Gladstone Land Corporation (NASDAQ:LAND) Q4 2022 Earnings Conference Call February 22, 2023 8:30 AM ET Company Participants David Gladstone - President and CEO Michael LiCalsi - President, Gladstone Administration, General Counsel and Secretary Lewis Parrish - Chief Financial Officer Conference Call Participants Gaurav Mehta - EF Hutton Rob Stevenson - Janney Montgomery Scott John Massocca - Ladenburg Thalmann Craig Kucera - B Riley Securities Operator Greetings. And welcome to the Gladstone Land Corporatio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 in its cha ...

Financial Data and Key Metrics Changes - For Q3 2022, the company reported a net income of approximately $1.8 million and a net loss to common shareholders of $3.6 million, equating to $0.074 per common share [20] - Adjusted FFO for Q3 was about $7.2 million, up from $4.5 million in Q2, with AFFO per share increasing to $20.07 from $12.9 [20] - Dividends declared per share rose to $0.137 in Q3 from $0.136 in Q2, driven by an increase in participation rents [21] Business Line Data and Key Metrics Changes - The company acquired four venues in Washington State and Oregon for about $37 million, yielding a net cash yield of approximately 6.2% [9] - Six leases were renewed, expected to increase annual operating income by about $281,000, or 10% over prior leases [10] - Participation rents recorded in Q3 were about $3 million, a significant increase from only $20,000 in the previous quarter [21] Market Data and Key Metrics Changes - Inflation remains high, with the latest headline inflation at 8.2%, while food prices at home increased by 13% [11] - The value of the farmland portfolio increased by about $17 million, or 3.7%, with Florida farms appreciating by an average of 11% [22] - The portfolio was valued at approximately $1.6 billion as of September 30, with a net asset value per common share of $16.56, up by $0.96 from the previous quarter [23] Company Strategy and Development Direction - The company is being more selective in acquisitions due to rising inflation and interest rates, focusing on conservative capital management [9] - Plans to enhance water security include purchasing water on the open market and acquiring long-term water contracts [13] - The company aims to continue investing in farmland that supports healthy lifestyles, aligning with market trends towards fruits and vegetables [27] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of inflation and rising costs on farmers, particularly regarding water and fertilizer [38] - The company anticipates that food prices will continue to rise, potentially outpacing general inflation, which may benefit farm operators [12] - Management is cautious about new acquisitions, preferring to wait for more favorable market conditions [39] Other Important Information - The company has over $175 million in liquidity and $100 million in unpledged properties, with 99% of borrowings at fixed rates [24][25] - The company has experienced minimal impact from recent interest rate increases, with upcoming debt maturities manageable [26] Q&A Session Summary Question: What percentage of the farms had a value change quarter-over-quarter? - About 1/3 of the portfolio was revalued in Q3, with Q4 expected to be lighter at 18% to 20% [32] Question: What was the impact on the NAV calculation from the debt adjustment? - The debt adjustment impacted NAV by $0.55 per share [33] Question: What is the current cost for new debt? - The current cost for new debt is in the mid-5s, around 5.5% to 5.6% [34] Question: Any commonality on the $1.3 million of late rent payments? - The late rent payments are primarily associated with almond crops in California [42] Question: Can you comment on the water situation for farms with raw crops? - The main concern is with tree crops, particularly almonds, which require significant water [46] Question: What is the breakdown of participation rents? - Pistachios account for about 2/3 of participation rents, with almonds making up 20% to 25% [51] Question: What are the current cap rates for acquisitions? - Cap rates are mixed, with nut farms seeing lower valuations compared to produce farms [58]

Gladstone Land Corporation (NASDAQ:LAND) Q2 2022 Earnings Conference Call August 10, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer & President Michael LiCalsi - General Counsel & Secretary Lewis Parrish - Chief Financial Officer Conference Call Participants Rob Stevenson - Janney Edward Riley - EF Hutton John Massocca - Ladenburg Thalmann Operator Greetings, and welcome to the Gladstone Land Second Quarter Earnings and Webcast Conference Call. At this time, all participants ...

