Gladstone Land Corporation · NASDAQ:LAND
Gladstone Land — IPO Roadshow (June 2020)
31 slides from Gladstone Land's IPO roadshow presentation, Jun 29, 2020
Slide 1: A Farmland Real Estate Investment Trust: $500,000,000 Series C Preferred Stock Offering
Filed pursuant to Rule 433 Registration Statement No. 333-236943 A Farmland Real Estate Investment Trust $500,000,000 Series C Cumulative Redeemable Preferred Stock Oering AS OF FEBRUARY 19, 2020Filed pursuant to Rule 433 Registration Statement No. 333-236943 A Farmland Real Estate Investment Trust
Slide 2: Legal Disclaimers
Legal Disclaimers ESTIMATES This presentation contains industry and market data, forecasts, and projections that are based on internal data and estimates, independent industry publications, reports by market research firms, or other published independent sources. We believe these data to be reliable
Slide 3: Risk Factors
Risk Factors Please consult the prospectus supplement for this oering for a recitation of the risk factors of this oering. If any of the risks contained in or incorporated by reference into the prospectus supplement or the accompanying prospectus develop into actual events, our business, financial co
Slide 4: Risk Factors (cont.)
Risk Factors (cont.) > Holders of the Shares will be subject to inflation risk. > If the properties we acquire or invest in do not produce the cash flow that we expect in order to meet our REIT minimum > An investment in the Shares bears interest rate risk. distribution requirement, we may decide to b
Slide 5: Offering Summary
Oering Summary OFFERING LIQUIDITY OPTIONS Up to $500 million Series C Preferred Stock oering Redeemable at $22.50 per share throughout the oering of a public REIT > 10% discount to the Liquidation Preference of $25 per share > Up to an additional $150 million Series C Preferred > Our obligation to r
Slide 6: Investment Features
DIVERSIFIED PORTFOLIO TRANSPARENCY The Company owns a portfolio of 113 The Company went public in 2013 and farms with approximately 88,000 acres has been in business since 1997 across ten states valued at approximately $885 million, as of > Common stock is listed on Nasdaq February 19, 2019 under “L
Slide 7: Gladstone Land Overview
Gladstone Land Overview Owns farmland and farm-related Currently owns 113 farms with facilities leased to high-quality 87,860 total acres in 10 states, farmers, primarily on a triple-net valued at approximately $885 basis, meaning the farmer pays rent, million. Our acreage is currently insurance, ma
Slide 8: Three Areas of Farming
Three Areas of Farming PRIMARY FOCUS | ANNUAL FRESH PRODUCE SECONDARY FOCUS | PERMANENT CROPS TERTIARY FOCUS | GRAINS & OTHER CROPS We believe that farmland growing fresh produce (e.g., fruits and vegetables) and permanent crops (e.g., nuts and blueberries) is a superior investment over land growing
Slide 9: U.S. Farmland: Decreasing Supply, Increasing Demand
U.S. Farmland: Decreasing Supply, Increasing Demand As available farmland to feed the world’s growing population continues to decline, U.S. cropland has steadily appreciated in value . Further, we believe the amount of available farmland in the U.S. will continue to decrease. > Every year, large amo
Slide 10: Farmland Market Opportunity
Farmland Market Opportunity ANNUAL FRESH PRODUCE | PRIMARY FOCUS SHORT-LIVED ROW CROPS GENERALLY PLANTED ANNUALLY Beans, blackberries, cabbage, cantaloupe, celery, lettuce, melons, peas, peppers, radicchio, raspberries, strawberries, sweet corn, tomatoes, and other leaf pr oduce 3,000 $15 BILLION $
Slide 11: Investment Focus
Investment Focus WE FOCUS ON ACQUIRING HIGH-VALUE FARMLAND THAT WE BELIEVE WILL GENERATE ABOVE-AVERAGE REVENUES AND PROFITS Adequate & clean water supply with Excellent weather combined with Locations in established rental fertile soil that is rich in nutrients long growing seasons that provide mark
Slide 12: Investment Focus: Fresh Produce is our Primary Focus
Investment Focus Fresh Produce is our Primary Focus WE BELIEVE FRESH PRODUCE HAS LOWER RISKS While we invest in farmland growing THAN COMMODITY CROPS a variety of crop types, our primary focus is farmland growing fresh WATER ACCESS produce . Commodity crops usually depend solely on rain for water, w
Slide 13: Investment Focus: Farmland and Farm-Related Facilities Leased
Investment Focus WE SEEK TO ACQUIRE HIGH-VALUE FARMLAND AND FARM-RELATED FACILITIES THAT WE LEASE TO CORPORATE AND INDEPENDENT FARMERS, PRIMARILY ON A TRIPLE-NET LEASE BASIS PROPERTY TYPES TRANSACTION SIZES High-value cropland with on-site water sources $2M to $50M+ LOCATIONS LEASE TERMS Regions wit
Slide 14: Geographic Focus & Diversity
Geographic Focus & Diversity Number of farms owned in a growing region 2 1 1 Areas of geographic focus Gladstone Land oce locations 15 2 1 6 2 1 TOTAL # OF # OF 3 STATE ACRES FARMS PARCELS 11 19 3 CO 32,773 12 88 7 7 FL 20,770 23 113 2 1 CA 14,829 42 121 NE 7,104 8 27 4 AZ 6,280 6 23 2 TX 3,667 1 8
Slide 15: Selected Properties
