Gladstone Land Corporation (NASDAQ:LAND) is included among the 10 Safest Monthly Dividend Stocks to Buy. Why Gladstone Land (LAND) Ranks Among the Safest Monthly Dividend Stocks for Income Investors Image by Steve Buissinne from Pixabay Gladstone Land Corporation (NASDAQ:LAND) focuses on acquiring and leasing farmland to both independent and corporate farming operators. Its portfolio includes 150 farms across 15 states, covering roughly 103,000 acres, with crops ranging from vegetables and berries to al ...

Core Viewpoint - The anticipated decline in interest rates presents a significant investment opportunity in the discounted preferred shares of Gladstone Land Corporation, particularly LANDO and LANDP, which offer attractive yields and potential for capital appreciation [4][15][18]. Group 1: Market Context - The Bureau of Labor Statistics' jobs report has led the futures market to expect at least a 25 basis point rate cut by the Federal Reserve, with some speculating on a 50 basis point cut [1]. - Fixed income investors are now focusing on securing higher yields before rates decline, indicating a shift in investment strategy [3]. Group 2: Gladstone Land Corporation Overview - Gladstone Land Corporation is a farmland REIT that faces operational challenges but has potential for recovery through strategic shifts in revenue generation [6][8]. - The company has experienced tenant issues that have negatively impacted both common and preferred shares [8]. Group 3: Preferred Shares Analysis - Gladstone Land's preferred shares are currently trading at significant discounts, with yields around 7.70%, presenting a mispricing opportunity [4][15]. - The company has authorized a buyback of up to $20 million of LANDO and $35 million of LANDP, which could enhance shareholder equity and improve financial metrics [12][13][14]. Group 4: Investment Opportunity - The agricultural sector remains robust, and with LANDO and LANDP trading below $19.50, investors can secure a 7.7% yield with monthly dividends [15]. - If the Fed cuts interest rates as expected, demand for these preferred shares could increase, driving prices closer to their $25 liquidation preference, representing a potential 28.2% upside [18].

Core Insights - The company has experienced a significant turnaround in reservoir levels, leading to a return to stable electricity generation, attributed to warm and wet summer weather conditions [1] - Operating revenues for the first half of the year increased by 8%, with profit from core operations also rising by just under 8%, totaling USD 154.5 million [2][5] - The financial position remains robust, with an equity ratio of 62.6% and a year-on-year increase in return on equity to 8% from 7.3% [2][5] Demand and Expansion - Demand for the company's renewable energy continues to exceed supply, prompting one of the largest construction periods in its history [3] - Construction has begun on the Vaðalda wind farm, with expansion work on the Sigalda hydropower station and preparatory work for the Hvammur hydropower station expected to follow [3] - The additional generation capacity from these projects is anticipated to support societal growth and improve living standards in the coming years [3]

Group 1 - Gladstone Land Corporation (NASDAQ: LAND) is a REIT that focuses on owning and leasing farmland across the US, with significant growth from its initial focus on strawberry farming [1] - The company is part of the Gladstone family of investment funds, indicating a diversified investment strategy [1] Group 2 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, which enhances the quality of insights provided [1] - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, indicating a shift in content delivery and audience engagement [1]

Financial Data and Key Metrics Changes - For the second quarter, the company recorded a net loss of approximately $7.9 million and a net loss to common shareholders of $13.9 million, or $0.38 per share [36] - Adjusted FFO was negative $3.4 million compared to a positive $3.7 million, or $0.10 per share, in the same quarter last year [36] - Fixed base cash rents decreased by about $6.8 million from the prior year quarter due to vacancies and structural changes in lease agreements [36][37] - The company expects a reduction in fixed base rents by about $17 million for fiscal year 2025 compared to 2024 [38] Business Line Data and Key Metrics Changes - The company has modified lease structures on certain farms, transitioning from fixed rents to crop share agreements, which will impact revenue recognition [11][36] - Four new standard lease agreements were entered into during the quarter, expected to increase annual NOI by about $166,000 or approximately 9% [15] - Participation rents were down year over year, largely due to the accelerated