[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, 2022, total assets increased to $1.41 billion, operating revenues grew 22.2% to $40.2 million, and net income reached $1.8 million, significantly improving from the prior year [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets increased to $1.41 billion, primarily due to a $32.8 million rise in real estate assets, while total equity grew by $62.9 million to $651.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total real estate, net** | $1,300,940 | $1,283,798 | | **Cash and cash equivalents** | $48,444 | $16,708 | | **Total Assets** | **$1,410,321** | **$1,351,550** | | **Notes and bonds payable, net** | $661,846 | $667,882 | | **Total Liabilities** | **$758,389** | **$762,484** | | **Total Equity** | **$651,932** | **$589,066** | | **Total Liabilities and Equity** | **$1,410,321** | **$1,351,550** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q2 2022, lease revenue grew 20.1% to $20.3 million, resulting in net income of $0.6 million, while for the six-month period, lease revenue increased 22.2% to $40.2 million, with net income reaching $1.8 million Statement of Operations Highlights (in thousands) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Lease revenue, net** | $20,293 | $16,893 | $40,236 | $32,927 | | **Total operating expenses** | $12,160 | $9,495 | $25,525 | $19,402 | | **Net Income (Loss) Attributable to the Company** | $616 | $(530) | $1,794 | $23 | | **Net Loss Attributable to Common Stockholders** | $(3,873) | $(3,469) | $(6,610) | $(5,679) | | **Loss Per Common Share (Basic and diluted)** | $(0.11) | $(0.12) | $(0.19) | $(0.20) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased from $589.1 million to $651.9 million, primarily driven by net proceeds from Series C Preferred Stock and common stock issuances, alongside comprehensive income - Key drivers for the increase in total equity during the first six months of 2022 include net proceeds from the issuance of **Series C Preferred Stock ($69.0 million)** and **common stock ($10.3 million)**[25](index=25&type=chunk) - Net income for the six months ended June 30, 2022 was **$1.8 million**, while dividends on preferred stock and distributions on common stock totaled **$8.4 million** and **$9.4 million**, respectively[25](index=25&type=chunk) - Accumulated other comprehensive income improved significantly from a loss of **$(1.0) million** to a gain of **$6.3 million**, primarily due to a **$7.3 million** change in fair value of interest rate hedging instruments[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash from operating activities was $19.4 million, investing activities used $35.1 million, and financing activities provided $47.5 million, resulting in a net cash increase of $31.7 million Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $19,355 | $16,965 | | **Net cash used in investing activities** | $(35,147) | $(84,950) | | **Net cash provided by financing activities** | $47,528 | $125,556 | | **Net increase in cash and cash equivalents** | $31,736 | $57,571 | | **Cash and cash equivalents at end of period** | $48,444 | $66,789 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's portfolio of 165 farms, $662 million in borrowings including a new MetLife facility, and significant capital raises from Series C Preferred Stock and ATM program, with subsequent acquisitions and loan repayments [NOTE 3. REAL ESTATE AND INTANGIBLE ASSETS](index=13&type=section&id=NOTE%203.%20REAL%20ESTATE%20AND%20INTANGIBLE%20ASSETS) As of June 30, 2022, the company owned 165 farms totaling 113,931 acres with a net cost basis of $1.34 billion, primarily concentrated in California and Florida, and acquired two properties for $24.6 million in H1 2022 - As of June 30, 2022, the company owned **165 farms** with a total net cost basis of approximately **$1.34 billion**[45](index=45&type=chunk) - Farms in California and Florida accounted for **66.5%** and **17.9%** of total lease revenue, respectively, for the six months ended June 30, 2022[63](index=63&type=chunk) - During the first six months of 2022, the company acquired two properties in Florida and California for a total purchase price of **$24.6 million**[53](index=53&type=chunk) [NOTE 4. BORROWINGS](index=17&type=section&id=NOTE%204.