Core Insights - Landsvirkjun's operational performance in 2024 was solid despite not matching the record results of 2023 due to challenging conditions, including historically poor water levels affecting power sales and revenue [1] - The company's financial position is robust, with a strong equity ratio of 66.2% and net debt at 1.6 times EBITDA, indicating a healthy balance sheet [4] Financial Performance - The profit from core operations for Landsvirkjun was USD 301 million in the previous year [4] - The Board plans to propose a dividend of USD 180 million to the state for this year, contributing to a cumulative dividend of USD 660 million from fiscal years 2021 to 2024 [4] Project Developments - Construction has commenced on the 120 MW Búrfellslundur wind farm and the 95 MW Hvammsvirkjun hydropower projects, addressing the urgent need for additional electricity capacity [2] - Plans are in place to start construction on expansions of the Theistareykir geothermal and Sigalda hydroelectric power plants in 2025, marking the first time the company undertakes four new projects simultaneously across three different energy sources [2]

Financial Data and Key Metrics Changes - Adjusted FFO for Q4 2024 was approximately $3.4 million or $0.09 per share, down from $5.4 million or $0.15 per share in the prior year quarter [36] - Annual adjusted FFO for 2024 was approximately $16.7 million, compared to $20.3 million in 2023, with AFFO per share decreasing from $0.57 in 2023 to $0.47 in 2024 [36] - Year-over-year fixed base cash rents decreased by about $4.9 million on a quarterly basis and $9.7 million on an annual basis [37] Business Line Data and Key Metrics Changes - Participation rents recorded during Q4 were approximately $4.8 million, compared to $3.3 million in the prior year quarter, with annual participation rents increasing from $5.9 million to $9.4 million [38] - The company executed four new lease agreements and amendments, primarily in the West, with a shift towards crop share components instead of fixed rent payments [18][20] Market Data and Key Metrics Changes - The company sold 11 blueberry farms in Michigan, which had a negative impact on net operating income of about $400,000 in 2024 [15] - The sale of five farms in Florida resulted in a gain of about 40% over the purchase price, indicating a strong appreciation in farmland values in that region [16] Company Strategy and Development Direction - The company remains cautious with new investments due to high capital costs and low cap rates on most row crops and farmlands [13][52] - The strategy includes adjusting lease structures to minimize fixed costs while allowing for greater participation in crop sales [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for a reduction in interest rates, which would improve acquisition opportunities [53] - The company anticipates stable to strong demand for prime farmland, particularly for crops that contribute to healthy lifestyles [55][58] Other Important Information - The net asset value per common share decreased from $15.57 at the end of Q3 to $14.91 at the end of Q4, primarily due to decreases in valuations of certain farms [45] - The company has access to over $195 million of capital, including about $50 million in cash on hand [46] Q&A Session Summary Question: Clarification on participation and fixed base rent amendments - The $3 million to $3.5 million lower fixed base rent refers to the average base rent for the year in 2024 compared to 2025 [64] Question: Expectations around interest patronage in Q1 - Expectation is for about 10% less interest patronage due to the payoff of a portion of loans [75] Question: Details on lease expirations this year - Most leases expiring in the next six months are row crop farms, with a significant portion of remaining expirations being permanent crop farms [76][78] Question: Impact of property operating expenses - The increase in property operating expenses is related to vacant and directly operated properties, with expectations for a decrease in 2025 [88] Question: NAV decision and future reporting - The company will not provide NAV calculations quarterly due to high costs, but may consider internal assessments [110][112]