recognition of certain revenue in 2024 [37] Market Data and Key Metrics Changes - The almond market has shown signs of recovery, with prices recently increasing by 5% to 8% after a previous drop of 20% [25] - Pistachio markets are experiencing strong demand, with the 2025 crop expected to be the largest on record [29] - Wine grape markets remain low, but there have been recent inquiries for contracts at significantly higher prices than a year ago [27] Company Strategy and Development Direction - The company is focusing on improving water security and delivery infrastructure across its portfolio, with significant investments in water assets [33][90] - The strategy includes transitioning back to traditional lease structures with fixed base rents as market conditions improve [12][46] - The company remains cautious about new investments due to high costs of capital and ongoing challenges in the farming sector [7][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased profits in the fourth quarter as crop sales are expected to improve [44] - The company is monitoring the impact of rising interest rates and changes in the agricultural market, particularly regarding the profitability of nut crops [46][48] - Management highlighted the importance of healthy food trends and the stability of demand for prime farmland [49] Other Important Information - The company has over $150 million in available capital and nearly $170 million in unpledged properties that could serve as collateral [42] - The monthly dividend declared was $0.0467 per share, representing a 6.1% annualized yield, which is above the REIT sector average [43] Q&A Session Summary Question: Follow-up on participation rents and expected amounts for 2025 - Management indicated that the split between this year and next year for the $17 million in participation rents is estimated at 60% to 65% this year, with the remainder in the following year [51] Question: Expectations for Series D redemption in January 2026 - Management is keeping options open, including potential property sales or using lines of credit to address the Series D redemption [55] Question: Impact of Sigma on properties and water needs - Management noted that while they are currently in good shape regarding water, regulatory changes from Sigma are ongoing and could impact future operations [80][87]

Core Viewpoint - Gladstone Land reported a quarterly loss of $0.1 per share, significantly missing the Zacks Consensus Estimate of $0.03, marking an FFO surprise of -416.67% [1] Financial Performance - The company posted revenues of $12.3 million for the quarter ended June 2025, which was 24.38% below the Zacks Consensus Estimate and down from $21.3 million year-over-year [2] - Over the last four quarters, Gladstone has surpassed consensus FFO estimates only once, while it has topped consensus revenue estimates three times [2] Stock Performance - Gladstone shares have declined approximately 16% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.12 on revenues of $20.39 million, and for the current fiscal year, it is $0.43 on revenues of $79.46 million [7] - The outlook for the industry, particularly the REIT and Equity Trust - Other sector, is currently in the top 40% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Gladstone Land reported a significant net loss and negative AFFO for Q2 2025, a sharp decline from the prior year, primarily driven by a strategic shift in lease structures. The company modified several leases to reduce fixed base rents in favor of higher participation rents, causing a delay in revenue recognition to later in the year. This led to a 42.3% decrease in total operating revenues and a $12.0 million drop in cash flows from operations. Key activities included refinancing debt at a higher interest rate and acquiring additional water assets in California [Financial Performance](index=1&type=section&id=Financial%20Performance) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Loss | ~$7.9 million | ~$823,000 | Increased Loss | | Net Loss to Common Stockholders | ~$13.9 million | ~$6.7 million | Increased Loss | | Net Loss per Share | $0.38 | $0.19 | Increased Loss | | AFFO | ~$(3.5) million | ~$3.7 million | Negative Swing | | AFFO per Share | $(0.10) | $0.10 | Negative Swing | | Common Stock Dividends Declared | ~$0.14/share | ~$0.14/share | Unchanged | - Total cash lease revenues decreased, mainly due to a **$6.8 million** reduction in fixed base cash rents from lease modifications and vacancy issues. Participation rents also fell by approximately **$975,000** due to accelerated revenue recognition in the prior year[6](index=6&type=chunk) - Cash flows from operations saw a significant **decrease of approximately $12.0 million** compared to the prior-year quarter. This was primarily caused by