LAND Stock Overview
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.
Gladstone Land Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$26.10|
|52 Week High||US$42.10|
|52 Week Low||US$21.23|
|1 Month Change||9.94%|
|3 Month Change||1.01%|
|1 Year Change||10.64%|
|3 Year Change||124.61%|
|5 Year Change||94.78%|
|Change since IPO||74.00%|
Recent News & Updates
Gladstone Land: Growth Slowing, Debt Load Rising
Gladstone Land (LAND) is a REIT that buys farmland and rents it out to corporations and independent farmers, often the very farmers they bought the land from. Farmland REITs have outperformed the REIT average this year, but Gladstone Land has lagged, despite a hot first quarter. Gladstone's debt is now straining its earnings, leaving the company dependent on share issuance to pay off notes and maintain dividends. This article examines growth, balance sheet, dividend, and valuation metrics for this small-cap. There are only two Farmland REITs, and they are still very small, but together they have outperformed the REIT average thus far this year, losing just -0.21%, compared to the equity REIT index of -15.40%. Hoya Capital Income Builder However, Gladstone (LAND) has badly lagged its farmland REIT competitor Farmland Partners (FPI). FPI has been a stellar investment, with a total return of +21.51% YTD (year to date), compared to Gladstone Land, their mirror image at -21.77%. LAND data by YCharts What makes Gladstone tick, and what does the future hold for this small-cap REIT? This article examines growth, balance sheet, dividend, and valuation metrics, to shed light on the path ahead. Meet the company Gladstone Land Founded in 1997, Gladstone Land went public as a REIT in 2012. David Gladstone has been chairman and CEO since the company's inception. LAND buys well-watered, high-value farmland, typically fruit and vegetable producers, orchards, and vineyards, and leases the land to corporate and independent farmers on a triple-net basis. It is the modern version of sharecropping. Sellers can opt to receive shares of LAND instead of cash as payment. Leases range from 3 to 15 years, with options to extend. The weighted average remaining lease term is 6.5 years. Lease expirations average about 7.5% of annual base lease revenue per year for the next 5 years. Company investor presentation Gladstone currently owns 162 farms totaling 113,000 acres, spread across 15 U.S. states. The average farm size is just shy of 700 acres, and the portfolio is leased to 86 different tenants, with occupancy of 100%. States where Gladstone has corporate offices are shown in blue on the map below. Farm clusters are shown as yellow stars. Company investor presentation Geographic Distribution of LAND Assets (Company 10-Q) Gladstone focuses on farmland growing fresh produce (e.g., fruits and vegetables) and certain permanent crops (e.g., blueberries and nuts), because they expect such lands to deliver: higher profitability and rental income, lower price volatility, lower government dependency, and lower storage costs. Also, such ground is typically closer to major urban populations, enhancing development possibilities. Farmland investment makes sense at the most fundamental possible level, as the world population continues to grow, and the supply of arable land continues to shrink. Company investor presentation Company investor presentation Though more volatile than bonds, farmland investing is less volatile than stocks, as measured by the S&P 500, or REITs, according to NCREIF (the National Council of Real Estate Investment Fiduciaries). Company investor presentation Although Gladstone is a Farmland REIT, farmland bears a near-zero correlation with equity REITs over the past 20 years, according to the Center for Farmland Research. However, while farmland itself may be low in volatility, stock in Gladstone Land is not. The historic volatility of LAND stock according to TD Ameritrade is 41.2%, almost double that of the average REIT (24.3)%. Farmland is an asset class of its own, with very low correlations to stocks, bonds, and gold. Company investment presentation With just 164 farms thus far, LAND has barely scratched the total farmland market, as there are about 3,000 top-tier farms in vegetables and produce, and 6,625 top-tier farms in permanent crops, according to the U.S. Department of Agriculture. Thus Gladstone's market penetration is only about 1.7%. Company investment presentation Of the estimated $2.7 trillion worth of U.S. farmland, about 6 out of every 7 acres are still in the hands of families, but 40% of the land is farmed by tenants. Company investor presentation However, tellingly, farming is an old man's game at this point. The average farmer is 58 years old, and over 60% of farmers are over 