Selected Properties PALM CITY, FLORIDA OXNARD, CALIFORNIA WATSONVILLE, CALIFORNIA Snap Peas Strawberries Raspberries COALINGA, CALIFORNIA ARVIN, CALIFORNIA OKEECHOBEE, FLORIDA Pistachios Almond Trees Cabbage 15Selected Properties PALM CITY, FLORIDA OXNARD, CALIFORNIA WATSONVILLE, CALIFORNIA Snap Pea
Slide 16: Underwriting Process
Underwriting Process DUAL-FOCUSED UNDERWRITING PROCESS FOR EACH NEW INVESTMENT, LEVERAGING OUR MANAGEMENT TEAM’S EXTENSIVE EXPERIENCE IN CREDIT UNDERWRITING AND KNOWLEDGE OF FARMLAND DUE DILIGENCE ON THE FARM DUE DILIGENCE ON THE TENANT Appraisal on each property by an Detailed underwriting of the f
Slide 17: Growth Opportunity
Growth Opportunity 14% Institutional Ownership U.S. FARM OWNERSHIP: 1 A FRAGMENTED INDUSTRY 2 Total U.S. farmland value is approximately $2.4 trillion Approximately 62% of U.S. farm operators are over 55 86% Family Ownership 1 years of age, and the average age is 58 years old 40% of all U.S. farm ac
Slide 18: Company Performance – Portfolio Growth
Total Acreage Company Performance – Portfolio Growth SINCE OUR IPO OF COMMON STOCK IN 2013, WE HAVE PURCHASED OVER $807 MILLION OF NEW FARM ASSETS LAND PORTFOLIO GROWTH $1,000,000 100,000 $900,000 90,000 $800,000 80,000 $700,000 70,000 $600,000 60,000 $500,000 50,000 $400,000 40,000 $300,000 30,000
Slide 19: Company Performance – Earnings Growth
AFFO per Weighted Average Share Company Performance – Earnings Growth CONSISTENT UPWARD TREND IN REVENUE SINCE OUR IPO (LEASE REVENUE HAS GROWN BY A 1 MULTIPLE OF 10.1X) AND INCREASES IN COMMON ADJUSTED FUNDS FROM OPERATIONS (AFFO) LAND EARNINGS GROWTH $0.60 $45,000 $40,000 $0.50 $35,000 $0.40 $30,0
Slide 20: Valuation of Farms
Valuation of Farms While most REITs do not disclose the fair value of their properties, we provide updated valuations of our farms in our quarterly filings with the SEC to show the estimated fair value of our farmland portfolio At least once every three years, we will have each of our farms appraised
Slide 21: Consistent Portfolio with Steady Rental Growth
Consistent Portfolio with Steady Rental Growth We believe the quality of our farmland portfolio allows us to maintain 1 CONSISTENT OCCUPANCY LEVELS consistent occupancy Wtd-avg of 99.8%, and Lowest Wtd-avg of 99.5% levels and rental rates. We 100% 100% 99.9% 99.9% 99.7% 99.5% 99.5% further believe t
Slide 22: Capital Structure Overview
Capital Structure Overview 1 CURRENT CAPITAL STRUCTURE CAPITAL STRUCTURE DETAILS @ 12/31/2019 (AS OF 12/31/2019) WTD-AVG $1,000,000 DOLLARS IN 000s, WTD-AVG TERM WTD-AVG FIXED PRICE 2 EXCEPT STOCK PRICE TO MATURITY (YRS) RATE TERM (YRS) VALUE Variable-rate Debt $900,000 0.0% Lines of credit 4.3 L +
Slide 23: Gladstone Land | Executive Management
Gladstone Land | Executive Management DAVID GLADSTONE | CHAIRMAN & CEO JAY BECKHORN | TREASURER > Chairman and CEO since inception > Treasurer since January 2015 > Former owner of Coastal Berry, one of the largest > Former Senior Vice President with Sunrise Senior strawberry farm operations in CA (1
Slide 24: Gladstone Land | Deal Team
Gladstone Land | Deal Team BILL HUGHES | MANAGING DIRECTOR (MIDWEST) BILL FRISBIE | MANAGING DIRECTOR (EAST COAST) > Fourth-generation farmer focused on the Midwest > Joined Gladstone Management in 2006; helped take Gladstone Land public in 2013 > 14 years of experience in agricultural investing wit
Slide 25: Why Invest in Gladstone Land
GOAL TO PROVIDE CASH RETURNS ACQUISITION FLEXIBILITY Our goal is a cash distribution rate per share of $0.125 per month, or $1.50 per year and is paid Can pay cash or oer tax-free exchanges with in preference to the common stock distributions units of our operating partnership There is no guarantee
Slide 26: Appendix
Appendix 26Appendix 26
Slide 27: Adjusted Funds from Operations (AFFO)
Adjusted Funds from Operations (AFFO) FUNDS FROM OPERATIONS (FFO) The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historical
Slide 28: AFFO (cont.)
AFFO (cont.) A reconciliation of AFFO to its most directly-comparable GAAP measure, net income (loss), for the most recently-completed period is presented below: For the Years Ended (Dollars in thousands, except per-share data) 12/31/2019 12/31/2018 (Unaudited) Net income $1,762 $2,766 Less: Dividen
Slide 29: Net Asset Value (NAV)
Net Asset Value (NAV) NET ASSET VALUE (NAV) Pursuant to a valuation policy approved by our board of directors, our valuation team, with oversight from the chief valuation ocer, provides recommendations of value for our properties to our board of directors, who then review and approve the fair values
Slide 30: NAV (cont.)
NAV (cont.) A reconciliation of NAV to total equity, which the Company believes is the most directly-comparable GAAP measure, is provided below: As of 12/31/2019 (Dollars in thousands, except per-share data) (Unaudited) Total equity per balance sheet $278,970 Fair value adjustment for long-term asse
Slide 31: Gladstone Land
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