Gladstone Land Corporation

For Q2 2026, Gladstone Land reported a net loss of about $8.5 million and a net loss to common shareholders of $13.5 million, or $0.32 per share. Adjusted FFO was negative $1.6 million, or negative $0.04 per share, versus negative $3.5 million, or negative $0.10 per share in the same quarter last year. Year over year, fixed base cash rents increased by about $900,000, participation rents increased slightly, and direct farming operations generated a net profit of about $590,000. On the balance sheet, the company said it has about $125 million of immediately available capital, about $110 million of unpledged properties, and over 95% of borrowings are fixed at a weighted average interest rate of 3.45% for an average of another 2.3 years. Looking ahead, management kept the monthly dividend flat at $0.0467 per share for Q3 2026, which it said equates to a 6.8% annualized yield at the current stock price of $8.21. Management did not provide formal revenue or EPS guidance, but said it expects higher participation rents and meaningful additional revenues from the 2025 almond and pistachio harvest to be recognized in Q4, with most of the related revenues and earnings again recognized during the fourth quarter.

David Gladstone said the company is staying disciplined on acquisitions and will wait to grow the portfolio again until interest rates come down. He emphasized the ongoing shift toward more crop-share and operationally involved structures on some permanent crop farms, while noting crop insurance helps limit downside risk. He also said the company may sell additional farms, use proceeds to pay down debt and buy back preferred stock, and continue to review the portfolio actively.

Lewis Parrish said the company did not add new borrowings or repay loans during the quarter, but after quarter end it repaid a $3 million mortgage tied to the Florida property sale. He said adding unencumbered properties to credit facilities increased immediately available capital by about $50 million, while $14 million of common stock issued through the ATM at an average cost of capital of about 5.5% was used to repay the line of credit and fund preferred repurchases. Since April 1, the company repurchased $13 million of preferred stock at an average repurchase yield of 7.2%, generating about $1.1 million of gain. He also pointed to lower interest costs as a driver of improved AFFO and said roughly $33 million of debt matures in the next 12 months, which management does not expect to be a refinancing problem.

Analysts focused on how much participation rent could be generated in the second half, and management said it expects higher amounts but would not provide a final range because pistachio pricing and yields are still uncertain. On fixed revenue, management disclosed one nonrecurring cash payment of about $700,000 from a tenant kept on nonaccrual status, and said it should not yet be assumed to recur. Analysts also asked about the impairment charge on four Arizona farms; management said the land was marked down to a sale price tied to a PSA signed after quarter end and expects the transaction to close in late Q3 or early Q4. In follow-ups, management said the next six months of lease expirations total about 3.5% of annualized rent and are expected to renew on similar terms, while vacant farms could contribute about $1.5 million annually if the three closest deals are completed.