reduced cash from fixed lease payments following lease modifications and lower collections from vacant or direct-operated farms[10](index=10&type=chunk) - Cash operating expenses (excluding related-party fees) **decreased by about $135,000**, driven by lower general and administrative costs. However, this was partially offset by higher property operating expenses, including costs to protect water rights and manage vacant properties[7](index=7&type=chunk)[9](index=9&type=chunk) [Key Activities and Subsequent Events](index=1&type=section&id=Key%20Activities%20and%20Subsequent%20Events) - Executed four new lease agreements expected to increase annual net operating income by approximately **$166,000, a 9.3% increase** over prior leases[8](index=8&type=chunk) - Secured a new **$10.6 million loan at a fixed rate of 6.31%** for three years to repay a maturing **$10.3 million loan** that had a **3.85% interest rate**[8](index=8&type=chunk) - Subsequent to quarter-end, the company purchased **1,530 gross acre-feet of water** for approximately **$583,000** and repaid a **$10.4 million maturing bond** that had a **4.45% interest rate**[12](index=12&type=chunk) - Declared monthly cash distributions of **$0.0467 per common share** for July, August, and September 2025, totaling **$0.1401 for the third quarter**[12](index=12&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) - The company modified lease agreements on six farms, reducing or eliminating fixed base rent in exchange for significantly higher participation rent components. This strategic shift will delay revenue recognition, with the majority of 2025 revenue and earnings expected in the **fourth quarter**[8](index=8&type=chunk) - CEO David Gladstone stated that 2025 earnings will be more dependent on participation rents, viewing the lease modifications as a temporary but profitable measure for the 2025 crop year. The company may consider selling certain farms if satisfactory standard lease terms are not reached in the near future[11](index=11&type=chunk) - Market trends for key crops like pistachios and almonds are viewed as mostly positive. Pistachio prices are steady, while almond prices are currently **5% to 10% higher** than the same time last year[11](index=11&type=chunk) - The company maintains a strong balance sheet with **nearly 100% of debt at fixed interest rates** and strong liquidity, including over **$150 million in immediately-available capital**[11](index=11&type=chunk) [Detailed Financial Data](index=3&type=section&id=Detailed%20Financial%20Data) The company's detailed financials for Q2 2025 show a significant year-over-year decline across key metrics. Total operating revenues fell 42.3% to $12.3 million, while net loss widened to $7.9 million from $0.8 million. Non-GAAP measures also deteriorated, with FFO and AFFO turning negative. The balance sheet contracted, with total assets and total indebtedness decreasing by 6.9% and 8.7% respectively. Operational metrics also weakened, with farm ownership down by 18 properties and the occupancy rate dropping to 95.9% from 99.3% [Operating Data & Per-Share Metrics](index=3&type=section&id=Operating%20Data%20%26%20Per-Share%20Metrics) Q2 2025 vs Q2 2024 Operating Results (in thousands) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $12,296 | $21,297 | (42.3)% | | Total operating expenses | $(12,510) | $(13,433) | (6.9)% | | Net loss | $(7,878) | $(823) | 857.2% | | FFO available to common stockholders | $(3,346) | $4,974 | (167.3)% | | CFFO available to common stockholders | $(3,562) | $5,011 | (171.1)% | | AFFO available to common stockholders | $(3,450) | $3,703 | (193.2)% | Q2 2025 vs Q2 2024 Per-Share Results | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Diluted net loss per common share | $(0.384) | $(0.186) | 106.6% | | Diluted FFO per common share | $(0.092) | $0.139 | (166.6)% | | Diluted CFFO per common share | $(0.098) | $0.140 | (170.4)% | | Diluted AFFO per common share | $(0.095) | $0.103 | (192.3)% | [Balance Sheet & Other Metrics](index=3&type=section&id=Balance%20Sheet%20%26%20Other%20Metrics) Balance Sheet Data as of June 30 (in thousands) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | $1,258,585 | $1,352,553 | (6.9)% | | Total indebtedness | $558,917 | $612,465 | (8.7)% | | Total equity | $670,073 | $708,469 | (5.4)% | Operational Data as of June 30 | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Farms owned | 150 | 168 | (10.7)% | | Acres owned | 103,001 | 111,836 | (7.9)% | | Occupancy rate | 95.9% | 99.3% | (3.4)% | | Acre-feet of water assets owned | 55,306 | 53,975 | 2.5% | [About the Company & Shareholder Information](index=4&type=section&id=About%20the%20Company%20%26%20Shareholder%20Information) Gladstone Land is a publicly traded REIT founded in 1997 that owns farmland and related