NasdaqGM:LAND

Stock Analysis Report

Executive Summary

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S., which it leases to unrelated third-party farmers.

Rewards

Revenue is forecast to grow 18.38% per year

Risk Analysis

Earnings are forecast to decline by an average of -19% per year for the next 3 years

Dividend of 3.83% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Second-rate dividend payer and overvalued.

Share Price & News

How has Gladstone Land's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

LAND

3.0%

US REITs

1.5%

US Market


1 Year Return

12.1%

LAND

16.2%

US REITs

20.1%

US Market

Return vs Industry: LAND underperformed the US REITs industry which returned 16.2% over the past year.

Return vs Market: LAND underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

LANDIndustryMarket
7 Day3.2%3.0%1.5%
30 Day4.2%4.5%1.4%
90 Day14.9%6.1%8.7%
1 Year17.1%12.1%20.9%16.2%22.7%20.1%
3 Year29.5%14.3%40.7%23.1%50.1%40.5%
5 Year60.8%28.9%57.9%25.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is Gladstone Land's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gladstone Land undervalued compared to its fair value and its price relative to the market?

1.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LAND ($14) is trading above our estimate of fair value ($13.19)

Significantly Below Fair Value: LAND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAND is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: LAND is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LAND's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LAND is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Gladstone Land forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAND is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LAND is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LAND is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LAND's revenue (18.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LAND's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LAND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gladstone Land performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAND is currently unprofitable.

Growing Profit Margin: LAND is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAND is unprofitable, but has reduced losses over the past 5 years at a rate of 18% per year.

Accelerating Growth: Unable to compare LAND's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LAND is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.9%).


Return on Equity

High ROE: LAND has a negative Return on Equity (-0.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gladstone Land's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LAND has a high level of physical assets or inventory.

Debt Coverage by Assets: LAND's debt is not covered by short term assets (assets are 0x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LAND has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LAND has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: LAND's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LAND has a sufficient allowance for bad loans.

Low Risk Liabilities: LAND reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LAND has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LAND has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LAND has an appropriate level of bad loans.


Next Steps

Dividend

What is Gladstone Land's current dividend yield, its reliability and sustainability?

3.83%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: LAND's dividend (3.83%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: LAND's dividend (3.83%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: LAND has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LAND's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.6%), LAND's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LAND's dividends in 3 years are forecast to be thoroughly covered by earnings (4.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

David Gladstone (77yo)

23.1yrs

Tenure

US$57,750

Compensation

Mr. David John Gladstone is the Founder of The Gladstone Companies and has been its Chief Executive Officer and Chairman since inception in 2003. Mr. Gladstone founded Gladstone Commercial Corporation in 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Lewis Parrish
CFO & Assistant Treasurer5.6yrsUS$71.90k0.014% $42.6k
David Gladstone
Founder23.1yrsUS$57.75k12.01% $35.7m
Terry Brubaker
Vice Chairman & COO13.1yrsno datano data
Karin McLaughlin
Investor Relations Specialist0yrsno datano data
John Dellafiora
Chief Compliance Officer7.3yrsno datano data
Michael LiCalsi
General Counsel & Secretary10.3yrsno datano data
William Reiman
Managing Director6.5yrsno datano data
Jennifer Smith
Chief Valuation Officer0yrsno datano data
Jay Beckhorn
Treasurer5.1yrsno datano data
Erich Hellmold
Assistant General Counsel0yrsno datano data

7.3yrs

Average Tenure

57yo

Average Age

Experienced Management: LAND's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Gladstone
Founder23.1yrsUS$57.75k12.01% $35.7m
Terry Brubaker
Vice Chairman & COO13.1yrsno datano data
Walter Wilkinson
Independent Director5.3yrsno data0.049% $144.7k
Michela English
Independent Director7.1yrsno data0.0059% $17.4k
Anthony Parker
Independent Director7.1yrsno data0.028% $82.5k
Paul Adelgren
Lead Director0yrsno data0.058% $171.7k
John Outland
Independent Director7.1yrsno data0.0088% $26.2k
Caren Merrick
Independent Director5.3yrsno data0.021% $62.9k

7.1yrs

Average Tenure

74yo

Average Age

Experienced Board: LAND's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.


Top Shareholders

Company Information

Gladstone Land Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gladstone Land Corporation
  • Ticker: LAND
  • Exchange: NasdaqGM
  • Founded: 1997
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$297.149m
  • Market Cap: US$293.113m
  • Shares outstanding: 21.22m
  • Website: https://www.gladstonefarms.com

Location

  • Gladstone Land Corporation
  • 1521 Westbranch Drive
  • Suite 100
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LANDNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2013
3L4BST (Boerse-Stuttgart)YesCommon StockDEEURJan 2013
LAND.PNasdaqGM (Nasdaq Global Market)RED PFD SER AUSUSDAug 2016

Biography

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S., which it leases to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farms on a quarterly basis, currently owns 103 farms, comprised of approximately 87,000 acres in 10 different states, valued at approximately $876 million. The farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, figs, olives, pistachios, and other orchards, as well as groves of blueberries and vineyards, which are generally planted every 10 to 20-plus years and harvested annually. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. The Company pays monthly distributions to its stockholders and has paid 81 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 16 times over the prior 58 months, and the current per-share distribution on its common stock is $0.0446 per month, or $0.5352 per year. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:22
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.