55. Farmland devoted to fresh produce provides a measure of inflation protection and pricing power, as the annual CPI (Consumer Price Index) of fresh fruits and vegetables has risen faster over the past 40 years than the overall CPI or the CPI for food and beverages as a whole, according to the Bureau of Labor Statistics. Company investor presentation Since Q1 earnings were announced, Gladstone has acquired: a 1,374-acre olive orchard in California at a cost of $24.5 million, and leased it back for 15-years on a triple-net basis to California Olive Ranch, reported to be the largest miller of olives for extra virgin olive oil in the U.S., and 1,300 acres of farmland in Washington and Oregon, for approximately $37.3 million, from Horizon Vineyards, an affiliate of Resource Land. Quarterly results Here are the highlights for Q2 2022, according to the company's 10-Q : Total operating revenue of $20.3 million, up 20% YoY (year-over-year) 1H 2022 operating revenue of $40.2 million, up 22.2% YoY Total operating expenses of $12.2 million, up 28% YoY 34.5 million shares outstanding, up 17.6% YoY NOI (net operating income) of $8.1 million, up 9.9% YoY Net income of just $613 thousand, up from (-$531 thousand) YoY TCFO of $19.4 million, up 14.1 % YoY FFO of $48.2 million, up 24.6% YoY FFO per share of $0.14, up one penny (7.7%) YoY Estimated NAV per share of $15.60 Growth metrics Here are the 3-year growth figures for FFO (funds from operations), TCFO (total cash from operations), and market cap. Metric 2019 2020 2021 2022* 3-year CAGR FFO (millions) $10.41 $14.49 $21.01 $22.82 -- FFO Growth % - 39.2 45.0 8.6 29.90% FFO per share $0.54 $0.65 $0.69 $0.66 -- FFO per share growth % -- 20.4 6.2 (-4.4) 6.92% TCFO (millions) $21.37 $25.00 $32.38 $38.71 -- TCFO Growth % -- 17.0 29.5 19.5 21.90% Market Cap (billions) $0.27 $0.38 $1.15 $0.89 -- Market Cap Growth % -- 40.7 202.6 (-22.6) 48.82% * Estimated, based on figures for H1 2022 Source: TD Ameritrade, CompaniesMarketCap.com, and author calculations Prior to this year, LAND's 3-year growth in FFO, TCFO, and market cap were utterly jaw-dropping, but FFO/share growth, while strong, has not been in the same category. This means the company is issuing an unusually large number of new shares every year. Share count has increased by 17.6% over the past 12 months alone. As we will see below, when we look at Valuation Metrics, they have every incentive to continue doing that. While cash flow continues to grow at a healthy pace, this year's FFO growth has slowed considerably, and FFO/share and market cap are in danger of taking a step backward. Despite its meteoric growth in market share, LAND is still a small-cap, yet to cross the $1.4 billion threshold where it reaches escape velocity. Though too small to qualify as a FROG, Gladstone Land is definitely a Tadpole with legs. Meanwhile, here is how the stock price has done over the past 3 twelve-month periods, compared to the REIT average as represented by the Vanguard Real Estate ETF (VNQ). Metric 2019 2020 2021 2022 3-yr CAGR LAND share price Aug. 8 $11.68 $16.50 $23.78 $26.43 -- LAND share price Gain % -- 41.3 44.1 11.1 31.29% VNQ share price Aug. 8 $90.96 $82.39 $106.91 $98.20 -- VNQ share price Gain % -- (-9.4) 29.8 (-8.1) 2.59% Source: MarketWatch.com and author calculations LAND shares have sold off sharply since April. From a high of $42.10 on April 20, the price plunged to $21.23 on June 16. That's a loss of (-49.6)% in under two months, from which shares have only slightly recovered. Seeking Alpha Premium Despite the sharp sell-off, LAND has easily outpaced the VNQ in each of the past 3 years, and has rewarded investors with an annual average of 31.29% share price growth, compared to just 2.59% for the VNQ. In its 10 years in operation, LAND has grown its holdings approximately 20-fold. Company investor presentation The company's return on equity has been just 0.79% over the past 12 months, however, even while assets have grown 22.15%. Balance sheet metrics Here are the key balance sheet metrics. Company Liquidity Ratio Debt Ratio Debt/EBITDA Bond Rating LAND 1.86 33% N/A -- Source: Hoya Capital Income Builder, TD Ameritrade, and author calculations Gladstone Land has an abysmal 10 times more long debt than EBITDA (1088%), according to Seeking Alpha Premium, so it will be hard for them to make their debt payments without issuing more shares, restricting the dividend, or selling assets.
Gladstone Land acquires vineyards in Washington, Oregon for $37.3M
Gladstone Land (NASDAQ:LAND) said Monday it acquired 1.3K gross acres of farmland in Washington and Oregon, for ~$37.3M from Horizon Vineyards, an affiliate of Resource Land. LAND also assumed several long-term, triple-net vineyard leases with a grower.
