Business
Gladstone Land Announces Second Quarter 2020 Results
Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision.
About this update from Gladstone Land Corporation
[{"type":"text","content":"Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision.\n MCLEAN, Va., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq: LAND) (“Gladstone Land” or the “Company”) today reported financial results for the second quarter ended June 30, 2020. A description of funds from operations (“FFO”), core FFO (“CFFO”), adjusted FFO (“AFFO”), and net asset value (“NAV”), all non-GAAP (generally accepted accounting principles in the United States) financial measures, is located at the end of this press release. All per-share references are to fully-diluted, weighted-average shares of the Company’s common stock unless noted otherwise. For further detail, please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the “Form 10-Q”), which is available on the Investor Relations section of the Company’s website at www.GladstoneFarms.com. Second Quarter 2020 Activity: Portfolio Activity:◦ Property Acquisitions: Acquired two new farms, consisting of 1,268 total acres, for approximately $17.7 million and paid additional compensation of approximately $3.2 million related to a farm acquired during August 2019 due to additional acreage being approved by the respective county for additional vineyard plantings. On a weighted-average basis, the initial, minimum net capitalization rate on these acquisitions is 6.2%; however, the leases on these farms contains certain provisions (e.g., annual rent escalations) that are expected to drive cash rents higher in future years.◦ Leasing Activity: Renewed the lease on one of our farms located in California for an additional eight years, which is expected to result in an increase in annual net operating income of approximately $161,000, or 26.6%, over that of the prior lease.Financing Activity—New Long-term Borrowings: Secured a total of approximately $16.3 million of new, long-term borrowings from three different lenders at an expected weighted-average effective interest rate of 2.81%. On a weighted-average basis, these rates are fixed for the next 9.2 years.Equity Activity:◦ Series C Preferred Stock: Sold 130,702 shares of our 6.00% Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”) for net proceeds of approximately $3.0 million.◦ Common...