分组1 - Gladstone Land reported quarterly funds from operations (FFO) of $0.09 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.15 per share a year ago, representing an FFO surprise of -15.45% [1] - The company posted revenues of $21.1 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.18%, but down from year-ago revenues of $24.45 million [2] - Gladstone shares have increased approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] 分组2 - The future performance of Gladstone's stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] - The current consensus FFO estimate for the upcoming quarter is $0.08 on revenues of $16.58 million, and for the current fiscal year, it is $0.52 on revenues of $86.19 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 34% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - For the fiscal year 2024, net income was approximately $13.3 million, a decrease from approximately $14.6 million in the prior year[8] - The net loss to common stockholders for the year was approximately $10.5 million, or $0.29 per share, compared to approximately $9.9 million, or $0.28 per share, in the prior year[8] - AFFO for the year was approximately $16.7 million, or $0.47 per share, down from approximately $20.3 million, or $0.57 per share, in the prior year[8] - Total operating revenues decreased by 13.7% to $21,096 million compared to $24,452 million in the previous year[14] - Net income fell by 70.4% to $539 million from $1,819 million year-over-year[14] - Funds from operations (FFO) available to common stockholders decreased by 36.1% to $3,955 million from $6,185 million[14] - Cash flows from operations dropped by 33.5% to $11,582 million compared to $17,424 million in the prior year[14] - Diluted AFFO per weighted-average common share decreased by 38.3% to $0.093 from $0.151[14] Asset and Valuation Changes - The estimated NAV per share decreased by $4.15 to $14.91 at December 31, 2024, primarily due to valuation decreases in certain farms[7] - Total assets decreased by 5.4% to $1,312,195 million from $1,387,324 million[17] - The net asset value (NAV) per common share decreased by 21.8% to $14.91 from $19.06[17] - The farmland portfolio value decreased by 10.3% to $1,405,350 million from $1,566,474 million[17] - The estimated NAV available to common stockholders and non-controlling OP Unitholders is $539.354 million, with an estimated NAV per share of $14.91[29] Revenue and Lease Agreements - Total cash lease revenues decreased, with fixed base cash rents down by approximately $4.9 million, while participation rents increased by approximately $1.5 million[5] - The company executed 31 amended or new lease agreements, resulting in an aggregate increase in annual net operating income of approximately $556,000, or 14.4%, for row crop farms[3] Sales and Acquisitions - The company sold 12 farms for gross proceeds of approximately $70.6 million, resulting in a total net gain of approximately $10.0 million[3] - Loan repayments totaled approximately $33.6 million, primarily for maturing loans[3] - The company plans to acquire more water assets, securing an additional 8,987 net acre-feet at a total cash cost of approximately $2.1 million[3] - The company has a commitment to acquiring properties related to farming, including processing and distribution facilities[20] Operational Metrics - The occupancy rate declined to 96.2% from 99.5% year-over-year[17] - The company owns over 55,000 acre-feet of water assets in California, which are integral to its farming operations[20] - Over 30% of the company's fresh produce acreage is either organic or in transition to become organic, and nearly 20% of its permanent crop acreage falls into this category[20] Dividends and Distributions - The current monthly distribution per share on common stock is $0.0467, equating to an annual distribution of $0.5604, with 144 consecutive monthly cash distributions since January 2013[20] - The company has paid dividends on its cumulative redeemable preferred stock and recognized net gains or losses from redemptions[22] Future Outlook - Forward-looking statements indicate expectations for increases in farmland values and operating revenues, but these are subject to risks and uncertainties[31] - The company will no longer voluntarily publish NAV per common share after December 31, 2024, due to a review of costs and benefits[30] Interest and Financing - The company recorded approximately $1.9 million of interest patronage, resulting in a 22.0% reduction to the interest rate of borrowings[3] - Total indebtedness reduced by 7.4% to $590,284 million from $637,414 million[17]

Real Estate Portfolio Risks - The company reported a significant concentration of its real estate portfolio across a limited number of states, increasing the risk of substantial losses due to adverse weather, economic, or regulatory changes[14]. - Future climate changes may impact the value of properties and the ability to generate rental revenue[14]. - Illiquidity of farmland investments may hinder the company's ability to sell properties in response to market conditions, affecting financial health[14]. Operational Risks - The company operates farms on certain properties, which raises operating costs and exposes it to additional farming-related risks[14]. - A portion of the company's cash flow is tied to leases with a participation rent component, making it vulnerable to declining crop prices and lower-than-average crop production[14]. - Many properties are leased to medium-sized, independent farming operations, which may have limited financial stability, impacting rental revenue generation[14]. - The company faces risks related to tenant defaults or early lease terminations, which could adversely affect returns to stockholders[14]. - Fluctuations in interest rates could negatively impact the company's results of operations[14]. Financial and Capital Risks - The company may struggle to raise sufficient capital or secure favorable borrowing terms, adversely affecting operations and distribution capabilities[14]. - Insufficient earnings may hinder the ability to pay distributions on preferred securities[18]. - Maintaining REIT qualification is critical; failure could lead to federal income tax liabilities[18]. - Operating Partnership's failure to maintain partnership status could result in taxation on income[18]. Management and Governance Risks - The company is dependent on key management personnel for future success, which poses a risk if there are changes in leadership[18]. - Key management personnel, including David Gladstone and Bill Reiman, are crucial for future success[18]. - Conflicts of interest with the Adviser could lead to suboptimal investment decisions for stockholders[18]. - The Adviser is not obligated to waive the incentive fee, potentially affecting earnings and distributions[18]. - Certain charter provisions may restrict stockholder attempts to change management, impacting stock price[18]. Cybersecurity Risks - Cybersecurity risks may disrupt operations and negatively impact financial condition and operating results[18].

