Gladstone Land Corporation Reports 42.3% Revenue Decline and Increased Net Loss in Q2 2025

Gladstone Land Corporation reported a significant decline in financial performance for the second quarter of 2025, with total operating revenues of $12.3 million, down 42.3% from $21.3 million in the same period last year. The decrease was primarily driven by a 39.6% drop in lease revenue, which fell to $12.3 million from $20.1 million. The company also recorded a net loss attributable to common stockholders of $13.9 million, compared to a loss of $6.7 million in the prior year, resulting in a basic and diluted loss per share of $0.38, compared to a loss of $0.19 per share in the same quarter of 2024.

In the first half of 2025, Gladstone Land's total operating revenues were $29.1 million, a decrease of 30% from $41.5 million in the first half of 2024. The company attributed the decline in revenues to the execution of lease agreements that reduced or eliminated fixed base rent amounts in exchange for increased participation rents, which are expected to be realized later in the year. Additionally, the company disposed of 19 farms since the end of 2023, further impacting revenue generation.

Operationally, Gladstone Land owned 150 farms totaling 103,001 acres across 15 states as of June 30, 2025. The company reported a decrease in same-property occupancy to 95.9%, down from 99.3% a year earlier. The number of farms that were either vacant, direct-operated, or on non-accrual status increased to 17 from 9 in the prior year. The company continues to explore leasing and sale options for these properties, although it cannot guarantee favorable terms.

On the balance sheet, total assets decreased to $1.26 billion from $1.31 billion at the end of 2024, primarily due to a reduction in real estate held for sale and accumulated depreciation. Total liabilities also fell to $588.5 million from $625 million, reflecting a decrease in notes and bonds payable. The company maintained a strong liquidity position with approximately $30.5 million in cash and cash equivalents and $146.3 million available under its credit facility with MetLife.

Looking ahead, Gladstone Land remains focused on its strategy of acquiring additional farmland and farm-related assets, although it acknowledges the challenges posed by current market conditions, including rising interest rates and ongoing trade tensions. The company plans to leverage its existing liquidity and explore new financing opportunities to support its growth objectives while managing its operational costs effectively.