Gladstone Land Corporation Reports $85.2 Million Revenue for Fiscal Year 2024, Down 5.7%

Gladstone Land Corporation reported a total revenue of $85.2 million for the fiscal year ending December 31, 2024, a decrease of 5.7% from $90.4 million in 2023. The decline in revenue was primarily attributed to a drop in fixed lease payments, which fell by 11.6% to $74.0 million, while variable lease payments, including participation rents, increased significantly by 59.6% to $9.4 million. The company's operating income also decreased by 12.6%, from $33.5 million in 2023 to $29.3 million in 2024. This decline in profitability was influenced by a combination of reduced fixed lease revenues and an impairment charge of $2.1 million recognized during the year.

In terms of strategic developments, Gladstone Land completed several property sales, including a notable transaction in January 2024 involving a 3,748-acre farm in Florida sold for approximately $65.7 million, resulting in a net gain of $10.4 million. Additionally, the company sold 11 farms in Michigan for $5.0 million in December 2024, which included an impairment charge related to these properties. As of December 31, 2024, Gladstone Land owned 150 farms across 15 states, totaling 103,001 acres, with a 95.9% occupancy rate and a weighted-average remaining lease term of 5.2 years.

Operationally, the company reported leasing activity involving 87 different tenants growing over 60 types of crops. The weighted-average term to maturity of its notes and bonds payable was 7.6 years, with over 99.9% of borrowings at fixed rates, providing stability against interest rate fluctuations. The company’s total assets were valued at approximately $1.31 billion, with total liabilities of $625.0 million, resulting in stockholders' equity of $687.2 million as of December 31, 2024.

Looking ahead, Gladstone Land's management expressed optimism about future growth, emphasizing plans to continue acquiring farmland and farm-related properties. The company aims to leverage its existing liquidity, which stood at approximately $193.3 million, to fund potential acquisitions and capital improvements. However, management acknowledged the challenges posed by high interest rates and inflation, which could impact future profitability and cash flows. The company remains committed to maintaining its REIT status, which requires distributing at least 90% of its taxable income to shareholders, and is focused on enhancing its portfolio through strategic investments and operational efficiencies.