Gladstone Land raises dividend 0.4% to $0.0456 dividend
Gladstone Land (NASDAQ:LAND) declares $0.0456/share monthly dividend, 0.4% increase from prior dividend of $0.0454. Payable July 29; for shareholders of record July 22; ex-div July 21. Payable Aug 31; for shareholders of record Aug 23; ex-div Aug 22. Payable Sep 30; for shareholders of record Sep 22; ex-div Sep 21.
|LAND||US REITs||US Market|
Return vs Industry: LAND exceeded the US REITs industry which returned -3.6% over the past year.
Return vs Market: LAND exceeded the US Market which returned -10.2% over the past year.
|LAND Average Weekly Movement||5.8%|
|REITs Industry Average Movement||4.3%|
|Market Average Movement||7.7%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: LAND is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: LAND's weekly volatility (6%) has been stable over the past year.
About the Company
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. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 127 farms, comprised of approximately 94,000 acres in 13 different states, valued at approximately $1.0 billion. Gladstone Land's 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.
Gladstone Land Fundamentals Summary
|LAND fundamental statistics|
Is LAND overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LAND income statement (TTM)|
|Cost of Revenue||US$10.26m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.28|
|Net Profit Margin||-11.74%|
How did LAND perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Does LAND pay a reliable dividends?See LAND dividend history and benchmarks
|Gladstone Land dividend dates|
|Ex Dividend Date||Aug 22 2022|
|Dividend Pay Date||Aug 31 2022|
|Days until Ex dividend||5 days|
|Days until Dividend pay date||14 days|
Does LAND pay a reliable dividends?See LAND dividend history and benchmarks
Is LAND undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LAND?
Other financial metrics that can be useful for relative valuation.
|What is LAND's n/a Ratio?|
Price to Sales Ratio vs Peers
How does LAND's PS Ratio compare to its peers?
|LAND PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
STSF.F SmartStop Self Storage REIT
FPI Farmland Partners
CTT CatchMark Timber Trust
LAND Gladstone Land
Price-To-Sales vs Peers: LAND is expensive based on its Price-To-Sales Ratio (10.9x) compared to the peer average (10x).
Price to Earnings Ratio vs Industry
How does LAND's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Sales vs Industry: LAND is expensive based on its Price-To-Sales Ratio (10.9x) compared to the US REITs industry average (5.9x)
Price to Sales Ratio vs Fair Ratio
What is LAND's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||10.9x|
|Fair PS Ratio||11.4x|
Price-To-Sales vs Fair Ratio: LAND is good value based on its Price-To-Sales Ratio (10.9x) compared to the estimated Fair Price-To-Sales Ratio (11.4x).
Share Price vs Fair Value
What is the Fair Price of LAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LAND ($26.1) is trading below our estimate of fair value ($33.42)
Significantly Below Fair Value: LAND is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Gladstone Land forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (16.8% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: LAND's revenue (16.8% 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
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How has Gladstone Land performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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, and losses have increased over the past 5 years at a rate of 60% 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 (47.9%).
Return on Equity
High ROE: LAND has a negative Return on Equity (0.81%), as it is currently unprofitable.
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How is Gladstone Land's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: LAND's short term assets ($54.7M) exceed its short term liabilities ($17.6M).
Long Term Liabilities: LAND's short term assets ($54.7M) do not cover its long term liabilities ($740.8M).
Debt to Equity History and Analysis
Debt Level: LAND's net debt to equity ratio (102.2%) is considered high.
Reducing Debt: LAND's debt to equity ratio has reduced from 286.7% to 110.6% over the past 5 years.
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: Whilst unprofitable LAND has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: LAND is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.9% per year.
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What is Gladstone Land current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LAND's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: LAND's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.95%).
Stability and Growth of Payments
Stable Dividend: LAND's dividend payments have been volatile in the past 10 years.
Growing Dividend: LAND's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (135.1%), LAND's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (54.3%), LAND's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Gladstone (80 yo)
Mr. David John Gladstone has served as Chief Executive Officer, President and Chairman of the Board of Directors at Gladstone Companies, Inc. since its inception in 2009. He has been the Chief Executive Of...
Experienced Management: LAND's management team is seasoned and experienced (9.4 years average tenure).
Experienced Board: LAND's board of directors are considered experienced (9.6 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.5%.
Gladstone Land Corporation's employee growth, exchange listings and data sources
- Name: Gladstone Land Corporation
- Ticker: LAND
- Exchange: NasdaqGM
- Founded: 1997
- Industry: Specialized REITs
- Sector: Real Estate
- Implied Market Cap: US$900.974m
- Market Cap: US$900.974m
- Shares outstanding: 34.52m
- Website: https://www.gladstonefarms.com
- Gladstone Land Corporation
- 1521 Westbranch Drive
- Suite 100
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/15 00:00|
|End of Day Share Price||2022/08/15 00:00|
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.