Gladstone Land(US:LAND)2020-05-06 20:04Financial Performance - Total operating revenues for Q1 2020 reached $15,280,000, a 95.1% increase from $7,830,000 in Q1 2019[164]. - Net income attributable to common stockholders for the three months ended March 31, 2020, was $934,000, compared to a loss of $496,000 in the same period of 2019[105]. - Basic and diluted earnings per common share for the three months ended March 31, 2020, were $0.04, compared to $(0.03) for the same period in 2019[105]. - Operating income for Q1 2020 was $7,197,000, reflecting a 123.2% increase from $3,225,000 in Q1 2019[166]. - Net income attributable to the Company for Q1 2020 was $3,059,000, a significant increase of 2,813.3% from $105,000 in Q1 2019[166]. - Funds from Operations (FFO) available to common stockholders increased to $5,336 for Q1 2020, up from $2,136 in Q1 2019, representing a year-over-year growth of 149%[203]. - Adjusted Funds from Operations (AFFO) available to common stockholders reached $5,442 in Q1 2020, compared to $2,462 in Q1 2019, marking a 121% increase[203]. - Diluted FFO per share for Q1 2020 was $0.25, compared to $0.12 for Q1 2019, indicating a 108% increase[203]. Lease and Rental Income - Lease revenues for the three months ended March 31, 2020, totaled $15,280,000, a 95% increase from $7,830,000 in the same period of 2019[103]. - Lease revenues from same-property basis increased by 39.6% to $10,806,000, up from $7,740,000 in the prior year[167]. - Lease revenue from California, Florida, and Arizona accounted for approximately $6.8 million (44.6%), $3.3 million (21.8%), and $3.3 million (21.8%), respectively, of total lease revenue for the three months ended March 31, 2020[48]. - Aggregate lease revenue attributable to a single tenant accounted for approximately $3.0 million, or 19.6%, of total lease revenue for the three months ended March 31, 2020[47]. - The company recognized an early lease termination payment of approximately $3.0 million during the three months ended March 31, 2020[168]. Debt and Financing - As of March 31, 2020, the company had total borrowings of $477,526,000, a slight decrease from $481,929,000 as of December 31, 2019[50]. - The weighted-average interest rate on borrowings was 3.98% for the three months ended March 31, 2020, compared to 3.93% for the same period in 2019[51]. - The New MetLife Facility includes a $75.0 million long-term note payable and $75.0 million in revolving lines of credit, with an undrawn commitment of $75.0 million as of March 31, 2020[53]. - The company incurred new long-term borrowings of $8.1 million at a fixed interest rate of 2.66% on January 10, 2020[133]. - The fair value of long-term borrowings is approximately $481.3 million, compared to a carrying value of approximately $480.6 million[213]. Equity and Stock Issuance - The company issued 1,229,531 shares of Series B Preferred Stock during the three months ended March 31, 2020, generating gross proceeds of approximately $30.1 million and net proceeds of approximately $27.7 million[97]. - The Series B Preferred Stock offering generated total gross proceeds of approximately $147.5 million, with net proceeds of about $133.5 million after expenses[137]. - The company filed a new prospectus supplement for a continuous offering of up to 26,000,000 shares of Series C Preferred Stock, which superseded the previous offering[98]. - The company had 6,477,647 shares of Series B Preferred Stock issued and outstanding, with an aggregate liquidation value of approximately $149.4 million[89]. - The company has an At-the-Market Program allowing for the issuance of common stock up to $30.0 million[141]. Tenant Performance and Lease Management - All tenants were current on rental payments, except for one tenant with an outstanding payment of approximately $56,000, which is expected to be collected[115]. - The company has not received any requests for rent relief due to COVID-19, indicating stable tenant performance[115]. - The company plans to seek favorable lease modification terms if any rent relief is granted in the future[115]. - The company expects rental payments to continue to be paid on time for the foreseeable future, with all tenants current on payments except for one tenant owing approximately $56,000[122]. - The company is currently negotiating lease renewals for an expiring lease in California, expecting to maintain or slightly increase the rental rate[127]. Portfolio and Asset Management - Gladstone Land Corporation owns 113 farms comprising 87,860 acres across 10 states in the U.S.[119]. - The company has diversified its portfolio to include 70 different tenants growing over 45 types of crops, expanding from 12 farms at IPO in January 2013[123]. - The company currently owns properties in 10 different states across the U.S. and plans to expand its geographic focus[163]. - The company aims to achieve net capitalization rates ranging from 5% to 7% or more on acquired farmland[158]. - The total fair value of the real estate portfolio as of March 31, 2020, was $891,555, with 71.1% derived from third-party appraisals[207]. Management Fees and Expenses - Total fees to the Adviser for the three months ended March 31, 2020, amounted to $2.368 million, compared to $336,000 for the same period in 2019[83]. - The base management fee under the 2020 Advisory Agreement is calculated at an annual rate of 0.50% of the prior calendar quarter's Gross Tangible Real Estate[71]. - The base management fee increased by 14.3% to $1,034,000 for the three months ended March 31, 2020, compared to $905,000 in the same period of 2019[178]. - The incentive fee is payable quarterly if the Pre-Incentive Fee FFO exceeds a hurdle rate of 1.75% of the prior calendar quarter's Total Adjusted Common Equity[72]. - Total operating expenses for Q1 2020 were $8,083,000, a 75.5% increase from $4,605,000 in Q1 2019[166].