properties across the U.S. As of the report date, the company owns 150 farms totaling approximately 103,000 acres in 15 states, along with significant water assets in California. The company focuses on farms growing fresh produce and permanent crops and pays monthly distributions to stockholders. An earnings conference call is scheduled for August 8, 2025, at 8:30 a.m. Eastern Time - Gladstone Land is a REIT that owns **150 farms**, comprising approximately **103,000 acres** in **15 states**, and over **55,000 acre-feet of water assets** in California[17](index=17&type=chunk) - The company's portfolio includes farms for annual row crops (berries, vegetables) and permanent crops (almonds, pistachios, wine grapes). A significant portion of its acreage is organic or in transition to organic[17](index=17&type=chunk) - The company has paid **150 consecutive monthly cash distributions** on its common stock since its IPO in January 2013. The current monthly distribution is **$0.0467 per share**[17](index=17&type=chunk) - A conference call to discuss the earnings results will be held on Friday, **August 8, 2025, at 8:30 a.m. (Eastern Time)**[16](index=16&type=chunk) [Non-GAAP Financial Measures & Disclosures](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Disclosures) The report utilizes non-GAAP financial measures including Funds from Operations (FFO), Core FFO (CFFO), and Adjusted FFO (AFFO) to provide supplemental information on operating performance. FFO, defined by NAREIT, excludes gains/losses from property sales and real estate depreciation. CFFO further adjusts FFO for non-recurring items to enhance period-over-period comparability. AFFO adjusts CFFO for certain non-cash items like straight-lining of rents to reflect performance on a cash basis. The company also includes a standard forward-looking statements disclaimer, cautioning that actual results may differ materially from projections - FFO (Funds from Operations) is a non-GAAP measure used to evaluate REIT performance, excluding gains/losses from property sales and real estate depreciation[19](index=19&type=chunk) - CFFO (Core FFO) adjusts FFO for non-recurring items to provide a measure of sustainable operating performance[23](index=23&type=chunk) - AFFO (Adjusted FFO) adjusts CFFO for certain non-cash items, such as the straight-lining of rents, to measure sustainable operating performance on a cash basis[24](index=24&type=chunk) - The press release contains forward-looking statements that involve risks and uncertainties. The company cautions readers not to place undue reliance on these statements, which are subject to various factors disclosed in SEC filings[26](index=26&type=chunk)

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) For the six months ended June 30, 2025, Gladstone Land Corporation reported a net income of $7.2 million, a decrease from $12.7 million in 2024, with total assets decreasing to $1.26 billion and net cash from operating activities at $8.4 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $1.26 billion from $1.31 billion, with liabilities falling to $588.5 million and equity slightly decreasing to $670.1 million Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,258,585** | **$1,312,195** | | Total real estate, net | $1,129,449 | $1,156,850 | | Real estate and related assets held for sale, net | $14,496 | $46,314 | | Cash and cash equivalents | $30,481 | $18,275 | | **Total Liabilities** | **$588,512** | **$625,013** | | Notes and bonds payable, net | $496,184 | $523,922 | | **Total Equity** | **$670,073** | **$687,182** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the six months ended June 30, 2025, total operating revenues decreased to $29.1 million, resulting in a net income of $7.2 million and a net loss attributable to common stockholders of $4.8 million Condensed Consolidated Statements of Operations (in thousands, except per-share data) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total operating revenues** | **$29,099** | **$41,549** | | Lease revenue, net | $29,098 | $41,096 | | **Total operating expenses** | **$25,637** | **$26,424** | | **Net income** | **$7,230** | **$12,744** | | **Net (loss) income attributable to common stockholders** | **$(4,774)** | **$795** | | **Basic and diluted (loss) income per common share** | **$(0.13)** | **$0.02** | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased from $687.2 million to $670.1 million, primarily due to $22.1 million in distributions and a $2.2 million comprehensive loss, partially offset by net income Changes in Equity for the Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Balance at December 31, 2024** | **$687,182** | | Net income | $7,230 | | Dividends—cumulative redeemable preferred stock | $(12,004) | | Distributions—OP Units and common stock | $(10,139) | | Comprehensive loss | $(2,174) | | Other equity changes | $(22) | | **Balance at June 30, 2025** | **$670,073** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $8.4 million, while investing activities provided $57.4 million and financing activities used $53.6 million, resulting in a $12.2 million net increase in cash Condensed Consolidated Statements of Cash Flows (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$8,416** | **$19,333** | | **Net cash provided by investing activities** | **$57,395** | **$61,678** | | **Net cash used in financing activities** | **$(53,605)** | **$(49,825)** | | **Net increase in cash and cash equivalents** | **$12,206** | **$31,186** | | Cash and cash equivalents at end of period | $30,481 | $49,757 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's agricultural REIT business, accounting policies, financial statement components, and subsequent events including a new share repurchase program - As of June 30, 2025, the company owned **150 farms** totaling **103,001 acres** across 15 states and **55,306 acre-feet** of water assets in California[20](index=20&type=chunk) - In January and February 2025, the company sold seven farms in Florida and Nebraska for aggregate sales prices of approximately **$64.5 million**, recognizing a total net gain of about **$15.7 million**[44](index=44&type=chunk)[45](index=45&type=chunk) - On July 11, 2025, the Board of Directors approved a new share repurchase program authorizing the repurchase of up to **$20.0 million** of Series B Preferred Stock and up to **$35.0 million** of Series C Preferred Stock, expiring July 10, 2026[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a decrease in operating revenues to $29.1 million due to property sales and lease modifications, while highlighting $153.6 million in liquidity and key business environment factors [Overview](index=28&type=section&id=Overview) The company operates as an agricultural REIT with 150 diversified farms across 15 states, totaling 103,001 acres, and 55,306 acre-feet of California water assets Portfolio Geographic Diversification as of June 30, 2025 | State | No. of Farms | Total Acres | % of Total Acres | % of Total Lease Revenue (6 Months) | | :--- | :--- | :--- | :--- | :--- | | California | 63 | 34,845 | 33.8% | 58.8% | | Florida | 20 | 13,090 | 12.7% | 16.2% | | Washington | 6 | 2,520 | 2.4% | 7.5% | | Other | 61 | 50,546 | 51.1% | 17.5% | | **TOTALS** | **150** | **103,001** | **100.0%** | **100.0%** | - As of June 30, 2025, leases covering **15,002 acres** (**14.6%** of total acreage) are scheduled to expire during the remainder of 2025, with the company exploring renewal, new lease, or sale options[138](index=138&type=chunk) [Business Environment](index=30&type=section&id=Business%20Environment) The business environment is characterized by moderating inflation, elevated interest rates, trade tensions impacting export crops, and a favorable California water outlook - Over **99.9%** of the company's borrowings are at fixed rates, with a weighted-average effective interest rate of **3.39%** for another **3.3 years**, insulating the existing portfolio from recent interest rate hikes[141](index=141&type=chunk) - Trade tensions and tariffs pose risks to export-oriented crops like almonds and pistachios, which constitute a significant portion of U.S. agricultural exports, though strong domestic demand for fresh produce provides a buffer[142](index=142&type=chunk) - The California water outlook is favorable for the 2024-2025 water year, with above-average precipitation and high reservoir levels leading to positive surface water allocations, despite ongoing SGMA pumping restrictions[147](index=147&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Operating revenues decreased to $29.1 million due to property sales and lease restructurings, resulting in operating income of $3.5 million and a net loss attributable to common stockholders of $4.8 million Comparison of Operating Results (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total operating revenues** | **$29,099** | **$41,549** | | **Total operating expenses** | **$25,637** | **$26,424** | | **Operating income** | **$3,462** | **$15,125** | | Gain on dispositions of real estate assets, net | $13,261 | $7,473 | | **Net income** | **$7,230** | **$12,744** | | **Net (loss) income attributable to common stockholders** | **$(4,774)** | **$795** | - The decrease in same-property fixed lease payments was primarily due to lease modifications that reduced or eliminated fixed base rent in exchange for significantly increased participation rent components, with revenue recognition expected in late 2025[175](index=175&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $153.6 million in available liquidity, with over 99.9% of borrowings at