Gladstone Land(LAND) - 2024 Q2 - Quarterly Results

Financial Performance - Net loss for Q2 2024 was approximately $823,000, a significant decline from net income of approximately $7.9 million in Q2 2023[3] - AFFO for the quarter was approximately $3.7 million, or $0.103 per share, compared to approximately $3.6 million, or $0.102 per share, in the prior-year quarter, reflecting a 1.5% increase[3][8] - Cash flows from operations decreased by approximately $2.0 million from the prior-year quarter, largely due to timing of cash rental receipts[6] Revenue and Income - Total cash lease revenues remained relatively flat, with fixed base cash rents decreasing by approximately $1.1 million, offset by an increase in participation rents of approximately $1.1 million[4] - The company executed three amended lease agreements expected to increase annual net operating income by approximately $70,000[2] - The distribution run rate on common stock was increased by 0.22%, with monthly cash distributions totaling $0.1398 per share during Q2 2024[2] - The company increased its distribution run rate by 0.21%, marking the 35th distribution increase over the past 38 quarters, with a total increase of 55.7%[7] Asset Valuation - The estimated NAV per share decreased by $1.56 to $17.59 at June 30, 2024, primarily due to valuation decreases in certain farms[6][8] - The estimated NAV available to common stockholders and non-controlling OP unitholders is $630.465 million, with an estimated NAV per share of $17.59[19] - The fair value adjustment for long-term assets is $213.801 million, while the fair value adjustment for long-term indebtedness is $50.778 million[18][19] Company Operations - Gladstone Land Corporation owns 168 farms across approximately 112,000 acres in 15 states, with total assets valued at approximately $1.5 billion[11] - The company owns approximately $1.5 billion of farmland and water assets, with ongoing discussions to lease or sell six properties[7] - Gladstone Land's farms primarily grow annual row crops and permanent crops, with a focus on fresh produce such as berries and vegetables[11] - Approximately 30% of the company's fresh produce acreage is organic or in transition to organic, while over 20% of its permanent crop acreage falls into this category[11] Shareholder Returns - The company has paid 138 consecutive monthly cash distributions since its IPO in January 2013, with a current monthly distribution of $0.0467 per share, equating to $0.5604 annually[11] - The company repurchased 140,777 shares of its Series B and C Preferred Stock at an average price of $20.56 per share, resulting in a total gain on repurchase of approximately $274,000[2] Future Outlook - The company anticipates benefits from increases in farmland values and operating revenues, as well as expected increases in capitalization rates[20] - The company is committed to maintaining or growing its portfolio and FFO, despite potential risks and uncertainties in the economic environment[20] Performance Metrics - The company’s FFO, CFFO, and AFFO metrics are adjusted for non-cash items and non-recurring expenses, providing a clearer picture of sustainable operating performance[13][14][15] - Gladstone Land has increased its common distributions 35 times over the past 38 quarters[11]