Gladstone Land Corporation’s David Gladstone Details Company's Latest Financial Report
MCLEAN, VA - Despite inflation and rising interest rates, Gladstone Land Corporation is reporting gains with the release of its second quarter results for the period ending June 30, 2023. Although numbers were slightly down from last year, the company recorded $7.9 million in net income for the quarter, up from $613,000 the year prior.
“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, which we think we will have resolved within the next few months. Our balance sheet remains strong, with nearly 100 percent of our borrowings at fixed rates, significantly limiting the impact of increased interest rates,” said David Gladstone, President and Chief Executive Officer. “However, high interest rates continue to impact our ability to buy new farms. Costs to finance new acquisitions have continued to increase, but farm owners have not yet reduced the price at which they are willing to sell their farms. Given the continued high farmland prices, it has become more challenging to find acquisitions that yield enough to cover our rising cost of capital. However, as the saying goes, ‘if something cannot go on forever, it will stop.’”
In addition to a rise in net income from the same quarter last year, Gladstone also reported an increased net income to common stockholders during the quarter. According to a release, it was approximately $1.7 million, or $0.05 per share, compared to a net loss to common stockholders of approximately $3.9 million, or $0.11 per share, in the prior-year quarter.
Portfolio activity for the company during the second quarter includes:
- Property Disposition: Sold a 138-acre parcel of unfarmed land in Florida for $9.6 million, which, after accounting for closing costs, resulted in a return on investment of 343 percent and a net gain of approximately $6.4 million
- Lease Activity: Executed 12 new or amended lease agreements on farms in five different states that are expected to result in an aggregate decrease in annual net operating income of approximately $503,000 from the prior leases
To read more of Gladstone’s results, click here.
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