%20BORROWINGS) As of June 30, 2022, total borrowings were $661.9 million with a 3.73% weighted-average interest rate, including a new $100 million MetLife term note and $2.8 million in interest patronage from Farm Credit borrowings Borrowings Summary (in thousands) | Borrowing Type | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Fixed-rate notes payable | $583,114 | $582,665 | | Fixed-rate bonds payable | $81,342 | $86,052 | | **Total notes and bonds payable, net** | **$661,846** | **$667,882** | - In February 2022, the company amended its credit facility with MetLife, adding a new **$100.0 million** long-term note payable, bringing the total facility size to **$250.0 million**[67](index=67&type=chunk) - During Q1 2022, the company recorded interest patronage of approximately **$2.8 million** from its Farm Credit borrowings, which related to interest accrued in 2021[73](index=73&type=chunk) [NOTE 6. RELATED-PARTY TRANSACTIONS](index=21&type=section&id=NOTE%206.%20RELATED-PARTY%20TRANSACTIONS) For the six months ended June 30, 2022, fees to the Adviser totaled $5.2 million, administration fees were $0.9 million, and Gladstone Securities received $6.2 million in commissions and fees Related-Party Fees for Six Months Ended June 30 (in thousands) | Fee Type | 2022 | 2021 | | :--- | :--- | :--- | | **Total fees to our Adviser, net** | $5,210 | $3,908 | | **Administration fee** | $926 | $703 | | **Total fees to Gladstone Securities** | $6,163 | $2,004 | - The advisory agreement was amended effective July 1, 2021, increasing the base management fee from an annual rate of **0.50%** to **0.60%** of the prior quarter's Gross Tangible Real Estate[86](index=86&type=chunk)[87](index=87&type=chunk) [NOTE 8. EQUITY](index=24&type=section&id=NOTE%208.%20EQUITY) The company raised $68.9 million in net proceeds from Series C Preferred Stock and $10.3 million from common stock via its ATM program, while also redeeming $7.7 million in OP Units and declaring regular distributions Equity Issuances for Six Months Ended June 30, 2022 (in thousands) | Issuance | Shares Sold | Net Proceeds | | :--- | :--- | :--- | | **Series C Preferred Stock** | 3,028,475 | $68,898 | | **Common Stock (ATM Program)** | 310,055 | $10,327 | - During the six months ended June 30, 2022, the company redeemed all **204,778** outstanding OP Units with a cash payment of approximately **$7.7 million**[108](index=108&type=chunk) [NOTE 11. SUBSEQUENT EVENTS](index=27&type=section&id=NOTE%2011.%20SUBSEQUENT%20EVENTS) Subsequent to June 30, 2022, the company acquired four new farms for $37.4 million, repaid $16.9 million in loans, and continued equity raising with $35.9 million in Series C Preferred Stock net proceeds - Acquired four new farms for a total purchase price of **$37.4 million**[114](index=114&type=chunk)[115](index=115&type=chunk) - Repaid approximately **$16.9 million** of maturing loans that had a weighted-average effective interest rate of **2.89%**[116](index=116&type=chunk) - Sold approximately **1.6 million** shares of Series C Preferred Stock for net proceeds of **$35.9 million**[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports owning 169 farms, with H1 2022 operating revenue up 22.2% to $40.2 million and operating income up 8.8% to $14.7 million, maintaining strong liquidity of $133.3 million and a NAV per common share of $15.60 [Overview](index=29&type=section&id=Overview) The company is an externally-managed agricultural REIT owning 169 diversified farms across 15 states, primarily with triple-net leases, and anticipates renewing the single agricultural lease expiring in the next six months - As of the filing date, the company owns **169 farms** comprised of **115,288 acres** in **15 states**, leased to **90 different tenants**[125](index=125&type=chunk)[126](index=126&type=chunk) - Geographic diversification is led by California (**66.5%** of lease revenue) and Florida (**17.9%** of lease revenue) for the six months ended June 30, 2022[128](index=128&type=chunk) - Only one agricultural lease is scheduled to expire within the next six months, and the company anticipates renewing it at a rate flat to the existing lease[132](index=132&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2022, total operating revenues increased 22.2% to $40.2 million, driven by acquisitions, while total operating expenses rose 31.6% to $25.5 million, resulting in an 8.8% increase in operating income to $14.7 million Operating Results for the Six Months Ended June 30 (in thousands) | Metric | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $40,236 | $32,927 | $7,309 | 22.2% | | **Total operating expenses** | $25,525 | $19,402 | $6,123 | 31.6% | | **Operating income** | $14,711 | $13,525 | $1,186 | 8.8% | - The