Gladstone Land(US:LAND)2020-11-04 21:09Financial Performance - Total operating revenues increased by 54.1% to $41,907,000 for the nine months ended September 30, 2020, compared to $27,203,000 for the same period in 2019[152]. - Net income attributable to the Company surged by 505.3% to $4,812,000 for the nine months ended September 30, 2020, from $795,000 in the prior year[152]. - Operating income increased by 60.5% to $20,512,000 for the nine months ended September 30, 2020, compared to $12,782,000 in 2019[152]. - For the three months ended September 30, 2020, total operating revenues increased by 27.0% to $13,989 million from $11,012 million in the same period of 2019[150]. - Net income for the three months ended September 30, 2020, was $1,581,000, compared to $523,000 for the same period in 2019, representing a significant increase[188]. Lease and Rental Income - Total annualized straight-line rent for existing leases as of September 30, 2020, was $41.9 million, an increase from $27.2 million in the same period of 2019, representing a 54% growth[50]. - The company reported lease revenues of $13,989,000 for the three months ended September 30, 2020, compared to $11,012,000 for the same period in 2019, representing a year-over-year increase of approximately 26.9%[105]. - Fixed lease payments rose by 42.7% to $37,450,000 for the nine months ended September 30, 2020, from $26,236,000 in the prior year[152]. - The company granted rent extensions totaling approximately $343,000 to two tenants due to COVID-19, which were fully collected post-September 30, 2020[115]. - The company anticipates rental payments to continue being paid on time for the foreseeable future, despite potential future rent relief requests[121]. Borrowings and Debt Management - As of September 30, 2020, the company had total borrowings of $503.5 million, up from $481.9 million as of December 31, 2019, reflecting a 4.4% increase[54]. - The weighted-average interest rate on borrowings was 4.03% for the nine months ended September 30, 2020, compared to 3.99% for the same period in 2019[55]. - The company has adequate liquidity to cover near-term debt obligations and operating expenses[121]. - The company issued a New MetLife Term Note with an aggregate commitment of $75 million, maturing on January 5, 2030, with an undrawn commitment of $75 million as of the reporting date[57]. - Scheduled principal payments for the aggregate notes and bonds payable total $495.1 million as of September 30, 2020, with $15.4 million due in the remaining three months of 2020[63]. Equity and Stock Performance - The estimated net asset value (NAV) per common share as of September 30, 2020, is $11.97, up from $11.06 as of June 30, 2020, reflecting an increase of approximately 8.2%[196]. - The closing price of common stock on September 30, 2020, was $15.02 per share, indicating a premium over the estimated NAV per common share[199]. - The company issued approximately $30.148 million in Series B Preferred Stock and $15.525 million in Series C Preferred Stock since January 1, 2020[180]. - The Series B Preferred Stock began trading on Nasdaq under the ticker symbol "LANDO" on October 19, 2020[112]. - The company filed a universal registration statement allowing for the issuance of up to $1.0 billion in securities, with total gross proceeds of approximately $9.2 million from common stock issued under this statement by September 30, 2020[94]. Operational Highlights - The company expanded its portfolio from 12 farms leased to 7 tenants at IPO to 127 farms leased to 75 tenants, growing over 50 different types of crops[122]. - The company currently owns 127 farms comprising 93,999 acres across 13 states in the U.S.[119]. - The company acquired 12 farms since July 1, 2020, with a total purchase price of $74.772 million and annualized straight-line rent of $3.970 million[129]. - The company has several properties under signed purchase agreements and is actively seeking additional acquisitions despite the COVID-19 pandemic[171]. - The company plans to complete capital improvements on various farms, with obligations extending through Q3 2024 and Q2 2025 for several locations[86]. Fees and Expenses - Total fees to the Adviser for the three months ended September 30, 2020, amounted to $1.899 million, compared to $862,000 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[72]. - Total operating expenses, net of credits, increased by 23.0% to $6.858 million from $5.575 million in the same period of 2019[150]. - Interest expense for the three months ended September 30, 2020, was $5.202 million, an increase of 18.2% from $4.401 million in the same period of 2019[150]. - General and administrative expenses decreased for the three months ended September 30, 2020, primarily due to lower professional fees[167]. Market and Economic Conditions - The ongoing COVID-19 pandemic is expected to impact the company's operations and financial condition, with potential effects on rental rates and farmland values[120]. - The geographic diversity of the portfolio mitigates exposure to economic issues in any single market[124]. - The farmland portfolio's value is expected to remain stable, with no anticipated credit freeze in agricultural lending[121]. - The company has not received additional requests for rent relief from tenants due to COVID-19, and expects rental payments to continue being made on time[173]. - The company expects rental rates on upcoming lease renewals to remain relatively flat compared to existing leases[128].