flow-96.93M-93.15M-78.88M86.13M270.11M243.43M

Gladstone Land Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price9.20
Price Trends
50DMA
9.69
Negative
100DMA
9.61
Negative
200DMA
10.19
Negative
Market Momentum
MACD
-0.15
Negative
RSI
49.39
Neutral
STOCH
82.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAND, the sentiment is Neutral. The current price of 9.2 is above the 20-day moving average (MA) of 8.96, below the 50-day MA of 9.69, and below the 200-day MA of 10.19, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$966.20M7.4425.64%4.38%-3.63%436.37%
75
Outperform
$1.54B11.887.04%13.50%-7.80%-18.78%
69
Neutral
$2.63B32.094.15%5.89%6.64%210.89%
56
Neutral
$328.92M1.13%6.09%-18.73%-146.45%
54
Neutral
$391.38M-16.16%1.32%0.36%11.92%
53
Neutral
$1.21B2.63-5.63%5.88%-2.36%-88.31%
48
Neutral
$4.22B-1.67%6.19%-1.98%80.67%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LAND
Gladstone Land
9.20
-3.68
-28.57%
LXP
LXP Industrial Trust
9.08
-0.66
-6.78%
IIPR
Innovative Industrial Properties
56.30
-55.39
-49.59%
PLYM
Plymouth Industrial Reit
21.98
-0.71
-3.13%
ILPT
Industrial Logistics Properties
6.04
1.18
24.28%
COLD
Americold Realty
14.55
-13.24
-47.64%

Gladstone Land Corporate Events

Stock BuybackBusiness Operations and Strategy
Gladstone Land Announces Share Repurchase Program
Positive
Jul 11, 2025

On July 11, 2025, Gladstone Land Corporation announced a share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $20 million of its Series B Cumulative Redeemable Preferred Stock and up to $35 million of its Series C Cumulative Redeemable Preferred Stock. This program, set to expire on July 10, 2026, is part of a strategic capital allocation plan aimed at leveraging current market conditions to benefit shareholders. The repurchases will be conducted through open market transactions or privately negotiated deals, with the flexibility to suspend or discontinue the program at any time.

The most recent analyst rating on (LAND) stock is a Buy with a $16.00 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.Date of analysis: Aug 14, 2025