Business
Gladstone Land Announces Second Quarter 2023 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
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.MCLEAN, VA / ACCESSWIRE / August 7, 2023 / Gladstone Land Corporation (Nasdaq:LAND) (\"Gladstone Land\" or the \"Company\") today reported financial results for the second quarter ended June 30, 2023. 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, appear 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 (the \"Form 10-Q\"), which is available on the Investors section of the Company's website at www.GladstoneLand.com.Second Quarter 2023 Activity:Portfolio Activity: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% and a net gain of approximately $6.4 million. We still own and lease the remaining acreage of this farm.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. This includes four new leases we executed on farms in Michigan to replace the prior tenant, who had been placed on non-accrual status. Excluding the four Michigan leases, the remaining lease renewals are expected to result in an annual increase in annual net operating income of approximately $175,000, or 2.7%, over the prior leases.Self-operated and Non-accrual Properties: As of and during the quarter ended June 30, 2023, we had one farm that was self-operated (via a management agreement with an unrelated third-party). In addition, during a portion of the quarter ended June 30, 2023, we recognized revenues from leases with three different tenants on a cash basis (rather than on a straight-line basis) due to credit issues with such tenants. During the quarter ended June 30, 2023, we replaced one tenant by executing new lease agreements with a new tenant, and we re...