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Gladstone Land(LAND) - 2024 Q4 - Annual Results
LANDGladstone Land(LAND)2025-02-19 21:08

Financial Performance - For the fiscal year 2024, net income was approximately 13.3million,adecreasefromapproximately13.3 million, a decrease from approximately 14.6 million in the prior year[8] - The net loss to common stockholders for the year was approximately 10.5million,or10.5 million, or 0.29 per share, compared to approximately 9.9million,or9.9 million, or 0.28 per share, in the prior year[8] - AFFO for the year was approximately 16.7million,or16.7 million, or 0.47 per share, down from approximately 20.3million,or20.3 million, or 0.57 per share, in the prior year[8] - Total operating revenues decreased by 13.7% to 21,096millioncomparedto21,096 million compared to 24,452 million in the previous year[14] - Net income fell by 70.4% to 539millionfrom539 million from 1,819 million year-over-year[14] - Funds from operations (FFO) available to common stockholders decreased by 36.1% to 3,955millionfrom3,955 million from 6,185 million[14] - Cash flows from operations dropped by 33.5% to 11,582millioncomparedto11,582 million compared to 17,424 million in the prior year[14] - Diluted AFFO per weighted-average common share decreased by 38.3% to 0.093from0.093 from 0.151[14] Asset and Valuation Changes - The estimated NAV per share decreased by 4.15to4.15 to 14.91 at December 31, 2024, primarily due to valuation decreases in certain farms[7] - Total assets decreased by 5.4% to 1,312,195millionfrom1,312,195 million from 1,387,324 million[17] - The net asset value (NAV) per common share decreased by 21.8% to 14.91from14.91 from 19.06[17] - The farmland portfolio value decreased by 10.3% to 1,405,350millionfrom1,405,350 million from 1,566,474 million[17] - The estimated NAV available to common stockholders and non-controlling OP Unitholders is 539.354million,withanestimatedNAVpershareof539.354 million, with an estimated NAV per share of 14.91[29] Revenue and Lease Agreements - Total cash lease revenues decreased, with fixed base cash rents down by approximately 4.9million,whileparticipationrentsincreasedbyapproximately4.9 million, while participation rents increased by approximately 1.5 million[5] - The company executed 31 amended or new lease agreements, resulting in an aggregate increase in annual net operating income of approximately 556,000,or14.4556,000, or 14.4%, for row crop farms[3] Sales and Acquisitions - The company sold 12 farms for gross proceeds of approximately 70.6 million, resulting in a total net gain of approximately 10.0million[3]−Loanrepaymentstotaledapproximately10.0 million[3] - Loan repayments totaled approximately 33.6 million, primarily for maturing loans[3] - The company plans to acquire more water assets, securing an additional 8,987 net acre-feet at a total cash cost of approximately 2.1million[3]−Thecompanyhasacommitmenttoacquiringpropertiesrelatedtofarming,includingprocessinganddistributionfacilities[20]OperationalMetrics−Theoccupancyratedeclinedto96.22.1 million[3] - The company has a commitment to acquiring properties related to farming, including processing and distribution facilities[20] Operational Metrics - The occupancy rate declined to 96.2% from 99.5% year-over-year[17] - The company owns over 55,000 acre-feet of water assets in California, which are integral to its farming operations[20] - Over 30% of the company's fresh produce acreage is either organic or in transition to become organic, and nearly 20% of its permanent crop acreage falls into this category[20] Dividends and Distributions - The current monthly distribution per share on common stock is 0.0467, equating to an annual distribution of 0.5604,with144consecutivemonthlycashdistributionssinceJanuary2013[20]−Thecompanyhaspaiddividendsonitscumulativeredeemablepreferredstockandrecognizednetgainsorlossesfromredemptions[22]FutureOutlook−Forward−lookingstatementsindicateexpectationsforincreasesinfarmlandvaluesandoperatingrevenues,butthesearesubjecttorisksanduncertainties[31]−ThecompanywillnolongervoluntarilypublishNAVpercommonshareafterDecember31,2024,duetoareviewofcostsandbenefits[30]InterestandFinancing−Thecompanyrecordedapproximately0.5604, with 144 consecutive monthly cash distributions since January 2013[20] - The company has paid dividends on its cumulative redeemable preferred stock and recognized net gains or losses from redemptions[22] Future Outlook - Forward-looking statements indicate expectations for increases in farmland values and operating revenues, but these are subject to risks and uncertainties[31] - The company will no longer voluntarily publish NAV per common share after December 31, 2024, due to a review of costs and benefits[30] Interest and Financing - The company recorded approximately 1.9 million of interest patronage, resulting in a 22.0% reduction to the interest rate of borrowings[3] - Total indebtedness reduced by 7.4% to 590,284millionfrom590,284 million from 637,414 million[17]