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 with questionable track record.

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

2.3%

NasdaqGM:LAND

-2.1%

US REITs

1.2%

US Market


1 Year Return

-4.8%

NasdaqGM:LAND

10.1%

US REITs

1.7%

US Market

LAND underperformed the REITs industry which returned 10.1% over the past year.

LAND underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

LANDIndustryMarket
7 Day2.3%-2.1%1.2%
30 Day2.9%0.7%4.9%
90 Day-1.9%1.1%3.7%
1 Year-0.5%-4.8%15.1%10.1%3.9%1.7%
3 Year22.8%7.8%29.8%12.9%47.2%37.7%
5 Year18.2%-5.0%65.8%30.7%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gladstone Land's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Gladstone Land's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Gladstone Land is overvalued based on earnings compared to the US REITs industry average.

Gladstone Land is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Gladstone Land earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Gladstone Land is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gladstone Land's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

Gladstone Land's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Gladstone Land's revenue growth is expected to exceed the United States of America market average.

Gladstone Land's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Gladstone Land's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Gladstone Land will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Gladstone Land has delivered over 20% year on year earnings growth in the past 5 years.

Gladstone Land has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Gladstone Land has become profitable in the last year making it difficult to compare the US REITs industry average.


Return on Equity

Gladstone Land has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Gladstone Land used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Gladstone Land has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Gladstone Land's financial position?


Financial Position Analysis

Gladstone Land is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Gladstone Land's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Gladstone Land's level of debt (163.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (94.2% vs 163.6% today).

Debt is not well covered by operating cash flow (2.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

4.47%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Gladstone Land's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Gladstone Land's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Gladstone Land has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Gladstone Land only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (23.1x coverage).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

David Gladstone (77yo)

22.7yrs

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

Insufficient data for David to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Insufficient data for David to compare compensation growth.


Management Age and Tenure

6.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Gladstone Land management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

74yo

Average Age

The tenure for the Gladstone Land board of directors is about average.


Insider Trading

More shares have been bought than sold by Gladstone Land individual insiders 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: 22.7yrs
    • Compensation: US$57.75k
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.7yrs
  • Jack Dellafiora

    Chief Compliance Officer

    • Tenure: 6.8yrs
  • Michael LiCalsi (49yo)

    General Counsel & Secretary

    • Tenure: 9.9yrs
  • Lewis Parrish (40yo)

    CFO & Assistant Treasurer

    • Tenure: 5.2yrs
    • Compensation: US$71.90k
  • Bill Reiman

    Managing Director

    • Tenure: 6.1yrs
  • Jennifer Smith

    Chief Valuation Officer

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

    Treasurer

    • Tenure: 4.7yrs
  • Karin McLaughlin

    Investor Relations Specialist

    • Tenure: 0yrs
  • Erich Hellmold

    Assistant General Counsel

    • Tenure: 0yrs

Board Members

  • David Gladstone (77yo)

    Founder

    • Tenure: 22.7yrs
    • Compensation: US$57.75k
  • Walter Wilkinson (73yo)

    Director

    • Tenure: 4.9yrs
  • Michela English (69yo)

    Director

    • Tenure: 6.7yrs
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.7yrs
  • Anthony Parker (74yo)

    Director

    • Tenure: 6.7yrs
  • Paul Adelgren (76yo)

    Lead Director

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

    Director

    • Tenure: 6.7yrs
  • Caren Merrick (59yo)

    Director

    • Tenure: 4.8yrs

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$249.305m
  • 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 Analysis2019/09/15 00:50
End of Day Share Price2019/09/13 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.