increase in lease revenue was primarily driven by properties acquired after December 31, 2020, which contributed an additional **$7.4 million** in revenue for H1 2022 compared to H1 2021[157](index=157&type=chunk)[159](index=159&type=chunk) - Related-party fees to the Adviser increased due to additional assets acquired and an increase in the base management fee rate from **0.50%** to **0.60%** effective July 1, 2021[169](index=169&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $133.3 million in available liquidity, with over 99% of borrowings at fixed rates, and primarily sources capital from operations, debt facilities, and equity issuances through its ATM program and Series C Preferred Stock offering - Current available liquidity is approximately **$133.3 million**, consisting of **$21.0 million** in cash and **$112.3 million** of availability under the MetLife credit facility[175](index=175&type=chunk) - Over **99%** of the company's borrowings are at fixed rates, with a weighted-average effective interest rate of **3.26%** for a term of over five years, providing protection against interest rate increases[175](index=175&type=chunk) - Since January 1, 2022, the company has raised approximately **$104.8 million** in net proceeds from its Series C Preferred Stock offering and **$10.3 million** from its common stock ATM program[189](index=189&type=chunk)[190](index=190&type=chunk) [Non-GAAP Financial Information](index=43&type=section&id=Non-GAAP%20Financial%20Information) The company uses FFO, CFFO, and AFFO to measure performance, with Diluted AFFO per share at $0.13 for Q2 2022 and $0.31 for the six-month period, and an estimated NAV per common share of $15.60 as of June 30, 2022 Non-GAAP Metrics Per Share | Metric per Share | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Diluted FFO** | $0.14 | $0.13 | $0.33 | $0.30 | | **Diluted CFFO** | $0.14 | $0.13 | $0.33 | $0.31 | | **Diluted AFFO** | $0.13 | $0.13 | $0.31 | $0.30 | Estimated NAV per Common Share Roll-Forward | Description | Per Share Amount | | :--- | :--- | | **NAV as of March 31, 2022** | **$15.54** | | Net loss attributable to common stockholders | $(0.11) | | Net change in unrealized fair value of portfolio | $0.53 | | Distributions on common stock | $(0.14) | | Net dilutive effect of equity issuances | $(0.22) | | **NAV as of June 30, 2022** | **$15.60** | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - This item is not applicable to smaller reporting companies[212](index=212&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2022[213](index=213&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[214](index=214&type=chunk) [PART II - OTHER INFORMATION](index=51&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=51&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings, nor are any known to be threatened[216](index=216&type=chunk) [Risk Factors](index=51&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, 2021 - There have been no material changes to risks associated with the business from those previously set forth in the Annual Report on Form 10-K for the year ended December 31, 2021[217](index=217&type=chunk) [Other Items (Items 2-6)](index=51&type=section&id=Other%20Items) Items 2-5 are reported as 'None' or 'Not applicable', while Item 6 provides a list of exhibits filed with the report - Items 2, 3, 4, and 5 are reported as 'None' or 'Not applicable'[218](index=218&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including certifications and XBRL data[220](index=220&type=chunk)

Gladstone Land Corporation (NASDAQ:LAND) Q1 2022 Earnings Conference Call May 11, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer & President Michael LiCals - General Counsel & Secretary & President, Gladstone Administration Lewis Parrish - Chief Financial Officer Conference Call Participants John Massocca - Ladenburg Thalmann Edward Riley - EF Hutton Craig Kucera - B. Riley Securities Barry Oxford - Colliers Operator Greetings and welcome to Gladstone Land Corporation First Q ...

Gladstone Land Corporation (NASDAQ:LAND) Q4 2021 Earnings Conference Call February 23, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer & President Michael LiCals - General Counsel & Secretary & President, Gladstone Administration Lewis Parrish - Chief Financial Officer Conference Call Participants Edward Riley - EF Hutton Craig Kucera - B. Riley Securities James Villard - Ladenburg Thalmann Operator Greetings and welcome to Gladstone Land Fourth Quarter and Year End Earnings ...