Gladstone Land Q3 revenue down due to lease changes

Overview

• Gladstone Land Q3 operating revenues fell 21.2% yr/yr due to lease modifications

• Net income for Q3 was $2.1 mln, compared to $6,000 last year

• Adjusted FFO for Q3 decreased 68.8% yr/yr

Outlook

• Gladstone Land expects majority of 2025 revenue to be recognized in Q4 due to lease changes

• Company anticipates favorable pistachio and almond market trends with pricing up 15% and 24%

• Gladstone Land may sell farms if satisfactory lease terms are not reached

Result Drivers

• LEASE MODIFICATIONS - Shift from fixed base rents to participation rents delayed revenue recognition, affecting Q3 results

• FARM SALES - Sale of two farms in Florida resulted in a net gain, contributing positively to financial results

• VACANCY CHALLENGES - Ongoing vacancy and tenancy issues reduced cash lease revenues, impacting financial performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Gladstone Land Corp is $10.00, about 8.9% above its November 4 closing price of $9.11

Press Release: ID:nACS77dVla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)