Gladstone Land(US:LAND)2019-08-07 20:27Lease Revenue and Properties - Total annualized straight-line rent from existing properties as of June 30, 2019, was $3,385,000, with a weighted average lease term of 3.9 years for new leases[48]. - Lease revenue from California accounted for approximately $7,906,000 (48.8%) and from Florida accounted for $4,689,000 (29.0%) of total lease revenue for the six months ended June 30, 2019[54]. - The company’s farms are leased to 64 different tenants, with no other tenant representing more than 10% of total lease revenue[53]. - The company has committed to provide capital improvements on certain farms, with total commitments amounting to $4,000,000 for the Santa Barbara, CA location, expected to be completed by Q1 2020[86]. - For the six months ended June 30, 2019, total lease revenue was $16,192,000, with California contributing 48.8% and Florida 29.0%[121]. - The company acquired two farms post-June 30, 2019, with a total purchase price of $66.79 million, which includes $9 million for the San Juan Grade Road property and $57.79 million for the West Citrus Boulevard property[107]. - The total annualized straight-line rent from the acquired properties is approximately $4.27 million, with $575,000 from the San Juan Grade Road property and $3.69 million from the West Citrus Boulevard property[107]. - The company acquired six farms since April 1, 2019, with a total purchase price of $112,312,000 and an annualized straight-line rent of $7,212,000[125]. - Lease expirations for 2020 include 13 leases covering 33,031 acres, representing 43.5% of total acreage, with expected lease revenues of $3,663,000[123]. - The company anticipates renewing leases at current market rental rates without incurring downtime on farms[124]. - The leasing activity since April 1, 2019, includes 5 new leases covering 2,989 acres with total annualized straight-line rent of $1,384,000[126]. - The company has diversified its portfolio to include various crop types, including almonds, blueberries, and pistachios[119]. Financial Performance - Net loss attributable to common stockholders for Q2 2019 was $720,000, compared to a loss of $1,745,000 in Q2 2018, representing a 58.8% improvement[106]. - Basic and diluted loss per common share for Q2 2019 was $(0.04), compared to $(0.11) in Q2 2018, indicating a 63.6% reduction in loss per share[106]. - Total operating revenues for Q2 2019 were $8,362, a decrease of 26.6% from $11,394 in Q2 2018[141]. - Operating income for Q2 2019 was $4,121, representing a 66.7% increase from $2,472 in Q2 2018[141]. - Net income attributable to the Company for Q2 2019 was $173, a significant recovery from a loss of $1,742 in Q2 2018[141]. - Total operating revenues for the six months ended June 30, 2019, were $16,192, down 21.5% from $20,639 in the same period of 2018[143]. - Net income for the six months ended June 30, 2019, was $279, a recovery from a loss of $2,039 in the same period of 2018[143]. - Funds from operations (FFO) available to common stockholders and OP Unitholders for the six months ended June 30, 2019, was $4,340,000, up from $2,257,000 in 2018, representing an increase of 92.3%[171]. - Diluted FFO per weighted-average total common share increased to $0.23 for the six months ended June 30, 2019, compared to $0.14 in 2018, reflecting a growth of 64.3%[171]. - AFFO available to common stockholders and OP Unitholders for the six months ended June 30, 2019, was $4,797,000, compared to $3,679,000 in 2018, marking a 30.5% increase[171]. Debt and Financing - As of June 30, 2019, total borrowings amounted to $350,244,000, with a weighted-average interest rate of 3.93%[55]. - The MetLife Facility includes $200 million in term notes and $75 million in revolving equity lines of credit as of June 30, 2019[56]. - The company has a loan agreement with Prudential for $17.130 million, maturing on July 1, 2029, with a fixed interest rate of 4.00%[61]. - The MetLife Lines of Credit have a total principal outstanding of $100 million, with an interest rate of 3-month LIBOR + 2.00%–2.25%[57]. - The company has approximately $122.0 million outstanding under term notes with a fixed interest rate of 3.30% per annum, and $100,000 outstanding under lines of credit at a weighted-average rate of 4.72%[160]. - The company has approximately $151.6 million outstanding under Farm Credit Notes Payable, with a weighted-average effective interest rate of 3.89%[163]. - The company raised approximately $42.7 million from the issuance of Series B Preferred Stock and $26.7 million from a secondary offering of common stock since January 1, 2019[164]. Shareholder Equity and Stock Issuance - The company issued 1,150,000 shares of Series A Term Preferred Stock for gross proceeds of approximately $28.8 million in August 2016[65]. - The company sold 1,499,075 shares of Series B Preferred Stock for gross proceeds of approximately $37.0 million[97]. - The company completed a public offering of 2,000,000 shares of common stock at a public offering price of $11.73 per share, resulting in gross proceeds of approximately $23.5 million[100]. - The company issued and sold 70,551 shares of common stock under the ATM Program for gross proceeds of approximately $893,000 during the six months ended June 30, 2019[101]. - The company sold 980,453 shares of Series B Preferred Stock for gross proceeds of approximately $24.2 million and net proceeds of approximately $22.1 million from April 1, 2019, through the date of the filing[129]. - A public offering of common stock in June 2019 resulted in the issuance of 2,277,297 new shares for gross proceeds of approximately $26.7 million and net proceeds of approximately $25.4 million[130]. - Under the At-the-Market Program, the company issued and sold a total of 1,666,142 shares of common stock for gross proceeds of approximately $21.4 million and net proceeds of approximately $21.1 million[132]. Asset Valuation and NAV - The total fair value of the real estate portfolio as of June 30, 2019, was $667,506,000, with 79.9% derived from third-party appraisals[174]. - The weighted average market capitalization rate for the portfolio was 4.28%[176]. - The range of land values per farmable acre was between $680 and $87,500, with a weighted average of $33,020[176]. - The market net operating income (NOI) per farmable acre ranged from $250 to $4,600, with a weighted average of $3,043[176]. - Estimated NAV per common share decreased from $12.30 as of March 31, 2019, to $11.61 as of June 30, 2019, representing a decline of approximately 5.6%[180]. - The closing price of common stock on June 30, 2019, was $11.53, slightly below the estimated NAV per common share of $11.61[180]. - Management plans to provide estimated NAV on a quarterly basis to reflect fair value adjustments of real estate assets and long-term borrowings[178].