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.

Snowflake

Fundamentals

Second-rate dividend payer and slightly 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


Market Performance


7 Day Return

-0.3%

LAND

-0.3%

US REITs

1.8%

US Market


1 Year Return

-2.0%

LAND

19.5%

US REITs

7.3%

US Market

Return vs Industry: LAND underperformed the US REITs industry which returned 19.5% over the past year.

Return vs Market: LAND underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

LANDIndustryMarket
7 Day-0.3%-0.3%1.8%
30 Day-1.4%0.9%-0.7%
90 Day4.4%7.0%0.06%
1 Year2.0%-2.0%24.9%19.5%9.7%7.3%
3 Year22.9%8.3%34.5%17.4%46.3%36.9%
5 Year24.6%0.08%63.3%28.9%64.5%46.5%

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?

4.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LAND ($11.83) is trading below our estimate of fair value ($12.42)

Significantly Undervalued: LAND is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LAND is poor value based on its PE Ratio (66.5x) compared to the REITs industry average (36.2x).

PE vs Market: LAND is poor value based on its PE Ratio (66.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: LAND's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LAND is good value based on its PB Ratio (1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Gladstone Land forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAND's earnings are forecast to decline over the next 3 years (-34.4% per year).

Earnings vs Market: LAND's earnings are forecast to decline over the next 3 years (-34.4% per year).

High Growth Earnings: LAND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LAND's revenue (15.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: LAND's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

48.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LAND has become profitable over the past 5 years, growing earnings by 48.3% per year.

Accelerating Growth: LAND has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LAND has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (17.6%).


Return on Equity

High ROE: LAND's Return on Equity (2.3%) is considered low.


Return on Assets

ROA vs Industry: LAND's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: LAND has improved its Return on Capital Employed over the past 3 years.


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 0.1x debt).


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?

4.52%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Gladstone Land before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.5%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LAND's dividend (4.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LAND's dividend (4.52%) is in the top 25% of dividend payers in the US market (3.72%)

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 (129.6%), 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 (4.5% payout ratio).


Next Steps

Management

What is the CEO of Gladstone Land's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

David Gladstone (77yo)

22.8yrs

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 Corp. in 2003 an ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Management Age and Tenure

6.9yrs

Average Tenure

57yo

Average Age

Experienced Management: LAND's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

74yo

Average Age

Experienced Board: LAND's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: LAND insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$2,493,57011 Sep 19
David Gladstone
EntityIndividual
Role
Chief Executive Officer
Founder
Shares210,000
Max PriceUS$11.90
BuyUS$1,199,60818 Mar 19
David Gladstone
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,000
Max PriceUS$12.03

Ownership Breakdown


Management Team

  • David Gladstone (77yo)

    Founder

    • Tenure: 22.8yrs
    • Compensation: US$57.75k
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.8yrs
  • Jack Dellafiora

    Chief Compliance Officer

    • Tenure: 6.9yrs
  • Michael LiCalsi (49yo)

    General Counsel & Secretary

    • Tenure: 10yrs
  • Lewis Parrish (40yo)

    CFO & Assistant Treasurer

    • Tenure: 5.3yrs
    • Compensation: US$71.90k
  • Bill Reiman

    Managing Director

    • Tenure: 6.2yrs
  • Jennifer Smith

    Chief Valuation Officer

    • Tenure: 0yrs
  • Jay Beckhorn (57yo)

    Treasurer

    • Tenure: 4.8yrs
  • Karin McLaughlin

    Investor Relations Specialist

    • Tenure: 0yrs
  • Erich Hellmold

    Assistant General Counsel

    • Tenure: 0yrs

Board Members

  • David Gladstone (77yo)

    Founder

    • Tenure: 22.8yrs
    • Compensation: US$57.75k
  • Walter Wilkinson (73yo)

    Director

    • Tenure: 5yrs
  • Michela English (69yo)

    Director

    • Tenure: 6.8yrs
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.8yrs
  • Anthony Parker (74yo)

    Director

    • Tenure: 6.8yrs
  • Paul Adelgren (76yo)

    Lead Director

    • Tenure: 0yrs
  • John Outland (74yo)

    Director

    • Tenure: 6.8yrs
  • Caren Merrick (59yo)

    Director

    • Tenure: 4.9yrs

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
  • Market Cap: US$246.183m
  • Shares outstanding: 20.81m
  • 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 lea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:01
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.