Gladstone Land reports California farms unscathed by wildfires

MCLEAN, VA - Gladstone Land Corporation (NASDAQ:LAND), a real estate investment trust specializing in farmland, announced today that its agricultural properties in California have not been affected by the recent southern wildfires. The company assured stakeholders that all farms growing permanent crops in the state are adequately insured against crop damage and potential income loss due to such disasters.

Bill Reiman, Executive Vice President, expressed sympathy for those impacted by the fires, emphasizing the company's preparedness to protect its assets and support the surrounding communities. The company's President and CEO, David Gladstone, pointed out that their farms are predominantly situated in safer agricultural plains, which are less prone to wildfire threats typically found in hillier brush regions.

Gladstone Land, established in 1997, owns 157 farms across 15 states, encompassing around 111,000 acres, including significant water assets in California. With an estimated value of $1.4 billion, the company leases its properties to third-party farmers. These lands support a variety of crops, with a focus on fresh produce and permanent crops like nuts, fruits, and vineyards. A notable portion of the company's portfolio consists of organic or transitioning-to-organic farmland. According to InvestingPro data, the company maintains a solid gross profit margin of 85% and trades at just 0.56 times book value, suggesting potential undervaluation relative to its assets.

The trust maintains a track record of monthly distributions to its stockholders, with a current monthly common stock distribution rate of $0.0467 per share. In maintaining transparency, Gladstone Land reports the aggregate fair value of its farmland holdings quarterly.

This announcement comes as part of Gladstone Land's ongoing communication with investors and the broader market. The company has consistently paid monthly cash distributions since its initial public offering in January 2013. The information provided is based on a press release statement from Gladstone Land Corporation.

In other recent news, Gladstone Land Corporation has experienced significant changes in its executive ranks and mixed financial results. Board member Paul W. Adelgren is set to resign mid-December, and the company has yet to announce plans for his replacement. Furthermore, the company's Chief Operating Officer, Terry Lee Brubaker, is also set to retire in December, with General Counsel and Secretary, Michael LiCalsi, taking on additional operational duties as a result.

The company reported a decrease in net income to $6,000 and a net loss to common shareholders of $5.8 million in its third-quarter earnings. Despite these figures, Gladstone Land executed 21 new or amended leases, which are expected to boost net operating income by $309,000. However, a $20 million reduction in fixed base rents is anticipated as the company shifts to participation rents.

In addition to these changes, Gladstone Land plans to sell 11 blueberry farms in Michigan for approximately $5 million. Despite a decrease in Adjusted Funds From Operations (AFFO) to $4.5 million from $5.4 million in the prior quarter, the company maintains over $160 million in liquidity. These are the recent developments for Gladstone Land, as it continues to navigate the complexities of the agricultural market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.