Group 1 - Gladstone Land (NASDAQ: LAND) focuses on owning farmland and leasing it to third-party operators [1] - The REIT has recently shifted its leasing strategy by reducing base rent in favor of a crop sharing and profit sharing lease agreement [1] - This new approach aims to enhance revenue potential through shared profits rather than fixed rental income [1]

Financial Data and Key Metrics Changes - For Q3 2024, the company reported a net income of $6,000 and a net loss to common shareholders of $5.8 million or $0.16 per share, with adjusted FFO approximately $4.5 million or $0.13 per share, down from $5.4 million or $0.15 per share in the prior quarter [27][28] - Fixed base cash rents decreased by about $2.6 million year-over-year, primarily due to lost revenues from a sold farm and additional expenses related to vacancies [29] - The net asset value per common share decreased to $15.57 from $17.59 at June 30, attributed to a $23 million decrease in farm valuations [39] Business Line Data and Key Metrics Changes - The company executed 21 new or amended leases in Q3, with annual row crop farms seeing an expected increase in net operating income of about $309,000 or 11% from prior leases [11][12] - Permanent crop farms had 13 leases renewed, with adjustments leading to a decrease in base rents but potential upside through increased participation rents [13][18] - The company anticipates a total year-over-year swing in fixed base rents of about $20 million due to lease structure changes, impacting revenues over the next five quarters [31] Market Data and Key Metrics Changes - The company owns approximately 112,000 acres across 168 farms, with a total asset value of about $1.5 billion [10] - The market conditions for permanent crop farms in the West have been challenging due to lower crop prices and higher input costs, affecting tenant commitments to long-term leases [14][15] - The company noted strong demand for prime farmland, particularly for vegetables and berries, despite some price depressions in nuts and wine grapes [50][51] Company Strategy and Development Direction - The company is cautious about new acquisitions due to high capital costs and is focusing on optimizing existing leases and tenant relationships [46][47] - Management is optimistic about the long-term trend of investing in farmland for healthy crops, indicating a strategic focus on sustainable agricultural practices [49] - The company plans to revert to traditional lease structures in the future while exploring potential sales of underperforming farms [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for lower interest rates to facilitate future acquisitions, while acknowledging the current high rates as a barrier [48] - The company expects inflation in food sectors to drive up farmland values over time, particularly in fresh produce [54] - Management remains confident in the production capabilities of their farms, anticipating a good year in 2025 based on participation rents [88] Other Important Information - The company has access to over $160 million in liquidity, including $20 million in cash, and has a significant amount of unpledged properties [40] - The company repurchased 176,045 shares of preferred stock at a total cost of about $3.7 million during the quarter [26] - An impairment charge of about $2 million was recorded due to the write-down of Michigan blueberry farms [36] Q&A Session Summary Question: Can you provide the number of leases expiring in 2025 and how many are permanent crops? - Management indicated that there are 17 leases expiring in 2025, which constitutes about 20% of revenue, with a skew towards annual row crops [58][60] Question: Were the leases amended in Q3 due to expiration or other reasons? - Some leases were amended for various reasons, including pushing out expirations and adjusting terms for better tenant support [62] Question: What is the NOI impact from the sale of the blueberry farms? - The blueberry farms had been an NOI drag, averaging about $125,000 quarterly, and their sale will relieve this burden [76] Question: How will the lease changes impact fixed rent? - The restructuring will lead to a decrease in fixed rent, with a portion of the impact expected to begin in Q4 [70] Question: Is there any stabilization in the California permanent crop market? - Management noted low prices for nuts and grapes but indicated potential stabilization in land values as water sources become a key factor [82][86]

Gladstone Land (LAND) came out with quarterly funds from operations (FFO) of $0.13 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -3.08%. A quarter ago, it was expected that this real estate investment trust specializing in farmland would post FFO of $0.12 per share when it actually produced FFO of $0.10, delivering a surprise of -16.67%.Over the l ...

EXHIBIT 99.1 Gladstone Land Announces Third Quarter 2024 Results Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision. McLean, VA, November 6, 2024: Gladstone Land Corporation (Nasdaq: LAND) ("Gladstone Land" or the "Company") today reported financial results for the third quarter ended September 30, 2024. A description of funds from operations ("FFO"), core FFO ("CFFO"), adjusted FFO ("AFFO"), and net asset v ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number: 001-35795 GLADSTONE LAND CORPORATION (Exact name of registrant as specified i ...