fixed rates, while cash flow from operations decreased to $8.4 million - As of the report date, the company has available liquidity of approximately **$153.6 million**, consisting of about **$7.3 million** in cash and **$146.3 million** of availability under its credit facilities[201](index=201&type=chunk) Summary of Cash Flows (in thousands) | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $8,416 | $19,333 | | Net cash from investing activities | $57,395 | $61,678 | | Net cash from financing activities | $(53,605) | $(49,825) | | **Net change in Cash and cash equivalents** | **$12,206** | **$31,186** | [Non-GAAP Financial Information](index=43&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) The company utilizes FFO, CFFO, and AFFO as supplemental measures, with all three metrics showing a decrease for Q2 2025 compared to Q2 2024 Reconciliation of Net (Loss) Income to FFO, CFFO, and AFFO (in thousands) | | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to common stockholders | $(13,880) | $(6,654) | | **FFO available to common stockholders** | **$(3,346)** | **$4,974** | | **CFFO available to common stockholders** | **$(3,562)** | **$5,011** | | **AFFO available to common stockholders** | **$(3,450)** | **$3,703** | Non-GAAP Per Share Metrics | | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | FFO per share | $(0.09) | $0.14 | | CFFO per share | $(0.10) | $0.14 | | AFFO per share | $(0.10) | $0.10 | | Distributions declared per common share | $0.14 | $0.14 | [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, which is minimal due to over 99.9% of borrowings being at fixed rates - The company's exposure to interest rate risk is low, with over **99.9%** of borrowings at fixed rates. The weighted-average effective interest rate is **3.39%** with a remaining fixed term of **3.3 years**[233](index=233&type=chunk) [Controls and Procedures](index=46&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - As of June 30, 2025, management concluded that the company's disclosure controls and procedures were effective[236](index=236&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[238](index=238&type=chunk) [PART II OTHER INFORMATION](index=48&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=48&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, nor is it aware of any threatened material legal proceedings - The company reports no material known or threatened litigation[240](index=240&type=chunk) [Risk Factors](index=48&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 - The company refers to its previously filed Form 10-K and Form 10-Q for a discussion of risk factors and notes no material changes[241](index=241&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[242](index=242&type=chunk) [Defaults Upon Senior Securities](index=48&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=48&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=49&type=section&id=ITEM%205.%20Other%20Information) During the three months ended June 30, 2025, no officer or director of the company adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No officer or director adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025[245](index=245&type=chunk) [Exhibits](index=50&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, forms of stock certificates, officer certifications pursuant to the Sarbanes-Oxley Act, and XBRL data files

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Company Overview - Gladstone Land owns 150 farms with approximately 103,000 acres in 15 states and over 55,000 acre-feet of water assets in California, with 95.9% occupancy[10] - The company focuses on farmland growing fresh produce and permanent crops[11, 16] - Gladstone Land is managed by an SEC-registered investment advisor with over $4 billion of assets under management[12] Market Opportunity and Investment Focus - The company primarily focuses on acquiring high-value farmland that generates above-average revenues and profits[35] - The company targets transaction sizes between $2 million to $50 million+[43] - From 1980 through 2024, the Fresh Fruits & Vegetables segment of the Food & Beverages category increased by 385%[45] - U.S farmland value is approximately $3.4 trillion, with approximately 63% of U.S farm operators are over 55 years of age[65] Financial Performance - Since its IPO in 2013, the company has made 147 consecutive monthly cash distributions to common shareholders, totaling $7.32 per share[76] - Over the past 41 quarters, the company has increased the common distribution rate 35 times for a total increase of 55.7%[76] - The company's weighted-average remaining lease term is 6.7 years[83] - The company's weighted-average debt maturity is 7.4 years with a weighted-average effective interest rate of 3.41%, fixed for 3.5 years[84]